Document:

Exhibit 10.7

 

AMENDED AND RESTATED THIRD AMENDMENT TO

 

AIRLINE OPERATING AGREEMENT AND TERMINAL BUILDING LEASE

 

MINNEAPOLIS-ST. PAUL
INTERNATIONAL AIRPORT

 

This
Amended and Restated Third Amendment to Airline Operating Agreement and
Terminal Building Lease (the “Amended and Restated Third Amendment”) is entered
into as of the 28th day of December 2007, by and between the Metropolitan
Airports Commission, a public corporation under the laws of the State of
Minnesota (hereinafter sometimes referred to as “MAC” or “Commission”), and
Northwest Airlines, Inc., a corporation organized and existing under the
laws of Minnesota and authorized to do business in the State of Minnesota
(hereinafter referred to as “AIRLINE”).

 

WHEREAS,
MAC and AIRLINE entered into an Airline Operating Agreement and Terminal
Building Lease effective January 1, 1999 and amended such agreement as
shown on Exhibit 1 (collectively, “Lease”).

 

WHEREAS,
MAC and AIRLINE entered into the Third Amendment to Airline Operating Agreement
and Terminal Building Lease dated May 9, 2007 and it has become necessary
to modify certain provisions contained in such Third Amendment to conform Third
Amendment with the form of the 2007A Amendment to the Airline Operating
Agreement and Terminal Building Lease entered into between MAC and the other
Signatory Airlines as set forth herein.

 

WHEREAS,
AIRLINE, NWA, Inc. (“NWA”), Northwest Aerospace Training Corporation (“NATCO)”;
collectively with Airline and NWA, the “Northwest Entities”) and MAC are
parties to a series of agreements and documents with respect to the
Minneapolis-St. Paul Metropolitan Airports Commission General Obligation
Revenue Refunding Bonds, Series 15 (all such agreements, guaranties,
security documents and other documents shall be collectively referred to as the
“GO 15 Documents”).

 

WHEREAS,  the Northwest Entities filed a petition under
Chapter 11 of Title 11 of the United States Code on September 14, 2005,
which case is pending in the United States Bankruptcy Court for the Southern
District of New York in an administratively consolidated case entitled In re
Northwest Airlines Corporation et al., 
Case No. 05-17930(ALG) (“2005 Bankruptcy Case”).

 

WHEREAS,
as part of its reorganization in the 2005 Bankruptcy Case, AIRLINE and MAC
negotiated a comprehensive resolution of all lease and debt issues between them
as set forth in a Memorandum of Understanding executed by AIRLINE on February 12,
2007 and by MAC on February 19, 2007 (“MOU”).  As part of such comprehensive agreement
documented in the MOU, AIRLINE requested that, and MAC agreed to, make
significant changes to the existing Airline Operating Agreement and Terminal
Building Leases between the MAC and each Signatory Airline, including AIRLINE’s
Lease, that would provide substantial reductions in rates and charges payable
by each Signatory Airline, including AIRLINE, and requiring that MAC share
revenue generated from various sources at the Airport with such airlines.

 

WHEREAS,
as part of such comprehensive agreement, MAC has agreed to amend the existing
Airline Operating Agreement and Terminal Building Leases between the MAC and
each Signatory Airline, including AIRLINE’s Lease on the terms and conditions
set forth herein, provided that (i) each Signatory Airline shall be
entitled to the reduction of rates and charges and the revenue sharing to be
provided by the MAC hereunder only to the extent that such airline remains in
compliance with all of its obligations to the MAC, and (ii) in the case of
AIRLINE, (a) the Northwest Entities agree that their plan of
reorganization will provide that the Northwest Entities will continue to fully
perform all obligations under the GO 15 Documents with all such obligations
remaining unimpaired, and (b) the GO 15 Documents shall be amended to,
among other things, pledge the right of AIRLINE to receive revenue sharing
proceeds to MAC as security for AIRLINE’S obligations under the GO 15
Documents.

 

 

WHEREAS,
the Amendment evidenced hereby and the protections described above are an
essential part of the comprehensive resolution and are fundamental to the
Agreement contained in the MOU.

 

WHEREAS,
in consideration for, among other things, the foregoing and at AIRLINE’S
request, MAC is willing to allow the future anticipated revenue sharing
proceeds to be used to determine the AIRLINE’S compliance with its minimum
collateral requirements under the GO 15 Documents.

 

WHEREAS,
AIRLINE hereby acknowledges and accepts that it is reasonable and
non-discriminatory under the circumstances that pursuant to the Amendment to
Lease dated March 29, 2002, MAC may cancel AIRLINE’s Short Term Gates
for any Airline proposing to add additional air service and desiring to lease a
gate directly from MAC, while the same Short Term Gate provision applicable to
other Signatory Airlines provides MAC the ability to cancel the lease of a
Short Term Gate only for if an Airline presently not leasing a gate
directly from MAC or not currently providing air service to the airport is
proposing to add additional air service and desires to lease a gate directly
from MAC.

 

NOW
THEREFORE, in consideration of the foregoing, the parties agree to amend the
Lease as follows:

 

I.              INCORPORATION
OF AIRLINE OPERATING AGREEMENT AND TERMINAL  BUILDING LEASE

 

Except
as set forth in this Amended and Restated Third Amendment, the Lease shall
remain in full force and effect.  In the
event of a conflict between this Amended and Restated Third Amendments and the
Lease, the provisions of this Amended and Restated Third Amendment shall control.

 

II.            DEFINITIONS

 

All
capitalized terms used in this Amended and Restated Third Amendment but not
defined herein shall have the meanings given them in the Lease.  The following terms, as used herein and in
the Lease, shall have the meanings set forth below and, to the extent any such
term was defined in the Lease, the definition contained in the Lease shall be
deleted and replaced with the definition for such term set forth below:

 

A.                                   “2005
Bankruptcy Case” means that certain administratively consolidated case pending
in the United States Bankruptcy Court for the Southern District of New York
entitled In re Northwest Airlines Corporation et al, Case No. 05-17930
(ALG) commenced pursuant to a petition filed by AIRLINE and its affiliates
under Chapter 11 of Title 11 of the United States Code on September 14,
2005.

 

B.                                     “Affiliated
Airline” means an Airline other than Airline that (a) operates aircraft of
76 passenger seats or less at the Airport and is party to a code share
agreement with AIRLINE applicable to such Airline’s flights to and from the
Airport, (b) has signed an Airline Operating Agreement and Terminal
Building Lease similar to the form of this Agreement, (c) is party to an
Airline Services Agreement with AIRLINE and (d) has been designated in
writing by AIRLINE as an “affiliate” of AIRLINE.

 

C.                                     “Airline Rented
Space” means the aggregate of that portion of Rentable Space under lease to all
Signatory Airlines.

 

D.                                    “Airline
Services Agreement” means any agreement between AIRLINE and any regional air
carrier pursuant to which such air carrier provides air transportation services
for AIRLINE under AIRLINE’s designator code.

 

E.                                      “Amendment
Effective Date” shall have the meaning ascribed to such term in Section XII
of this Amended and Restated Third Amendment.

 

2

 

F.                                      “Annual Gross
Revenue” means rent, concessions fees or similar charges actually received
during any Fiscal Year by MAC from Selected Concessions.  Annual Gross Revenue shall not include sales
taxes, utility fees, consortium fees, key money, customer facilities charges or
other similar “pass through” charges.

 

G.                                     “Auto Rental
Concessions” means all auto rental companies or other business organizations
operating at either the Lindbergh or Humphrey Terminals pursuant to concessions
agreements with MAC.

 

H.                                    “Assumed
Agreements” shall have the meaning given to the term in Section XII of
this Amended and Restated Third Amendment.

 

I.                                         “Debt Service”
means the aggregate amount of principal and interest payments made by MAC that
are due and payable during the Fiscal Year on MAC financings including but not
limited to all future and existing general obligation revenue bonds, airport
revenue bonds, refunding obligations, commercial paper (excluding the principal
amount of commercial paper reissued during the Fiscal Year) and other debt
instruments of the Commission and specifically including, but not limited to,
those obligations specifically included on Exhibit 2 attached hereto.  In addition, debt service shall also include:

 

(i)                                     amounts paid as prepayment
of obligations, if such prepayment is deemed approved by a Majority-In-Interest
of Signatory Airlines pursuant to the provisions of Article VII.B. hereof,

 

Or

 

(ii)                                  principal and interest in
accordance with its original scheduled amortization for any prepayment made by
MAC which is not deemed approved by the Majority-In-Interest of Signatory
Airlines in accordance with (i) above, until such time as the original
principal amount of such prepaid obligation has been recovered by MAC.

 

J.                                        “Deferred Revenue
Sharing Amount” shall have the meaning given to the term in Section VIII.I.4
of this Amended and Restated Third Amendment.

 

K.                                    “Flight” means
a scheduled flight of jet aircraft with not less than 70 passenger seats.

 

L.                                      “Food and
Beverage Concessions” means companies or other business organizations that sell
consumable food or beverages items, excluding vending operations, to the
traveling public at the Lindbergh (excluding sales from the G Concourse) or
Humphrey Terminals, pursuant to concessions agreements with MAC.

 

M.                                 “GO13” means
the Minneapolis-St. Paul Airports Commission Taxable General Obligation Revenue
Bonds, Series 13, outstanding from time to time.

 

N.                                    “GO15” means
the Minneapolis-St. Paul Metropolitan Airports Commission Taxable General
Obligation Revenue Refunding Bonds, Series 15, outstanding from time to
time.

 

O.                                    “Humphrey
Terminal Repair and Replacement Surcharge” shall be equal to nine percent (9%)
of the Repair and Replacement Amount. 
This allocation shall be adjusted every five years based on increases to
the cost center’s book value.

 

P.                                      “Headquarters”
means the corporate office which constitutes (i) the principal office of
AIRLINE or any assignee holding substantially (i.e., ninety percent (90%) or
more) all of the assets of AIRLINE from which its business is conducted, and (ii) the
principal office of

 

3

 

AIRLINE’s or such assignee entity’s CEO, CFO and a majority of its
other senior management team members.

 

Q.                                    “Hub” means
that AIRLINE and its regional Affiliated Airlines which are party to an Airline
Services Agreement with AIRLINE shall maintain at the Airport no less than an
aggregate annual average of 227 daily departing Flights on which an aggregate
annual average of at least thirty percent (30%) of Enplanements are passengers
whose travel neither originates from nor terminates at the Airport.

 

R.                                     “Lindbergh
Terminal Repair and Replacement Surcharge” shall be equal to nineteen percent
(19%) of the Repair and Replacement Amount divided by Airline Rented
Space.  This allocation shall be adjusted
every five years based on increases to the cost center’s book value.

 

S.                                      “Landing Fee
Repair and Replacement Amount” shall be equal to sixty-eight percent (68%) of
the Repair and Replacement Amount.  This
allocation shall be adjusted every five years based on increases to the cost
center’s book value.

 

T.                                     “Merchandise
Concessions” means companies or other business organizations that sell retail
or news products, excluding automated vending items, to the traveling public at
the Lindbergh (excluding sales from the G Concourse) or Humphrey Terminals,
pursuant to concessions agreements with MAC.

 

U.                                    “Net Revenues”
has the meaning provided for in the Trust Indenture.

 

V.                                     “Repair and
Replacement Amount” means a $15 million deposit for Fiscal Year 2006, and
increased by three percent (3%) per annum for each Fiscal Year thereafter
compounded annually (i.e., $15.45 million in Fiscal Year 2007, $15.91 million
in Fiscal Year 2008, etc.) to a Repair and Replacement subaccount within the
construction fund to be expended for major maintenance and minor (less than $2
million) capital projects, except for automobile parking facilities and
roadways.

 

W.                                “Selected
Concessions” means Food and Beverage Concessions, Merchandise Concessions, and
Auto Rental Concessions.

 

X.                                    “Selected
Concessions Revenues Escalation Factor” means the following annual percentage
escalation factors (compounded) to be applied to the dollar thresholds provided
in Section VIII.I.1:

 

	
  Year

  	
   

  	
  Annual Escalation Factor

  	
   

  
	
  2006

  	
   

  	
  Base Year

  	
   

  
	
  2007

  	
   

  	
  1.77

  	
  %

  
	
  2008

  	
   

  	
  4.75

  	
  %

  
	
  2009

  	
   

  	
  4.47

  	
  %

  
	
  2010

  	
   

  	
  4.46

  	
  %

  
	
  2011

  	
   

  	
  4.20

  	
  %

  
	
  2012

  	
   

  	
  4.73

  	
  %

  
	
  2013

  	
   

  	
  4.46

  	
  %

  
	
  2014

  	
   

  	
  4.47

  	
  %

  
	
  2015

  	
   

  	
  4.46

  	
  %

  
	
  2016

  	
   

  	
  4.46

  	
  %

  
	
  2017

  	
   

  	
  4.46

  	
  %

  
	
  2018

  	
   

  	
  4.47

  	
  %

  
	
  2019

  	
   

  	
  4.47

  	
  %

  
	
  2020

  	
   

  	
  4.47

  	
  %

  

 

4

 

Y.                                     “Terminal Apron”
and “Terminal Ramp” shall be interchangeable terms and both terms shall mean
the airport parking apron as shown on Exhibit D to the Lease, together
with any additions and/or changes thereto.

 

Z.                                     “Terminal Apron
Repair and Replacement Amount” shall be equal to four percent (4%) of the
Repair and Replacement Amount.  This
allocation shall be adjusted every five years based on increases to the cost
center’s book value.

 

III.           TERM

 

Article II.
“Term” of the Lease is hereby deleted in its entirety and replaced with the
following:

 

II.                                     Term.

 

The
term of this Agreement shall begin as of the Amendment Effective Date of this
Agreement and end December 31, 2020 for all portions of the Premises,
provided that the conditions for AIRLINE’s lease of the G Concourse during the
period commencing on January 1, 2016 and ending December 31, 2020
shall be determined as set forth in Article II.A. below (hereinafter
collectively referred to as the “Term”), and the rents, fees and other charges
established by this Agreement shall apply to said term.

 

In
addition to the foregoing:

 

A.                                   The conditions
on which MAC will lease the G Concourse to AIRLINE during the period commencing
January 1, 2016 and ending December 31, 2020 will be determined by
the mutual agreement of the parties at the time the 2020 Plan is incorporated
into the Lease, recognizing that it is the objective of both parties that (i) MAC
assume operational control of the G Concourse during such period while
continuing to lease to AIRLINE all gate, holdroom, ramp, office, support and
operational spaces leased to AIRLINE on the Amendment Effective Date, and (ii) there
shall be no substantive change in the net economic impact to either party
taking into consideration all revenue and costs associated with operation and
maintenance of the G Concourse, including, but not limited to, concession
areas, gates, holdrooms, ramp and support and operations space.

 

B.                                     AIRLINE shall
not enter into any agreement that could affect the operation of the G Concourse
after December 31, 2015 without the prior written consent of MAC.

 

IV.           USE
OF THE INTERNATIONAL ARRIVALS FACILITY

 

                Article III.C “Use of
the International Arrivals Facility” shall be deleted in its entirety and replaced  with the following:

 

C.                                     Use of the
International Arrivals Facility

 

MAC will control prioritization and utilization of the IAF and
associated gates for international arrivals by Airlines providing International
Regularly Scheduled Airline Service and may develop prioritization procedures
not inconsistent with the terms of this Agreement. The provisions in this Section C.
shall continue through December 31, 2020.

 

5

 

1.                                       In order to use
the International Arrivals Facility, AIRLINE must maintain its status as
International Regularly Scheduled Airline Service. AIRLINE shall provide MAC a
detailed written certification for each numbered element on Exhibit H,
upon MAC’s request. MAC retains the right to verify the status of AIRLINE and
determine whether AIRLINE qualifies as International Regularly Scheduled
Airline Service.

 

2.                                       Gates G1
through G10 and associated passenger loading bridges, ramp access and lobby and
baggage facilities on Concourse G currently leased by Northwest Airlines, Inc.
(hereinafter referred to as “Northwest” or “Northwest Airlines”) shall be made
available for access to the International Arrivals Facility based on the
following priority of use:

 

a.                                       International
Regularly Scheduled Airline Service as defined in Exhibit H.

 

b.                                      Northwest or a
Northwest Affiliated Airline domestic arrivals and departures.

 

c.                                       Non-scheduled
irregular or delayed international charter arrivals when the expected delay for
the flight to use the Humphrey Terminal facility will exceed 90 minutes and the
use of an IAF gate will not interfere with the scheduled use of that gate. Such
interference shall be defined as the overlap of the non-scheduled use with the
scheduled use such that the scheduled flight will have to be relocated to
another concourse for its operation or will have to wait for a gate due to the
unavailability of any gate. Use of an IAF gate by a non-scheduled flight is
subject to Northwest’s approval; such approval is not to be unreasonably
withheld or delayed. Northwest shall designate an individual on site to give
necessary approvals.

 

3.                                       Northwest shall
provide all Ground Handling at the IAF gates subject to either (i) air
carrier self-handling rights contained in AIP grant assurances, at rates that
do not exceed those specified in the Mutual Assistance Ground Service
Agreement, or (ii) authorize the use of a third party ground handling
company to provide Ground Handling at the IAF gates upon a requesting airline
executing the memorandum of understanding included as Exhibit W.  Northwest shall also provide reasonable
access for air carriers to data and communications systems at gates G1-G10.

 

4.                                       No Airline
aircraft will remain on gates G1-G10 over two hours if a narrow-body or three
hours if a wide-body. Northwest will coordinate any moving of aircraft with MAC’s
operations department, FAA and appropriate federal inspections agencies.

 

5.                                       AIRLINE, if it
self-handles, or Northwest, if it provides Ground Handling to AIRLINE, on gates
G1-G10, shall handle and dispose of all international waste on AIRLINE’s
aircraft in accordance with the requirements of the United States Department of
Agriculture.

 

6.                                       Northwest shall
be responsible for all maintenance, repair, and operation of MAC jet bridges
provided by MAC as part of the IAF. 
Northwest shall make the MAC jet bridges available for use by all users
of the IAF without additional charge.

 

Exhibit W
has been attached to this Amendment as Exhibit 7

 

6

 

V.            ACCOMMODATION
OF OTHER AIRLINES

 

Article IV.E.
“Accommodation of Other Airlines” of the Lease is hereby deleted in its
entirety and replaced with the following Article IV.E.:

 

1.                                       Thirty
(30) days in advance of each schedule change AIRLINE shall provide MAC with a
copy of the published schedule and a gate plot showing all times when aircraft
are scheduled to be utilizing each Preferential Use gate, including aircraft
type, projected arrival and departure times, and point of origin or
destination, including activities by subtenants or airlines being accommodated.

 

2.                                       In furtherance of the public interest of having the Airport’s capacity
fully and more effectively utilized, it is recognized by AIRLINE and MAC that (i) AIRLINE
shall be prohibited from subleasing any of its Premises to another Airline
without the prior written consent of MAC, which consent shall not be
unreasonably withheld, delayed, or conditioned, however MAC shall not be
required to approve any sublease if there is vacant space available from MAC
and (ii) from time to time during the term of this Agreement it may become
necessary for the AIRLINE to accommodate another Airline within its Premises or
for MAC unilaterally to require AIRLINE to accommodate another Airline(s) within
AIRLINE’s Premises as required for the following:

 

a.                                       To comply with
any applicable rule, regulation, order or statute of any governmental entity
that has jurisdiction over MAC, and to comply with federal grant assurances
applicable to MAC.

 

b.                                      To implement a
Capital Project at the Airport.

 

c.                                       To facilitate
the providing of air services at the Airport by an Airline (“Requesting Airline”)
when no Airline serving the Airport is willing to accommodate the Requesting
Airline’s operational needs or requirements for facilities at reasonable costs
or on other reasonable terms.

 

d.                                      To accommodate
the irregular activity of another Airline (“Irregular Need”).

 

e.                                       To accommodate
the Irregular Need of AIRLINE.  To the
extent possible, AIRLINE shall accommodate its Irregular Need on its Preferential
Use gate(s).  When such activity may not
be accommodated on AIRLINE’S Preferential Use gate(s), AIRLINE shall seek
accommodation from other Airlines on its own through coordination among such
Airlines’ supervisors and managers.  In
the event accommodation cannot be found on another Airline’s premises, AIRLINE
may seek assistance from MAC.  MAC’s
options shall include assigning use of non-leased gate premises or referring
AIRLINE to MAC’s agent responsible for managing MAC’s remote parking
locations.  For an Irregular Need, MAC
shall not be responsible for unilaterally accommodating an Airline on another
Airline’s leased premises. AIRLINE will be responsible for payment of all
applicable fees and charges including, if applicable, appropriate FIS charges in
connection with such accommodation.

 

f.                                         To accommodate
a flight that has declared an emergency and such flight shall have priority
over all other flight scheduling.

 

7

 

3.                                       In responding
to a request for facilities for either a Requesting Airline or to accommodate
Irregular Need, MAC shall first work with the Requesting Airline or Airline
seeking accommodation of Irregular Need to use existing Common Use Space or
unassigned space, if any is available.

 

4.                                       When necessary, MAC shall make a determination as to whether any Airline
has underutilized facilities or capacity available.  In making such determination MAC shall not
act unreasonably.  Such determinations by
MAC shall take into consideration the following:

 

a.                                       The then existing utilization of AIRLINE’s
Premises (including any requirements for spare gates and accommodation of
AIRLINE’s Affiliates) and any bona fide plan of AIRLINE or any other Airline
for the increased utilization of the AIRLINE’s Premises to be implemented
within twelve (12) months thereafter (any non-public information provided by
AIRLINE regarding planned or proposed routes, schedules or operations shall be
treated as confidential by MAC to the maximum extent permitted by law).

 

b.                                      The need for compatibility among the current
schedules, including RON requirements, flight times, operations, operating
procedures and equipment of AIRLINE (and its Affiliate(s)) or any other Airline
and those of the Requesting Airline or the Airline seeking accommodation of
Irregular Need, as well as the need for labor harmony, facilities, resources,
and other relevant factors.

 

c.                                       During irregular operations, AIRLINE’S scheduled
operations will have priority over any accommodated Airline on its Premises.

 

d.                                      Any flights scheduled on AIRLINE’s Preferential
use gate(s) must vacate the gate at least 45 minutes before the next use
by AIRLINE.

 

e.                                       The maximum gate occupancy by narrow body
aircraft for a Requesting Airline or an Airline seeking accommodation of
Irregular Need shall be 45 minutes for an arrival, 45 minutes for a departure,
or 1 hour and 30 minutes for a combined turn.

 

f.                                         The maximum scheduled gate occupancy by wide
body aircraft for a Requesting Airline or an Airline seeking accommodation of
Irregular Need shall be 1 hour for an arrival, 1 hour for a departure, or 2
hours for a combined turn.

 

g.                                      Any aircraft occupying a gate longer than the
above timeframes may be required to vacate the gate to accommodate other operations.  Should this occur, upon AIRLINE’s request MAC
will notify the Airline being accommodated as soon as MAC becomes aware of the
requirement, but in any event no later than 15 minutes before the time that
actual vacating is required.  Failure to
vacate shall result in the imposition of additional overtime fees by AIRLINE to
the accommodated Airline. If an Airline being accommodated does not vacate a
gate as required, and AIRLINE requires the use of such gate, upon AIRLINE’s
request MAC shall instruct Airline to remove its aircraft to another location
leased by the Airline or to a remote location as designated by MAC’s
agent.  If failure of the accommodated
Airline to remove its aircraft results in AIRLINE requiring remote parking from
MAC, MAC shall invoice the 

 

8

 

accommodated
Airline for any remote parking fees that would be charged to AIRLINE.

