Document:

Agreement between CHQ and FA

    EXHIBIT
      10.1

     

     

    

      AGREEMENT

      

      BETWEEN

      

      CHAUTAUQUA
        AIRLINES, INC.

      

      AND
        THE

      

      FLIGHT
        ATTENDANTS

      

      IN
        THE
        SERVICE OF

      

      CHAUTAUQUA
        AIRLINES, INC.

      

      AS
        REPRESENTED BY

      

      THE
        INTERNATIONAL BROTHERHOOD OF TEAMSTERS, AFL-CIO

      
        

 

      

      

      

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
        	
                Table
                  of Contents

              
	
                RECOGNITION
                  AND SCOPE

              	
                3

              
	
                DEFINITIONS

              	
                5

              
	
                COMPENSATION

              	
                9

              
	
                EXPENSES

              	
                12

              
	
                MOVING
                  EXPENSES

              	
                14

              
	
                SCHEDULING

              	
                15

              
	
                VACANCIES

              	
                27

              
	
                CHECK
                  FLIGHT ATTENDANT

              	
                29

              
	
                SENIORITY

              	
                30

              
	
                TRAINING

              	
                31

              
	
                REDUCTION
                  IN FORCE OR FURLOUGH

              	
                33

              
	
                LEAVES
                  OF ABSENCE

              	
                35

              
	
                PHYSICAL
                  STANDARDS

              	
                38

              
	
                INSURANCE
                  

              	
                39

              
	
                TRANSFER
                  TO MANAGEMENT DUTY

              	
                41

              
	
                MISCELLANEOUS
                  FLYING

              	
                42

              
	
                NOTICES
                  TO FLIGHT ATTENDANTS

              	
                43

              
	
                GRIEVANCES

              	
                44

              
	
                SYSTEM
                  BOARD OF ADJUSTMENT

              	
                47

              
	
                UNION
                  MEMBERSHIP

              	
                50

              
	
                UNIFORMS

              	
                51

              
	
                GENERAL

              	
                52

              
	
                NEW
                  EQUIPMENT

              	
                58

              
	
                HOURS
                  OF SERVICE

              	
                59

              
	
                BASES

              	
                62

              
	
                MISSING,
                  INTERNMENT, HOSTAGE OR PRISONER OF WAR BENEFITS

              	
                63

              
	
                SICK
                  LEAVE

              	
                64

              
	
                VACATIONS

              	
                67

              
	
                DURATION

              	
                70

              
	
                ATTENDANCE
                  POLICY

              	
                71

              
	
                LETTERS
                  OF AGREEMENT

              	
                75

              
	 	 

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      

      ARTICLE
        1

      

      RECOGNITION
        AND SCOPE

      

      
        	A.  	
                Pursuant
                  to the certification by the National Mediation Board in Case No.
                  R-6225
                  dated January 3, 1994, Chautauqua Airlines (the Company) recognizes
                  the
                  International Brotherhood of Teamsters, Airline Division (the Union/IBT),
                  as the duly designated and authorized representative of the Flight
                  Attendants in the employ of the Company for the purposes of the
                  Railway
                  Labor Act, as amended. 

              

      

      

      
        	B.  	
                The
                  purpose of this Agreement, in the mutual interest of the Company,
                  the
                  Union, and the Flight Attendants, is to provide for the operation
                  of the
                  Company under methods which will further to the fullest extent
                  possible
                  the safety of air transportation, the efficiency of operation,
                  and the
                  continuation of employment of Flight Attendants under conditions
                  of
                  reasonable working conditions and proper compensation, and the
                  profitability of the Company. It is recognized to be the duty of
                  the
                  Company, the Union, and the Flight Attendants to cooperate fully
                  for the
                  attainment of these purposes. 

              

      

      

      
        	C.  	
                This
                  Agreement supersedes all existing or previously executed agreements
                  by and
                  between the Company and the Union or any other labor organization
                  or
                  individual with respect to the rates of pay, rules, or working
                  conditions
                  specifically covered by the provisions of this Agreement in accordance
                  with the provisions of the Railway Labor Act, as amended. Any and
                  all
                  subsequent agreements between the parties shall be reduced to writing,
                  signed by their authorized representatives, and become a part of
                  this
                  Agreement. 

              

      

      

      
        	D.  	
                Whenever
                  the words “Flight Attendant" are used in this Agreement, they designate
                  and refer only to Flight Attendant(s) covered by this Agreement.
                  It is
                  further recognized that whenever in this Agreement Flight Attendant(s)
                  are
                  referred to in either the masculine or feminine gender, it shall
                  be
                  understood to mean both male and female Flight Attendants.
                  

              

      

      

      
        	E.  	
                In
                  accordance with applicable law, there shall be no discrimination
                  by either
                  party against any Flight Attendant because of age, race, sex, color,
                  religion, union activity, national origin, sexual orientation,
                  handicap or
                  disability that would not prevent them from safely performing the
                  duties
                  of a Flight Attendant. 

              

      

      

      
        	F.  	
                Scope.

              

      

      

      
        	1.  	
                This
                  Agreement covers the Company, any subsidiary of the Company, the
                  Company’s
                  parent, any subsidiary of the Company’s parent and any future airline
                  certificate(s) created as a subsidiary of the Company or subsidiary
                  of the
                  Company’s parent.

              

      

       

      
        	2.  	
                Except
                  as otherwise provided in this Agreement, all present and future
                  cabin
                  passenger service (including that international cabin service which
                  originates or terminates within the United States or its possessions)
                  including all charters or other utilization of aircraft owned or
                  leased by
                  the Company, the Company’s parent or any subsidiary of the Company or
                  subsidiary of the Company’s parent shall be performed by Flight Attendants
                  on the Chautauqua Airlines Flight Attendants’ System Seniority List in
                  accordance with the terms and conditions of this Agreement or any
                  other
                  applicable agreement between the Company, the Company’s parent or any
                  subsidiary of the Company’s parent and the International Brotherhood of
                  Teamsters, Airline Division. 

              

      

      

       

      
        	3.  	
                The
                  Company, Subsidiary of the Company, the Company’s Parent or Subsidiary of
                  the Parent shall not establish any new airline (alter ego or otherwise)
                  or
                  acquire a controlling interest in any carrier whether directly
                  or through
                  the Parent or another Subsidiary of the Parent, and maintain it
                  as a
                  separate carrier to avoid the terms and conditions of this Agreement.
                  A
                  “Controlling Interest” or “Control” means the ownership of an equity
                  interest representing more than fifty percent (50%) of the outstanding
                  capital stock of an entity or voting securities representing more
                  than
                  fifty percent (50%) of the total voting power of outstanding securities
                  then entitled to vote generally in the election of such entity’s board of
                  directors or other governing body. 

              

      

      

      
        	4.  	
                The
                  Company will not transfer aircraft, routes or operating authority
                  to its
                  Parent, a Subsidiary of the Parent, or to a Subsidiary of the Company
                  for
                  the purpose of evading the terms of this Agreement. The Company
                  will also
                  not establish a third party leasing device to evade the terms of
                  this
                  agreement. 

              

      

      

      
        	G.  	
                Wet
                  Lease/Dry Lease

              

      

      

      The
        Company will not enter into any dry lease or wet lease agreement, or contract
        with or for any other carrier or entities (government, military or commercial)
        without mutual agreement with the Union. Code share agreements with other
        air
        carriers do not constitute contracts subject to this provision. 

      

      
        	1.  	
                No
                  Flight Attendant within the bargaining unit will be reduced in
                  status or
                  lose any income or employee benefits while discussions are taking
                  place.
                  

              

      

      

      
        	2.  	
                The
                  Union will not decline to agree to a dry lease when such dry lease
                  is for
                  the sole purpose of leasing out excess aircraft owned or leased
                  by the
                  Company. Such dry lease will not result in the reduction in status
                  or the
                  furlough of any Chautauqua Flight Attendant in cases where the
                  dry lease
                  provides a profit to the Company. At the request of the Union it
                  may
                  review the actual dry lease documents.

              

      

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
        	H.  	
                Foreign
                  Bases

              

      

      

      The
        Company shall not establish a Flight Attendant Base outside of the 48 Contiguous
        United States and the District of Columbia without providing advance, written
        notice to and bargaining with the Union at least sixty (60) days prior to
        any
        bid establishing such Base. Unless and until the Company and the Union reach
        agreement on different terms and conditions for the foreign base operation,
        Flight Attendants assigned to such Base shall be covered by all terms of
        this
        Agreement. In the event that the parties cannot reach agreement on the terms
        and
        conditions of the foreign base operation by the end of the 60 day period
        referenced above, the dispute shall be handled in accordance with the procedures
        set forth in Paragraph M, below of this Agreement. In any proceeding related
        to
        the enforcement of the obligations of this paragraph, the Company will not
        raise
        non-applicability of the Railway Labor Act as a defense. Disputes concerning
        Flight Attendants based at foreign Bases shall be heard by the System Board
        of
        Adjustment, as set forth in this Agreement, and the decision of the System
        Board
        in such cases shall be enforceable in any court of competent jurisdiction
        in the
        United States to the same extent and in the same manner as other cases arising
        out of interpretation and application of this Agreement. 

      

      
        	I.  	
                Furlough
                  Protection

              

      

      

      
        	1.  	
                No
                  Flight Attendant on the Chautauqua Flight Attendant Seniority List
                  as of
                  the date of signing of this Agreement shall be furloughed, except
                  as may
                  be otherwise provided in Article 1.I.2., below.

              

      

      

      2. The
        Company shall be excused from compliance with the provisions of Article 1.I.1.,
        above to the extent that a circumstance over which the Company does not have
        control is the cause of such noncompliance. The term “circumstance over which
        the Company does not have control” means an act of nature; a work stoppage by a
        union-represented employee group at the Company or at an air carrier whose
        designator code the Company utilizes in holding out its services to the public;
        grounding of a substantial number of the Company’s aircraft by a government
        agency or by voluntary action of the Company for safety reasons in lieu thereof;
        reduction in flying operations because of suppliers being unable to provide
        sufficient critical materials for the Company’s operations, revocation of the
        Company’s operating certificate(s), war, terrorism or national emergency, the
        Company being unable to retain or obtain sufficient aircraft to utilize all
        Flight Attendants protected from furlough or as a result of adverse economic,
        market or business conditions that may directly impact the Company’s operations.

      

      
        	J.  	
                Nothing
                  in this Agreement shall prevent the Company from acquiring, establishing
                  or merging with another air carrier, in accordance with the procedures
                  and
                  safeguards prescribed by this article, provided that the Company
                  will not
                  acquire or establish another air carrier (alter-ego or otherwise)
                  to
                  replace flying performed by the Company or to avoid the terms and
                  conditions of this Agreement. 

              

      

      

      
        	K.  	
                Successors

              

      

      

      
        	1.  	
                This
                  Agreement shall be binding upon any successor including, but not
                  limited
                  to, any merged company or companies, purchaser, assign, assignee,
                  transferee, administrator, receiver, executor and/or trustee (hereinafter
                  “successor”), of the Company which acquires ownership and/or control of
                  all or substantially all of the equity securities and/or assets
                  of the
                  Company (a “Successor Transaction”). For the purpose of this paragraph, a
                  successor or assign shall be defined as an entity which acquires
                  all or
                  substantially all of the assets or equity of the Company through
                  a single
                  transaction or a multi-step related transaction which closes within
                  a
                  twelve (12) month period. The Company agrees to give written notice
                  of the
                  terms of this Agreement to a proposed successor before concluding
                  any
                  Successor Transaction. 

              

      

      

      
        	2.  	
                In
                  the event of a Successor Transaction, as defined in paragraph K.1.,
                  above,
                  the following provisions shall apply regardless of whether one
                  or more
                  than one carrier survives the transaction or whether formerly separate
                  operations are to be integrated: 

              

      

      

      
        	a.  	
                Unless
                  and until any operational merger is finally effectuated, the Company
                  and/or the successor shall continue to recognize the Union as the
                  representative of the pre-transaction Company Flight Attendants,
                  so long
                  as such recognition is consistent with the Railway Labor Act and
                  any
                  applicable rulings or orders of the National Mediation Board.
                  

              

      

      

      
        	b.  	
                Subject
                  to applicable securities and other laws and regulations, the Company
                  shall
                  review with the Union the details of any material agreements relating
                  to a
                  Successor Transaction in a timely manner, provided that no financial
                  or
                  other confidential business information need be disclosed unless
                  suitable
                  arrangements are made for protecting the confidentiality and use
                  of such
                  information. 

              

      

      

      
        	c.  	
                The
                  Company, or the successor if different from the Company, shall
                  continue to
                  employ the Flight Attendants on the Chautauqua Flight Attendant
                  System
                  Seniority List, including any such Flight Attendants on leave or
                  furlough
                  status at the time of the Successor Transaction, subject to the
                  terms of
                  this Agreement. 

              

      

      

      
        	d.  	
                Where
                  formerly separate operations eventually are to be integrated, the
                  Flight
                  Attendant groups shall be kept separate until their seniority lists
                  are
                  integrated in accordance with the requirements of this Section.
                  During
                  such time of separate operations, neither aircraft nor Flight Attendants
                  shall be interchanged without the Union’s written consent.
                  

              

      

      

      
        	e.  	
                So
                  long as the Flight Attendant groups remain separate, the rates
                  of pay,
                  rules and working conditions set forth in this Agreement shall
                  be observed
                  with respect to the Flight Attendants whose names appear on the
                  Chautauqua
                  Flight Attendant System Seniority List.

              

      

      

      
        	L.  	
                Labor
                  Protective Provisions

              

      

      

      The
        Company shall not enter into any agreement to a Successor Transaction unless
        the
        other party to the transaction agrees in writing, as a condition of the
        transaction, to (1) provide Labor Protective Provisions for Chautauqua Airlines
        Flight Attendants no less favorable than the Labor Protective Provisions
        specified by the CAB in Sections 3 and 13 of Allegheny-Mohawk relating to
        fair
        and equitable seniority integration; (2) assume the terms of this paragraph
        L.
        and paragraphs K. above and M. below. This paragraph L. shall remain in full
        force and effect concurrently with this Flight Attendant Agreement and ensuing
        Flight Attendant Agreements. 

      

      
        	M.  	
                Any
                  grievance arising under this Article 1 shall be arbitrated on an
                  expedited
                  basis directly before the System Board of Adjustment pursuant to
                  Article
                  19 of the Agreement and the following provisions. If a mutually
                  agreed
                  upon arbitrator cannot be selected within three (3) days of the
                  submission
                  to the System Board, an arbitrator will be selected pursuant to
                  Article 19
                  of this Agreement, with selection to be completed within three
                  (3) days of
                  receipt of a list of proposed arbitrators. The dispute shall be
                  heard no
                  later than sixty (60) days following the submission to the System
                  Board
                  (subject to the availability of the arbitrator), and shall be decided
                  no
                  later than thirty (30) days following conclusion of the hearing.
                  The time
                  limits set forth in this paragraph may be extended only by written
                  Agreement of the Company and the Union.

              

      

      

      

      
        
          
          

        

        
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      ARTICLE
        2

      

      DEFINITIONS

      

      “Add”
        --
        means to pick up open time as provided in Article 6 to increase the Flight
        Attendant’s scheduled line. 

      

      “Agreement”--
        means this Collective Bargaining Agreement between the Company and the Union
        when the word is capitalized. 

      

      “Active
        Status” -- means on the Company payroll and subject to work assignment, or on
        paid time off. A Flight Attendant on leave of absence or furlough is not
        on
        active status. 

      

      “Base”
        --
        means a geographical location where Flight Attendants are stationed from
        which a
        Flight Attendant’s duty assignments are calculated to begin and end. The terms
“base” and “domicile” shall be synonymous for purposes of this Agreement.

      

      “Bid”
        --
        means the Standing Bid, Monthly Bid, Vacation Bid, or other Bid where Flight
        Attendants may submit their preferences as set forth in this Agreement.

      

      “Bid
        Award” -- means an awarding of an assignment based on seniority, or as otherwise
        provided in the Agreement. 

      

      "Block
        -
        to - block" -- means the elapsed time starting with the removal of the chocks
        or
        other restraining devices from the wheels of the aircraft when the aircraft
        first moves for the purpose of flight under its own power, and ending when
        the
        chocks or other restraining devices are replaced. 

      

      “Calendar
        Day” -- means midnight to midnight local base time. 

      

      “CDO”
        -
        (Continuous Duty Overnight) -- means a single duty period that crosses over
        midnight and has certain rights and restrictions which are contained in Articles
        6 and 24 (Scheduling/Hours of Service). 

      

      "Charter"
        -- means an off-line or on-line revenue passenger flight that is not a regularly
        scheduled flight. Extra sections are not considered charter flights.

      

      "Chautauqua
        Flight Attendants’ System Seniority List” -- means a list of Flight Attendants
        in the employ of the Company listed in order of seniority. 

      

      "Check
        Flight Attendant"-- means a Flight Attendant selected and retained at the
        discretion of the Company, in accordance with Article 8. A check Flight
        Attendant will perform duties which include line checks, IOE, and other Inflight
        training. 

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      “Composite
        Line” -- means a monthly Schedule constructed by utilizing pairings not assigned
        to regular lines in accordance with the work rules of this Agreement that
        may
        consist of days off, reserve days, and all known activity (e.g.; training
        and
        vacation, etc)

      

      “Credit
        Hour” -- means the hourly unit by which Flight Attendants will be compensated
        as
        set forth in this Agreement. 

      

      “Crewmember”
        - means a member of the Flight Crew, which include Pilots (Captain and First
        Officer) and Flight Attendant. 

      

      "Date
        of
        Hire" -- means the date on which a Flight Attendant first reports for Flight
        Attendant training by the Company. 

      

      "Day"--
        means a calendar day. 

      

      "Day
        Off"
        -- means a day free from all duty required by the Company at base. 

      

      “Deadhead”
        -- means a Crewmember(s) flying or taking surface transportation to or from
        a
        flight or operational assignment at the Company's direction. 

      "Domestic"
        -- means the forty-eight (48) contiguous states and the District of Columbia.
        

      

      "Domicile"
        -- (see ”Base”). 

      

      “Drops”
        -- means the removal of flight(s) from a Flight Attendant’s line and placing it
        into open time, with the approval of scheduling/planning. 

      

      “Dry
        Lease” -- means an agreement with another carrier in which the Company provides
        aircraft to the other carrier. 

      “Duty
        Day” -- means a calendar day in which a duty period begins or ends and all
        calendar days away from base while flying a pairing (including deadheading).
        Also, any calendar day scheduled for training or other Company directed
        business. 

      

      “Duty
        Time, Duty Period” -- The elapsed time from the time a Flight Attendant is
        required to report for duty or the actual reporting time, whichever is later,
        until the time the Flight Attendant is released from duty. 

      

      “Entity”
        -- means a natural person, corporation, association, partnership, trust or
        any
        other form for conducting business. 

      

      “Flight
        Attendant” -- means an employee of the Company whose name appears on the Flight
        Attendant seniority list and whose duties, as a crewmember, include ensuring
        the
        safety of passengers, and the performance of Inflight service duties as assigned
        by the Company. 

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      "Flight
        Time" means block-to-block time. 

      

      “Hot
        Reserve” -- means a period of time when a Flight Attendant is required to be on
        reserve at her base airport or in another base airport. 

      

      “Immediate
        Family Member” -- means the employee, spouse, dependent children (including
        legally adopted) under age 21, and parents of the employee. 

      “International”
        -- means any point or area outside the forty-eight (48) contiguous United
        States
        and the District of Columbia. 

      

      “Line
        Value” -- means the time value of a Flight Attendant’s final bid award
        consisting of scheduled block time or actual flight time, whichever is greater,
        inclusive of the value of any assignments to training, to include paid
        sick/vacation leave, that may be adjusted for trip trades or drops.

      

      “Longevity”
        -- means the period of time a Flight Attendant has actively served as a Flight
        Attendant with the Company. Longevity commences on the Flight Attendant’s first
        day of Flight Attendant training. 

      

      “Month”
        -- means the period starting from the first day of, to and including the
        last
        day of each calendar month of the year, except that for Flight Attendant
        scheduling and pay purposes, January, February, and March will each be
        considered a thirty (30) day month through the addition of January 31 and
        March
        1 to the month of February. Leap year results in February being a 31-day
        month.

      

      “Monthly
        Guarantee” -- means the minimum Flight Attendant pay hours in a contractual
        month pay period as set forth in this Agreement. 

      

      “Monthly
        Bid Award” -- means a bidline awarded in accordance with the terms of this
        Agreement, consisting of known trip pairings, training days, reserve days
        and/or
        days off. 

      

      “Offer”
        -- means a Flight Attendant making a trip available for pick up by another
        Flight Attendant, as provided in Article 6.H.4. 

      

      “Operational
        Necessity” -- means actions taken by the Company after careful planning and
        analysis, and not arbitrarily or capriciously. Examples of such reasons shall
        include, but are not limited to, the following: 1. To avoid a potential flight
        delay, 2. To avoid a potential flight cancellation, and 3. To fulfill
        FAA/regulatory requirements. 

      

      “Pairing”
        -- see Trip Pairing. 

      

      “Per
        Diem” -- means the hourly expense allowance a Flight Attendant receives for
        incidental expenses, e.g., meals, tips, etc., in accordance with this Agreement.
        

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      “Preferential
        Bid System (PBS)” -- means a system that constructs monthly schedules for Flight
        Attendants based on an individual’s preferences and seniority. 

      

      “Probationary
        Period” -- means a Flight Attendant’s first nine (9) months of active service
        (exclusive of furlough or leave of absence) with the Company from the Flight
        Attendant’s date of hire. 

      

      Rescheduled”
        -- means a change to the Flight Attendant’s original scheduled assignment.

      

      “Regular
        Bid Line” -- means a schedule built in accordance with work rules of this
        Agreement which consists of trip pairings, training, vacation, days off,
        etc.
        and will not include any reserve time. 

      

      “Release
        Time”-- means the time when a Flight Attendant is released from Company duty.
        

      

      “Report
        Time” -- means the time a Flight Attendant is scheduled to report for duty or
        the time she actually reports, whichever is later. 

      

      "Reserve
        Line" means a schedule built in accordance with work rules of this Agreement
        that includes days of availability for duty, days off, and vacation.

      

      “Rest
        Period” -- means a period of time, free from all duty as provided in Article 24.
        

      

      “Scheduled
        Block Time” -- means the scheduled time contained in a pairing that delineates
        Block out and Block in times of flight segments. 

      

      “Seniority”
        -- means the length of service as a Flight Attendant with the Company.

      

      “Subsidiary”
        -- means any entity that is controlled by the Company or the Parent as defined
        above, herein. 

      

      “Seniority
        Date” -- means the date the Flight Attendant first entered initial training
        incident to employment as a Flight Attendant for the Company.  

      “Standing
        Bid”-- means the method by which a Flight Attendant expresses a preference for
        vacancies or future vacancies. 

      

      “Standing
        Monthly Bid” -- means the method by which a Flight Attendant expresses a
        preference for a monthly schedule in lieu of engaging in the bid process
        for
        that month. 

      

      “Tidying”
        -- includes but is not limited to the straightening of seatbelts and seatbacks,
        stowing of pillows / blankets, and removal of trash (excluding bodily fluids),
        but does not include mopping or vacuuming of floors, cleaning of 
        lavs,
        wiping down work surfaces and tray tables or other heavy cleaning. 

       

      "Trip"
        --
        see Trip Pairings. 

      

      “Trip
        Pairing / Trip / Pairing” -- means a flight or series of flights that are paired
        together and beginning at the Flight Attendant’s base and ending at the Flight
        Attendant’s base. Trip pairings may include deadhead. 

      

      "Vacancy"
        means a position(s) in a particular base in excess of the number of Flight
        Attendants already in that base. 

      

      “Vacation
        Bank” -- means the balance of a Flight Attendant’s accrued vacation.

      

      “Vacation
        Day” -- means a calendar day scheduled in accordance with Article 28, free of
        all duty. 

      

      "Wet
        Lease" -- means an agreement with another air carrier in which the Company
        provides an aircraft and crew to the other air carrier. 

      

      

      

      

      

      

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        3

      

      COMPENSATION

      

      

      
        	A.  	
                Pay
                  Scale

              

      

      

      
        	1.  	
                Flight
                  Attendants will be paid for flight time based on status and longevity
                  in
                  accordance with the hourly rates below. In computing hours for
                  pay
                  purposes, the actual time flown or the scheduled block time, whichever
                  is
                  greater, will be used. 

              

      

      

      
        	
                 

                 

                 

                 

                 

                 

                
                   
Longevity

              	 	 	
                DOS

                
                

                2005

              	
                 

              	
                 

              	
                DOS
                  + 

                1
                  year

                
                

                2006

              	
                 

              	
                 

              	
                DOS
                  + 

                2
                  years

                
                

                2007

              	
                 

              	
                 

              	
                DOS
                  + 

                3
                  years

                
                

                2008

              	
                 

              	
                 

              	
                DOS
                  + 

                4
                  years,

                minus
                  1 day

                
                

                2009

              	 
	
                0-6
                  mo.

              	 	
                $

              	
                16.00

              	 	
                $

              	
                16.40

              	 	
                $

              	
                16.81

              	 	
                $

              	
                17.15

              	 	
                $

              	
                17.49

              	 
	
                7-12
                  mo.

              	 	
                $

              	
                17.00

              	 	
                $

              	
                17.43

              	 	
                $

              	
                17.86

              	 	
                $

              	
                18.22

              	 	
                $

              	
                18.58

              	 
	
                Year
                  2

              	 	
                $

              	
                18.02

              	 	
                $

              	
                18.47

              	 	
                $

              	
                18.93

              	 	
                $

              	
                19.31

              	 	
                $

              	
                19.70

              	 
	
                Year
                  3

              	 	
                $

              	
                19.31

              	 	
                $

              	
                19.79

              	 	
                $

              	
                20.29

              	 	
                $

              	
                20.69

              	 	
                $

              	
                21.11

              	 
	
                Year
                  4

              	 	
                $

              	
                20.49

              	 	
                $

              	
                21.00

              	 	
                $

              	
                21.53

              	 	
                $

              	
                21.96

              	 	
                $

              	
                22.40

              	 
	
                Year
                  5

              	 	
                $

              	
                21.69

              	 	
                $

              	
                22.23

              	 	
                $

              	
                22.79

              	 	
                $

              	
                23.24

              	 	
                $

              	
                23.71

              	 
	
                Year
                  6

              	 	
                $

              	
                22.85

              	 	
                $

              	
                23.42

              	 	
                $

              	
                24.01

              	 	
                $

              	
                24.49

              	 	
                $

              	
                24.98

              	 
	
                Year
                  7

              	 	
                $

              	
                24.05

              	 	
                $

              	
                24.65

              	 	
                $

              	
                25.27

              	 	
                $

              	
                25.77

              	 	
                $

              	
                26.29

              	 
	
                Year
                  8

              	 	
                $

              	
                24.41

              	 	
                $

              	
                25.02

              	 	
                $

              	
                25.65

              	 	
                $

              	
                26.16

              	 	
                $

              	
                26.68

              	 
	
                Year
                  9

              	 	
                $

              	
                25.12

              	 	
                $

              	
                25.75

              	 	
                $

              	
                26.39

              	 	
                $

              	
                26.92

              	 	
                $

              	
                27.46

              	 
	
                Year
                  10

              	 	
                $

              	
                25.85

              	 	
                $

              	
                26.50

              	 	
                $

              	
                27.16

              	 	
                $

              	
                27.70

              	 	
                $

              	
                28.26

              	 
	
                Year
                  11

              	 	
                $

              	
                26.75

              	 	
                $

              	
                27.42

              	 	
                $

              	
                28.10

              	 	
                $

              	
                28.67

              	 	
                $

              	
                29.24

              	 
	
                Year
                  12

              	 	
                $

              	
                27.70

              	 	
                $

              	
                28.39

              	 	
                $

              	
                29.10

              	 	
                $

              	
                29.68

              	 	
                $

              	
                30.28

              	 
	
                Year
                  13

              	 	
                $

              	
                28.12

              	 	
                $

              	
                28.82

              	 	
                $

              	
                29.54

              	 	
                $

              	
                30.13

              	 	
                $

              	
                30.74

              	 
	
                Year
                  14

              	 	
                $

              	
                28.52

              	 	
                $

              	
                29.23

              	 	
                $

              	
                29.96

              	 	
                $

              	
                30.56

              	 	
                $

              	
                31.17

              	 
	
                Year
                  15

              	 	
                $

              	
                30.25

              	 	
                $

              	
                31.01

              	 	
                $

              	
                31.78

              	 	
                $

              	
                32.42

              	 	
                $

              	
                33.07

              	 

      

      

      2. A
        Flight
        Attendant who reaches the top of the scale set out above will receive an
        additional $.50 per hour on each longevity anniversary date thereafter, up
        to a
        maximum of $2.50 over the scale.

      

      3. New
        hire
        Flight Attendants will be paid at the applicable minimum wage rate for all
        hours
        worked in
        a work
        week
        for the
        first 3 weeks of new hire training. During IOE they will receive flight pay
        at
        the applicable rate.

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
        	B.  	
                Monthly
                  Guarantee

              

      

      

      
        	1.  	
                A
                  Flight Attendant who is available for duty for the full month will
                  be
                  guaranteed a minimum of seventy-five (75) hours of flight pay per
                  month
                  thereafter, except as otherwise provided in this Agreement.
                  

              

      

      

      
        	2.  	
                A
                  Flight Attendant who is unavailable for part of a month will have
                  her
                  guarantee prorated (except for paid vacation or paid sick leave).
                  

              

      

      

      
        	3.  	
                New-hire
                  Flight Attendants will be entitled to the monthly guarantee as
                  provided in
                  1. and 2. above, upon completion of IOE. 

              

      

      

      
        	C.  	
                Line
                  Guarantee

              

      

      

      When
        the
        Company achieves a ninety-eight point five percent (98.5%) completion factor
        for
        the month, a Flight Attendant who has been available for duty during the
        entire
        month will receive the greater of one hundred percent (100%) of her final
        bid
        award line value or her actual flight time, adjusted for trip trades or drops.
        

      

      

      
        	D.  	
                Rescheduling
                  

              

      

      

      Whenever
        a Flight Attendant is available for a scheduled trip and is rescheduled to
        perform different flying, she will be paid the originally scheduled block
        time
        or the actual hours flown, whichever is greater. This provision does not
        apply
        to cancellation of all or part of a trip where no rescheduling for the period
        of
        cancellation occurs nor does it apply where the Flight Attendant does not
        fly
        all or a portion of a trip and is not rescheduled to perform different flying.
        

      

      
        	E.  	
                Deadhead
                  Pay

              

      

      

      When
        a
        Flight Attendant is required to deadhead, she will be credited with seventy-five
        percent (75%) of the scheduled block time of the deadhead. If no block time
        is
        established, then the actual time will be used for air transportation. If
        required to deadhead via surface transportation, she shall be credited with
        fifty percent (50%) of driving time based upon AAA mileage at 50 MPH. A day
        consisting solely of deadhead to or from a flight assignment shall be considered
        a work day. 

      

      
        	F.  	
                Customs
                  Pay

              

      

      

      A
        Flight
        Attendant who clears Customs during an overnight assignment will receive
        an
        eighteen (18) minute pay credit. There shall be one pay credit per overnight.
        

      

      
        	G.  	
                Check
                  Flight Attendant Pay

              

      

      

      A
        Check
        Flight Attendant will be paid in addition to the rates above as provided
        in
        Article 8 Check Flight Attendant. 

      

      
        	H.  	
                Pay
                  Procedures

              

      

      

      
        	1.  	
                Flight
                  Attendants will be paid on a semi-monthly basis, i.e., twenty-four
                  (24)
                  pay periods per year. 

              

      

      

      
        	2.  	
                Flight
                  Attendants will be paid on the fifteenth (15th) and the last day
                  of each
                  month. If the fifteenth (15th) or the last day of each month falls
                  on a
                  Saturday or Sunday, Flight Attendants will be paid on the preceding
                  Friday. If the 15th
                  or
                  the last day of the month should fall on a holiday the paycheck
                  will be
                  available on the work day immediately preceding the holiday. The
                  paycheck
                  on the fifteenth (15th) of the month will include any adjustments
                  for any
                  additional amounts owed the Flight Attendant from the previous
                  month.
                  

              

      

      

      
        	3.  	
                A
                  Flight Attendant will be paid, at her option, by direct deposit
                  into an
                  account for that Flight Attendant at a financial institution of
                  the Flight
                  Attendant’s choice. 

              

      

      

      
        	4.  	
                The
                  Company may choose to send the Flight Attendant her semi-monthly
                  pay
                  information over the Company’s secure email system.
                  

              

      

      

      
        	5.  	
                Longevity
                  increases will be paid as follows: The current month’s guarantee will be
                  pro-rated from the actual longevity date as defined in Article
                  9
                  (Seniority). All pay over guarantee for the month that the longevity
                  anniversary occurs in will be included in the paycheck on the 15th
                  of the
                  following month at the new rate. 

              

      

      

      
        	6.  	
                Clerical
                  pay errors involving fifty ($50.00) dollars or more shall be reconciled
                  within five (5) working days after it is first brought to the company’s
                  attention. Errors of less than fifty ($50.00) dollars will be reconciled
                  in the next issued paycheck. 

              

      

      

      
        	7.  	
                When
                  there is an overpayment to a Flight Attendant, the Company will
                  notify the
                  affected employee, provide documentation and substantiation of
                  the
                  overpayment and arrange a mutually agreeable repayment schedule.
                  The
                  Company may require the employee to authorize the Company to deduct
                  repayment from her subsequent check(s). The maximum amount that
                  can be
                  deducted from each pay period shall be $50.00, unless the amount
                  of
                  overpayment exceeds $500.00, in which case the repayment amount
                  will not
                  be more than 20% of the original overpayment amount per pay period.
                  An
                  employee and the Company may agree to different repayment terms.
                  

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      
        	I.  	
                Value
                  of a Reserve Day

              

      

      

      
        	1.  	
                A
                  reserve Flight Attendant called into work will be credited four
                  (4) hours
                  towards her minimum monthly guarantee or the value of the assignment,
                  whichever is greater. 

              

      

      

      
        	2.  	
                A
                  hot reserve Flight Attendant will be credited five (5) hours towards
                  her
                  minimum monthly guarantee or the value of the assignment, whichever
                  is
                  greater. 

              

      

      

      
        	J.  	
                Training
                  Pay

              

      

      

      
        	1.  	
                A
                  Flight Attendant who attends a day of recurrent training will be
                  paid four
                  hours (4) flight pay for up to six (6) days in any calendar year.
                  

              

      

      

      
        	2.  	
                If
                  the Company elects to use any method of training such as “home study” to
                  comply with FAA requirements, a Flight Attendant will be paid and
                  credited
                  with one (1) hour of flight pay for every two (2) hours of FAA-approved
                  training credit earned in home study.

              

      

      

      
        	3.  	
                A
                  Flight Attendant in training will be paid no less than the minimum
                  monthly
                  guarantee. 

              

      

      

      
        	4.  	
                Flight
                  Attendants receiving Line Checks and Operating Experience will
                  be paid in
                  accordance with this Article 3.A. 

              

      

      

      
        	K.  	
                Segment
                  Times 

              

      

      

      
        	1.  	
                For
                  the purposes of this Article, scheduled block (segment) times will
                  be
                  determined using the average of historic en-route (block-to-block)
                  times
                  between city pairs by type of equipment and as attached hereto
                  as Appendix
                  A. 

              

      

      

      
        	2.  	
                Scheduled
                  block times will be reviewed by a joint Company/Union Scheduling
                  Committee
                  every six (6) months using the prior twelve (12) months to determine
                  whether any adjustments are to be made.

              

      

      

      
        	3. 	 Adjustments
                will be made only when the average varies from the established scheduled
                block time by seven and one-half percent (7.5%) or more, plus or
                minus.

      

      

      
        	4.  	
                When
                  a new route is established for which no segment time has been computed
                  in
                  accordance with this section, the initial segment time will be
                  established
                  based upon the marketing time for that segment. After one hundred
                  twenty
                  (120) days of operation, the scheduled block time will be reviewed.
                  

              

      

      

      
        	5.  	
                Non-scheduled
                  flights on routes where no established scheduled block time exists
                  will be
                  credited on the basis of actual (block-to-block) flight time.
                  

              

      

      

      
        	6.  	
                “Attempts,”“Ferries”
                  and “Diverted” flights will be paid on the basis of actual
                  (block-to-block) flight time. Taxi time not associated with a flight
                  will
                  be credited at the rate of two-tenths (0.2) hours of flight pay.
                  

              

      

      

      
        	7.  	
                Data
                  necessary for an accurate and complete review of segment times
                  will be
                  made available to the Company/Union Scheduling Committee. After
                  the Union
                  representatives have had an opportunity to review the data, the
                  Company
                  will meet with those representatives upon request, at a mutually
                  agreeable
                  time, to resolve any questions or disputes. Members of the Company/Union
                  Scheduling Committee will not disclose any confidential or proprietary
                  information provided pursuant to this paragraph.
                  

              

      

      

      
        	L.  	
                A
                  Flight Attendant will not be called in for drug testing on a scheduled
                  day
                  off. If drug testing occurs at the end of a trip pairing, the Flight
                  Attendant will be compensated at a rate of ten dollars ($10.00)
                  per hour,
                  or fraction thereof, prorated for all hours on duty after block
                  in plus
                  fifteen (15) minutes after her last flight segment. If the Flight
                  Attendant is taken to an off-site facility for the drug test, the
                  Flight
                  Attendant will be compensated one (1) hour of flight pay above
                  her
                  guarantee. 

              

      

      

      
        	M.  	
                Early
                  Report Time

              

      

      

      If
        a
        Flight Attendant is requested to report early, such Flight Attendant will
        be
        paid at the rate of $10.00 per hour, or fraction thereof, prorated for all
        hours
        on duty prior to her originally scheduled report time. 

      

      
        	N.  	
                Holiday
                  Pay

              

      

      

      A
        Flight
        Attendant who is assigned to flight duty or reserve duty on any of the below
        listed holidays will receive four (4) hours of flight pay in addition to
        her
        monthly guarantee or flight pay accrued for that month. 

      

       

      
        	
                 New
                  Year's Day

              	
                 Easter

              
	
                 Memorial
                  Day

              	
                Independence
                  Day

              
	
                 Labor
                  Day

              	
                 Thanksgiving

              
	
                 Christmas

              	 

      

      

      
        	O.  	
                Third
                  Year Anniversary Bonus

              

      

      

      Each
        Flight Attendant in the employ of the Company shall, upon completion of three
        (3) years of service, receive three hundred dollars ($300), subject to
        applicable deductions. All such payments shall be made no later than the
        second
        paycheck following the 3rd
        anniversary of the Flight Attendants’ hire date with the Company. 

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        4

      

      EXPENSES

      

      
        	A.  	
                Accommodations

              

      

      

      
        	1.  	
                The
                  Company and the Union will designate comfortable and adequate single
                  occupancy lodging at all overnight stations (including continuous
                  duty
                  overnights), while a Flight Attendant is in training away from
                  her base,
                  or on temporary duty assignments. The Company will pay the cost
                  of such
                  rooms/lodging. The Company will request rooms on the second floor
                  or
                  higher, with access to the room(s) available through interior hallways
                  only. 

              

      

      

      
        	2.  	
                The
                  Company will request that a hotel that provides a free continental
                  breakfast do so between the hours of 0500-0800.

              

      

      

      
        	3.  	
                The
                  Company will provide the Union Hotel Committee Chairman written
                  notice
                  within a reasonable time when it is considering an alternate or
                  new hotel.
                  The Union Hotel Committee will provide the Company with its comments
                  and
                  recommendations on any proposed changes. The Union Committee may
                  also make
                  recommendations to the Company at any time on current hotels.
                  

              

      

      

      
        	4.  	
                The
                  Company will make prompt inquiries into complaints related to
                  deterioration of service, safety or cleanliness at any facility
                  that has
                  been approved for layovers. Prompt remedial action will be taken
                  in those
                  cases where investigation affirms a deterioration of the above
                  conditions.
                  

              

      

      

      
        	5.  	
                In
                  designating layover accommodations, the Company will select hotels
                  with
                  normal driving time from the airport not to exceed fifteen (15)
                  minutes,
                  consistent with cost considerations.

              

      

      

      
        	6.  	
                The
                  Company will provide adequate single occupancy hotel accommodations
                  whenever a Flight Attendant has a scheduled layover of five (5)
                  or more
                  hours scheduled block-in to scheduled block-out.
                  

              

      

      

      
        	       
B.
                 Per Diem

      

      

      
        	
                                   
                  1. 
                  Commencing
                  with the first of the month following ratification of this Agreement,
                  Flight Attendants shall be paid a per diem allowance of $1.55 per
                  trip
                  hour (fractions will be prorated). Thereafter, per
                  diem

              
	
                
                                                 
                    rates shall  be
                    increased  
                    $.05 annually effective on the anniversary of the above date
                    for the
                    following four (4) years. 

                

              
	 
	
                                   
                  2. 
                  A Flight Attendant will receive per diem for each trip hour (from
                  report
                  time in Base to release time in Base), training away from base,
                  while on
                  hot reserve, temporary assignment or any other duty away 
                  

              
	
                                               
                  from base assigned by the Company.
                  

              
	 
	
                                    3. 
                  Per
                  Diem will be included in the first payroll check of the following
                  month,
                  and will encompass all per diem owed for the previous month.
                  

              
	 

      

      
        	C.  	
                Transportation

              

      

      

      
        	1.  	
                The
                  Company will provide transportation between the airport and the
                  lodging
                  facility. If there is no suitable eating facility at the hotel
                  or within
                  reasonable walking distance (taking into account environmental
                  conditions), transportation will be provided to a restaurant. If
                  the usual
                  transportation from the airport to a hotel is not available within
                  thirty
                  (30) minutes following block-in, the Company will reimburse a Flight
                  Attendant for cab fare to the hotel. A Flight Attendant using a
                  taxi
                  pursuant to this paragraph must contact Crew Scheduling prior to
                  calling
                  for the taxi to advise them of the circumstances. The Flight Attendant
                  must provide the Company with a receipt when she files for reimbursement.
                  Only one taxi per flight crew will be provided in these circumstances.
                  

              

      

      

      
        	2.  	
                When
                  a Flight Attendant agrees to drive her personal vehicle at the
                  request of
                  the Company, she will be reimbursed at the current Company mileage
                  rate or
                  $.36 per mile point to point and return, whichever is greater.
                  A Flight
                  Attendant will not be required to drive her personal vehicle.
                  

              

      

      

      
        	3.  	
                The
                  Company will provide travel on a booked basis when a Flight Attendant
                  is
                  deadheading on-line to/from the Flight Attendant’s base and the point of
                  her assigned duty. If the Flight Attendant is bumped from such
                  flight, the
                  Company will book the Flight Attendant on a positive space/must
                  ride basis
                  on the next available on-line flight.

              

      

      

      
        	D.  	
                General

              

      

      

      
        	1.  	
                The
                  Company will pay any fee associated with local and /or toll free
                  calls
                  made from a layover hotel. 

              

      

      

      
        	2.  	
                When,
                  due to irregular operations, special assignments, etc., a Flight
                  Attendant
                  incurs lodging or transportation expenses, she will be reimbursed
                  upon
                  presentation of receipts for such expenses, provided she requests
                  and
                  receives advance approval for such expenses.

              

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      
        	3.  	
                At
                  base or another location of the Flight Attendant’s choice where free
                  parking is not available, the Company will pay for the cost of
                  parking
                  while the Flight Attendant is performing duty. The Company will
                  not be
                  required to pay for parking at more than one (1) location per Flight
                  Attendant, Co-Terminal operations notwithstanding.
                  

              

      

      

      
        	4.  	
                Paying
                  for parking at a location other than the Flight Attendant’s base shall be
                  required only when such employee parking is available and only
                  to the
                  extent of what the parking would have cost at the Flight Attendant’s base.
                  

              

      

      

      
        	5.  	
                The
                  Company will reimburse each Flight Attendant for the cost of passports
                  and
                  visas. The Company shall also reimburse the Flight Attendant for
                  any
                  airport government charges incurred in traveling on Company business.
                  

              

      

      

      
        	6.  	
                Co-Terminal
                  Bases 

              

      

      

      
        	a.  	
                A
                  Co-Terminal Base is defined as a base that contains more than one
                  airport
                  to which Flight Attendant may be assigned duty. (e.g. John F.
                  Kennedy/LaGuardia/Newark, Dulles/Washington National/Baltimore,
                  etc.) In
                  the event the Company chooses to establish Co-Terminal Bases the
                  following
                  terms shall apply: 

              

      

      

      
        	b.  	
                The
                  Company will make every reasonable effort to schedule a Flight
                  Attendant
                  to begin and end a trip at the same airport. In the event a Flight
                  Attendant finishes a trip at a different airport from the airport
                  at which
                  the trip originated, the Company will provide ground transportation
                  to the
                  originating airport. Such transportation between co-terminals will
                  be
                  considered deadhead. Upon conclusion of the discussions provided
                  for in e.
                  below an appendix for travel time between co-terminal airports
                  will be
                  published. 

