Document:

EX-10.27(c)

 [***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10). 
 Such excluded information is not material and would likely cause competitive harm to the
registrant if publicly disclosed. 
 Exhibit 10.27(c) 

Dated 15 December 2020 

AMENDMENT TO STEP-IN AGREEMENT 

Vertical Horizons, Ltd. 
 as
Buyer 
 Bank of Utah 

not in its individual capacity but solely as security trustee 

as Security Trustee 
 Airbus
S.A.S. 
 as Airbus 
 Pre-Delivery Payment Financing 
 A320neo Purchase Agreement dated 30 September 2011 

 

 THIS AMENDMENT AGREEMENT (this “Agreement”) is made as a deed on 15 December
2020 
 BETWEEN 
  

	(1)	 VERTICAL HORIZONS, LTD., a company incorporated pursuant to the laws of the Cayman Islands whose
registered address and principal place of business is at the offices of Intertrust SPV (Cayman) Limited, 190 Elgin Avenue, George Town, Grand Cayman, KY1 9005, Cayman Islands (the “Buyer”); 

 

	(2)	 BANK OF UTAH, not in its individual capacity but solely as security trustee for the Facility Agent and
the Lenders (the “Security Trustee”); and 

  

	(3)	 AIRBUS S.A.S., registered in France and having its registered office at 2 Rond-Point Emile Dewoitine,
31700 Blagnac, France (“Airbus”), 

 (each a “Party”, and together, the
“Parties”). 
 RECITALS 
  

	(A)	 In connection with the pre-delivery payment financing of thirty-four (34) A320neo aircraft and seven
(7) A321neo aircraft, Frontier, the Buyer and Airbus entered into an amended and restated assignment and assumption agreement dated 19 March 2020, which has been amended by an agreement between the same parties dated 4 May 2020 (the
“Assignment and Assumption Agreement”); and the Parties entered into an amended and restated step-in agreement dated 19 March 2020, which has been amended by an agreement between the Parties dated 4 May 2020 (the
“Step-In Agreement”). 

  

	(B)	 Pursuant to an assignment, re-assignment and amendment agreement dated
on or about the date hereof and made between Frontier, the Buyer and Airbus, certain aircraft have been assigned from the Purchase Agreement to the Assigned Purchase Agreement (the “Assignment”), certain Aircraft have been re-assigned from the Assigned Purchase Agreement back to the Purchase Agreement (the “Re-Assignment”) and the Assigned Purchase has been amended (the
“Amendment”). 

  

	(C)	 In connection with the Assignment, the Re-Assignment and the Amendment,
the Parties wish to amend the Step-In Agreement in accordance with the terms and conditions of this Agreement. 

 IT IS AGREED AS
FOLLOWS: 
  

	1.	 INTERPRETATION 

 

	1.1	 In this Agreement (including the recitals), unless the context otherwise requires or unless otherwise defined
or provided for in this Agreement, capitalised words and expressions shall have the respective meanings ascribed to them in the Step-In Agreement. 

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

	1.2	 The provisions of clause 1.2 of the Step-In Agreement shall apply to this Agreement as if set out herein in
full, mutatis mutandis. 

  

	1.3	 Each Party hereby agrees that each document executed by it and any document appended to any such document is
amended in accordance with this Agreement and that all of those documents shall be construed accordingly. 

  

	2.	 CONDITIONS PRECEDENT 

It is a condition to the amendment of the Step-In Agreement in accordance with the terms and conditions of this Agreement that Airbus shall
have received from both Frontier Holdings and Frontier the duly executed Guarantors’ confirmation. 
  

	3.	 AMENDMENT TO STEP-IN AGREEMENT 

 

	3.1	 On and from the date of the satisfaction of the conditions precedent pursuant to Clause 2 above (the
“Effective Date”), each of the following terms defined in clause 1.1 of the Step-In Agreement shall be construed as amended on or about the date hereof: 

 

	 	•	 	 PDP Loan Agreement 

  

	 	•	 	 Assignment and Assumption Agreement; 

 

	 	•	 	 Assigned Purchase Agreement; 

 

	 	•	 	 Re-Assignment and Assumption Agreement; 

 

	 	•	 	 Purchase Agreement 

  

	 	•	 	 Re-Assigned Purchase Agreement; and 

 

	 	•	 	 Guarantees. 