 

h.                                      Before MAC accommodates a Requesting Airline
within AIRLINE’s Premises, MAC must give AIRLINE ten (10) days prior
written notice of its intent. AIRLINE must accept accommodation or notify MAC
within ten (10) business days after AIRLINE’s receipt of such notice that
it wishes to meet with MAC to show cause why the accommodation should not be
made.

 

5.                                       The accommodated Airline shall be responsible for the payment of all
applicable fees and charges for such use, including but not limited to
appropriate FIS charges and overtime fees.

 

6.                                       In the event that any portion of AIRLINE’s Premises are used to
accommodate another Airline or Irregular Need:

 

a.                                       AIRLINE shall be authorized to (i) charge
such accommodated Airline a reasonable accommodation fee and (ii) require
from the accommodated Airline an indemnity and defense undertaking, so long as
such undertaking is not more favorable to AIRLINE than that which AIRLINE
provide to MAC.

 

b.                                      Each accommodated Airline shall be responsible
for (i) ensuring that its agents, employees, and contractors are properly
qualified prior to operating any and all equipment and (ii) are
responsible for securing jetway doors upon completion of use.

 

c.                                       AIRLINE shall not be required to indemnify and
save harmless MAC, its employees or agents with regard to any claim for damages
or personal injury arising out of any accommodated Airline’s use of AIRLINE’s
premises, unless caused by the negligence of AIRLINE;

 

d.                                      AIRLINE shall not be liable to any accommodated
Airline or any of its agents, employees, servants or invitees, for any damage
to persons or property due to the condition or design or any defect in the
Premises which may exist or subsequently occur, and such accommodated Airline,
with respect to it and its agents, employees, servants and invitees shall be
deemed to have expressly assumed all risk and damage to persons and property, either
proximate or remote, by reason of the present or future condition or use of
AIRLINE’S Premises.  Further, such
accommodated Airline shall be deemed to have agreed to release, indemnify, hold
harmless and defend AIRLINE, the MAC, and their respective officers, directors,
employees, agents, successors and assigns, from and against any and all suits,
claims, actions, damages, liabilities and expenses (including, without
limitation, attorneys’ fees, costs and related expenses) for bodily or personal
injury or death to any persons and for any loss of, damage to, or destruction
of any property, including loss of use, incidental and consequential damage
thereof, arising out of or in any manner connected with the use of AIRLINE’S
Premises by such accommodate Airline or any of its agents, representatives,
employees, contractors or invitees, whether or not occurring or arising out of
the negligence, whether sole, joint, concurrent, comparative, active, passive,
imputed or any other type, of AIRLINE, MAC or their respective officers,
directors, employees or agents; provided, however, the 

 

9

 

foregoing
indemnification shall not apply to any claim or liability resulting from the
gross negligence or willful misconduct of AIRLINE, its officers, directors,
employees or agents.

 

e.                                       MAC shall be responsible for ensuring that such
accommodated Airline has in full force and effect MAC’s required insurance
coverages.

 

f.                                         Without limiting any other provision of this
Amended and Restated Third Amendment, AIRLINE’s duty to accommodate another
airline shall be conditioned on and subject to the satisfaction of all
requirements of this Section 6.

 

7.                                       In the event of a labor stoppage or other event which results in the
cessation or substantial reduction in AIRLINE’s flights operations at the
Airport, AIRLINE will immediately take all reasonable efforts, including but
not limited to, moving of aircraft or equipment, providing access to AIRLINE’s
holdrooms and jet bridges or anything else in AIRLINE’s control, in order to
accommodate the operations of other Airlines providing air service to the
Airport; provided that: (a) AIRLINE at all times will have access to its
premises and equipment for operational reasons and (b) AIRLINE shall not
be required to take any action which would interfere with its ability to
re-institute service upon cessation of labor stoppage or other event.
Subject to a mutually acceptable agreement between MAC and AIRLINE covering
such use, AIRLINE shall have the right to charge reasonable fees and to require
reasonable advance payment for such use of AIRLINE’s gates, holdroom areas, and
loading bridges (and any such fees not in excess of 115% of the rates and
charges payable by AIRLINE hereunder for such premises shall be deemed
reasonable).

 

8.                                       The foregoing shall not be deemed to abrogate, change, or affect any
restrictions, limitations or prohibitions on assignment or use of the AIRLINE’s
Premises by others under this Agreement and shall not in any manner affect,
waive or change any of the provisions thereof.

 

VI.           SHORT
TERM GATES

 

Article IV.H.
“Short Term Gates” of the Lease is hereby deleted and replaced with the
following:

 

H.            Short Term Gates

 

The
holdrooms, aircraft parking positions and operations space associated with
gates as shown on Exhibit V (hereinafter referred to as “Short Term Gates”)
shall be made available to Airlines on the following basis in order to promote
Airport access on fair and reasonable terms:

 

1.                                       AIRLINE shall
lease Short Term Gate space under its control on the same basis as provided in
this Agreement, except as provided in this Section.

 

2.                                       MAC may, in its
discretion, cancel the lease of a Short Term Gate leased by AIRLINE if an
Airline is proposing to add additional air service and desires to lease a gate
directly from MAC. The following procedures shall be followed before a Short
Term Gate lease may be cancelled:

 

a.                                       If an Airline
is proposing to add additional air service and desires to lease a gate directly
from MAC, MAC may in its discretion issue a Notice of Cancellation.  The Notice of Cancellation may become
effective after ninety (90) days.

 

10

 

b.                                      In the event of
a decision to cancel a Short Term Gate, MAC will work with AIRLINE to attempt
to accommodate AIRLINE’s schedule pursuant to the procedures of Article IV.E.3.

 

c.                                       MAC may extend
the time periods set forth in this provision for good cause, e.g. the
unavailability of replacement jet bridges or other ground equipment.

 

d.                                      Of Gates D1-D6
leased to AIRLINE, MAC shall cancel the lease for Gate D2 last.

 

3.                                       In the event
MAC cancels the lease of a Short Term Gate pursuant to this Section IV.H.,
it shall compensate AIRLINE for the unamortized cost of improvements made to
the leased premises of a Short Term Gate. 
AIRLINE shall retain and remove AIRLINE property (e.g. jet bridge or
other ground equipment, computers, inserts) or may negotiate their sale.

 

4.                                       The appearance
of a Short Term Gate shall be “generic” i.e. generic carpet, neutral wall
finishes and no distinguishing colors on the podium or backwall except as to
improvements existing as of the date of this Agreement.  AIRLINE may hang corporate banners or posters
and name identification signs so long as they can be detached without significantly
damaging the premises or AIRLINE commits to restoring the premises without cost
to MAC.

 

5.                                       If AIRLINE is
leasing only one holdroom from MAC, it may request that MAC remove the Short
Term Gate designation from a holdroom by demonstrating that it has met the
following conditions:

 

a.                                       AIRLINE has not
been in default on any rental, security deposit, PFC or other payment
obligation to MAC under the Lease or this Amended and Restated Third Amendment
during the prior twelve consecutive months; and

 

b.                                      AIRLINE has
maintained an Average Daily Utilization at least equal to seven departures for
each of the previous twelve consecutive months. 
For purposes of this provision “Average Daily Utilization” shall mean
the number of AIRLINE’s and any Affiliated Airline’s scheduled aircraft
departures using the gate with aircraft of fifty or more seats in a calendar
month, divided by the number of days in that calendar month; provided, however,
that if AIRLINE’s or the Affiliated Airline’s actual flight activity differs by
more than five percent (5%) from its published schedule in any calendar month,
MAC shall use AIRLINE’s or the Affiliated Airline’s actual total departures for
purpose of calculating Average Daily Utilization.

 

6.                                       If AIRLINE is
leasing three (3) or fewer holdrooms from MAC, MAC agrees to not cancel
the lease of more than one Short Term Gate AIRLINE may be leasing in accordance
with the procedures identified in Article IV.H.2. as long as AIRLINE has
adhered to the payment and utilization requirements identified within Article IV.H.5.
for all leased gates for the previous twelve (12) consecutive months.

 

Exhibit V
to the Lease has been attached hereto as Exhibit 5.

 

11

 

VII.         RENTS, FEES, AND CHARGES

 

Article V.B.
“Rents, Fees, and Charges” of the Lease is hereby deleted in its entirety and
replaced with the following:

 

B.                                     Rents, Fees,
and Charges

 

1.                                       Landing Fees

 

AIRLINE
shall pay to MAC monthly landing fees to be determined by multiplying the
number of 1,000-pound units of AIRLINE’s Total Landed Weight during the month
by the then-current landing fee rate. 
The landing fee rate shall be calculated according to procedures set
forth in Article VI or Article VI. (Alternate).

 

2.                                       Environmental
Surcharges.  Intentionally
Omitted.

 

3.                                       Terminal Apron
Fees

 

AIRLINE
shall pay to MAC monthly Terminal Apron fees to be determined by multiplying
the number of lineal feet of Terminal Apron under lease to AIRLINE (excluding
Concourses A and B) during the month by the then-current Terminal Apron
rate.  The Terminal Apron rate shall be
calculated according to the procedures set forth in Article VI or Article VI.
(Alternate) hereof.

 

4.                                       Concourse A and
B Terminal Apron Fees

 

AIRLINE
shall pay to MAC monthly Terminal Apron Fees associated with Concourses A and B
at the rate of fifty percent (50%) of the lineal feet associated with
Concourses A and B.

 

5.             Terminal Building Rents and
Surcharge

 

AIRLINE
shall pay to MAC monthly Terminal Building rentals and the Lindbergh Terminal
Repair and Replacement Surcharge for its Exclusive (janitored and unjanitored),
Preferential and Common Use Space in the Terminal Building.  The Terminal Building rental rates shall be
calculated according to the procedures set forth in Article VI or Article VI.
(Alternate).

 

Terminal Building rentals for Common Use Space (except the IAF) shall
be prorated among Signatory Airlines using the Common Use Formula.

 

6.                                       Carrousel and
Conveyor Charges

 

AIRLINE
shall pay to MAC monthly carrousel and conveyor charges based upon maintenance
and operating costs and Debt Service. 
The carrousel and conveyor charges shall be calculated according to the
procedures set forth in Article VI or Article VI. (Alternate) and
shall be prorated among Signatory Airlines using the Common Use Formula.

 

7.                                       IAF Gate Fees

 

AIRLINE
shall pay to MAC monthly IAF gate fees determined by multiplying the number of
arrivals at the IAF by AIRLINE’s propeller aircraft, narrow-body jet aircraft,
and wide-body jet aircraft by $400, $800, and $1,200, respectively.

 

12

 

8.                                       IAF Use Fees

 

AIRLINE
shall pay to MAC monthly IAF use fees determined by multiplying the number of
AIRLINE’s international passengers arriving at the IAF during the month by the
IAF use fee rate. The IAF use fee rate shall be calculated according to
procedures set forth in Article VI or Article VI. (Alternate).

 

9.                                       Other Fees and
Charges

 

AIRLINE
shall pay to MAC reasonable fees for the various other services provided by MAC
to AIRLINE. These services include, but may not be limited to, the following:

 

a.                                       Use of the
Humphrey Terminal and Humphrey ramp at rates established from time to time by
MAC.

 

b.                                      Use of Garage
Parking Cards by AIRLINE’s employees at rates set forth in the Guidelines for
Administering Validated Airport Parking.

 

c.                                       Use of
designated employee parking facilities by AIRLINE’s employees at rates
established from time to time by MAC.

 

d.                                      Non-routine
Terminal Apron cleaning and other special services requested by AIRLINE at
rates that reflect the costs incurred by MAC.

 

e.                                       Security and
personnel identification badges for AIRLINE’s personnel at rates established
from time to time by MAC.

 

f.                                         Office
services, such as facsimile, photocopying, or telephone provided by MAC. Charges
for these services shall be at the rates that MAC customarily charges for such
services.

 

g.                                      Charges for the
cost of separately metered water and sewer and other such utilities not
otherwise included in the calculation of rents, fees, and charges.

 

VIII.                        CALCULATION
OF RENTS, FEES, AND CHARGES

 

Article VI
(Alternate), “Calculation of Rents, Fees and Charges” is hereby added to the
Lease and shall be placed immediately following Article VI (“Calculation
of Rents, Fees, and Charges”) as follows:

 

VI
(ALTERNATE).                                            CALCULATION OF
RENTS, FEES AND CHARGES.

 

A.                                   General

 

Notwithstanding Article VI hereof, effective January 1, 2006,
and for each Fiscal Year thereafter, rents, fees, and charges will be reviewed
and recalculated based on the principles and procedures set forth in this Article VI
(Alternate).  The annual costs associated
with each of the indirect cost centers shall be allocated to each of the
Airport Cost Centers based on the allocations as set forth in Exhibit M,
Indirect Cost Center Allocation, which allocations may be amended from time to
time by mutual consent of MAC and a Majority-In-Interest of Signatory
Airlines.  Such consent may not be
unreasonably withheld.

 

13

 

B.                                     Calculation/Coordination
Procedures

 

1.                                       AIRLINE shall provide to
MAC: (a) on or before August 1 of each year a preliminary estimate of
Total Landed Weight and Enplaned Passenger for the succeeding calendar year of
AIRLINE and each Affiliated Airline, unless separately reported to MAC by such
Affiliated Airline; and (b) on or before October 1 of each year a
final estimate of such weight.  If the
final estimate is not so received, MAC may continue to rely on the preliminary
estimate for the MAC budgeting process. 
MAC will utilize the forecast in developing its preliminary calculation
of Total Landed Weight and Enplaned Passengers for use in the calculation of
rents, fees, and charges for the ensuing Fiscal Year.

 

2.                                       On or before October 15
of each Fiscal Year, MAC shall submit to AIRLINE a preliminary calculation of
rents, fees, and charges for the ensuing Fiscal Year. The preliminary
calculation of rents, fees, and charges will include, among others, MAC’s
estimate of all revenue items, Operation and Maintenance Expenses, Debt
Service, Capital Outlays, required deposits, including amounts necessary to be
deposited in the Coverage Account in order to meet MAC’s rate covenant under
the Trust Indenture, and Rentable Space.

 

3.                                       Within fifteen
(15) days after receipt of the preliminary calculation of rents, fees, and
charges, if requested by the Signatory Airlines, a meeting shall be scheduled
between MAC and the Signatory Airlines to review and discuss the proposed
rents, fees, and charges.

 

4.                                       MAC shall then
complete a calculation of rents, fees, and charges at such time as the budget
is approved, taking into consideration the comments or suggestions of AIRLINE
and the other Signatory Airlines.

 

5.                                       If, for any
reason, MAC’s annual budget has not been adopted by the first day of any Fiscal
Year, the rents, fees, and charges for the Fiscal Year will initially be
established based on the preliminary calculation of rents, fees, and charges
until such time as the annual budget has been adopted by MAC. At such time as
the annual budget has been adopted by MAC, the rents, fees, and charges will be
recalculated, if necessary, to reflect the adopted annual budget and made
retroactive to the first day of the Fiscal Year.

 

6.                                       If, during the
course of the year, MAC believes significant variances exist in budgeted or
estimated amounts that were used to calculate rents, fees, and charges for the
then current Fiscal Year, MAC may after notice to Airlines adjust the rents,
fees, and charges for future reports to reflect current estimated amounts.

 

C.                                     Landing Fees

 

MAC shall calculate the landing fee rate in the following manner and as
illustrated in Exhibit N (revised).

 

1.                                       The total
estimated Airfield Cost shall be calculated by totaling the following annual
amounts:

 

a.                                       The total
estimated direct and allocated indirect Operation and Maintenance Expenses
allocable to the Airfield cost center.

 

b.                                      The estimated
Debt Service net of amounts paid from PFCs or grants allocable to the Airfield
cost center.

 

14

 

c.                                       The cost of
Runway 17/35 deferred and not yet charged from the date of occupancy through December 31,
2005 will be charged starting January 1, 2006 through December 31,
2035 at $79,535.16 annually.

 

d.                                      The Landing Fee
Repair and Replacement Amount.

 

e.                                       The amount of
any fine, assessment, judgment, settlement, or extraordinary charge (net of
insurance proceeds) paid by MAC in connection with the operations on the
Airfield, to the extent not otherwise covered by Article X hereof.

 

f.                                         The amounts
required to be deposited to funds and accounts pursuant to the terms of the
Trust Indenture, including, but not limited to, its Debt Service reserve funds
allocable to the Airfield cost center. 
MAC agrees to exclude from the calculation of landing fees the amounts
which it may deposit from time to time to the maintenance and operation reserve
account and the Coverage Account established and maintained pursuant to the
Trust Indenture except for such amounts which are necessary to be deposited to
the Coverage Account in order for MAC to meet its rate covenant under the Trust
Indenture.

 

2.                                       The total
estimated Airfield Cost shall be adjusted by the total estimated annual amounts
of the following items to determine the Net Airfield Cost:

 

a.                                       Service fees
received from the military, to the extent such fees relate to the use of the
Airfield;

 

b.                                      General
aviation and non-signatory landing fees;

 

c.                                       Debt Service on
the Capital Cost, if any, disapproved by a Majority-In-   Interest of Signatory
Airlines.

 

3.                                       The Net
Airfield Cost shall then be divided by the estimated Total Landed Weight
(expressed in thousands of pounds) of the Signatory Airlines operating at the
Airport to determine the landing fee rate per 1,000 pounds of aircraft weight
for a given Fiscal Year.

 

D.                                    Terminal Apron
Fees

 

MAC shall calculate the Terminal Apron rate in the following manner and
as illustrated in Exhibit N (revised).

 

1.                                       The total
estimated Terminal Apron Cost shall be calculated by totaling the following
annual amounts:

 

a.                                       The total
estimated direct and allocated indirect Operation and Maintenance Expenses
allocable to the Terminal Apron cost center.

 

b.                                      The estimated
Debt Service net of amounts paid from PFCs or grants allocable to the Terminal
Apron cost center (excluding hydrant fueling repairs and modifications).

 

c.                                       The cost of
Concourse A and B Apron Area deferred and not yet charged from the date of
occupancy through December 31, 2005 will be charged 

 

15

 

starting January 1, 2006 through December 31,
2035 at $159,950.19 annually.

 

d.                                      The amounts
required to be deposited to funds and accounts pursuant to the terms of the
Trust Indenture, including, but not limited to, its Debt Service reserve funds
allocable to the Terminal Apron cost center. 
MAC agrees to exclude from the calculation of Terminal Apron fees the
amounts which it may deposit from time to time to the maintenance and operation
reserve account and the Coverage Account established and maintained pursuant to
the Trust Indenture except for such amounts which are necessary to be deposited
to the Coverage Account in order for MAC to meet its rate covenant under the
Trust Indenture.

 

e.                                       The Terminal
Apron Repair and Replacement Amount.

 

2.                                       The Terminal
Apron Cost shall then be divided by the total estimated lineal feet of Terminal
Apron, to determine the Terminal Apron rate per lineal foot for a given Fiscal
Year. For the purposes of this calculation, lineal feet of Terminal Apron shall
be computed as the sum of the following:

 

a.                                       Lineal feet of
the Terminal Apron (excluding the Terminal Apron associated with Concourses A &
B); and

 

b.                                      Fifty percent
(50%) of lineal feet of the Terminal Apron associated with Concourse A &
B

 

E.             Terminal Building Rents

 

MAC shall calculate the terminal building
rental rate for unjanitored and janitored space in the Terminal Building as set
forth in subsections 1 and 2 of this Article VI. (Alternate) E.

 

1.                                       MAC shall
calculate the terminal building rental rate for unjanitored space in the
Terminal Building in the following manner and as illustrated in Exhibit N
(revised).

 

a.                                       The total
estimated Terminal Building Cost shall be calculated by totaling the following
annual amounts:

 

1)                                      The total
estimated direct and allocated indirect Operation and Maintenance Expenses
allocable to the Terminal Building cost center.

 

2)                                      The estimated
direct and allocated Debt Service net of amounts paid from PFCs or grants
allocable to the Terminal Building cost center.

 

3)                                      The cost of
Concourse A, B, C and D deferred and not yet charged from date of occupancy
through December 31, 2005 will be charged starting January 1, 2006
through December 31, 2035 at $2,910,547.40 annually.

 

4)                                      The amounts
required to be deposited to funds and accounts pursuant to the terms of the
Trust Indenture, including, but not limited to, its Debt Service reserve funds
allocable to the Terminal Building cost center. 
MAC agrees to exclude from the calculation of Terminal Rents the amounts
which it may deposit from time to

 

16

 

time
to the maintenance and operation reserve account and the Coverage Account
established and maintained pursuant to the Trust Indenture except for such
amounts which are necessary to be deposited to the Coverage Account in order
for MAC to meet its rate covenant under the Trust Indenture.

 

b.                                      The total
estimated Terminal Building Cost shall be reduced by the total estimated annual
amounts of the following items to determine the Net Terminal Building Cost:

 

1)                                      Reimbursed
expense:

 

a)                                      Steam and
chilled water on the G Concourse;

 

b)                                     Carrousel and
conveyor Capital Cost and Operation and Maintenance Expense;

 

c)                                      Ground Power;

 

d)                                     Loading Dock;
and

 

e)                                      Consortium
Utilities.

 

2)                                      Janitorial
Operation and Maintenance Expenses, as determined by MAC.

 

c.                                       The Net
Terminal Building Cost shall then be divided by the total estimated Rentable
Space in the Terminal Building to determine the terminal building rental rate
per square foot for unjanitored space for a given Fiscal Year.  (See Initial Rentable Square Footage, Exhibit O).

 

2.                                       MAC shall
calculate the terminal building rental rate for janitored space by totaling the
following rates and as illustrated in Exhibit N (revised):

 

a.                                       The terminal
building rental rate per square foot for unjanitored space for a given Fiscal
Year, as calculated in this Section; and

 

b.                                      An additional
rate per square foot, the janitored rate, calculated by dividing the total
estimated direct janitorial Operation and Maintenance Expenses, as determined
by MAC, by the total janitored space in the Terminal Building (excluding MAC
and mechanical space).

 

F.             Carrousel and Conveyor
Charge

 

1.                                       MAC shall
calculate the carrousel and conveyor charge, as illustrated in Exhibit N
(revised), by totaling the following annual amounts: equipment charges
associated with the carrousel and conveyor, including annual Debt Service,
maintenance expense, and service charge.

 

2.                                       MAC shall
prorate the carrousel and conveyor charge among the Signatory Airlines using
the Common Use Formula.

 

17

 

G.            IAF Use Fees

 

The IAF use fee for use of the IAF and any associated gates shall be
effective through December 31, 2015 and shall be based upon:

 

1.                                       The cost of the maintenance
and operation of the International Arrivals Facility which may include, but is
not limited to:

 

a.                                       utilities;

 

b.                                      cleaning:

 

c.                                       maintenance
(including the costs of maintaining the security equipment that existed as of April 1998);

 

d.                                      police, fire,
and administrative cost allocation;

 

e.                                       costs of
providing passenger baggage carts, if any;

 

f.                                         costs of
providing staff parking for federal inspections agency staff; and

 

g.                                      $4.17 per
square foot recoupment for lost rental area in the G Concourse.

 

2.                                       Costs
associated with the operation of dual international arrivals facility locations
at the Airport, based on the appropriate allocation of costs between the two
facilities, not otherwise funded by the federal inspections agencies including,
but not limited to additional personnel and equipment used by those agencies;
and

 

3.                                       Debt Service,
if any; and

 

Items
(1) through (3) above, for which AIRLINE will be billed monthly,
shall be set annually at an estimated charge through MAC’s budget process and
then adjusted at year end for actual costs pursuant to certified audit by MAC’s
external auditors and such difference shall be charged or credited to AIRLINE
and paid by AIRLINE or MAC within thirty (30) days thereafter.