              

      

      

      
        	c.  	
                The
                  Flight Attendant’s duty time will end upon return to the originating
                  airport. 

              

      

      

      
        	d.  	
                The
                  Company shall be responsible to ensure that the Flight Attendant
                  does not
                  incur parking expenses in a co-terminal base that would not be
                  incurred if
                  she were based in a single-airport base.

              

      

      

      
        	e.  	
                At
                  least 60 days prior to opening any co-terminal base, the Company
                  will
                  notify the Union and meet to discuss the operation. The parties
                  may agree
                  to other or different conditions applicable to a specific co-terminal
                  operation. 

              

      

      

      
        	7.  	
                Lodging
                  and Per Diem for New Hires 

              

      

      

      During
        initial new hire training all Flight Attendant trainees will receive
        double-occupancy lodging and Per Diem, provided their residence is outside
        a
        50-mile radius of the training location. 

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        5

      

      MOVING
        EXPENSES

      

      
        	A.  	
                Eligibility
                  

              

      

      

      Successful
        vacancy bidders, Flight Attendants moving to a domicile upon initial employment,
        and Flight Attendants making domicile swaps are not entitled to moving expenses.
        The Company will pay moving expenses when a Flight Attendant is involuntarily
        displaced to another domicile for any reason.

      

      
        	B.  	
                Moving
                  Benefits 

              

      

      

      A
        Flight
        Attendant eligible under the preceding paragraph shall be entitled
        to:

      

      
        	1.  	
                Actual
                  moving expenses for a professional mover, including packing materials,
                  shipping and insurance, of household goods and effects up to a
                  total
                  weight of 10,000 lbs. Packing, unpacking, extra insurance and storage
                  are
                  not covered. The mover must be approved by the
                  Company.

              

      

      

      
        	2.  	
                The
                  Company will reimburse a Flight Attendant at the current Company
                  mileage
                  rate or $.36 per mile, whichever is greater, for up to two (2)
                  of the
                  Flight Attendant’s registered vehicles driven to the new domicile, using
                  the most direct mileage between domiciles. One car may be moved
                  prior to
                  the move of the primary residence, and the other (or both) cars
                  would be
                  moved in conjunction with the actual
                  move.

              

      

      

      
        	3.  	
                The
                  Company will reimburse a Flight Attendant for meals and lodging
                  for the
                  Flight Attendant and her immediate family for the time required
                  to travel
                  to the domicile up to five days. A Flight Attendant will be removed
                  from
                  trips and pay protected for the trips missed which conflict with
                  the time
                  allowed for travel. A day of travel shall be considered a minimum
                  of three
                  hundred fifty (350) miles by the most direct AAA mileage. The daily
                  allowance for meals shall be $25.00 per day for the Flight Attendant,
                  $25.00 per day for the spouse traveling with the Flight Attendant,
                  and
                  $15.00 per day for each dependent traveling with the Flight
                  Attendant.

              

      

      

      
        	4.  	
                The
                  Company will pay up to two hundred dollars ($200.00) for termination
                  and
                  hook-up of gas and electric utilities, telephone and cable television
                  (excluding deposits) resulting from a move to a new domicile.
                  

              

      

      

      
        	5.  	
                If
                  a lease is broken as a result of moving to a new domicile, and
                  a penalty
                  is incurred, the Company will pay the penalty, not to exceed two
                  (2)
                  months rent.

              

      

      

      
        	6.  	
                If
                  immediate occupancy of the new residence is impracticable because
                  of time
                  constraints imposed by the Company, the Company will pay meal and
                  lodging
                  expenses (consistent with paragraph B. above) for up to seven (7)
                  days.
                  The Flight Attendant will make every effort to minimize this expense.
                  If
                  the moving company reimburses the Flight Attendant for these expenses,
                  the
                  Company will have no obligation to make any additional
                  payment.

              

      

      

      
        	7.  	
                The
                  Company’s liability for moving expenses under this Article shall not
                  exceed seven thousand dollars ($7,000). Payment for cost of moving
                  household goods shall be paid directly from the Company to the
                  moving
                  vendor. All other eligible benefits set forth in this Article shall
                  be
                  paid to the Flight Attendant as per B. of this
                  Article.

              

      

      

      
        	C.  	
                Moving
                  Days 

              

      

      

      A
        Flight
        Attendant who is moving her primary residence will be entitled to four (4)
        consecutive days off (inclusive of scheduled days off) for a move of seven
        hundred (700) miles or less, plus one (1) additional day off for each three
        hundred fifty (350) additional miles. These days off are to be taken in
        conjunction with the actual move. The Flight Attendant will be paid for the
        value of any trip(s) missed. Moving days may not be requested during the
        weeks
        of Thanksgiving, Christmas, and New Years. The Flight Attendant will coordinate
        scheduling of days off for moving with the Director of Inflight.

      

      
        	D.  	
                General
                  

              

      

      

      
        	1.  	
                If
                  a Flight Attendant elects not to move, the Company will pay the
                  Flight
                  Attendant two hundred fifty dollars ($250.00), which need not be
                  verified
                  by receipts.

              

      

      

      
        	2.  	
                When
                  the Company is required to pay moving expenses, nothing in this
                  Article is
                  intended to prevent the Company and the Flight Attendant from agreeing
                  to
                  an amount to be paid to the Flight Attendant in lieu of the expenses
                  set
                  forth in this Article.

              

      

      

      
        	3.  	
                When
                  the Company is required to pay moving expenses, the move must be
                  coordinated with the Inflight Department. Moving expenses should
                  be
                  submitted within thirty (30) days after incurring the expenses.
                  Receipts
                  must verify all moving expenses. The Company will not be liable
                  for any
                  damages incurred during moving.

              

      

      

      
        	4.  	
                The
                  Company will not be responsible for paying any expenses incurred
                  under
                  this Article after one (1) year from the actual effective date
                  of the
                  Flight Attendant’s assignment to the new
                  domicile.

              

      

      

      
        	5.  	
                If
                  a Flight Attendant elects to move herself, the rental truck and/or
                  trailer, packing materials, insurance, fuel, and two hundred dollars
                  ($200.00) to offset other costs not included in this paragraph,
                  will be
                  paid to the Flight Attendant.

              

      

      

      
        	6.  	
                A
                  Flight Attendant who is eligible for Company paid moving expenses
                  may
                  elect to have her move paid from a location other than the domicile
                  from
                  which the Flight Attendant is being transferred. However, the Company's
                  financial responsibility will not exceed the cost of moving the
                  Flight
                  Attendant from the domicile from which she transferred to her new
                  domicile.

              

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

      

      

      

      

      

      ARTICLE
        6

      

      SCHEDULING

      

       

      
        	A.  	
                Staffing

              

      

      

      It
        is the
        Company’s responsibility to determine adequate staffing levels taking into
        account all known flying, vacations, known sick leave, scheduled training,
        Company related business, and all known absences. 

      

      
        	B.  	
                Bidding
                  and Awarding of Monthly Schedules

              

      

      

      The
        Company will utilize and maintain a Preferential Bidding System (PBS), meeting
        the requirements in this Article and any other terms which have been mutually
        agreed upon by the Company and Union, for the construction and awarding of
        flight schedules. The Company will provide a means of distribution and receipt
        of monthly bid packages and awards so that all Flight Attendants have access
        to
        the bid process. This will include allowing the Flight Attendants to confirm
        the
        Company's receipt of their bids. 

      

      
        	1.  	
                Eligibility
                  to Bid

              

      

      

      A
        Flight
        Attendant who will begin a known training event, e.g. Initial (from the
        beginning of ground school to completion of OE), New Equipment, or Recurrent
        Training during the bid period may bid a schedule for that portion of the
        month
        which she will be available. 

      

      
        	2.  	
                A
                  Flight Attendant who will be available to work during any part
                  of the
                  month will be allowed to bid during the bidding process, and will
                  be
                  awarded a schedule for that portion of the month which she will
                  be
                  available. 

              

      

      

      
        	3.  	
                A
                  Flight Attendant must bid on an approved format submitted to Crew
                  Planning/Scheduling. A Flight Attendant will use the electronic
                  bid system
                  set up by the Company unless an alternative method has been approved
                  by
                  the Company. 

              

      

      

      
        	4.  	
                Bid
                  packages will be made electronically available via a home access
                  computer
                  system and the Company computer terminals located in each Base
                  on or
                  before the date of bid package distribution.

              

      

      

      
        	5.  	
                Bidding
                  time line:

              

      

      

      
        	a.  	
                Bid
                  packages will be made available to all Flight Attendants at each
                  base at
                  or before 1200 hours on or before the 13th of the month prior to
                  the bid
                  period. 

              

      

      

      
        	b.  	
                A
                  Flight Attendant must submit her bid by 1200 hours on or before
                  the 17th
                  of the month prior to the bid period.

              

      

      

      
        	c.  	
                The
                  bid award will be made available to all Flight Attendants by 1200
                  hours on
                  or before the 20th of the month prior to the bid period.
                  

              

      

      

      
        	d.  	
                A
                  Flight Attendant failing to make a bid or failing to meet the deadline
                  will be assigned a line in the awards as per her default bid.
                  

              

      

      

      
        	6.  	
                The
                  PBS System will generate, track, and provide each Flight Attendant
                  a
                  unique receipt for each bid supplied by the Flight Attendant.
                  

              

      

      

      
        	7.  	
                All
                  eligible Flight Attendants may bid for lines at their Base. All
                  bids shall
                  be awarded in accordance with seniority. Awards will be published
                  and made
                  available to all eligible bidders in each Base, either electronically
                  or
                  hard copy, or both. 

              

      

      

      
        	8.  	
                The
                  Company shall make only the necessary adjustments to awarded lines
                  to
                  correct errors and to ensure minimum days free from duty.
                  

              

      

      

      
        	9.  	
                         
                  a. Flight Attendants will bid utilizing the preferential bidding
                  system.
                  

              

      

       

               
        b. Reserve line preferences will be used to construct reserve lines. When
        the
        capacity is available through the PBS vendor, awarding of Reserve lines will
        be
        through the PBS System. 

      

               
        c. Guaranteed Low Time (GLT) lines will be bid and awarded within each base
        in
        seniority order from a standing GLT lines list. 

      

              
         d. CDO lines will be constructed manually and posted as complete
        lines, to
        be bid concurrently with other lines. 

      

               
        e. Composite lines will be constructed after all other lines are completed.
        

      

      
        	C.  	
                Pairing
                  Construction

              

      

      

      It
        is the
        responsibility of the Company to prepare and publish the pairings to be bid
        on
        by the Flight Attendants. The Company will consult with the Scheduling Committee
        in the preparation and review of the pairings. 

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      
        	1.  	
                The
                  parties will meet and confer quarterly or at such other times as
                  mutually
                  agreed upon to review criteria for the construction of pairings
                  to be used
                  in the scheduling of Flight Attendants and may jointly agree to
                  modify the
                  criteria from time to time. The objectives for the construction
                  of
                  pairings will be to: 

              

      

      

      
        	a.  	
                Maximize
                  the Flight Attendant’s flight time during a given duty period.
                  

              

      

      

      
        	b.  	
                Ensure
                  the ability to carry out the marketing schedule while maintaining
                  on-time
                  performance and schedule completion.

              

      

      

      
        	c.  	
                Maintain
                  a mix of pairing types, e.g. 1-day, 2-day, 3-day, 4- day or 5-day
                  trips.
                  

              

      

      

      

      
        	d.  	
                Ensure
                  stability and continuity from one bid period to the next.
                  

              

      

      

      2. All
        pairings used for the scheduling or assignment of Flight Attendants will
        comply
        with all other applicable provisions of the Agreement. 

      

      
        	D.  	
                Contents
                  of the Bid Package

              

      

      

      
        	1.  	
                The
                  bid package for each Base will contain the following
                  information:

              

      

      

      
        	a.  	
                All
                  known flying arranged in trip pairings including the following
                  schedule
                  information. The Company may withhold up to five percent (5%) of
                  known
                  flying. 

              

      

      

      
        	i.)  	
                Report
                  and release times.

              

      

      
        	ii.)  	
                Pairing
                  number.

              

      

      
        	iii.)  	
                Flight
                  number.

              

      

      
        	iv.)  	
                Block
                  and credit time of each segment.

              

      

      
        	v.)  	
                Block
                  and credit time of the pairing.

              

      

      
        	vi.)  	
                Duty
                  time.

              

      

      
        	vii.)  	
                Ground
                  time.

              

      

      
        	viii.)  	
                Deadhead
                  time.

              

      

      
        	ix.)  	
                Originating,
                  intermediate, and terminating
                  station.

              

      

      
        	x.)  	
                RON
                  information, including hotel information, ground transportation,
                  etc.

              

      

      
        	xi.)  	
                Minimum
                  required rest.

              

      

      
        	xii.)  	
                Trip
                  time (time away from Base, or
                  TAFB).

              

      

      
        	xiii.)  	
                Aircraft
                  type (e.g., EM3,EM4,EM5).

              

      

      

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      
        	b.  	
                A
                  list of Flight Attendants eligible to bid in each Base (bid eligibility
                  list). 

              

      

      

      
        	c.  	
                Awarded
                  or assigned temporary vacancies. 

              

      

      

      
        	d.  	
                An
                  anticipated number of Regular lines.

              

      

      

      
        	e.  	
                An
                  anticipated number of Composite/Reserve lines.

              

      

      

      
        	f.  	
                The
                  number of GLT lines. 

              

      

      

      
        	g.  	
                Check
                  Flight Attendants. 

              

      

      

      
        	h.  	
                Reserve
                  windows (defined twelve (12) hour callout blocks).
                  

              

      

      

      
        	i.  	
                Known
                  training assignments including applicable credit. Training dates
                  will be
                  published two (2) months prior to training date and awarded one
                  (1) month
                  prior to scheduled training date. 

              

      

      

      
        	j.  	
                A
                  list of Flight Attendants who are due for recurrent.
                  

              

      

      

      
        	k.  	
                All
                  awarded and available vacation time.

              

      

      

      
        	2.  	
                Following
                  distribution, the Scheduling Committee may review the bid packages
                  for
                  each Base. The review of a bid package will be completed within
                  twenty-four (24) hours of its distribution.

              

      

      

      
        	3.  	
                When
                  an error or violation is found that would affect a PBS award, the
                  Company
                  will reissue the affected bid package if necessary and may adjust
                  the time
                  and dates for bidding, awarding, review and distribution required
                  for the
                  correction. 

              

      

      

      
        	E.  	
                Line
                  Construction - Preferential Bidding
                  System

              

      

      

      
        	1.  	
                The
                  following procedures will precede line
                  construction:

              

      

      

      
        	a.  	
                The
                  Company will apply any known absence to a Flight Attendant’s schedule. The
                  virtual credit value of the known absence(s) will be reflected
                  in the
                  total value of the line for purposes of the line building parameters
                  according to F.3 below. 

              

      

      

      
        	b.  	
                The
                  following virtual credits will apply to absences that are known
                  prior to
                  the close of bids: 

              

      

      

      
        	
                                                                 i.)

              	
                Company
                  business

              	
                5.00
                  hrs/day

              
	
                                                               
                  ii.)

              	
                Training

              	
                4.00
                  hrs/day

              
	
                                                              
                  iii.)

              	
                Union
                  Leave

              	
                5.00
                  hrs/day

              
	
                                                               iv.)

              	
                Jury
                  Duty Leave

              	
                5.00
                  hrs/day

              
	
                                                               
                  v.)

              	
                Military
                  Leave

              	
                4.00
                  hrs/day

              
	
                                                             
                  vi.)

              	
                Company
                  Offered Leave (COL)

              	
                3.00
                  hrs/day

              
	
                                                              vii.)

              	
                Medical
                  Leave

              	
                2.60
                  hrs/day

              
	
                                                            
                  viii.)

              	
                Workers
                  Comp

              	
                2.60
                  hrs/day

              
	
                                                              
                  ix.)

              	
                Maternity
                  Leave

              	
                2.60
                  hrs/day

              
	
                                                               
                  x.)

              	
                Family
                  Medical Leave

              	
                2.60
                  hrs/day

              
	
                                                              
                  xi.)

              	
                Personal
                  leave

              	
                2.60
                  hrs/day

              
	
                                                             
                  xii.)

              	
                Non-pay
                  Status

              	
                2.60
                  hrs/day

              
	
                                                          
                    xiii.)

              	
                Furlough

              	
                2.75
                  hrs/day

              
	
                                                           
                  xiv.)

              	
                Resignation

              	
                2.50
                  hrs/day

              
	
                                                            
                  xv.)

              	
                Retirement

              	
                2.60
                  hrs/day

              
	
                                                             xvi.)

              	
                Other

              	
                2.60
                  hrs/day

              
	
                                                           
                  xvii.)

              	
                Vacation

              	
                18.00
                  hrs/week

              
	
                                                           
                  xviii) 

              	
                VAC-DAT

              	
                3.60
                  hrs/day

              
	
                                                              
                  xix)

              	
                DH
                  travel training day

              	
                3.00
                  hrs/day

              

      

      

      
        	c.  	
                If
                  a Flight Attendant is withheld from service by the Company at the
                  time of
                  bid closing she will bid for a schedule for the following bid period
                  in
                  accordance with this section. 

              

      

      

      
        	d.  	
                When
                  awarded in a line, recurrent ground training, recurrent check rides,
                  or
                  any Company business, will not reduce a Flight Attendant’s days off to
                  less than the scheduled minimum as set forth in Article 24 (Hours
                  of
                  Service). 

              

      

      

      
        	e.  	
                No
                  later than forty-eight (48) hours prior to the closing of each
                  bid period,
                  the Company will make available to the Scheduling Committee the
                  bid
                  eligibility list including known absences.

              

      

      

      
        	i.)  	
                If
                  the Scheduling Committee discovers an error or a violation of the
                  Agreement in the bid eligibility list before the bids have been
                  awarded,
                  the committee will notify the Company as soon as practical. Prior
                  to
                  awarding the bids, the Company will correct any error or violation
                  that
                  would affect the accuracy of the PBS award.

              

      

      

      
        	ii.)  	
                Prior
                  to awarding the bids for specific equipment and position, the Company
                  will
                  correct any error or violation that it discovers in the bid eligibility
                  list that would affect the accuracy of the PBS award.
                  

              

      

      

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      
        	2.  	
                Each
                  Flight Attendant’s schedule will be constructed by the Company utilizing
                  the PBS. The PBS will determine the number of Regular lines to
                  be
                  constructed. Until the PBS is capable of constructing CDO lines,
                  Composite
                  lines and/or Reserve lines that comply with this Agreement, the
                  Company
                  will manually construct such lines. All Regular lines, CDO lines,
                  Composite lines, and Reserve lines will be awarded and/or assigned
                  in
                  accordance with a Flight Attendant’s seniority, bid preferences and this
                  Agreement. 

              

      

                                
        

                                
        3. The
        PBS
        System, in accordance with this Agreement, will construct: 

      

      
        	a.  	
                As
                  many Regular lines as practicable containing no less than 75 credit
                  hours,
                  and no more than 92 credit hours (100 credit hours upon PBS implementation
                  of i.) below) which include: 

              

      

       

      
        	i.)  	
                The
                  Company and the Union will jointly work with the PBS vendor to
                  develop and
                  implement options to create Regular lines to allow for Low Time
                  Schedules
                  (LoSked), Average Line (AveLine) and High Time Schedules
                  (HiSked). 

              

      

      

      
        	ii.)  	
                A
                  Regular line holder will not be assigned charters or reserve days
                  unless
                  the line holder bids for each respectively.

              

      

      

      
        	iii.)  	
                Regular
                  lines will not contain out of Base trips.

              

      

      

      
        	iv.)  	
                All
                  lines will have no less than the minimum days off in Base as provided
                  for
                  in Article 24 (Hours of Service) 

              

      

      

      
        	b.  	
                Guaranteed
                  Low Time Lines

              

      

      

      
        	i.)  	
                Guaranteed
                  Low Time (GLT) Holder is defined as a Flight Attendant who shall
                  bid for a
                  line that consists of no less than thirty-seven and a half (37.5)
                  credit
                  hours and no more than 52 credit hours. When a Flight Attendant
                  is awarded
                  a GLT line, her guarantee will be thirty-seven and a half (37.5)
                  credit
                  hours. 

              

      

      

      
        	ii.)  	
                The
                  Company and the Union will continue to work with the PBS vendor
                  to achieve
                  automation of administration of GLT lines. Until the PBS system
                  is capable
                  of generating GLT lines, the current job share program shall remain
                  in
                  effect.

              

      

      

      
        	iii.)  	
                A
                  designated GLT Flight Attendant’s monthly schedule will be awarded by the
                  PBS system in seniority order within base, from her bid submitted
                  monthly
                  or if no bid was submitted a line will be awarded based on her
                  default
                  bid. 

              

      

      

      
        	iv.)  	
                A
                  Flight Attendant desiring to remove herself from the list of GLT
                  Flight
                  Attendants must give written notice to her Inflight Supervisor
                  before the
                  end of the second month prior to the month in which the removal
                  is to be
                  effective (e.g. no later than May 31 for removal from GLT for July).
                  

              

      

      

      
        	v.)  	
                The
                  number of designated GLT Flight Attendants will not exceed 10%
                  of the
                  total workforce and may not exceed 20% of the total Flight Attendants
                  in a
                  given base. 

              

      

      

      
        	vi.)  	
                A
                  Flight Attendant granted GLT status must remain in such status
                  for a
                  minimum of six (6) months. 

              

      

      

      
        	vii.)  	
                GLT
                  Flight Attendants will accrue their Sick/Vacation time at one-half
                  (1⁄2) the
                  normal rate. 

              

      

      

      
        	viii.)  	
                Current
                  Job Share Holders will be Grand-fathered into the Program.
                  

              

      

      

      
        	ix.)  	
                GLT
                  holders shall be limited to trading and picking up of open time
                  pairings
                  such that they shall not exceed sixty (60) hours per month, unless
                  there
                  are insufficient reserves or volunteers to cover available open
                  time. The
                  Company will notify the Union of any situation that requires allowing
                  GLT
                  holders to exceed 60 hours. 

              

      

      

      
        	x.)  	
                See
                  Letter of Agreement #4 for GLT selection process and
                  benefits.

              

      

                                                         

                                                        
          xi.) GLT
        Holders will advance on the pay scale at the same rate as all other Flight
        Attendants based on active service or as otherwise provided for in this
        Agreement. 

      

                  c. Continuous
        Duty Overnight Lines (CDO Lines)

       

                                                            
        i.) The
        Company may construct CDO pairings. Such CDO pairings will consist of one
        (1)
        duty period and will not be constructed back-to-back except within pure CDO
        lines. 

       

                                                           
        ii.)  A
        Flight
        Attendant on a pure CDO line will be scheduled days off in accordance with
        Article 24 (Hours of Service) of this Agreement. However, a Flight Attendant
        will not be   

      
        	                                                            
                scheduled for more than four (4) consecutive CDOs. A minimum of three
                (3)
                days off will follow any block of four (4) consecutive CDOs.
                

      

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      iii.) CDOs
        will
        be scheduled with a minimum of five (5) hours of ground time, block in to
        block
        out. If less than four (4) hours of ground time is realized, a Flight Attendant
        must have twelve (12) hours off duty during her next scheduled rest period.
        

      

      iv.) A
        CDO
        trip pairing shall not be scheduled for more than five (5) legs, including
        deadheads. After the ground time in paragraph c. above, the Flight Attendant
        may
        have no more than two legs returning her to her Base. 

      

      v.) A
        Flight
        Attendant will not be required to participate in training without her consent
        during the scheduled ground time on a CDO. 

      

      vi.) No
        Flight
        Attendant will be scheduled/rescheduled from a CDO trip to any other trip,
        other
        than another CDO. 

      

      vii.) CDO
        trips
        will terminate and the Flight Attendant will be released upon first arrival
        at
        her Base following the CDO period. 

      

      viii.) A
        Flight
        Attendant awarded or assigned a CDO pairing that is not part of a pure CDO
        line
        will be released to rest upon completion of that pairing and will not be
        required to be available for an assignment prior to 0500 on the following
        day.

      

      d. Composite
        Lines

      

      i.)  Composite
        lines will contain days off in accordance with Article 24 (Hours of Service)
        and
        may contain some CDOs and reserve duty days. Composite lines may also contain
        charters. 

      

      ii.) To
        the
        extent practicable, the PBS will construct Composite lines with a minimum
        of
        out-of-Base trips and reserve assignments. 

      

      iii.) Composite
        lines will be credited at four (4) hours virtual flight credit toward the
        PBS
        minimum window for each day of reserve. 

      

      e. Reserve
        Lines

      

      A
        Flight
        Attendant who is not awarded or assigned a Regular line, Composite line,
        or CDO
        line will be awarded or assigned a Reserve line. 

      

      
        	i.)  	
                A
                  Reserve line will contain:

              

      

      

      
        	a.)  	
                Reserve
                  days and at least the minimum days off as provided for in Article
                  24
                  (Hours of Service), 

              

      

      

      
        	b.)  	
                In
                  Base reserve days, 

              

      

      

      
        	c.)  	
                Out
                  of Base reserve days and associated deadhead, if applicable, in
                  accordance
                  with this Article, 

              

      

      

      
        	d.)  	
                Type
                  of reserve (i.e. Reserve call out periods in 12 hour blocks).
                  

              

      

      

      
        	ii.)  	
                Regular
                  reserve days will be credited at four (4) hours flight credit toward
                  the
                  PBS minimum window for each day of regular reserve.
                  

              

      

      

      
        	iii.)  	
                The
                  Company will determine the need for reserves as provided for in
                  this
                  Article for each day of the bid period. Reserve lines will then
                  be
                  constructed using the bid preferences of the Flight Attendant.
                  

              

      

      
        	iv.)  	
                Flight
                  Attendants who bid reserve may bid preferences for: specific days
                  off,
                  weekends off, consecutive days off, training, and such other options
                  as
                  may be integrated into the PBS. Preferences will be awarded in
                  seniority
                  order. 

              

      

       

      4. After
        the
        Company has completed the line construction process utilizing the PBS,
        additional pairings will not be added to or removed from a Regular, CDO,
        GLT or
        Composite (other than reserve assignments) line except as otherwise provided
        for
        in this Agreement.  

       

      5. The
        Company will complete the line construction process no later than forty-eight
        (48) hours after the closing of bids. After the line construction process
        has
        been completed, the Company will notify the Scheduling Committee as far in
        advance as practical of the time that the lines will be ready for review.
        Before
        distribution of the bid award, the Committee will have twenty-four (24) hours
        to
        review the lines for compliance with this Agreement. 

      

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      
        	a.  	
                When
                  the Committee reviews the lines, the Company will:
                  

              

      

      

      
        	i.)  	
                Release
                  from schedule up to two (2) members of the Committee.
                  

              

      

      

      
        	ii.)  	
                Release
                  from schedule additional members of the committee if the Company
                  and the
                  Union determines they are required, and provided there is adequate
                  reserve
                  coverage. 

              

      

      

      
        	iii.)  	
                Cover
                  Flight Pay loss for the designated Committee members, which will
                  be
                  considered Union Leave and will be reimbursed to the Company by
                  the Union
                  as per Article 12 (Leaves of Absence).

              

      

      

      
        	b.  	
                A
                  member of the Committee who reviews the lines on a day off will
                  have the
                  option to receive flight pay equal to five (5) hours above guarantee,
                  which will be considered Union Leave and will be reimbursed by
                  the Union
                  as per Article 12 (Leaves of Absence).

              

      

      

      
        	c.  	
                The
                  Committee will promptly notify the Company if it discovers an error
                  or
                  violation of the Agreement in the lines. The Company will conduct
                  a re-run
                  of the bid award if a Regular, Composite or CDO line does not comply
                  with
                  the Agreement or contains an error resulting from a discrepancy
                  in the bid
                  eligibility list, a computer or software (PBS) malfunction or an
                  omission
                  of a known absence or activity. Any error or violation of the Agreement
                  in
                  a reserve line for a category will be corrected prior to distribution
                  of
                  the bid award for that category. 

              

      

      

      
        	d.  	
                If
                  the Company conducts a re-run of the lines, the committee will
                  expedite
                  any additional review necessary to complete the process.
                  

              

      

      

      
        	e.  	
                The
                  Union’s Scheduling Committee will notify the Company immediately if it
                  does not wish to review the lines. 

              

      

      

      6. If
        the
        Company conducts a re-run of the lines, the distribution of the bid award
        may be
        delayed but will be distributed promptly after completion of the re-run.
        Unless
        the Company and the Union agree otherwise, a re-run of a bid award will not
        be
        conducted once the bid award has been distributed. 

      

          F. Displacements

      

      
        	1.  	
                Following
                  distribution of the bid award, the Company may displace a Flight
                  Attendant
                  from her awarded or assigned pairing for the purpose of completing
                  another
                  Flight Attendant’s OE. The displaced Flight Attendant will either be
                  released from duty for the remainder of the day or reassigned to
                  a trip
                  scheduled to end within her original trip hour period. The Flight
                  Attendant will be credited with the greater of the value of the
                  trip
                  originally assigned or the trip to which she was reassigned, if
                  any.
                  

              

      

      

      
        	2.  	
                If
                  more than one (1) Flight Attendant is assigned to the same trip,
                  the
                  senior Flight Attendant will have the choice of flying the trip
                  or not.
                  The Flight Attendant not flying the trip will either be reassigned
                  to a
                  trip, during the days spanning the original trip, or released from
                  duty
                  for the remainder of the day and will be credited with the greater
                  of the
                  value of the trip originally assigned or the trip to which she
                  is
                  reassigned, if any. 

              

      

      

      
        	3.  	
                A
                  Flight Attendant who has been displaced from a trip pairing shall
                  contact
                  crew scheduling for assignment after 1700 base time on the day
                  before each
                  day of the trip from which displaced. (Agreed
                  6-1-04)

              

      

      

      
        	4.  	
                If
                  the Flight Attendant was originally assigned an out and back trip
                  pairing
                  or if it is the first day of a multi day trip, Crew Scheduling
                  may
                  reassign a trip according to the following:

              

      

      

      
        	a.  	
                If
                  the original report time was before 1000, then Crew Scheduling
                  may
                  reassign a trip pairing that starts at the original report time
                  or later.
                  

              

      

      

      
        	b.  	
                If
                  the original report time was after 1000, then Crew Scheduling may
                  reassign
                  a trip pairing that starts no earlier than two (2) hours before
                  the
                  original report time, but no earlier than 1000.

              

      

      

      
        	5.  	
                On
                  subsequent days of a multi-day trip pairing, a Flight Attendant
                  will not
                  be reassigned a trip starting earlier than 1000 unless given the
                  assignment two (2) nights prior to the assignment without concurrence
                  of
                  the Flight Attendant. 

              

      

      

      
        	6.  	
                The
                  reassignment will end no later than the originally assigned trip
                  pairing
                  without the Flight Attendant’s consent.

              

      

      

      

      
        
          	7.  	
                  The
                    Flight Attendant will not be reassigned any type of reserve without
                    her
                    consent. 

                

        

        
          	 	 

        

        
          	
                  8. 

                	 If
                  crew scheduling has no assignment at the time of contract from
                  the Flight
                  Attendant, then she shell be given the day(s) off free from
                  duty.

        

      

      

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      
        	G.  	
                Posting
                  and Assigning of Open Time

              

      

      

      
        	1.  	
                The
                  Company will post all open time by base, after the final bid award,
                  and
                  update the post on a continuous real time basis.
                  

              

      

      

      

      
        	2.  	
                Open
                  time that becomes available during the bid period shall include
                  but not be
                  limited to; pairings or portions thereof dropped because of illness
                  or
                  injury, vacations, leaves of absence, training, charters, extra
                  sections,
                  other revenue flying, trips dropped for personal reasons or those
                  pairings
                  the PBS is unable to award or assign in the line construction process.
                  

              

      

      

      
        	3.  	
                All
                  open time not awarded or assigned that becomes available after
                  the bids
                  are awarded or assigned will be picked up in the following order,
                  provided
                  that such assignment shall not conflict with the FAR or any other
                  provision of this Agreement:, provided, however, that open time
                  may be
                  assigned to an in-base reserve at any time.

              

      

      

      
        	a.  	
                Awarded
                  to any Flight Attendant in the Base where the Open time exists,
                  on a
                  first-come, first-served basis, who volunteers for the open time
                  assignment at least forty-eight (48) hours in advance of the scheduled
                  show time. This will not restrict Scheduling from awarding open
                  time
                  within forty eight (48) hours of the scheduled show time; then;
                  

              

      

      

      
        	b.  	
                Awarded
                  to any other Flight Attendant from another base, on a first come,
                  first
                  served basis, who volunteered for open time at least forty-eight
                  (48)
                  hours in advance of the scheduled show time. This will not restrict
                  Scheduling from awarding open time within forty- eight (48) hours
                  of the
                  scheduled show time. The Out of Base Flight Attendant is responsible
                  for
                  getting to the assignment and back home from the assignment, then;
                  

              

      

      

      
        	c.  	
                Assigned
                  to a reserve Flight Attendant from another base (this step may
                  be
                  skipped); then 

              

      

      

      
        	d.  	
                Assigned
                  to a supervisory Flight Attendant, if no other Flight Attendant
                  is
                  available for such assignment without delaying or canceling the
                  flight.
                  

              

      

      

      
        	H.  	
                Open
                  Time, Drops, Adds and Offers. 

              

      

      

      
        	1.  	
                The
                  Company and the Union will continue to meet with the PBS vendor
                  in
                  developing and implementing an automated Trip trading / dropping
                  /
                  adding/offering system. 

              

      

      

      
        	2.  	
                Drops

              

      

      

      A
        Flight
        Attendant may “Drop” trip(s) from her line as provided below. A Flight Attendant
        may submit a request to Crew Planning/Scheduling at any time to drop a pairing.
        If sufficient reserves are available the request will be approved. The Company
        may deny a line holder’s request to drop a pairing if there is insufficient
        reserve coverage to operate the pairing. Drop requests must be submitted
        no
        later than 48 hours prior to the report time of the trip. The 48 hour
        requirement may be waived by the Company 

      

      
        	a.  	
                Trip
                  drop(s) that are submitted seven (7) days or more prior to the
                  date of the
                  earliest proposed drop will be approved or denied at least forty-eight
                  (48) hours prior to the report time for the earliest trip being
                  dropped.
                  

              

      

      

      
        	b.  	
                Trip
                  drop(s) that are submitted less than seven (7) days prior to the
                  date of
                  the earliest proposed drop will be approved or denied no later
                  than
                  twenty-four (24) hours before the report time for the earliest
                  trip being
                  dropped. 

              

      

      

      
        	3.  	
                Adds

              

      

      

      A
        Flight
        Attendant may “Add” trip(s) to her line from Open Time, as provided in Paragraph
        G. above. A selected trip must not conflict with any existing assignments
        and
        all FAR and contractual legalities must be observed. 

      

      
        	4.  	
                Offers

              

      

      

      The
        Company and the Union will continue to meet with the PBS vendor in developing
        and implementing an electronic system whereby a Flight Attendant may “Offer”
        trip(s) which she would like to drop from her line. If another Flight Attendant
        selects the offered trip, and the exchange satisfies the requirements for
        a
“mutual trade” as set out below, the trip will be dropped from the offering
        Flight Attendant’s line and inserted into the adding Flight Attendant’s line.
        Until the offered trip is selected by another Flight Attendant, and the offering
        Flight Attendant has confirmed with Crew Scheduling that the trip has been
        removed from her schedule, the offering Flight Attendant will remain responsible
        for the trip(s). A selected trip must not conflict with any existing assignments
        and all contractual legalities and FAR must be observed. 

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      
        	5.  	
                A
                  Flight Attendant who Drops, Offers or Adds will have her guarantee
                  adjusted either up or down to reflect the addition or reduction
                  of flight
                  time as provided in Article 3 (Compensation) of this Agreement.
                  

              

      

      

      
        	6.  	
                Requests
                  for Drops, Adds or Offers may be made verbally over a recorded
                  line,
                  electronically, in writing, or by any other means mutually agreed
                  upon by
                  the Company and the Union. 

              

      

      

      
        	I.  	
                Mutual
                  Trade Procedures

              

      

      

      
        	1.  	
                A
                  Flight Attendant may participate in up to 7 trades each month.
                  

              

      

      

      
        	2.  	
                Trip
                  trade requests may be for a partial or an entire
                  trip.

              

      

      

      
        	3.  	
                A
                  Flight Attendant who has requested a trade will remain responsible
                  for her
                  original assignment until she has been notified that the trade
                  or drop has
                  been approved. 

              

      

      

      
        	4.  	
                Mutual
                  trip trade requests may be submitted in writing (signed by both
                  Flight
                  Attendants), verbally over a recorded line with all parties involved
                  agreeing to the trade, via the internet, or through any other means
                  implemented in the future with the mutual agreement of the Company
                  and the
                  Union. 

              

      

      

      
        	5.  	
                Trip
                  trades submitted to Crew Planning/Scheduling should be submitted
                  no less
                  than forty-eight (48) hours prior to the date of the earliest proposed
                  mutual trade. Crew Planning/Scheduling or the participating Flight
                  Attendants may waive the forty-eight (48) hour requirement.
                  

              

      

      

      
        	6.  	
                Trip
                  trades must not violate any FAR or any section of this Agreement.
                  Crew
                  Planning/Scheduling may require up to a ninety (90) minute buffer
                  when
                  there is a potential for illegality under the FAR or this Agreement.
                  If a
                  trade is not approved, the Flight Attendant will be advised of
                  the
                  non-approval and the reasons for the denial.

              

      

      

      
        	7.  	
                A
                  Flight Attendant who loses time from her schedule because of a
                  trip trade
                  or drop will have her guarantee adjusted as provided in Article
                  3
                  (Compensation) of this Agreement. 

              

      

       

      
        	J.  	
                Notification
                  on Layover

              

      

      

      
        	1.  	
                The
                  Company may attempt direct contact with a Flight Attendant during
                  a
                  layover subject to the following conditions:

              

      

      

      
        	a.  	
                Any
                  time during the layover in the case of a personal or family emergency
                  affecting the Flight Attendant. 

              

      

      

      
        	b.  	
                Within
                  one (1) hour after block in time or one (1) hour before scheduled
                  show
                  time for notification of a change in show or schedule or to avoid
                  a FAR
                  violation. 

              

      

      

      
        	2.  	
                Unless
                  provided for in 1 above, the Company may NOT directly contact a
                  Flight
                  Attendant during any layover that is less than nine (9) hours.
                  The Company
                  may attempt to make indirect contact with the Flight Attendant
                  through
                  means of hotel resources (such as, but not limited to, having the
                  desk
                  activate the phone message light, a hand written note under the
                  door,
                  message at the front desk). 

              

      

      

      
        	3.  	
                Should
                  a Flight Attendant be directly contacted during a layover outside
                  of the
                  limitations set forth in this paragraph, with the notable exception
                  of a
                  personal or family emergency affecting the Flight Attendant, the
                  Flight
                  Attendant’s minimum rest will be extended by 30 minutes. The Flight
                  Attendant may waive this requirement.

              

      

      

      
        	K.  	
                Modifications,
                  Reschedules 

              

      

      

      
        	1.  	
                A
                  modification/reschedule is any change to a pairing after its first
                  distribution as a final bid award. The Company may modify a pairing
                  in
                  order to meet operational necessity within the original trip hour
                  period.
                  

              

      

      

      
        	2.  	
                Unless
                  the Flight Attendant consents and/or other mutually agreed upon
                  arrangements are made between the Flight Attendant and Crew
                  Planning/Scheduling, a Flight Attendant’s pairing will not be modified to
                  extend the pairing into any of her days off for any reason except
                  for
                  circumstances beyond the control of the Company (e.g. weather,
                  mechanical). 

              

      

      

      
        	3.  	
                All
                  rescheduling will be in accordance with and subject to all other
                  applicable provisions of this Agreement.

              

      

      

      
        	4.  	
                A
                  Flight Attendant holding a reserve line who has received a trip
                  assignment
                  may be rescheduled within the limitations of Articles 6 and 24
                  (Scheduling/Hours of Service). 

              

      

      

      
        	5.  	
                After
                  the publication of the final bid award, a Flight Attendant holding
                  a
                  Regular or Composite line may be rescheduled within the limitations
                  of
                  Articles 6 and 24 (Scheduling/Hours of Service).
                  

              

      

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      
        	a.  	
                When
                  a Flight Attendant is rescheduled prior to the date on which a
                  pairing
                  (i.e. flight, ferry, training or deadhead assignment) is scheduled
                  to
                  commence, the following will apply:

              

      

      

      
        	i.)  	
                When
                  the Company notifies a line holder of a reschedule, the notification
                  will
                  be in a timely and appropriate manner.

              

      

      

      
        	ii.)  	
                The
                  Flight Attendant will not be given an assignment that is scheduled
                  to
                  operate earlier than the scheduled report time of her original
                  pairing
                  without the consent of the Flight Attendant unless the original
                  scheduled
                  report time was after 1000, in which case she may be assigned to
                  report
                  earlier than the original report time, but no earlier than 1000.
                  

              

      

      

      
        	iii.)  	
                The
                  Flight Attendant will not be given an assignment with a scheduled
                  release
                  time more than two (2) hours later than the original scheduled
                  release
                  time, without the Flight Attendant’s consent. On a multiple day pairing,
                  the release time will be considered to be the scheduled release
                  time on
                  the last day of the originally scheduled assignment.
                  

              

      

      

      
        	b.  	
                When
                  a Flight Attendant is rescheduled on the same day on which a flight
                  or
                  deadhead assignment is scheduled to operate, the Company will notify
                  the
                  Flight Attendant and, at its option:

              

      

      

      
        	i.)  	
                Direct
                  her to remain on rest if she has not reported for duty;
                  

              

      

      

      
        	ii.)  	
                Assign
                  her to complete any remaining flight segment(s) in the pairing;
                  

              

      

      

      
        	iii.)  	
                Assign
                  her to remain available for repositioning of the crew and/or aircraft;
                  

              

      

      

      
        	iv.)  	
                Assign
                  her to another pairing with a scheduled release time no more than
                  2 hours
                  later than the scheduled release time on the last day of her original
                  pairing; 

              

      

      

      
        	v.)  	
                Assign
                  her to remain “airport available” up to two (2) hours following
                  notification of rescheduling. While “airport available” the Flight
                  Attendant will remain readily available for any flight or deadhead
                  assignment with a scheduled release time no more than two (2) hours
                  later
                  than the scheduled release time of her original scheduled pairing.
                  If the
                  Flight Attendant has not been assigned after two (2) hours of “airport
                  available”, she is released. 

              

      

      

      
        	vi.)  	
                Release
                  her from all duty. Once released, she will not be required to remain
                  telephone available for the duration of the original pairing. For
                  a
                  multi-day pairing, the Flight Attendant shall contact Crew Scheduling
                  after 1700 hours the day preceding each remaining day of the original
                  pairing. If there is no assignment she will be released for the
                  following
                  day. 

              

      

      

      
        	vii.)  	
                Provided
                  the Flight Attendant supplies crew scheduling with contact information
                  while on a trip, notification of a modification or rescheduling
                  of the
                  Flight Attendant’s assignment will be by direct contact between
                  Scheduling/Planning and the affected Flight Attendant.
                  

              

      

      

      
        	6.  	
                In
                  the event of an equipment substitution of a single Flight Attendant
                  aircraft for an aircraft scheduled with two Flight Attendants (e.g.
                  EMB
                  170- EMB 145, etc.), the senior Flight Attendant will have the
                  option of
                  working the modified pairing or becoming subject to reassignment
                  in
                  accordance with L. below. The junior Flight Attendant will then
                  either
                  work the modified pairing or be subject to reassignment in accordance
                  with
                  L. below. 

              

      

      

      
        	L.  	
                A
                  Flight Attendant holding a Regular line who becomes subject to
                  rescheduling shall not be placed on reserve. Rescheduling must
                  be within
                  the limitations of Articles 6 and 24. A Flight Attendant scheduled
                  for a
                  single day trip will not be rescheduled for a multi-day trip. A
                  Flight
                  Attendant subject to be rescheduled pursuant to this section will
                  be paid
                  the greater of her actual or rescheduled trip, if any. A Flight
                  Attendant
                  who voluntarily “Adds” trips from Open Time, and whose trips are
                  subsequently canceled will not be required to be available on the
                  same
                  day(s) of her trip, nor will she be pay protected for the trip.
                  