  

	3.2	 On and from the Effective Date, in clause 1.1 of the Step-In Agreement,
the following definitions shall be amended and restated as follows: 

 “A320neo Airframes means, as the context
requires, all or any of the twenty-two (22) Airbus A320neo aircraft which are the subject of this Agreement and bearing CAC-IDs [***] together with all Parts
incorporated in, installed on or attached to such airframes on the respective Delivery Dates of such airframes. 
 A320neo Incremental
Airframes means, as the context requires, all or any of the three (3) Airbus A320neo aircraft which are the subject of this Agreement and bearing CAC-IDs [RESERVED] together with all Parts
incorporated in, installed on or attached to such airframes on the respective Delivery Dates of such airframes. 

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

 A321neo Airframe means as the context requires, all or any of the twenty-four
(24) Airbus A321neo aircraft which is the subject of this Agreement and bearing CAC-IDs [***] together with all Parts incorporated in, installed on or attached to such airframe on its Delivery
Date.” 
  

	3.3	 On and from the Effective Date, in clause 1.1 of the Step-In Agreement,
the following definitions shall be amended and reinstated as follows: 

 “Relevant Documents means this
Agreement, the Assignment and Assumption Agreement, the Assigned Purchase Agreement, the Re-Assignment and Assumption Agreement, the Re-Assigned Purchase Agreement, each
Guarantee, the Security Assignment and any agreement or document amending or supplementing the foregoing from time to time (and, individually, each a Relevant Document).” 

“Re-Assignment and Assumption Agreement means the
re-assignment and re-assumption agreement in respect of the Assigned Purchase Agreement dated 23 December 2014 and entered into between Frontier, the Buyer and
Airbus with respect to the re-assignment to Frontier and reassumption by Frontier of rights, interests, obligations and liabilities under the Assigned Purchase Agreement in respect of the Relevant Aircraft (as
defined therein), and as amended or supplemented from time to time.” 
  

	3.4	 On and from the Effective Date, schedule 1 (Pre-Delivery Payments,
Scheduled Delivery Months) to the Step-In Agreement shall be amended and restated as set forth in Schedule 1 hereto. 

 

	4.	 AMENDMENT TO THE FORM OF REPLACEMENT PURCHASE AGREEMENT 

 

	4.1	 On and from the Effective Date, the table in clause 9.1.1 of schedule 4 (Form of Replacement Purchase
Agreement) to the Step-In Agreement shall be amended and restated as follows: 

  

									
	[***]	  	[***]	  		  	[***]
		  		  		  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

									
	[***]	  	[***]	  		  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]

  

	4.2	 On and from the Effective Date, the table in exhibit D of schedule 4 (Form of Replacement Purchase
Agreement) to the Step-In Agreement shall be amended and restated as per Schedule 2 hereto. 

  

	4.3	 The Buyer’s obligation to notify the Security Trustee of the Delivery Deferral (under clause 4.2(a) of the
Step-In Agreement) shall be deemed to be fulfilled upon the Effective Date. 

  

	4.4	 On and from the Effective Date, clause 3.1 (Airframe Base Price) of schedule 4 (Form of Replacement
Purchase Agreement) to the Step-In Agreement shall be amended and restated as follows: 

“3.1 Airframe Base Price The A320 Airframe Base Price for the Aircraft scheduled to be delivered in the year [***] and
equipped with CFM International LEAP-1A26 engines is [***] ([***]). 
 The A321 Airframe Base Price for the Aircraft scheduled to be
delivered in the year 2022 or 2023 and equipped with IAE PW1133G-JM engines is [***] ([***]). 

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

 Such A320 Airframe Base Price and A321 Airframe Base Price have each been established in
accordance with the average economic conditions prevailing in [***].” 
  

	4.5	 On and from the Effective Date, in clause 0.1 of schedule 4 (Form of Replacement Purchase Agreement) to
the Step-In Agreement, the definitions of “A320 SCN Budget” and “A321 SCN Budget” shall be amended and restated as follows: 

“A320 SCN Budget in respect of each A320 Aircraft scheduled to be delivered in the year [***] means the amount of [***] ([***]),
being the cost in delivery condition [***] Dollars of the SCNs which the Buyer and the Seller have assumed to be applicable to each A320 Airframe as delivered hereunder and which cost is included in the Airframe Base Price set out in Clause
3.1.” 
 “A321 SCN Budget means the amount of [***] ([***]), being the cost in delivery condition [***] Dollars of the SCNs
which the Buyer and the Seller have assumed to be applicable to each A321 Airframe as delivered hereunder and which cost is included in the Airframe Base Price set out in Clause 3.1.” 