 

H.                                    Year-End
Adjustments of Rents, Fees, and Charges

 

1.                                       As soon as
practical following the close of each Fiscal Year, but in no event later than July 1,
MAC shall furnish AIRLINE with an accounting of the costs actually incurred and
revenues and credits actually realized during such Fiscal Year with respect to
each of the components of the calculation of the rents, fees, and charges
calculated pursuant to this Article broken down by rate making Cost
Center.

 

2.                                       In the event
AIRLINE’s rents, fees, and charges billed during the Fiscal Year exceed the
amount of AIRLINE’s rents, fees, and charges required (as recalculated based on
actual costs and revenues), such excess shall be refunded or credited to
AIRLINE.

 

3.                                       In the event
AIRLINE’s rents, fees, and charges billed during the Fiscal Year are less than
the amount of AIRLINE’s rents, fees, and charges required (as recalculated
based on actual costs and revenues), such deficiency shall be charged to
AIRLINE in a supplemental billing.

 

18

 

I.              Revenue Sharing

 

1.                                       Beginning January 1,
2006, subject to Section XII of the Amended and Restated Third Amendment
to the Airline Operating Agreement and Terminal Building Lease, in conjunction
with its Year End Adjustments of Rents, Fees and Charges, MAC will rebate to
AIRLINE a portion of the Annual Gross Revenues for Selected Concessions for the
most recent Fiscal Year under the following schedule (“Revenue Sharing”) (all
dollar amounts set forth in this Article VI (Alternate) shall apply for
2006 only and shall be escalated for each Fiscal Year after 2006 on an annual
compounded basis by the Selected Concession Revenue Escalation Factor):

 

a.                                       If Annual Gross
Revenues for the Selected Concessions for 2006 are between $25 million and
$32.299 million for the Fiscal Year, 25% of gross revenues;

 

b.                                      If Annual Gross
Revenues for the Selected Concessions are above $ 32.299 million for the Fiscal
Year, 25% of gross revenues up to $32.299 million and 50% of gross revenues
above $32.299 million;

 

2.                                       Reduced sharing
of gross revenues if Annual Gross Revenues for the Selected Concessions are
below $25 million for the Fiscal Year;

 

a.                                       $24 million to
$24.99 million – 20%

 

b.                                      $23 million to
$23.99 million – 15%

 

c.                                       $22 million to
$22.99 million – 10%

 

d.                                      $21 million to
$21.99 million – 5%

 

3.                                       The total
rebate amount shall be allocated among Signatory Airlines according to their
pro rata share of Enplaned Passengers for the Fiscal Year and shall be
structured as a post-year-end check to AIRLINE issued by MAC no later than 240
days following each Fiscal Year, subject to correction following any applicable
audit;

 

4.                                       Notwithstanding
the foregoing, MAC shall have the right to reduce the amount of Revenue Sharing
with respect to any Fiscal Year to the extent necessary so that the Net
Revenues of the MAC taking into account the Revenue Sharing for such Fiscal
Year will not be less than 1.25x of the total Debt Service of MAC for such
Fiscal Year.  In the event that the
Revenue Sharing is reduced in any Fiscal Year by any amount (the “Deferred
Revenue Sharing Amount”) as a result of the operation of this Article VI.
(Alternate), MAC will accrue the Deferred Revenue Sharing Amount and credit
such amount to the Signatory Airlines in the subsequent Fiscal Year (or, if
such amount may not be credited in accordance with this Article VI.
(Alternate) in such subsequent Fiscal Year, then such amount will be credited
in the next succeeding Fiscal Year in which such credit may be issued in
accordance with this Article VI. (Alternate); and

 

5.                                       The rights of
any Signatory Airline to any payment, credit or application of Revenue Sharing
to or for the benefit of such Signatory Airline is a contract right, in
existence and effective as of January 1, 2006 (subject to Section XII
of the Amended and Restated Third Amendment), and any such payment, credit or
application actually made is proceeds thereof.

 

19

 

J.             Reversion to Pre-Existing
Rate Structure

 

Notwithstanding
anything in the Lease or any other agreement between MAC and AIRLINE, in the
event AIRLINE is not in compliance with any payment obligation under any
agreement with the MAC during the period following any applicable notice and
cure period under such agreement and continuing until payment of any such
amounts (the “Payment Default Period”), MAC will have the right, upon written
notice to AIRLINE (provided that, if AIRLINE is in bankruptcy, no notice shall
be required for the effectiveness of MAC’s exercise of such right, in each case
so long as AIRLINE is invoiced by MAC for the amounts payable pursuant to the
Pre-Existing Rate Structure and all such invoices reference the additional
amounts due as a result of such payment default and set forth the applicable
rates that are then in effect as a result of such payment default), to: (i) have
AIRLINE’s payment obligations under the Lease during the Payment Default Period
revert to the Pre-Existing Rate Structure, and (ii) apply the amount of
any Rate Differential (as defined in Article XII hereof) for AIRLINE
during such period and the amount of any accrued and unpaid Revenue Sharing
credits (if any) otherwise due to AIRLINE pursuant to Article VI.
(Alternate) for the Payment Default Period against any amounts owed by AIRLINE
to MAC to the extent necessary to cure such payment defaults; provided that,
with respect to AIRLINE, the MAC shall not have the rights set forth in this Article VI(Alternate).J
with respect to (i) any obligations of AIRLINE under any existing
agreements that are rejected by AIRLINE in the 2005 Bankruptcy Case, which
rejected existing agreements shall not include any of the Assumed Agreements, (ii) any
obligations of AIRLINE relating to the MSP 2001/2005 special facilities bonds
or the related special facilities lease; and (iii) any obligations of
AIRLINE under any agreement between AIRLINE and a party other than MAC.

 

A
revised Exhibit N to the Lease has been attached hereto as Exhibit 3.

 

IX.           MAJORITY-IN-INTEREST
WAIVER

 

Article VII.
of the Lease as amended via the First Amendment dated March 29, 2002 is
hereby deleted in its entirety and replaced with the following Article VII.E.:

 

E.             MAJORITY-IN-INTEREST
WAIVER

 

Beginning in January 1,
2010, AIRLINE agrees that MAC may include in its capital improvement program up
to $50 million per year (in 2001 dollars) for miscellaneous Capital Projects (“Contingency
Projects”) as determined by MAC. 
Notwithstanding any other provision of this Agreement, these Contingency
Projects may include at MAC’s discretion projects to be included in the
Airfield Cost Center, and this Agreement shall be deemed to be AIRLINE’S
approval (if required) of any such Capital Project without any requirement for
Majority-In-Interest review.

 

X.            BANKRUPTCY

 

Article XI.E.
“Bankruptcy” of the Lease is amended to add the following subsection E.6:

 

6.                                       In addition to
the other rights of MAC hereunder, to the extent necessary, to effect its
rights under Article VI (Alternate).J. of the Lease in any future
bankruptcy involving AIRLINE pursuant to the doctrines of setoff and/or
recoupment.

 

20

 

XI.           HUB
AND HEADQUARTERS COVENANTS

 

The
Lease is amended to add the following language as Article XVII “Hub and
Headquarters Covenants”:

 

XVII.                    Hub and
Headquarters Covenants

 

AIRLINE
hereby covenants and agrees to maintain its Headquarters in the Minneapolis-St.
Paul metropolitan area and to maintain a Hub at the Airport.  As the sole remedy for breach of either such
covenant and, solely with respect to the Hub covenant, subject to the force
majeure exception set forth below, Revenue Sharing will be eliminated in any
year in which AIRLINE violates either the Headquarters or Hub covenant (and, in
the event any such violation continues for three (3) consecutive years, or
either such covenant is determined to be unenforceable, AIRLINE’s Revenue
Sharing will be eliminated permanently).

 

Force
majeure. Notwithstanding the foregoing, AIRLINE shall not be deemed to be in
default of the Hub covenant if it is prevented from performing any of its
obligations contained in the Hub covenant by reason of strikes, boycotts, labor
disputes, embargoes, shortages of energy or materials, acts of the public
enemy, prolonged unseasonable weather conditions and results of acts of nature,
riots, rebellion, or sabotage, despite AIRLINE’s best efforts to comply.  No force majeure provision shall apply to the
Headquarters covenant.

 

XII.         AMENDMENT EFFECTIVE DATE AND
CONDITIONS

 

The
amended rate structures and changes in rate methodology (the “Rate Changes”)
and the Revenue Sharing (the Revenue Sharing together with the Rate Changes,
shall be called the “Savings”) set forth in Sections VII and VIII of this
Amended and Restated Third Amendment shall be effective commencing January 1,
2006 and shall continue through the term of each Airline’s Airline Operating
Agreement and Terminal Building Lease, subject to the terms and conditions
thereof.  However, MAC and AIRLINE hereby
acknowledge and agree that receipt of any credits for the Savings under this
Amended and Restated Third Amendment is expressly conditioned upon the entry of
an order in the 2005 Bankruptcy Case (which would include an order confirming a
plan of reorganization and which shall contain the provisions regarding
effectiveness set forth herein) (the “Assumption Order”) not later than September 30,
2007 approving the assumption by AIRLINE of the executory agreements relating
to GO15, GO13, the Lease, and the other leases and executory agreements between
AIRLINE and MAC set forth on Exhibit 4 hereto (the “Assumed Agreements”).  The Assumption Order shall provide that the
effectiveness of the assumption of the Assumed Agreements is conditioned upon
the approval by all of the Signatory Airlines of this Amended and Restated
Third Amendment or the 2007A Amendment to Airline Operating Agreement and
Terminal Building Lease (the “2007A Amendment,” attached hereto as Exhibit 6)
as an amendment to each Signatory Airline’s Airline Operating Agreement and
Terminal Building Lease.  Within thirty
(30) days after the later to occur of (i) the entry of the Assumption
Order and (ii) approval by all of the Signatory Airlines of this Amended
and Restated Third Amendment or the 2007A Amendment and any other documents
implementing the Savings (the “Amendment Effective Date”), MAC will (A) issue
a check to (i) each Signatory Airline in an amount equal to the difference
between the rates and charges calculated under the pre-existing Airline
Operating Agreement and Terminal Building Lease with each Signatory Airline,
without taking into account the changes set forth in this Amended and Restated
Third Amendment (“Pre-Existing Rate Structure”), and such rates and charges
calculated taking into account the Rate Changes and other revisions to the
Airline Operating Agreement and Terminal Building Lease with each Signatory
Airline that are set forth in this Amended and Restated Third Amendment (“Amended
Rate Structure”, with such difference between the Pre-Existing Rate Structure
and the Amended Rate Structure, the “Rate Differential”) for the period
commencing January 1, 2006 through the Amendment Effective Date, (ii) each
Signatory Airline for the amount of the Revenue Sharing for 2006 and any
succeeding calendar year ending prior to the Amendment Effective Date, with
such credit issued upon the completion of the certified independent audits
report

 

21

 

for such year, and (iii) each Signatory Airline for interest on
the credit amounts referenced in clauses (i) and (ii) of this
sentence at MAC’s actual earned overnight interest rate (“Applicable Interest
Rate”) from the period commencing on February 12, 2007 (but in the case of
2006 Revenue Sharing, not earlier than the completion of the comprehensive
annual financial report for 2006) (“Interest Commencement Date”) through the
date of the issuance of such credits, and (B) implement the terms of the
Amended and Restated Third Amendment as of the Amendment Effective Date.

 

Notwithstanding the foregoing provisions of this Section XII, the
credits described in the immediately preceding paragraph shall not be issued to
AIRLINE, AIRLINE will continue to pay its Lease obligations under the
Pre-Existing Rate Structure and AIRLINE will not receive any credits relating
to the Revenue Sharing, until the 30th day after the date an order entered by
the 2005 Bankruptcy Case becomes a final order approving a plan of reorganization
and only if no Impairment (as defined in Section 4(e) of the MOU) has
occurred (“AIRLINE Effective Date”). From the Amendment Effective Date to the
AIRLINE Effective Date, AIRLINE’s Rate Differential and any credits relating to
the Revenue Sharing will continue to accrue during such period and shall earn
interest at the Applicable Rate commencing from the Interest Commencement Date.
Upon the AIRLINE Effective Date, MAC will issue to AIRLINE a credit for the
amounts accrued under this Section XII together with interest as provided
herein. In the event that the Assumption Order is not entered in the 2005
Bankruptcy Case on or before September 30, 2007, MAC shall have the right
to elect to terminate this Amended and Restated Third Amendment, in which case
MAC shall retain all of the credits and interest, and continue to calculate
rates and charges in accordance with the Pre-Existing Rate Structure (and in
the event MAC so elects, the provisions added to the Lease pursuant to the
Amended and Restated Third Amendment pending the occurrence of the Amendment
Effective Date shall be deemed deleted and withdrawn and of no force and
effect).

 

XIII.        2007B AMENDMENT

 

In addition to the 2007A Amendment, MAC shall offer to the Signatory
Airlines a 2007B Amendment, which shall, among other things, offer to extend
the term of other Signatory Airline Leases until December 31, 2020 in
exchange for certain Airlines agreeing that any time after July 1, 2010,
MAC may give Airline notice of MAC’s intention to terminate the lease of all of
such Airline’s Leased Premises in the Lindbergh Terminal and to amend the Lease
to add alternate premises in the Humphrey Terminal. MAC shall provide alternate
premises to Airline at the Humphrey Terminal and will consult with Airline
throughout the design and planning process. In exchange for this agreement, MAC
will reimburse Airline for all necessary and reasonable relocation expenses,
subject to advance written approval of such relocation estimate.

 

MAC’s offer of the 2007B Amendment to the Signatory Airlines shall
terminate effective September 30, 2007.

 

XIV.        SURVIVAL
OF INDEMNIFICATION

 

The provisions of Article VII (INDEMNIFICATION) of the Special
Facilities Lease between MAC and AIRLINE, dated as of June 1, 2001, except
for subsection (a) of such Section (“Surviving Indemnifications”),
shall survive the confirmation of any plan of reorganization for AIRLINE and
its related entities (“Plan”) and claims under the Surviving
Indemnifications shall not be disallowed solely by reason of Bankruptcy Code
sections 502(b)(9) and (c) or the bar date. Any claims by MAC under
the Surviving Indemnifications (“Surviving Indemnification Claims”) will
be treated and paid as general unsecured claims. If any Surviving
Indemnification Claims are allowed after any distribution has been made to
general unsecured creditors, MAC will receive (on the distribution date
following the allowance of any such Surviving Indemnification Claim) the
consideration and of the value that would have been distributed with respect to
such allowed Surviving Indemnification Claims if they had been allowed at the
time any such previous distributions had been made, or, at

 

22

 

AIRLINE’s election, cash in an amount equal to the value of such
consideration on the date it would have been distributed to MAC. AIRLINE or its
related entities will not contest the validity or enforceability of the
Surviving Indemnifications (except as enforceability may be limited by
bankruptcy, insolvency or any other proceeding affecting creditors’ rights
generally (including AIRLINE’s current proceeding, but excluding this Amended
and Restated Third Amendment)). The provisions of this Section XIV shall
be binding on any trustee that may be appointed in the AIRLINE bankruptcy case
and shall remain binding without regard to any determination in the adversary
proceeding brought by AIRLINE seeking, among other things, recharacterization
of the 2001/2005 Special Facilities Bonds, and without regard to any rejection,
termination or modification of the Special Facilities Lease. Any dispute as to
the allowed amount of any Surviving Indemnification Claims shall be determined
in the manner provided in the Plan for determining disputes as to the allowed
amount of general unsecured claims of the amount claimed by MAC, or, if no such
manner is prescribed, in the manner determined by the court having jurisdiction
of AIRLINE’s bankruptcy case at the time MAC makes its first Surviving
Indemnification Claims.

 

XV.         COOPERATION

 

AIRLINE agrees to cooperate with MAC, including participation in
mediation or requests for approval from FAA, in attempting to resolve the
current noise litigation venued in Hennepin County District Court.

 

 

The remainder of this page has been
intentionally left blank.

 

23

 

IN WITNESS WHEREOF, the parties have
signed and executed this Amendment in duplicate the day and year first below
written.

 

	
   

  	
  METROPOLITAN AIRPORTS COMMISSION

  
	
   

  	
   

  
	
  Date:                   ,
  2007

  	
  By:

  	
     /s/ Jeffrey W. Hamiel

  
	
   

  	
   

  	
     Jeffrey W. Hamiel, Executive Director

  
	
   

  	
   

  
	
   

  	
  NORTHWEST AIRLINES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:                   ,
  2007

  	
  By:

  	
     /s/ Barry J. Hofer

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
     Vice President – Facilities and Airport Affairs

  
	
   

  	
   

  	
   

  
	
  STATE OF MINNESOTA

  	
  )

  	
   

  
	
   

  	
  ) ss.

  	
   

  
	
  COUNTY OF
  HENNEPIN

  	
  )

  	
   

  
						

 

 

This instrument was acknowledged before me on
the      day of           , 2007, Jeffrey W. Hamiel, the
Executive Director of the Metropolitan Airports Commission on behalf of the
Commission.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF MINNESOTA

  	
  )

  	
   

  
	
   

  	
  ) ss.

  	
   

  
	
  COUNTY OF

  	
  )

  	
   

  

 

This instrument was acknowledged before me on
the               day
of                               ,
2007,

By                  ,
the                                         of
Northwest Airlines, Inc.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

24

 

EXHIBIT 1

 

AIRLINE OPERATING AGREEMENT AND TERMINAL
BUILDING LEASE AND AMENDMENTS

 

	
  Agreement/Amendment

  	
   

  	
  Effective
  Date

  
	
   

  	
   

  	
   

  
	
  Airline Operating Agreement and Terminal Building Lease

  	
   

  	
  January 1, 1999

  
	
   

  	
   

  	
   

  
	
  First Amendment

  	
   

  	
  March 29, 2002

  
	
   

  	
   

  	
   

  
	
  Second Amendment

  	
   

  	
  November 15, 2004

  

 

25

 

EXHIBIT 2

 

LIST OF MAC BOND OBLIGATIONS

 

Current Outstanding Debt

 

General Obligation Revenue Bonds

 

	
   

  	
  Series 13

  	
  (2015)

  
	
   

  	
  Series 14

  	
  (2011)

  
	
   

  	
  Series 15

  	
  (2022)

  

 

General Airport Revenue Bonds

 

	
   

  	
  Series 1998B Sr

  	
  (2016)

  
	
   

  	
  Series 1999B Sr

  	
  (2022)

  
	
   

  	
  Series 2000B Sr

  	
  (2021)

  
	
   

  	
  Series 2001B Sr

  	
  (2024)

  
	
   

  	
  Series 2007A Sr

  	
  (2032)

  
	
   

  	
  Series 2001D Sub

  	
  (2016)

  
	
   

  	
  Series 2003A Sub

  	
  (2031)

  
	
   

  	
  Series 2004A Sub

  	
  (2031)

  
	
   

  	
  Series 2005A Sub

  	
  (2035)

  
	
   

  	
  Series 2005B Sub

  	
  (2026)

  
	
   

  	
  Series 2005C Sub

  	
  (2032)

  
	
   

  	
  Series 2007B Sub

  	
  (2032)

  

 

Commercial Paper

 

	
   

  	
  Series A

  
	
   

  	
  Series B

  
	
   

  	
  Series C

  
	
   

  	
  Series D

  

 

Notes Payable – Equipment Leasing

 

	
   

  	
  2003 Financing

  	
  (2008)

  
	
   

  	
  2004 Financing

  	
  (2009)

  

 

Other Notes Payable/Financing Leases

 

26

 

EXHIBIT 3 - REVISED EXHIBIT N

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for
Rents, Fees and Charges

Calculation of Landing Fee Rates

 

	
  Article

  Reference

  	
   

  	
   

  	
   

  	
  200x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.C.1.

  	
   

  	
  Direct Operation and Maintenance Expense
  (Includes Control Tower, Noise Abatement & Operations)

  	
   

  	
  $

  	
  8,500,000

  	
   

  
	
   

  	
   

  	
  Indirect Operation and Maintenance Expense

  	
   

  	
  16,500,000

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Debt Service

  	
   

  	
  7,000,000

  	
   

  
	
   

  	
   

  	
  Runway 17/35 Deferral

  	
   

  	
  79,535

  	
   

  
	
   

  	
   

  	
  Capital Outlays/Deposit to Rehab &
  Replacement Fund

  	
   

  	
  10,200,000

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Cost of Capital
  Outlays/Leases (Original)

  	
   

  	
  1,500,000

  	
   

  
	
   

  	
   

  	
  Fine, Assessment, Judgment or Settlement

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Debt Service Reserve Fund Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Operation Reserve Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Coverage Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Airfield Cost

  	
   

  	
  $

  	
  40,479,535

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1C.2.

  	
   

  	
  Service Fees
  (Military)

  	
   

  	
  $

  	
  150,000

  	
   

  
	
   

  	
   

  	
  General Aviation Landing Fees

  	
   

  	
  880,000

  	
   

  
	
   

  	
   

  	
  Nonsignatory Landing Fees (HHH and
  Commuter)

  	
   

  	
  720,000

  	
   

  
	
   

  	
   

  	
  Off-Airport Aircraft Noise Costs

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Projects Rejected by MII of Signatory
  Airlines

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Adjustments

  	
   

  	
  $

  	
  1,750,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Net Airfield Cost

  	
   

  	
  $

  	
  38,729,535

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.C.3.

  	
   

  	
  Total
  Landed Weight of Signatory Airlines (1,000-lb. Units)

  	
   

  	
  23,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Landing Fee Rate per 1,000 lbs.

  	
   

  	
  $

  	
  1.648

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

27

 

EXHIBIT 3 - REVISED EXHIBIT N

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for
Rents, Fees and Charges

Calculation of Terminal Apron Rates

 

	
  Article

  Reference

  	
   

  	
   

  	
   

  	
  200x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.E.1.

  	
   

  	
  Direct
  Operation and Maintenance Expense

  	
   

  	
  $

  	
  210,000

  	
   

  
	
   

  	
   

  	
  Indirect Operation and Maintenance Expense

  	
   

  	
  3,500,000

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Debt Service

  	
   

  	
  10,000

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Cost of Capital
  Outlays/Lease

  	
   

  	
  500,000

  	
   

  
	
   

  	
   

  	
  Capital Outlays/Deposit to Rehab &
  Replacement Fund

  	
   

  	
  600,000

  	
   

  
	
   

  	
   

  	
  Concourse A & B Ramp Deferral
  Recovery

  	
   

  	
  159,950

  	
   

  
	
   

  	
   

  	
  Debt Service Reserve Fund Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Operation Reserve Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Coverage Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Terminal Apron Cost

  	
   

  	
  $

  	
  4,979,950

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.E.2.

  	
   

  	
  Total Lineal
  Feet of Terminal Apron

  (Excluding Terminal A & B Ramp)

  	
  9,971

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal A Apron Lineal Feet

  	
  1,253

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal B Apron Lineal Feet

  	
  1,409

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.E.3.

  	
   

  	
  Total
  Terminal A & B Apron

  	
  2,662

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal A & B Apron @ 1⁄2

  	
  1,331

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Chargeable Terminal Apron Lineal Feet

  	
   

  	
  11,302

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal Rate Per Lineal Foot

  	
   

  	
  $

  	
  440.626

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
												

 

28

 

EXHIBIT 3 - REVISED EXHIBIT N

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Terminal Building Rental Rate (Janitored and Unjanitored
Space)

 

	
  Article

  Reference

  	
   

  	
   

  	
   

  	
  200x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.G1.a.