              

      

      

      
        	M.  	
                Reserve
                  Duty

              

      

      

      
        	1.  	
                General

              

      

      

      
        	a.  	
                When
                  the Company has a flight assignment to cover, Crew Scheduling will
                  call
                  reserve Flight Attendants in reverse order of seniority as long
                  as all
                  other factors are equal and taking into account operational requirements
                  for the base (e.g., a senior Flight Attendant on reserve is available
                  for
                  two (2) days and a junior Flight Attendant is available for four
                  (4) days.
                  A two (2) day trip is open. The senior Flight Attendant could be
                  assigned
                  if the Company felt it was in its best interest. If both Flight
                  Attendants
                  were available for two (2) days and all other factors were equal,
                  the
                  junior Flight Attendant will be called first).

              

      

      

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      
        	b.  	
                Reserve
                  periods with twelve (12) hour callout periods, will be designated
                  by the
                  Company and published in the bid package to be bid on by the Flight
                  Attendant group. The Company will establish the number and start
                  time of
                  the reserve periods. Each reserve period will begin and end in
                  the same
                  day. 

              

      

      

      
        	c.  	
                Preferences
                  in the bidding for reserve periods will be awarded in seniority
                  order from
                  among Flight Attendants indicating a preference in the respective
                  Base.
                  

              

      

      

      
        	d.  	
                A
                  reserve Flight Attendant will not be required to be available during
                  more
                  than one (1) reserve period in any day. A Flight Attendant on reserve
                  will
                  not be scheduled to be on call in excess of twelve (12) hours in
                  a day. A
                  Flight Attendant on reserve shall not be assigned to a flight assignment
                  that is scheduled to exceed fourteen (14) hours.
                  

              

      

      

      
        	e.  	
                A
                  reserve Flight Attendant will not be rescheduled from an awarded
                  reserve
                  period/type to another reserve period/type without at least 18
                  hours prior
                  notice from the start of the old or new reserve period whichever
                  is
                  earlier. 

              

      

      

      
        	f.  	
                A
                  reserve Flight Attendant will not be required to be available on
                  a day off
                  or during a rest period, but will be required to be available during
                  her
                  reserve periods. 

              

      

      

      
        	g.  	
                A
                  reserve Flight Attendant will not be required to start a callout
                  period
                  with less than the minimum rest required by Article 24 (Hours of
                  Service).
                  

              

      

      

      
        	h.  	
                For
                  the purposes of calculating days off, a reserve day will be considered
                  a
                  day of work. The Company will not move days off once awarded. A
                  Flight
                  Attendant on reserve who is assigned a RON that extends into a
                  day off
                  will be given the option of receiving day off pay pursuant to Article
                  3,
                  or having that day off restored in the current or following month.
                  The
                  Company will not make such assignment if there is another reserve
                  available in the Base, and calling out such reserve will not delay
                  the
                  flight. 

              

      

      

      
        	i.  	
                The
                  Company will make an assignment to an available reserve Flight
                  Attendant
                  as far in advance as practicable. The assignment, when given for
                  the same
                  day, must be scheduled to commence no later than 2 hours after
                  the end of
                  the Flight Attendant’s reserve period.

              

      

      

      
        	j.  	
                Reserve
                  and Composite lines will be built to provide coverage for the Company’s
                  anticipated needs and will also include the type(s) and time of
                  the
                  reserve period. 

              

      

      

      
        	k.  	
                A
                  Flight Attendant assigned to sit reserve in another Base will be
                  paid per
                  diem and will be provided with hotel accommodations for multi-day
                  reserve
                  assignments or a single day assignment to sit reserve for more
                  than 5
                  hours. Multi-day out-of-Base reserve assignments will not exceed
                  four
                  consecutive days from report to release at her permanent Base.
                  

              

      

      

      
        	2.  	
                A
                  Flight Attendant on reserve who is assigned a trip pairing if removed
                  from
                  the assignment or upon completion of her assignment will either
                  be given
                  another assignment commencing within the reserve period or remain
                  on call
                  in accordance with the following table:

              

      

      

      
        	
                Time
                  remaining of Original Callout Period

              	
                Hours
                  of Remaining Availability

              
	
                0
                  to 59 minutes

              	
                0

              
	
                  
                  1 to 2:59

              	
                1

              
	
                  
                  3 to 4:59

              	
                2

              
	
                  
                  5 to 6:59

              	
                3

              
	
                  
                  7 to 9:59

              	
                4

              
	
                                                                              
                  10 +

              	
                5

              

      

      

      
        	3.  	
                Upon
                  completion of a trip assignment a reserve Flight Attendant shall
                  contact
                  scheduling prior to leaving the Base.

              

      

      

      
        	4.  	
                When
                  a reserve Flight Attendant is given an assignment for a future
                  date, her
                  duty time for pay and rest will commence at the scheduled report
                  time of
                  the assignment. When a Flight Attendant is given an assignment
                  for the
                  same day, her duty time for rest calculation will commence at the
                  time she
                  is notified of the assignment, and pay shall commence at report
                  time.
                  

              

      

      

      
        	5.  	
                The
                  Company may, in its discretion, release a Flight Attendant from
                  a reserve
                  period earlier than originally scheduled. A Flight Attendant on
                  the last
                  day of a reserve sequence may call Crew Planning/Scheduling up
                  to four (4)
                  hours before the reserve shift ends and request early release.
                  If adequate
                  reserve coverage is available, Crew Planning/Scheduling will release
                  the
                  Flight Attendant without penalty to her compensation.
                  

              

      

      

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      
        	6.  	
                A
                  reserve period will consist of a twelve (12) hour, same-day callout
                  period. The Flight Attendant will be responsible for maintaining
                  her
                  availability during this period to cover potential assignments
                  from Crew
                  Planning/Scheduling. 

              

      

      

      
        	7.  	
                A
                  reserve Flight Attendant will respond within twenty (20) minutes
                  of first
                  contact from Crew Scheduling. Once a Flight Attendant receives
                  notification of an assignment, she is no longer responsible to
                  be
                  available for contact prior to such assignment until report time.
                  

              

      

      

      
        	8.  	
                A
                  reserve Flight Attendant will be subject to a one and one-half
                  (1.5) hour
                  call out unless assigned to a Base where a shorter call out time
                  has been
                  mutually agreed upon by the Company and the Union. A Flight Attendant
                  will
                  make every effort to report earlier. If a Base covers multiple
                  airports a
                  callout time will be mutually agreed upon by the Company and the
                  Union.
                  

              

      

      

      
        	9.  	
                A
                  Flight Attendant on reserve may use a “pager” at her expense. However, the
                  Flight Attendant is solely responsible for ensuring the quality
                  of service
                  of the pager, and any malfunction of a pager is solely the responsibility
                  of the Flight Attendant. The Flight Attendant is also solely responsible
                  for ensuring that she remains within the pager’s calling area. A Flight
                  Attendant on reserve will respond to a telephone message or page
                  from the
                  Company within twenty (20) minutes, and such time will be included
                  in the
                  call out time required in paragraph 7 above.

              

      

      

      
        	10.  	
                Hot
                  Reserve

              

      

      

      
        	a.  	
                A
                  Flight Attendant on hot reserve may be scheduled for ten (10) hours
                  of on
                  premise duty and up to fourteen (14) hours of duty including on
                  premise
                  and scheduled flight assignments. If a hot reserve Flight Attendant
                  receives a flight assignment and concludes that assignment prior
                  to the
                  completion of the ten hours of hot reserve duty, she may be placed
                  back on
                  hot reserve for the remainder of her ten (10) hours of hot reserve
                  duty.
                  

              

      

      

      
        	b.  	
                Flight
                  Attendant on hot reserve will accrue flight credit in accordance
                  with
                  Article 3.I.2 (Compensation). 

              

      

      

      
        	c.  	
                A
                  Flight Attendant will not be required to be on hot reserve in an
                  airport
                  which is not a Base for the Company.

              

      

      

      
        	d.  	
                Hot
                  reserve will only be assigned at airports with a company designated
                  hot
                  reserve lounge area. A hot reserve lounge area will have comfortable
                  seating, no public access and noise and lighting can be limited.
                  

              

      

      

      
        	e.  	
                The
                  hot reserve assignments will be equitably allocated among the available
                  reserves in each Base in reverse seniority order at the time of
                  the
                  assignment. 

              

      

      

      
        	f.  	
                In
                  the bid award, the Company may schedule a Composite/Reserve line
                  holder
                  for up to ten (10) hot reserve days. If the Company later determines
                  that
                  it needs additional hot reserves, it may assign a reserve line
                  holder to
                  serve additional hot reserve duty in accordance with this Article
                  and will
                  compensate such Flight Attendant at the rate of twenty-five dollars
                  ($25.00) for each additional hot reserve assignment above ten (10).
                  

              

      

      

      
        	N.  	
                Illness
                  or Injury 

              

      

      

      
        	1.  	
                A
                  line holder who is unable to begin or complete an assignment or
                  portion
                  thereof because of illness or injury will notify Crew Scheduling
                  immediately and will be removed from the assignment. If the assignment
                  was
                  a pairing and the pairing has commenced, it will normally be assigned
                  to a
                  Reserve Flight Attendant. 

              

      

      

      
        	2.  	
                A
                  Reserve Flight Attendant who is unable to begin or complete an
                  assignment
                  or portion thereof because of illness or injury will immediately
                  notify
                  Crew Scheduling in accordance with Article 27 (Sick Leave).
                  

              

      

      

      
        	3.  	
                A
                  Line Holder, who has called in sick on a multiple day pairing and
                  is
                  subsequently able to return to flying prior to the completion of
                  the
                  original pairing, will notify Crew Scheduling of her desire to
                  return to
                  work, in accordance with Article 27 (Sick Leave) E.2.
                  

              

      

      

      
        	4.  	
                If
                  the Flight Attendant’s availability to return to work is in the middle of
                  a multi-day pairing, the Company will reinstate the Flight Attendant
                  into
                  her pairing in domicile at the earliest possible time. By mutual
                  agreement
                  between the Flight Attendant and Crew Scheduling, the Flight Attendant
                  may
                  return to her trip at a location other than her base, or be assigned
                  to
                  another trip within the days of her original trip.
                  

              

      

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      
        	5.  	
                If
                  the line holder is not able to return to her pairing because it
                  does not
                  transit her domicile, she may elect to remain on sick leave for
                  the
                  duration of her pairing; or, if the Company agrees, she may be
                  placed on
                  reserve and be credited with 4 hours pay for each day on reserve,
                  or the
                  value of any pairing assigned while on reserve, whichever is greater.
                  

              

      

      

      
        	6.  	
                A
                  Flight Attendant who has called in sick for an assignment and is
                  able to
                  report for her next assignment shall notify Crew Scheduling at
                  least six
                  hours prior to the next assignment.

              

      

      

      
        	O.  	
                General

              

      

      

      
        	1.  	
                If
                  two (2) line holders are scheduled to fly and report for the same
                  pairing,
                  the Flight Attendant who was awarded or assigned the pairing as
                  part of
                  her monthly bid award will fly the pairing. If the pairing was
                  not awarded
                  or assigned to either Flight Attendant as part of her monthly bid
                  award,
                  the more senior Flight Attendant will choose whether she wishes
                  to fly the
                  pairing. The Flight Attendant not flying the pairing will be considered
                  displaced in accordance with paragraph F., above.
                  

              

      

      

      
        	2.  	
                On
                  aircraft requiring more than one Flight Attendant, working positions
                  on
                  the aircraft will be chosen by
                  seniority.

              

      

      

      
        	3.  	
                If
                  a line holder and a reserve Flight Attendant are scheduled to fly
                  and
                  report for the same pairing, the line holder will fly the pairing.
                  The
                  reserve Flight Attendant will be reassigned in accordance with
                  paragraph
                  F., above. 

              

      

      

      
        	4.  	
                The
                  Company will provide the Union and the members of the Flight Attendant
                  Scheduling Committee an individual computer identification and
                  log-in for
                  the purpose of accessing the system in order to monitor compliance
                  with
                  the Agreement. Such access will not include the ability to alter
                  a Flight
                  Attendant’s schedule or any parameter of the programs. Each designee will
                  execute an agreement not to reveal her individual computer identification
                  and log-in to any other person, to share computer time or share
                  or discuss
                  any individual’s data with anyone other than the Company and the Union.
                  

              

      

      

      
        	5.  	
                The
                  Company will provide the Union’s Scheduling Committee with information
                  regarding the use of the software data used by the system. Changes
                  to the
                  program software that substantially affect the PBS or the daily
                  tracking
                  system will not be implemented without prior consultation between
                  the
                  parties. 

              

      

      

      
        	6.  	
                A
                  flight scheduled to terminate (duty end time) before 2400 (midnight)
                  will
                  be considered to have terminated on the same day it was scheduled
                  should
                  it actually terminate prior to 0200 the following day.
                  

              

      

      

      
        	7.  	
                Flight
                  Attendants based outside of the United States will be subject to
                  this
                  Agreement. 

              

      

      

      
        	8.  	
                With
                  the concurrence of Crew Scheduling, a Flight Attendant may be released
                  from a last leg to Base deadhead without penalty to her compensation.
                  

              

      

      

      
        	9.  	
                When
                  awarded in a line, recurrent training, checkrides, training, or
                  any other
                  Company assigned duty will not reduce a Flight Attendants days
                  off to less
                  than the minimum set forth in Article 24 (Hours of Service).
                  

              

      

      

      
        	10.  	
                All
                  communication between the Company and a Flight Attendant with respect
                  to
                  Assignment of Open Time, Trip Drops, rescheduling or other notification
                  or
                  direction will be done via the internet, over a recorded phone
                  line or
                  through such other means as may be mutually agreed upon between
                  the
                  Company and the Union. 

              

      

      

      
        	11.  	
                Under
                  normal circumstances a Flight Attendant will not be required to
                  occupy the
                  Flight Attendant Jumpseat on a deadhead flight. If required to
                  occupy a
                  jumpseat, the Flight Attendant will receive full flight pay.
                  

              

      

      

      
        	12.  	
                Unless
                  otherwise specified in this Article, all times are Local Headquarters
                  time. 

              

      

      

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        7

      

      VACANCIES

      

      A. Standing
        Bids 

      

      
        	 	
                1.

              	
                Flight
                  Attendants must submit standing bids indicating order of preference
                  for
                  domicile vacancies. The Company may require Flight Attendants to
                  submit
                  new or updated standing bids at least thirty (30) days prior to
                  any
                  circumstances that may cause the existing bid file to become outdated
                  (e.g., domicile closures, domicile openings or other substantial
                  operational changes, etc.). The Company will give at least 30 days
                  notice
                  to afford the Flight Attendant the opportunity to change the standing
                  bids.

              

      

      

      
        	 	
                2.

              	
                The
                  standing bid file will be maintained by the Company. Standing bids
                  will be
                  available for inspection by any Flight Attendant during normal
                  office
                  hours. 

              

      

      

      
        	 	
                3.

              	
                A
                  Flight Attendant may change her standing bid at any time by submitting
                  a
                  new standing bid to the Company. A Flight Attendant must bid on
                  an
                  approved format submitted to the Company by U.S. Mail, overnight
                  express,
                  facsimile, electronically, if available, or any other means mutually
                  agreed upon. 

              

      

      

      B. Notice
        of
        Vacancy 

      

      
        	 	
                1.

              	
                The
                  Company will determine when a vacancy exists. It will post a notice
                  of the
                  vacancy. The notice will specify the domicile at which each vacancy
                  will
                  occur. 

              

      

      

      
        	 	
                2.

              	
                Any
                  existing openings as well as projected vacancy openings will be
                  posted by
                  the Company on the first (1st)
                  of every month. If the first of every month is not available, the
                  company
                  will post in a timely manner, as to not interfere with the bidding
                  process.

              

      

      
        	 	
                3.

              	
                Bidding
                  will close at 1700 hours seven (7) days after the posting of the
                  notice of
                  vacancy. 

              

      

      

      
        	 	
                4.

              	
                A
                  Flight Attendant who has not previously bid between entities with
                  separate
                  operating certificates may bid between such entities to fill a
                  vacancy
                  only if the position the Flight Attendant desires to bid is in
                  a base/code
                  share that does not exist within the entity in which she is currently
                  employed.

              

      

      

      
        	 	
                5.

              	
                A
                  Flight Attendant who has previously bid between entities with separate
                  operating certificates may thereafter bid back to the previous
                  entity only
                  to fill a vacancy in a base/code share that did not exist at the
                  time she
                  bid out of that entity.

              

      

      

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      
        	 	
                6.

              	
                A
                  Flight Attendant bidding for a position requiring training before
                  she can
                  perform the duties of such position (e.g., bidding between entities
                  with
                  separate operating certificates), or a Flight Attendant who undergoes
                  initial training to become a Flight Attendant, may not thereafter
                  bid to
                  another position requiring training for twelve (12) months following
                  the
                  completion of such training. 

              

      

      

      
        	 	
                7.

              	
                The
                  restrictions of B.4-6 above shall not prevent a Flight Attendant
                  from
                  exercising the rights of Article 11 (Reduction in Force and Furlough)
                  between entities in the event of a reduction in
                  force.

              

      

      

      C. Awarding
        and Assignment of Vacancies 

      

      
        	 	
                1.

              	
                Awards
                  will be posted by 1700 hours four (4) days after the closing of
                  the bid.
                  

              

      

      

      
        	 	
                2.

              	
                The
                  Company will not normally post secondary, tertiary, etc., vacancies
                  caused
                  by filling primary vacancies. 

              

      

      

      
        	 	
                3.

              	
                Bids
                  for vacancies will be awarded in order of seniority using standing
                  bids on
                  file as of the date bidding is closed.

              

      

      

      
        	 	
                4.

              	
                If
                  no Flight Attendant bids a vacancy, the Company may assign a Flight
                  Attendant to that vacancy in reverse order of seniority.
                  

              

      

      

      
        	 	
                5.

              	
                The
                  Company will determine the effective date of an award which may
                  be changed
                  provided adequate notice is given and the change is not made for
                  arbitrary
                  reasons. The Company may cancel an award at any time before its
                  effective
                  date. 

              

      

      

      
        	 	
                6.

              	
                A
                  Flight Attendant awarded a vacancy will fill the vacancy within
                  sixty (60)
                  days after the effective date of the award.

              

      

      

      D. Domicile
        Swaps 

      

      Flight
        Attendants requesting a mutual domicile swap must submit a request in writing
        to
        the Company no later than the first (1st)
        of the
        month. Approval of a swap is subject to the following: 

      

      
        	 	
                1.

              	
                The
                  Company will review the mutual swaps on file no later than the
                  third
                  (3rd)
                  of the month and post those mutual swaps that will become effective
                  with
                  the following month’s bid award. 

              

      

      

      
        	 	
                2.

              	
                A
                  Flight Attendant who is senior to both petitioners of a base swap
                  may
                  protest said swap in writing within seven (7) days of posting only
                  if the
                  Senior Flight Attendant is willing to take the place of the more
                  Junior
                  Flight Attendants involved in the swap.

              

      

      

      
        	 	
                3.

              	
                If
                  the legitimate protest stands, the remaining Flight Attendant may
                  withdraw
                  the request and no swap will be
                  awarded.

              

      

      

      
        	 	
                4.

              	
                Flight
                  Attendants may not request domicile swaps between entities with
                  separate
                  operating certificates.

              

      

      

      E. Temporary
        Vacancies 

      

      
        	 	
                1.

              	
                A
                  temporary vacancy will be any vacancy anticipated to exist for
                  less than
                  ninety (90) days. 

              

      

      

      
        	 	
                2.

              	
                When
                  the Company decides to fill a temporary vacancy, it will, if practicable,
                  fill such vacancy from among qualified Flight Attendants in seniority
                  order who have expressed a desire to fill a temporary vacancy,
                  regardless
                  of domicile. If the vacancy remains unfilled, the temporary vacancy
                  will
                  be assigned to a reserve Flight Attendant in reverse seniority
                  order,
                  insofar as may be practicable. 

              

      

      

      
        	 	
                3.

              	
                A
                  Flight Attendant filling a temporary vacancy will be paid per diem
                  and
                  expenses in accordance with this Agreement, through the duration
                  of the
                  temporary vacancy. 

              

      

      

      
        	 F. 
                All
                times referred to in this Article are local time at the Company’s
                headquarters. 

      

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        8

      

      CHECK
        FLIGHT ATTENDANTS

      

      
        	A.  	
                General

              

      

      

      
        	1.  	
                A
                  Check Flight Attendant is defined as a Flight Attendant who has
                  been
                  selected to become a Check Flight Attendant to perform Line Checks,
                  OE
                  (Operating Experience), and Ramp Checks.

              

      

      

      
        	2.  	
                OE,
                  Line Checks and Ramp Checks shall be conducted only by qualified
                  Check
                  Flight Attendants on the Flight Attendant Seniority List or qualified
                  Inflight management. 

              

      

      

      
        	3.  	
                The
                  performance of Check Flight Attendant duties by Flight Attendants
                  on the
                  seniority list shall not cause those Flight Attendants to become
                  Management Employees. 

              

      

      

      
        	B.  	
                Selection
                  and Retention of Check Flight Attendants

              

      

      

      
        	1.  	
                The
                  selection and retention of Check Flight Attendants shall be at
                  Company
                  discretion but consistent with the following criteria:
                  

              

      

      

      
        	a.  	
                A
                  total of one year Flight Attendant experience, with at least nine
                  of those
                  months with Chautauqua Airlines. 

              

      

      

      
        	b.  	
                Must
                  be a non-probationary Flight Attendant.  

              

      

      

      
        	c.  	
                A
                  consistent record of adherence to Company policies and procedures.
                  

              

      

      

      
        	d.  	
                90%
                  or better on the first attempt on their most recent recurrent test.
                  

              

      

      

      
        	e.  	
                No
                  written warning or disciplinary suspension in the prior twelve
                  (12)
                  months. 

              

      

      

      
        	2.  	
                The
                  Retention of Check Flight Attendants shall require the successful
                  completion of a standardized Check Flight Attendant course, annual
                  recurrent class, and competence check, if applicable, in addition
                  to the
                  requirements in the above paragraph B.1.a-e.

              

      

      

      
        	3.  	
                Flight
                  Attendants who are not selected will have the option to reapply
                  at a later
                  date. 

              

      

      

      
        	C.  	
                Scheduling

              

      

      

      
        	1.  	
                A
                  Check Flight Attendant may bid her schedule based on her seniority.
                  

              

      

      

      
        	2.  	
                A
                  Check Flight Attendant will not be involuntarily rescheduled to
                  work on
                  her days off. 

              

      

      

      
        	3.  	
                When
                  a Check Flight Attendant is scheduled to report to perform any
                  of her
                  Check Flight Attendant duties at a location other than her base,
                  she will
                  be provided space positive travel from her base. Upon reasonable
                  advance
                  request, Crew Scheduling will attempt to arrange positive space
                  travel
                  from another mutually agreed location.

              

      

      

      
        	4.  	
                The
                  Company will equitably distribute assignments among Check Flight
                  Attendants, taking into account availability and training scheduling
                  requirements. 

              

      

      

      
        	D.  	
                Compensation

              

      

      

      
        	1.  	
                A
                  Check Flight Attendant will be compensated at the rate of $10.00
                  per hour
                  in addition to her rate of flight pay when performing Check Flight
                  Attendant duties. 

              

      

      

      
        	2.  	
                A
                  Check Flight Attendant removed from trips to perform flying or
                  non-flying
                  Check Flight Attendant duties will be paid and credited for the
                  greater of
                  the value of the missed trips or at the value of the assignment
                  she
                  performs. 

              

      

      

      
        	3.  	
                When
                  the Company schedules a Check Flight Attendant for non-flying Check
                  Flight
                  Attendant duties prior to the opening of the Bid Period, the Flight
                  Attendant will receive five (5) virtual credit hours as defined
                  in Article
                  6 (Scheduling). 

              

      

      

      
        	4.  	
                A
                  Check Flight Attendant performing non-flying Check Flight Attendant
                  duties
                  on a day off will be compensated at the Check Flight Attendant
                  rate at a
                  minimum of four (4) hours or at a rate of one (1) hour for every
                  two (2)
                  hours of duty, whichever is greater.

              

      

      

      
        	5.  	
                A
                  Check Flight Attendant, who is required to travel away from her
                  base for
                  the purpose of meeting, training, or any other Check Flight Attendant
                  duties, will be provided single occupancy rooms in accordance with
                  Article
                  4 (Expenses). 

              

      

      

      A
        Check
        Flight Attendant will receive expense per diem in accordance with Article
        4
        (Expenses) when performing duties. 

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      ARTICLE
        9

      

      SENIORITY

      

      
        	
                A.

              	
                A
                  Flight Attendant’s seniority shall begin on the Flight Attendant's date of
                  hire. When two (2) or more Flight Attendants have the same date
                  of hire,
                  they shall be placed on the seniority list according to the last
                  four (4)
                  digits of their social security numbers, i.e., the lowest number
                  shall be
                  the most senior. A Flight Attendant's pay shall commence on date
                  of hire.
                  Except as otherwise specified in this Agreement, all Flight Attendants
                  shall be full time employees of the Company.

              

      

      

      
        	
                B.

              	
                A
                  Flight Attendant shall lose her seniority if any of the following
                  occurs:
                  

              

      

      

      1. Voluntary
        resignation;

      

      2. Discharge
        for just cause;

      

      3. Failure
        to report for duty at the expiration of a leave of absence;

       

      4.
Failure
        to report for duty after recall from furlough in accordance with Section
        11.

       

      5.
Transfer
        to management or any position within the company outside the scope of this
        agreement for six (6) months or more or as otherwise provided for in this
        agreement. 

       

      
        	
                C.

              	
                Seniority
                  shall prevail at all times in matters concerning equipment bids,
                  reductions, recall, base bidding, assignments, upgrades, transitions
                  and
                  vacations, or except as otherwise specified in this Agreement.
                  

              

      

      

      
        	
                D.

              	
                A
                  current seniority list will be posted and available on the company’s
                  intranet website concurrent with the posting of initial bid package
                  but no
                  later than the 15th
                  (fifteenth) of each month and made available for posting on the
                  union
                  bulletin boards at each Flight Attendant domicile. Any alleged
                  error or
                  omission affecting a Flight Attendant's seniority on any list must
                  be
                  protested by the affected Flight Attendant, in writing, within
                  thirty (30)
                  days of the posting. A Flight Attendant making no protest within
                  the time
                  specified may not thereafter protest the alleged error or omission
                  on the
                  disputed list or any subsequent list. (Agreed
                  6-5-03)

              

      

      

      
        	
                E.

              	
                A
                  Flight Attendant will be on probation for the Flight Attendant's
                  first
                  nine (9) months of active service with the Company.
                  

              

      

      

      

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        10

      

      TRAINING

      

      
        	A.  	
                General

              

      

      

      
        	1.  	
                The
                  Company will, consistent with applicable FAR and Company procedures,
                  establish training requirements for all required Flight Attendant
                  training. 

              

      

      

      
        	2.  	
                No
                  Flight Attendant shall be required to pay for the use of any Company
                  equipment or equipment outside the Company that is required for
                  training.
                  

              

      

      

      
        	3.  	
                A
                  Flight Attendant removed from duty for retraining or reexamination
                  shall
                  lose no more than three (3) days of pay.

              

      

      

      
        	B.  	
                Recurrent
                  Training Bidding

              

      

      

      
        	1.  	
                The
                  Company will post all recurrent training dates, if any, for bid
                  in the
                  monthly bid package. A Flight Attendant who will be in her prior
                  or due
                  month in the month being bid may bid on available recurrent training
                  dates. 

              

      

      

      
        	(a)  	
                Such
                  bids will be awarded in seniority order, provided
                  that:

              

      

      

      
        	a)  	
                awarding
                  the bid does not result in a conflict with other duty;
                  

              

      

      
        	b)  	
                seniority
                  notwithstanding, a Flight Attendant in her due month will have
                  bidding
                  priority over a Flight Attendant in her prior month;
                  

              

      

      
        	c)  	
                a
                  Flight Attendant in her due month who has not made a successful
                  bid for a
                  recurrent training date, or who is in her grace month, may be assigned
                  a
                  recurrent training date. 

              

      

      
        	d)  	
                Upon
                  implementation of a Preferential Bid System, recurrent and all
                  other
                  training dates will be posted and awards published in the final
                  bid award
                  in the month prior to the training date. (Example: A Flight Attendant
                  who
                  is due for recurrent in October will bid in August for training
                  in
                  October. Concurrent with the September bid award, October training
                  dates
                  will also be awarded.) 

              

      

      

      
        	2.  	
                A
                  Flight Attendant assigned to training will be so notified at least
                  five
                  (5) days prior to commencement of training unless shorter notice
                  is
                  required because of regulatory agency or aircraft manufacturer
                  directive.
                  Such notice may be waived by the Flight Attendant.
                  

              

      

      

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      
        	3.  	
                If
                  the Company finds it necessary to move a Flight Attendant’s recurrent date
                  and/or to assign her to a training date due to operational reasons
                  (e.g.,
                  loss or reduction of training staff, an excess of Flight Attendants
                  who
                  require training, etc.), the Company will make reasonable efforts
                  to
                  accommodate Flight Attendants’ preferences for training dates.
                  

              

      

      

      
        	C.  	
                Traveling
                  to and from domicile.

              

      

      

      
        	1.  	
                Travel
                  to a training event away from a Flight Attendant’s base will be “positive
                  space must ride” or crew movement if available under applicable pass
                  policy over the most direct route possible.

              

      

      

      
        	2.  	
                The
                  Company is solely responsible for arranging travel for any Flight
                  Attendant attending a training event away from her domicile. The
                  Company
                  will consider any personal schedule conflicts brought to its attention
                  by
                  the Flight Attendant regarding the day of travel and will make
                  an effort
                  to work with the Flight Attendant to come up with an accommodating
                  travel
                  itinerary for the scheduled day of travel.

              

      

      

      
        	D.  	
                Scheduling
                  of Training

              

      

      

      
        	1.  	
                Training
                  will not be scheduled for more than six (6) consecutive days followed
                  by
                  twenty-four (24) consecutive hours free of duty.
                  

              

      

      

      
        	2.  	
                A
                  Flight Attendant shall not be required to attend training for more
                  than
                  ten (10) hours a day, no more than eight (8) of which shall be
                  classroom
                  hours. 

              

      

      

      
        	3.  	
                Total
                  in class training hours will be considered duty time and will not
                  be
                  considered a rest period for the purposes of Article 24 (Hours
                  of Service.
                  

              

      

      

      
        	4.  	
                A
                  Flight Attendant in recurrent training will be provided a rest
                  period of
                  at least nine (9) hours between ground school sessions.
                  

              

      

      

      
        	5.  	
                The
                  Company will use its best efforts not to schedule any ground school
                  training between the hours of 0130 and 0700.

              

      

      

      
        	6.  	
                A
                  new hire Flight Attendant on OE Training may request additional
                  training
                  or request a change of Check Flight Attendant.

              

      

      

      
        	7.  	
                Holidays
                  

              

      

      

      
        	(a)  	
                The
                  Company will attempt not to schedule training, other than OE and
                  line
                  checks, on Thanksgiving, Christmas, or New Year’s Day, no later than 1300
                  on Christmas Eve or New Year’s Eve nor to begin prior to 1000 the day
                  after Christmas or New Year’s Day.

              

      

      

      
        	(b)  	
                To
                  accommodate travel to return a Flight Attendant to her domicile
                  from
                  training the company will attempt to have the schedule be completed
                  by
                  1700 on Christmas Eve or New Year’s Eve. Travel to return a Flight
                  Attendant to training from her domicile will not be scheduled to
                  commence
                  prior to 0700 on the day after Christmas or the day after New Year’s
                  Day.

              

      

      

      
        	E.  	
                Union
                  observance.

              

      

      

      The
        Chief
        Steward, her designee, or a member of the Flight Attendant Professional
        Standards Committee, either of whom shall be an employee of the Company,
        may
        observe any ground-based training. Such observation shall be without pay
        and
        shall not interfere with the conduct of the training. 

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        11

      

      REDUCTION
        IN FORCE OR FURLOUGH

      

      
        	A.  	
                Prior
                  to any involuntary reduction in force, the Company will offer time
                  off
                  without pay in accordance with paragraph H. of this
                  Article.

              

      

      

      
        	B.  	
                The
                  Company will provide at least fourteen (14) days written notice
                  of any
                  force surplus requiring a reduction in the number of Flight Attendants
                  in
                  a particular domicile. Such notice will be sent via USPS Certified/Return
                  Receipt Requested, or equivalent, to the address on file and in
                  accordance
                  with paragraph E. 2. below, and/or by hand delivery with a signed
                  receipt.

              

      

      

      
        	C.  	
                A
                  Flight Attendant holding an award in the surplus domicile shall
                  be
                  displaced in inverse order of seniority. All furloughs and displacements
                  shall be from among all Flight Attendants appearing on the most
                  accurate
                  and up-to-date seniority list and without regard to a Flight Attendant’s
                  probationary status. 

              

      

      

      
        	D.  	
                A
                  displaced Flight Attendant may:

              

      

      

      
        	1.  	
                Accept
                  layoff at the point, 

              

      

      
        	2.  	
                Displace
                  the most junior Flight Attendant in the system, or
                  

              

      

      
        	3.  	
                Fill
                  any vacancy in accordance with Article 7 of this Agreement.
                  

              

      

      

      If
        there
        are multiple Flight Attendants displacing junior Flight Attendants at more
        than
        one domicile, the displacing Flight Attendants may elect which of those
        available domiciles to displace into in seniority order. A Flight Attendant
        who
        accepts layoff at the point will thereafter be treated as a furloughed Flight
        Attendant for purposes of recall.

      

      
        	E.  	
                Notification
                  of Furlough.

              

      

      

      
        	1.  	
                When
                  a Flight Attendant is to be furloughed, she will be given fourteen
                  (14)
                  days notice from the Company, or pay in lieu thereof, via USPS
                  Certified/return receipt requested, or equivalent, or by hand delivery
                  with a signed receipt, unless the furlough occurs as a result of
                  conditions beyond the Company's control, such as a curtailment
                  or
                  reduction in operation because of fire, flood, storm or similar
                  acts of
                  God, strikes, Company bankruptcy, catastrophic air accidents that
                  have a
                  direct effect on the Company's business, grounding of a fleet type,
                  or
                  similar occurrences. In such cases, the Company will give as much
                  notice
                  as possible. Copies of all furlough or recall notices will be sent
                  to the
                  Chief Steward and the Union. 

              

      

      

      
        	2.  	
                A
                  furloughed Flight Attendant will file her current address and telephone
                  number with the Company and will advise the Company, in writing,
                  of any
                  changes within seven (7) business days of a
                  change.

              

      

      

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      
        	F.  	
                Furlough

              

      

      

      
        	1.  	
                Flight
                  Attendants will be furloughed in inverse order of
                  seniority.

              

      

      

      
        	2.  	
                A
                  Flight Attendant who is furloughed will retain and continue to
                  accrue
                  seniority, and will accrue longevity for a period of sixty (60)
                  days.

              

      

      

      
        	3.  	
                An
                  eligible furloughed Flight Attendant will be recalled in seniority
                  order
                  prior to the Company hiring additional Flight
                  Attendants.

              

      

      

      
        	4.  	
                Prior
                  to effecting a furlough, Flight Attendants will be encouraged to
                  take
                  earned vacation or a personal leave of absence to prevent furlough.
                  

              

      

      

      
        	5.  	
                Flight
                  Attendants who are granted a personal leave of absence during periods
                  of
                  furlough will continue to accrue
                  seniority.

              

      

      

      
        	6.  	
                Flight
                  Attendants who are involuntarily furloughed shall advise the Company
                  in
                  writing of their election to be paid off for all accrued but untaken
                  vacation at the time of furlough, or may elect to be paid off at
                  a later
                  date during the period of furlough upon written notification to
                  the
                  company, or upon separation of
                  employment.

              

      

      

      
        	7.  	
                No
                  Flight Attendant may be displaced by a more junior Flight
                  Attendant.

              

      

      

      
        	G.  	
                Recall
                  from Furlough

              

      

      

      
        	1.  	
                Recall
                  notices will be sent by the Company via USPS certified/return receipt
                  requested, to the last known address the Company has on file for
                  the
                  Flight Attendant. The Company may notify more Flight Attendants
                  than the
                  number being recalled to identify those who will accept or bypass
                  recall.

              

      

      

      
        	2.  	
                A
                  recalled Flight Attendant must notify the Company of acceptance
                  or bypass
                  within seven (7) days after the receipt of the recall notice or
                  will be
                  considered to have resigned from the company and will forfeit her
                  place on
                  the seniority list. Notice to accept recall or bypass shall be
                  in writing
                  and sent via email, Telecopier or United States Postal Service
                  or
                  equivalent. It shall be the responsibility of the Flight Attendant
                  to
                  verify receipt by the Company. The Flight Attendant may revoke
                  notice of
                  bypass using the same method, to be affective prospectively upon
                  receipt
                  by the Company. 

              

      

      

      
        	3.  	
                A
                  Flight Attendant may bypass recall until all of the furloughed
                  Flight
                  Attendants junior to her have been recalled. If an insufficient
                  number of
                  Flight Attendants accept recall, the Company shall notify furloughed
                  Flight Attendants in reverse seniority order that recall is mandatory.
                  Such Flight Attendants must report to active service within seven
                  (7) days
                  of receipt of the mandatory notice. The Company may, at its discretion,
                  extend this period.

              

      

      

      
        	4.  	
                A
                  furloughed Flight Attendant will be allowed fourteen (14) days
                  after
                  receipt of a notice of a recall to report for duty at the point
                  specified
                  by the Company. The Company may, at its discretion, extend this
                  period.

              

      

      

      
        	5.  	
                A
                  Flight Attendant who returns from furlough mid-month shall have
                  her days
                  off and pay guarantee computed on a pro-rata
                  basis.

              

      

      

      
        	6.  	
                A
                  Flight Attendant who is furloughed will retain Company Pass Benefits
                  for
                  ninety (90) days following the effective date of
                  furlough.

              

      

       

      
        	H.  	
                Time
                  Off Without Pay

              

      

      

      When
        the
        Company intends to furlough one or more Flight Attendant(s) involuntarily,
        it
        will offer voluntary time off without pay to a like number of Flight Attendants
        in seniority order within the domicile(s) where the Company is overstaffed.
        Such
        Flight Attendants may request time off without pay in writing for a specified
        duration. The Company will grant such requests, in writing, specifying the
        authorized duration of the leave which may be less, but not more, than the
        duration requested by the Flight Attendant. A Flight Attendant who accepts
        voluntary time off without pay will continue to accrue seniority but will
        not
        accrue longevity or benefits. Such Flight Attendant may continue her medical
        insurance in accordance with COBRA. The Company may, but is not required
        to,
        allow the Flight Attendant to return early from the leave, but the Flight
        Attendant will not be required to return to work before the leave has expired.
        A
        Flight Attendant may request an extension of the leave in writing which may
        be
        granted by the Company in writing. Immediately after the expiration of a
        leave
        of absence granted under this paragraph, a Flight Attendant will return to
        the
        domicile where she was assigned immediately prior to the leave. If the domicile
        no longer exists or
        the
        Flight Attendant is no longer senior enough to hold said domicile the Flight
        Attendant will be considered displaced and moving expenses will be allowed
        in
        accordance with Article 5 of this Agreement. Additionally, the Flight Attendant
        may elect to displace the least senior Flight Attendant in the system or
        fill
        any vacancy in accordance with Article 7 of this Agreement. Flight Attendants
        electing to take Time Off Without Pay in accordance to this paragraph will
        retain Company Pass Benefits for ninety (90) days or the period of their
        leave,
        whichever is shorter.

      

      

      

      

      

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

      

      

      

      ARTICLE
        12

      

      LEAVES
        OF ABSENCE

       

      
        	A.  	
                Personal
                  Leave 

              

      

       

      
        	1.  	
                General

              

      

      

      
        	a.  	
                A
                  Flight Attendant may request a personal leave of absence by completing
                  a
                  Request for Leave of Absence form and submitting it to the Director
                  of
                  Human Resources no later than thirty (30) days before the bid closing
                  for
                  the month in which the leave is requested to begin. A Flight Attendant
                  must have been continuously employed for one (1) year before a
                  request
                  will be considered.

              

      

      

      
        	b.  	
                The
                  grant or denial of a request for a personal leave of absence shall
                  be at
                  the sole discretion of the Company, for a period not to exceed
                  ninety (90)
                  days or such other period as may be extended by mutual agreement
                  between
                  the Company and the Flight
                  Attendant.

              

      

      

      
        	c.  	
                While
                  on leave of absence the Flight Attendant may elect to continue
                  health and
                  life insurance benefits, provided the Flight Attendant pays the
                  full
                  monthly premiums to the Company in accordance with
                  COBRA.

              

      

      

      
        	2.  	
                Seniority

              

      

      

      A
        Flight
        Attendant will retain and continue to accrue seniority while on personal
        leave.

       

      
        	3.  	
                Longevity

              

      

      

      A
        Flight
        Attendant will accrue longevity for the first thirty (30) days of personal
        leave, but not thereafter.

       

      
        	B.  	
                Medical
                  Leave

              

      

       

      
        	1.  	
                General

              

      

      

      
        	a.  	
                Medical
                  leaves of absence will be allowed for disability due to sickness,
                  injury,
                  or pregnancy upon receipt of written verification of the disability
                  from a
                  qualified medical doctor. Medical leave will be requested by submitting
                  a
                  Request for Leave of Absence to the Director of Human Resources
                  as soon as
                  possible after the reason for the leave is known. Medical leave
                  will not
                  exceed five (5) years. A Flight Attendant on a medical leave must
                  submit a
                  letter from his doctor stating whether or not she is able to perform
                  his
                  Flight Attendant duties each year within sixty (60) days of the
                  anniversary date of the leave. 

              

      

      

      
        	b.  	
                Flight
                  Attendants on medical leave may elect to draw full pay until accrued
                  paid
                  sick leave and/or vacation are exhausted.

              

      

      

      
        	c.  	
                The
                  Company shall continue to provide health and life insurance benefits
                  for a
                  period of up to ninety (90) days after the Flight Attendant has
                  exhausted
                  her paid sick leave. The Flight Attendant may elect to continue
                  health and
                  life insurance benefits, provided the Flight Attendant pays the
                  full
                  monthly premiums to the Company in accordance with COBRA.
                  

              

      

      

      
        	d.  	
                The
                  Company may offer a non-flying position to any Flight Attendant
                  who can no
                  longer perform his job due to loss of medical.

              

      

      

      
        	2.  	
                Seniority

              

      

      

      A
        Flight
        Attendant on medical leave will retain and continue to accrue seniority.
        

      

      
        	3.  	
                Longevity

              

      

      

      A
        Flight
        Attendant will accrue longevity during the first ninety (90) days of medical
        leave, but not thereafter. 

      

      
        	C.  	
                Maternity
                  Leave

              

      

      

      Leave
        of
        absence due to pregnancy will be governed by applicable law and the provisions
        of B. above. 

       

      
        	D.  	
                Military
                  Leave 

              

      

       

      
        	1.  	
                General

              

      

      

      A
        Flight
        Attendant will be granted military leave for military service or reserve
        duty in
        accordance with applicable federal law. Military leave must be requested
        by
        submitting a Request for Leave of Absence form to the Director of Human
        Resources as soon as practicable after the Flight Attendant becomes aware
        of the
        military duty for which the leave is requested.

       

      

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      
        	2.  	
                Eligibility

              

      

      

      Return
        from military leave of absence shall be in accordance with applicable
        law.

       

      
        	3.  	
                Seniority
                  and Longevity

              

      

      

      A
        Flight
        Attendant’s seniority and longevity will continue to accrue during military
        leave.

       

      
        	4.  	
                Vacation

              

      

      

      Flight
        Attendants taking military leaves greater than ninety (90) days, may elect
        to
        take unused earned vacation, operational requirements permitting, or
        alternatively may elect to be paid for such vacation.

       

      
        	E.  	
                Family
                  Leave of Absence

              

      

       

      The
        Company will grant leaves in accordance with the Family and Medical Leave
        Act of
        1993. All Flight Attendants covered by this Agreement will be eligible for
        FMLA
        provided they have at least 1250 duty hours or 720 pay hours in the prior
        12
        months. Bases with less than fifty (50) employees will also be covered by
        the
        Act. While on Family Leave the Flight Attendant will continue to accrue
        seniority/longevity and all benefits, without interruption and at no added
        cost.
        Flight Attendants on Family Leave will have the option to draw full pay until
        sick leave accumulation and vacation accumulation are exhausted. Upon return
        from Family Leave said Flight Attendant will have the option to return to
        the
        position and domicile held prior to said leave, or any vacancy in accordance
        with her seniority. 