 

	4.6	 On and from the Effective Date, Part 1 of Exhibit A to schedule 4 (Form of Replacement Purchase
Agreement) to the Step-In Agreement shall be amended and restated as per Schedule 3 hereto. Accordingly reference to “Exhibit A” in the table of contents of schedule 4 (Form of Replacement
Purchase Agreement) to the Step-In Agreement shall be amended and restated as follows: 

  

	 	“Exhibit A	 Part 1 – Airframe Price Revision Formula 

(for Aircraft scheduled to be delivered in the year [***]) Part 2A – Propulsion System Price Revision Formula – CFM International

 Part 2B –Propulsion System Price Revision Formula – IAE LLC” 

 

	5.	 MISCELLANEOUS 

 

	5.1	 Each party repeats its representations and warranties under the Step-In Agreement on the date hereof.

  

	5.2	 The provisions of clause 13 (Notices) to (and including) clause 21 (Cape Town Convention) of the
Step-In Agreement shall apply to this Agreement as if set out herein in full, mutatis mutandis. 

  

	5.3	 The Step-In Agreement shall be deemed to be supplemented and amended by this Agreement to the extent herein
provided with all other provisions thereof remaining unchanged, and as so supplemented and amended shall continue in full force and effect. 

  

	5.4	 In the event of any inconsistency between the terms and conditions of the Step-In Agreement and the present
Agreement, the latter shall prevail to the extent of such inconsistency, whereas the part not concerned by such inconsistency shall remain in full force. 

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

	5.5	 This Agreement is governed by English law. 

 

	5.6	 The provisions of clause 22 (Governing Law and Jurisdiction) and the provisions of clause 23 (Service
of Process) of the Step-In Agreement shall apply to this Agreement as if set out herein in full, mutatis mutandis. 

 IN
WITNESS whereof each of the Parties has executed this Agreement as a deed the day and year first before written. 

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

 SCHEDULE 1 

Schedule 1 
 Pre-Delivery Payments, Scheduled Delivery Months 

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

 SCHEDULE 2 

Exhibit D 
 Pre-Delivery Payments 

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

 SCHEDULE 3 

Exhibit A 
 Part 1

 Airframe Price Revision Formula 

(for Aircraft Scheduled to be Delivered in the year [***]) 

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

 Execution Page (1/3) 

Amendment to Step-In Agreement 

 

					
	 Executed as a deed by
 Vertical Horizons,
Ltd.
 and signed by Evert Brunekreef
  

Its director
 being a person/persons who in

accordance with the laws of the Cayman
 Islands is/are acting
under the authority of
 the company
 in the presence
of:
	 	 )
 )

)
 )

)
 )

)
 )
	  	  
  
  

/s/ Evert Brunekreef
  

			
	 Name:
  

Address:
	  	 /s/ Matthew Rich

Matthew Rich
 190 Elgin Avenue, George Town,

Cayman Islands, KY1-9005, Grand Cayman

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

 Execution Page (2/3) 

Amendment to Step-In Agreement 
  

					
	 Executed as a deed by

Bank of Utah, not in its individual
 capacity but solely
as Security Trustee
 and signed by Michael Arsenault
  

its Vice President
 being a person/persons who in

accordance with the laws of the State of
 Utah is/are acting under
the authority of
 the company
 in the presence of:
	 	 )

)

)

)

)

)

)

)

)

)
 )
	  	  
  
  

/s/ Michael Arsenault

	  
 Name:

 
 Address:
	 	 /s/ Deborah Gough

Deborah Gough
 Legal Assistant

50 South 200 East
 Salt Lake City, Utah 84111

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP Financing 

 Execution Page (3/3) 

Amendment to Step-In Agreement 
  

					
	 Executed as a deed by
 Airbus
S.A.S.
 and signed by Benoît de Saint-Exupéry
  

its Senior Vice President, Contracts
 being a person/persons who
in
 accordance with the laws of France is/are
 acting under the
authority of the company
 in the presence of:
	 	 )

)

)

)

)

)

)

)
	  	  
  
  

/s/ Benoît de Saint-Exupéry

 

	 Name:
  

Address:
	 	 /s/ Fanny Lopez

Fanny Lopez
 1 Rond Point Maurice Bellonte

31707 Blagnac, France

  
 Amendment to Step-In Agreement

 Vertical / BoU / Airbus – PDP FinancingEX-10.28

 Exhibit 10.28 

 

			
	

	  	CLIFFORD CHANCE US LLP

 EXECUTION VERSION 

Dated as of December 23, 2014 

FRONTIER AIRLINES, INC. 
 and 

VERTICAL HORIZONS, LTD. 
  