  	
   

  	
  Unjanitored Space Rate
  Calculation

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct Operation and Maintenance Expense (Includes Energy Management Center)

  	
   

  	
  $

  	
  21,490,000

  	
   

  
	
   

  	
   

  	
  Indirect Operation and Maintenance Expense

  	
   

  	
  9,000,000

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Debt Service

  	
   

  	
  21,700,000

  	
   

  
	
   

  	
   

  	
  Terminal A-D Deferral Recovery

  	
   

  	
  2,910,537

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Cost of Capital Outlays/Leases

  	
   

  	
  500,000

  	
   

  
	
   

  	
   

  	
  Debt Service Reserve Fund Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Operation Reserve Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Coverage Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Total Terminal Building Cost

  	
   

  	
  $

  	
  55,600,537

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less:

  	
   

  	
   

  	
   

  
	
  V1.G1.b.

  	
   

  	
  Steam and Chilled Water
  Reimbursement (G Concourse)

  	
   

  	
  $

  	
  940,000

  	
   

  
	
   

  	
   

  	
  Carrousel and Conveyor Costs

  	
   

  	
  220,000

  	
   

  
	
   

  	
   

  	
  Ground Power

  	
   

  	
  390,000

  	
   

  
	
   

  	
   

  	
  Loading Dock

  	
   

  	
  2,265,000

  	
   

  
	
   

  	
   

  	
  Consortium Utilities

  	
   

  	
  440,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Adjustments

  	
   

  	
  $

  	
  4,255,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Net Terminal Building Cost

  	
   

  	
  $

  	
  51,345,537

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.G.1.c.

  	
   

  	
  Total Rentable Space

  	
   

  	
  $

  	
  1,088,393

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal Building Rental Rate per Square Foot
  for Unjanitored Space

  	
   

  	
  $

  	
  47.176

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal Airlines R & R Fund Surcharge
  Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Capital Outlays/Deposit to Rehab & Replacement Fund

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
   

  	
   

  	
  Weighted Average Airline Rentable Space (Janitored and Unjanitored)

  	
   

  	
  570,000

  	
   

  
	
   

  	
   

  	
  Surcharge Amount

  	
   

  	
  $

  	
  10.526

  	
   

  

 

29

 

EXHIBIT 3 - REVISED EXHIBIT N

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Terminal Building Rental Rate (Janitored and Unjanitored
Space)

 

	
   

  	
   

  	
  Janitored Space Rate Calculation

  	
   

  	
   

  	
   

  
	
  V1.G.2.

  	
   

  	
  Total Direct Janitored
  Operation and Maintenance Expenses

  	
   

  	
  $

  	
  5,800,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Janitored Space /1

  	
   

  	
  975,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Janitored Rate per Square Foot

  	
   

  	
  $

  	
  5.949

  	
   

  
	
   

  	
   

  	
  Terminal Building Rental Rate per Square Foot for Unjanitored Space
  (Above)

  	
   

  	
  $

  	
  47.176

  	
   

  
	
   

  	
   

  	
  Terminal Building Rental Rate per Square Foot for Janitored Space

  	
   

  	
  $

  	
  53.125

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /1 Excludes MAC and mechanical space.

  	
   

  	
   

  	
   

  

 

30

 

EXHIBIT 3 - REVISED EXHIBIT N

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Carrousel and Conveyor Charge

 

	
  Article

  Reference

  	
   

  	
   

  	
   

  	
  200x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.H.1.

  	
   

  	
  Direct and Indirect
  Maintenance Depreciation Charges

  	
   

  	
  $

  	
  250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Debt
  Service

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct and Indirect Cost
  of Capital Outlays/Leases

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  250,000

  	
   

  

 

31

 

EXHIBIT 3 - REVISED EXHIBIT N

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Airline Cost Per Enplaned Passenger

 

	
   

  	
   

  	
  Actual

  200x

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Landing Fees-Signatory

  	
   

  	
  $

  	
  36,000,000

  	
   

  
	
  Landing Fees-HHH Nonsignatory

  	
   

  	
  70,000

  	
   

  
	
  Landing Fees-Commuter Nonsignatory

  	
   

  	
  650,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ramp Fees-Signatory

  	
   

  	
  4,410,000

  	
   

  
	
  Ramp Fees-HHH Nonsignatory

  	
   

  	
  15,000

  	
   

  
	
  Ramp Fees-Commuter Nonsignatory

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Terminal Building

  	
   

  	
  33,920,000

  	
   

  
	
  IAF Charges

  	
   

  	
  2,850,000

  	
   

  
	
  Carrousels & Conveyors

  	
   

  	
  205,000

  	
   

  
	
  Old Portion of G Concourse

  	
   

  	
  421,000

  	
   

  
	
  Lobby Fees

  	
   

  	
  6,210,000

  	
   

  
	
  FIS Surcharge

  	
   

  	
  880,000

  	
   

  
	
  HHH Terminal Building Rent

  	
   

  	
  640,000

  	
   

  
	
  Concessions Rebate

  	
   

  	
  (9,100,000

  	
  )

  
	
  Apron Fees - HH Terminal

  	
   

  	
  500,000

  	
   

  
	
  Apron Fees - Commuter

  	
   

  	
  —

  	
   

  
	
  Police/Fire/Admin. - G Concourse

  	
   

  	
  700,000

  	
   

  
	
  Steam/Chilled Water - G Concourse

  	
   

  	
  900,000

  	
   

  
	
  Janitorial - G Concourse

  	
   

  	
  700,000

  	
   

  
	
  Self-Liquidating - C/G Concourse

  	
   

  	
  1,592,000

  	
   

  
	
  Total Costs

  	
   

  	
  $

  	
  81,563,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Enplaned Passengers

  	
   

  	
  17,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Airline Cost Per Enplaned Passenger

  	
   

  	
  $

  	
  4.798

  	
   

  

 

32

 

EXHIBIT 4

 

ASSUMED AGREEMENTS

 

NWA Assumption of Agreements and Survival of Obligations

 

1.                                       All Executory
contracts that were entered into in connection with the GO15 and GO13 Bonds,
excluding adequate protection stipulations

 

2.                                       All other
obligations and agreements related to the GO 15 and GO 13 Bonds including but
not limited to all guaranties, security agreements, mortgages and other
documents shall remain unimpaired and fully enforceable following assumption of
the GO 15 and GO 13 executory contracts

 

3.                                       Airline
Operating Agreement and Terminal Building Lease dated as of January 1,
1999 (as amended)

 

4.                                       Main Base
Agreement dated as of March 5, 1956 as amended (a.k.a. Building B Lease)

 

5.                                       Republic
Airlines, Inc. Main Base Lease and Agreement dated as of December 19,
1966 as amended (a.k.a. Building C Lease)

 

6.                                       Lease Agreement
dated as of October 6, 1969 as amended (a.k.a. Building F Lease)

 

7.                                       Runway 12R
De-Icing Operations Center Site Agreement dated as of December 2003

 

8.                                       Runway 30R
De-Icing Operations Center Agreement dated as November 2001

 

9.                                       Deicing
Operations Center Agreement dated as of April 1998 as amended (a.k.a. 12L
Deicing Operations Center Lease)

 

10.                                 Runway 17/35 Glycol
Reclamation Facility Agreement dated as of August 2004.

 

11.                                 Lease and Fuel Agreement as
Restated and Amended for Aviation Fuel Facilities dated February 1, 2005.

 

33

 

EXHIBIT 5

 

EXHIBIT V

 

34

 

2007A AMENDMENT TO

 

AIRLINE OPERATING AGREEMENT AND TERMINAL BUILDING LEASE

 

MINNEAPOLIS-ST. PAUL
INTERNATIONAL AIRPORT

 

This
2007A Amendment to Airline Operating Agreement and Terminal Building Lease
(hereinafter “2007A Amendment” or “Amendment”) is entered into as of the
                
day of
                                      
2007, by and between the Metropolitan Airports Commission, a public corporation
under the laws of the State of Minnesota (hereinafter sometimes referred to as “MAC”
or “Commission”), and
                                              ,
a corporation organized and existing under the laws of
                                    
and authorized to do business in the State of Minnesota (hereinafter referred
to as “AIRLINE”).

 

WHEREAS,
MAC and AIRLINE entered into an Airline Operating Agreement and Terminal Building
Lease effective January 1, 1999 and amended such agreement as shown on Exhibit 1
(collectively, “Lease”); and

 

WHEREAS,
NWA, Inc. (“NWA”), Northwest Aerospace Training Corporation (“NATCO”), and
Northwest Airlines, Inc. (“NAI”), (collectively the “Northwest Entities”)
and MAC are parties to a series of agreements and documents with respect to the
Minneapolis-St. Paul Metropolitan Airports Commission General Obligation
Revenue Refunding Bonds, Series 15 (all such agreements, guaranties,
security documents and other documents shall be collectively referred to as the
“GO 15 Documents”); and

 

WHEREAS,  the Northwest Entities filed a petition under
Chapter 11 of Title 11 of the United States Code on September 14, 2005
which case is pending in the United States Bankruptcy Court for the Southern
District of New York in an administratively consolidated case entitled In re
Northwest Airlines Corporation et al., 
Case No. 05-17930(ALG) (“2005 Bankruptcy Case”); and

 

WHEREAS,
as part of its reorganization in the 2005 Bankruptcy Case, NAI, on behalf of
AIRLINE and other Signatory Airlines, and MAC negotiated a comprehensive
resolution of various lease and debt issues between them as set forth in a
Memorandum of Understanding executed by NAI on February 12, 2007 and by
MAC on February 19, 2007 (“MOU”). 
As part of such comprehensive agreement documented in the MOU, NAI
requested that, and MAC agreed to, make significant changes to the existing
Airline Operating Agreement and Terminal Building Leases between the MAC and each
Signatory Airline, including AIRLINE’s Lease, and that would provide
substantial reductions in rates and charges payable by each Signatory Airline,
including AIRLINE, and requiring that MAC share revenue generated from various
sources at the Airport with such airlines; and

 

WHEREAS,
as part of such comprehensive agreement, MAC has agreed to amend the existing
Airlines Operating Agreement and Terminal Building Leases between the MAC and
each Signatory Airline, including AIRLINE’s Lease on terms and conditions set
forth herein, provided that  (i) each
Signatory Airline shall be entitled to the reduction of rates and charges and
the revenue sharing to be provided by the MAC hereunder only to the extent that
such airline remains in compliance with all of its obligations to the MAC, and (ii) the
Northwest Entities agree that their plan of reorganization will provide that
the Northwest Entities will continue to fully perform all obligations under the
GO 15 Documents with all such obligations remaining unimpaired; and

 

WHEREAS,
the Amendment evidenced hereby and the protections described above are an
essential part of the comprehensive resolution and are fundamental to the
Agreement contained in the MOU; and

 

35

 

WHEREAS,
implementation of this 2007A Amendment is conditioned on approval by all
Signatory Airlines as part of the 2005 Bankruptcy Case.

 

NOW
THEREFORE, in consideration of the foregoing, the parties agree to amend the
Lease as follows:

 

I.              INCORPORATION
OF AIRLINE OPERATING AGREEMENT AND TERMINAL BUILDING LEASE

 

Except
as set forth in this 2007A Amendment, the Lease shall remain in full force and
effect.  In the event of a conflict
between this 2007A Amendment and the Lease, the provisions of this 2007A Amendment
shall control.

 

II.            DEFINITIONS

 

All
capitalized terms used in this 2007A Amendment but not defined herein shall
have the meanings given them in the Lease. 
The following terms, as used herein and in the Lease shall have the
meanings set forth below and, to the extent any such term was defined in the
Lease, the definition contained in the Lease shall be deleted and replaced with
the definition for such term set forth below:

 

A.                                   “2005
Bankruptcy Case” means that certain administratively consolidated case pending
in the United States Bankruptcy Court for the Southern District of New York
entitled In re Northwest Airlines Corporation et al, Case No. 05-17930
(ALG) commenced pursuant to a petition filed by NAI and affiliates under
Chapter 11 of Title 11 of the United States Code on September 14, 2005.

 

B.                                     “Affiliated
Airline” means an Airline other than Airline that (a) operates aircraft
of  76 passenger seats or less at the
Airport and is party to a code share agreement with AIRLINE applicable to such Airline’s
flights to and from the Airport, (b) has signed an Airline Operating
Agreement and Terminal Building Lease similar to the form of this Agreement, (c) is
party to an Airline Services Agreement with AIRLINE and (d) has been
designated in writing by AIRLINE as an “affiliate” of AIRLINE.

 

C.                                     “Airline Rented
Space” means the aggregate of that portion of Rentable Space under lease to all
Signatory Airlines.

 

D.                                    “Airline
Services Agreement” means any agreement between AIRLINE and any regional air
carrier pursuant to which such air carrier provides air transportation services
for AIRLINE under AIRLINE’s designator code.

 

E.                                      “Amendment
Effective Date” shall have the meaning ascribed to such term in Section IX
of this 2007A Amendment.

 

F.                                      “Annual Gross
Revenue” means rent, concessions fees or similar charges actually received
during any Fiscal Year by MAC from Selected Concessions.  Annual Gross Revenue shall not include sales
taxes, utility fees, consortium fees, key money, customer facilities charges or
other similar “pass through” charges.

 

G.                                     “Auto Rental
Concessions” means all auto rental companies or other business organizations
operating at either the Lindbergh or Humphrey Terminals pursuant to concessions
agreements with MAC.

 

H.                                    “Assumed
Agreements” shall have the meaning given to the term in Section IX of the
2007A Amendment.

 

36

 

I.                                         “Debt Service”
means the aggregate amount of principal and interest payments made by MAC that
are due and payable during the Fiscal Year on MAC financings  including but not limited to all future and
existing general obligation revenue bonds, airport revenue bonds, refunding
obligations, commercial paper (excluding the principal amount of commercial
paper reissued during the Fiscal Year) and other debt instruments of the
Commission and specifically including, but not limited to, those obligations
specifically included on Exhibit 2 attached hereto.  In addition, debt service shall also include:

 

(i)            amounts paid as
prepayment of obligations, if such prepayment is deemed approved by a
Majority-In-Interest of Signatory Airlines pursuant to the provisions of Article VII.B.
hereof,

 

                                                Or

 

(ii)           principal and
interest in accordance with its original scheduled amortization for any prepayment
made by MAC which is not deemed approved by the Majority-In-Interest of
Signatory Airlines in accordance with (i) above, until such time as the
original principal amount of such prepaid obligation has been recovered by MAC.

 

J.                                        “Deferred
Revenue Sharing Amount” shall have the meaning given to the term in Section VII.I.4
of this 2007A Amendment.

 

K.                                    “Food and
Beverage Concessions” means companies or other business organizations that sell
consumable food or beverages items, excluding vending operations, to the
traveling public at the Lindbergh (excluding sales from the G Concourse) or
Humphrey Terminals, pursuant to concessions agreements with MAC.

 

L.                                      “GO13” means
the Minneapolis-St. Paul Airports Commission Taxable General Obligation Revenue
Bonds, Series 13, outstanding from time to time.

 

M.                                 “GO15” means
the Minneapolis-St. Paul Metropolitan Airports Commission Taxable General
Obligation Revenue Refunding Bonds, Series 15, outstanding from time to
time.

 

N.                                    “Humphrey
Terminal Repair and Replacement Surcharge” shall be equal to nine percent (9%)
of the Repair and Replacement Amount. 
This allocation shall be adjusted every five years based on increases to
the cost center’s book value.

 

O.                                    “Lindbergh
Terminal Repair and Replacement Surcharge” shall be equal to nineteen percent
(19%) of the Repair and Replacement Amount divided by Airline Rented
Space.  This allocation shall be adjusted
every five years based on increases to the cost center’s book value.

 

P.                                      “Landing Fee
Repair and Replacement Amount” shall be equal to sixty-eight percent (68%) of
the Repair and Replacement Amount.  This
allocation shall be adjusted every five years based on increases to the cost
center’s book value.

 

Q.                                    “Merchandise
Concessions” means companies or other business organizations that sell retail
or news products, excluding automated vending items, to the traveling public at
the Lindbergh (excluding sales from the G Concourse) or Humphrey Terminals,
pursuant to concessions agreements with MAC.

 

R.                                     “Net Revenues”
has the meaning provided for in the Trust Indenture.

 

37

 

S.                                      “Repair and
Replacement Amount” means a $15 million deposit for Fiscal Year 2006, and
increased by three percent (3%) per annum for each Fiscal Year thereafter
compounded annually (i.e., $15.45 million in Fiscal Year 2007, $15.91 million
in Fiscal Year 2008, etc.) to a Repair and Replacement subaccount within the
construction fund to be expended for major maintenance and minor (less than $2
million) capital projects, except for automobile parking facilities and
roadways.

 

T.                                     “Selected
Concessions” means Food and Beverage Concessions, Merchandise Concessions, and
Auto Rental Concessions.

 

U.                                    “Selected
Concessions Revenues Escalation Factor” means the following annual percentage
escalation factors (compounded) to be applied to the dollar thresholds provided
in Section VII.I.1.:

 

	
  Year

  	
   

  	
  Annual Escalation Factor

  	
   

  
	
  2006

  	
   

  	
  Base Year

  	
   

  
	
  2007

  	
   

  	
  1.77

  	
  %

  
	
  2008

  	
   

  	
  4.75

  	
  %

  
	
  2009

  	
   

  	
  4.47

  	
  %

  
	
  2010

  	
   

  	
  4.46

  	
  %

  
	
  2011

  	
   

  	
  4.20

  	
  %

  
	
  2012

  	
   

  	
  4.73

  	
  %

  
	
  2013

  	
   

  	
  4.46

  	
  %

  
	
  2014

  	
   

  	
  4.47

  	
  %

  
	
  2015

  	
   

  	
  4.46

  	
  %

  
	
  2016

  	
   

  	
  4.46

  	
  %

  
	
  2017

  	
   

  	
  4.46

  	
  %

  
	
  2018

  	
   

  	
  4.47

  	
  %

  
	
  2019

  	
   

  	
  4.47

  	
  %

  
	
  2020

  	
   

  	
  4.47

  	
  %

  

 

V.                                     “Terminal Apron”
and “Terminal Ramp” shall be interchangeable terms and both terms shall mean
the airport parking apron as shown on Exhibit D to the Lease, together
with any additions and/or changes thereto.

 

W.                                “Terminal Apron
Repair and Replacement Amount” shall be equal to four percent (4%) of the
Repair and Replacement Amount.  This
allocation shall be adjusted every five years based on increases to the cost
center’s book value.

 

III.                                 USE
OF THE INTERNATIONAL ARRIVALS FACILITY

 

Article III.C
“Use of the International Arrivals Facility” shall be deleted in its entirety
and replaced  with the following:

 

C.                                     Use of the
International Arrivals Facility

 

MAC will control prioritization and utilization of the IAF and
associated gates for international arrivals by Airlines providing International
Regularly Scheduled Airline Service and may develop prioritization procedures
not inconsistent with the terms of this Agreement. The provisions in this Section C.
shall continue through December 31, 2020.

 

38

 

1.                                       In order to use
the International Arrivals Facility, AIRLINE must maintain its status as
International Regularly Scheduled Airline Service. AIRLINE shall provide MAC a
detailed written certification for each numbered element on Exhibit H,
upon MAC’s request. MAC retains the right to verify the status of AIRLINE and
determine whether AIRLINE qualifies as International Regularly Scheduled
Airline Service.

 

2.                                       Gates G1
through G10 and associated passenger loading bridges, ramp access and lobby and
baggage facilities on Concourse G currently leased by Northwest Airlines, Inc.
(hereinafter referred to as “Northwest” or “Northwest Airlines”) shall be made
available for access to the International Arrivals Facility based on the
following priority of use:

 

a.                                       International
Regularly Scheduled Airline Service as defined in Exhibit H.

 

b.                                      Northwest or a
Northwest Affiliated Airline domestic arrivals and departures.

 

c.                                       Non-scheduled
irregular or delayed international charter arrivals when the expected delay for
the flight to use the Humphrey Terminal facility will exceed 90 minutes and the
use of an IAF gate will not interfere with the scheduled use of that gate. Such
interference shall be defined as the overlap of the non-scheduled use with the
scheduled use such that the scheduled flight will have to be relocated to
another concourse for its operation or will have to wait for a gate due to the
unavailability of any gate. Use of an IAF gate by a non-scheduled flight is
subject to Northwest’s approval; such approval is not to be unreasonably
withheld or delayed. Northwest shall designate an individual on site to give
necessary approvals.

 

3.                                       Northwest shall
provide all Ground Handling at the IAF gates subject to either (i) air
carrier self-handling rights contained in AIP grant assurances, at rates that
do not exceed those specified in the Mutual Assistance Ground Service
Agreement, or (ii) authorize the use of a third party ground handling
company to provide Ground Handling at the IAF gates upon a requesting airline
executing the memorandum of understanding included as Exhibit W.  Northwest shall also provide reasonable access
for air carriers to data and communications systems at gates G1-G10.

 

4.                                       No Airline
aircraft will remain on gates G1-G10 over two hours if a narrow-body or three
hours if a wide-body. Northwest will coordinate any moving of aircraft with MAC’s
operations department, FAA and appropriate federal inspections agencies.

 

5.                                       AIRLINE, if it
self-handles, or Northwest, if it provides Ground Handling to AIRLINE, on gates
G1-G10, shall handle and dispose of all international waste on AIRLINE’s
aircraft in accordance with the requirements of the United States Department of
Agriculture.

 

6.                                       Northwest shall
be responsible for all maintenance, repair, and operation of MAC jet bridges
provided by MAC as part of the IAF. 
Northwest shall make the MAC jet bridges available for use by all users
of the IAF without additional charge.

 

Exhibit W
has been attached to this Amendment as Exhibit 6

 

39

 

IV.           ACCOMMODATION
OF OTHER AIRLINES

 

Article IV.E.
“Accommodation of Other Airlines” of the Lease is hereby deleted in its
entirety and replaced with the following Article IV.E.:

 

1.                                       Thirty
(30) days in advance of each schedule change AIRLINE shall provide MAC with a
copy of the published schedule and a gate plot showing all times when aircraft
are scheduled to be utilizing each Preferential Use gate, including aircraft
type, projected arrival and departure times, and point of origin or
destination, including activities by subtenants or airlines being accommodated.

 

2.                                       In furtherance of the public interest of having the Airport’s capacity
fully and more effectively utilized, it is recognized by AIRLINE and MAC that (i) AIRLINE
shall be prohibited from subleasing any of its Premises to another Airline
without the prior written consent of MAC, which consent shall not be
unreasonably withheld, delayed or conditioned, however, MAC shall not be
required to approve any sublease if there is vacant space available from MAC
and (ii) from time to time during the term of this Agreement it may become
necessary for the AIRLINE to accommodate another Airline within its Premises or
for MAC unilaterally to require AIRLINE to accommodate another Airline(s) within
AIRLINE’s Premises as required for the following:

 

a.                                       To comply with
any applicable rule, regulation, order or statute of any governmental entity
that has jurisdiction over MAC, and to comply with federal grant assurances
applicable to MAC.

 

b.                                      To implement a
Capital Project at the Airport.

 

c.                                       To facilitate
the providing of air services at the Airport by an Airline (“Requesting Airline”)
when no Airline serving the Airport is willing to accommodate the Requesting
Airline’s operational needs or requirements for facilities at reasonable costs
or on other reasonable terms.

 

d.                                      To accommodate
the irregular activity of another Airline (“Irregular Need”).