       

      
        	F.  	
                Bereavement/Emergency
                  Leave of Absence 

              

      

       

      
        	1.  	
                In
                  the event of a death in a Flight Attendant’s immediate family, the Flight
                  Attendant shall immediately notify the Director of Inflight or
                  her
                  designee and be granted up to five (5) consecutive days with pay.
                  Immediate family shall be defined as a Flight Attendant’s mother, father,
                  spouse, child or step-child. Three (3) consecutive days will be
                  granted in
                  the event of death of a Flight Attendant’s brother, sister, mother-in-law,
                  father-in-law or grandparent. Upon request, bereavement leave may
                  be
                  extended for a mutually agreed period, either without pay or with
                  pay
                  charged against a Flight Attendant’s
                  vacation.

              

      

       

      
        	2.  	
                In
                  those cases when a Flight Attendant needs time off for emergency
                  situations not otherwise provided for in this Article, she shall,
                  to the
                  extent feasible, use her seniority to bid a schedule which has
                  those days
                  off. When this is not possible because the need for the absence
                  is not
                  known when monthly schedules are being bid or finalized, the Flight
                  Attendant will, subject to the needs of the service, be granted
                  emergency
                  leave without pay, unless the Flight Attendant wishes to use accrued
                  and
                  unused vacation time to receive pay for the absence. Requests for
                  emergency leaves will be submitted to the Director of Human
                  Resources.

              

      

       

      
        	G.  	
                Union
                  Leaves 

              

      

       

      
        	1.  	
                Indefinite
                  Union Leave

              

      

      

      At
        the
        request of the Union, with advance notice given prior to bidding for the
        month
        in which the leave is requested to commence, a Flight Attendant shall be
        granted
        an indefinite Union leave of absence without pay to accept employment with
        the
        Union. While on such leave, the Flight Attendant shall continue to accrue
        seniority and longevity, and be covered by Company insurance, which will
        be
        reimbursed to the Company by the Union. The Flight Attendant will maintain
        all
        other benefits covered by this Agreement and may continue to participate
        in the
        401(k) plan. No more than one Flight Attendant shall be permitted a Union
        leave
        at one time, except with Company approval. A Flight Attendant on Union leave
        will be allowed to fly when necessary to remain current as a Chautauqua Flight
        Attendant.

       

      
        	2.  	
                Short
                  Term Leave

              

      

       

      At
        the
        request of the Union, the Company will, subject to the needs of the service,
        release Flight Attendants for the purpose of conducting union business. Requests
        for release must be submitted in writing to the Manager of Inflight at least
        seven (7) days before the requested day(s) off. The Company may waive the
        seven
        (7) day requirement. Trips dropped to accommodate such leaves will be placed
        in
        open time unless the Company elects to assign such trips to
        reserves.

      

      
        	3.  	
                Reimbursement
                  for Flight Pay Loss

              

      

      

      
        	a.  	
                Scheduled
                  Line Flight Attendants: The Union will reimburse the Company at
                  the full
                  hourly rate applicable to that Flight Attendant, plus 23% to cover
                  the
                  cost of benefits, FICA, etc., for each day he or she is on leave
                  only for
                  the scheduled time dropped.

              

      

      

      
        	b.  	
                Reserve
                  Flight Attendants: The Union will reimburse the Company at the
                  full hourly
                  rate applicable to that Flight Attendant, plus 23% to cover the
                  cost of
                  benefits, FICA, etc., using the formula of four (4) hours for each
                  reserve
                  day dropped.

              

      

      

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

      
        	4.  	
                The
                  Union agrees to reimburse the Company within thirty (30) days after
                  receipt of the Company’s bills. Such billings shall be submitted to the
                  Union no later than forty-five (45) days following the month in
                  which the
                  flight pay loss was incurred.

              

      

      

      
        	5.  	
                A
                  Flight Attendant will continue to accrue all seniority and longevity
                  credit while on Union leave.

              

      

       

      
        	H.  	
                Return
                  from Leaves of Absence

              

      

       

      
        	1.  	
                Return
                  from FMLA covered leaves or from military leaves of absences will
                  be
                  governed by applicable law. 

              

      

      

      
        	2.  	
                Flight
                  Attendants returning from other leaves of absences of ninety (90)
                  days or
                  less will be returned to the position they held at the commencement
                  of the
                  leave. 

              

      

      

      
        	3.  	
                Flight
                  Attendants returning from other leaves of absence of more than
                  ninety (90)
                  days will be returned to any position to which their seniority
                  would
                  entitle them. 

              

      

      

      
        	4.  	
                A
                  Flight Attendant who, at the conclusion of a leave of absence,
                  is not
                  current and qualified to hold the position to which he is returning
                  shall
                  be placed in the first available training class for that position.
                  

              

      

      

      
        	I.  	
                Jury
                  Duty Leave

              

      

       

      
        	1.  	
                A
                  Flight Attendant shall provide the Manager of Inflight with a copy
                  of the
                  summons or notice of jury duty immediately upon receipt of such
                  documents.
                  A Flight Attendant shall concurrently provide the Company with
                  authorization to intercede with the appropriate authorities for
                  the
                  purpose of removing her from jury duty.

              

      

      

      
        	2.  	
                A
                  Flight Attendant who is required to serve on jury duty shall be
                  granted a
                  leave of absence for that purpose. 

              

      

       

      
        	3.  	
                A
                  Flight Attendant who is called for jury duty shall be paid four
                  (4.0)
                  hours at her applicable hourly rate for each scheduled duty or
                  reserve day
                  lost to jury duty. The Application of this provision shall not
                  cause the
                  Flight Attendant to receive less than her minimum monthly guarantee
                  for
                  the month in which scheduled duty or reserve days are lost to jury
                  duty.
                  Such jury duty leave pay shall be offset by any amount the Flight
                  Attendant receives from the court. 

              

      

       

      
        	4.  	
                Immediately
                  upon release from jury duty, a Flight Attendant shall notify the
                  Company
                  of her availability for flying status.

              

      

      

      
        	5.  	
                A
                  Flight Attendant on jury duty leave shall continue to accrue seniority,
                  longevity and all benefits as if she had been in active service.
                  

              

      

       

      
        	J.  	
                Pass
                  Privileges

              

      

       

      

      While
        on
        a leave of absence, a Flight Attendant’s pass privileges will be governed by
        published Company policy. 

       

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        13

      

      PHYSICAL
        STANDARDS

      

      The
        physical standards required of a Flight Attendant shall be no less than the
        standards established by the FAA. A Flight Attendant shall maintain the ability
        to perform all required duties. 

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        14

      

      INSURANCE
        AND OTHER BENEFITS

      

      

      
        	A.  	
                The
                  Company shall provide each Flight Attendant with a life insurance
                  policy
                  after ninety (90) days of service. The Company shall pay one hundred
                  percent (100%) of the premium for this coverage.
                  

              

      

      

      
        	1.  	
                Flight
                  Attendant Life Insurance:

              

      

      

      Two
        (2)
        times the basic annual earnings, rounded to the next higher $1,000. to a
        maximum
        of $250,000.

      

      
        	2.  	
                Accidental
                  Death and Dismemberment:

              

      

      

      Four
        (4)
        times the basic annual earnings, rounded to the next higher $1,000. to a
        maximum
        of $500,000.

      

      
        	3.  	
                Dependent
                  Life Benefits:

              

      

      

      
        	
                Spouse:

              	 	
                $5000

              
	
                Children:

              	
                0-8
                  days

              	
                $0

              
	 	
                8-days-6mo

              	
                $100

              
	 	
                6mo-19yrs

              	
                $2500

              

      

      

      
        	B.  	
                The
                  Company will provide health insurance for the Flight Attendants
                  and
                  qualifying dependents, the benefits of which shall not be less
                  advantageous than the existing program coverage and benefits. For
                  Flight
                  Attendants with under one (1) year of service, the Company shall
                  pay one
                  hundred percent (100%) of the premium cost, minus thirty dollars
                  ($30.00)
                  per pay period, for said Flight Attendant; however, dependent coverage
                  premiums may be paid by said Flight Attendants through payroll
                  deduction.
                  For Flight Attendants with over one (1) year of service, the Company
                  shall
                  pay one hundred percent (100%) of the premium cost, minus thirty
                  dollars
                  $30.00) for individual Flight Attendant coverage, fifty dollars
                  ($50.00)
                  for Flight Attendant and spouse coverage or seventy dollars ($70.00)
                  for
                  Flight Attendant and family coverage, per pay period. Should the
                  cost of
                  such insurance increase, the Company may require greater contributions
                  from Flight Attendants. In no event will the employee contributions
                  increase more than $20 per pay period in each plan year for single
                  coverage, $25 for employee and spouse, and $30 for family coverage
                  

              

      

      

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      
        	C.  	
                The
                  Company will provide preventative care as prescribed
                  below:

              

      

      

      
        	1.  	
                Children
                  wellness care 

              

      

      

      
        	2.  	
                Annual
                  PAP and mammogram exams for women 

              

      

      

      
        	3.  	
                Annual
                  PSA exams for men 

              

      

      

      
        	D.  	
                The
                  Company will provide the Chief Steward and the Union with copies
                  of Master
                  Insurance Contracts for each policy required under the terms of
                  this
                  Agreement. 

              

      

      

      
        	E.  	
                The
                  Company will provide a 125 Flexible Benefits Plan to all Flight
                  Attendants, the benefits of which shall not be less advantageous
                  than the
                  existing program. 

              

      

      

      
        	F.  	
                The
                  Company will provide retirement benefits (i.e., 401(k)) to all
                  Flight
                  Attendants. For a
                  Flight Attendant whose longevity is six (6) years or less, the
                  Company
                  will match one hundred percent (100%) of the first two and one-half
                  percent (2.5%) contributed by the Flight Attendant. For a Flight
                  Attendant
                  whose longevity is more than six (6) years and less than thirteen
                  (13)
                  years, the company will match one hundred percent (100%) of the
                  first four
                  percent (4%) contributed by the Flight Attendant. For a Flight
                  Attendant
                  whose longevity is thirteen (13) years or longer, the Company will
                  match
                  one hundred percent (100%) of the first six percent (6%) contributed
                  by
                  the Flight Attendant. 

              

      

      

      
        	G.  	
                The
                  Company will provide a vision plan for the Flight Attendants. For
                  Flight
                  Attendant and qualified dependants, the plan will cover one yearly
                  exam
                  plus up to one hundred twenty dollars ($120) annual allowance for
                  lenses,
                  contacts or frames. The plan for Flight Attendants and qualified
                  dependents will be no less advantageous than the program offered
                  to other
                  employee groups. 

              

      

      

      
        	H.  	
                The
                  Company shall pay for dental plan coverage for single Flight Attendants
                  or
                  sixteen and one-half dollars ($16.50) per month towards the cost
                  of family
                  coverage. The plan for Flight Attendants and qualified dependents
                  will be
                  no less advantageous than the program offered to other employee
                  groups.
                  

              

      

      

      
        	I.  	
                The
                  Company will include the Flight Attendants in any profit sharing
                  plan,
                  bonus and incentive programs offered to all other non-management
                  employees. 

              

      

      

      

      
        	J.  	
                Stock
                  Purchase

              

      

      

      Should
        the Company complete an IPO, the Company shall make a good faith effort to
        develop an employee stock purchase program. In any such program, the Flight
        Attendants will be able to participate at the same level as management and
        other
        eligible Company employees. 

      

      

      

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        15

      

      TRANSFER
        TO POSITIONS NOT COVERED BY THIS AGREEMENT

      

      A
        Flight
        Attendant who accepts a managerial position or transfers to any other position
        within the company outside the scope of this agreement shall retain but not
        accrue seniority for six (6) months. At the expiration of six (6) months
        the
        Flight Attendant’s name shall be removed from the Flight Attendant seniority
        list. 

      

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        16

      

      MISCELLANEOUS
        FLYING

      

      

      
        	
                A.

              	
                Flight
                  Attendants may not fly commercially outside the
                  Company.

              

      

      

      
        	
                B.

              	
                The
                  Company will not transfer any Company aircraft to, or schedule
                  any Flight
                  Attendant to fly any trips for, airlines that are on strike unless
                  mutually agreed to by the Company and the
                  Union.

              

      

      

      
        	
                C.

              	
                The
                  Company will not transfer aircraft to a subsidiary or alter-ego
                  for the
                  purpose of avoiding the terms of this
                  Agreement

              

      

      

      

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        17

      

      NOTICES
        TO FLIGHT ATTENDANTS

      

      All
        notices to Flight Attendants involving domicile assignment, promotion, demotion,
        furlough, leaves of absence, bulletins, and memo’s, etc., to Flight Attendants
        shall be stated in writing. Such items that are intended for all Flight
        Attendants will be available over the company’s intranet website. Access to the
        company’s intranet website, or other communications medium by which all Flight
        Attendants have access to the above information, shall be provided to the
        Union’s Business Representative and his designee. Such access to information
        will be the same as that provided to all Flight Attendants covered by this
        Agreement. 

      

      

      

      

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

          
             

          

        

      

      

      ARTICLE
        18

       

      RESOLUTION
        OF DISPUTES

       

      
        	
                A.
                  

              	
                Settlement
                  of Disputes 

              

      

       

      A
        Flight
        Attendant, or the Union on behalf of the Flight Attendants, covered by this
        Agreement who have a grievance concerning any action of the Company affecting
        them, or who believe they have been unjustly disciplined or discharged, which
        dispute has not been settled or resolved in conference with Company officials,
        shall use the dispute resolution procedures as established herein. 

       

      
        	
                B.
                  

              	
                Investigative
                  Meeting - Discipline and Discharge 

              

      

       

      
        	 	
                1.
                  

              	
                A
                  Flight Attendant shall not be disciplined or discharged without
                  just cause
                  and without previously being afforded a meeting before the Director
                  of
                  Inflight or her designee, provided that the Flight Attendant has
                  made
                  herself available for the meeting. 

              

      

       

      
        	 	
                a.
                  The
                  Flight Attendant shall be notified of the time and place of the
                  meeting
                  and the nature of the matter to be discussed. The notice must specifically
                  reference that discipline may be assessed and that the Flight Attendant
                  is
                  entitled a Union Representative at the meeting as provided in paragraph
                  b.
                  below. Concurrently, the Union shall be
                  notified.

              

      

      
        	 	
                 

              

      

      
        	 	
                b.
                  The
                  Flight Attendant shall have the right to be accompanied to the
                  meeting by
                  an authorized employee of the Union, or the Flight Attendant employee
                  of
                  her choice, provided such choice is reasonably available. In no
                  case will
                  the meeting be held without Union representation if such representation
                  is
                  requested and is available within a reasonable period of time.
                  

              

      

      

      
        	 	
                2.
                  

              	
                When
                  a Flight Attendant is disciplined or discharged, the Company shall
                  furnish
                  her with a written statement of the precise charge(s) against her,
                  with a
                  copy to the Union. 

              

      

      

      
        	 	
                3.
                  

              	
                Nothing
                  herein shall prevent the Company from holding a Flight Attendant
                  out of
                  service with pay until a meeting has been held and a decision arrived
                  at
                  in writing by the Company. 

              

      

      

      
        	
                C.
                  

              	
                The
                  Grievance Process 

              

      

       

      
        	 	
                1.
                  

              	
                Discipline
                  and Discharge 

              

      

       

      
        	 	
                a.
                  

              	
                A
                  grievance challenging an action of discipline or discharge shall
                  be in
                  writing, signed by the affected Flight Attendant or the Union
                  representative, and must be submitted to the Director of Inflight
                  within
                  fifteen (15) calendar days after the Flight Attendant is notified
                  of the
                  Company's decision under section B.2., above.

              

      

       

      
        	 	
                b.
                  

              	
                An
                  investigation and hearing will be held by the Director of Inflight
                  or her
                  Inflight or Flight department
                  designee, where practicable, within twenty-one (21) calendar days
                  after
                  receipt of the Flight Attendant’s written appeal. Such hearing shall not
                  be conducted by the same person who initiated the disciplinary
                  action, nor
                  by anyone subordinate to that person.

              

      

       

      
        	 	
                c.
                  

              	
                Within
                  fifteen (15) calendar days after the close of such investigation
                  and
                  hearing, a written decision will be issued and sent by certified
                  mail or
                  other means of verified delivery to the grievant. A copy will also
                  be
                  provided to the Union.

              

      

       

      
        	 	
                d.
                  

              	
                Further
                  appeal of the matter may be filed by the Union to Chautauqua Airlines
                  Flight Attendants’ System Board of Adjustment by submission to the Board
                  within thirty (30) calendar days after the Union's receipt of the
                  Company's decision. 

              

      

      

      
        	
                2.
                  

              	
                Non-Disciplinary
                  Grievances 

              

      

       

      
        	 	
                a.
                  

              	
                A
                  Flight Attendant, or the Union on behalf of a Flight Attendant
                  or group of
                  Flight Attendants, may file a grievance concerning any action of
                  the
                  Company affecting her or them. Prior to filing such a grievance,
                  the
                  Flight Attendant should discuss the matter with her supervisor,
                  and the
                  Union should discuss the matter with the Director of Inflight in
                  an effort
                  to resolve the matter.

              

      

       

      
        	 	
                b.
                  

              	
                Grievances
                  concerning matters other than discipline or discharge shall be
                  in writing,
                  signed by the affected Flight Attendant or Union official and shall
                  state
                  in reasonable detail the facts upon which the claim is based, identifying
                  the specific provisions of the Agreement claimed to have been violated,
                  and state the relief sought. The grievance must be submitted to
                  the
                  Director of Inflight within thirty (30) calendar days from the
                  time the
                  Flight Attendant knew, or reasonably should have known, of the
                  event(s)
                  giving rise to the grievance, whichever is
                  earlier.

              

      

       

      
        	 	
                c.
                  

              	
                An
                  investigation and hearing shall be held by the Director of Inflight,
                  or
                  her Inflight or Flight department designee, where practicable,
                  within
                  fifteen (15) calendar days after receipt of the Flight Attendant’s written
                  grievance. Such hearing shall not be conducted by the same person
                  who
                  initiated the disciplinary action, nor by anyone subordinate to
                  that
                  person.
                  Within
                  fifteen (15) calendar days after the close of such investigation
                  and
                  hearing, the Company shall announce a decision, in writing, by
                  certified
                  mail or other means of verified delivery to the grievant. A copy
                  will also
                  be provided to the Union. 

              

      

      

      
        	 	
                d.
                  

              	
                If
                  the decision by the Company is adverse to the Flight Attendant
                  or Union,
                  the Union may appeal the decision to Chautauqua Airlines Flight
                  Attendants’ System Board of Adjustment by proper submission to the Board
                  within thirty (30) days after the Union's receipt of the decision.
                  

              

      

      

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

      
        	
                D.
                  

              	
                Grievance
                  Mediation 

              

      

       

      Unless
        the parties agree to by-pass mediation, each case submitted to the System
        Board
        shall be submitted to mediation pursuant to the procedures outlined below.
        

       

      
        	 	
                1.
                  

              	
                Mediation
                  proceedings conducted pursuant to this paragraph D. will be held
                  in the
                  city where the general offices of the Company are located or at
                  any other
                  location that the parties mutually agree on.

              

      

      

      
        	 	
                2.
                  

              	
                Mediators
                  either will be provided by the National Mediation Board pursuant
                  to a
                  process agreed upon by the parties or by any other method mutually
                  agreed
                  upon by the parties. All mediator fees and expenses, including
                  the cost of
                  any conference facilities or materials, will be shared equally
                  between the
                  parties. Each party will bear the cost and expenses of its participants
                  in
                  the mediation. 

              

      

      

      
        	 	
                3.
                  

              	
                Cases
                  will be scheduled for mediation conference by mutual agreement
                  of the
                  parties and will be heard in the order in which they were filed
                  unless the
                  parties agree to a different order.

              

      

      

      
        	 	
                4.
                  

              	
                The
                  issue mediated will be the same as the issue the parties have failed
                  to
                  resolve through the grievance process. The presentation of evidence
                  is not
                  limited to that presented at any previous step of the grievance
                  procedure.
                  The rules of evidence will not apply, and no transcript of the
                  mediation
                  conference will be made. 

              

      

      

      
        	 	
                5.
                  

              	
                If
                  an individual grievant(s) does not attend, the Union will have
                  full
                  authority to reach agreement and to act on behalf of the grievant(s)
                  to
                  resolve the grievance. Non-participating observers will not be
                  admitted
                  except by mutual agreement of the parties.

              

      

      

      
        	 	
                6.
                  

              	
                Each
                  party’s representatives at the mediation conference will be familiar
                  with
                  and prepared to discuss the grievance(s) scheduled for that mediation
                  conference. 

              

      

      

      
        	 	
                7.
                  

              	
                The
                  mediation process will be informal. The mediator has authority
                  to meet
                  both jointly and separately with the parties; however, the mediator
                  has no
                  authority to compel resolution of the grievance.
                  

              

      

      

      
        	 	
                8.
                  

              	
                Upon
                  reaching a settlement, the parties will immediately reduce it to
                  writing,
                  and it will be signed by the Company, the Union and the grievant,
                  if
                  present. 

              

      

      

      
        	 	
                9.
                  

              	
                The
                  record of the mediation will be closed and inadmissible in any
                  subsequent
                  proceeding unless a written settlement is reached, in which case
                  the
                  record will be admissible solely to interpret or apply the settlement,
                  if
                  necessary. 

              

      

      

      
        	 	
                10.
                  

              	
                Either
                  party may request the Mediator give it an oral advisory opinion.
                  

              

      

      

      
        	 	
                11.
                  

              	
                Written
                  material presented to the Mediator or to the other party shall
                  be returned
                  to the party presenting that material at the termination of the
                  Mediation
                  Conference. 

              

      

      

      
        	 	
                12.
                  

              	
                If
                  a grievance that had been the subject of a mediation conference
                  is
                  subsequently heard before the System Board of Adjustment, the mediator
                  may
                  not serve as the Neutral Board Member of the System Board, nor
                  may he be
                  called as a witness by either party in the Board’s proceedings. During the
                  System Board proceedings on such grievance, no reference will be
                  made to
                  the fact that the grievance was the subject of a Mediation Conference;
                  nor
                  will there be any reference to statements made, documents provided,
                  or
                  actions taken by either the Mediator or participants during the
                  course of
                  a mediation conference, unless the party offering such statements,
                  documents or actions would have had access or entitlement to them
                  outside
                  of the mediation conference. 

              

      

      

      
        	 	
                13.
                  

              	
                By
                  agreeing to schedule a mediation conference, the parties are not
                  waiving
                  any procedural argument(s) that they have regarding the case. Both
                  the
                  Company and the Union reserve the right to raise jurisdictional
                  or
                  procedural issues notwithstanding their agreement to schedule such
                  conference. 

              

      

      

      
        	 	
                14.
                  

              	
                The
                  jurisdiction of the Mediator will not extend to proposed changes
                  in hours
                  of employment, rates of compensation or working conditions.
                  

              

      

      

      
        	 	
                15.
                  

              	
                Nothing
                  herein will preclude the parties from agreeing to other or different
                  methods of dispute resolution. 

              

      

      

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

      E.
         Resolution
        of Disputes -General 

       

      
        	 	
                1.
                  

              	
                Consistent
                  with other provisions of this article, a Flight Attendant shall
                  be
                  entitled to have a Union representative present at any step of
                  the
                  grievance procedure and at any other such time a Flight Attendant
                  is
                  requested to meet with a member of management where there
                  exists
                  the potential that such meeting may result in disciplinary action
                  being
                  taken against the Flight Attendant. Teleconferencing may be used
                  in lieu
                  of in-person investigations and hearings upon mutual agreement
                  of the
                  parties.

              

      

      

      
        	 	
                2.
                  

              	
                Any
                  time
                  limits prescribed in this Article may be waived by mutual consent
                  of the
                  Company, on the one hand, and the grievant or the Union on the
                  other. If
                  any hearing or decision required of the Company under the provisions
                  of
                  this article is not provided within the time limits prescribed
                  herein, or
                  any extension mutually agreed upon, the Flight Attendant may consider
                  the
                  grievance denied and it shall automatically be appealed to the
                  next step
                  in the grievance procedure as specified in this Article.
                  

              

      

      

      
        	 	
                3.
                  

              	
                Nothing
                  in this agreement shall be construed to extend the right to arbitrate
                  a
                  grievance concerning her discipline or discharge to a probationary
                  Flight
                  Attendant, or to require that such discipline or discharge be based
                  on
                  just cause. The Company will not arbitrarily or capriciously discipline
                  or
                  discharge a probationary Flight Attendant. Probationary Flight
                  Attendants
                  shall have the right to submit grievances concerning non-disciplinary
                  issues. 

              

      

      

      
        	 	
                4.
                  

              	
                If,
                  as a result of any hearing or appeal therefrom as provided herein,
                  the
                  grievant is exonerated, she shall if she has been withheld from
                  service,
                  be reinstated without loss of seniority and shall be paid for such
                  time
                  lost in an amount which would have ordinarily
                  been earned had such Flight Attendant been continued in service
                  during
                  such period. The personnel records shall also be cleared of any
                  and all
                  charges related to that matter. The Board shall have the authority
                  to
                  order a party to comply with any provision(s) of the Agreement
                  as
                  necessary to remedy or correct violations or to require specific
                  performance of a provision of the Agreement.

              

      

      

      
        	 	
                5.
                  

              	
                The
                  periods of time for hearings, decisions, and appeals established
                  in this
                  section shall be considered as maximum periods and when hearings,
                  decisions and appeals can be handled in a period of less than the
                  maximum
                  time stipulated, every effort will be made so as to expedite such
                  cases.
                  

              

      

      

      
        	 	
                6.
                  

              	
                Copies
                  of all notices and decisions shall be mailed to the grievant, and
                  the
                  Union. For the purposes of this section, "notice" may be certified
                  mail,
                  return
                  receipt requested, express delivery, or by hand delivery and, upon
                  request, may also be faxed. 

              

      

      

      
        	 	
                7.
                  

              	
                The
                  Union, or its representative, and the grievant shall have access
                  to the
                  grievant’s personnel file for review related to any complaint,
                  investigation or grievance related to any actual or potential disciplinary
                  action by the Company.

              

      

        

      F. 
        The procedures set out in this Article shall be followed only in cases
        pertaining to and covering alleged grievances, disputes, claims and causes
        of
        action arising or accruing and filed subsequent to the effective date of
        this
        Agreement.

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        19

      

      SYSTEM
        BOARD OF ADJUSTMENT

      

      
        	
                          A.

              	
                Establishment

              

      

      

      In
        compliance with Section 204, Title II of the Railway Labor Act, as amended,
        there is hereby established a System Board of Adjustment for the purpose
        of
        adjusting and deciding disputes which may arise under the terms of the Agreement
        and which are properly submitted to it, which Board shall be known as the
        “Chautauqua Airlines Flight Attendants' System Board of Adjustment", hereinafter
        referred to as the "Board."

      

               
        B. Composition
        of the Board

      

      
        	1.  	
                The
                  Board shall be comprised of three (3) members, one (1) selected
                  by the
                  Union, one (1) selected by the Company, and one (1) neutral
                  member.

              

      

      

      
        	2.  	
                Within
                  fifteen (15) days of Company receipt of a Board Submission, the
                  parties
                  shall select a neutral member, by the alternate strike method,
                  from the
                  panel listed below.

              

      

      

      Richard
        Bloch

      Susan
        Brown

      Robert
        Douglas

      Herbert
        Fishgold

      Roger
        Kaplan

      William
        Schecter

      Carol
        Wittenberg

      

      
        	3.  	
                The
                  System Board hearing shall convene within sixty (60) calendar days
                  following the selection of the arbitrator if the arbitrator proffers
                  available dates within the time period prescribed. If the arbitrator
                  is
                  not available within sixty (60) calendar days, the hearing shall
                  convene
                  as soon as possible thereafter. In the event that the arbitrator
                  is not
                  available within six (6) months of selection, the parties will
                  select
                  another arbitrator from the panel. If no arbitrator from the panel
                  is
                  available within six (6) months either party may request the National
                  Mediation Board (NMB) to provide the parties with a list of arbitrators
                  who are members of the National Academy of Arbitrators with aviation
                  arbitration experience.

              

      

      

      
        	C.  	
                Jurisdiction

              

      

      

      
        	 	
                       
                  1. 

              	
                The
                  Board shall have jurisdiction over disputes between any employee
                  covered
                  by this Agreement and the Company growing out of grievances or
                  out of
                  interpretation of any of the terms of this Agreement. The Board
                  shall
                  consider any dispute properly submitted to it by the Union when
                  such
                  dispute has not been previously settled in accordance with the
                  terms
                  provided for in this Agreement. The jurisdiction of the Board shall
                  not
                  extend to changes in hours of employment, rates of compensation
                  or working
                  conditions covered by existing agreements between the parties
                  herein.

              

      

      

      
        	 	
                       
                  2.

              	
                The
                  Board shall consider any dispute properly submitted to it when
                  such
                  dispute has not been previously settled in accordance with Article
                  18.

              

      

      

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

      
        	D.  	
                Submission
                  of Dispute

              

      

      

      All
        submission of disputes properly referred to the Board for consideration shall
        be
        addressed to the Board with one (1) copy each to the Company and the Union,
        and
        one (1) copy for each member. One (1) copy of the submission shall be submitted
        to the neutral third member. Such submission shall show:

      

      1. question
        or questions at issues

      

      2. statement
        of facts;

      

      3. position
        of the Union;

      

      4. the
        understood position of the Company; and

       

      5.
        the relief sought

       

      
        	
                          
                  E.

              	
                Documents,
                  Witnesses, Evidence and
                  Representation

              

      

      

      
        	 	 

      

      
        	 	
                1.

              	
                The
                  Union will designate its representative and the Company will designate
                  its
                  representative. Evidence may be presented either orally, or in
                  writing, or
                  both.

              

      

      

      
        	 	
                2.

              	
                The
                  System Board shall, when requested by the Company representative,
                  by the
                  Union representative, or by an individual member of the System
                  Board,
                  summon any witnesses who are employed by the Company or the neutral
                  member
                  may direct the production of relevant documents deemed necessary
                  by either
                  party to the dispute or by a System Board member. Nothing herein
                  shall
                  prohibit an arbitrator from summoning a non-employee witness upon
                  request
                  of either party.

              

      

      

      
        	 	
                3.

              	
                The
                  number of witnesses summoned at any time shall not be greater than
                  the
                  number which can be spared from the Company’s operation without
                  interference with the services of the
                  Company.

              

      

      

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

      
        	
                          
                  F.

              	
                Decisions
                  Final

              

      

      

      A
        majority vote of all members of the Board shall be competent to make a decision.
        Decisions of the Board in all cases properly referred to it shall be final
        and
        binding upon the parties. Board findings and decisions shall be in writing
        and
        shall be rendered within forty-five (45) days from the close of the hearing,
        or
        as soon as practicable thereafter.

      

      
        	G.  	
                Location
                  of Board Hearings

              

      

      

      The
        Board
        shall meet in the city where the Company’s general offices are located unless
        the parties mutually agree to a different location.

      

      
        	H.  	
                Rights
                  and Privileges of Parties 

              

      

      

      Nothing
        herein shall be construed to limit, restrict or abridge the rights and
        privileges accorded to either the Flight Attendant employees, the Union or
        the
        Company, or their accredited representatives, under provisions of the Railway
        Labor Act, as amended.

      

      
        	I.  	
                Expenses
                  - Board Members/Witnesses

              

      

      

      
        	 	
                           
                  1.

              	
                The
                  expenses of the Board and the expenses and reasonable compensation
                  of the
                  neutral member will be borne equally by the parties. Each of the
                  parties
                  will assume the compensation, travel expenses of their Board Members,
                  witnesses, and representatives.

              

      

      

      
        	 	
                           
                  2.

              	
                The
                  grievant (whether an employee of the Company or not), employee
                  witnesses,
                  employee board members and representatives who are employees of
                  the
                  Company shall receive free transportation on the lines of the Company,
                  from their point of duty or assignment to the point at which they
                  must
                  appear as witness or representatives, and return, so far as space
                  is
                  available, to the extent permitted by existing policies and travel
                  agreements and law.

              

      

      

      
        	3.  	
                Employee
                  Board members shall, when attending meetings or hearings of the
                  Board,
                  receive on-line Company business positive space passes for Company
                  transportation to the extent permitted by travel agreements and
                  law.

              

      

      

      
        	4.  	
                Should
                  a hearing be postponed or canceled without mutual consent of the
                  Company
                  and the Union, the party requesting such postponement or cancellation
                  shall bear any and all cancellation fees and or expenses incurred
                  by the
                  neutral member. 

              

      

      

      
        	5.  	
                Members
                  of the Board who are employees of the Company shall suffer no loss
                  of pay
                  while attending Board meetings.

              

      

      

      J. Stenographic
        Report

      

      When
        it
        is mutually agreed that a stenographic report is to be taken of any three
        member
        board hearing, the cost will be borne equally by both parties to the dispute.
        In
        the event it is not mutually agreed that a stenographic report of proceeding
        will be taken, any transcripts made by either party shall be furnished to
        the
        other party upon request, provided that the stenographic costs shall be borne
        equally by both parties. No stenographic report or other recordings are
        permitted at other hearings except by mutual agreement in advance.

      

      K. Freedom
        to Discharge Duties

      

      Each
        Board Member shall be free to discharge her duty in an independent manner
        without fear that her individual relations with the Company, with the Flight
        Attendants or with the Union may be affected in any manner by any action
        taken
        by her in good faith in her capacity as a member of the Board.

      

      

      

      

      
        
          
          

        

        
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      ARTICLE
        20

      

      UNION
        MEMBERSHIP

      

      
        	A.  	
                Union
                  Membership

              

      

      

      It
        shall
        be a condition of employment that all Flight Attendants covered by this
        Agreement shall, on the effective date of this Agreement, become and remain
        members in good standing of the Union. It shall be a condition of employment
        that all Flight Attendants covered by this Agreement and hired on or after
        its
        effective date shall, on or before the ninetieth (90th) day following the
        beginning of the initial seniority date, become and remain members in good
        standing in the Union. In the alternative to becoming and remaining members
        of
        the Union in good standing, Flight Attendants subject to this paragraph may
        tender to the Union monthly dues, fees and/or assessments uniformly required
        of
        the Union members, such sums to be recognized as “Service Fees”. 

      

      
        	B.  	
                Initiation
                  Fees, Dues and Assessment Deductions and
                  Reporting

              

      

      

      
        	1.  	
                The
                  Company will deduct from the wages of any Flight Attendant covered
                  by this
                  Agreement said Flight Attendant’s dues, initiation fees and/or assessments
                  as a member of the Union, or Service Fees, upon receiving the Flight
                  Attendant’s voluntary and individual written authorization for the Company
                  to make such deductions, signed by the Flight Attendant. Such
                  authorization form will be provided by the Union. The Company will
                  pay
                  over to the proper officers of the Union the wages withheld for
                  such
                  initiation fees, dues and/or assessments. The amount so withheld
                  shall be
                  deducted from the appropriate paycheck, reported and paid to the
                  Union
                  monthly, no later than the fifteenth (15th)
                  of each month. 

              

      

      

      
        	2.  	
                Dues
                  Check-Off Authorization is listed in the Appendix.
                  

              

      

      

      
        	3.  	
                The
                  following information will be reported and transmitted with the
                  monthly
                  check off: each Flight Attendant’s Social Security number, full name,
                  current address, phone number(s), hire date, date of birth, rate
                  of pay
                  and status of employment (e.g. Base, active, on Leave of Absence,
                  Furlough, recall date, termination date, etc.). Such report will
                  be
                  transmitted electronically as an MSExcel file or such other application
                  as
                  the parties may agree. 

              

      

      

      
        	C.  	
                Indemnification
                  Clause

              

      

      

      The
        Union
        shall indemnify the Company and hold the Company harmless from any and all
        claims which may be made by a Flight Attendant against the Company by virtue
        of
        the wrongful application or misapplication of any of the terms of this Section.
        

       

      
        
          	
                               
                    D. 
                    Dues Collection after Termination

                	 

        

                                
          

                                
          In the event of termination of employment, there shall be no obligation
          upon the
          Company to collect dues until all other deductions have been made.

      

      

      
        	             
                E.  Failure
                to Pay Dues
                or
                Service Fees	 

      

       

      
        	 	
                 
                  1.

              	
                If
                  any Flight Attendant covered by this Agreement becomes delinquent
                  in the
                  required payment of the Service Fee or if any Union member becomes
                  delinquent in the payment of dues, fees, and/or assessments, the
                  Union may
                  immediately notify such Flight Attendant by CERTIFIED MAIL, RETURN
                  RECEIPT
                  REQUESTED, with a copy sent by regular U.S. mail and a copy to
                  the
                  Director of Inflight, that the Flight Attendant is delinquent in
                  the
                  payment of such Service Fee or membership dues, fees, and/or assessments,
                  as specified herein and is subject to discharge as a Flight Attendant
                  for
                  the Company. Such letter shall also notify the Flight Attendant
                  that the
                  required payment must be remitted within a period of thirty (30)
                  days or
                  the Flight Attendant will be discharged.

              

      

      

      
        	 	
                 
                  2.

              	
                If
                  upon expiration of the thirty (30) day period the Flight Attendant
                  remains
                  delinquent, the Union may certify in writing to the Director of
                  Inflight,
                  copy to the Flight Attendant, that the Flight Attendant has failed
                  to
                  remit payment within a grace period allowed and is to be discharged.
                  The
                  Director of Inflight shall therefore notify the Flight Attendant
                  within
                  ten (10) days of the receipt of notice from the Union that she
                  is to be
                  discharged from the service of the Company, of the reason for this
                  action,
                  and of her rights under this section to appeal this decision.
                  

              

      

      

      
        	 	
                 
                  3.

              	
                A
                  Flight Attendant who is to be discharged as a result of the provisions
                  of
                  this Article may protest the intended action only by using the
                  following
                  procedure: 

              

      

      

      
        	a.  	
                The
                  Flight Attendant must submit her protest to a two (2) member IBT/CHQ
                  System Board of Adjustment within ten (10) days from the date of
                  notification by the Director of Inflight as provided in Paragraph
                  2,
                  above. The Board shall be composed of one (1) Union designated
                  Board
                  member and one (1) Company designated Board member. Copies of the
                  protest
                  shall be submitted to the Director of Inflight c/o Chautauqua Airlines,
                  Inc. 8909 Purdue Rd., Suite 300 Indianapolis, IN 46268 and to the
                  Union
                  c/o Teamsters Local Union No. 135, 1233 Shelby St., Indianapolis,
                  IN 46203
                  via USPS
                  CERTIFIED, RETURN RECEIPT REQUESTED.
                  If the employee fails to file a timely protest her discharge shall
                  be
                  effective upon expiration of the ten (10) day period as set forth
                  in this
                  paragraph. The two (2) member System Board of Adjustment will convene
                  a
                  hearing within ten (10) days of receipt of the protest. A representative
                  of the Company, a representative of the Union and the employee
                  filing the
                  protest will be allowed to present to the Board all evidence and
                  argument
                  relevant to the issue (i.e., were the dues, fees, and/or assessments
                  owed
                  and timely paid). Prior to the expiration of the work day following
                  such
                  Board meeting, the Board will issue either a majority decision
                  or a notice
                  of deadlock with a copy sent to the Union, the Company and the
                  affected
                  employee filing such protest. If the majority decision is issued,
                  it will
                  be final and binding on all parties concerned.

              

      

      

      
        	b.  	
                If
                  the protest is deadlocked by the two (2) member IBT/CHQ System
                  Board of
                  Adjustment, the Flight Attendant may appeal to the three (3) member
                  IBT/CHQ System Board of Adjustment in accordance with Article 19.
                  B. of
                  this Agreement by notifying the parties in the same manner as previously
                  identified in paragraph 3.a. above within ten (10) days of receipt
                  of the
                  deadlock decision. The Union and the Flight Attendant shall select
                  a
                  neutral from the list set out in Article 19.G. using the alternate
                  strike
                  method. Once the neutral is selected the Board will endeavor to
                  convene a
                  hearing at the earliest possible time to decide the dispute. At
                  the
                  meeting of the Board, sitting with the neutral, a representative
                  of the
                  Union and the employee filing the protest will be allowed to present
                  to
                  the Board all evidence and argument relevant to the issue. A majority
                  decision of the Board, including the neutral, will be issued within
                  five
                  (5) days after such meeting and will be final and binding on all
                  parties
                  concerned. The expenses and reasonable compensation of the neutral
                  and all
                  other costs of the proceeding shall be borne equally by the Union,
                  the
                  Company and the affected employee. 

              

      

      

      
        	 	
                 
                  4.

              	
                Time
                  limits specified in this Article may be extended in individual
                  cases only,
                  and then only by written agreement between the Flight Attendant
                  and the
                  Union. 

              

      

      

      
        	 	
                 
                  5.

              	
                During
                  the pendency of an appeal by the Flight Attendant, pursuant to
                  paragraph
                  3.a. or 3.b. above, a Flight Attendant shall be in non-pay status
                  and
                  shall not be permitted to fly. 

              

      

      

      
        	 	
                 
                  6.

              	
                It
                  is understood that the requirements of paragraph A, above, shall
                  not apply
                  to a Flight Attendant during periods of time she holds a management
                  position. 

              

      

      

      
        	             
                G. Individual
                Dues Payment	 

      

      

      It
        shall
        be the responsibility of any Flight Attendant who is not on a dues deduction
        program to keep her membership current by direct payments of monthly dues
        to the
        Union. 

      

      
        	             
                H. Dues
                Deduction Error	 

      

      

      Should
        a
        deduction be missed, or in the event an insufficient amount is deducted,
        the
        Company will be responsible to make the proper deduction in full the following
        month, or deducted in such amounts and/or timeframe as the Union may direct.
        

      

                 
        I. Bulletin
        Board

      

      The
        Company will provide the Union with one suitable glass covered, bulletin
        board
        at a location designated by the Union for the posting of official notices
        of
        Union meetings, elections and other notices pertaining to internal Union
        matters. All such notices shall be issued by and/or signed by a duly authorized
        representative of the Union.
        In
        addition, the Company will provide space for a Union bulletin board in all
        crew
        rooms. If the space is not available, the Company will meet with the Union
        to
        mutually agree on alternatives. 

       

                         
        J. Union
        Access 

      

      The
        Union
        Representative(s) shall have free access to the Company's operations facilities
        to transact that business which is necessary for the administration of this
        Agreement. The Company further agrees to provide the Union Representative
        with
        proper ID to enter its operation facilities, if required. 

      

                        
        K. Hospitality
        Committee

      

      The
        Company shall set aside a mutually agreeable period of time, not less than
        one
        hour, during the first week of each new hire class during which the Union
        Business Representative and/or Union Hospitality Committee may meet with
        each
        new hire class. This meeting shall be used solely to convey information about
        the Union, its representation of Company Flight Attendants, and its role
        in
        dealing with the Company on behalf of Flight Attendants all presented in
        positive terms. The Union may designate those committee representatives who
        will
        present Hospitality Committee materials during the new hire class, so long
        as
        such representative(s) adhere to the provisions above. The Company may elect
        to
        have a representative present during the meeting. 

      
        
          
          

        

        
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      ARTICLE
        21

      

      UNIFORMS

      

      
        	A.  	
                Uniform
                  Guidelines

              

      

      

      
        	1.  	
                A
                  Flight Attendant shall wear the standard uniform as required in
                  Company
                  regulations at all times when on duty or in connection with any
                  event or
                  special assignment where the Flight Attendant is identified as
                  a Flight
                  Attendant with the Company. 

              

      

      

      
        	2.  	
                The
                  Flight Attendant will be responsible for the cost of the initial
                  basic
                  uniform and all accessories. 

              

      

      

      
        	3.  	
                The
                  price of uniform items purchased through the Company will be at
                  the
                  Company's cost.

              

      

      

      
        	B.  	
                Basic
                  Uniform Complement

              

      

      

      
        	1.  	
                The
                  required uniform will consist of one (1) Blazer, two (2) Bottoms
                  (slacks
                  or skirts), one (1) Belt, four (4) Shirts, two (2) Ties, and a
                  Raincoat
                  with removable liner. 

              

      

      

      
        	2.  	
                The
                  Company will provide each Flight Attendant with one (1) set of
                  wings, one
                  (1) set of epaulets, one (1) belt buckle, and standard Chautauqua
                  buttons.
                  

              

      

      

      
        	C.  	
                Union
                  Insignia Pin 

              

      

      

      
        	1.  	
                The
                  Flight Attendant shall be permitted to wear the official Union
                  insignia
                  (not to exceed one (1) inch in diameter) on the right lapel or
                  one-half
                  (1/2) inch below the wings. 

              

      

      

      
        	2.  	
                The
                  Flight Attendant shall be permitted to wear other Company-approved
                  pins,
                  such as years of service recognition awards, on the uniform.
                  