 
 SUBORDINATED
LOAN AGREEMENT 
  
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 Clause 1.
	 	Definitions and Interpretation	  	 	1	 
			
	 Clause 2.
	 	The Facility	  	 	3	 
			
	 Clause 3.
	 	Drawdown and Subordinated Promissory Note.	  	 	3	 
			
	 Clause 4.
	 	Interest and Consolidation.	  	 	3	 
			
	 Clause 5.
	 	Repayment.	  	 	4	 
			
	 Clause 6.
	 	Voluntary Termination.	  	 	4	 
			
	 Clause 7.
	 	Subordination.	  	 	4	 
			
	 Clause 8.
	 	Representations and Warranties.	  	 	5	 
			
	 Clause 9.
	 	Undertakings	  	 	6	 
			
	 Clause 10.
	 	Events of Default.	  	 	6	 
			
	 Clause 11.
	 	Miscellaneous.	  	 	7	 
			
	 Clause 12.
	 	Finance Party Not a Party.	  	 	9	 
			
	 Clause 13.
	 	Limitation on Liability	  	 	9	 

  
 - i - 

 SECOND SUBORDINATED LOAN AGREEMENT 

THIS SUBORDINATED LOAN AGREEMENT (the “Agreement”) is made as of December 23, 2014 between FRONTIER AIRLINES, INC., a
company incorporated in Colorado (the “Frontier”); and Vertical Horizons, Ltd., a Cayman Islands company (the “Borrower”). 

WHEREAS, Frontier has agreed to make available to the Borrower a term loan facility upon the terms and subject to the conditions contained in
this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 
 Clause 1.    Definitions
and Interpretation. 
 1.1    Definitions. Except as otherwise defined herein capitalized terms used herein
shall have the same meanings as ascribed to them in Annex A to the Credit Agreement and the following terms shall have the following meanings: 

“Advance” means each amount advanced by Frontier to the Borrower hereunder, from time to time, in an amount equal to: 

(a) the relevant amount of interest due by the Borrower under and pursuant to each Loan Certificate and the Credit Agreement (an
“Interest Advance”); 
 (b) any relevant Equity Contribution (a “Equity Contribution Advance”); and 

(c) any other amounts payable by the Borrower in connection with the Operative Documents, any other amounts required by the Borrower that are
payable by the Borrower in respect of its operational and corporate maintenance costs and any other amounts, costs, losses, charges or expenses of the Borrower of whatever nature that may be payable by the Borrower in connection with the Operative
Documents or otherwise (an “Amount Payable Advance”) from time to time; 
 “Commitment Period” means the
period from the date hereof until discharge in full of the Secured Obligations; 
 “Consent” includes any approval,
authorization, consent, exemption, license, permission or registration by, of or from any governmental or other authority or any other person; 

“Credit Agreement” means the credit agreement dated as of December 23, 2014 between the Borrower and, inter alia,
Bank of Utah, as Security Trustee; 
 “Drawdown Date” means each date upon which an Advance is made by Frontier hereunder;

 “Facility” means this loan facility the terms and conditions of which are
set out in this Agreement; 
 “Facility Amount” means an aggregate principal amount outstanding of not more than the total
amount of Advances to be made hereunder; 
 “Interest Payment Date” means the date falling 90 days after the date hereof
and each such date which falls at 90 day intervals thereafter, provided that, if any such date shall not be a Business Day, then the relevant Interest Payment Date shall be the next succeeding Business    Day; provided,
further, that no Interest Payment Date may extend past the Termination Date and the last Interest Payment Date shall be the Termination Date; 

“Interest Period” means with respect to an Advance and unless otherwise agreed by the Parties, a period of three months but
so that (i) the first such period shall commence on and shall include the Drawdown Date therefor and shall end on but shall exclude the first Interest Payment Date following such Drawdown Date and (ii) each subsequent period shall commence
on and shall include the last day of the previous one and end on but exclude the last day of that period; provided, that if any Interest Period ends on a day which is not a Business Day, the last day of the Interest Period shall be the
immediately preceding Business Day; provided further that the final Interest Period shall end on the final Interest Payment Date; 