 

e.                                       To accommodate
the Irregular Need of AIRLINE.  To the
extent possible, AIRLINE shall accommodate its Irregular Need on its
Preferential Use gate(s).  When such
activity may not be accommodated on AIRLINE’S Preferential Use gate(s), AIRLINE
shall seek accommodation from other Airlines on its own through coordination
among such Airlines’ supervisors and managers. 
In the event accommodation cannot be found on another Airline’s
premises, AIRLINE may seek assistance from MAC. 
MAC’s options shall include assigning use of non-leased gate premises or
referring AIRLINE to MAC’s agent responsible for managing MAC’s remote parking
locations.  For an Irregular Need, MAC
shall not be responsible for unilaterally accommodating an Airline on another
Airline’s leased premises. AIRLINE will be responsible for payment of all
applicable fees and charges including, if applicable, appropriate FIS charges
in connection with such accommodation.

 

f.                                         To accommodate
a flight that has declared an emergency and such flight shall have priority
over all other flight scheduling.

 

3.                                       In responding to a request for facilities for either a Requesting Airline
or to accommodate Irregular Need, MAC shall first work with the Requesting Airline
or Airline seeking 

 

40

 

accommodation of Irregular
Need to use existing Common Use Space or unassigned space, if any is available.

 

4.                                       When necessary, MAC shall make a determination as to whether any Airline
has underutilized facilities or capacity available.  In making such determination MAC shall not
act unreasonably.  Such determinations by
MAC shall take into consideration the following:

 

a.                                       The then existing utilization of AIRLINE’s
Premises (including any requirements for spare gates and accommodation of
AIRLINE’s Affiliates) and any bona fide plan of AIRLINE or any other Airline
for the increased utilization of the AIRLINE’s Premises to be implemented
within twelve (12) months thereafter (any non-public information provided by
AIRLINE regarding planned or proposed routes, schedules or operations shall be
treated as confidential by MAC to the maximum extent permitted by law).

 

b.                                      The need for compatibility among the current
schedules, including RON requirements, flight times, operations, operating
procedures and equipment of AIRLINE (and its Affiliate(s)) or any other Airline
and those of the Requesting Airline or the Airline seeking accommodation of
Irregular Need, as well as the need for labor harmony, facilities, resources,
and other relevant factors.

 

c.                                       During irregular operations, AIRLINE’S scheduled
operations will have priority over any accommodated Airline on its Premises.

 

d.                                      Any flights scheduled on AIRLINE’s Preferential
use gate(s) must vacate the gate at least 45 minutes before the next use
by AIRLINE.

 

e.                                       The maximum gate occupancy by narrow body
aircraft for a Requesting Airline or an Airline seeking accommodation of
Irregular Need shall be 45 minutes for an arrival, 45 minutes for a departure,
or 1 hour and 30 minutes for a combined turn.

 

f.                                         The maximum scheduled gate occupancy by wide
body aircraft for a Requesting Airline or an Airline seeking accommodation of
Irregular Need shall be 1 hour for an arrival, 1 hour for a departure, or 2
hours for a combined turn.

 

g.                                      Any aircraft occupying a gate longer than the
above timeframes may be required to vacate the gate to accommodate other
operations.  Should this occur, upon
AIRLINE’s request MAC will notify the Airline being accommodated as soon as MAC
becomes aware of the requirement, but in any event no later than 15 minutes
before the time that actual vacating is required.  Failure to vacate shall result in the
imposition of additional overtime fees by AIRLINE to the accommodated Airline.
If an Airline being accommodated does not vacate a gate as required, and
AIRLINE requires the use of such gate, upon AIRLINE’s request MAC shall
instruct Airline to remove its aircraft to another location leased by the
Airline or to a remote location as designated by MAC’s agent.  If failure of the accommodated Airline to
remove its aircraft results in AIRLINE requiring remote parking from MAC, MAC
shall invoice the accommodated Airline for any remote parking fees that would
be charged to AIRLINE.

 

h.                                      Before MAC accommodates a Requesting Airline
within AIRLINE’s Premises, MAC must give AIRLINE ten (10) days prior
written notice of its intent. AIRLINE must accept accommodation or notify MAC
within ten (10) business 

 

41

 

days after
AIRLINE’s receipt of such notice that it wishes to meet with MAC to show cause
why the accommodation should not be made.

 

5.                                       The accommodated Airline shall be responsible for the payment of all
applicable fees and charges for such use, including but not limited to
appropriate FIS charges and overtime fees.

 

6.                                       In the event that any portion of AIRLINE’s Premises are used to
accommodate another Airline or Irregular Need:

 

a.                                       AIRLINE shall be authorized to (i) charge
such accommodated Airline a reasonable accommodation fee and (ii) require
from the accommodated Airline an indemnity and defense undertaking, so long as
such undertaking is not more favorable to AIRLINE than that which AIRLINE
provide to MAC.

 

b.                                      Each accommodated Airline shall be responsible
for (i) ensuring that its agents, employees, and contractors are properly
qualified prior to operating any and all equipment and (ii) are
responsible for securing jetway doors upon completion of use.

 

c.                                       AIRLINE shall not be required to indemnify and
save harmless MAC, its employees or agents with regard to any claim for damages
or personal injury arising out of any accommodated Airline’s use of AIRLINE’s
premises, unless caused by the negligence of AIRLINE;

 

d.                                      AIRLINE shall not be liable to any accommodated
Airline or any of its agents, employees, servants or invitees, for any damage
to persons or property due to the condition or design or any defect in the
Premises which may exist or subsequently occur, and such accommodated Airline,
with respect to it and its agents, employees, servants and invitees shall be
deemed to have expressly assumed all risk and damage to persons and property,
either proximate or remote, by reason of the present or future condition or use
of AIRLINE’S Premises.  Further, such
accommodated Airline shall be deemed to have agreed to release, indemnify, hold
harmless and defend AIRLINE, the MAC, and their respective officers, directors,
employees, agents, successors and assigns, from and against any and all suits,
claims, actions, damages, liabilities and expenses (including, without
limitation, attorneys’ fees, costs and related expenses) for bodily or personal
injury or death to any persons and for any loss of, damage to, or destruction
of any property, including loss of use, incidental and consequential damage
thereof, arising out of or in any manner connected with the use of AIRLINE’S
Premises by such accommodate Airline or any of its agents, representatives,
employees, contractors or invitees, whether or not occurring or arising out of
the negligence, whether sole, joint, concurrent, comparative, active, passive,
imputed or any other type, of AIRLINE, MAC or their respective officers,
directors, employees or agents; provided, however, the foregoing
indemnification shall not apply to any claim or liability resulting from the
gross negligence or willful misconduct of AIRLINE, its officers, directors,
employees or agents.

 

e.                                       MAC shall be responsible for ensuring that such
accommodated Airline has in full force and effect MAC’s required insurance
coverages.

 

42

 

f.                                         Without limiting any other provision of this
2007A Amendment, AIRLINE’s duty to accommodate another airline shall be
conditioned on and subject to the satisfaction of all requirements of this Section 6.

 

7.                                       In the event of a labor stoppage or other event which results in the
cessation or substantial reduction in AIRLINE’s flights operations at the
Airport, AIRLINE will immediately take all reasonable efforts, including but
not limited to, moving of aircraft or equipment, providing access to AIRLINE’s
holdrooms and jet bridges or anything else in AIRLINE’s control, in order to
accommodate the operations of other Airlines providing air service to the
Airport; provided that: (a) AIRLINE at all times will have access to its
premises and equipment for operational reasons and (b) AIRLINE shall not
be required to take any action which would interfere with its ability to
re-institute service upon cessation of labor stoppage or other event.
Subject to a mutually acceptable agreement between MAC and AIRLINE covering
such use, AIRLINE shall have the right to charge reasonable fees and to require
reasonable advance payment for such use of AIRLINE’s gates, holdroom areas, and
loading bridges (and any such fees not in excess of 115% of the rates and
charges payable by AIRLINE hereunder for such premises shall be deemed
reasonable).

 

8.                                       The foregoing shall not be deemed to abrogate, change, or affect any
restrictions, limitations or prohibitions on assignment or use of the AIRLINE’s
Premises by others under this Agreement and shall not in any manner affect,
waive or change any of the provisions thereof.

 

V.                                    SHORT
TERM GATES

 

Exhibit V
to the Lease has been attached hereto as Exhibit 5.

 

Article IV.H.
“Short Term Gates” of the Lease is hereby modified to add subsection 6:

 

6.                                       If AIRLINE is
leasing three (3) or fewer holdrooms from MAC, MAC agrees to not cancel
the lease of more than one Short Term Gate AIRLINE may be leasing in accordance
with the procedures identified in Article IV.H.2. as long as AIRLINE has
adhered to the payment and utilization requirements identified within Article IV.H.5.
for all leased gates for the previous twelve (12) consecutive months.

 

VI.                                RENTS,
FEES, AND CHARGES

 

Article V.B.
“Rents, Fees, and Charges” of the Lease is hereby deleted in its entirety and
replaced with the following:

 

B.                                     Rents, Fees,
and Charges

 

1.                                       Landing Fees

 

AIRLINE
shall pay to MAC monthly landing fees to be determined by multiplying the
number of 1,000-pound units of AIRLINE’s Total Landed Weight during the month
by the then-current landing fee rate. 
The landing fee rate shall be calculated according to procedures set
forth in Article VI or Article VI. (Alternate).

 

2.                                       Environmental
Surcharges. 
Intentionally Omitted.

 

3.                                       Terminal Apron
Fees

 

43

 

AIRLINE
shall pay to MAC monthly Terminal Apron fees to be determined by multiplying
the number of lineal feet of Terminal Apron under lease to AIRLINE (excluding
Concourses A and B) during the month by the then-current Terminal Apron
rate.  The Terminal Apron rate shall be
calculated according to the procedures set forth in Article VI or Article VI.
(Alternate) hereof.

 

4.                                       Concourse A and
B Terminal Apron Fees

 

AIRLINE
shall pay to MAC monthly Terminal Apron Fees associated with Concourses A and B
at the rate of fifty percent (50%) of the lineal feet associated with
Concourses A and B.

 

5.                                       Terminal
Building Rents and Surcharge

 

AIRLINE
shall pay to MAC monthly Terminal Building rentals and the Lindbergh Terminal
Repair and Replacement Surcharge for its Exclusive (janitored and unjanitored),
Preferential and Common Use Space in the Terminal Building.  The Terminal Building rental rates shall be
calculated according to the procedures set forth in Article VI. or Article VI.
(Alternate)

 

Terminal Building rentals for Common Use Space (except the IAF) shall
be prorated among Signatory Airlines using the Common Use Formula.

 

6.                                       Carrousel and
Conveyor Charges

 

AIRLINE shall pay to MAC monthly carrousel and conveyor charges based
upon maintenance and operating costs and Debt Service.  The carrousel and conveyor charges shall be
calculated according to the procedures set forth in Article VI or Article VI.
(Alternate) and shall be prorated among Signatory Airlines using the Common Use
Formula.

 

7.                                       IAF Gate Fees

 

AIRLINE shall pay to MAC monthly IAF gate fees determined by
multiplying the number of arrivals at the IAF by AIRLINE’s propeller aircraft,
narrow-body jet aircraft, and wide-body jet aircraft by $400, $800, and $1,200,
respectively.

 

8.                                       IAF Use Fees

 

AIRLINE shall pay to MAC monthly IAF use fees determined by multiplying
the number of AIRLINE’s international passengers arriving at the IAF during the
month by the IAF use fee rate. The IAF use fee rate shall be calculated
according to procedures set forth in Article VI or Article VI.
(Alternate).

 

9.                                       Other Fees and
Charges

 

AIRLINE shall pay to MAC reasonable fees for the various other services
provided by MAC to AIRLINE. These services include, but may not be limited to,
the following:

 

a.                                       Use of the
Humphrey Terminal and Humphrey ramp at rates established from time to time by
MAC.

 

44

 

b.                                      Use of Garage
Parking Cards by AIRLINE’s employees at rates set forth in the Guidelines for
Administering Validated Airport Parking.

 

c.                                       Use of
designated employee parking facilities by AIRLINE’s employees at rates
established from time to time by MAC.

 

d.                                      Nonroutine
Terminal Apron cleaning and other special services requested by AIRLINE at
rates that reflect the costs incurred by MAC.

 

e.                                       Security and
personnel identification badges for AIRLINE’s personnel at rates established
from time to time by MAC.

 

f.                                         Office
services, such as facsimile, photocopying, or telephone provided by MAC.
Charges for these services shall be at the rates that MAC customarily charges
for such services.

 

g.                                      Charges for the
cost of separately metered water and sewer and other such utilities not
otherwise included in the calculation of rents, fees, and charges.

 

VII.                            CALCULATION
OF RENTS, FEES, AND CHARGES

 

Article VI
(Alternate), “Calculation of Rents, Fees and Charges” is hereby added to the
Lease and shall be placed immediately following Article VI (“Calculation
of Rents, Fees, and Charges”) as follows:

 

VI
(ALTERNATE).                                            CALCULATION OF
RENTS, FEES AND CHARGES.

 

A.                                   General

 

Notwithstanding Article VI hereof, effective January 1, 2006,
and for each Fiscal Year thereafter, rents, fees, and charges will be reviewed
and recalculated based on the principles and procedures set forth in this Article VI
(Alternate).  The annual costs associated
with each of the indirect cost centers shall be allocated to each of the
Airport Cost Centers based on the allocations as set forth in Exhibit M,
Indirect Cost Center Allocation, which allocations may be amended from time to
time by mutual consent of MAC and a Majority-In-Interest of Signatory
Airlines.  Such consent may not be
unreasonably withheld.

 

B.                                     Calculation/Coordination
Procedures

 

1.                                       AIRLINE shall provide to
MAC: (a) on or before August 1 of each year a preliminary estimate of
Total Landed Weight and Enplaned Passenger for the succeeding calendar year of
AIRLINE and each Affiliated Airline, unless separately reported to MAC by such
Affiliated Airline; and (b) on or before October 1 of each year a final
estimate of such weight.  If the final
estimate is not so received, MAC may continue to rely on the preliminary
estimate for the MAC budgeting process. 
MAC will utilize the forecast in developing its preliminary calculation
of Total Landed Weight and Enplaned Passengers for use in the calculation of
rents, fees, and charges for the ensuing Fiscal Year.

 

2.                                       On or before October 15
of each Fiscal Year, MAC shall submit to AIRLINE a preliminary calculation of
rents, fees, and charges for the ensuing Fiscal Year. The preliminary
calculation of rents, fees, and charges will include, among others, MAC’s
estimate of all revenue items, Operation and Maintenance Expenses, Debt

 

45

 

Service,
Capital Outlays, required deposits, including amounts necessary to be deposited
in the Coverage Account in order to meet MAC’s rate covenant under the Trust
Indenture, and Rentable Space.

 

3.                                       Within fifteen
(15) days after receipt of the preliminary calculation of rents, fees, and
charges, if requested by the Signatory Airlines, a meeting shall be scheduled
between MAC and the Signatory Airlines to review and discuss the proposed
rents, fees, and charges.

 

4.                                       MAC shall then
complete a calculation of rents, fees, and charges at such time as the budget
is approved, taking into consideration the comments or suggestions of AIRLINE
and the other Signatory Airlines.

 

5.                                       If, for any
reason, MAC’s annual budget has not been adopted by the first day of any Fiscal
Year, the rents, fees, and charges for the Fiscal Year will initially be
established based on the preliminary calculation of rents, fees, and charges
until such time as the annual budget has been adopted by MAC. At such time as
the annual budget has been adopted by MAC, the rents, fees, and charges will be
recalculated, if necessary, to reflect the adopted annual budget and made
retroactive to the first day of the Fiscal Year.

 

6.                                       If, during the
course of the year, MAC believes significant variances exist in budgeted or
estimated amounts that were used to calculate rents, fees, and charges for the
then current Fiscal Year, MAC may after notice to Airlines adjust the rents,
fees, and charges for future reports to reflect current estimated amounts.

 

C.                                     Landing Fees

 

MAC shall calculate the landing fee rate in the following manner and as
illustrated in Exhibit N (revised).

 

1.                                       The total
estimated Airfield Cost shall be calculated by totaling the following annual
amounts:

 

a.                                       The total
estimated direct and allocated indirect Operation and Maintenance Expenses
allocable to the Airfield cost center.

 

b.                                      The estimated
Debt Service net of amounts paid from PFCs or grants allocable to the Airfield
cost center.

 

c.                                       The cost of
Runway 17/35 deferred and not yet charged from the date of occupancy through December 31,
2005 will be charged starting January 1, 2006 through December 31,
2035 at $79,535.16 annually.

 

d.                                      The Landing Fee
Repair and Replacement Amount.

 

e.                                       The amount of
any fine, assessment, judgment, settlement, or extraordinary charge (net of
insurance proceeds) paid by MAC in connection with the operations on the
Airfield, to the extent not otherwise covered by Article X.

 

f.                                         The amounts
required to be deposited to funds and accounts pursuant to the terms of the
Trust Indenture, including, but not limited to, its Debt Service reserve funds
allocable to the Airfield cost center. 
MAC agrees to exclude 

 

46

 

from
the calculation of landing fees the amounts which it may deposit from time to
time to the maintenance and operation reserve account and the Coverage Account
established and maintained pursuant to the Trust Indenture except for such
amounts which are necessary to be deposited to the Coverage Account in order
for MAC to meet its rate covenant under the Trust Indenture.

 

2.                                       The total
estimated Airfield Cost shall be adjusted by the total estimated annual amounts
of the following items to determine the Net Airfield Cost:

 

a.                                       Service fees
received from the military, to the extent such fees relate to the use of the
Airfield;

 

b.                                      General
aviation and nonsignatory landing fees;

 

c.                                       Debt Service on
the Capital Cost, if any, disapproved by a Majority-In-Interest of Signatory
Airlines.

 

3.                                       The Net
Airfield Cost shall then be divided by the estimated Total Landed Weight
(expressed in thousands of pounds) of the Signatory Airlines operating at the
Airport to determine the landing fee rate per 1,000 pounds of aircraft weight
for a given Fiscal Year.

 

D.                                    Terminal Apron
Fees

 

MAC shall calculate the Terminal Apron rate in the following manner and
as illustrated in Exhibit N (revised).

 

1.                                       The total
estimated Terminal Apron Cost shall be calculated by totaling the following
annual amounts:

 

a.                                       The total
estimated direct and allocated indirect Operation and Maintenance Expenses
allocable to the Terminal Apron cost center.

 

b.                                      The estimated
Debt Service net of amounts paid from PFCs or grants allocable to the Terminal
Apron cost center (excluding hydrant fueling repairs and modifications).

 

c.                                       The cost of
Concourse A and B Apron Area deferred and not yet charged from the date of
occupancy through December 31, 2005 will be charged starting January 1,
2006 through December 31, 2035 at $159,950.19 annually.

 

d.                                      The amounts
required to be deposited to funds and accounts pursuant to the terms of the
Trust Indenture, including, but not limited to, its Debt Service reserve funds
allocable to the Terminal Apron cost center. 
MAC agrees to exclude from the calculation of Terminal Apron fees the
amounts which it may deposit from time to time to the maintenance and operation
reserve account and the Coverage Account established and maintained pursuant to
the Trust Indenture except for such amounts which are necessary to be deposited
to the Coverage Account in order for MAC to meet its rate covenant under the
Trust Indenture.

 

47

 

e.                                       The Terminal
Apron Repair and Replacement Amount.

 

2.                                       The Terminal
Apron Cost shall then be divided by the total estimated lineal feet of Terminal
Apron, to determine the Terminal Apron rate per lineal foot for a given Fiscal
Year. For the purposes of this calculation, lineal feet of Terminal Apron shall
be computed as the sum of the following:

 

a.                                       Lineal feet of
the Terminal Apron (excluding the Terminal Apron associated with Concourses A &
B); and

 

b.                                      Fifty percent
(50%) of lineal feet of the Terminal Apron associated with Concourse A &
B.

 

E.                                      Terminal
Building Rents

 

MAC shall calculate the terminal building
rental rate for unjanitored and janitored space in the Terminal Building as set
forth in subsections 1 and 2 of this Article VI. (Alternate) E.

 

1.                                       MAC shall
calculate the terminal building rental rate for unjanitored space in the
Terminal Building in the following manner and as illustrated in Exhibit N
(revised).

 

a.                                       The total
estimated Terminal Building Cost shall be calculated by totaling the following
annual amounts:

 

1)                                      The total
estimated direct and allocated indirect Operation and Maintenance Expenses
allocable to the Terminal Building cost center.

 

2)                                      The estimated
direct and allocated Debt Service net of amounts paid from PFCs or grants
allocable to the Terminal Building cost center.

 

3)                                      The cost of
Concourse A, B, C and D deferred and not yet charged from date of occupancy
through December 31, 2005 will be charged starting January 1, 2006
through December 31, 2035 at $2,910,547.40 annually.

 

4)                                      The amounts
required to be deposited to funds and accounts pursuant to the terms of the
Trust Indenture, including, but not limited to, its Debt Service reserve funds
allocable to the Terminal Building cost center. 
MAC agrees to exclude from the calculation of Terminal Rents the amounts
which it may deposit from time to time to the maintenance and operation reserve
account and the Coverage Account established and maintained pursuant to the
Trust Indenture except for such amounts which are necessary to be deposited to
the Coverage Account in order for MAC to meet its rate covenant under the Trust
Indenture.

 

b.                                      The total
estimated Terminal Building Cost shall be reduced by the total estimated annual
amounts of the following items to determine the Net Terminal Building Cost:

 

1)                                      Reimbursed
expense:

 

48

 

a)                                      Steam and
chilled water on the G Concourse;

 

b)                                     Carrousel and
conveyor Capital Cost and Operation and Maintenance Expense;

 

c)                                      Ground Power;

 

d)                                     Loading Dock;
and

 

e)                                      Consortium
Utilities.

 

2)                                      Janitorial
Operation and Maintenance Expenses, as determined by MAC.

 

c.                                       The Net
Terminal Building Cost shall then be divided by the total estimated Rentable
Space in the Terminal Building to determine the terminal building rental rate
per square foot for unjanitored space for a given Fiscal Year.  (See Initial Rentable Square Footage, Exhibit O).

 

2.                                       MAC shall
calculate the terminal building rental rate for janitored space by totaling the
following rates and as illustrated in Exhibit N (revised):

 

a.                                       The terminal
building rental rate per square foot for unjanitored space for a given Fiscal
Year, as calculated in this Section; and

 

b.                                      An additional
rate per square foot, the janitored rate, calculated by dividing the total
estimated direct janitorial Operation and Maintenance Expenses, as determined
by MAC, by the total janitored space in the Terminal Building (excluding MAC
and mechanical space).

 

F.                                      Carrousel and
Conveyor Charge

 

1.                                       MAC shall
calculate the carrousel and conveyor charge, as illustrated in Exhibit N
(revised), by totaling the following annual amounts: equipment charges
associated with the carrousel and conveyor, including annual Debt Service,
maintenance expense, and service charge.

 

2.                                       MAC shall
prorate the carrousel and conveyor charge among the Signatory Airlines using
the Common Use Formula.

 

G.                                     IAF Use Fees

 

The IAF use fee for use of the IAF and any associated gates shall be
effective through December 31, 2015 and shall be based upon:

 

1.                                       The cost of the maintenance
and operation of the International Arrivals Facility which may include, but is
not limited to:

 

a.                                       utilities;

 

b.                                      cleaning:

 

49

 

c.                                       maintenance
(including the costs of maintaining the security equipment that existed as of April 1998);

 

d.                                      police, fire,
and administrative cost allocation;

 

e.                                       costs of
providing passenger baggage carts, if any;

 

f.                                         costs of
providing staff parking for federal inspections agency staff; and

 

g.                                      $4.17 per
square foot recoupment for lost rental area in the G Concourse.