              

      

      

      
        	D.  	
                Uniform
                  Changes

              

      

      

      
        	1.  	
                If
                  the Company changes the required uniform style or discontinues
                  a required
                  uniform piece and requires the acquisition of a substitute piece,
                  a Flight
                  Attendant will be provided new required uniform pieces at no cost.
                  

              

      

      

      
        	2.  	
                If
                  a Flight Attendant is involuntarily required to change bases requiring
                  a
                  change of uniform the Company shall be responsible for supplying
                  the
                  Flight Attendant with the basic uniform complement at no cost.
                  

              

      

      

      
        	3.  	
                The
                  Union will designate a Uniform and Appearance Committee which will
                  be
                  consulted by the Company prior to making any changes in the Flight
                  Attendant uniform or appearance standards. The Company will consider
                  the
                  reasonable recommendations of the Committee.

              

      

      

      
        	4.  	
                The
                  Company will meet with the Chief Steward or her designee to resolve
                  problems involving procurement of basic uniform items.
                  

              

      

      

      
        	E.  	
                Uniform
                  reimbursement or replacement

              

      

      

      
        	1.  	
                After
                  the first 18 months of longevity, and annually each year of longevity
                  thereafter, the Company will credit each Flight Attendant’s Uniform
                  Allowance Account with two hundred dollars ($200.00) to be used
                  for the
                  replacement of uniform items and accessories available from a Company
                  approved vendor. Flight Attendants will have the same required
                  luggage
                  options as pilots. Items ordered through a Company approved vendor
                  will be
                  direct billed to the Company for payment from the Flight Attendant’s
                  account. The unused Uniform Allowance Account will roll over from
                  year to
                  year. 

              

      

      

      
        	2.  	
                The
                  Flight Attendant will be paid a uniform allowance of $20.00 per
                  month.
                  

              

      

      

      
        	3.  	
                The
                  Company will replace or repair any uniform item that is damaged
                  while on
                  duty. 

              

      

      .

      
        	4.  	
                The
                  Company will lend two (2) maternity uniforms to Flight Attendants
                  as
                  needed. Flight Attendants who borrow maternity uniforms shall return
                  them
                  in good condition (normal wear excepted) when they are no longer
                  needed.
                  

              

      

      

      
        
          
          

        

        
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      ARTICLE
        22

      

      GENERAL

      

      
        	A.  	
                Contract
                  Agreement 

              

      

      

      
        	1.  	
                Nothing
                  in this Agreement shall be construed to limit or deny any Flight
                  Attendant
                  any rights or privileges to which she may be entitled under provisions
                  of
                  the Railway Labor Act, as amended. 

              

      

      

      
        	2.  	
                If
                  any provision of this Agreement is declared invalid by any court
                  of
                  competent jurisdiction or government agency because of existing
                  or future
                  legislation or regulation, such invalidation shall not affect the
                  remaining provisions of this Agreement.

              

      

      

      
        	3.  	
                This
                  Agreement, when accepted by the parties and signed by the respective
                  representatives duly authorized, shall constitute the sole agreement
                  between them involving the Flight Attendants. Any alteration or
                  modification of this Agreement must be made by and between the
                  parties and
                  must be in writing. 

              

      

      

      
        	4.  	
                The
                  Company shall supply copies of the Agreement for distribution to
                  the
                  Flight Attendants within thirty (30) days of the signing of this
                  Agreement. The Company will also provide trainees with a copy of
                  this
                  Agreement during initial training. The cost of production and distribution
                  will be shared equally between the Company and the Union.
                  

              

      

      

      
        	B.  	
                LOA
                  Distribution

              

      

      

      The
        Company will publish and distribute to all Flight Attendants any and all
        Letters
        of Agreement between the Company and the Union. Said letters shall be the
        same
        size and format as the Collective Bargaining Agreement. 

      

      
        	C.  	
                Personal
                  Information Change

              

      

      

      Flight
        Attendants shall immediately notify the Company of any change in address
        or
        telephone contact number. 

      

      
        	D.  	
                Property
                  Damage and Civil Liability
                  Indemnification

              

      

      

      
        	1.  	
                No
                  Flight Attendant or her estate shall be required to pay the cost
                  of repair
                  or replacement of any aircraft, equipment or property damaged or
                  destroyed
                  in the performance of her duties with the Company.
                  

              

      

      

      
        	2.  	
                The
                  Company will provide all Flight Attendants with required Company
                  manuals.
                  The Flight Attendants will be responsible for such manuals and
                  will, if
                  such manuals are lost or negligently damaged, be required to reimburse
                  the
                  Company for the cost of replacements. Upon termination, the Flight
                  Attendant must return such manuals or reimburse the Company for
                  the cost
                  thereof. 

              

      

      

      
        	3.  	
                The
                  Company shall furnish an identification card to each Flight Attendant.
                  Flight Attendants shall bear the cost of replacement if lost.
                  

              

      

      

      
        	4.  	
                The
                  Company will replace, at no cost to the Flight Attendant, her
                  identification card, wings or any other uniform accessories if
                  they are
                  damaged while on duty through no fault of the Flight Attendant.
                  

              

      

      

      
        	5.  	
                The
                  Company will continue to provide liability insurance covering Flight
                  Attendants while in the performance of their duties with the Company.
                  Such
                  coverage shall also apply to civil actions for damages against
                  a Flight
                  Attendant's estate. It is expressly understood that all indemnification
                  and holding harmless of any Flight Attendant is limited by the
                  terms and
                  exclusions of the Company's policy with its insurers.
                  

              

      

      

      
        	E.  	
                Personnel
                  File

              

      

      

      A
        personnel file will be maintained for each Flight Attendant. Upon request,
        the
        Flight Attendant will be given the opportunity to review and/or copy any
        portion
        of her file. If a Flight Attendant receives disciplinary action, any portion
        of
        her file to be relied upon by the Company in support of such disciplinary
        action
        shall be open for review upon request by the Union representative and the
        Flight
        Attendant. Further, any rebuttal letter written by the affected Flight Attendant
        related to the disciplinary letter shall also be placed in her personnel
        file.
        The Company will not use any disciplinary notices in support of disciplinary
        action if the Flight Attendant had not been provided with a copy of the prior
        disciplinary action at the time discipline was assessed. A copy of all
        disciplinary letters issued to Flight Attendants will be forwarded to the
        Union.
        Disciplinary letters will be removed from a Flight Attendant's file twelve
        (12)
        months after the date of issuance provided there are no other infractions
        of a
        similar nature in the intervening period. In no event will letters older
        than
        twenty-four (24) months remain in her file and/or be utilized for a Flight
        Attendant’s progressive discipline. 

      

      
        	F.  	
                Recorded
                  Data

              

      

      

      The
        Company will not regularly or randomly review information from a Cockpit
        Voice
        Recorder (CVR), Flight Data Recorder (FDR), or other electronic monitoring
        device for the purpose of establishing a basis for disciplinary action or
        discharge of a Flight Attendant. Information obtained from flight monitoring
        devices should be used to enhance Flight Attendant safety or Federal Aviation
        Regulations of a flight crewmember(s). 

      

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

      
        	G.  	
                Feminine
                  Pronouns

              

      

      

      The
        feminine pronouns used herein shall include the masculine, and vice versa,
        unless clear from the context that reference to the specific sex was intended.
        

      

      
        	H.  	
                Flight
                  Attendant Earnings Statement

              

      

      

      The
        Company will make available to the Union on a monthly basis a statement of
        Flight Attendant earnings in suitable electronic format to assist the Union
        with
        Union dues enforcement. 

      

      
        	I.  	
                Death
                  Benefits

              

      

      

      Upon
        the
        death of a Flight Attendant, any pay and benefits due and owing, including
        unused earned vacation time, shall be paid to the Flight Attendant's designated
        beneficiary or estate. The Company shall continue to provide medical benefits
        to
        the Flight Attendant’s family until the end of the month following the month of
        the Flight Attendant’s death. COBRA rights shall apply thereafter. 

      

      
        	J.  	
                Witness
                  Duty

              

      

      

      A
        Flight
        Attendant who is subpoenaed to appear as a witness on behalf of the Company
        will
        be paid for trips missed, and in addition will receive four (4) hours pay
        for
        such required appearance on any day off. This provision shall not apply to
        witnesses in Grievance arbitration proceedings, which will be handled in
        accordance with Article 19.I.1 of this Agreement. 

      

      
        	K.  	
                Accident
                  Investigation 

              

      

      

      
        	1.  	
                The
                  Company will allow the Union to have two (2) Union designated Go-Team
                  members to participate in an NTSB accident investigation involving
                  company
                  aircraft. A Flight Attendant participating in an aircraft accident
                  investigation involving Company aircraft as a member of the NTSB
                  Go-Team
                  shall do so without loss of pay. Flight Attendants shall continue
                  to
                  retain and accrue seniority and longevity while participating in
                  an
                  aircraft accident investigation. 

              

      

      

      
        	2.  	
                The
                  Company will promptly notify both the Union Business Representative
                  and
                  the Union designated Go-Team members in the event of any accident
                  or
                  incident involving Company
                  aircraft.

              

      

      

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

      
        	3.  	
                Up
                  to two (2) Union Safety Committee/Go-Team Members will be provided
                  "Company Business-Positive Space" transportation over the Company's
                  system
                  to any aircraft accident site as requested in writing by the Union.
                  

              

      

      

      
        	4.  	
                The
                  Company shall provide the Union with a copy of the Company Aircraft
                  Accident Emergency Response Plan and any amendments thereto.
                  

              

      

      

      
        	L.  	
                Crew
                  Room Requirements 

              

      

      

      At
        each
        Base, the Company will establish Crew rooms/lounges. Each Crew room/Lounge
        will,
        at a minimum, contain the following: company computers with access to the
        Intranet and all agreed upon company materials online; access to functioning
        printer(s) for copying of Company materials; fax machine(s); phones; and
        comfortable seating. 

      

      
        	M.  	
                Committees

              

      

      

      
        	1.  	
                Professional
                  Standards

              

      

      

      The
        Union
        will appoint a Professional Standards Committee composed of Flight Attendants
        which will confer with the Company on matters pertaining to the professional
        proficiency of Flight Attendants. Members of this Committee will be permitted
        to
        observe any training period or proficiency check. 

      

      
        	2.  	
                Safety
                  Committee

              

      

      

      The
        Union
        will appoint a Safety Committee, composed of Flight Attendants, which will
        confer with the Company on matters pertaining to safety of operations. Committee
        members will be permitted to attend any hearing or investigation of an accident
        or incident of Company aircraft operated by Flight Attendants, subject to
        the
        regulations of the government agency involved. The Company will cooperate
        in
        releasing such members to participate in such hearings. 

       

      
        	3.  	
                Scheduling
                  Committee 

              

      

      

      The
        Union
        will establish a Scheduling Committee which will meet with the Company for
        the
        purpose of facilitating the efficient operation of Article 6 (Scheduling)
        of
        this Agreement. The Scheduling Committee will be given access to
        non-confidential information regarding aircraft flows, block time reports,
        scheduled training, check rides, vacations, leaves of absence and current
        staffing in order to ensure compliance with this Agreement. The Scheduling
        Committee may submit recommendations to the Company. The Company will consider
        and attempt to accommodate the Scheduling Committee’s recommendations to the
        extent that such recommendations do not compromise efficiency of operations.
        When conflicts between the schedule and FAR or this Agreement are verified,
        the
        Company will take immediate action to resolve such conflicts. 

      

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

      
        	4.  	
                Hotel
                  Committee

              

      

      

      The
        Union
        will establish a Hotel Committee which will meet with the Company to ascertain
        the suitability of all accommodations. 

      

      
        	5.  	
                Jumpseat
                  Committee

              

      

      

      The
        Union
        will establish a Jumpseat Committee for the purpose of facilitating reciprocal
        jumpseat agreements, subject to applicable laws and regulations; provided,
        however, that final authority for jumpseat agreements lies with the Company.
        The
        Company will make available a list of all reciprocal jumpseat agreements
        to the
        Flight Attendants.

      

      
        	N.  	
                Jumpseat
                  Policy and Privilege

              

      

      

      When
        it
        is not required to have a Flight Attendant jumpseat occupied for Company
        purposes, cabin jumpseat authority for personal business shall be granted
        to
        active Inflight Services personnel on a company seniority basis up to thirty
        (30) minutes prior to departure after which it will revert to first come,
        first
        served basis, before offering access to such jumpseat to other authorized
        jumpseat riders on personal business. Such authorization shall be subject
        to the
        FAR and the Company Operations Specifications. The Captain has final authority
        to ensure that carriage of a Flight Attendant jumpseat rider does not affect
        weight or operational restrictions or cause displacement of revenue. The
        Company, in consultation with the Union, will develop and publish reasonable
        procedures to implement this jumpseat policy. 

      

      
        	O.  	
                Travel
                  Privileges and Pass Benefits

              

      

      

      
        	1.  	
                Employee
                  Travel Manual

              

      

      

      The
        Company will publish all Company-related travel benefits and privileges,
        including travel benefits and privileges associated with each code share
        partner. The Company will endeavor to negotiate travel benefits and privileges
        for each code share partner. All travel benefits and privileges related to
        a
        code sharing partner will be made available to all crewmembers. 

      

      
        	2.  	
                Buddy/Companion
                  Passes

              

      

      

      Flight
        Attendants will receive buddy passes over the lines of the Company. Station
        Managers, who are employees of the Company, or their designees, shall have
        the
        authority to issue buddy pass tickets. 

      

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

      
        	P.  	
                Pass,
                  Interline/Code Share, and Jumpseat
                  Policies.

              

      

      

      
        	1.  	
                Flight
                  Attendants on the active payroll of the Company and Flight Attendants
                  retired from the Company with ten (10) or more years of active
                  service
                  shall be entitled to all the provisions of the Company’s pass policy
                  accorded other Company employees. 

              

      

      

      
        	2.  	
                A
                  Flight Attendant who abuses the Company’s pass policy shall be subject to
                  loss of privileges. 

              

      

      

      
        	3.  	
                The
                  Company shall endeavor to negotiate favorable interline/code share
                  agreements (inclusive of jump seat privileges).

              

      

      

      
        	4.  	
                The
                  Company will issue documentation necessary to enable any person
                  entitled
                  to pass privileges to exercise those privileges, as efficiently
                  as
                  reasonably possible. In those stations where the Company has direct
                  control over the pass policies, Chautauqua employee travel cards
                  will be
                  used if issued by the Company. 

              

      

      

      
        	5.  	
                In
                  the event of the death of a Flight Attendant, the surviving spouse
                  will be
                  entitled to pass privileges for a period of one (1) year, to the
                  extent
                  permitted by law and travel code sharing agreements.
                  

              

      

      

      
        	6.  	
                The
                  Company shall make available to each Flight Attendant an Airline
                  Interline/Code Share Agreement List, updated when there are substantial
                  changes. The Travel Pass Policies for the Flight Attendants will
                  be no
                  less favorable than those afforded to all other employees of the
                  Company
                  not covered by this Agreement. 

              

      

      

      
        	7.  	
                Designated
                  Union business representatives will be provided space available
                  travel on
                  the Company’s system for the purpose of administering this Agreement.
                  

              

      

      

      
        	8.  	
                The
                  Company will furnish the Union a copy of the Pass policy and any
                  amendments thereto. 

              

      

      

      
        	Q.  	
                Payment
                  for Equipment and Training.

              

      

      

      
        	1.  	
                All
                  training of Flight Attendants shall be at Company expense. Ground
                  school,
                  flight training, training facilities, training aids, written training
                  materials and equipment utilized for such training will be provided
                  at no
                  cost to the Flight Attendant. 

              

      

      

      
        	2.  	
                Flight
                  Attendants will not be required to pay for the use of any equipment
                  required in scheduled operations. 

              

      

      

      
        	3.  	
                Manuals
                  issued to Flight Attendants by the Company will be paid for by
                  the
                  Company. Each Flight Attendant must maintain her manual in good
                  condition
                  at all times. Any Flight Attendant who transitions to another
                  aircraft-type or terminates employment shall return previously
                  issued
                  manuals in current, good condition, normal wear and tear excepted.
                  If a
                  Company-provided manual is lost or negligently damaged, the Flight
                  Attendant shall reimburse the Company for the cost of replacement.
                  

              

      

      

      
        
          
          

        

        
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        	R.  	
                Notices
                  to Flight Attendants

              

      

      

      All
        notices to Flight Attendants involving base assignments, promotions, demotions,
        furloughs, recalls, and leaves of absence shall be published by the Company
        at
        each base. Copies of all such notices will be sent to the Union. 

      

      
        	S.  	
                Commuter
                  Policy

              

      

      

      
        	1.  	
                A
                  Flight Attendant must list on at least two (2) flights with available
                  seats, no more than forty-eight (48) hours in advance, on line,
                  on code
                  sharing partners, or off line with acceptable documentation, all
                  of which
                  would position the Flight Attendant in time for her assignment.
                  

              

      

      

      
        	2.  	
                If
                  a Flight Attendant has performed paragraph S.1. above and through
                  no fault
                  of the Flight Attendant, does not arrive in time for her trip pairing
                  and
                  notifies the Company as soon as practicable, then the Company will
                  take no
                  disciplinary action against the Flight Attendant, subject to paragraph
                  S.5. below. 

              

      

      

      
        	3.  	
                The
                  Flight Attendant shall report in her Base as soon as possible and
                  shall be
                  subject to reassignment for the remainder of the trip pairing for
                  that
                  day. The Company will attempt to place the Flight Attendant back
                  on her
                  original trip as soon as practicable as long as the trip has not
                  been
                  awarded to a Flight Attendant on her day off. If assigned to another
                  trip,
                  such trip must be scheduled for completion no more than two (2)
                  hours
                  later than the original trip hour period, unless the Flight Attendant
                  agrees to a later schedule completion.

              

      

      

      
        	4.  	
                The
                  Flight Attendant’s guarantee will be reduced by the amount of flight time
                  of the missed trips. From the point that the Flight Attendant was
                  able to
                  fly the trip pairing, the Flight Attendant shall be paid the greater
                  of
                  actual flight time or her scheduled flight time.
                  

              

      

      

      
        	5.  	
                A
                  Flight Attendant may use the commuter policy protection no more
                  than two
                  (2) times in any six (6) month period.

              

      

       

      
        	T.  	
                Alcohol/Drug
                  Testing

              

      

      

      
        	1.  	
                The
                  Company will maintain and administer drug and alcohol testing programs
                  in
                  accordance with applicable laws and regulations.
                  

              

      

      

      
        	2.  	
                All
                  Flight Attendants will be provided with a copy of the Company’s FAA
                  approved drug and alcohol program. 

              

      

      

      
        	3.  	
                A
                  Flight Attendant who is removed from a trip pairing for drug or
                  alcohol
                  testing that does not result in a positive test will not suffer
                  a loss of
                  pay as a result.

              

      

      

      
        	U.  	
                Aircraft
                  Tidying 

              

      

      

      
        	1.  	
                Flight
                  Attendants will tidy the cabin and the galley of the aircraft prior
                  to
                  landing, during turns at outstations and after the last flight
                  of the
                  day.

              

      

      

      
        	2.  	
                A
                  Flight Attendant may abbreviate the tidying procedures when station
                  turn
                  time prohibits, upon expiration of duty time (15 minutes after
                  block-in of
                  the last leg of the duty period), or physiological needs dictate.
                  

              

      

      

      

      

      
        
          
          

        

        
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      ARTICLE
        23

      

      NEW
        EQUIPMENT

      

      

      Should
        the Company announce its intent to place into revenue service aircraft with
        seating capacity in excess of 99 seats, the rates and work rules specific
        to
        that aircraft type will be determined as follows: 

      

      
        	1.  	
                The
                  Company will give the Union notice of its intent to introduce the
                  new
                  equipment at least six (6) months prior to the estimated scheduled
                  revenue
                  service date, or within thirty (30) days after entering into the
                  contract
                  for procurement or lease of the new aircraft type, whichever is
                  later in
                  time. 

              

      

      

      
        	2.  	
                The
                  parties will meet within (15) days following written request by
                  either
                  party to negotiate rates of pay for such aircraft type. Should
                  negotiations result in an agreement, the new aircraft type will
                  be flown
                  in accordance with the terms of the agreement. If negotiations
                  do not
                  result in an agreement within one hundred (100) days from the date
                  of
                  commencement of negotiations, either party may submit the dispute
                  to final
                  and binding interest arbitration. 

              

      

      

      
        	3.  	
                The
                  dispute shall be heard before an Arbitrator selected in accordance
                  with
                  the procedures set forth in Article 19 (System Board of Adjustment).
                  

              

      

      

      
        	4.  	
                The
                  Hearing will be conducted as soon as possible but in no event more
                  than
                  three (3) months after arbitrator selection, unless mutually agreed
                  otherwise. Briefing by the parties, if any, will be completed within
                  thirty (30) days after the hearing date. The Arbitrator shall issue
                  a
                  decision no later than sixty (60) days after the close of the hearing
                  or
                  of receipt of the parties brief, whichever is later.
                  

              

      

      

      
        	5.  	
                Upon
                  final agreement, or issuance of the Arbitrator’s decision, as the case may
                  be, retroactive compensation, if applicable, will be paid to all
                  Flight
                  Attendants who operate a disputed aircraft type placed in revenue
                  service
                  before the parties’ agreement became effective or the award issued.
                  

              

      

      

      
        	6.  	
                Nothing
                  set forth in this Article shall prevent the Company from introducing
                  a new
                  aircraft type into revenue service before agreement is reached
                  over the
                  rates and work rules applicable to that aircraft, as long as the
                  pay rates
                  assigned to such aircraft type are not less than the rates provided
                  in
                  Article 3 of this Agreement. 

              

      

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        24

      

      HOURS
        OF SERVICE

      

      
        	A.  	
                Rest
                  Periods 

              

      

      

      
        	1.  	
                Scheduled
                  Rest 

              

      

      

      
        	a.  	
                In
                  Base, a Flight Attendant will be scheduled with a minimum of ten
                  (10)
                  hours of rest between duty periods (from release time until next
                  report
                  time). 

              

      

      

      
        	b.  	
                When
                  away from Base, a Flight Attendant will not be scheduled for less
                  than 8.5
                  hours of rest (from release time until next report time).
                  

              

      

       

      
        	2.  	
                Actual
                  Rest 

              

      

      

      A
        Flight
        Attendant will receive no less than eight (8) hours of actual rest between
        duty
        periods (from release time until next report time). 

      

      
        	B.  	
                Duty
                  Time Limitations

              

      

      

      
        	1.  	
                A
                  Flight Attendant will not be scheduled or rescheduled for a duty
                  period in
                  excess of fourteen (14) hours. In no case will the actual duty
                  time exceed
                  sixteen (16) hours without her consent.

              

      

      

      
        	2.  	
                A
                  Flight Attendant scheduled for a reduced rest overnight will be
                  scheduled
                  for no more than ten (10) hours of duty in her next duty period.
                  

              

      

      

      
        	3.  	
                A
                  Flight Attendant’s duty time for a flight, trip or trip pairing shall
                  commence at the later of the Flight Attendant’s scheduled report time or
                  actual report time. Report time shall be scheduled for thirty (30)
                  minutes
                  prior to departure time of the first flight, but may be extended
                  to
                  forty-five (45) minutes at the Company’s discretion. It will end fifteen
                  minutes after arrival time of the last flight of the duty period,
                  plus an
                  additional fifteen (15) minutes if clearing customs, repositioning
                  an
                  aircraft (as required by the Company), or a combination of the
                  above. At
                  the request of either party, the parties will meet to evaluate,
                  on an
                  airport-by-airport basis, circumstances involving longer or shorter
                  times
                  for clearing customs or repositioning that do not fit the foregoing
                  parameters. If the parties agree that an adjustment should be made,
                  the
                  change will be implemented. 

              

      

      

      
        	4.  	
                Multiple
                  day trip pairings will begin and end at a Flight Attendant’s Base.
                  

              

      

      

      
        	5.  	
                Trip
                  pairings will not be scheduled in excess of five (5) consecutive
                  days and
                  if scheduled for five (5) days, the fifth day may not exceed the
                  maximum
                  number of legs returning the Flight Attendant to Base permitted
                  under the
                  Chautauqua Pilots’ Agreement. 

              

      

      

      
        	6.  	
                A
                  duty period will contain a maximum of nine (9) flying legs. This
                  may be
                  extended to ten (10) with the Scheduling Committee’s concurrence on a bid
                  month basis. 

              

      

      

      
        	7.  	
                Except
                  in unusual circumstances, a duty period will contain a maximum
                  of three
                  (3) scheduled consecutive round trips to the same destination.
                  

              

      

      

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

      
        	C.  	
                Flight
                  Time Limitations 

              

      

      

      The
        Company will not schedule a Flight Attendant for more than: 

      

      
        	1.  	
                Eight
                  (8) hours of block time in a duty period.

              

      

      

      
        	2.  	
                Thirty
                  (30) hours of block time in any seven (7) day period. However,
                  a Flight
                  Attendant may voluntarily pick up flying in excess of this
                  limitation

              

      

      

      
        	3.  	
                One
                  hundred (100) hours of block time in a calendar month.
                  

              

      

      

      

      
        	D.  	
                Days
                  Off

              

      

      

      
        	1.  	
                The
                  Company will schedule Regular, CDO and Composite line-holders with
                  at
                  least twelve (12) days off in Base per bid period. A Flight Attendant
                  holding a Reserve line will be scheduled for at least eleven (11)
                  days off
                  in Base per bid period. A Flight Attendant in training will be
                  scheduled
                  for days off during such training in accordance with Article 10
                  (Training)
                  and D.5 below. 

              

      

      

      
        	2.  	
                A
                  Flight Attendant in initial training will be scheduled for days
                  off during
                  such training in accordance with Article 10 and D.5. below. Upon
                  completion of Initial Training and OE, a new hire Flight Attendant
                  whose
                  place of residence is not within 75 miles of her Base will be given
                  no
                  less than three (3) consecutive days off prior to reporting to
                  Base. Days
                  off, for the purposes of this paragraph, may be reduced by mutual
                  agreement between the Company and the Flight Attendant.
                  

              

      

      

      
        	3.  	
                Regular,
                  Composite, CDO and Reserve lines will be scheduled with one (1)
                  period of
                  at least three (3) consecutive days off. All other periods of days
                  off
                  will be scheduled as groups of at least two (2) days, except during
                  the
                  integration period, which may contain single days off.
                  

              

      

      

      
        	4.  	
                If
                  a Flight Attendant is unavailable for flight duty for a part of
                  a bid
                  period, her minimum scheduled days off will be prorated per the
                  chart
                  below. A Flight Attendant is unavailable if she cannot perform
                  flight
                  duty, because, e.g., of lack of current qualifications or leaves,
                  excluding sick leave or paid leaves.

              

      

      
        	
                 

              	 
	
                Duty-Days
                  Actual or Anticipated (including days-off)

              	 Days
                Off
	
                1
                  to 2

              	
                0

              
	
                3
                  to 5

              	
                1

              
	
                6
                  to 8

              	
                2

              
	
                9
                  to 11

              	
                3

              
	
                12
                  to 14

              	
                4

              
	
                15
                  to 18

              	
                6

              
	
                19
                  to 21

              	
                7

              
	
                22
                  to 24

              	
                8

              
	
                25
                  to 27

              	
                9

              
	
                28
                  to 29

              	
                10

              
	
                30
                  to 31

              	
                12
                  (line holder)

                11
                  (for reserve)

              

      

      

      

      
        	5.  	
                A
                  Flight Attendant will not be scheduled/rescheduled to perform any
                  duty,
                  including training, for more than six (6) consecutive days without
                  a
                  calendar day off. 

              

      

      

      
        	6.  	
                In
                  no case will any Flight Attendant be reduced below her minimum
                  days off in
                  Base without receiving a replacement day off in the same or following
                  month. 

              

      

      

      
        	7.  	
                A
                  Flight Attendant who voluntarily reduced her days off will not
                  be entitled
                  to replacement day(s) off. 

              

      

      

      
        
          
          

        

        
          60

          
            

          

        

        
          
          

        

      

      
        	E.  	
                Notification
                  at Base

              

      

      

      
        	1.  	
                The
                  Company will maintain a standard method of notifying a Flight Attendant
                  if
                  scheduled departure time will be appreciably delayed (more than
                  one (1)
                  hour) or canceled. A Flight Attendant will be notified as far in
                  advance
                  as is practicable. 

              

      

      

      
        	2.  	
                The
                  Company will not contact an off duty Flight Attendant between 2200
                  and
                  0600 local Base time. The following exceptions apply:
                  

              

      

      

      
        	a.  	
                If
                  there is a change in the Flight Attendant’s schedule (i.e. rescheduled),
                  the Flight Attendant may be called one (1) hour prior to the original
                  or
                  revised report time, whichever is earlier, provided the call is
                  made to
                  minimize the disruption to the Flight Attendant’s rest. No more than one
                  (1) personal contact will be made during that period by the Company
                  for
                  this reason. 

              

      

      

      
        	b.  	
                A
                  Flight Attendant on reserve may be contacted during her period
                  of reserve
                  availability. 

              

      

      

      
        	c.  	
                A
                  Flight Attendant off duty may be contacted when the operational
                  requirements dictate. 

              

      

      

      
        	3.  	
                A
                  Flight Attendant who is unable to report for duty will notify Crew
                  Scheduling as far in advance as practicable.

              

      

      

      
        	4.  	
                A
                  Flight Attendant will not be required to keep the Company notified
                  of her
                  whereabouts on her days off. 

              

      

      

      
        	F.  	
                Flight
                  Attendant Fatigue

              

      

      

      
        	1.  	
                A
                  Flight Attendant is expected to report for duty adequately rested
                  in order
                  to comply with her obligation to complete her assignment.
                  

              

      

      

      
        	2.  	
                A
                  Flight Attendant who declares herself fatigued will notify Crew
                  Scheduling, while on duty, and will be immediately removed from
                  duty and
                  will not be credited or paid for the portion of her trip that she
                  does not
                  operate because of fatigue. 

              

      

      

      
        	3.  	
                A
                  Flight Attendant will only declare herself fatigued when she is
                  legitimately fatigued. 

              

      

      

      

      

      

      
        
          
          

        

        
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      ARTICLE
        25

      

      BASES

      

      A Bases

      1.
        The
        Company may establish or maintain a Flight Attendant base at any location
        where
        it establishes or maintains a pilot base.

      

      2.
        Should
        the Company wish to establish or maintain a Flight Attendant base at a location
        where it does not have a pilot base, the provisions set forth below shall
        govern. 

      

      B. A
“Large”
        base is defined as any base with at least twenty (20) hard lines (not including
        build up or reserve lines) available for bid at that location and where the
        Company flies routes that connect the base location with at least two (2)
        other
        airport locations (an airport that is flag stopped does not count toward
        the two
        (2) airports). No large base shall be opened unless the previous conditions
        are
        met or the Union and the Company have come to a mutual agreement. 

      

      C. A
“Small”
        base is defined as any base that has fewer than twenty (20) hard lines but
        no
        fewer that eleven (11) hard lines. The Company may have a maximum of one
        (1)
“small” base for every two (2) “large” bases. The criteria for a “small” base
        shall be the same as for a “large” base, except that the minimum number of hard
        lines shall be no fewer than eleven (11). 

      

      D. The
        Company and the Union recognize that the above-stated criteria may fluctuate
        periodically, but in the interest of stability, the Company would not normally
        be required to close a non-conforming base unless one or both of the
        above-stated criteria has not been met for at least a one (1) year
        period. 

      

      E. Bases
        must contain lines that contain overnight trips away from base. 

      

      F. Hybrid
        Bases 

      

      
        	 	
                1. 
                  A Hybrid Base is any new base that opens after the date of signing
                  of the
                  Agreement that does not comply with the criteria specified in B.
                  or C
                  .above.

              

      

      

      
        	 	
                2. 
                  In order for the Company to open and maintain a hybrid base, the
                  following
                  conditions must apply:

              

      

      

      
        	a)  	
                The
                  aircraft assigned to the new base must be a result of expansion/growth
                  and
                  not simply relocation of company
                  flying.

              

      

      

      
        	b)  	
                The
                  base will have a minimum of two (2) aircraft to cover the flying
                  assigned
                  to the new base. The Company shall be allowed three (3) months
                  to place
                  both aircraft into service.

              

      

      

      
        	c)  	
                If
                  a hybrid base does not comply with the criteria set forth in paragraphs
                  B.
                  or C. within eighteen (18) months from the date of opening, it
                  will be
                  closed unless it is otherwise mutually agreed by the parties to
                  keep the
                  base open.

              

      

      

      
        	 	
                3. 
                  There is no minimum number of cities these bases must
                  serve.

              

      

      

      
        	 	
                4. 
                  All vacancies will be filled with volunteers only. No Flight Attendant
                  will be displaced or forced to fill these
                  vacancies.

              

      

      

      
        	 	
                5. 
                  The Company cannot restructure or close any current base and then
                  reopen
                  it to take advantage of the provisions of this
                  section.

              

      

      

      
        	 	
                6. 
                  The Company cannot restructure or close any base meeting the criteria
                  set
                  forth in paragraphs A. or B. and then reopen it as a hybrid base
                  to take
                  advantage of the provisions of this
                  section.

              

      

                        
        

                        
        G. In
        the
        event of a dispute over any section of Article 25 (Bases) and a similar dispute
        exists with the pilots, the resolution of the Pilot dispute will control.
        

      

      

      

      
        
          
          

        

        
          62

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        26

      

      MISSING,
        INTERNMENT, HOSTAGE OR PRISONER OF WAR BENEFITS

      

      

      
        	A.  	
                Any
                  Flight Attendant who, while in the performance of duties for the
                  Company,
                  through no fault of her own becomes missing, is illegally interned,
                  is
                  held as a prisoner of war, is hijacked or is held hostage shall
                  accrue
                  seniority and longevity credit, and shall receive the following
                  benefits
                  until he/she returns to active employment with the Company or as
                  otherwise
                  provided in this article:

              

      

      

      
        	1.  	
                The
                  average monthly compensation she received during the highest paid
                  three
                  (3) months of the last six (6) full months she worked with the
                  Company,
                  less legally mandated deductions and deductions previously authorized
                  by
                  the Flight Attendant. Where such Flight Attendant would be entitled
                  to
                  longevity raises, the Flight Attendant shall be paid in accordance
                  with
                  those raises.

              

      

      

      
        	2.  	
                Continuation
                  of travel benefits for dependents of said Flight
                  Attendant.

              

      

      

      
        	3.  	
                Contributions
                  that were being paid by the Flight Attendant and deducted from
                  her wages
                  will continue to be deducted from wages paid under this internment
                  benefit.

              

      

      

      
        	4.  	
                Full
                  accrual of vacation and sick leave
                  credit.

              

      

      

      
        	B.  	
                In
                  cases in which it is not apparent whether the Flight Attendant
                  is
                  involuntarily or unlawfully detained, the above benefits will be
                  paid
                  retroactively if such status is later
                  confirmed.

              

      

      

      
        	C.  	
                In
                  the event that the Union has concerns regarding the security of
                  Flight
                  Attendants in foreign locations, the parties shall promptly meet
                  and
                  confer regarding appropriate security measures to be taken in light
                  of the
                  risk reasonably expected to be incurred. Any security measures
                  reasonably
                  required shall be promptly
                  implemented.

              

      

      

      
        	D.  	
                If
                  death is established, or if there is sufficient presumption of
                  death, all
                  benefits set forth in A. above shall cease and death and survivor
                  benefits
                  shall be paid.

              

      

      

      
        	E.  	
                If
                  the parties are unable to confirm whether a Flight Attendant who
                  is
                  interned or unlawfully detained is alive or dead, compensation
                  and other
                  benefits shall continue to be paid by the Company to the beneficiaries
                  (or
                  trust account) indicated in the Flight Attendant's letter of instruction
                  to the Company for a period of eighteen (18) months, after such
                  Flight
                  Attendant was last known to be alive. At the end of that eighteen
                  (18)
                  month period, if the Flight Attendant's status is still unconfirmed,
                  death
                  and survivor benefits shall be
                  paid.

              

      

      

      
        	F.  	
                If
                  a Flight Attendant who has been paid death/survivor benefits pursuant
                  to
                  this Article 5 is later found to be alive, he shall receive retroactively
                  the difference in pay between the total compensation (including
                  death
                  benefits) paid by the Company under this section and the monthly
                  amounts
                  he would have been due under this section had the Company known
                  he was
                  alive. If the Flight Attendant remains interned or imprisoned,
                  monthly
                  payments shall then be resumed for the duration of internment or
                  imprisonment. If the death/survivor benefits are greater than the
                  benefits
                  provided pursuant to this section, the Flight Attendant shall reimburse
                  the Company for the excess
                  received.

              

      

      

      
        	G.  	
                The
                  monthly compensation set forth in Paragraph A. above, will be credited
                  to
                  such Flight Attendant on the books of the Company and will be distributed
                  according to written directions from the Flight Attendant. The
                  Company
                  will require each Flight Attendant to execute and deliver to the
                  Company a
                  written direction in the form set forth in Paragraph I.
                  below.

              

      

      

      
        	H.  	
                If
                  a Flight Attendant due compensation under this Article has not
                  completed a
                  direction per Paragraph G. above, or the written direction does
                  not cover
                  the situation, such compensation will be held in an interest bearing
                  account at a federally-insured financial institution until the
                  Flight
                  Attendant is found or released and is able to claim the compensation.
                  In
                  the event of the Flight Attendant’s death, the proceeds of said account
                  will be paid to the legal representative of the Flight Attendant’s
                  estate.

              

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          63

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        27

      

      SICK
        LEAVE

      

      
        	A.  	
                Sick
                  Pay Bank

              

      

      

      Paid
        sick
        time is provided to allow the time off necessary to recuperate from illness
        or
        injury. 

      

      
        	B.  	
                Definitions

              

      

      

      
        	1.  	
                Sick
                  Pay - is pay to an eligible Flight Attendant who cannot perform
                  her
                  regular duties because of sickness or non-occupational injury,
                  including
                  maternity. Sick pay may also be utilized when a Flight Attendant's
                  presence would jeopardize the health of others because of exposure
                  to a
                  contagious disease. Sick pay does not cover time for routine physical
                  examinations or dental check-ups. Pay during a period of sick absence
                  will
                  be based on the Flight Attendant's base rate and scheduled hours.
                  (i.e.
                  Line holders will be paid and have time deducted from their sick
                  bank on a
                  “trips missed” basis and reserves will be paid and have 4.0 hours deducted
                  from their sick bank for each day they are on sick leave.
                  

              

      

      

      
        	2.  	
                Worker's
                  Compensation Temporary Disability Pay - is pay to an eligible Flight
                  Attendant unable to work because of an injury on the job at the
                  Company.
                  

              

      

      

      
        	a.  	
                The
                  injury must be one that is covered by the applicable state worker’s
                  compensation law and must be verified in writing by the treating
                  physician. 

              

      

      

      
        	b.  	
                Payment
                  for occupational injury by the Company's insurance carrier, or
                  the state,
                  is generally set at a percentage of the Flight Attendant's average
                  weekly
                  wage. However, this rate and the maximum weekly payment may vary
                  from
                  state to state. 

              

      

      

      
        	3.  	
                State
                  Mandated Benefits - are disability income benefits required by
                  law in
                  certain states. State mandated benefits may include or require
                  payments
                  from an outside source. 

              

      

      

      
        	4.  	
                In
                  no event may a Flight Attendant be entitled to state mandated benefits
                  and
                  sick pay in excess of the Flight Attendant's rate of pay in excess
                  of her
                  monthly line award, or when she is absent for an entire bid month,
                  her
                  monthly guarantee. 

              

      

      

      

      
        
          
          

        

        
          64

          
            

          

        

        
          
          

        

      

      

      

      
        	C.  	
                Sick
                  Leave Accrual 

              

      

      
        	 

                     1. 
                  A Flight Attendant accrues hours of sick pay credits for each month
                  that
                  she is in a paid status. A Flight Attendant will accrue sick leave
                  as
                  follows for each month of service as a Flight Attendant to
                  a  

                                                 maximum of 300
                  hours. 

              

      

      

      
        	
                Years
                  of Service

              	
                Accrual
                  per month

              
	
                0-12
                  months

              	
                2.0
                  hours

              
	
                2-6
                  years

              	
                2.5
                  hours

              
	
                7+
                  years

              	
                3.0
                  hours

              

      

      

      
        	2.  	
                The
                  Flight Attendant must be at work, on paid sick leave, on vacation,
                  or on a
                  Company-offered leave of absence for at least fifteen (15) or more
                  days in
                  a month in order to be considered to be an active Flight Attendant
                  for
                  sick pay accrual purposes. 

              

      

      

      
        	D.  	
                Commencement
                  and Payment of Paid Sick Time

              

      

      

      
        	1.  	
                When
                  a Flight Attendant other than a Reserve Flight Attendant loses
                  time
                  because of illness or injury she will be credited with the scheduled
                  time
                  of any trip lost to the extent she has sick leave accrued. A Flight
                  Attendant absent for a full month because of illness or injury
                  who has not
                  been awarded a monthly schedule will be credited with the minimum
                  monthly
                  guaranteed hours to the extent she has sick leave accrued.
                  

              

      

      

      
        	2.  	
                A
                  Reserve Flight Attendant will be credited with three hours thirty
                  minutes
                  (3.5 hours) for each day of schedule reserve day missed as a result
                  of
                  injury or illness as defined above. The Reserve Flight Attendant
                  will not
                  have the monthly guarantee reduced because of injury or illness
                  provided
                  she has enough sick hours accrued to cover the missed days.
                  

              

      

      

      
        	3.  	
                If
                  a Flight Attendant becomes unable to perform her duties due to
                  illness
                  while on a trip, and cannot return to her base, she will be provided
                  lodging, if necessary, until she can return to her base.
                  

              

      

      

      
        	E.  	
                Calling
                  Off / Calling On

              

      

      

      
        	1.  	
                A
                  Flight Attendant will make one (1) call to Crew Scheduling to notify
                  them
                  that she is unable to report to work due to illness or injury.
                  During the
                  call she will advise them of the anticipated duration of her absence.
                  If
                  the anticipated duration changes, the Flight Attendant will notify
                  Crew
                  Scheduling. When the Flight Attendant is ready to return to work,
                  she will
                  call Crew Scheduling to notify them of her return date.
                  

              

      

      

      
        	2.  	
                If
                  the Flight Attendant’s availability to return to work is in the middle of
                  a multi-day pairing, the Company will reinstate the Flight Attendant
                  into
                  her pairing in domicile at the earliest possible time. By mutual
                  agreement
                  between the Flight Attendant and Crew Scheduling, the Flight Attendant
                  may
                  return to her trip at a location other than her base, or be assigned
                  to
                  another trip within the days of her original trip.
                  

              

      

      

      
        	3.  	
                A
                  Flight Attendant may use accrued sick leave to receive pay for
                  FMLA-covered absences due to illness or injury of a spouse or child.
                  

              

      

      

      
        	F.  	
                Exhaustion
                  of Sick Pay 

              

      

      

      When
        a
        Flight Attendant who is unable to work due to illness or injury exhausts
        her
        accrued sick leave, the Flight Attendant will be placed on an unpaid medical
        leave of absence. A Flight Attendant will not accrue Sick Pay while on a
        medical
        leave of absence. 

      

      
        	G.  	
                Travel
                  While on Sick Pay Status 

              

      

      

      Flight
        Attendants on sick pay status may use their pass privileges or reduced rate
        travel for personal travel. Eligible family members (and buddies if accompanied
        by the Flight Attendant's spouse or other eligible family pass rider), are
        permitted to travel while the Flight Attendant is in a paid status. To allow
        time for family members to return from trips in progress or be notified to
        make
        alternate travel arrangements, eligible family members may continue to travel
        for thirty (30) days from the date an Flight Attendant’s status changes to
        "unpaid" (i.e., a Flight Attendant has exhausted her accrued sick leave).
        

      

      
        	H.  	
                Request
                  for Medical Documentation 

              

      

      

      The
        Company may request a doctor’s note after a Flight Attendant has been off duty
        due to illness or injury in excess of three (3) consecutive days or where
        there
        may be suspected abuse. 

      

      
        
          
          

        

        
          65

          
            

          

        

        
          
          

        

      

      
        	I.  	
                Worker’s
                  Compensation and Occupational
                  Injury

              

      

      

      
        	1.  	
                A
                  Flight Attendant may elect to use her Sick Pay to supplement Worker’s
                  Compensation benefits. 

              

      

      

      
        	2.  	
                Worker’s
                  Compensation Temporary Disability payments will be made directly
                  to the
                  Flight Attendant by the Worker's Compensation carrier (or the state)
                  in
                  the amount equal to the statutory requirements.

              

      

      

      
        	3.  	
                At
                  the option of the Flight Attendant, payments will be made to the
                  Flight
                  Attendant, by the Company, in the amount calculated to be the difference
                  between the Flight Attendant's regular monthly guarantee pay rate
                  and the
                  statutory payment amount, until such time as the Flight Attendant's
                  accrued sick leave (if elected) is exhausted.