“Margin” means the Applicable Margin, as defined in the Credit Agreement; 

“Party” means a party to this Agreement; 

“Security Agreement” means the mortgage and security agreement dated as of the date hereof between the Borrower, Bank of Utah
as Security Trustee and Citibank N.A. or an affiliate as Facility Agent; 
 “Senior Obligations” means the Secured
Obligations; and 
 “Subordinated Promissory Note” means a subordinated promissory note, executed on behalf of the
Borrower, substantially in the form set out in the Schedule to this Agreement. 
 1.2    Interpretation. In this
Agreement: 
 1.2.1    references to clauses are to be construed as references to the clauses of this Agreement; 

1.2.2    references to this Agreement (or to any specified provisions of this Agreement) or any other document shall be
construed as references to this Agreement, that provision or that document as in force for the time being and as amended in accordance with its terms, or, as the case may be, with the agreement of the relevant parties; 

1.2.3    words importing the plural shall include the singular and vice versa; 

1.2.4    headings to clauses or sections are for convenience only and are to be ignored in construing this Agreement; 

  
 - 2 - 

 1.2.5    references to a person shall be construed as including
references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof and shall include references to its successors, permitted transferees and permitted assigns; 

1.2.6    references to any statute or statutory provision include any statute or statutory provision which amends, extends,
consolidates or replaces the same, or which has been amended, extended, consolidated or replaced by the same, and shall include any orders, regulations, instruments or other subordinate legislation made under the relevant statute; 

1.2.7    liability includes any obligation or liability (whether present or future, actual or contingent, secured or
unsecured, as principal or surety or otherwise); 
 1.2.8    the words other and otherwise shall not be construed
ejusdem generis with any foregoing words where a wider construction is possible; and 
 1.2.9    the words herein,
hereof and hereunder, and words of similar import shall be construed to refer to a document in its entirety and not to any particular provision of such document. 

Clause 2.    The Facility. Upon the terms and subject to the conditions of this Agreement, Frontier agrees to make
available to the Borrower a term loan multi draw facility during the Commitment Period of up to but not exceeding the Facility Amount. 

Clause 3.    Drawdown and Subordinated Promissory Note. 

3.1    On each Interest Payment Date and as otherwise required by the Borrower, the relevant Interest Advance shall be made
by Frontier to the Borrower or, if directed by the Borrower, to the Security Trustee. 
 3.2    Any relevant Equity
Contribution Advance or, as the context may require, Amount Payable Advance shall be made by Frontier to the Borrower or as the Borrower may direct on the date upon which such equivalent amount is payable by the Borrower pursuant to or in connection
with the Operative Documents or otherwise. 
 3.3    On the date hereof, the Borrower shall issue the Subordinated
Promissory Note to Frontier. The Borrower shall be entitled to draw Advances against the Subordinated Promissory Note. Frontier shall record the amounts that are owing pursuant to this Agreement and the Subordinated Promissory Note but failure by
Frontier to do so shall not affect the Borrower’s obligation to repay the Advances made hereunder. 
 Clause
4.    Interest and Consolidation. 
 4.1    Subject always to the provisions of Clause 13 and
unless otherwise agreed by the Parties, interest: 
 4.1.1    will accrue from day to day and shall be calculated on the
basis of the actual number of days elapsed and a year of 360 days; 

  
 - 3 - 

 4.1.2    on each Advance will accrue during each Interest Period at a
rate per annum equal to Frontier’s cost of funds from time to time as notified by Frontier to the Borrower plus the Margin; 

4.1.3    on each Advance shall be capitalized on each Interest Payment Date; and 

4.1.4    accrued in respect of each Advance allocable to an Aircraft shall become payable on the Delivery Date of such
Aircraft. 
 4.2    If two or more Interest Periods relating to Advances provided hereunder end
at    the same time then on the last day of those Interest Periods those Advances may, at Frontier’s discretion, be consolidated into a single Advance. 

4.3    Unless otherwise agreed by the Parties, should any amount of principal and/or interest due hereunder be outstanding
on the Termination Date they shall become due and payable on such date. 
 Clause 5.    Repayment. The principal
balance of each Advance outstanding in respect of a specified Aircraft shall, unless otherwise agreed by the Parties, become due and payable on the Delivery Date of such Aircraft. 