 

2.                                       Costs
associated with the operation of dual international arrivals facility locations
at the Airport, based on the appropriate allocation of costs between the two
facilities, not otherwise funded by the federal inspections agencies including,
but not limited to additional personnel and equipment used by those agencies;
and

 

3.             Debt Service, if
any; and

 

Items (1) through (3) above, for which AIRLINE will be billed
monthly, shall be set annually at an estimated charge through MAC’s budget
process and then adjusted at year end for actual costs pursuant to certified
audit by MAC’s external auditors and such difference shall be charged or credited
to AIRLINE and paid by AIRLINE or MAC within thirty (30) days thereafter.

 

H.            Year-End
Adjustments of Rents, Fees, and Charges

 

1.                                       As soon as
practical following the close of each Fiscal Year, but in no event later than July 1,
MAC shall furnish AIRLINE with an accounting of the costs actually incurred and
revenues and credits actually realized during such Fiscal Year with respect to
each of the components of the calculation of the rents, fees, and charges
calculated pursuant to this Article broken down by rate making Cost
Center.

 

2.                                       In the event
AIRLINE’s rents, fees, and charges billed during the Fiscal Year exceed the
amount of AIRLINE’s rents, fees, and charges required (as recalculated based on
actual costs and revenues), such excess shall be refunded or credited to
AIRLINE.

 

3.                                       In the event
AIRLINE’s rents, fees, and charges billed during the Fiscal Year are less than
the amount of AIRLINE’s rents, fees, and charges required (as recalculated
based on actual costs and revenues), such deficiency shall be charged to
AIRLINE in a supplemental billing.

 

I.              Revenue Sharing

 

1.                                       Beginning January 1,
2006, subject to Section IX of the 2007A Amendment to the Airline
Operating Agreement and Terminal Building Lease, in conjunction with its Year
End Adjustments of Rents, Fees and Charges, MAC will rebate to AIRLINE a
portion of the Annual Gross Revenues for Selected Concessions for the most
recent Fiscal Year under the following schedule (“Revenue Sharing”) (all dollar
amounts set forth in this Article VI (Alternate) shall apply for 2006 only
and shall be escalated for each Fiscal Year after 2006 on an annual compounded
basis by the Selected Concession Revenue Escalation Factor):

 

50

 

a.                                       If Annual Gross
Revenues for the Selected Concessions for 2006 are between $25 million and
$32.299 million for the Fiscal Year, 25% of gross revenues;

 

b.                                      If Annual Gross
Revenues for the Selected Concessions are above $ 32.299 million for the Fiscal
Year, 25% of gross revenues up to $32.299 million and  50% of gross 
revenues above $32.299 million;

 

2.                                       Reduced sharing
of gross revenues if Annual Gross Revenues for the Selected Concessions are
below $25 million for the Fiscal Year;

 

a.             $24
million to $24.99 million – 20%

 

b.             $23
million to $23.99 million – 15%

 

c.             $22
million to $22.99 million – 10%

 

d.             $21
million to $21.99 million – 5%

 

3.                                       The total
rebate amount shall be allocated among Signatory Airlines according to their
pro rata share of Enplaned Passengers for the Fiscal Year and shall be
structured as a post-year-end check to AIRLINE issued by MAC no later than 240
days following each Fiscal Year, subject to correction following any applicable
audit;

 

4.                                       Notwithstanding
the foregoing, MAC shall have the right to reduce the amount of Revenue Sharing
with respect to any Fiscal Year to the extent necessary so that the Net
Revenues of the MAC taking into account the Revenue Sharing for such Fiscal
Year will not be less than 1.25x of the total Debt Service of MAC for such Fiscal
Year.  In the event that the Revenue
Sharing is reduced in any Fiscal Year, by any amount (the “Deferred Revenue
Sharing Amount”) as a result of the operation of this Article VI
(Alternate), MAC will accrue the Deferred Revenue Sharing Amount and credit such
amount to the Signatory Airlines in the subsequent Fiscal Year (or, if such
amount may not be credited in accordance with this Article VI (Alternate)
in such subsequent Fiscal Year, then such amount will be credited in the next
succeeding Fiscal Year in which such credit may be issued in accordance with
this Article VI (Alternate); and

 

5.                                       The rights of
any Signatory Airline to any payment, credit or application of Revenue Sharing
to or for the benefit of such Signatory Airline is a contract right, in existence
and effective as of January 1, 2006 (subject to Section IX of the
2007A Amendment), and any such payment, credit or application actually made is
proceeds thereof.

 

J.             Reversion to
Pre-Existing Rate Structure.

 

Notwithstanding
anything in the Lease or any other agreement between MAC and AIRLINE, in the
event AIRLINE is not in compliance with any payment obligation under any
agreement with the MAC  during the period
following any applicable notice and cure period under such agreement and
continuing until payment of any such amounts (the “Payment Default Period”),
MAC will have the right, upon written notice to AIRLINE (provided that, if
AIRLINE is in bankruptcy, no notice shall be required for the effectiveness of
the following, although invoices reference the additional amounts due as a
result of such 

 

51

 

payment
default and set forth the applicable rates that are then in effect as a result
of such payment default), to: (i) have AIRLINE’s payment obligations under
the Lease during the Payment Default Period revert to the Pre-Existing Rate
Structure, and (ii) apply the amount of any Rate Differential (as defined
in Section IX hereof) for AIRLINE during such period and the amount of any
accrued and unpaid Revenue Sharing credits (if any) otherwise due to AIRLINE
pursuant to Article VI (Alternate) for the Payment Default Period against
any amounts owed by AIRLINE to MAC to the extent necessary to cure such payment
defaults.

 

A
revised Exhibit N to the Lease has been attached hereto as Exhibit 3.

 

VIII.        BANKRUPTCY

 

Article XI.E.
“Bankruptcy” of the Lease is amended to add the following subsection E.6:

 

6.                                       In addition to
the other rights of MAC hereunder, to the extent necessary, to effect its
rights under Article VI (Alternate).J. of the Lease in any future
bankruptcy involving AIRLINE pursuant to the doctrines of setoff and/or
recoupment.

 

IX.           AMENDMENT
EFFECTIVE DATE AND CONDITIONS

 

The
amended rate structures and changes in rate methodology (the “Rate Changes”)
and the Revenue Sharing (the Revenue Sharing together with the Rate Changes,
shall be called the “Savings”) set forth in Sections VI and VII of the 2007A
Amendment (as hereinafter defined) shall be effective commencing January 1,
2006 and shall continue through the term of each Airline’s Airline Operating
Agreement and Terminal Building Lease, subject to the terms and conditions
thereof.  However, MAC and AIRLINE hereby
acknowledge and agree that receipt of any credits for the Savings under this 2007A
Amendment is expressly conditioned upon the entry of an order in the 2005
Bankruptcy Case (which would include an order confirming a plan of
reorganization and which shall contain the provisions regarding effectiveness
set forth herein) (the “Assumption Order”) not later than September 30,
2007 approving the assumption by NAI of the executory agreements relating to
GO15, GO13, the Lease, and the other leases and executory agreements between
NAI and MAC set forth on Exhibit 4 hereto (the “Assumed Agreements”).  The Assumption Order shall provide that the
effectiveness of the assumption of the Assumed Agreements is conditioned upon
the approval by all of the Signatory Airlines of this 2007A Amendment or the
Third Amendment to Airline Operating Agreement and Terminal Building Lease (“NAI’s
Third Amendment”) as an amendment to each Signatory Airline’s Airline Operating
Agreement and Terminal Building Lease. 
Within thirty (30) days after the later to occur of (i) the entry
of the Assumption Order and (ii) approval by all of the Signatory Airlines
of this 2007A Amendment or NAI’s Third Amendment and any other documents
implementing the Savings (the “Amendment Effective Date”), MAC will (A) issue
a check to (i) each Signatory Airline in an amount equal to the difference
between the rates and charges calculated under the pre-existing Airline
Operating Agreement and Terminal Building Lease with each Signatory Airline,
without taking into account the changes set forth in this 2007A Amendment (“Pre-Existing
Rate Structure”), and such rates and charges calculated taking into account the
Rate Changes and other revisions to the Airline Operating Agreement and
Terminal Building Lease with each Signatory Airline that are set forth in this
2007A Amendment (“Amended Rate Structure”, with such difference between the
Pre-Existing Rate Structure and the Amended Rate Structure, the “Rate
Differential”) for the period commencing January 1, 2006 through the
Amendment Effective Date, (ii) each Signatory Airline for the amount of
the Revenue Sharing for 2006 and any succeeding calendar year ending prior to
the Amendment Effective Date with such credit issued upon the completion of the
certified independent audits report for such year, and (iii) each
Signatory Airline for interest on the credit amounts referenced in clauses (i) and
(ii) of this sentence at MAC’s actual earned overnight interest rate (“Applicable
Interest Rate”) from the period commencing on February 

 

52

 

12,
2007 (but in the case of 2006 Revenue Sharing, not earlier than the completion
of the comprehensive annual financial report for 2006) (“Interest Commencement
Date”) through the date of the issuance of such credits, and (B) implement
the terms of the 2007A Amendment as of the Amendment Effective Date.

 

The
remainder of this page has been intentionally left blank.

 

53

 

IN
WITNESS WHEREOF, the parties have signed and executed this Amendment in
duplicate the day and year first below written.

 

	
   

  	
   

  	
  METROPOLITAN AIRPORTS COMMISSION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
                                                

  	
  ,
  2007

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AIRLINE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
                                                  

  	
  ,
  2007

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  

 

 

	
  STATE
  OF MINNESOTA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF HENNEPIN

  	
  )

  

 

This instrument was acknowledged before me on
the            day of
                    ,
2007,               ,
the
                                   of
the Metropolitan Airports Commission on behalf of the Commission.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary
  Public

  

 

 

	
  STATE
  OF MINNESOTA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY
  OF RAMSEY

  	
  )

  

 

 

This instrument was acknowledged before me on
the            day of
                    ,
2007,                                     ,
the                                                                     
of                                                         .

 

 

	
   

  	
   

  
	
   

  	
  Notary
  Public

  

 

54

 

EXHIBIT 1

 

AIRLINE OPERATING AGREEMENT AND TERMINAL BUILDING LEASE AND AMENDMENTS

 

	
  Agreement/Amendment

  	
   

  	
  Effective
  Date

  
	
   

  	
   

  	
   

  
	
  Airline
  Operating Agreement and Terminal Building Lease

  	
   

  	
  January 1,
  1999

  

 

55

 

EXHIBIT 2

 

LIST OF MAC BOND OBLIGATIONS

 

Current Outstanding Debt

 

General
Obligation Revenue Bonds

 

	
   

  	
  Series 13

  	
   

  	
  (2015)

  	
   

  
	
   

  	
  Series 14

  	
   

  	
  (2011)

  	
   

  
	
   

  	
  Series 15

  	
   

  	
  (2022)

  	
   

  

 

 

General
Airport Revenue Bonds

 

	
   

  	
  Series 1998B
  Sr

  	
   

  	
  (2016)

  	
   

  
	
   

  	
  Series 1999B
  Sr

  	
   

  	
  (2022)

  	
   

  
	
   

  	
  Series 2000B
  Sr

  	
   

  	
  (2021)

  	
   

  
	
   

  	
  Series 2001B
  Sr

  	
   

  	
  (2024)

  	
   

  
	
   

  	
  Series 2007A
  Sr

  	
   

  	
  (2032)

  	
   

  
	
   

  	
  Series 2001D
  Sub

  	
   

  	
  (2016)

  	
   

  
	
   

  	
  Series 2003A
  Sub

  	
   

  	
  (2031)

  	
   

  
	
   

  	
  Series 2004A
  Sub

  	
   

  	
  (2031)

  	
   

  
	
   

  	
  Series 2005A
  Sub

  	
   

  	
  (2035)

  	
   

  
	
   

  	
  Series 2005B
  Sub

  	
   

  	
  (2026)

  	
   

  
	
   

  	
  Series 2005C
  Sub

  	
   

  	
  (2032)

  	
   

  
	
   

  	
  Series 2007B
  Sub

  	
   

  	
  (2032)

  	
   

  

 

Commercial
Paper

 

	
   

  	
  Series A

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Series B

  	
   

  	
   

  	
   

  
	
   

  	
  Series C

  	
   

  	
   

  	
   

  
	
   

  	
  Series D

  	
   

  	
   

  	
   

  

 

Notes
Payable –Equipment Leasing

 

	
   

  	
  2003
  Financing

  	
   

  	
  (2008)

  
	
   

  	
  2004
  Financing

  	
   

  	
  (2009)

  

 

Other
Notes Payable/Financing Leases

 

56

 

EXHIBIT 3 - REVISED EXHIBIT N

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Landing Fee Rates

 

	
  Article

  Reference

  	
   

  	
   

  	
   

  	
  200x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.C.1.

  	
   

  	
  Direct Operation and Maintenance Expense (Includes Control Tower, Noise
  Abatement & Operations)

  	
   

  	
  $

  	
  8,500,000

  	
   

  
	
   

  	
   

  	
  Indirect
  Operation and Maintenance Expense

  	
   

  	
  16,500,000

  	
   

  
	
   

  	
   

  	
  Direct
  and Indirect Debt Service

  	
   

  	
  7,000,000

  	
   

  
	
   

  	
   

  	
  Runway
  17/35 Deferral

  	
   

  	
  79,535

  	
   

  
	
   

  	
   

  	
  Capital
  Outlays/Deposit to Repair & Replacement Fund

  	
   

  	
  10,200,000

  	
   

  
	
   

  	
   

  	
  Direct
  and Indirect Cost of Capital Outlays/Leases (Original)

  	
   

  	
  1,500,000

  	
   

  
	
   

  	
   

  	
  Fine,
  Assessment, Judgment or Settlement

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Debt
  Service Reserve Fund Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Operation
  Reserve Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Coverage
  Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Airfield Cost

  	
   

  	
  $

  	
  40,479,535

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1C.2.

  	
   

  	
  Service
  Fees (Military)

  	
   

  	
  $

  	
  150,000

  	
   

  
	
   

  	
   

  	
  General
  Aviation Landing Fees

  	
   

  	
  880,000

  	
   

  
	
   

  	
   

  	
  Nonsignatory
  Landing Fees (HHH
  and Commuter)

  	
   

  	
  720,000

  	
   

  
	
   

  	
   

  	
  Off-Airport
  Aircraft Noise Costs

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Projects
  Rejected by MII of Signatory Airlines

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Adjustments

  	
   

  	
  $

  	
  1,750,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Net
  Airfield Cost

  	
   

  	
  $

  	
  38,729,535

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.C.3.

  	
   

  	
  Total
  Landed Weight of Signatory Airlines  (1,000-lb. Units)

  	
   

  	
  23,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Landing
  Fee Rate per 1,000 lbs.

  	
   

  	
  $

  	
  1.648

  	
   

  

 

57

 

EXHIBIT 3 - REVISED EXHIBIT N

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Terminal Apron Rates

 

	
  Article

  Reference

  	
   

  	
   

  	
   

  	
  200x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.E.1.

  	
   

  	
  Direct
  Operation and Maintenance Expense

  	
   

  	
  $

  	
  210,000

  	
   

  
	
   

  	
   

  	
  Indirect
  Operation and Maintenance Expense

  	
   

  	
  3,500,000

  	
   

  
	
   

  	
   

  	
  Direct
  and Indirect Debt Service

  	
   

  	
  10,000

  	
   

  
	
   

  	
   

  	
  Direct
  and Indirect Cost of Capital Outlays/Lease

  	
   

  	
  500,000

  	
   

  
	
   

  	
   

  	
  Capital
  Outlays/Deposit to Repair & Replacement Fund

  	
   

  	
  600,000

  	
   

  
	
   

  	
   

  	
  Concourse
  A & B Ramp Deferral Recovery

  	
   

  	
  159,950

  	
   

  
	
   

  	
   

  	
  Debt
  Service Reserve Fund Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Operation
  Reserve Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Coverage
  Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Terminal Apron Cost

  	
   

  	
  $

  	
  4,979,950

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.E.2.

  	
   

  	
  Total
  Lineal Feet of Terminal Apron

  	
   

  	
  9,971

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Excluding Terminal
  A & B Ramp)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal
  A Apron Lineal Feet

  	
  1,253

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal
  B Apron Lineal Feet

  	
  1,409

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.E.3.

  	
   

  	
  Total
  Terminal A & B Apron

  	
  2,662

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal
  A & B Apron @ 1⁄2

  	
   

  	
  1,331

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Chargeable Terminal Apron Lineal Feet

  	
   

  	
  11,302

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal
  Rate Per Lineal Foot

  	
   

  	
  $

  	
  440.626

  	
   

  

 

58

 

 

EXHIBIT 3 - REVISED EXHIBIT N

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Terminal Building Rental Rate (Janitored and Unjanitored
Space)

 

	
  Article

  Reference

  	
   

  	
   

  	
   

  	
  200x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.G.1.a

  	
   

  	
  Unjanitored
  Space Rate Calculation

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct
  Operation and Maintenance Expense (Includes Energy Management Center)

  	
   

  	
  $

  	
  21,490,000

  	
   

  
	
   

  	
   

  	
  Indirect
  Operation and Maintenance Expense

  	
   

  	
  9,000,000

  	
   

  
	
   

  	
   

  	
  Direct
  and Indirect Debt Service

  	
   

  	
  21,700,000

  	
   

  
	
   

  	
   

  	
  Terminal
  A-D Deferral Recovery

  	
   

  	
  2,910,537

  	
   

  
	
   

  	
   

  	
  Direct
  and Indirect Cost of Capital Outlays/Leases

  	
   

  	
  500,000

  	
   

  
	
   

  	
   

  	
  Debt
  Service Reserve Fund Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Operation
  Reserve Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Coverage
  Account Deposit

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  Total
  Terminal Building Cost

  	
   

  	
  $

  	
  55,600,537

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less:

  	
   

  	
   

  	
   

  
	
  V1.G1.b.

  	
   

  	
  Steam
  and Chilled Water Reimbursement (G Concourse)

  	
   

  	
  $

  	
  940,000

  	
   

  
	
   

  	
   

  	
  Carrousel
  and Conveyor Costs

  	
   

  	
  220,000

  	
   

  
	
   

  	
   

  	
  Ground
  Power

  	
   

  	
  390,000

  	
   

  
	
   

  	
   

  	
  Loading
  Dock

  	
   

  	
  2,265,000

  	
   

  
	
   

  	
   

  	
  Consortium
  Utilities

  	
   

  	
  440,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Adjustments

  	
   

  	
  $

  	
  4,255,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Net
  Terminal Building Cost

  	
   

  	
  $

  	
  51,345,537

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V1.G.1.c.

  	
   

  	
  Total
  Rentable Space

  	
   

  	
  $

  	
  1,088,393

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal
  Building Rental Rate per Square Foot for Unjanitored Space

  	
   

  	
  $

  	
  47.176

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terminal
  Airlines R & R Fund Surcharge Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Capital
  Outlays/Deposit to Rehab & Replacement Fund

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
   

  	
   

  	
  Weighted
  Average Airline Rentable Space (Janitored and Unjanitored)

  	
   

  	
  570,000

  	
   

  
	
   

  	
   

  	
  Surcharge
  Amount

  	
   

  	
  $

  	
  10.526

  	
   

  

 

59

 

EXHIBIT 3 - REVISED EXHIBIT N

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Terminal Building Rental Rate (Janitored and Unjanitored
Space)

 

	
   

  	
   

  	
  Janitored
  Space Rate Calculation

  	
   

  	
   

  	
   

  
	
  V1.G.2.

  	
   

  	
  Total
  Direct Janitored Operation and Maintenance Expenses

  	
   

  	
  $

  	
  5,800,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Janitored Space (1)

  	
   

  	
  975,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Janitored
  Rate per Square Foot

  	
   

  	
  $

  	
  5.949

  	
   

  
	
   

  	
   

  	
  Terminal
  Building Rental Rate per Square Foot for Unjanitored Space (Above)

  	
   

  	
  $

  	
  47.176

  	
   

  
	
   

  	
   

  	
  Terminal
  Building Rental Rate per Square Foot for Janitored Space

  	
   

  	
  $

  	
  53.125

  	
   

  

 

(1)
Excludes MAC and mechanical space.

 

60

 

EXHIBIT 3 - REVISED EXHIBIT N

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Carrousel and Conveyor Charge

 

	
  Article

  Reference

  	
   

  	
   

  	
   

  	
  200x

  	
   

  
	
  V1.H.1.

  	
   

  	
  Direct
  and Indirect Maintenance Depreciation Charges

  	
   

  	
  $

  	
  250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct
  and Indirect Debt Service

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Direct
  and Indirect Cost of Capital Outlays/Leases

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  250,000

  	
   

  

 

61

 

EXHIBIT 3 - REVISED EXHIBIT N

 

Metropolitan Airports Commission

Minneapolis-St. Paul International Airport

Illustration of Calculation of Rates for Rents, Fees and Charges

Calculation of Airline Cost Per Enplaned Passenger

 

	
   

  	
   

  	
  Actual

  200x

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Landing Fees-Signatory

  	
   

  	
  $

  	
  36,000,000

  	
   

  
	
  Landing Fees-HHH Nonsignatory

  	
   

  	
  70,000

  	
   

  
	
  Landing Fees-Commuter Nonsignatory

  	
   

  	
  650,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ramp Fees-Signatory

  	
   

  	
  4,410,000

  	
   

  
	
  Ramp Fees-HHH Nonsignatory

  	
   

  	
  15,000

  	
   

  
	
  Ramp Fees-Commuter Nonsignatory

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Terminal Building

  	
   

  	
  33,920,000

  	
   

  
	
  IAF Charges

  	
   

  	
  2,850,000

  	
   

  
	
  Carrousels & Conveyors

  	
   

  	
  205,000

  	
   

  
	
  Old Portion of G Concourse

  	
   

  	
  421,000

  	
   

  
	
  Lobby Fees

  	
   

  	
  6,210,000

  	
   

  
	
  FIS Surcharge

  	
   

  	
  880,000

  	
   

  
	
  HHH Terminal Building Rent

  	
   

  	
  640,000

  	
   

  
	
  Concessions Rebate

  	
   

  	
  (9,100,000

  	
  )

  
	
  Apron Fees – HH Terminal

  	
   

  	
  500,000

  	
   

  
	
  Apron Fees - Commuter

  	
   

  	
  —

  	
   

  
	
  Police/Fire/Admin. – G Concourse

  	
   

  	
  700,000

  	
   

  
	
  Steam/Chilled Water – G Concourse

  	
   

  	
  900,000

  	
   

  
	
  Janitorial – G Concourse

  	
   

  	
  700,000

  	
   

  
	
  Self-Liquidating – C/G Concourse

  	
   

  	
  1,592,000

  	
   

  
	
  Total Costs

  	
   

  	
  $

  	
  81,563,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Enplaned Passengers

  	
   

  	
  17,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Airline Cost Per Enplaned Passenger

  	
   

  	
  $

  	
  4.798

  	
   

  

 

62

 

EXHIBIT 4

 

ASSUMED AGREEMENTS

 

NWA Assumption of Agreements and Survival of Obligations

 

1.                                       All Executory
contracts that were entered into in connection with the GO15 and GO13 Bonds,
excluding adequate protection stipulations

 

2.                                       All other
obligations and agreements related to the GO 15 and GO 13 Bonds including but
not limited to all guaranties, security agreements, mortgages and other
documents shall remain unimpaired and fully enforceable following assumption of
the GO 15 and GO 13 executory contracts

 

3.                                       Airline
Operating Agreement and Terminal Building Lease dated as of January 1,
1999 (as amended)

 

4.                                       Main Base
Agreement dated as of March 5, 1956 as amended (a.k.a. Building B Lease)

 

5.                                       Republic
Airlines, Inc. Main Base Lease and Agreement dated as of December 19,
1966 as amended (a.k.a. Building C Lease)

 

6.                                       Lease Agreement
dated as of October 6, 1969 as amended (a.k.a. Building F Lease)

 

7.                                       Runway 12R
De-Icing Operations Center Site Agreement dated as of December 2003

 

8.                                       Runway 30R
De-Icing Operations Center Agreement dated as November 2001

 

9.                                       Deicing
Operations Center Agreement dated as of April 1998 as amended (a.k.a. 12L
Deicing Operations Center Lease)

 

10.                                 Runway 17/35 Glycol
Reclamation Facility Agreement dated as of August 2004.

 

11.                                 Lease and Fuel Agreement as
Restated and Amended for Aviation Fuel Facilities dated February 1, 2005.