              

      

      

      
        	J.  	
                Sick
                  Bank Payoff

              

      

      

      Flight
        Attendants after five (5) years of service are entitled to be paid for all
        accrued and unused sick pay bank hours upon Retirement. 

      

      

      

      
        
          
          

        

        
          66

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        28

      

      VACATIONS

      

      
        	A.  	
                Vacation
                  Policy

              

      

      

      
        	1.  	
                All
                  Flight Attendants are eligible for paid vacation. The rate at which
                  a
                  Flight Attendant accrues vacation is based on the Flight Attendant's
                  Company seniority. The number of days a Flight Attendant actually
                  accrues
                  vacation, to be used in the next year, is based on the Flight Attendant's
                  accrual rate and the number of pay periods the Flight Attendant
                  is active
                  in the current year. 

              

      

      

      
        	2.  	
                Accrual
                  Schedule - The number of vacation hours a Flight Attendant actually
                  receives will be based on her accrual rate and the number of pay
                  periods
                  the Flight Attendant is active in the prior year. The Flight Attendant
                  must be at work, on paid sick leave, on vacation, or on a Company-offered
                  leave of absence for at least fifteen (15) or more days in a month
                  in
                  order to be considered to be an active Flight Attendant for vacation
                  accrual purposes. 

              

      

      

      The
        number of vacation hours earned is based on the following rate of accrual:
        

      

      
        	
                Years
                  of Service

              	
                Monthly
                  Accrual

              	
                Yearly
                  Accrual

              
	
                0-12
                  months 

              	
                1.5
                  hrs/month

              	
                18
                  hrs/year

              
	
                2-7
                  years

              	
                3.0
                  hrs/month

              	
                36
                  hrs/year

              
	
                8+
                  years

              	
                4.5
                  hrs/month

              	
                54
                  hrs/year

              

      

      

      
        	3.  	
                A
                  Flight Attendant who leaves the Company voluntarily will receive
                  full
                  payment for unused vacation time credited from the previous year
                  as well
                  as vacation accrued in the year of separation.

              

      

      

      
        	4.  	
                A
                  Flight Attendant who has not accrued six (6) months of Company
                  seniority
                  is not eligible for vacation pay upon termination.
                  

              

      

      

      
        	5.  	
                In
                  the event of the Flight Attendant's retirement, permanent disability
                  or
                  death, current year accruals will also be
                  paid.

              

      

      

      
        	6.  	
                A
                  Flight Attendant may elect any of the following options in connection
                  with
                  unused vacation: 

              

      

      

      
        	a.  	
                Elect
                  to be paid for remaining vacation. Pay-out will be made on the
                  first
                  paycheck following January 1st of the next year, or
                  

              

      

      

      
        	b.  	
                In
                  lieu of taking time off, she will be paid at her current hourly
                  rate for
                  each Vacation Hour exchanged. A maximum of sixty (60) hours may
                  be
                  exchanged each month. 

              

      

      

      
        	c.  	
                Elect
                  to carry over the remaining vacation to the next year, provided,
                  however,
                  that no more than 1.5 times the current year’s accrual may be carried
                  over. 

              

      

      

      
        	d.  	
                In
                  the event of a Flight Attendant’s death, the amount will be paid to her
                  estate. 

              

      

      

      
        	e.  	
                Upon
                  the effective date of this Agreement, Flight Attendants may elect
                  to
                  convert existing PDO hours to accrued vacation hours, up to a maximum
                  of
                  the equivalent of twenty-four (24) months’ vacation accrual as set out in
                  A.2 above (e.g., a Flight Attendant with 5 years of service may
                  convert up
                  to 72 PDO hours to vacation hours; a Flight Attendant with 9 years
                  of
                  service may convert up to 108 hours). The remaining PDO hours,
                  if any,
                  shall be converted to sick bank hours or cashed out, or any combination
                  there of. 

              

      

      

      
        
          
          

        

        
          67

          
            

          

        

        
          
          

        

      

      
        	B.  	
                Vacation
                  Bidding

              

      

      

      
        	1.  	
                Vacations
                  will be bid on a system wide basis and awarded by Flight Attendant
                  Seniority. 

              

      

      

      
        	2.  	
                Bids
                  will open November 1st and close November 15th of each year. Bids
                  will be
                  submitted on the Vacation Bid form. Vacation awards will be posted
                  and be
                  made available on the Company’s intranet website no later than December
                  1st. 

              

      

      

      
        	3.  	
                A
                  Flight Attendant may bid one week of vacation for each 18 hours
                  of
                  vacation projected to be accrued through December of the year in
                  which she
                  is bidding. Partial weeks remaining (i.e., amounts less than 18
                  hours) may
                  be designated for VAC-DAT usage as provided below.
                  

              

      

      

      
        	4.  	
                The
                  weekly allotment of vacation will be no more than 40% below and
                  no more
                  than 25% higher than the annualized weekly average number of vacation
                  weeks available for bid. 

              

      

      

      
        	5.  	
                The
                  annualized weekly average of vacation available for bid shall be
                  the
                  coming year’s projected vacation accrual plus all vacation hours carried
                  over, divided by nine hundred thirty six (936).

              

      

      

      
        	6.  	
                Vacations
                  will be bid and awarded in full week increments. A vacation week
                  is Monday
                  through Sunday. 

              

      

      

      
        	7.  	
                A
                  Flight Attendant’s weekly vacation awarded is credited and deducted from
                  her vacation accrual bank by eighteen (18) hours per week.
                  

              

      

      

      
        	8.  	
                For
                  a Flight Attendant to receive awarded vacation, she must have at
                  least
                  sixteen (16) hours in her vacation bank at the time the vacation
                  is to be
                  taken. The Flight Attendant’s monthly guarantee will be reduced by the
                  number of hours in her vacation bank below eighteen (18).
                  

              

      

      

      
        	C.  	
                VAC-DAT
                  (Vacation-Day-At-A-Time)

              

      

      

      
        	1.  	
                Flight
                  Attendants may elect to designate up to one week’s accrued vacation (18
                  hours), plus any partial weeks as provided in B.3. above, to be
                  taken as
                  vacation day-at-a-time (VAC-DAT). The Flight Attendant may designate
                  the
                  number of VAC-DAT days during the vacation bidding in November.
                  Each
                  VAC-DAT day shall have credit and pay value of 3.6 hours.
                  

              

      

      

      
        	2.  	
                During
                  the year, a Flight Attendant may request VAC-DAT for a specific
                  day or
                  sequence of days, up to 3 days, if she has VAC-DAT available. At
                  each base
                  at least 

              

      

      

      
        	
                #
                  of F/As awarded  VAC-DAT
                  Periods

              	
                Base
                  Size

              
	
                1

              	
                1-20

              
	
                2

              	
                21-50

              
	
                3

              	
                51-80

              
	
                4

              	
                81+

              

      

      

      will
        be
        automatically approved, provided the request is submitted in the month prior
        to
        bidding for the month in which the VAC-DAT is requested. (For example, requests
        for automatic approval for the month of April must be submitted in the February
        bid process for award with the March bid awards, so that the VAC-DAT will
        be on
        the schedule at the time the Flight Attendant bids for her April schedule.)
        If
        more than one Flight Attendant bids for the same or overlapping VAC-DAT
        period(s), or if the number of bids exceeds the number of awards in the chart
        above, awards will be made in seniority order. Requests not eligible for
        automatic approval will be reviewed and if approved, the Flight Attendant
        will
        be notified on the “pre-assigns” prior to bidding for the month. 

      

      
        	3.  	
                Once
                  a request has been properly made, the VAC-DAT must be taken as
                  scheduled
                  unless agreed to otherwise by the Flight Attendant and the Supervisor.
                  

              

      

      

      
        
          
          

        

        
          68

          
            

          

        

        
          
          

        

      

      
        	D.  	
                Changes
                  To The Posted Schedule

              

      

      

      
        	1.  	
                Vacation
                  weeks that remain available or become open during the year will
                  be
                  available for Flight Attendants who wish to switch or add to their
                  scheduled weeks of vacation. 

              

      

      

      
        	2.  	
                Request
                  for changes in accordance with paragraph 1 above must be received
                  no later
                  than the close of bids the month prior to either the scheduled
                  vacation or
                  the first day of the vacation she wishes to select, whichever occurs
                  first. The request must be made in writing. If the Flight Attendant
                  is the
                  most senior Flight Attendant to make such a request, the Supervisor
                  will
                  approve the change, and the posted vacation schedule will be revised
                  accordingly. 

              

      

      

      
        	3.  	
                Any
                  open vacation period on the vacation schedule will remain open
                  for
                  seventy-two (72) hours prior to being awarded to the senior eligible
                  bidder. 

              

      

      

      
        	4.  	
                Updated
                  open vacation weeks will be routinely posted no later than the
                  5th of each
                  month on the Company’s intranet website.

              

      

      

      
        	E.  	
                Perfect
                  Attendance Incentive

              

      

      

      For
        each
        rolling consecutive six (6) month period of perfect attendance, each full-time
        Flight Attendant shall be entitled to 4 additional vacation hours. If a Flight
        Attendant has perfect attendance for a calendar year, she will receive an
        additional 4 hours to a maximum of 12 hours for each calendar year. At the
        option of the Flight Attendant, perfect attendance days may be taken as VAC-DAT,
        added to the Flight Attendant’s vacation bank or, with the mutual agreement of
        the Company, added to the Flight Attendant’s awarded vacation weeks.

      
        
          
          

        

        
          69

          
            

          

        

        
          
          

          
             

          

        

      

      ARTICLE
        29

      

      DURATION

      

      This
        Agreement shall be come effective on September 1st, 2005 and
        shall
        continue in full force and effect until September 1st, 2009 and shall renew
        itself without change until each succeeding September 1st thereafter
        unless written notice of an intended change is served in accordance with
        Section
        6, Title 1, of the Railway Labor Act, as amended, by either party hereto
        at
        least 30 days, but not more than 180 days, prior to September 1st, 2009
        or September 1st of any subsequent year.

      

      
        In
          Witness whereof, the parties hereto have signed this letter of Agreement
          this 1st day of September, 2005.

                                                                                                                                                                        
          

        
                                                                                                                                              
            

        

        
          	 For Republic Airways Holding,
                  Inc.        	                 
                  For the International Brotherhood of Teamsters
                  Local
                  135

        

        

        
          	 	 	 	 
	/s/ Bryan
                  Bedford	 	 	/s/ Barry
                  D. Schimmel
	
                  

                	 	 	
                  

                
	Name:
                  Bryan Bedford
Title: President and Chief Executive
                  Officer
	 	 	Name:
                  Barry D, Schimmel
Title: Business Representative IBT Local
                  135

        

          

          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        
          	 	 	 	 
	/s/ Amy
                  Chiappe	 	 	/s/ Ronald
                  L. Hall
	
                  

                	 	 	
                  

                
	Name:
                  Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                  Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                  135

        

         

               

          
            	 	 	 	 
	 	 	 	/s/ Lisa
                    Paterini
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Lisa Paterini
Title: Negotiating Committee
                    Member

          
 

          
            	 	 	 	 
	 	 	 	/s/ Ryan
                    Lee
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Ryan Lee
Title: Negotiatin Committee
                    Member

          

          
            	 	 	 	
                     

                     

                  
	 	 	 	/s/ Nicole
                    Zimmer
	
                  	 	 	
                    

                  
	
                  	 	 	Name:Nicole
                    Zimmer
Title: Negotiating Committee
                    Member

          

        

      

       

       

       

       

       

       

       

      

      
        
          
          

        

        
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      ARTICLE
        30

      

      ATTENDANCE
        POLICY

      

      
        	A.  	
                Introduction
                  / Statement of Policy

              

      

       

      
        	1.  	
                The
                  Union and the Company are committed to a fair and reasonable Attendance
                  Policy that is designed to recognize and encourage good attendance
                  and
                  provide fair treatment for any Flight Attendant who is absent or
                  late for
                  work excessively. It is each Flight Attendant’s responsibility to report
                  to work on time and to work the full schedule. It is also recognized
                  that
                  on occasion Flight Attendants (or immediate family members) experience
                  sickness that prevents the employee from coming to work or Flight
                  Attendants may be late to work for reasons beyond their
                  control.

              

      

      

      
        	2.  	
                Tracking
                  attendance, absences or tardiness is not intended to reflect negatively
                  on
                  any Flight Attendant. Absences / tardiness are noted only to ensure,
                  that
                  in rare instances of excessive absenteeism from the job, Flight
                  Attendants
                  are treated impartially and fairly.

              

      

      

      
        	3.  	
                All
                  Flight Attendants are expected to return to active status after
                  any
                  absence or leave as soon as they are capable of resuming their
                  job duties
                  including returning to work for a remaining portion of their trip
                  or
                  schedule. Each Flight Attendant is required to personally contact
                  Crew
                  Scheduling as soon as possible regarding her absence or tardiness,
                  unless
                  unable to do so for reasons beyond her
                  control.

              

      

      

      
        	4.  	
                Attendance
                  / tardiness records are not part of a Flight Attendant’s personnel record
                  unless disciplinary action is necessary. The actual attendance
                  record will
                  be maintained by the InFlight
                  Supervisor.

              

      

      

      
        	5.  	
                Abuse
                  of sick leave benefits is a violation of this policy and is subject
                  to
                  corrective action up to and including termination. An example of
                  abuse may
                  be, taking days off under the guise of illness when not actually
                  ill.

              

      

      

      
        	B.  	
                Occurrences
                  of Absenteeism / Tardiness /
                  Lateness

              

      

      

      The
        focus
        of this program shall be frequency of "occurrences" of absenteeism / tardiness
        /
        lateness based on a cumulative occurrence system. An occurrence shall be
        a
        continuous absence from scheduled duty or reporting late for work. Occurrences
        of absenteeism may vary in duration according to the nature of the event
        from a
        missed leg to several weeks or more for a single event. In accordance with
        Article 27, Sick Leave, of the Collective Bargaining Agreement, a Flight
        Attendant will “...make one (1) call to Crew Scheduling to notify them that she is
        unable to report to work due to illness or injury. During the call she will
        advise them of the anticipated duration of her absence. If the anticipated
        duration changes, the Flight Attendant will notify Crew Scheduling. When
        the
        Flight Attendant is ready to return to work, she will call Crew Scheduling
        to
        notify them of her return date.....” Any absence within that period of time is
        considered one occurrence.

      

      
        
          
          

        

        
          71

          
            

          

        

        
          
          

        

      

      
        	
                Event

              	
                Occurrence
                  

              
	
                Tardiness

              	
                1⁄2

              
	
                Lateness

              	
                1

              
	
                UNA/Absenteeism
                  / Sick Call 

              	
                1

              
	
                No
                  Call / No Show - Report after Call

              	
                3

              
	
                No
                  Call / No Show 

              	
                4

              
	
                Absence
                  Without Notice-

                 

              	
                Voluntary
                  termination

              

      

      

      
        	1.  	
                Tardiness
                  / Lateness

              

      

      

      
        	a.  	
                A
                  Flight Attendant reports six (6) or more minutes late but in time
                  to work
                  the scheduled flight without delay in her own or another flight,
                  provided
                  she has notified Scheduling that she will be late, will be considered
                  “Tardy”. 

              

      

      

      
        	b.  	
                A
                  Flight Attendant who reports six (6) or more minutes late under
                  circumstances that do not qualify as a “Tardy” will be considered
                  “Late”.

              

      

      

      
        	2.  	
                Unavailable
                  /Absenteeism / Sick Call

              

      

      

      Absenteeism
        is defined as a Flight Attendant being absent from scheduled duty (e.g. trips,
        training, reserve, etc.), failing to return to work from vacation or leave
        on
        the day and time she is set for return, or reporting to the Company that
        she is
        unavailable for a scheduled day of work or reserve.

      

      
        	3.  	
                No
                  Call / No Show 

              

      

      

      
        	a.  	
                No
                  call / No show

              

      

      

      Flight
        Attendant fails to show or call for scheduled trip or training assignment.
        

      

      
        	b.  	
                The
                  Company will initiate a call to a “No-Call/No Show” Flight Attendant and
                  may direct her to report to her own or another trip, to sit reserve
                  or hot
                  reserve assignment even though she would be reporting later than
                  her
                  scheduled report time. In such cases the Flight Attendant will
                  be
                  considered “No Call/No Show - Report after Call” if she reports as
                  directed for the new assignment. 

              

      

      

      
        
          
          

        

        
          72

          
            

          

        

        
          
          

        

      

                
        4. Absence
        Without Notice

      

      A
        Flight
        Attendant who fails to return to work from vacation or leave on the day and
        time
        set for return (fails to call or show) or fails to call/show for two (2)
        consecutive days of scheduled duty without notice to management may be
        considered a voluntary resignation. 

      

      
        	C.  	
                Absences
                  / Tardiness / Lateness Non - Chargeable under this
                  Policy

              

      

      

      
        	1.  	
                Absences
                  for the following reasons shall not be counted as occurrences of
                  absenteeism / tardiness / lateness, provided the Flight Attendant
                  provides
                  notice to the Company as soon as reasonably possible under the
                  particular
                  circumstances, and provides proper documentation within 5 days,
                  or as
                  otherwise mutually agreed upon with her
                  supervisor:

              

      

      

      
        	a.  	
                Funeral
                  / Bereavement Leave - limits and procedures as stated in Flight
                  Attendant
                  Contract

              

      

      
        	b.  	
                Jury
                  Duty

              

      

      
        	c.  	
                Court
                  Subpoena - civil or criminal cases in which Flight Attendant is
                  not a
                  named party

              

      

      
        	d.  	
                Approved
                  Military Leave

              

      

      
        	e.  	
                Workers'
                  Compensation injuries or illnesses which have been filed and
                  approved

              

      

      
        	f.  	
                Approved
                  Family Medical Leave (FMLA)

              

      

      
        	g.  	
                Approved
                  Vacation Leave or time off (paid or
                  unpaid).

              

      

      
        	h.  	
                Lack
                  of work or emergency closing or
                  layoff

              

      

      
        	i.  	
                Weather
                  conditions or other conditions that materially effect Company operations
                  and the Flight Attendant’s ability to report for duty as scheduled,
                  provided the Flight Attendant takes reasonable measures to report
                  as soon
                  as possible to resume her own or another
                  assignment.

              

      

      

      
        	D.  	
                Progressive
                  Policy

              

      

      

      The
        disciplinary process is progressive in nature but may be implemented or
        accelerated at any step, including termination, depending upon the severity
        of
        the situation. 

      

      
        	E.  	
                Excessive
                  Events of Absenteeism / Tardiness / Lateness - Corrective
                  Action

              

      

      

      
        	
                Time
                  Period within previous 12 months

              	
                Number
                  of Occurrences

              
	
                4

              	
                6

              	
                7

              	
                8

              
	
                Result:

              	
                Verbal

              	
                Written

              	
                Final/Suspension

              	
                Termination

              

      

      

      
        
          
          

        

        
          73

          
            

          

        

        
          
          

        

      

      
        	1.  	
                Step
                  #1- Verbal Warning: 

              

      

      

      After
        the
        accumulation of four (4) occurrences as defined in this policy within an
        active
        rolling twelve-month period, the Flight Attendant may be notified by her
        Supervisor that her attendance is a problem that needs her corrective attention.
        In addition, during this discussion, the Attendance Policy will be reviewed,
        and
        a copy provided to the Flight Attendant, to ensure the Flight Attendant
        understands the policy and the disciplinary steps that may be taken if absences
        / tardiness continue. The Flight Attendant is to sign that they have received
        a
        copy of the Attendance Policy. This First Warning will be placed in her
        personnel file.

      

      
        	2.  	
                Step
                  #2 - Written Warning 

              

      

      

      After
        accumulating six (6) occurrences within an active rolling twelve-month period
        a
        disciplinary letter may be issued to the Flight Attendant that her attendance
        is
        at an unacceptable level and that it requires her immediate attention to
        correct
        it. This letter will warn of further disciplinary action up to and including
        termination of employment if absences or tardiness continue. This Written
        Warning Letter will be placed in their personnel file.

      

      
        	3.  	
                Step
                  #3 - Final Warning/Suspension 

              

      

      

      When
        a
        Flight Attendant incurs seven (7) occurrences of tardiness/absenteeism within
        an
        active rolling twelve-month period the Flight Attendant may be issued a final
        written warning letter that her tardiness or attendance continues to be at
        an
        unacceptable level which will include a disciplinary suspension of three
        (3)
        unpaid days off as determined by Management. The Flight Attendant must realize
        that this is the last warning before termination. This Final Warning Letter
        will
        be placed in her personnel file. 

      

      
        	4.  	
                Step
                  #4 - Discharge or Termination 

              

      

      

      If
        the
        Flight Attendant accumulates eight (8) occurrences within an active rolling
        twelve-month period and the Flight Attendant has failed to correct her
        absenteeism / tardiness after receiving a first written warning, a second
        written warning, and/or a final warning of termination with suspension, as
        provided in Steps #1 - #3 above, the Flight Attendant may be subject to
        termination of employment.

      

      

      

      
        	F.  	
                Management
                  Guidelines

              

      

      

      
        	1.  	
                Flight
                  Attendant disciplinary actions should be administered by the appropriate
                  Supervisor within five (5) working days after the Flight Attendant
                  returns
                  to work unless unusual circumstances
                  prevail.

              

      

      

      
        	2.  	
                This
                  policy supersedes Section 1 of the Attendance Policy set out in
                  Chapter 8
                  of the Company’s Associate Handbook as it relates to Flight Attendants,
                  but does not supersede any other published policies or
                  guidelines.

              

      

      

      
        	G.  	
                A
                  Flight Attendant may request union representation and/or file a
                  grievance
                  at any step of this procedure, subject to the limitations of Article
                  18.E.3 regarding probationary Flight Attendants.
                  

              

      

      

               
        H.  Perfect Attendance Incentives

      

      
        	1.  	
                If
                  a Flight Attendant completes six (6) months of perfect attendance
                  after
                  receiving a verbal or written warning (Step 1 or 2) under this
                  policy, she
                  will have 1 occurrence removed from her
                  record.

              

      

      

      
        	2.  	
                Each
                  full-time Flight Attendant who attains a rolling consecutive six-month
                  period of perfect attendance will be entitled to 4 additional vacation
                  hours for each such period, and an additional 4 hours for each
                  calendar
                  year of perfect attendance, as provided in Article 28.E -
                  Vacations.

              

      

      

       

      

      

      

      

      
        
          
          

        

        
          74

          
            

          

        

        
          
          

          
             

          

        

      

      Binding
        of Parent

      LETTER
        OF AGREEMENT #1

      Between

      REPUBLIC
        AIRWAYS HOLDINGS, INC.

      And

      THE
        FLIGHT ATTENDANTS
        in the service of REPUBLIC
        AIRWAYS HOLDINGS, INC

      As
        represented by the

      INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS LOCAL #135

      

      This
        LETTER
        OF
        AGREEMENT
        is made
        and entered into in accordance with the provisions of the Railway Labor Act,
        as
        amended, by and between Republic Airways Holdings, Inc. (hereinafter referred
        to
        as the “Company”) (Chautauqua Airlines, Inc. and any other Subsidiary of the
        Parent), and the Flight Attendants in the service of the Company, as represented
        by the INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS, LOCAL 135
        (hereinafter referred to as the “Union”).

      

      In
        consideration for the promises and inducements contained in the Collective
        Bargaining Agreement between the Company and the Union dated September 1,
        2005
        as amended, the Parent hereby agrees to be bound by the terms applicable
        to it
        as set out in Article 1 (Scope) or any other related section of the Collective
        Bargaining Agreement between the Company and the Union.

      

      In
        Witness whereof, the parties hereto have signed this letter of Agreement
        this 1st day of September, 2005.

       

      
        	 For Republic Airways Holding,
                Inc.	                 
                For the International Brotherhood of Teamsters Local
                135

      

                                                                                                                                                                                                                                                                                                           

      
        	 	 	 	 
	/s/ Bryan
                Bedford	 	 	/s/ Barry
                D. Schimmel
	
                

              	 	 	
                

              
	Name:
                Bryan Bedford
Title: President and Chief Executive
                Officer
	 	 	Name:
                Barry D, Schimmel
Title: Business Representative IBT Local
                135

      

        

      
        
          	 	 	 	 
	/s/ Wayne
                  Heller	 	 	/s/ Victoria
                  Gray
	
                  

                	 	 	
                  

                
	Name:
                  Wayne Heller
Title: Executive Vice President
More Title: Chief
                  Operating Officer	 	 	Name:
                  Victoria Gray
Title: International
                  Representative

        

      
        	 	 	 	 
	/s/ Amy
                Chiappe	 	 	/s/ Ronald
                L. Hall
	
                

              	 	 	
                

              
	Name:
                Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                135

      

       

             

        
          	 	 	 	 
	 	 	 	/s/ Lisa
                  Paterini
	
                	 	 	
                  

                
	
                	 	 	Name:
                  Lisa Paterini
Title: Negotiating Committee
                  Member

        
 

        
          	 	 	 	 
	 	 	 	/s/ Ryan
                  Lee
	
                	 	 	
                  

                
	
                	 	 	Name:
                  Ryan Lee
Title: Negotiatin Committee
                  Member

        

        
          	 	 	 	
                   

                   

                
	 	 	 	/s/ Nicole
                  Zimmer
	
                	 	 	
                  

                
	
                	 	 	Name:Nicole
                  Zimmer
Title: Negotiating Committee
                  Member

        
                                                             

       

      

       

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          75

          
            

          

        

        
          
          

          
             

          

        

      

      LETTER
        OF AGREEMENT #2

      Between

      CHAUTAUQUA
        AIRLINES, INC.,

      REPUBLIC
        AIRLINES, INC.

      And

      THE
        FLIGHT ATTENDANTS
        in the service of CHAUTAUQUA AIRLINES, INC., and REPUBLIC
        AIRLINES, INC.

      As
        represented by the

      INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS

      

      
        	
                NEW
                  170 AIRCRAFT FOR CHAUTUAQUA AIRLINES, INC. -
                  AMENDED

              

      

      

      THIS
        LETTER OF AGREEMENT
        is made
        and entered into accordance with the provisions of the Railway Labor Act,
        as
        amended, by and among CHAUTAUQUA AIRLINES, INC., (hereinafter referred to
        as the
“Company”) and the Flight Attendants in the service of the Company, as
        represented by the INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS
        (hereinafter referred to as the “Union”).

      

      The
        Letter of Agreement entitled New 170 Aircraft for Chautauqua Airlines, Inc.,
        is
        hereby amended by changing the last paragraph thereof to read as
        follows:

      

      Unless
        otherwise agreed by the parties, if by December 31, 2005 Chautauqua Airlines,
        Inc. has not ceased operating ERJ 170 type aircraft, it shall (a) incorporate
        ERJ 170 training into the annual recurrent training for all Chautauqua Airlines,
        Inc., Flight Attendants, and (b) the monthly schedule bidding restrictions
        in
        paragraph 2, above, will be removed so that Flight Attendants may bid any
        flying
        for which they have been trained. 

      

      
        In
          Witness whereof, the parties hereto have signed this letter of Agreement
          this 1st day of September, 2005.

         

        
          	 For Republic Airways Holding,
                  Inc.  	                 
                  For the International Brotherhood of Teamsters
                  Local
                  135

        

        
                                                                                                                                             

        

        
          	 	 	 	 
	/s/ Bryan
                  Bedford	 	 	/s/ Barry
                  D. Schimmel
	
                  

                	 	 	
                  

                
	Name:
                  Bryan Bedford
Title: President and Chief Executive
                  Officer
	 	 	Name:
                  Barry D, Schimmel
Title: Business Representative IBT Local
                  135

        

          

          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        
          	 	 	 	 
	/s/ Amy
                  Chiappe	 	 	/s/ Ronald
                  L. Hall
	
                  

                	 	 	
                  

                
	Name:
                  Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                  Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                  135

        

         

               

          
            	 	 	 	 
	 	 	 	/s/ Lisa
                    Paterini
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Lisa Paterini
Title: Negotiating Committee
                    Member

          
 

          
            	 	 	 	 
	 	 	 	/s/ Ryan
                    Lee
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Ryan Lee
Title: Negotiatin Committee
                    Member

          

          
            	 	 	 	
                     

                     

                  
	 	 	 	/s/ Nicole
                    Zimmer
	
                  	 	 	
                    

                  
	
                  	 	 	Name:Nicole
                    Zimmer
Title: Negotiating Committee
                    Member

          
                                                             

      
        
          
          

        

        
          76

          
            

          

        

        
          
          

          
             

          

        

      

      LETTER
        OF AGREEMENT # 3

      Between

      REPUBLIC
        AIRWAYS HOLDINGS, INC.,

      AND
        ITS SUBSIDIARIES

      CHAUTAUQUA
        AIRLINES, INC.,

      REPUBLIC
        AIRLINES, INC.,

      AND

      SHUTTLE
        AMERICA, INC.

      AND

      THE
        FLIGHT ATTENDANTS
        in the service of CHAUTAUQUA AIRLINES, INC., REPUBLIC
        AIRLINES, INC., AND SHUTTLE AMERICA, INC.

      As
        represented by the

      INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS

      

      
        	
                TRANSFER
                  BETWEEN REPUBLIC ENTITIES

              

      

      

      THIS
        LETTER OF AGREEMENT
        is made
        and entered into accordance with the provisions of the Railway Labor Act,
        as
        amended, by and among REPUBLIC AIRWAYS HOLDINGS, INC., and its subsidiaries
        CHAUTAUQUA AIRLINES, INC., REPUBLIC AIRLINES, INC. and SHUTTLE AMERICA, INC.
        (hereinafter collectively referred to as the “Company”; each individually an
“entity”) and the Flight Attendants in the service of the Company, as
        represented by the INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS
        (hereinafter referred to as the “Union”).

      

      Any
        flying for the
        Company
        requiring Flight Attendants shall be performed exclusively by the Flight
        Attendants on the Chautauqua Airlines Flight Attendant System Seniority List,
        and shall be performed in accordance with the terms of the Chautauqua Flight
        Attendant Collective Bargaining Agreement (CBA) effective DOS, except as
        set out
        below: 

      

      
        	1.  	
                Any
                  Flight Attendant on the Chautauqua Airlines Flight Attendant Seniority
                  List as of July 1, 2005, may bid on a one-time basis for a Flight
                  Attendant position at Republic Airlines, Inc. or Shuttle America,
                  Inc.
                  

              

      

      

      
        	2.  	
                Bids
                  must be submitted no later than August 08, 2005 and
                  will remain
                  in effect until each bidder has either been awarded a vacancy pursuant
                  to
                  the bid, or the bid is withdrawn by the Flight Attendant. The following
                  rules shall apply:

              

      

      

      
        	a.  	
                When
                  Republic/Shuttle America Flight Attendant vacancies occur, eligible
                  Flight
                  Attendants who have submitted their request to be added to the
                  eligibility
                  list shall be offered such vacancies in seniority
                  order.

              

      

      
        	b.  	
                An
                  eligible Flight Attendant may bypass a vacancy so long as there
                  is a
                  less-senior eligible Flight Attendant willing to accept the vacancy.
                  When
                  there is no less-senior Flight Attendant willing to accept the
                  vacancy,
                  the Flight Attendant shall either accept the vacancy or cease to
                  be an
                  eligible Flight Attendant.

              

      

      

      
        	3.  	
                Flight
                  Attendants thereafter may not voluntarily bid between any of the
                  Company
                  entities except as provided under the terms of the
                  CBA.

              

      

      

      
        	4.  	
                Flight
                  Attendants on the Chautauqua Flight Attendant System Seniority
                  List who
                  transfer between Company entities will not suffer any training
                  expense or
                  be treated as new hires, but will carry their seniority and longevity
                  between entities.

              

      

       

      
        In
          Witness whereof, the parties hereto have signed this letter of Agreement
          this 1st day of September, 2005.

         

        
          	 For Republic Airways Holding,
                  Inc.  	                 
                  For the International Brotherhood of Teamsters
                  Local
                  135

        

        
                                                                                                                                              

        

        
          	 	 	 	 
	/s/ Bryan
                  Bedford	 	 	/s/ Barry
                  D. Schimmel
	
                  

                	 	 	
                  

                
	Name:
                  Bryan Bedford
Title: President and Chief Executive
                  Officer
	 	 	Name:
                  Barry D, Schimmel
Title: Business Representative IBT Local
                  135

        

          

          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        

          

          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        
          	 	 	 	 
	/s/ Amy
                  Chiappe	 	 	/s/ Ronald
                  L. Hall
	
                  

                	 	 	
                  

                
	Name:
                  Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                  Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                  135

        

              

        
          
            	 	 	 	 
	 	 	 	/s/ Lisa
                    Paterini
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Lisa Paterini
Title: Negotiating Committee
                    Member

          
 

          
            	 	 	 	 
	 	 	 	/s/ Ryan
                    Lee
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Ryan Lee
Title: Negotiatin Committee
                    Member

          

          
            	 	 	 	
                     

                  
	 	 	 	/s/ Nicole
                    Zimmer
	
                  	 	 	
                    

                  
	
                  	 	 	Name:Nicole
                    Zimmer
Title: Negotiating Committee
                    Member

          
                                                             

      

      

      
        
          
          

        

        
          77

          
            

          

        

        
          
          

        

      

       LETTER
        OF AGREEMENT #4

      Between

      REPUBLIC
        AIRWAYS HOLDINGS, INC.,

      AND
        ITS SUBSIDIARIES

      CHAUTAUQUA
        AIRLINES, INC.,

      REPUBLIC
        AIRLINES, INC.,

      AND

      SHUTTLE
        AMERICA, INC.

      AND

      THE
        FLIGHT ATTENDANTS
        in the service of CHAUTAUQUA AIRLINES, INC., REPUBLIC
        AIRLINES, INC., AND SHUTTLE AMERICA, INC.

      As
        represented by the

      INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS

      

      
        	
                GLT
                  LINE SELECTION AND
                  BENEFITS

              

      

      

      THIS
        LETTER OF AGREEMENT
        is made
        and entered into accordance with the provisions of the Railway Labor Act,
        as
        amended, by and among REPUBLIC AIRWAYS HOLDINGS, INC., and its subsidiaries
        CHAUTAUQUA AIRLINES, INC., REPUBLIC AIRLINES, INC. and SHUTTLE AMERICA, INC.
        (hereinafter collectively referred to as the “Company”) and the Flight
        Attendants in the service of the Company, as represented by the INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS
        (hereinafter referred to as the “Union”).

      

      1.
        Flight
        Attendants who are participants in the Job Share program on the date of the
        implementation of GLT line bidding as provided in Article 6 of the Agreement
        shall be “grandfathered” as GLT line holders, subject to the right to bid out of
        that status as provided in Article 6. 

      

      2.
        Flight
        Attendants who wish to become GLT lineholders after the date of the
        implementation of GLT line bidding may submit written bids to Crewplanning.
        Subject to the limitations set out in Article 6, available GLT positions
        will be
        awarded in seniority order of the bids on file at the time the positions
        become
        available. 

      

      3.
        GLT
        Flight Attendants shall accrue vacation and sick leave at 1⁄2 the rate of
        full-time Flight Attendants. 

      

      4.
        GLT
        Flight Attendants shall be eligible for flight benefits on the same basis
        as
        full-time Flight Attendants. 

      

      5.
        GLT
        Flight Attendants shall be eligible for moving expense reimbursement pursuant
        to
        Article 5 of the Agreement at 1⁄2 the rate of full-time Flight Attendants.

      

      6.
        GLT
        Flight Attendants shall be eligible for 401k benefits if they work 450 flight
        hours or more per year. 

      

      7.
        GLT
        Flight Attendants will be eligible for Company paid Medical, Dental and Life
        Insurance benefits on the same basis and to the same extent as other Flight
        Attendants provided, that in the prior 12 months, a GLT Flight Attendant
        has
        accrued at least 720 credit hours. If she has not accrued the requisite number
        of hours in the prior 12 months she may elect Health and Welfare benefits
        by
        paying 2X the normal employee contribution for either single, couple or family
        coverage each month she is in the GLT program. Upon leaving the GLT program
        and
        resuming a regular Flight Attendant position, she will revert to the regular
        employee contribution rate. 

       

       
        

      
        In
          Witness whereof, the parties hereto have signed this letter of Agreement
          this 1st day of September, 2005.

         

        
          	 For Republic Airways Holding,
                  Inc.      	                 
                  For the International Brotherhood of Teamsters
                  Local
                  135

        

                                                                                                                                                                                                                                   

        
          	 	 	 	 
	/s/ Bryan
                  Bedford	 	 	/s/ Barry
                  D. Schimmel
	
                  

                	 	 	
                  

                
	Name:
                  Bryan Bedford
Title: President and Chief Executive
                  Officer
	 	 	Name:
                  Barry D, Schimmel
Title: Business Representative IBT Local
                  135

        

          

        
          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        
          	 	 	 	 
	/s/ Amy
                  Chiappe	 	 	/s/ Ronald
                  L. Hall
	
                  

                	 	 	
                  

                
	Name:
                  Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                  Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                  135

        

              

          
            	 	 	 	 
	 	 	 	/s/ Lisa
                    Paterini
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Lisa Paterini
Title: Negotiating Committee
                    Member

          
 

          
            	 	 	 	 
	 	 	 	/s/ Ryan
                    Lee
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Ryan Lee
Title: Negotiatin Committee
                    Member

          

          
            	 	 	 	
                     

                     

                  
	 	 	 	/s/ Nicole
                    Zimmer
	
                  	 	 	
                    

                  
	
                  	 	 	Name:Nicole
                    Zimmer
Title: Negotiating Committee
                    Member

          
                                                             

      

      
 

      

      

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

      

      

 

      LETTER
        OF AGREEMENT #5

      Between

      REPUBLIC
        AIRWAYS HOLDINGS, INC.,

      AND
        ITS SUBSIDIARIES

      CHAUTAUQUA
        AIRLINES, INC.,

      REPUBLIC
        AIRLINES, INC.,

      AND

      SHUTTLE
        AMERICA, INC.

      AND

      THE
        FLIGHT ATTENDANTS
        in the service of CHAUTAUQUA AIRLINES, INC., REPUBLIC
        AIRLINES, INC., AND SHUTTLE AMERICA, INC.

      As
        represented by the

      INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS

      

      
        	
                PAY
                  SCALE ADVANCE

              

      

      

      THIS
        LETTER OF AGREEMENT
        is made
        and entered into accordance with the provisions of the Railway Labor Act,
        as
        amended, by and among REPUBLIC AIRWAYS HOLDINGS, INC., and its subsidiaries
        CHAUTAUQUA AIRLINES, INC., REPUBLIC AIRLINES, INC. and SHUTTLE AMERICA, INC.
        (hereinafter collectively referred to as the “Company”) and the Flight
        Attendants in the service of the Company, as represented by the INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS
        (hereinafter referred to as the “Union”).