 

63

 

EXHIBIT 5

 

EXHIBIT V

 

Same as Third Amendment.

 

64

 

EXHIBIT 6

 

EXHIBIT W

 

Memorandum of Understanding

For Ground Handling on Lindbergh Terminal FIS
Gates

 

This
Memorandum of Understanding (“MOU”) is made the                            day
of           , 2006,
between the Metropolitan Airports Commission, a public corporation of the State
of Minnesota (“MAC”),                     (insert
airline name)          authorized
to do business in the State of Minnesota (“AIRLINE”), and Northwest Airlines, Inc.,
a Minnesota corporation authorized to do business in the State of Minnesota (“Northwest”).

 

WHEREAS,
the parties to this MOU desire to establish the terms and conditions by which
AIRLINE permitted to contract with a 3rd party for the provision of
ground handling services while operating from the Lindbergh Terminal of the
Minneapolis-St. Paul International Airport (“Airport).

 

NOW,
THEREFORE, in consideration of the foregoing and mutual promises and covenants set
forth, the parties hereby agree as follows:

 

1.             Background
Information

 

AIRLINE
has requested from MAC the ability to contract with a 3rd party
ground handling company (“Ground Handling Company”) for the provision of
below-wing ground handling services for its international operations which
occur on Gates G1-G10 of the Lindbergh Terminal (the “Gates”).

 

2.              Airline
Operating Agreement & Terminal Building Lease

 

Pursuant
to the Airline Operating Agreement and Terminal Building Lease (“Airline
Agreement”) that both AIRLINE and Northwest have separately entered into with
the MAC, Airlines operating on the Gates have the option to either self-handle
or utilize Northwest for below-wing ground handling services.  However, MAC, AIRLINE, and Northwest would
like to establish alternate terms and conditions by which AIRLINE is permitted
to contract with a Ground Handling Company for the provision of below-wing
ground handling services at the Gates without amending the Airline Agreement.

 

3.              Effective
Date & Term

 

The
effective date of this MOU shall be                                              .

 

This
MOU is terminable by any party providing 90 days advance written notice to the
other two parties in accordance with this MOU.

 

4.             MAC
Commitments

 

A.                                   Ensure the Ground Handling Company
selected by AIRLINE executes and adheres to all of the requirements of MAC’s
Limited Airside Services License.  This
License establishes the insurance, indemnification, environmental, and
financial requirements for operating at the Airport consistent with AIP grant
assurances.

 

B.                                     Assist AIRLINE and Northwest with
ensuring the Ground Handling Company operates within the parameters established
by this MOU and the Limited Airside Services License.

 

65

 

C.                                     Assist with ensuring AIRLINE is provided
access to FIS accessible gates in accordance with the Airline Agreement.

 

D.                                    In the event an aircraft is not able to
depart the gate within the two hour limit for narrow-body aircraft and the
three hour limit for wide-body aircraft identified in Section 5.D. and
Northwest is requiring use of the gate, MAC shall to the best of its ability
assist AIRLINE in relocation of the aircraft to either another gate location
designated by Northwest or to a remote parking area designated by MAC or MAC’s
agent.

 

E.                                      Establish ticket counters and outbound
baggage belt access for AIRLINE and the Ground Handling Company independent of
ticket counters and baggage belts occupied by Northwest.

 

5.                                      AIRLINE
Commitments

 

A.                                   Provide in
advance Northwest and MAC with AIRLINE’s schedule on a monthly basis and the
specific time in advance of the aircraft arrival that AIRLINE requests the
Ground Handling Company to be allowed to stage equipment on the Northwest
designated gate.  In most cases, Gate TBD
shall be the gate designated by Northwest; however this gate assignment is
subject to change by Northwest based on the operating conditions of any given
day.

 

B.                                     Provide
Northwest with as much notice as possible of aircraft arrival and departure
time changes that occur for various reasons on a day-to-day basis to ensure
proper access to gates and the FIS bag room.

 

C.                                     To the best of
AIRLINE’s ability, ensure only ground handling equipment incidental to the
servicing of its aircraft operations may be positioned on the ramp adjacent to
the applicable gate.  Equipment may be
staged on the gate no more than 20 minutes in advance of aircraft arrival and
must be removed promptly upon departure of the aircraft.

 

D.                                    To the best of
AIRLINE’s ability, ensure its aircraft does not remain on the gate after
arrival any longer than two hours for narrow-body aircraft and three hours for
wide-body aircraft.  In the event an
aircraft is not able to depart the gate within the applicable two or three hour
limit and Northwest is requiring use of the gate, AIRLINE shall relocate the
aircraft to either another gate location designated by Northwest or to a remote
parking area designated by MAC or MAC’s agent. 
AIRLINE shall be responsible for the cost of parking its aircraft on
another gate designated by Northwest or within a remote parking area designated
by MAC.

 

E.                                      AIRLINE assumes
responsibility for its above-wing operations through use of AIRLINE’s employees
or a 3rd party handler.

 

F.                                      AIRLINE shall
secure ticket counter and outbound baggage areas from MAC and shall be
responsible for all costs relating to the use of or construction of such areas.

 

G.                                     AIRLINE shall
pay MAC all fees related to its use of a gate and the FIS facility as required
by the Airline Agreement.

 

H.                                    In the event
Airline exercises its rights pursuant to Section III.C.3 of the 2007A
Amendment, AIRLINE agrees to indemnify, defend, save and hold harmless
MAC and Northwest and their respective Commissioners, officers,
and employees (collectively, “Indemnitees”) from and against any and all
liabilities, losses, damages, suits, actions, claims, judgments, settlements,
fines or demands of any person other than an Indemnitee arising by reason of
injury or death of any person, or damage to any property, including all 

 

66

 

reasonable costs for investigation and defense
thereof (including but not limited to attorneys’ fees, court costs, and expert
fees), of any nature whatsoever arising out of or incident to the use or
occupancy of, or operations of AIRLINE at or about the Gates unless such
injury, death or damage is caused by (i) the negligent act or omission of
an Indemnitee whether separate or concurrent with negligence of others,
including AIRLINE.  MAC and Northwest shall give AIRLINE reasonable
notice of any such claims or actions. In indemnifying or defending MAC and
Northwest, AIRLINE shall use legal counsel reasonably acceptable to
MAC and Northwest and shall control the defense of such claim or action

 

6.             Northwest Commitments

 

A.                                   AIRLINE will
have gate access in accordance with Article III. of the Airline Agreement.

 

B.                                     To the best of
Northwest’s ability, the gate designated for AIRLINE’s operation shall be clear
of Northwest’s equipment and accessories 30 minutes in advance of the AIRLINE’s
scheduled arrival.

 

C.                                     To the best of
Northwest’s ability, neither Northwest nor its equipment shall prevent the
Ground Handling Company from reasonable use of and access to the FIS bag room
in accordance with this MOU.

 

7.             Notices

 

All notices and
other communications under this Agreement shall be effective two (2) business
days after deposit with the United States Postal Service, first class, postage
prepaid, or when hand delivered or transmitted by facsimile, and shall be in
writing and addressed to the parties at the following addresses:

 

	
  To Northwest:

  	
  Northwest
  Airlines, Inc.

  
	
   

  	
  2700 Lone Oak Parkway
  (Dept. A1135)

  
	
   

  	
  Eagan, MN 55121-1534

  
	
   

  	
  Fax No. (612)
  727-6041

  
	
   

  	
  Attention: Vice President
  - Facilities & Airport Affairs

  
	
   

  	
   

  
	
  To AIRLINE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  To MAC:

  	
  Metropolitan Airports
  Commission

  
	
   

  	
  6040 28th
  Avenue South

  
	
   

  	
  Minneapolis, MN 55450

  
	
   

  	
  Attn: Director, Commercial
  Management & Airline Affairs

  

 

Either party may change the address at which notice is to be made by
providing notice of the change to the other party, in writing, in the manner
provided for in this Section 6.

 

8.             Governing Law

 

This Agreement shall be governed by and construed in accordance with
the laws of the State of Minnesota.

 

67

 

9.             Integration; Amendment and Modification

 

This Agreement
embodies the entire agreement between the parties hereto relative to the
subject matter hereof and shall not be modified, changed or altered in any
respect except in writing.

 

10.          Counterparts

 

This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which shall constitute one
agreement.

 

IN WITNESS WHEREOF, the parties hereto
signed and executed this instrument the day and year first above written, but
effective as of the date set forth in Article 3.

 

 

	
  Date:

  	
                                   

  	
  , 2007

  	
  METROPOLITAN AIRPORTS COMMISSION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
                                   

  	
  , 2007

  	
  AIRLINE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
                                 

  	
  , 2007

  	
  NORTHWEST AIRLINES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

68

 

EXHIBIT 7

 

EXHIBIT W

 

Memorandum of Understanding

For Ground Handling on Lindbergh Terminal FIS
Gates

 

This
Memorandum of Understanding (“MOU”) is made the                day
of             ,
2006, between the Metropolitan Airports Commission, a public corporation of the
State of Minnesota (“MAC”),                       (insert
airline name)                        authorized
to do business in the State of Minnesota (“AIRLINE”), and Northwest Airlines, Inc.,
a Minnesota corporation authorized to do business in the State of Minnesota (“Northwest”).

 

WHEREAS,
the parties to this MOU desire to establish the terms and conditions by which
AIRLINE permitted to contract with a 3rd party for the provision of
ground handling services while operating from the Lindbergh Terminal of the
Minneapolis-St. Paul International Airport (“Airport).

 

NOW,
THEREFORE, in consideration of the foregoing and mutual promises and covenants
set forth, the parties hereby agree as follows:

 

1.                                      Background
Information

 

AIRLINE
has requested from MAC the ability to contract with a 3rd party
ground handling company (“Ground Handling Company”) for the provision of
below-wing ground handling services for its international operations which
occur on Gates G1-G10 of the Lindbergh Terminal (the “Gates”).

 

2.                                      Airline
Operating Agreement & Terminal Building Lease

 

Pursuant
to the Airline Operating Agreement and Terminal Building Lease (“Airline
Agreement”) that both AIRLINE and Northwest have separately entered into with
the MAC, Airlines operating on the Gates have the option to either self-handle
or utilize Northwest for below-wing ground handling services.  However, MAC, AIRLINE, and Northwest would
like to establish alternate terms and conditions by which AIRLINE is permitted
to contract with a Ground Handling Company for the provision of below-wing
ground handling services at the Gates without amending the Airline Agreement.

 

3.                                      Effective
Date & Term

 

The
effective date of this MOU shall be                                                 .

 

This
MOU is terminable by any party providing 90 days advance written notice to the
other two parties in accordance with this MOU.

 

4.                                      MAC
Commitments

 

A.                                   Ensure the Ground Handling Company
selected by AIRLINE executes and adheres to all of the requirements of MAC’s
Limited Airside Services License.  This
License establishes the insurance, indemnification, environmental, and
financial requirements for operating at the Airport consistent with AIP grant
assurances.

 

B.                                     Assist AIRLINE and Northwest with
ensuring the Ground Handling Company operates within the parameters established
by this MOU and the Limited Airside Services License.

 

C.                                     Assist with ensuring AIRLINE is provided
access to FIS accessible gates in accordance with the Airline Agreement.

 

69

 

D.            In the event an aircraft is not able to depart
the gate within the two hour limit for narrow-body aircraft and the three hour
limit for wide-body aircraft identified in Section 5.D. and Northwest is
requiring use of the gate, MAC shall to the best of its ability assist AIRLINE
in relocation of the aircraft to either another gate location designated by
Northwest or to a remote parking area designated by MAC or MAC’s agent.

 

E.             Establish ticket counters and outbound baggage
belt access for AIRLINE and the Ground Handling Company independent of ticket
counters and baggage belts occupied by Northwest.

 

5.             AIRLINE
Commitments

 

A.            Provide in
advance Northwest and MAC with AIRLINE’s schedule on a monthly basis and the
specific time in advance of the aircraft arrival that AIRLINE requests the
Ground Handling Company to be allowed to stage equipment on the Northwest
designated gate.  In most cases, Gate TBD
shall be the gate designated by Northwest; however this gate assignment is
subject to change by Northwest based on the operating conditions of any given
day.

 

B.            Provide
Northwest with as much notice as possible of aircraft arrival and departure
time changes that occur for various reasons on a day-to-day basis to ensure
proper access to gates and the FIS bag room.

 

C.            To the best of
AIRLINE’s ability, ensure only ground handling equipment incidental to the
servicing of its aircraft operations may be positioned on the ramp adjacent to
the applicable gate.  Equipment may be
staged on the gate no more than 20 minutes in advance of aircraft arrival and
must be removed promptly upon departure of the aircraft.

 

D.            To the best of
AIRLINE’s ability, ensure its aircraft does not remain on the gate after
arrival any longer than two hours for narrow-body aircraft and three hours for
wide-body aircraft.  In the event an
aircraft is not able to depart the gate within the applicable two or three hour
limit and Northwest is requiring use of the gate, AIRLINE shall relocate the
aircraft to either another gate location designated by Northwest or to a remote
parking area designated by MAC or MAC’s agent. 
AIRLINE shall be responsible for the cost of parking its aircraft on
another gate designated by Northwest or within a remote parking area designated
by MAC.

 

E.             AIRLINE assumes
responsibility for its above-wing operations through use of AIRLINE’s employees
or a 3rd party handler.

 

F.             AIRLINE shall
secure ticket counter and outbound baggage areas from MAC and shall be
responsible for all costs relating to the use of or construction of such areas.

 

G.            AIRLINE shall
pay MAC all fees related to its use of a gate and the FIS facility as required
by the Airline Agreement.

 

H.            In the event
Airline exercises its rights pursuant to Section III.C.3 of the 2007A
Amendment, AIRLINE agrees to indemnify, defend, save and hold harmless
MAC and Northwest and their respective Commissioners, officers,
and employees (collectively, “Indemnitees”) from and against any and all
liabilities, losses, damages, suits, actions, claims, judgments, settlements,
fines or demands of any person other than an Indemnitee arising by reason of
injury or death of any person, or damage to any property, including all
reasonable costs for investigation and defense thereof (including but not
limited to attorneys’ fees, court costs, and expert fees), of any nature
whatsoever arising out of or incident to the use or occupancy of, or
operations of AIRLINE at or about the Gates unless such injury, death or
damage is caused by (i) the negligent act or omission of an Indemnitee
whether 

 

70

 

separate or concurrent with negligence of others,
including AIRLINE.  MAC and Northwest shall give AIRLINE reasonable
notice of any such claims or actions. In indemnifying or defending MAC and
Northwest, AIRLINE shall use legal counsel reasonably acceptable to
MAC and Northwest and shall control the defense of such claim or action.

 

6.             Northwest Commitments

 

A.            AIRLINE will
have gate access in accordance with Article III. of the Airline Agreement.

 

B.            To the best of
Northwest’s ability, the gate designated for AIRLINE’s operation shall be clear
of Northwest’s equipment and accessories 30 minutes in advance of the AIRLINE’s
scheduled arrival.

 

C.            To the best of
Northwest’s ability, neither Northwest nor its equipment shall prevent the
Ground Handling Company from reasonable use of and access to the FIS bag room
in accordance with this MOU.

 

7.             Notices

 

All notices and
other communications under this Agreement shall be effective two (2) business
days after deposit with the United States Postal Service, first class, postage
prepaid, or when hand delivered or transmitted by facsimile, and shall be in
writing and addressed to the parties at the following addresses:

 

	
  To Northwest:

  	
  Northwest
  Airlines, Inc.

  
	
   

  	
  2700 Lone Oak Parkway
  (Dept. A1135)

  
	
   

  	
  Eagan, MN 55121-1534

  
	
   

  	
  Fax No. (612)
  727-6041

  
	
   

  	
  Attention: Vice President
  - Facilities & Airport Affairs

  
	
   

  	
   

  
	
  To AIRLINE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  To MAC:

  	
  Metropolitan Airports
  Commission

  
	
   

  	
  6040 28th
  Avenue South

  
	
   

  	
  Minneapolis, MN 55450

  
	
   

  	
  Attn: Director, Commercial
  Management & Airline Affairs

  

 

Either party may change the address at which notice is to be made by
providing notice of the change to the other party, in writing, in the manner
provided for in this Section 6.

 

8.             Governing Law

 

This Agreement shall be governed by and construed in accordance with
the laws of the State of Minnesota.

 

9.             Integration; Amendment and Modification

 

This Agreement
embodies the entire agreement between the parties hereto relative to the
subject matter hereof and shall not be modified, changed or altered in any respect
except in writing.

 

10.          Counterparts

 

This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which shall constitute one
agreement.

 

71

 

IN WITNESS WHEREOF, the parties hereto
signed and executed this instrument the day and year first above written, but
effective as of the date set forth in Section 3.

 

 

	
  Date:

  	
   

  	
  , 2007

  	
  METROPOLITAN AIRPORTS COMMISSION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  , 2007

  	
  AIRLINE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  , 2007

  	
  NORTHWEST AIRLINES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

72EXHIBIT 10.22

 

FORM OF

NORTHWEST AIRLINES CORPORATION

INDEMNIFICATION AGREEMENT

 

          THIS INDEMNIFICATION AGREEMENT, dated as of
this 13th day of February, 2008 by and between NORTHWEST AIRLINES
CORPORATION, a Delaware corporation (the “Company”) and
                              
(“Indemnitee”).

 

RECITALS

 

     A.     Indemnitee
is a director or executive officer of the Company and in such capacity is
performing valuable services for the Company.

 

     B.     The
Company and Indemnitee recognize the difficulty in obtaining directors’ and
officers’ liability insurance, the significant cost of such insurance and the
periodic reduction in the coverage of such insurance.

 

     C.     The
Company and Indemnitee further recognize the substantial increase in litigation
subjecting directors and officers to expensive litigation risks at the same
time such liability insurance is being severely limited.

 

     D.     The
Company has adopted and its stockholders have approved the Amended and Restated
Certificate of Incorporation of the Company providing for the indemnification
of the Company’s directors and officers to the fullest extent permitted by the
laws of the State of Delaware.

 

     E.     The
Amended and Restated Certificate of Incorporation of the Company and the
Delaware General Corporation Law specifically provide that they are not
exclusive, and they expressly contemplate that contracts may be entered into
between the Company and its directors and officers with respect to
indemnification of such directors and officers.

 

     F.     The
Board of Directors of the Company has determined that (1) it is in the
best interests of the Company’s stockholders that the Company act to assure
Indemnitee that there will be increased certainty of protection in the future,
and that (2) it is reasonable, prudent and necessary for the Company
contractually to obligate itself to indemnify Indemnitee to the fullest extent
permitted by applicable law, including Section 145 of the Delaware General
Corporation Law, as in effect from time to time so that Indemnitee will
continue to serve the Company free from undue concern that Indemnitee will not
be so indemnified.

 

AGREEMENTS

 

1.     Definitions. For
purposes of this Agreement:

 

     1.1  “Board” means the Board of Directors of the
Company.

 

1

 

     1.2  “Certificate’ means the Amended and Restated
Certificate of Incorporation of the Company, as it may be amended from time to
time.

 

     1.3  “Change in Control” means the occurrence of
any of the following: (1) the direct or indirect sale, transfer,
conveyance or other disposition (other than by way of merger or consolidation),
in one or a series of related transactions, of all or substantially all of the
properties or assets of the Company and its subsidiaries taken as a whole to
any “person” (as that term is used in Section 13(d)(3) of the
Exchange Act, or any successor provision); (2) the adoption of a plan
relating to the liquidation or dissolution of the Company; (3) the consummation
of any transaction (including, without limitation, any merger or consolidation)
the result of which is that any “person” (as defined above), becomes the
beneficial owner (as the term is defined in Rule 13d-3 and Rule 13d-5
under the Exchange Act, or any successor provisions), directly or indirectly,
of more than 50% of the voting stock of the Company that is entitled to vote in
the election of the board of directors (measured by voting power rather than
number of shares); or (4) the first day on which a majority of the members
of the Board are not Continuing Directors.

 

     1.4  “Continuing Directors” means, as of any date
of determination, any member of the Board who: (1) was a member of such
Board on the date of this Agreement, or (2) was nominated for election or
elected to such Board with the approval of a majority of the Continuing
Directors who were members of such Board at the time of such nomination or
election.

 

     1.5  “Damages” means any and all losses, claims,
damages, liabilities or Expenses, including, without limitation, attorneys’
fees, judgments, fines, ERISA excise taxes or penalties, witness fees, amounts
paid in settlement and other Expenses incurred in connection with a Proceeding
(including all interest, assessments and other charges paid or payable in
connection with or in respect of such Damages).

 

     1.6  “DGCL” means the Delaware General Corporation
Law.

 

     1.7  “Disinterested Directors” means those
directors of the Company who are not and were not parties to the Proceeding in
respect of which indemnification is sought by Indemnitee.

 

     1.8  “Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

     1.9  “Expense Advance” means the advance by the
Company of Expenses incurred by Indemnitee in any Proceeding, as such Expenses
are incurred, and in advance of such Proceeding’s final disposition.

 

     1.10  “Expenses” include attorneys’ fees and all
other costs of any type or nature whatsoever, including any and all expenses
and obligations paid or incurred in connection with investigating, defending,
being a witness in, participating in (including on appeal), or preparing to
defend, be a witness in or participate in any Proceeding or establishing or
enforcing a right to indemnification under this Agreement.

 

     1.11  “Independent Counsel” means an attorney, a
law firm, or a member of a law firm who (or which) is experienced in legal
matters relating to indemnification of directors and officers 

 

2

 

and
at the time retained neither then is, nor in the prior five years has been,
retained to represent: (i) the Company or Indemnitee in any other matter
material to either such party; or (ii) any other party to the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Indemnitee in
an action to determine Indemnitee’s rights under this Agreement.

 

     1.12  “Proceeding” means any event or occurrence
and any completed, actual, pending or threatened action, suit, claim or
proceeding (including any arbitration or alternative dispute resolution
proceeding), whether civil, criminal, administrative or investigative
(including an action by or in the right of the Company) and whether formal or
informal, in which Indemnitee is, was or becomes involved (including as a
witness) by reason of the fact that Indemnitee is or was a director, or
officer, of the Company or any of its subsidiaries or that Indemnitee is or was
serving at the request of the Company as a director or officer, of another
corporation or as a manager/member of a limited liability company or as a
partner, trustee or agent of a partnership joint venture, trust or other
enterprise, including service with respect to an employee benefit plan, whether
the basis of such proceeding is alleged action (or inaction) by Indemnitee in
an official capacity as such director, officer/manager/member, partner, trustee
or agent or in any other capacity while serving as a director,
officer/manager/member, partner, trustee or agent; provided, however, that,
except with respect to an action to enforce the provisions of this Agreement,
prior to a Change of Control”, “Proceeding” shall not include any action, suit,
claim or proceeding including any counter claim, cross claim or third-party
claim instituted by or at the direction of Indemnitee, unless such action,
suit, claim or proceeding is or was authorized by the Board.

 

     1.13
“SEC” means the Securities and Exchange Commission.