      

      Each
        Flight Attendant in the service of the Company who has one year or more of
        longevity on September 1, 2005 and whose seniority date is after February
        1,
        1999, shall on September 1, 2005 be advanced one step on the
        pay scale
        set out in Article 3 of the Agreement, and thereafter progress on her successive
        anniversary date(s) from that point. (see examples below)

      

      

        
          	
                  Current
                    wage

                	
                  Longevity

                	
                   

                  9/1/05

                	
                   

                  9/1/06

                  2.5%

                	
                  9/1/07

                  2.5%

                	
                  9/1/08

                  2.0%

                	
                  8/31/09

                  2.0%

                
	
                  $15.13

                	
                  0-6
                    mo

                	
                  $16.00

                	
                  $16.40

                	
                  $16.81

                	
                  $17.15

                	
                  $17.49

                
	
                  $16.15

                	
                  7-12
                    mo

                	
                  $17.00

                	
                  $17.43

                	
                  $17.86

                	
                  $18.22

                	
                  $18.58

                
	
                  $17.77

                	
                  2

                	
                  $18.02

                	
                  $18.47

                	
                  $18.93

                	
                  $19.31

                	
                  $19.70

                
	
                  $19.06

                	
                  3

                	
                  $19.31

                	
                  $19.79

                	
                  $20.29

                	
                  $20.69

                	
                  $21.11

                
	
                  $20.24

                	
                  4

                	
                  $20.49

                	
                  $21.00

                	
                  $21.53

                	
                  $21.96

                	
                  $22.40

                
	
                  $21.44

                	
                  5

                	
                  $21.69

                	
                  $22.23

                	
                  $22.79

                	
                  $23.24

                	
                  $23.71

                
	
                  $22.39

                	
                  6

                	
                  $22.85

                	
                  $23.42

                	
                  $24.01

                	
                  $24.49

                	
                  $24.98

                
	
                  $23.30

                	
                  7

                	
                  $24.05

                	
                  $24.65

                	
                  $25.27

                	
                  $25.77

                	
                  $26.29

                
	
                  $24.16

                	
                  8

                	
                  $24.41

                	
                  $25.02

                	
                  $25.65

                	
                  $26.16

                	
                  $26.68

                
	
                  $24.87

                	
                  9

                	
                  $25.12

                	
                  $25.75

                	
                  $26.39

                	
                  $26.92

                	
                  $27.46

                
	
                  $25.60

                	
                  10

                	
                  $25.85

                	
                  $26.50

                	
                  $27.16

                	
                  $27.70

                	
                  $28.26

                
	
                  $25.60

                	
                  11

                	
                  $26.75

                	
                  $27.42

                	
                  $28.10

                	
                  $28.67

                	
                  $29.24

                
	
                  $25.60

                	
                  12

                	
                  $27.70

                	
                  $28.39

                	
                  $29.10

                	
                  $29.68

                	
                  $30.28

                
	
                  $25.60

                	
                  13

                	
                  $28.12

                	
                  $28.82

                	
                  $29.54

                	
                  $30.13

                	
                  $30.74

                
	
                  $25.60

                	
                  14

                	
                  $28.52

                	
                  $29.23

                	
                  $29.96

                	
                  $30.56

                	
                  $31.17

                
	
                  $25.60

                	
                  15

                	
                  $30.25

                	
                  $31.01

                	
                  $31.78

                	
                  $32.42

                	
                  $33.07

                

        

      

        

          
            	
                    Current
                      wage

                  	
                    Longevity

                  	
                     

                    9/1/05

                  	
                     

                    9/1/06

                    2.5%

                  	
                    9/1/07

                    2.5%

                  	
                    9/1/08

                    2.0%

                  	
                    8/31/09

                    2.0%

                  
	
                    $15.13

                  	
                    0-6
                      mo

                  	
                    $16.00

                  	
                    $16.40

                  	
                    $16.81

                  	
                    $17.15

                  	
                    $17.49

                  
	
                    $16.15

                  	
                    7-12
                      mo

                  	
                    $17.00

                  	
                    $17.43

                  	
                    $17.86

                  	
                    $18.22

                  	
                    $18.58

                  
	
                    $17.77

                  	
                    2

                  	
                    $18.02

                  	
                    $18.47

                  	
                    $18.93

                  	
                    $19.31

                  	
                    $19.70

                  
	
                    $19.06

                  	
                    3

                  	
                    $19.31

                  	
                    $19.79

                  	
                    $20.29

                  	
                    $20.69

                  	
                    $21.11

                  
	
                    $20.24

                  	
                    4

                  	
                    $20.49

                  	
                    $21.00

                  	
                    $21.53

                  	
                    $21.96

                  	
                    $22.40

                  
	
                    $21.44

                  	
                    5

                  	
                    $21.69

                  	
                    $22.23

                  	
                    $22.79

                  	
                    $23.24

                  	
                    $23.71

                  
	
                    $22.39

                  	
                    6

                  	
                    $22.85

                  	
                    $23.42

                  	
                    $24.01

                  	
                    $24.49

                  	
                    $24.98

                  
	
                    $23.30

                  	
                    7

                  	
                    $24.05

                  	
                    $24.65

                  	
                    $25.27

                  	
                    $25.77

                  	
                    $26.29

                  
	
                    $24.16

                  	
                    8

                  	
                    $24.41

                  	
                    $25.02

                  	
                    $25.65

                  	
                    $26.16

                  	
                    $26.68

                  
	
                    $24.87

                  	
                    9

                  	
                    $25.12

                  	
                    $25.75

                  	
                    $26.39

                  	
                    $26.92

                  	
                    $27.46

                  
	
                    $25.60

                  	
                    10

                  	
                    $25.85

                  	
                    $26.50

                  	
                    $27.16

                  	
                    $27.70

                  	
                    $28.26

                  
	
                    $25.60

                  	
                    11

                  	
                    $26.75

                  	
                    $27.42

                  	
                    $28.10

                  	
                    $28.67

                  	
                    $29.24

                  
	
                    $25.60

                  	
                    12

                  	
                    $27.70

                  	
                    $28.39

                  	
                    $29.10

                  	
                    $29.68

                  	
                    $30.28

                  
	
                    $25.60

                  	
                    13

                  	
                    $28.12

                  	
                    $28.82

                  	
                    $29.54

                  	
                    $30.13

                  	
                    $30.74

                  
	
                    $25.60

                  	
                    14

                  	
                    $28.52

                  	
                    $29.23

                  	
                    $29.96

                  	
                    $30.56

                  	
                    $31.17

                  
	
                    $25.60

                  	
                    15

                  	
                    $30.25

                  	
                    $31.01

                  	
                    $31.78

                  	
                    $32.42

                  	
                    $33.07

                  

          

      

       

      

      
 

       

      

      

      

      

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

      

      Each
        Flight Attendant in the service of the Company on September 1st whose
        seniority date is on or before February 1, 1999, shall on September
        1,
        2005 be advanced five steps on the pay scale set out in Article 3
        of the
        Agreement, and thereafter progress on her successive anniversary date(s)
        from
        that point. (See examples below)

      
        
          	
                  Current
                    wage

                	
                  Longevity

                	
                  9/1/05

                	
                  9/1/06

                  2.5%

                	
                  9/1/07

                  2.5%

                	
                  9/1/08

                  2.0%

                	
                  8/31/09

                  2.0%

                
	
                  $15.27

                	
                  0-6
                    mo

                	
                  $16.00

                	
                  $16.40

                	
                  $16.81

                	
                  $17.15

                	
                  $17.49

                
	
                  $16.31

                	
                  7-12
                    mo

                	
                  $17.00

                	
                  $17.43

                	
                  $17.86

                	
                  $18.22

                	
                  $18.58

                
	
                  $18.38

                	
                  2

                	
                  $18.02

                	
                  $18.47

                	
                  $18.93

                	
                  $19.31

                	
                  $19.70

                
	
                  $20.25

                	
                  3

                	
                  $19.31

                	
                  $19.79

                	
                  $20.29

                	
                  $20.69

                	
                  $21.11

                
	
                  $21.53

                	
                  4

                	
                  $20.49

                	
                  $21.00

                	
                  $21.53

                	
                  $21.96

                	
                  $22.40

                
	
                  $24.40

                	
                  5

                	
                  $21.69

                	
                  $22.23

                	
                  $22.79

                	
                  $23.24

                	
                  $23.71

                
	
                  $25.82

                	
                  6

                	
                  $22.85

                	
                  $23.42

                	
                  $24.01

                	
                  $24.49

                	
                  $24.98

                
	
                  $26.50

                	
                  7

                	
                  $24.05

                	
                  $24.65

                	
                  $25.27

                	
                  $25.77

                	
                  $26.29

                
	
                  $27.45

                	
                  8

                	
                  $24.41

                	
                  $25.02

                	
                  $25.65

                	
                  $26.16

                	
                  $26.68

                
	
                  $27.87

                	
                  9

                	
                  $25.12

                	
                  $25.75

                	
                  $26.39

                	
                  $26.92

                	
                  $27.46

                
	
                  $28.27

                	
                  10

                	
                  $25.85

                	
                  $26.50

                	
                  $27.16

                	
                  $27.70

                	
                  $28.26

                
	
                  $28.27

                	
                  11

                	
                  $26.75

                	
                  $27.42

                	
                  $28.10

                	
                  $28.67

                	
                  $29.24

                
	
                  $28.27

                	
                  12

                	
                  $27.70

                	
                  $28.39

                	
                  $29.10

                	
                  $29.68

                	
                  $30.28

                
	
                  $28.27

                	
                  13

                	
                  $28.12

                	
                  $28.82

                	
                  $29.54

                	
                  $30.13

                	
                  $30.74

                
	
                  $28.27

                	
                  14

                	
                  $28.52

                	
                  $29.23

                	
                  $29.96

                	
                  $30.56

                	
                  $31.17

                
	
                  $28.27

                	
                  15

                	
                  $30.25

                	
                  $31.01

                	
                  $31.78

                	
                  $32.42

                	
                  $33.07

                
	
                   

                	
                   

                	
                  $30.75

                	
                  31.51

                	
                  32.28

                	
                  32.92

                	
                  33.57

                
	
                   

                	
                   

                	
                   

                	
                  32.01

                	
                  32.78

                	
                  33.42

                	
                  34.07

                
	
                   

                	
                   

                	
                  33.28

                	
                  33.92

                	
                  34.57

                

        

      

        
          	
                  Current
                    wage

                	
                  Longevity

                	
                  9/1/05

                	
                  9/1/06

                  2.5%

                	
                  9/1/07

                  2.5%

                	
                  9/1/08

                  2.0%

                	
                  8/31/09

                  2.0%

                
	
                  $15.27

                	
                  0-6
                    mo

                	
                  $16.00

                	
                  $16.40

                	
                  $16.81

                	
                  $17.15

                	
                  $17.49

                
	
                  $16.31

                	
                  7-12
                    mo

                	
                  $17.00

                	
                  $17.43

                	
                  $17.86

                	
                  $18.22

                	
                  $18.58

                
	
                  $18.38

                	
                  2

                	
                  $18.02

                	
                  $18.47

                	
                  $18.93

                	
                  $19.31

                	
                  $19.70

                
	
                  $20.25

                	
                  3

                	
                  $19.31

                	
                  $19.79

                	
                  $20.29

                	
                  $20.69

                	
                  $21.11

                
	
                  $21.53

                	
                  4

                	
                  $20.49

                	
                  $21.00

                	
                  $21.53

                	
                  $21.96

                	
                  $22.40

                
	
                  $24.40

                	
                  5

                	
                  $21.69

                	
                  $22.23

                	
                  $22.79

                	
                  $23.24

                	
                  $23.71

                
	
                  $25.82

                	
                  6

                	
                  $22.85

                	
                  $23.42

                	
                  $24.01

                	
                  $24.49

                	
                  $24.98

                
	
                  $26.50

                	
                  7

                	
                  $24.05

                	
                  $24.65

                	
                  $25.27

                	
                  $25.77

                	
                  $26.29

                
	
                  $27.45

                	
                  8

                	
                  $24.41

                	
                  $25.02

                	
                  $25.65

                	
                  $26.16

                	
                  $26.68

                
	
                  $27.87

                	
                  9

                	
                  $25.12

                	
                  $25.75

                	
                  $26.39

                	
                  $26.92

                	
                  $27.46

                
	
                  $28.27

                	
                  10

                	
                  $25.85

                	
                  $26.50

                	
                  $27.16

                	
                  $27.70

                	
                  $28.26

                
	
                  $28.27

                	
                  11

                	
                  $26.75

                	
                  $27.42

                	
                  $28.10

                	
                  $28.67

                	
                  $29.24

                
	
                  $28.27

                	
                  12

                	
                  $27.70

                	
                  $28.39

                	
                  $29.10

                	
                  $29.68

                	
                  $30.28

                
	
                  $28.27

                	
                  13

                	
                  $28.12

                	
                  $28.82

                	
                  $29.54

                	
                  $30.13

                	
                  $30.74

                
	
                  $28.27

                	
                  14

                	
                  $28.52

                	
                  $29.23

                	
                  $29.96

                	
                  $30.56

                	
                  $31.17

                
	
                  $28.27

                	
                  15

                	
                  $30.25

                	
                  $31.01

                	
                  $31.78

                	
                  $32.42

                	
                  $33.07

                
	
                   

                	
                  +

                	
                  $30.75

                	
                  31.51

                	
                  32.28

                	
                  32.92

                	
                  33.57

                
	
                   

                	
                   

                	
                   

                	
                  32.01

                	
                  32.78

                	
                  33.42

                	
                  34.07

                
	
                   

                	
                   

                	
                  33.28

                	
                  33.92

                	
                  34.57

                
	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                  34.42

                	
                  35.07

                
	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                  35.57

                

        

      

      
 

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

       
        
        In
          Witness whereof, the parties hereto have signed this letter of Agreement
          this 1st day of September, 2005.

         

        
          	 For Republic Airways Holding,
                  Inc.  	                       For
                  the International Brotherhood of Teamsters Local
                  135

        

        
                                                                                                                                              

        

        
          	 	 	 	 
	/s/ Bryan
                  Bedford	 	 	/s/ Barry
                  D. Schimmel
	
                  

                	 	 	
                  

                
	Name:
                  Bryan Bedford
Title: President and Chief Executive
                  Officer
	 	 	Name:
                  Barry D, Schimmel
Title: Business Representative IBT Local
                  135

        

          

        
          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        
          	 	 	 	 
	/s/ Amy
                  Chiappe	 	 	/s/ Ronald
                  L. Hall
	
                  

                	 	 	
                  

                
	Name:
                  Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                  Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                  135

        

               

        
          
            	 	 	 	 
	 	 	 	/s/ Lisa
                    Paterini
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Lisa Paterini
Title: Negotiating Committee
                    Member

          
 

          
            	 	 	 	 
	 	 	 	/s/ Ryan
                    Lee
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Ryan Lee
Title: Negotiatin Committee
                    Member

          

          
            	 	 	 	 
	 	 	 	/s/ Nicole
                    Zimmer
	
                  	 	 	
                    

                  
	
                  	 	 	Name:Nicole
                    Zimmer
Title: Negotiating Committee
                    Member

          
                                                             

      

      
        
          
          

        

        
          81

          
            

          

        

        
          
          

          
             

          

        

      

      LETTER
        OF AGREEMENT #6

      Between

      REPUBLIC
        AIRWAYS HOLDINGS, INC.,

      AND
        ITS SUBSIDIARIES

      CHAUTAUQUA
        AIRLINES, INC.,

      REPUBLIC
        AIRLINES, INC.,

      AND

      SHUTTLE
        AMERICA, INC.

      AND

      THE
        FLIGHT ATTENDANTS
        in the service of CHAUTAUQUA AIRLINES, INC., REPUBLIC
        AIRLINES, INC., AND SHUTTLE AMERICA, INC.

      As
        represented by the

      INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS

      

      
        	
                RETROACTIVE
                  PAY

              

      

      

      THIS
        LETTER OF AGREEMENT
        is made
        and entered into accordance with the provisions of the Railway Labor Act,
        as
        amended, by and among REPUBLIC AIRWAYS HOLDINGS, INC., and its subsidiaries
        CHAUTAUQUA AIRLINES, INC., REPUBLIC AIRLINES, INC. and SHUTTLE AMERICA, INC.
        (hereinafter collectively referred to as the “Company”) and the Flight
        Attendants in the service of the Company, as represented by the INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS
        (hereinafter referred to as the “Union”).

      

      Each
        Flight Attendant in the service of the Company on September 1, 2005 shall
        receive retroactive pay as follows: 4% of the individual Flight Attendant’s
        gross earnings from 3/9/2003 or their Date of Hire, whichever is later, until
        September 1, 2005. The Company will deduct taxes at the supplemental rate
        of 25%
        as required by the IRS. Further, prior to distribution, Flight Attendants
        may
        elect to allocate all or any part of their retroactive pay to their 401(k)
        account in accordance with the plan provisions.

      

      Such
        payments shall be made to eligible Flight Attendants within 30 days after
        date
        of signing.

       

      
        In
          Witness whereof, the parties hereto have signed this letter of Agreement
          this 1st day of September, 2005.

         

        
          	 For Republic Airways Holding,
                  Inc.   	                 
                  For the International Brotherhood of Teamsters
                  Local
                  135

        

        
                                                                                                                                              
            

        

        
          	 	 	 	 
	/s/ Bryan
                  Bedford	 	 	/s/ Barry
                  D. Schimmel
	
                  

                	 	 	
                  

                
	Name:
                  Bryan Bedford
Title: President and Chief Executive
                  Officer
	 	 	Name:
                  Barry D, Schimmel
Title: Business Representative IBT Local
                  135

        

          

        
          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        
          	 	 	 	 
	/s/ Amy
                  Chiappe	 	 	/s/ Ronald
                  L. Hall
	
                  

                	 	 	
                  

                
	Name:
                  Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                  Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                  135

        

             

        
          
            	 	 	 	 
	 	 	 	/s/ Lisa
                    Paterini
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Lisa Paterini
Title: Negotiating Committee
                    Member

          
 

          
            	 	 	 	 
	 	 	 	/s/ Ryan
                    Lee
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Ryan Lee
Title: Negotiatin Committee
                    Member

          

          
            	 	 	 	
                     

                     

                  
	 	 	 	/s/ Nicole
                    Zimmer
	
                  	 	 	
                    

                  
	
                  	 	 	Name:Nicole
                    Zimmer
Title: Negotiating Committee
                    Member

          

        

      

      

       

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

       

       

       

      LETTER
        OF AGREEMENT #7

      Between

      REPUBLIC
        AIRWAYS HOLDINGS, INC.,

      AND
        ITS SUBSIDIARIES

      CHAUTAUQUA
        AIRLINES, INC.,

      REPUBLIC
        AIRLINES, INC.,

      AND

      SHUTTLE
        AMERICA, INC.

      AND

      THE
        FLIGHT ATTENDANTS
        in the service of CHAUTAUQUA AIRLINES, INC., REPUBLIC
        AIRLINES, INC., AND SHUTTLE AMERICA, INC.

      As
        represented by the

      INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS

      

      
        	
                IMPLEMENTATION

              

      

      

      THIS
        LETTER OF AGREEMENT
        is made
        and entered into accordance with the provisions of the Railway Labor Act,
        as
        amended, by and among REPUBLIC AIRWAYS HOLDINGS, INC., and its subsidiaries
        CHAUTAUQUA AIRLINES, INC., REPUBLIC AIRLINES, INC. and SHUTTLE AMERICA, INC.
        (hereinafter collectively referred to as the “Company”) and the Flight
        Attendants in the service of the Company, as represented by the INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS
        (hereinafter referred to as the “Union”).

      

      In
        the
        course of negotiations leading to the completion of the Collective Bargaining
        Agreement effective September 01, 2005, the parties agreed that as a part
        of the
        implementation thereof they would investigate the possibility of PBS
        implementation of Buddy Bidding, waiving 30 in 7 restrictions and Flight
        Attendants choosing to waive minimum 2-day-off blocks in the bidding process.
        Any or all of these provisions that can be implemented through PBS without
        causing the Company to incur other than nominal cost will be
        implemented.

       
        

      
        In
          Witness whereof, the parties hereto have signed this letter of Agreement
          this 1st day of September, 2005.

         

        
          	 For Republic Airways Holding,
                  Inc.  	                 
                  For the International Brotherhood of Teamsters
                  Local
                  135

        

        
                                                                                                                                              
            

        

        
          	 	 	 	 
	/s/ Bryan
                  Bedford	 	 	/s/ Barry
                  D. Schimmel
	
                  

                	 	 	
                  

                
	Name:
                  Bryan Bedford
Title: President and Chief Executive
                  Officer
	 	 	Name:
                  Barry D, Schimmel
Title: Business Representative IBT Local
                  135

        

          

        
          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        
          	 	 	 	 
	/s/ Amy
                  Chiappe	 	 	/s/ Ronald
                  L. Hall
	
                  

                	 	 	
                  

                
	Name:
                  Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                  Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                  135

        

               

        
          
            	 	 	 	 
	 	 	 	/s/ Lisa
                    Paterini
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Lisa Paterini
Title: Negotiating Committee
                    Member

          
 

          
            	 	 	 	 
	 	 	 	/s/ Ryan
                    Lee
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Ryan Lee
Title: Negotiatin Committee
                    Member

          

          
            	 	 	 	
                     

                     

                  
	 	 	 	/s/ Nicole
                    Zimmer
	
                  	 	 	
                    

                  
	
                  	 	 	Name:Nicole
                    Zimmer
Title: Negotiating Committee
                    Member

          
                                                             

      

      

      

       

      

       

      

       

      
        
          
          

        

        
          83

          
            

          

        

        
          
          

          
             

          

        

      

      Letter
        of Agreement #8

      Between

      CHAUTAUQUA
        AIRLINES, INC.

      And

      THE
        INTERNATIONAL BROTHERHOOD of TEAMSTERS

      Regarding

      Employment
        Opportunities

      

      WHEREAS,
        the
        parties desire to provide the opportunity for employees of other departments
        at
        Chautauqua Airlines, Inc. to become Flight Attendants;

      

      NOW
        THEREFORE,
        the
        parties hereby agree as follows:

      

      
        	A.
                  	
                When
                  the company is hiring Flight Attendants, and employee(s) from other
                  departments express a desire to become a Flight Attendant, the
                  company
                  will review the employee’s application/request and upon an offer and
                  acceptance to become a Flight Attendant the company will schedule
                  her into
                  the next training class. She will be placed at the top of that
                  class’
                  craft seniority list. Her Flight Attendant craft seniority will
                  be greater
                  than those Flight Attendants, in her class, hired from the
                  street.

              

      

      

      
        	B.
                  	
                In
                  the event that more than one employee is accepted per training
                  session the
                  employee with the most company seniority will be the most senior
                  and the
                  employee with the second most company seniority will be the next
                  most
                  senior and so on. In the event of a tie, determination will be
                  in
                  accordance with Article 9-1 A. of the IBT/CHQ F/A Collective Bargaining
                  Agreement. 

              

      

      

      
        	C.
                  	
                In
                  the event the company cannot immediately release the employee from
                  her
                  existing position she will be granted a craft seniority date commensurate
                  with the training class she would have
                  attended.

              

      

      

      
        	D.
                  	
                In
                  the event of a dispute over an employee’s seniority entitlement under this
                  letter of agreement, the parties agree to meet to expeditiously
                  resolve
                  the matter.

              

      

       
        
        Agreed
          this 1st day of September, 2005.

         

        
          	 For Chautauqua Airlines,
                  Inc.    	                 
                  For the International Brotherhood of Teamsters
                  Local
                  135

        

        
                                                                                                                                              

        

        
          	 	 	 	 
	/s/ Bryan
                  Bedford	 	 	/s/ Barry
                  D. Schimmel
	
                  

                	 	 	
                  

                
	Name:
                  Bryan Bedford
Title: President and Chief Executive
                  Officer
	 	 	Name:
                  Barry D, Schimmel
Title: Business Representative IBT Local
                  135

        

          

        
          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        
          	 	 	 	 
	/s/ Amy
                  Chiappe	 	 	/s/ Ronald
                  L. Hall
	
                  

                	 	 	
                  

                
	Name:
                  Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                  Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                  135

        

               

        
          
            	 	 	 	 
	 	 	 	/s/ Lisa
                    Paterini
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Lisa Paterini
Title: Negotiating Committee
                    Member

          
 

          
            	 	 	 	 
	 	 	 	/s/ Ryan
                    Lee
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Ryan Lee
Title: Negotiatin Committee
                    Member

          

          
            	 	 	 	
                     

                     

                  
	 	 	 	/s/ Nicole
                    Zimmer
	
                  	 	 	
                    

                  
	
                  	 	 	Name:Nicole
                    Zimmer
Title: Negotiating Committee
                    Member

          
                                                             

      

      

      
        
          
          

        

        
          84

          
            

          

        

        
          
          

          
             

          

        

      

       LETTER
        OF AGREEMENT #9

      Between

      REPUBLIC
        AIRWAYS HOLDINGS, INC.,

      AND
        ITS SUBSIDIARIES

      CHAUTAUQUA
        AIRLINES, INC.,

      REPUBLIC
        AIRLINES, INC.,

      AND

      SHUTTLE
        AMERICA, INC.

      AND

      THE
        FLIGHT ATTENDANTS
        in the service of CHAUTAUQUA AIRLINES, INC., REPUBLIC
        AIRLINES, INC., AND SHUTTLE AMERICA, INC.

      As
        represented by the

      INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS

      

      
        	
                UNION
                  HEALTH AND WELFARE

              

      

      

      THIS
        LETTER OF AGREEMENT
        is made
        and entered into accordance with the provisions of the Railway Labor Act,
        as
        amended, by and among REPUBLIC AIRWAYS HOLDINGS, INC., and its subsidiaries
        CHAUTAUQUA AIRLINES, INC., REPUBLIC AIRLINES, INC. and SHUTTLE AMERICA, INC.
        (hereinafter collectively referred to as the “Company”; each individually an
“entity”) and the Flight Attendants in the service of the Company, as
        represented by the INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS
        (hereinafter referred to as the “Union”).

      

      WHEREAS
        the Company and the Union have entered into a collective bargaining agreement
        with provisions for life, health and dental insurance, and

      

      WHEREAS
        the Company and the Union mutually desire that such insurance be provided
        at
        cost-effective rates for both the Company and Flight Attendants,

      

      NOW,
        THEREFORE, the Company and the Union agree as follows:

      

      1.
         The
        Company agrees to entertain a proposal from the Union to transfer the employees’
        health and welfare coverage to a Teamster sponsored health and welfare
        plan.

      

      2. The
        Company agrees to provide information identified by a Teamster-sponsored
        plan as
        necessary to formulate a proposal for coverage of the bargaining unit (or,
        by
        mutual agreement, on a Company-wide basis). 

      

      3. The
        Company will not unreasonably withhold agreement to transfer health and welfare
        coverage to a Teamster-sponsored plan if transfer to a Teamster-sponsored
        plan
        will result in lower premium cost or improved benefits at the same or similar
        per participant costs to the Company,

       
        

      
        In
          Witness whereof, the parties hereto have signed this letter of Agreement
          this 1st day of September, 2005.

         

        
          	 For Republic Airways Holding,
                  Inc.   	                 
                  For the International Brotherhood of Teamsters
                  Local
                  135

        

        
                                                                                                                                              
            

        

        
          	 	 	 	 
	/s/ Bryan
                  Bedford	 	 	/s/ Barry
                  D. Schimmel
	
                  

                	 	 	
                  

                
	Name:
                  Bryan Bedford
Title: President and Chief Executive
                  Officer
	 	 	Name:
                  Barry D, Schimmel
Title: Business Representative IBT Local
                  135

        

          

        
          
            	 	 	 	 
	/s/ Wayne
                    Heller	 	 	/s/ Victoria
                    Gray
	
                    

                  	 	 	
                    

                  
	Name:
                    Wayne Heller
Title: Executive Vice President
More Title: Chief
                    Operating Officer	 	 	Name:
                    Victoria Gray
Title: International
                    Representative

          

        
          	 	 	 	 
	/s/ Amy
                  Chiappe	 	 	/s/ Ronald
                  L. Hall
	
                  

                	 	 	
                  

                
	Name:
                  Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                  Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                  135

        

               

        
          
            	 	 	 	 
	 	 	 	/s/ Lisa
                    Paterini
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Lisa Paterini
Title: Negotiating Committee
                    Member

          
 

          
            	 	 	 	 
	 	 	 	/s/ Ryan
                    Lee
	
                  	 	 	
                    

                  
	
                  	 	 	Name:
                    Ryan Lee
Title: Negotiatin Committee
                    Member

          

          
            	 	 	 	 
	 	 	 	/s/ Nicole
                    Zimmer
	
                  	 	 	
                    

                  
	
                  	 	 	Name:Nicole
                    Zimmer
Title: Negotiating Committee
                    Member

          
                                                             

      

      

      
        
          
          

        

        
          85

          
            

          

        

        
          
          

          
             

          

        

      

      LETTER
        OF AGREEMENT #10

      Between

      REPUBLIC
        AIRWAYS HOLDINGS, INC.,

      AND
        ITS SUBSIDIARIES 

      CHAUTAUQUA
        AIRLINES, INC.,

      REPUBLIC
        AIRLINES, INC.,

      AND

      SHUTTLE
        AMERICA, INC.

      AND

      THE
        FLIGHT ATTENDANTS
        in the service of CHAUTAUQUA AIRLINES, INC., REPUBLIC
        AIRLINES, INC., AND SHUTTLE AMERICA, INC.

      As
        represented by the

      INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS

      

      
        	
                SHUTTLE
                  AMERICA INTEGRATION

              

      

      

      THIS
        LETTER OF AGREEMENT
        is made
        and entered into accordance with the provisions of the Railway Labor Act,
        as
        amended, by and among REPUBLIC AIRWAYS HOLDINGS, INC., and its subsidiaries
        CHAUTAUQUA AIRLINES, INC., REPUBLIC AIRLINES, INC. and SHUTTLE AMERICA, INC.
        (collectively, the “Company”), and the Flight Attendants in the service of the
        Company, as represented by the INTERNATIONAL
        BROTHERHOOD OF TEAMSTERS
        (hereinafter referred to as the “Union”).

       

      WHEREAS
        Shuttle America, Inc. (“Shuttle”) has been acquired by, and is being operated as
        a subsidiary of, Republic Airways Holdings, Inc. (“Holdings”), and

       

      WHEREAS
        the Chautauqua/IBT collective bargaining agreement (“Agreement”) provides that
        the Agreement is to be applied to Shuttle, as a subsidiary of Holdings,
        and

       

      WHEREAS,
        it is necessary for the Company and the Union to make provisions for the
        integration of the Shuttle Flight Attendants into the Company’s operation, as
        well as for the integration of the Chautauqua and Shuttle Flight Attendant
        seniority lists,

       

      NOW,
        THEREFORE, the parties hereby agree as follows: 

       

      1. The
        Shuttle SF-340 aircraft shall continue to be operated separately from other
        Company operations, and SF-340 Flight Attendants shall continue to be subject
        to
        existing Shuttle work rules and rates of pay, until the earlier of March
        1,
        2006, or until they cease to be operated in Company service.

       

      2. Flight
        Attendants in the Shuttle EMB-170 operation shall be subject to the work
        rules
        and rates of pay as set out in the Agreement.

       

      3. Shuttle
        Flight Attendants shall be integrated into the Chautauqua seniority list
        by date
        of hire; provided, however, that for one year from September 1, 2005, such
        Flight Attendants may exercise their seniority only within the Shuttle
        operation. After such one year period, they may exercise their full seniority
        list seniority for all purposes under the Agreement on the same basis as
        any
        other Flight Attendant on the Chautauqua Flight Attendant seniority
        list.

       
        

       

      In
        Witness whereof, the parties hereto have signed this letter of Agreement
        this 1st day of September, 2005.

       

      
        	 For Republic Airways Holding,
                Inc.   	                 
                For the International Brotherhood of Teamsters Local
                135

      

      
                                                                                                                                            
          

      

      
        	 	 	 	 
	/s/ Bryan
                Bedford	 	 	/s/ Barry
                D. Schimmel
	
                

              	 	 	
                

              
	Name:
                Bryan Bedford
Title: President and Chief Executive
                Officer
	 	 	Name:
                Barry D, Schimmel
Title: Business Representative IBT Local
                135

      

        

      
        
          	 	 	 	 
	/s/ Wayne
                  Heller	 	 	/s/ Victoria
                  Gray
	
                  

                	 	 	
                  

                
	Name:
                  Wayne Heller
Title: Executive Vice President
More Title: Chief
                  Operating Officer	 	 	Name:
                  Victoria Gray
Title: International
                  Representative

        

      
        	 	 	 	 
	/s/ Amy
                Chiappe	 	 	/s/ Ronald
                L. Hall
	
                

              	 	 	
                

              
	Name:
                Amy Chiappe
Title: Director of Inflight
	 	 	Name:
                Ronald L. Hall
Title: Secretary-Treasurer IBT Local
                135

      

           

      
        
          	 	 	 	 
	 	 	 	/s/ Lisa
                  Paterini
	
                	 	 	
                  

                
	
                	 	 	Name:
                  Lisa Paterini
Title: Negotiating Committee
                  Member

        
 

        
          	 	 	 	 
	 	 	 	/s/ Ryan
                  Lee
	
                	 	 	
                  

                
	
                	 	 	Name:
                  Ryan Lee
Title: Negotiatin Committee
                  Member

        

        
          	 	 	 	 
	 	 	 	/s/ Nicole
                  Zimmer
	
                	 	 	
                  

                
	
                	 	 	Name:Nicole
                  Zimmer
Title: Negotiating Committee
                  Member

        
                                                             

      
        
          
          

        

        
          86

          
            

          

        

        
          
          

        

      

      
        
          

        

      

      Appendix
        A

        87

        

        
          	
                  AmericanConn.

                	
                  Avg
                    Block

                	 	
                  DeltaConn

                	
                  Avg
                    Block

                	 	
                  USExp

                	
                  Avg
                    Block

                
	
                  City
                    Pair

                	
                  Minutes

                	 	
                  City
                    Pair

                	
                  Minutes

                	 	
                  City
                    Pair

                	
                  Minutes

                
	 	 	 	 	 	 	 	 
	
                  BNA-STL

                	
                  70

                	 	
                  BHM-DFW

                	
                  122

                	 	
                  ALB-DCA

                	
                  71

                
	
                  STL-BNA

                	
                  70

                	 	
                  DFW-BMH

                	
                  110

                	 	
                  DCA-ALB

                	
                  82

                
	
                  CID-STL

                	
                  58

                	 	
                  BMH-MCO

                	
                  90

                	 	
                  ALB-PHL

                	
                  71

                
	
                  STL-CID

                	
                  63

                	 	
                  MCO-BMH

                	
                  95

                	 	
                  PHL-ALB

                	
                  67

                
	
                  CLT-STL

                	
                  124

                	 	
                  BNA-FLL

                	
                  135

                	 	
                  BDL-DCA

                	
                  84

                
	
                  STL-CLT

                	
                  99

                	 	
                  FLL-BNA

                	
                  130

                	 	
                  DCA-BDL

                	
                  74

                
	
                  CMH-CVG

                	
                  45

                	 	
                  BNA-MCO

                	
                  104

                	 	
                  BGR-LGA

                	
                  85

                
	
                  CVG-CMH

                	
                  40

                	 	
                  MCO-BNA

                	
                  115

                	 	
                  LGA-BGR

                	
                  86

                
	
                  CMH-DAY

                	
                  40

                	 	
                  BOS-CMH

                	
                  124

                	 	
                  BGR-PIT

                	
                  124

                
	
                  DAY-CMH

                	
                  40

                	 	
                  CMH-BOS

                	
                  110

                	 	
                  PIT-BGR

                	
                  111

                
	
                  CMH-PIT

                	
                  50

                	 	
                  CAE-MCO

                	
                  72

                	 	
                  BNA-PHL

                	
                  134

                
	
                  PIT-CMH

                	
                  45

                	 	
                  MCO-CAE

                	
                  75

                	 	
                  PHL-BNA

                	
                  132

                
	
                  CVG-IND

                	
                  40

                	 	
                  CMH-DFW

                	
                  170

                	 	
                  BOS-BUF

                	
                  94

                
	
                  IND-CVG

                	
                  42

                	 	
                  DFW-CMH

                	
                  144

                	 	
                  BUF-BOS

                	
                  84

                
	
                  CVG-STL

                	
                  83

                	 	
                  CMH-FLL

                	
                  150

                	 	
                  BOS-GSO

                	
                  125

                
	
                  STL-CVG

                	
                  79

                	 	
                  FLL-CMH

                	
                  162

                	 	
                  GSO-BOS

                	
                  116

                
	
                  DAY-STL

                	
                  84

                	 	
                  CMH-JFK

                	
                  110

                	 	
                  BOS-IND

                	
                  158

                
	
                  STL-DAY

                	
                  77

                	 	
                  JFK-CMH

                	
                  106

                	 	
                  IND-BOS

                	
                  134

                
	
                  DSM-STL

                	
                  60

                	 	
                  CMH-LGA

                	
                  96

                	 	
                  BOS-MYR

                	
                  142

                
	
                  STL-DSM

                	
                  70

                	 	
                  LGA-CMH

                	
                  111

                	 	
                  MYR-BOS

                	
                  123

                
	
                  FSD-STL

                	
                  89

                	 	
                  CMH-MCO

                	
                  135

                	 	
                  BOS-PIT

                	
                  108

                
	
                  STL-FSD

                	
                  100

                	 	
                  MCO-CMH

                	
                  130

                	 	
                  PIT-BOS

                	
                  99

                
	
                  IAH-STL

                	
                  135

                	 	
                  CMH-RSW

                	
                  145

                	 	
                  BOS-ROC

                	
                  90

                
	
                  STL-IAH

                	
                  125

                	 	
                  RSW-CMH

                	
                  150

                	 	
                  ROC-BOS

                	
                  78

                
	
                  IST-STL

                	
                  77

                	 	
                  CMH-TPA

                	
                  136

                	 	
                  BTV-DCA

                	
                  94

                
	
                  STL-ICT

                	
                  93

                	 	
                  TPA-CMH

                	
                  140

                	 	
                  DCA-BTV

                	
                  89

                
	
                  IND-MKE

                	
                  70

                	 	
                  DFW-ELP

                	
                  110

                	 	
                  BTV-PHL

                	
                  0

                
	
                  MKE-IND

                	
                  70

                	 	
                  ELP-DFW

                	
                  100

                	 	
                  PHL-BTV

                	
                  80

                
	
                  IND-STL

                	
                  65

                	 	
                  DFW-IAH

                	
                  68

                	 	
                  BTV-PIT

                	
                  103

                
	
                  STL-IND

                	
                  65

                	 	
                  IAH-DFW

                	
                  66

                	 	
                  PIT-BTV

                	
                  84

                
	
                  JAX-STL

                	
                  140

                	 	
                  DFW-ICT

                	
                  82

                	 	
                  BUF-DCA

                	
                  74

                
	
                  STL-JAX

                	
                  130

                	 	
                  ICT-DFW

                	
                  75

                	 	
                  DCA-BUF

                	
                  74

                
	
                  LNK-STL

                	
                  75

                	 	
                  DFW-IND

                	
                  130

                	 	
                  BUF-LGA

                	
                  79

                
	
                  STL-LNK

                	
                  86

                	 	
                  IND-DFW

                	
                  139

                	 	
                  LGA-BUF

                	
                  81

                
	
                  MKE-STL

                	
                  80

                	 	
                  DFW-LFT

                	
                  80

                	 	
                  BUF-PHL

                	
                  78

                
	
                  STL-MKE

                	
                  78

                	 	
                  LFT-DFW

                	
                  85

                	 	
                  PHL-BUF

                	
                  75

                
	
                  OMA-STL

                	
                  72

                	 	
                  DFW-LIT

                	
                  72

                	 	
                  BUF-PIT

                	
                  60

                
	
                  STL-OMA

                	
                  87

                	 	
                  LIT-DFW

                	
                  70

                	 	
                  PIT-BUF

                	
                  55

                
	
                  PIT-STL

                	
                  115

                	 	
                  DFW-MCO

                	
                  160

                	 	
                  CAE-LGA

                	
                  114

                
	
                  STL-PIT

                	
                  102

                	 	
                  MCO-DFW

                	
                  170

                	 	
                  LGA-CAE

                	
                  125

                
	
                  SGF-STL

                	
                  59

                	 	
                  DFW-MSY

                	
                  98

                	 	
                  CHA-LGA

                	
                  122

                
	
                  STL-SGF

                	
                  60

                	 	
                  MSY-DFW

                	
                  99

                	 	
                  LGA-CHA

                	
                  146

                
	
                  SHV-STL

                	
                  93

                	 	
                  DFW-OKC

                	
                  60

                	 	
                  CHS-DCA

                	
                  84

                
	
                  STL-SHV

                	
                  96

                	 	
                  OKC-DFW

                	
                  55

                	 	
                  DCA-CHS

                	
                  91

                
	
                  STL-XNA

                	
                  74

                	 	
                  DFW-PNS

                	
                  114

                	 	
                  CHS-LGA

                	
                  117

                
	
                  XNA-STL

                	
                  68

                	 	
                  PNS-DFW

                	
                  120

                	 	
                  LGA-CHS

                	
                  138

                
	
                  STL-YYZ

                	
                  120

                	 	
                  DFW-TUL

                	
                  67

                	 	
                  CHS-PHL

                	
                  110

                
	
                  YYZ-STL

                	
                  135

                	 	
                  TUL-DFW

                	
                  68

                	 	
                  PHL-CHS

                	
                  127

                

        

        
          
            
            

          

          
            87

            
              

            

          

          
            
            

          

        

        

        
          	 	 	 	 	 	 	 	 
	 	 	 	
                  EYW-MCO

                	
                  66

                	 	
                  CLE-PHL

                	
                  89

                
	 	 	 	
                  MCO-EYW

                	
                  60

                	 	
                  PHL-CLE

                	
                  108

                
	 	 	 	
                  FLL-MCO

                	
                  59

                	 	
                  CMH-DCA

                	
                  71

                
	 	 	 	
                  MCO-FLL

                	
                  58

                	 	
                  DCA-CMH

                	
                  77

                
	 	 	 	
                  FLL-RDU

                	
                  120

                	 	
                  CMH-LGA

                	
                  100

                
	 	 	 	
                  RDU-FLL

                	
                  125

                	 	
                  LGA-CMH

                	
                  111

                
	 	 	 	
                  FLL-TLH

                	
                  80

                	 	
                  CMH-PHL

                	
                  91

                
	 	 	 	
                  TLH-FLL

                	
                  80

                	 	
                  PHL-CMH

                	
                  97

                
	 	 	 	
                  GSO-MCO

                	
                  100

                	 	
                  CMH-PIT

                	
                  54

                
	 	 	 	
                  MCO-GSO

                	
                  97

                	 	
                  PIT-CMH

                	
                  54

                
	 	 	 	
                  GSP-MCO

                	
                  85

                	 	
                  CVG-PHL

                	
                  102

                
	 	 	 	
                  MCO-GSP

                	
                  85

                	 	
                  PHL-CVG

                	
                  119

                
	 	 	 	
                  HSV-MCO

                	
                  90

                	 	
                  DAY-LGA

                	
                  110

                
	 	 	 	
                  MCO-HSV

                	
                  105

                	 	
                  LGA-DAY

                	
                  121

                
	 	 	 	
                  IND-JFK

                	
                  122

                	 	
                  DCA-HSV

                	
                  114

                
	 	 	 	
                  JFK-IND

                	
                  135

                	 	
                  HSV-DCA

                	
                  109

                
	 	 	 	
                  IND-LGA

                	
                  125

                	 	
                  DCA-IND

                	
                  107

                
	 	 	 	
                  LGA-IND

                	
                  135

                	 	
                  IND-DCA

                	
                  91

                
	 	 	 	
                  IND-MCO

                	
                  135

                	 	
                  DCA-PHL

                	
                  55

                
	 	 	 	
                  MCO-IND

                	
                  145

                	 	
                  PHL-DCA

                	
                  60

                
	 	 	 	
                  IND-TPA

                	
                  135

                	 	
                  DCA-PIT

                	
                  65

                
	 	 	 	
                  TPA-IND

                	
                  145

                	 	
                  PIT-DCA

                	
                  63

                
	 	 	 	
                  MCO-MIA

                	
                  62

                	 	
                  DCA-RDU

                	
                  65

                
	 	 	 	
                  MIA-MCO

                	
                  60

                	 	
                  RDU-DCA

                	
                  0

                
	 	 	 	
                  MCO-MOB

                	
                  90

                	 	
                  DCA-SAV

                	
                  106

                
	 	 	 	
                  MOB-MCO

                	
                  85

                	 	
                  SAV-DCA

                	
                  93

                
	 	 	 	
                  MCO-MSY

                	
                  112

                	 	
                  DCA-SDF

                	
                  104

                
	 	 	 	
                  MSY-MCO

                	
                  110

                	 	
                  SDF-DCA

                	
                  95

                
	 	 	 	
                  MCO-NAS

                	
                  75

                	 	
                  DCA-TYS

                	
                  91

                
	 	 	 	
                  NAS-MCO

                	
                  80

                	 	
                  TYS-DCA

                	
                  84

                
	 	 	 	
                  MCO-PBI

                	
                  50

                	 	
                  DTW-PHL

                	
                  94

                
	 	 	 	
                  PBI-MCO

                	
                  42

                	 	
                  PHL-DTW

                	
                  113

                
	 	 	 	
                  MCO-PNS

                	
                  80

                	 	
                  DTW-PIT

                	
                  63

                
	 	 	 	
                  PNS-MCO

                	
                  75

                	 	
                  PIT-DTW

                	
                  70

                
	 	 	 	
                  MCO-RDU

                	
                  98

                	 	
                  ERI-PIT

                	
                  50

                
	 	 	 	
                  RDU-MCO

                	
                  102

                	 	
                  PIT-ERI

                	
                  44

                
	 	 	 	
                  MCO-RIC

                	
                  114

                	 	
                  GSO-LGA

                	
                  94

                
	 	 	 	
                  RIC-MCO

                	
                  124

                	 	
                  LGA-GSO

                	
                  111

                
	 	 	 	
                  MCO-RSW

                	
                  45

                	 	
                  GSO-PHL

                	
                  82

                
	 	 	 	
                  RSW-MCO

                	
                  48

                	 	
                  PHL-GSO

                	
                  103

                
	 	 	 	
                  MCO-SDF

                	
                  130

                	 	
                  GSO-PIT

                	
                  76

                
	 	 	 	
                  SDF-MCO

                	
                  125

                	 	
                  PIT-GSO

                	
                  71

                
	 	 	 	
                  MCO-TLH

                	
                  60

                	 	
                  GSP-LGA

                	
                  112

                
	 	 	 	
                  TLH-MCO

                	
                  57

                	 	
                  LGA-GSP

                	
                  131

                
	 	 	 	
                  MIA-TLH

                	
                  85

                	 	
                  GSP-PHL

                	
                  101

                
	 	 	 	
                  TLH-MIA

                	
                  78

                	 	
                  PHL-GSP

                	
                  116

                
	 	 	 	
                  PBI-TLH

                	
                  83

                	 	
                  HSV-LGA

                	
                  132

                
	 	 	 	
                  TLH-PBI

                	
                  75

                	 	
                  LGA-HSV

                	
                  155

                

        

        
          
            
            

          

          
            88

            
              

            

          

          
            
            

          

        

        

        
          	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
                  ILM-LGA

                	
                  93

                
	 	 	 	 	 	 	
                  LGA-ILM

                	
                  113

                
	 	 	 	 	 	 	
                  IND-LGA

                	
                  119

                
	 	 	 	 	 	 	
                  LGA-IND

                	
                  142

                
	 	 	 	 	 	 	
                  IND-PHL

                	
                  111

                
	 	 	 	 	 	 	
                  PHL-IND

                	
                  130

                
	 	 	 	 	 	 	
                  IND-PIT

                	
                  72

                
	 	 	 	 	 	 	
                  PIT-IND

                	
                  79

                
	 	 	 	 	 	 	
                  LGA-MYR

                	
                  118

                
	 	 	 	 	 	 	
                  MYR-LGA

                	
                  104

                
	 	 	 	 	 	 	
                  LGA-PHL

                	
                  71

                
	 	 	 	 	 	 	
                  PHL-LGA

                	
                  67

                
	 	 	 	 	 	 	
                  LGA-PIT

                	
                  0

                
	 	 	 	 	 	 	
                  PIT-LGA

                	
                  80

                
	 	 	 	 	 	 	
                  LGA-RDU

                	
                  107

                
	 	 	 	 	 	 	
                  RDU-LGA

                	
                  94

                
	 	 	 	 	 	 	
                  LGA-RIC

                	
                  88

                
	 	 	 	 	 	 	
                  RIC-LGA

                	
                  75

                
	 	 	 	 	 	 	
                  LGA-SAV

                	
                  143

                
	 	 	 	 	 	 	
                  SAV-LGA

                	
                  130

                
	 	 	 	 	 	 	
                  LGA-SDF

                	
                  142

                
	 	 	 	 	 	 	
                  SDF-LGA

                	
                  122

                
	 	 	 	 	 	 	
                  LGA-TYS

                	
                  136

                
	 	 	 	 	 	 	
                  TYS-LGA

                	
                  112

                
	 	 	 	 	 	 	
                  MKE-PHL

                	
                  128

                
	 	 	 	 	 	 	
                  PHL-MKE

                	
                  138

                
	 	 	 	 	 	 	
                  MKE-PIT

                	
                  88

                
	 	 	 	 	 	 	
                  PIT-MKE

                	
                  97

                

        

        
          
            
            

          

          
            89

            
              

            

          

          
            
            

          

        

        

        
          	 	 	 	 	 	 	
                  MSP-PIT

                	
                  126

                
	 	 	 	 	 	 	
                  PIT-MSP

                	
                  134

                
	 	 	 	 	 	 	
                  MYR-PHL

                	
                  93

                
	 	 	 	 	 	 	
                  PHL-MYR

                	
                  105

                
	 	 	 	 	 	 	
                  ORF-PIT

                	
                  89

                
	 	 	 	 	 	 	
                  PIT-ORF

                	
                  82

                
	 	 	 	 	 	 	
                  PHL-PWM

                	
                  84

                
	 	 	 	 	 	 	
                  PWM-PHL

                	
                  96

                
	 	 	 	 	 	 	
                  PHL-RDU

                	
                  95

                
	 	 	 	 	 	 	
                  RDU-PHL

                	
                  77

                
	 	 	 	 	 	 	
                  PHL-RIC

                	
                  69

                
	 	 	 	 	 	 	
                  RIC-PHL

                	
                  65

                
	 	 	 	 	 	 	
                  PHL-ROC

                	
                  73

                
	 	 	 	 	 	 	
                  ROC-PHL

                	
                  79

                
	 	 	 	 	 	 	
                  PHL-YUL

                	
                  96

                
	 	 	 	 	 	 	
                  YUL-PHL

                	
                  0

                
	 	 	 	 	 	 	
                  PIT-PWM

                	
                  96

                
	 	 	 	 	 	 	
                  PWM-PIT

                	
                  113

                
	 	 	 	 	 	 	
                  PIT-RDU

                	
                  77

                
	 	 	 	 	 	 	
                  RDU-PIT

                	
                  85

                
	 	 	 	 	 	 	
                  PIT-ROC

                	
                  67

                
	 	 	 	 	 	 	
                  ROC-PIT

                	
                  62

                
	 	 	 	 	 	 	
                  PIT-SDF

                	
                  86

                
	 	 	 	 	 	 	
                  SDF-PIT

                	
                  75

                
	 	 	 	 	 	 	
                  PIT-YUL

                	
                  0

                
	 	 	 	 	 	 	
                  YUL-PIT

                	
                  115

                
	 	 	 	 	 	 	
                  YUL-PIT

                	
                  115

                

        

        

        

        
          
            
            

          

          
            90Exhibit 10.1

               MEMBER INTEREST PURCHASE AND ACQUISITION AGREEMENT

THIS AGREEMENT  ("AGREEMENT")  is dated as of August 29, 2005,  among  FRANCHISE
CAPITAL CORPORATION, a Nevada Corporation ("BUYER"),  AZTECA WRAP FOODS, L.L.C.,
an Arizona limited liability company ("SELLER").