 

2.     Agreement to Serve.
In consideration of the protection afforded by this Agreement, Indemnitee
agrees to continue to serve in his or her capacity as a director or executive
officer of the Company at the will of the Company (or under separate agreement,
if such agreement exists) so long as he or she is duly appointed or elected and
qualified in accordance with the applicable provisions of the Company’s or any
of its subsidiaries organizational documents or until such time as he or she
tenders his or her resignation in writing. Nothing contained in this Agreement
is intended to create in Indemnitee any right to continue employment.

 

3.     Indemnity Of Indemnitee.

 

     3.1  Scope.
The Company hereby agrees to indemnify Indemnitee and to hold Indemnitee free
and harmless from any and all Damages in connection with any Proceeding, to the
fullest extent permitted by law, notwithstanding that the basis for such
indemnification is not specifically enumerated in this Agreement, the
Certificate, the DGCL, any other statute or otherwise. In the event of any
change, after the date of this Agreement, in any applicable law, the DGCL or rule regarding
the right of a Delaware corporation to indemnify a member of its board of
directors or an officer, such change, to the extent it would expand Indemnitee’s
rights hereunder, shall be included within Indemnitee’s rights and the Company’s
obligations hereunder, and, to the extent it would narrow Indemnitee’s rights
or the Company’s obligations hereunder, shall be excluded from this Agreement;
provided, however, that any change required by applicable laws, the 

 

3

 

DGCL,
any statute, rule or regulation which is fully and finally determined by a
court of competent jurisdiction to be applied to this Agreement shall be so
applied regardless of whether the effect of such change is to narrow Indemnitee’s
rights or the Company’s obligations hereunder.

 

     3.2  Nonexclusivity.
The indemnification provided by this Agreement shall not be deemed exclusive of
any rights to which Indemnitee may be entitled under the Certificate, any
agreement, any vote of stockholders or Disinterested Directors, the DGCL or
otherwise, whether as to action in Indemnitee’s official capacity or otherwise.

 

     3.3  Procedure
For Determination Of Entitlement To Indemnification.

 

          (a) Submission
of Request For Indemnification. To obtain indemnification under this
Agreement in connection with any Proceeding, and for the duration thereof,
Indemnitee shall submit to the Company a written request, including therein or
therewith such documentation and information as is reasonably available to
Indemnitee and is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification. The Secretary of the Company shall,
promptly upon receipt of any such request for indemnification, advise the Board
in writing that Indemnitee has requested indemnification.

 

          (b) Presumption
of Right to Indemnification. It shall initially be presumed in all cases
that Indemnitee is entitled to indemnification, that Indemnitee may establish a
conclusive presumption of any fact necessary to such a determination by
delivering to the Company a declaration made under penalty of perjury that such
fact is true, unless the Company shall deliver to Indemnitee a written notice
stating that the Company believes that a determination is required under
applicable law pursuant to Section 3.3(c) as to whether Indemnitee is
entitled to indemnification hereunder, and the Company is promptly and
diligently proceeding with such determination. In such case, such notice will
be given to Indemnitee within thirty (30) days after the Company’s receipt of
Indemnitee’s initial written request for indemnification. If the Company does
not give such notice within such thirty (30) day period, Indemnitee shall be
conclusively presumed to be entitled to indemnification hereunder, and in such
case the Company hereby agrees, to the fullest extent permitted by law, not to
assert otherwise.

 

          (c) Determination
of Right. If the DGCL or applicable case law requires that a determination
of Indemnitee’s entitlement to indemnification be made as a condition to
Indemnification under this Agreement, then upon written request by Indemnitee
for indemnification, such determination shall be made:

 

               (i) if
a Change in Control shall have occurred, by Independent Counsel, unless
Indemnitee shall request that such determination be made by the Board or the
stockholders, in which case such determination shall be made in the manner
provided for in clause (ii) of this Section 3.3(c), provided,
however, that if such determination shall have been made by Independent
Counsel, a copy of such written opinion shall be delivered to Indemnitee; or

 

               (ii) if
a Change of Control shall not have occurred, (A) by the Board by a
majority vote of Disinterested Directors (even though less than a quorum) or (B) if
such Disinterested Directors so direct, either (x) by a committee of
Disinterested Directors, (y) by Independent 

 

4

 

Counsel
in a written opinion to the Board, a copy of which shall be delivered to
Indemnitee, or (z) by the stockholders of the Company, as determined by
such quorum of Disinterested Directors, or a quorum of the Board, as the case
may be.

 

In
either case, such determination shall be made within sixty (60) days of
Indemnitee’s request for indemnification. The cost of any solicitation of the
stockholders by the Company to obtain a determination under this Section 3.3
shall be paid by the Company. The Company may, at its option and pursuant to
the determination under this Section 3.3(c), defer a decision on whether
Indemnitee is entitled to indemnification or the amount of indemnification to
which Indemnitee is entitled, if it believes, in good faith, that additional
progress in the Proceeding is necessary before such final determination is
made, provided that the Company provides Indemnification to the extent of
Expense Advances, subject to Section 4.2, during such time as it defers
such determination.

 

          (d) Payment;
Cooperation. If Indemnitee is entitled to Indemnification pursuant to Section 3.3(b) or
pursuant to a determination under Section 3.3(c), payment to Indemnitee
shall be made within thirty (30) days after entitlement or a determination of
entitlement, as the case may be.  Payment
of Expense Advances pending any final determination of entitlement shall be
made in each case within thirty (30) days of request therefor.  Indemnitee shall cooperate with the person,
persons or entity making any determination if such determination is required
under Section 3.3 (c), including without limitation providing to such
person, persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and
which is reasonably available to Indemnitee and reasonably necessary to such
determination. Any costs or expenses (including attorneys’ fees and
disbursements) incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom.

 

          (e) Selection
of Independent Counsel. If Independent Counsel is required pursuant to Section 3.3(c),
such Independent Counsel shall be selected as follows: (i) if a Change of
Control shall not have occurred, Independent Counsel shall be selected by the
Board and approved by the Indemnitee (which approval shall not be unreasonably
withheld); or (ii) if a Change of Control shall have occurred, Independent
Counsel shall be selected by Indemnitee (unless Indemnitee shall request that
such selection be made by the Board, in which event (i) shall apply), and
Indemnitee shall give written notice to the Company advising it of the identity
of Independent Counsel so selected. The Company may, within seven (7) days
after such written notice of selection shall have been given, deliver to the
Indemnitee a written objection to such selection. Such objection may be
asserted only on the ground that Independent Counsel so selected does not meet
the requirements of Independent Counsel as defined herein and the objection
shall set forth with particularity the factual basis of such assertion. If such
written objection is made, Independent Counsel so selected may not serve as
Independent Counsel unless and until a court has determined that such objection
is without merit. If, within ten (10) days after submission by Indemnitee
of a written request for indemnification, no Independent Counsel shall have
been selected and not objected to, either the Company or Indemnitee may
petition the Court of Chancery of the State of Delaware, or any other court of
competent jurisdiction, for resolution of any objection which shall have been
made by the Company or Indemnitee to the other’s selection 

 

5

 

of
Independent counsel and/or for appointment as Independent Counsel of a person selected
by such court or by such other person as such court shall designate, and the
person with respect to whom an objection is so resolved or the person so
appointed shall act as Independent Counsel. The Company shall pay any and all
reasonable fees and Expenses of Independent Counsel incurred by such
Independent Counsel in connection with its actions pursuant to this Agreement,
and the Company shall pay all reasonable fees and Expenses incident to the
procedures of this Section, regardless of the manner in which such Independent
Counsel was selected or appointed.

 

     3.4  Contribution/Partial
Indemnification.

 

          (a) If
the indemnification provided under Section 3.1 is unavailable by reason of
a court decision, based on grounds other than any of those set forth in
paragraphs (b) through (d) of Section 6.1, then, in respect of
any Proceeding in which the Company is jointly liable with Indemnitee (or would
be if joined in such Proceeding), the Company shall contribute to the amount of
Damages (including attorneys’ fees) actually and reasonably incurred and paid
or payable by Indemnitee in such proportion as is appropriate to reflect (i) the
relative benefits received by the Company on the one hand and Indemnitee on the
other from the transaction from which such Proceeding arose and (ii) the
relative fault of the Company on the one hand and of Indemnitee on the other in
connection with the events that resulted in such Damages as well as any other
relevant equitable considerations. The relative fault of the Company on the one
hand and of Indemnitee on the other shall be determined by reference to, among
other things, the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent the circumstances resulting in such Damages.
The Company agrees that it would not be just and equitable if contribution
pursuant to this Section were determined by pro rata allocation or any
other method of allocation that does not take account of the foregoing
equitable considerations.

 

          (b) If
Indemnitee is entitled under any provision of this Agreement to indemnification
by the Company for a portion, but not all, of the Damages, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee
is entitled.

 

     3.5  Survival.  The indemnification and contribution provided
under this Agreement shall apply to any and all Proceedings, notwithstanding
that Indemnitee has ceased to serve the Company or at the request of the
Company, and shall continue so long as Indemnitee shall be subject to any
possible Proceeding, whether civil, criminal or investigative, by reason of the
fact that Indemnitee was a director or officer of the Company or serving in any
other capacity at the request of the Company.

 

4.     Expense Advances.

 

     4.1  Generally.  The right to indemnification conferred by Section 3.1
shall include the right to Expense Advances. Unless and until a determination
shall have been made under applicable law or pursuant to Section 3.3(c) that
Indemnitee is not entitled to indemnification hereunder, then, subject to Section 4.2,
the Company shall provide Expense Advances pending final resolution of the
Proceeding which gave rise to the request for Indemnification. Payment of such
Expense Advances shall be made within thirty (30) days of request therefor. To
the extent permitted under applicable law and prior to the completion of any
Proceeding, if a determination shall have been made that Indemnitee is not
entitled to indemnification hereunder and 

 

6

 

notwithstanding
such determination, Indemnitee commences an Enforcement Action to enforce his
or her right to indemnification hereunder, the Company shall provide Expense
Advances pending resolution of such Enforcement Action.

 

     4.2  Conditions
To Expense Advances.  The
Company’s obligation to provide Expense Advances is subject to the following
conditions:

 

          (a) 
Undertaking.  If the Proceeding
arose in connection with Indemnitee’s service as a director or officer of the
Company, then Indemnitee or Indemnitee’s representative shall have executed and
delivered to the Company an undertaking, which need not be secured and shall be
accepted without reference to Indemnitee’s financial ability to make repayment,
by or on behalf of Indemnitee, to repay all Expense Advances if it shall
ultimately be determined by a final, unappealable decision rendered by a court
having jurisdiction over the parties that Indemnitee is not entitled to be
indemnified by the Company.

 

          (b) 
Cooperation.  Indemnitee shall
give the Company such information and cooperation in the defense of any
Proceeding as the Company may reasonably request and as shall be within
Indemnitee’s power.

 

5.     Procedures For Enforcement.

 

     5.1  Enforcement.  In the event that any claim for indemnity,
whether an Expense Advance or otherwise, is made hereunder and is not paid in
full within sixty (60) days after written notice of such claim is
delivered to the Company, Indemnitee may, but need not, at any time thereafter
bring suit against the Company to recover the unpaid amount of the claim (an “Enforcement
Action”).

 

     5.2  Presumptions
In Enforcement Action.  In any
Enforcement Action, the following presumptions (and limitation on presumptions)
shall apply:

 

          (a) 
Inducement. The Company expressly affirms and agrees that it has entered
into this Agreement and assumed the obligations imposed on it hereunder to
induce Indemnitee to become or to continue as a director or officer of the
Company;

 

          (b)  No
Presumption From Determination. Neither (i) the failure of the Company
(including the Board, Independent Counsel or the Company’s stockholders) to
have made a determination prior to the commencement of the Enforcement Action
that indemnification of Indemnitee is proper in the circumstances; (ii) an
actual determination by the Company, the Board, Independent Counsel or
stockholders that Indemnitee is not entitled to indemnification; or (iii) a
deferral by the Company of a decision on indemnification under Section 3.3(c) shall
be a defense to the Enforcement Action or create a presumption that Indemnitee
is not entitled to indemnification hereunder; and

 

          (c) 
Controlled Subsidiaries.  If
Indemnitee is or was serving as a director or officer of an entity of which a
majority of the shares entitled to vote in the election of its directors is
held by the Company, or in a management capacity in a partnership, limited
liability company, joint venture, trust or other enterprise of which the
Company or a wholly owned subsidiary of the 

 

7

 

Company
is a general partner or has a majority ownership, then Indemnitee shall
conclusively be deemed to be serving in such capacity at the Company’s request.

 

     5.3  Attorneys’
Fees And Expenses For Enforcement Action. In the event Indemnitee is
required to bring an Enforcement Action and if the Indemnitee is successful, in
whole or in part in such Enforcement Action, the Company shall pay all of
Indemnitee’s fees and Expenses in bringing and pursuing the Enforcement Action
(including attorneys’ fees at any stage, including on appeal).

 

     5.4  Indemnitee
Not Required to Pursue Other Remedies. Indemnitee shall not be
required to exercise any rights against any other parties (such as under any
insurance policy purchased by the Company, Indemnitee or any other person or
entity) before Indemnitee enforces this Agreement. However, to the extent the
Company actually indemnifies Indemnitee or advances Expenses, the Company shall
be entitled to enforce any such rights which Indemnitee may have against third
parties. Indemnitee shall assist the Company in enforcing those rights if the
Company pays Indemnitee’s reasonable costs and Expenses of doing so.

 

6.     Limitations On Indemnity; Mutual
Acknowledgment.

 

     6.1  Limitations
On Indemnity.  No indemnity
pursuant to this Agreement shall be provided by the Company:

 

          (a) 
Short-Swing Profits. On account of any suit in which a final, unappealable
judgment is rendered against Indemnitee for an accounting of profits made from
the purchase or sale by Indemnitee of securities of the Company in violation of
the provisions of Section 16(b) of the Exchange Act;

 

          (b) 
Paid By Insurance. For Damages that have been paid directly to
Indemnitee by an insurance carrier under a policy of directors’ and officers’
liability insurance maintained by the Company;

 

          (c)  Unlawful
Payments. With respect to remuneration paid to Indemnitee if it shall be
determined by a final judgment or other final adjudication that such
remuneration was in violation of law;

 

          (d) 
Unlawful Conduct. On account of Indemnitee’s conduct which is finally
adjudged to have been intentional misconduct, a knowing violation of law, a
violation of Section 174 of the DGCL or a transaction from which
Indemnitee derived an improper personal benefit; or

 

          (e) 
Court Determination. If a final decision by a court having jurisdiction
in the matter shall determine that such indemnification is not lawful.

 

     6.2  SEC
Undertaking. Indemnitee understands and acknowledges that the
Company may be required in the future to undertake with the SEC to submit in
certain circumstances the question of indemnification to a court for a
determination of the Company’s right under public policy to indemnify
Indemnitee and Indemnitee agrees that in such event, the Company shall not be 

 

8

 

required
to make any payment hereunder unless and until such matter shall have been so
determined.

 

7.     Notification And Defense Of Claim.

 

     7.1  Notification.
Promptly after receipt by Indemnitee of notice of the commencement of any
Proceeding, Indemnitee shall, if a claim in respect thereof is to be made
against the Company under this Agreement, notify the Company of the
commencement thereof; but the omission so to notify the Company will not,
however, relieve the Company from any liability which it may have to Indemnitee
under this Agreement unless and only to the extent that such omission can be
shown to have materially prejudiced the Company’s position.

 

     7.2  Defense Of
Claim. With respect to any such Proceeding as to which Indemnitee
notifies the Company of the commencement thereof, the Company may participate
therein at its own expense or the Company, jointly with any other indemnifying
party similarly notified, may assume the defense thereof, with counsel
satisfactory to Indemnitee. After notice from the Company to Indemnitee of its
election so to assume the defense thereof, the Company shall not be liable to
Indemnitee under this Agreement for any legal or other Expenses (other than
reasonable costs of investigation) subsequently incurred by Indemnitee in
connection with the defense thereof unless (i) the employment of counsel
by Indemnitee has been authorized by the Company in writing, (ii) Indemnitee
shall have reasonably concluded that there is a conflict of interest between
the Company (or any other person or persons included in the joint defense) and
Indemnitee in the conduct of the defense of such action, or (iii) the
Company shall not, in fact, have employed counsel to assume the defense of such
action, in each of which cases the fees and expenses of counsel shall be at the
Company’s expense. The Company shall not be entitled to assume the defense of
any Proceeding brought by or on behalf of the Company or as to which Indemnitee
shall have reasonably made the conclusion provided for in clause (ii) of
this Section 7.2.

 

     7.3  Settlement
By Indemnitee. The Company shall not be liable to Indemnitee under
this Agreement for any amounts paid in settlement of any Proceeding effected
without its written consent.

 

     7.4  Settlement
By Company. The Company shall not settle any action or claim in any
manner that would impose any penalty or limitation on Indemnitee without
Indemnitee’s written consent.

 

     7.5  Withholding
Consent to Settlement. Neither the Company nor Indemnitee shall
unreasonably withhold its consent to any proposed settlement, provided that
Indemnitee may withhold consent to any settlement that does not provide a
complete release of Indemnitee.

 

8.     Directors’ and Officers’ Liability
Insurance.

 

     8.1  Insurance
Not Required. The Company shall, from time to time, make the good
faith determination whether or not it is practicable for the Company to obtain
and maintain a policy or policies of insurance with reputable insurance
companies providing the officers and directors of the Company with coverage for
losses from wrongful acts, or to ensure the Company’s performance of its
indemnification obligations under this Agreement. Among other 

 

9

 

considerations,
the Company will weigh the costs of obtaining such insurance coverage against
the protection afforded by such coverage. Notwithstanding the foregoing, the
Company shall have no obligation to obtain or maintain such insurance if the
Company determines in good faith that such insurance is not reasonably available,
if the premium costs for such insurance are disproportionate to the amount of
the coverage provided, if the coverage provided by such insurance is limited by
exclusions so as to provide an insufficient benefit, or if Indemnitee is
covered by similar insurance maintained by any entity who Indemnitee was
serving at the request of the Company.

 

     8.2  Notice To
Insurers. If, at the time the Company becomes aware of any claim
which may give rise to an obligation to indemnify Indemnitee hereunder, the Company
has director and officer liability insurance in effect, the Company shall give
prompt notice of such claim to the insurers in accordance with the procedures
set forth in the respective policies. The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such proceeding in accordance
with the terms of such policies.

 

9.     General.

 

     9.1  Notices.
All notices, claims and other communications hereunder shall be in writing and
made by hand delivery, registered or certified mail (postage prepaid, return
receipt requested), facsimile or overnight air courier guaranteeing next-day
delivery:

 

	
   

  	
  If
  to the Company, to:

  
	
   

  	
   

  
	
   

  	
  Northwest
  Airlines Corporation

  
	
   

  	
  2700
  Lone Oak Parkway

  
	
   

  	
  Dept.
  A1180

  
	
   

  	
  Eagan,
  MN 55121

  
	
   

  	
  Attn:
  General Counsel

  
	
   

  	
   

  
	
   

  	
  If
  to Indemnitee, to

  

 

 

 

 

 

or
to such other address as either party may from time to time furnish to the
other party by a notice given in accordance with the provisions of this Section 9.1.
Communications shall be deemed to have been duly given if (i) personally
delivered, at the time delivered, (ii) mailed, five days after deposited
in the mails, registered or certified mail, postage prepaid, (iii) sent by
facsimile transmission, upon confirmation of receipt, and (iv) sent by any
other means, upon receipt.

 

     9.2  Severability.
Nothing in this Agreement is intended to require or shall be construed as
requiring the Company to do or to fail to do any act in violation of applicable
law. The 

 

10

 

Company’s
inability, pursuant to court order, to perform its obligations under this
Agreement shall not constitute a breach of this Agreement. The provisions of
this Agreement shall be severable, and if this Agreement or any portion hereof
is held to be invalid, illegal or unenforceable for any reason whatsoever, (i) the
validity, legality and enforceability of the remaining provisions of the
Agreement (including, without limitation, all portions of any paragraphs of
this Agreement containing any such provision) shall not in any way be affected
or impaired thereby, and (ii) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, all portions of any
paragraph of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

 

     9.3  Choice of
Law. This Agreement shall be interpreted and enforced in accordance
with the laws of the State of Delaware applicable to agreements entered into
and to be fully performed therein.

 

     9.4  Successors
and Assigns. This Agreement shall be binding on Indemnitee and on
the Company and its successors and assigns (including, without limitation, any
direct or indirect successor by purchase or consolidation, any direct or
indirect transferee of all or substantially all of its assets and any successor
by merger or otherwise by operation of law), and shall inure to the benefit of
Indemnitee and Indemnitee’s heirs, personal representatives and assigns and to
the benefit of the Company and its successors and assigns. The Company shall
not effect any sale of substantially all of its assets, merger, consolidation
or other reorganization in which it is not the surviving entity, unless the
surviving entity agrees in writing to assume all such obligations of the
Company under this Agreement.

 

     9.5  Amendments.
No amendment, modification, termination or cancellation of this Agreement shall
be effective unless in writing signed by both parties hereto.

 

     9.6  Headings.
The headings are included in this Agreement for convenience and shall not be
held in interpreting the provisions of this Agreement.

 

     9.7  Presumption.
For purposes of this Agreement, to the fullest extent permitted by law, the
termination of any Proceeding (whether with or without court approval) or conviction,
or upon a plea of nolo contendere, or its equivalent, shall not create a
presumption that Indemnitee did not meet any particular standard or conduct or
have any particular belief or that a court had determined that indemnification
is not permitted by applicable law.

 

     9.8  Subrogation.
In the event of payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall execute all documents required and shall do all acts that may be
necessary to secure such rights and to enable the Company effectively to bring
suit to enforce such rights.

 

     9.9  Gender.
All pronouns contained herein and any variation thereof shall be deemed to
refer to the masculine, feminine or neuter, singular or plural, as the identity
of the parties hereto may require.

 

11

 

     9.10  Integration
and Entire Agreement. This Agreement sets forth the entire
understanding between the parties hereto and supersedes and merges all previous
written and oral negotiations, commitments, understandings and agreements
relating to the subject matter hereof between the parties hereto.

 

     9.11  Limitations
Period. No legal action shall be brought and no cause of action
shall be asserted by or in the right of the Company or any affiliate of the
Company against Indemnitee, Indemnitee’s spouse, heirs, executors or personal
or legal representatives after the expiration of two years from the date of
accrual of such cause of action, and any claim or cause of action of the
Company or its affiliate shall be extinguished and deemed released unless
asserted by the timely filing of a legal action within such two year period;
provided, however, that if any shorter period of limitation is otherwise
applicable to any such cause of action such shorter period shall govern.

 

     9.12  Assumption
of Liability by the Company. If Indemnitee is deceased and is
entitled to indemnification under any provision of this Agreement, the Company
shall indemnify Indemnitee’s estate and his or her spouse, heirs,
administrators and executors against, and the Company shall, and does hereby
agree to assume, any and all Expenses, penalties and fines actually and
reasonably incurred by or for Indemnitee or his or her estate, in connection
with the investigation, defense, settlement or appeal of any such action, suit
or proceeding. Further, when requested in writing by the spouse of Indemnitee,
and/or the heirs, executors and administrators of Indemnitee’s estate, the
Company shall provide appropriate evidence of the Company’s agreement set out
herein, to indemnify Indemnitee against, and to itself assume, such costs,
liabilities and Expenses.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of
the day and year first above written.

 

 

	
  INDEMNITEE:

  	
  NORTHWEST
  AIRLINES 

  
	
   

  	
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  [Signature
  of Indemnitee]

  	
  Title:

  
					

 

 

12

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