                                    RECITALS

     A. Each of Buyer and Seller owns a 50%  membership  interest  in  Kokopelli
Franchise Company, an Arizona limited liability company ("KOKOPELLI"),  pursuant
to that certain Operating Agreement of Kokopelli Mexican Grill Franchise Company
LLC dated May 1, 2004, between Seller and Buyer (the "OPERATING AGREEMENT").

     B. Buyer  desires to purchase  from Seller,  and Seller  desires to sell to
Buyer,   Seller's  50%  membership  interest  (the  "MEMBERSHIP   INTEREST")  in
Kokopelli, and the parties desire to enter into other agreements with respect to
Kokopelli, all on the terms and conditions set forth in this Agreement. The term
"Membership  Interest"  shall not include  Seller's rights under Section 7.12 of
the Operating Agreement to operate its existing restaurant.

                                    AGREEMENT

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

                                    SECTION 1
                                PURCHASE AND SALE

     1.1 PURCHASE AND SALE. Seller hereby sells, conveys, transfers, and assigns
to Buyer,  free and clear of all liens,  pledges,  claims,  and  encumbrances of
every kind, nature, and description,  the Membership Interest and the Assets, as
defined below, and Buyer hereby purchases and accepts from Seller the Membership
Interest and the Assets, subject to the terms and conditions set forth herein.

     1.2 ASSET TRANSFER.  In addition to the transfer of the Membership Interest
pursuant the terms of this Agreement,  subject to the following sentence, Seller
hereby sells,  assigns and transfers to Buyer all of Seller's  right,  title and
interest, including all copyrights associated therewith, in and to the Kokopelli
franchise    manual,    any   training   manuals   used   by   Kokopelli,    the
Kokopellimexicangrill.com and Kokopellisonorangrill.com URL, and any employee or
management  manuals  used  by  Kokopelli  (the  "ASSETS").  Notwithstanding  the
foregoing;  Seller  retains the right to continue to use or have its  affiliates
use the Assets  (other than the URL) with  respect to the  operation  of the one
restaurant  currently  operated  by  Seller  or its  affiliates  under  the name
"Kokopelli."  These  reserved  rights  include  the  right to assign or sell its
existing  restaurant  consistent with the terms of Section 7.12 of the Operating
Agreement,  without the purchaser  being required to pay any transfer fee or any
initial  or  periodic  franchise  fees or other  charges  with  respect  to such
existing restaurant.

                                       1
<PAGE>
                                    SECTION 2
                                 PURCHASE PRICE

     2.1 PURCHASE PRICE. The purchase price for the Membership  Interest and the
Assets purchased and sold pursuant to Section 1.1, is $250,000.00 (the "PURCHASE
PRICE").

     2.2  PAYMENT.  The Purchase  Price shall be payable as follows:  $50,000.00
shall have been delivered to the Seller, by wire transfer, bank check, or as the
parties may otherwise agree,  contemporaneously  with the execution and delivery
of this  Agreement.  The remainder of the Purchase  Price shall be payable in 12
equal quarterly installments of principal,  plus interest,  accrued at the prime
rate, as  designated on the first  business day of each month in the WALL STREET
JOURNAL,  as the rate of interest charged by banks in the United States to their
largest and most credit-worthy commercial borrowers for unsecured loans maturing
in 90 days, but in no event in excess of the highest legal rate in Arizona.  The
payments  will  commence  on the  first day of the  third  month  after the date
hereof.  The  outstanding  balance of the Purchase Price shall be evidenced by a
Promissory Note (the "PROMISSORY NOTE"),  substantially in the form set forth as
Exhibit A.

     2.3  SECURITY.  Buyer's  obligations  under the  Promissory  Note  shall be
secured by a security interest in the Membership Interest, pursuant to the terms
of the Membership  Interest Pledge and Security  Agreement attached as Exhibit B
(the "PLEDGE AGREEMENT").

                                    SECTION 3
                         REPRESENTATIONS AND WARRANTIES

     3.1 GENERAL STATEMENT.  The parties make the representations and warranties
to each other as set forth in this Section 3. All representations and warranties
in this Agreement and in any financial statement,  exhibit, schedule or document
delivered by or on behalf of a party hereto or their representative to the other
party  pursuant  to  this  Agreement  shall  survive  the  consummation  of  the
transactions  contemplated  by this  Agreement  (and none  shall  merge into any
instrument or conveyance),  regardless of any knowledge or belief, investigation
or lack of investigation by the parties to this Agreement.

     3.2  REPRESENTATIONS  AND  WARRANTIES  OF  SELLER.  Seller  represents  and
warrants to Buyer the truth, accuracy and completeness of the following:

         (a)  DUE  INCORPORATION,   GOOD  STANDING,  INTERESTS,   OWNERSHIP  AND
QUALIFICATION.  Seller is a limited  liability  company duly organized,  validly
existing,  and in  good  standing  under  the  laws of the  jurisdiction  of its
formation  with all requisite  power and authority to do business and enter into
this Agreement.

         (b) MEMBERSHIP INTERESTS. As of the date hereof, Seller owns 50% of the
membership interests in Kokopelli.

         (c) OWNERSHIP.  Seller has good and  marketable  title to, and rightful
possession of, the Membership Interest.  No other entities have any right, title
or interest  in or to the  Membership  Interest  or the Assets,  or any right to
obtain  any such  interest.  Seller has no other  right,  title or  interest  in
Kokopelli or its assets, or any right to obtain any such interest, other than as
set forth in Section 7.12 of the Operating Agreement.

                                       2
<PAGE>
     3.3  REPRESENTATIONS AND WARRANTIES OF BUYER. Buyer represents and warrants
to the Seller as follows:

         (a) DUE INCORPORATION,  GOOD STANDING,  AND  QUALIFICATION.  Buyer is a
limited liability company duly organized, validly existing, and in good standing
under the laws of its  jurisdiction  of formation  with all requisite  power and
authority to own,  operate,  and lease its assets and properties and to carry on
its  business  as now being  conducted.  Buyer is not  subject  to any  material
disability  by  reason  of  the  failure  to  be  duly  qualified  as a  foreign
corporation  for the transaction of business or to be in good standing under the
laws of any jurisdiction

         (b)  AGREEMENT  NOT IN BREACH OF OTHER  INSTRUMENTS.  The execution and
delivery of this  Agreement,  the  Promissory  Note and the Pledge and  Security
Agreement, the consummation of the transactions contemplated hereby and thereby,
and the  fulfillment of the terms hereof and thereof by Buyer,  will not violate
any provision of the articles of organization  or operating  agreement of Buyer,
nor will they result in the breach of any term or provision of, or result in the
termination or  modification  of, or constitute a default  under,  or permit any
party to modify or terminate,  any loan agreement,  note, debenture,  indenture,
mortgage,  deed  of  trust,  lease,  contract,   agreement,  or  other  material
obligation  of any  description  to which  Buyer is a party or by which Buyer is
bound, or any judgment,  decree, order, or award of any court,  government body,
or arbitration, or any applicable law, rule, or regulation.

         (c) ABILITY TO BEAR RISK.  Buyer has the  ability to bear the  economic
risk of the purchase of the Membership Interest,  including the complete loss of
its investment.

         (d)  KNOWLEDGE  AND  EXPERIENCE.  Buyer has  sufficient  knowledge  and
experience in business and  financial  matters (or has received from a person of
its selection  sufficient  advice with respect to such matters) to be capable of
evaluating the merits and risks of an investment in the Membership Interest.

         (e) POWER TO EXECUTE AGREEMENT.  Buyer has the full power and authority
to execute,  deliver, and perform its obligations under this Agreement, and this
Agreement  is the legal and  binding  obligation  of Buyer,  and is  enforceable
against Buyer in accordance with its terms.

         (f)  LITIGATION.  To  its  knowledge,  there  are  no  actions,  suits,
proceedings,  pending or  threatened  against  Kokopelli  or against  Buyer with
respect to  Kokopelli at law or in equity,  or before or by any federal,  state,
municipal, or other governmental department,  commission, board, bureau, agency,
or instrumentality.

         (g) FULLY INFORMED  DECISION.  As the Managing member of Kokopelli,  it
has  knowledge  of  the  existing  and  proposed  business  affairs,   financial
condition,  plans and prospects of Kokopelli  that it deems relevant in making a
fully informed decision with respect to the purchase of the Membership interest.

         (h)  OPPORTUNITY TO OBTAIN  INFORMATION.  It has had the opportunity to
ask questions and receive  information with respect to, among other things,  the
proposed business affairs, financial condition, plans and prospects of Kokopelli
and the terms and conditions of the purchase of the Membership  Interest,  as it
has requested so as to more fully understand its investment.

                                       3
<PAGE>
         (i) NO  REPRESENTATIONS.  Neither Seller nor any person representing or
acting on behalf of Seller,  or purportedly  representing or acting on behalf of
Seller, has made any representations, warranties, agreements or statements other
than those  contained  herein  which  influenced  or  affected  its  decision to
purchase the Membership Interest.

         (j)  ACQUISITION  FOR  OWN  ACCOUNT.  It is  acquiring  the  Membership
Interest for its own account, without any view to the transfer, sale, assignment
or other distribution thereof.

         (k) NO LIEN.  The  execution  and  delivery of this  Agreement  and the
Pledge Agreement by Buyer and the consummation of the transactions  contemplated
hereby and thereby by Buyer will not result in the imposition of a lien upon the
Collateral, as defined in the Pledge Agreement.

         (l)  SECURITIES.  Buyer  acknowledges,  understands and agrees that the
Membership  Interest has not been, and will not be, registered under any federal
or state  securities laws,  including,  but not limited to the Securities Act of
1933,  as amended,  and the  Arizona  Securities  Act,  as amended,  and that no
federal or state  governmental  agency or authority  has approved or passed upon
the issuance of the Membership  Interest.  It understands that there is not now,
and that there is not likely to be in the future,  any market for the Membership
Interest and that the  Membership  Interest must be held by it for an indefinite
period of time, absent  registration or qualification of the Membership Interest
under applicable laws or the receipt of an option of counsel satisfactory to the
Corporation that registration or qualification is not required.  It acknowledges
that the certificate,  if any, representing the Membership Interest to be issued
to it  will  bear  a  legend  restricting  the  transferability  thereof  to the
foregoing effect.

                                    SECTION 4
                                 INDEMNIFICATION

     4.1 INDEMNIFICATION OF BUYER.

     (a) Seller covenants and agrees to defend, indemnify and hold Buyer and its
officers, directors,  members, employees,  attorneys, agents and representatives
(collectively,  the "BUYER PARTIES")  harmless for, from and against any and all
damages, losses, liabilities (absolute and contingent),  fines, penalties, costs
and expenses (including,  without limitation,  reasonable counsel fees and costs
and expenses incurred in the  investigation,  defense or settlement of any claim
covered by this indemnity) with respect to or arising out of any demand,  claim,
inquiry,  investigation,  proceeding,  action or cause of action that any of the
Buyer Parties may suffer or incur by reason of:

         (i)  the  inaccuracy  or  breach  of  any  of  the  representations  or
warranties of Seller or any of Seller's members contained in this Agreement,  or
any  of  the  agreements,  certificates,  documents  or  exhibits  delivered  in
connection with this Agreement;

         (ii) the failure to comply with,  or the breach or default by Seller or
any of Seller's members of any of the covenants,  warranties, or agreements made
by Seller or any of Seller's members contained in this Agreement,  or any of the
agreements,  certificates,  documents or exhibits  delivered in connection  with
this Agreement; or

                                       4
<PAGE>
         (iii)  any  misrepresentation   contained  herein  or  in  any  written
statement or  certificate  furnished by Seller  pursuant to this Agreement or in
connection with the transactions contemplated hereby.

     4.2  INDEMNIFICATION  OF  SELLER.  Buyer  covenants  and  agrees to defend,
indemnify  and hold  Seller and its  officers,  directors,  members,  attorneys,
agents and representatives (the "SELLER PARTIES") harmless for, from and against
any and all damages,  losses,  liabilities  (absolute  and  contingent),  fines,
penalties, costs and expenses (including, without limitation, reasonable counsel
fees and costs and expenses incurred in the investigation, defense or settlement
of any claim  covered by this  indemnify)  with respect to or arising out of any
demand, claim,  inquiry,  investigation,  proceeding,  action or cause of action
that Seller Parties may suffer or incur by reason of:

         (i) any of the  activities of the Company,  whether before or after the
date  of  this  Agreement,  other  than  liabilities  arising  out of any act or
omission of Seller that was  fraudulent,  grossly  negligent,  in bad faith,  or
contrary to Seller's fiduciary duties to the Company and its members;

         (ii)  the  inaccuracy  or  breach  of  any of  the  representations  or
warranties of Buyer or any of Buyer's members  contained in this  Agreement,  or
any  of  the  agreements,  certificates,  documents  or  exhibits  delivered  in
connection with this Agreement;

         (iii) the failure to comply with,  or the breach or default by Buyer or
any of Buyer's members of any of the covenants, warranties or agreements made by
Buyer or any of  Buyer's  members  contained  in this  Agreement,  or any of the
agreements,  certificates,  documents or exhibits  delivered in connection  with
this Agreement; or

         (iv) any misrepresentation contained herein or in any written statement
or  certificate  furnished by Buyer  pursuant to this Agreement or in connection
with the transactions contemplated hereby.

     4.3 NOTICE AND RIGHT TO DEFEND THIRD-PARTY CLAIMS. Promptly upon receipt of
notice of any  claim,  demand or  assessment  or the  commencement  of any suit,
action or proceeding  with respect to which  indemnity may be sought pursuant to
this  Agreement,  the party  seeking to be  indemnified  or held  harmless  (the
"INDEMNITEE")  shall notify in writing,  if possible,  within sufficient time to
respond to such claim or answer or  otherwise  plead in such  action (but in any
event  within 30 days),  the party  from  whom  indemnification  is sought  (the
"INDEMNITOR").  In case any claim,  demand or assessment  shall be asserted,  or
suit,  action or proceeding  commenced  against the  Indemnitee,  the Indemnitor
shall be entitled,  at the Indemnitor's expense, to participate therein, and, to
the extent  that it may wish,  to assume  the  defense,  conduct  or  settlement
thereof, at its own expense, with counsel satisfactory to the Indemnitee,  whose
consent  to the  selection  of counsel  shall not be  unreasonably  withheld  or
delayed,  provided that the Indemnitor  confirms to the Indemnitee  that it is a
claim to which its rights of  indemnification  apply.  The Indemnitor shall have
the right to settle or  compromise  monetary  claims;  however,  as to any other
claim,  the  Indemnitor  shall first obtain the prior  written  consent from the
Indemnitee,  which  consent  shall be  exercised in the sole  discretion  of the
Indemnitee.  After notice from the Indemnitor to the Indemnitee of  Indemnitor's
intent so to assume the  defense,  conduct,  settlement  or  compromise  of such
action,  the  Indemnitor  shall not be liable to the Indemnitee for any legal or
other expenses  (including,  without limitation,  settlement costs) subsequently
incurred by the Indemnitee in connection with the defense, conduct or settlement
of such  action  while  the  Indemnitor  is  diligently  defending,  conducting,

                                       5
<PAGE>
settling or compromising  such action.  The Indemnitor shall keep the Indemnitee
apprised  of the  status  of the  suit,  action or  proceeding  and  shall  make
Indemnitor's counsel available to the Indemnitee,  at the Indemnitor's  expense,
upon the request of the  Indemnitee.  The  Indemnitee  shall  cooperate with the
Indemnitor in connection with any such claim and shall make personnel, books and
records and other information  relevant to the claim available to the Indemnitor
to the extent that such personnel,  books and records and other  information are
in the possession  and/or control of the Indemnitee.  If the Indemnitor  decides
not to  participate,  the  Indemnitee  shall be  entitled,  at the  Indemnitor's
expense,  to defend,  conduct,  settle or  compromise  such matter with  counsel
satisfactory to the Indemnitor,  whose consent to the selection of counsel shall
not be unreasonably withheld or delayed.

                                    SECTION 5
                            POST-CLOSING OBLIGATIONS

     5.1 COVENANTS.

         (a)  TRADE  SECRETS  AND OTHER  INFORMATION.  In  consideration  of the
execution and delivery of this Agreement by Buyer,  and in  consideration of the
payments by Buyer of the Purchase Price, Seller agrees that, except as necessary
or appropriate in connection with the operation of Seller's (or its affiliates')
one  Kokopelli  restaurant,  after the date hereof  Seller will not  directly or
indirectly  communicate  or divulge  to, or use for the  benefit of, and person,
firm of corporation other than Buyer, or its agents or  representatives,  any of
the trade secrets, methods, formulas, business and/or marketing plans, processes
or any other  proprietary or confidential  information  with respect to Buyer or
Kokopelli  and their  business,  financial  condition,  business  operations  or
methods,  or  business  prospects.  The  preceding  sentence  shall not apply to
information  that (i) is, was, or becomes,  generally  known or available to the
public or the  industry  other  than as a result of a  disclosure  by a party in
violation of this Agreement, or (ii) is required to be disclosed by law.

         (b) OBLIGATIONS OF ALL PARTIES; FURTHER ASSURANCES. Each of the parties
shall execute such further  documents,  and perform such further acts, as may be
reasonably requested by the other party from time to time to transfer and convey
the Membership Interest and Assets to Buyer, on the terms herein contained,  and
to otherwise comply with, implement, or evidence the terms of this Agreement and
consummate the transactions herein provided,  including (without limitation) the
rights of Seller under Section 7.12 of the  Operating  Agreement and Section 1.2
of this Agreement.

                                    SECTION 6
                                     GENERAL

     6.1  CONTROLLING  LAW. This  Agreement,  and all questions  relating to its
validity, interpretation, performance, and enforcement, shall be governed by and
construed in accordance with the laws of Arizona, notwithstanding any Arizona or
other conflict-of-law provisions to the contrary. In any action or proceeding to
enforce rights under this Agreement,  the prevailing  party shall be entitled to
recover costs and attorneys' fees.

     6.2 NOTICES.  Except to the extent otherwise set forth herein, all notices,
requests,  demands,  and other  communications  required or permitted under this
Agreement shall be in writing and shall be deemed to have been duly given,  made
and received when  personally  delivered,  or 3 days after deposit in the United
States mails,  first class postage prepaid,  return receipt  requested,  or when
sent by overnight express delivery with a signature required upon receipt, or 24

                                       6
<PAGE>
hours after being sent by  facsimile  with a confirmed  copy,  addressed  as set
forth below:

  If to Buyer:                              If to Seller:

  7400 McDonald Suite 121                   1949 E. Camelback Suite 140
  Scottsdale, AZ 85250                      Phoenix, AZ 85061
  Attention: President                      Attention: Beverly Goodman
  Fax: (480) 355-8149                       Fax:

  With a copy to:                           With a copy to:

  Blume Law Firm, P.C.                      Dillingham & Reynolds L.L.P.
  Attn: Gary R. Blume                       Attn: James W. Reynolds
  11801 N. Tatum Blvd., Ste. 124            5080 North 40th St., Ste. 335
  Phoenix, Arizona 85028                    Phoenix, AZ 85018
  Fax: (602) 494-7313                       Fax: (602) 468-0442

     Any party may alter the address to which communications or copies are to be
sent by giving  notice to such other  parties of change of address in conformity
with the provisions of this paragraph for the giving of notice.

     6.3 BINDING  NATURE OF AGREEMENT;  NO ASSIGNMENT.  This Agreement  shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns,  except that no party may assign,  delegate, or transfer
its rights or obligations under this Agreement without the prior written consent
of the other parties hereto.

     6.4 ENTIRE AGREEMENT.  This Agreement,  together with the Exhibits attached
and the Operating Agreement, contains the entire understanding among the parties
hereto with respect to the subject  matter hereof and  supersedes  all prior and
contemporaneous  agreements  and  understandings,   inducements  or  conditions,
express or implied,  oral or written,  except as herein  contained.  The express
terms hereof control and supersede any course of performance and/or usage of the
trade  inconsistent  with any of the terms  hereof.  This  Agreement  may not be
modified or amended other than by an agreement in writing.

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

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

                             FRANCHISE CAPITAL CORPORATION, a Nevada
                             Corporation

                             By:___________________________________
                             Name: ________________________________
                             Its:___________________________________

                                       7
<PAGE>
                             AZTECA WRAP FOODS, L.L.C., an Arizona limited
                             liability company

                             By:___________________________________
                             Name: ________________________________
                             Its:___________________________________

STATE OF ARIZONA            )
                            ) ss.
County of Maricopa          )

     The foregoing instrument was acknowledged before me this ___ day of August,
2005, by  __________________________  as  _________________________ of Franchise
Capital Corporation, a Nevada corporation, on behalf of the corporation.

                                      ------------------------------------------
                                      Notary Public

My Commission Expires:

--------------------

STATE OF ARIZONA            )
                            ) ss.
County of Maricopa          )

     The  foregoing  instrument  was  acknowledged  before  me this  ____ day of
August,  2005, by  _________________  as  ______________________  of Azteca Wrap
Foods, L.L.C., an Arizona limited liability company, on behalf of the company.

                                       -----------------------------------------
                                       Notary Public

My Commission Expires:

--------------------

                                       8
<PAGE>
                                    EXHIBIT A
                                 PROMISSORY NOTE

<PAGE>
                                 PROMISSORY NOTE

U.S. $200,000.00                                           As of August 29, 2005

     FOR VALUE RECEIVED,  Franchise Capital  Corporation,  a Nevada  Corporation
("MAKER"),  hereby  promises  to pay to Azteca  Wrap Foods,  LLC  ("HOLDER")  at
Holder's  address  as set forth on page 2 hereof,  the  principal  amount of Two
Hundred Thousand Dollars ($200,000.00),  together with interest on the principal
balance outstanding hereunder,  from, and including, the date of this Promissory
Note (this "NOTE") until, but not including, the date of full and final payment.
The principal  balance of this Note shall bear interest at the  contracted  rate
per annum  (calculated  from the date of this Note on a 365 day  basis),  at the
prime rate, as  designated  on the first  business day of each month in the WALL
STREET JOURNAL, as the rate of interest charged by banks in the United States to
their largest and most  credit-worthy  commercial  borrowers for unsecured loans
maturing  in 90 days,  but in no event in excess of the  highest  legal  rate in
Arizona.

     1. Payments.  The principal  amount due under this Note shall be payable in
twelve (12) equal  quarterly  installments  of principal,  each in the amount of
Sixteen thousand six hundred  sixty-seven  dollars  ($16,667.00),  together with
interest accrued thereon, commencing on November 1, 2005, with the final payment
on August 1, 2008.

     2.  Acceleration  and Other Remedies.  Maker shall be in default under this
Note if Maker fails to timely make any of the payments due and payable hereunder
or if Maker  fails to  perform or  otherwise  breaches  any of its  obligations,
agreements,  or warranties under the Purchase Agreement or the Pledge Agreement.
Upon the  occurrence  of any such  default,  before  Holder may  exercise any of
Holder's  rights or remedies  arising out of this Note,  Holder shall give Maker
written  notice of such  default and Maker shall have fifteen (15) days from the
date Maker  receives  notice of the default from Holder to cure the default.  If
Maker fails to cure the default within this fifteen (15) day grace period, then,
and only then,  shall an "EVENT OF DEFAULT" have occurred under this Note.  Upon
the occurrence of an Event of Default,  the entire principal balance outstanding
hereunder,  together with all accrued but unpaid interest thereon, shall, at the
election of Holder, and without further notice to Maker,  become immediately due
and payable.  Holder's  failure to declare  acceleration for any cause shall not
prevent  Holder from  declaring  acceleration  at a later time for such,  or any
other, Event of Default.

     3. Prepayment.  Maker may prepay all or any portion of the accrued interest
and the unpaid principal balance of this Note at any time, or from time to time,
without  penalty or premium.  Any prepayment  shall first be credited to accrued
interest, and then to principal, to the inverse order of maturity.

     4.  Purchase  Agreement.  This Note is executed and delivered in connection
with the  Member  Interest  Purchase  and  Acquisition  Agreement,  by and among
Franchise  Capital  Corporation  and Azteca Wrap Foods,  L.L.C.,  as of the date
hereof the "PURCHASE AGREEMENT").

     5. Application of Payments.  All payments shall first be applied to accrued
interest and then to  principal.  Prepayment of any amounts owed under this Note
may be made at  anytime,  or from  time to time,  in  whole or in part,  without
penalty.  All amounts payable under this Note are payable in lawful money of the
United States.
<PAGE>
     6. Waivers.  Except to the extent expressly set forth herein,  Maker hereby
waives diligence,  demand, grace, presentment for payment, notice of nonpayment,
protest and notice of  protest,  notice of  dishonor,  notice of  extension  and
notice of default.

     7. Costs and  Expenses.  In the event that  Holder is  required to take any
legal action in order to enforce its rights hereunder,  Holder shall be entitled
to recover from Maker its reasonable  out of pocket costs and expenses  actually
incurred in connection  therewith,  including,  without  limitation,  reasonable
attorneys' fees, whether or not suit is filed, and all costs of collection, suit
and preparation for suit (whether at trial or appellate level).

     8. Security. Maker's obligations hereunder are secured by a pledge of a 50%
membership interest in Kokopelli Franchise Company, L.L.C. pursuant to the terms
of a Pledge  and  Security  Agreement  of even date  herewith  between  Maker as
Pledgor and Holder as Secured Party (the "PLEDGE AGREEMENT").

     9. Controlling  Law. This Note and all questions  relating to its validity,
interpretation, performance and enforcement, shall be governed by and construed,
interpreted  and  enforced in  accordance  with the laws of the State of Arizona
without regard to conflicts of laws or provisions thereof to the contrary.

     10. Binding Nature. The provisions of this Note shall be binding upon Maker
and the  successors  and  assigns of Maker,  and shall  inure to the  benefit of
Holder and any  subsequent  holder of all or any portion of this Note, and their
respective successors and assigns.

     11. Notices.  Except to the extent otherwise set forth herein, all notices,
requests,  demands,  and other  communications  required or permitted under this
Note shall be in writing and shall be deemed to have been duly  given,  made and
received when personally delivered, or 3 days after deposit in the United States
mails, first class postage prepaid,  return receipt  requested,  or when sent by
overnight express delivery with a signature  required upon receipt,  or 24 hours
after being sent by  facsimile  with a confirmed  copy,  addressed  as set forth
below:

  If to Maker:                              If to Holder:

  7400 McDonald Suite 121                   1949 E. Camelback Suite 140
  Scottsdale, AZ 85250                      Phoenix, AZ 85061
  Attention: President                      Attention: Beverly Goodman
  Fax: (480) 355-8149                       Fax:

  With a copy to:                           With a copy to:

  Blume Law Firm, P.C.                      Dillingham & Reynolds L.L.P.
  Attn: Gary R. Blume                       Attn: James W. Reynolds
  11801 North Tatum Blvd. Suite 124         5080 North 40th Street Suite 335
  Phoenix, Arizona 85028                    Phoenix, AZ 85018
  Fax: (602) 494-7313                       Fax: (602) 468-0442

     Any party may alter the address to which communications or copies are to be
sent by  giving  notice  of such  change  of  address  in  conformity  with  the
provisions of this Section for the giving of notice.
<PAGE>
     Maker hereby acknowledges receipt of a copy of this Promissory Note.

     IN WITNESS  WHEREOF,  Maker has executed this Note as of the date first set
forth above.

                                         FRANCHISE CAPITAL CORPORATION, a Nevada
                                         Corporation

                                         By:___________________________________

                                         Name: ________________________________

                                         Its:__________________________________

STATE OF ARIZONA         )
                         ) ss.
County of Maricopa       )

     The foregoing instrument was acknowledged before me this ___ day of August,
2005, by  __________________________  as  _________________________ of Franchise
Capital Corporation, a Nevada corporation, on behalf of the corporation.

                                           -------------------------------------
                                           Notary Public

My Commission Expires:

---------------------
<PAGE>
                                    EXHIBIT B
                MEMBERSHIP INTEREST PLEDGE AND SECURITY AGREEMENT

<PAGE>
                MEMBERSHIP INTEREST PLEDGE AND SECURITY AGREEMENT

     THIS MEMBERSHIP  INTEREST PLEDGE AND SECURITY  AGREEMENT (this "AGREEMENT")
is made as of the ____ day of August,  2005,  by and between  Franchise  Capital
Corporation,  a Nevada Corporation ("PLEDGOR") and Azteca Wrap Foods, L.L.C., an
Arizona limited  liability company  ("SECURED  PARTY");  and is acknowledged and
agreed to by Kokopelli  Franchise Company,  L.L.C., an Arizona limited liability
company ("KOKOPELLI").

                                    RECITALS

     A. Pledgor and Secured Party have executed that certain Membership Interest
Purchase and Acquisition  Agreement,  dated as of the date hereof (the "PURCHASE
AGREEMENT"),  pursuant  to which  Pledgor  has  purchased  Secured  Party's  50%
membership  interest in Kokopelli  (the  "MEMBERSHIP  INTEREST") as described in
that certain Operating  Agreement of Kokopelli Mexican Grill Franchise  Company,
LLC dated May 1,  2004,  between  Pledgor  and  Secured  Party  (the  "OPERATING
AGREEMENT").

     B. To  evidence  Pledgor's  obligations  to Secured  Party  pursuant to the
Purchase  Agreement,  Pledgor  issued to Secured  Party that certain  Promissory
Note,  dated as of the date  hereof,  in the  original  principal  amount of Two
Hundred Thousand and 00/100ths dollars ($200,000.00) (the "PROMISSORY NOTE").

     C. As security  for the  repayment  of  Pledgor's  payment  obligations  to
Secured Party under the Promissory  Note and the  performance of Pledgor's other
obligations under the Purchase Agreement (the "OBLIGATIONS"), Pledgor has agreed
to grant Secured Party a security interest in the Membership Interest.

                                    AGREEMENT

     1. PLEDGE.  FOR GOOD AND VALUABLE  CONSIDERATION,  Pledgor hereby grants to
Secured  Party a security  interest  in, and pledges to Secured  Party,  the 50%
membership interest in Kokopelli that Pledgor purchased from Secured Party as of
the date hereof (the  "MEMBERSHIP  INTEREST"),  all rights  under the  Operating
Agreement  relating  to  the  Membership  Interest,  and  all  proceeds  of  the
Membership  Interest (the "COLLATERAL") to secure the full and prompt payment of
Pledgor's  indebtedness  under the  Promissory  Note and all of Pledgor's  other
agreements and obligations under the Purchase  Agreement and this Agreement (the
"OBLIGATIONS").

     2. EVENTS OF DEFAULT.  Anyone or more of the following  will  constitute an
event of default under this Agreement (each an "EVENT OF DEFAULT"):

         (a) Pledgor's Event of Default as defined under the Promissory Note;

         (b)  Pledgor  becomes  insolvent  or  bankrupt,  or admits  in  writing
Pledgor's  inability  to pay  Pledgor's  debts  as  they  mature,  or  makes  an
assignment  for the  benefit of  creditors,  or applies  for or  consents to the
appointment  of a trustee  or  receiver  over  Pledgor's  property,  or  Pledgor
commences   any   proceeding   relating  to  any   bankruptcy,   reorganization,
arrangement, insolvency, readjustment, dissolution, or insolvency or liquidation
proceeding under the law of any jurisdiction;
<PAGE>
         (c) Any  proceeding  described  in Section  2(b) is  commenced  against
Pledgor and such proceeding is not dismissed within 15 days;

         (d) Any order described in Section 2(b) is entered appointing a trustee
or receiver over either  Pledgor's  property or Pledgor or adjudicating  Pledgor
bankrupt or  insolvent,  or approving  the petition in any  proceeding,  and the
order remains in effect for 60 days; or

         (e) Any transfer, assignment or other disposition of all or any part of
the Collateral by Pledgor.

     3. REMEDIES ON DEFAULT.  Upon the  occurrence of any Event of Default under
this  Agreement,  Secured  Party is  authorized,  upon  notice  to  Pledgor  and
Kokopelli,  to take any actions allowed by law,  including,  without limitation,
all rights and remedies available under the Operating  Agreement and the Uniform
Commercial Code,  including to retain  possession,  sell or otherwise dispose of
all or any portion of the  Membership  Interest at public or private  sale.  The
remedies of Secured Party hereunder are cumulative and the exercise of anyone or
more of the  remedies  shall  not be  construed  as a waiver of any of the other
remedies  of  Secured  Party  so long as any  part  of the  Obligations  remains
unsatisfied.  Secured  Party shall have no duty of any kind to any  subordinated
creditor of Pledgor.  Pledgor  agrees that written  notice given at least twenty
(20) days  prior to any public or private  sale  shall  constitute  commercially
reasonable notice. Secured Party may deduct from the proceeds of sale all costs,
expenses and charges  incurred in  connection  therewith,  including  reasonable
attorneys  fees. The balance of the proceeds shall be applied to the Obligations
and the remaining  surplus (if any) shall be paid to the Pledgor.  At any public
or private sale, the Secured Party may bid for (including a credit bid of all or
part  of the  unpaid  balance  under  the  Promissory  Note)  and  purchase  the
Collateral  being sold and, in the event of any such public or private sale, the
purchaser  shall  hold the  Collateral  thereafter  discharged  of any  right of
redemption.  Debtor and  Kokopelli  agree that the  purchaser of the  Collateral
shall be admitted as a member of Kokopelli  effective  immediately  upon written
demand.

     4. TIME IS OF THE  ESSENCE.  Time is of the essence in the  performance  of
each and every obligation under this Agreement.

     5.  PLEDGOR'S  REPRESENTATION.  Pledgor  represents  that the execution and
delivery of this Agreement by Pledgor and the  consummation of the  transactions
contemplated  hereby by Pledgor will not result in the imposition of a lien upon
the Collateral.

     6.  FURTHER  ASSURANCES.  Pledgor  hereby  agrees to execute and deliver to
Secured Party all financing and continuation  statements and other  instructions
as Secured Party may reasonably require in order to impose and continue the lien
created  pursuant  to  this  Agreement  upon  the  Collateral.   Pledgor  hereby
authorizes Secured Party to execute and file all financing  statements necessary
to perfect its security interest in the Collateral.

     7. TERM.  This  Agreement  and the pledge  made under this  Agreement  will
remain in effect for so long as Pledgor is indebted  to Secured  Party under the
Promissory Note.

     8. MODIFICATION OR WAIVER. No modification of this Agreement will be deemed
effective  unless in writing  and signed by the parties to this  Agreement.  Any
waiver  granted will not be deemed  effective  unless in writing,  signed by the
party against whom enforcement of the waiver is sought.
<PAGE>
     9. PROTECTION OF COLLATERAL.  Pledgor shall not encumber,  transfer,  sell,
lend,  secrete,  or otherwise  dispose of any of the  Collateral  or any portion
thereof  without  Secured  Party's prior written  consent.  Pledgor shall at all
times keep the Collateral free from all liens, encumbrances,  and other security
interests  whether superior or inferior to this Agreement,  unless Secured Party
consents in advance in writing to such encumbrance.  Pledgor shall defend at its
own cost any attack or claim on the Collateral and the interest of Secured Party
therein against all claims, demands, and legal proceedings by all persons at any
time claiming the same or any interest therein.  Secured Party at its option may
itself  maintain such defense,  but the cost,  including  reasonable  attorneys'
fees,  shall become an obligation of Pledgor secured by this Agreement.  Pledgor
shall pay all  expenses  and,  upon  request by Secured  Party,  take any action
reasonably  deemed  advisable  by Secured  Party to  preserve  and  protect  the
Collateral or its security interest under this Agreement.

     10. VOTING  RIGHTS AND PAYMENTS  AFTER  DEFAULT.  After an Event of Default
under  this  Agreement,  Secured  Party  shall be  entitled  to  direct  Pledgor
regarding the exercise of its voting power and management rights with respect to
the Collateral,  and to receive and retain, as additional  Collateral hereunder,
any and all distributions made by Kokopelli with respect to the Collateral.  Any
cash received and retained by Secured Party as additional  Collateral  hereunder
pursuant  to the  foregoing  provisions  shall  from time to time be  applied by
Secured  Party to the  payment of  amounts  owing  pursuant  to the terms of the
Obligations.

     11. POWER OF ATTORNEY.  Pledgor hereby appoints  Secured Party as Pledgor's
attorney-in-fact  for  the  purpose  of  carrying  out  the  provisions  of this
Agreement  after an Event of Default  and taking  any action and  executing  any
instrument  that Secured Party may deem necessary or advisable to accomplish the
purposes hereof. Without limiting the generality of the foregoing, Secured Party
shall have the right and power after an Event of Default to (a) receive, endorse
and collect all checks and other orders for the payment of money made payable to
Pledgor  representing any distribution or other amount payable in respect of the
Collateral or any part thereof and to give full  discharge for the same, and (b)
to execute bills of sale,  endorsements,  assignments  or other  instruments  of
conveyance or transfer with respect to all or any of the Collateral.

     12. PLEDGOR'S WARRANTIES. Pledgor warrants to Secured Party that, as of the
date hereof and so long as any part of the Obligations  remains unpaid,  Pledgor
is and will  remain the sole and  exclusive  owner of the  Collateral,  free and
clear of any and all liens,  security  interests and  encumbrances of every kind
and  description  other than the  security  interest  granted  to Secured  Party
hereunder.

     13.   PRESERVATION  OF  KOKOPELLI.   So  long  as  any  part  of  Pledgor's
indebtedness  under the Promissory Note or any other of the Obligations  remains
unpaid,  Pledgor shall not,  without the prior written consent of Secured Party,
agree to any amendment of the Operating  Agreement or cause or permit  Kokopelli
to do any of the following:

         (a) merge or consolidate with any other legal entity;
<PAGE>
         (b) dissolve or terminate its existence;

         (c) sell, transfer, grant an exclusive license of, or otherwise dispose
of all or any  part  of  Kokopelli's  registered  and  unregistered  trademarks,
service marks, trade names,  copyrights,  recipes,  designs, menus and franchise
manuals,  other than franchise licenses for restaurants and development areas in
the usual course of business;

         (d)  make  any  distributions  or  transfers  of  cash or  property  to
Kokopelli's members or their affiliates, directly or indirectly, with respect to
any   outstanding   membership   interests  in  Kokopelli  or  any   outstanding
indebtedness owing by Kokopelli to its members or their affiliates;

         (e) issue any capital or profits interests in Kokopelli, or any similar
right  to  share  in  Kokopelli's   cash  flow,  in  any  manner  that  dilutes,
subordinates,  or diminishes  the  distribution  rights or economic value of the
Collateral; or

         (f) make any loans of Kokopelli's cash to any third party or permit any
third party to use any of  Kokopelli's  assets,  other than  franchisees  in the
normal course of business pursuant to the terms of their franchise agreements.

     14. FINANCIAL STATEMENTS.  Pledgor shall deliver to Secured Party unaudited
quarterly   balance   sheets  and  income   statements   (for  the  quarter  and
year-to-date)  for Pledgor and Kokopelli  within fifteen (15) days after the end
of each fiscal quarter, in the form such statements are prepared in the ordinary
course of business.  In  addition,  within sixty (60) days after the end of each
fiscal year,  Pledgor shall deliver to Secured Party an audited  balance  sheet,
income  statement,  and  statement of cash flow (with all  auditor's  notes) for
Pledgor and Kokopelli.

     15.  ATTORNEYS'  FEES.  In the event of any action or  proceeding to compel
compliance  with,  or for  breach of,  any of the terms and  conditions  of this
Agreement,   the  prevailing   party  will  be  entitled  to  recover  from  the
non-prevailing  party  the  reasonable  costs  of such  action  or  proceedings,
including   without   limitation   reasonable   attorneys'   fees,   costs   and
disbursements.

     16. NOTICES.  Except to the extent otherwise set forth herein, all notices,
requests,  demands,  and other  communications  required or permitted under this
Agreement shall be in writing and shall be deemed to have been duly given,  made
and received when  personally  delivered,  or 3 days after deposit in the United
States mails,  first class postage prepaid,  return receipt  requested,  or when
sent by overnight express delivery with a signature required upon receipt, or 24
hours after being sent by  facsimile  with a confirmed  copy,  addressed  as set
forth below:

  If to Pledgor or Kokopelli:               If to Secured Party:

  7400 McDonald Suite 121                   1949 E. Camelback Suite 140
  Scottsdale, AZ 85250                      Phoenix, AZ 85061
  Attention:  President                     Attention: Beverly Goodman
  Fax: (480) 355-8149                       Fax: (480) 367-0540
<PAGE>
  With a copy to:                           With a copy to:

  Blume Law Firm, P.C.                      Dillingham & Reynolds L.L.P.
  Attn: Gary R. Blume                       Attn: James W. Reynolds
  11801 North Tatum Blvd. Suite 124         5080 North 40th Street Suite 335
  Phoenix, Arizona 85028                    Phoenix, AZ 85018
  Fax: (602) 494-7313                       Fax: (602) 468-0442

     Any party may alter the address to which communications or copies are to be
sent by giving  notice to such other  parties of change of address in conformity
with the provisions of this paragraph for the giving of notice.

     The parties  have  signed  this  Membership  Interest  Pledge and  Security
Agreement as of the date first noted above.

                                        PLEDGOR:

                                        FRANCHISE CAPITAL CORPORATION, a Nevada
                                        Corporation

                                        By:___________________________________

                                        Name: ________________________________

                                        Its:___________________________________

                                        SECURED PARTY:

                                        AZTECA WRAP FOODS, L.L.C., an Arizona
                                        limited liability company

                                        By:___________________________________

                                        Name: ________________________________

                                        Its:___________________________________

                                        ACKNOWLEDGMENT OF, CONSENT AND AGREEMENT
                                        TO THE TERMS OF THIS AGREEMENT:

                                        KOKOPELLI FRANCHISE COMPANY, L.L.C., an
                                        Arizona limited liability company

                                        By Franchise Capital Corporation, its
                                        Manager

                                        By:___________________________________

                                        Name: ________________________________

                                        Its:___________________________________
<PAGE>
STATE OF ARIZONA         )
                         ) ss.
County of Maricopa       )

     The foregoing instrument was acknowledged before me this ___ day of August,
2005, by  __________________________  as  _________________________ of Franchise
Capital Corporation, a Nevada corporation, on behalf of the corporation.

                                      ------------------------------------------
                                      Notary Public

My Commission Expires:

--------------------

STATE OF ARIZONA         )
                         ) ss.
County of Maricopa       )

     The  foregoing  instrument  was  acknowledged  before  me this  ____ day of
August,  2005, by  _________________  as  ______________________  of Azteca Wrap
Foods, L.L.C., an Arizona limited liability company, on behalf of the company.

                                      ------------------------------------------
                                      Notary Public
My Commission Expires:

---------------------

STATE OF ARIZONA         )
                         ) ss.
County of Maricopa       )

     The foregoing instrument was acknowledged before me this ___ day of August,
2005, by  _________________________  as ___________________ of Franchise Capital
Corporation, a Nevada corporation acting in its capacity as manager of Kokopelli
Franchise Company,  L.L.C., an Arizona limited liability  company,  on behalf of
the company.

                                      ------------------------------------------
                                      Notary Public
My Commission Expires:

---------------------

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