Clause 6.    Voluntary Termination. Frontier may at any time without notice to the Borrower terminate its obligation
to make Advances hereunder following the satisfaction of the Senior Obligations. 
 Clause 7.    Subordination.

 7.1    Frontier acknowledges and agrees that its rights as lender in respect of the Facility shall be subject and
subordinate to and, at all times shall rank in priority behind, the rights, claims and/or interests now or hereafter existing of the Finance Parties under the Credit Agreement and each of the other Operative Documents entered into in connection
therewith. 
 7.2    The Parties acknowledge and agree that, notwithstanding anything to the contrary contained herein or
in the Subordinated Promissory Note, until the payment and discharge in full of the Senior Obligations: 
 7.2.1    the
Finance Parties shall be entitled to receive payment in full of all amounts constituting the Senior Obligations prior to Frontier becoming entitled to receive any payment under this Agreement; and 

7.2.2    the obligations of the Borrower under this Agreement are subject and subordinate to all other obligations of the
Borrower, under the Operative Documents and otherwise; and 
 7.2.3    in the event of any bankruptcy, insolvency or any
similar process of the Borrower or Frontier or in the event of any winding-up proceedings or any order seeking reorganization or liquidation of the Borrower or Frontier (whether or not involving insolvency or
bankruptcy) then (a) the Finance Parties shall be entitled to receive payment in full of all 

  
 - 4 - 

 amounts constituting the Senior Obligations prior to Frontier becoming entitled to receive, or make any
demand for, any payment under this Agreement, and to that end the Finance Parties shall be entitled to receive for application in payment thereof any payment or distribution of any kind or character, whether in cash or property or securities and
(b) any payment or distribution of assets of the Borrower of any kind or character, whether in cash, property or securities, by set off or otherwise, to which Frontier would be entitled but for the provisions of this Clause 7, including any
such payment or distribution that may be payable or deliverable by reason of the payment of any other indebtedness of the Borrower being subordinated to the payment of this Agreement, shall be paid by the liquidator, liquidating trustee, examiner or
agent or other person making such payment or distribution, whether a liquidator, trustee in bankruptcy, a receiver or liquidating trustee, examiner or otherwise, directly to the Security Trustee to the extent necessary to pay all the Senior
Obligations in full. 
 7.3    If any payment or distribution of any character, whether in cash, securities or other
property, in respect of this Agreement shall (despite these subordination provisions) be received by or on account of Frontier except as permitted under the Credit Agreement before all the Senior Obligations shall have been paid in full, including
any such payment or distribution arising out of the exercise by Frontier of a right of set off or counterclaim and any such payment or distribution received by reason of any other indebtedness of the Borrower being subordinated to this Agreement,
such payment or distribution shall be held in trust for the benefit of, and shall be paid over or delivered to, the Security Trustee by Frontier, to the extent necessary to pay all the Senior Obligations in full. 

7.4    The Borrower and Frontier shall, at any time and from time to time and at the Borrower’s expense
(a) promptly execute and deliver all further instruments, documents and agreements, and (b) take all further action that may be necessary or desirable, or that any Finance Party may reasonably request, in order to protect any right or
interest granted or purported to be granted hereby or to enable such Finance Party to exercise its rights and remedies under this Clause 7 or in respect of the Senior Obligations. 

7.5    Until all the Senior Obligations shall have been paid in full Frontier shall not (a) ask for, demand, sue for, take,
accept or receive from the Borrower, by set off or in any other manner, any amounts due hereunder or (b) seek any other remedy allowed at law or in equity against the Borrower for breach of its obligations under this Agreement. 

7.6    The Borrower and Frontier confirm and acknowledge that the terms of this Clause 7 shall survive the termination of
this Agreement. 
 Clause 8.    Representations and Warranties. To induce Frontier to enter into this Agreement
and to make each Advance, the Borrower hereby makes the following representations and warranties to Frontier as of the date hereof: 
 (a)
Status: it is duly formed, validly existing and in good standing under the laws of the Cayman Islands as a separate legal entity with limited liability and unlimited duration which is subject to suit in its own name and has the power and
authority to own its property and assets and to carry on its business as it is being conducted; 

  
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 (b) Power and authority: it has the power for and has taken all necessary action to
authorize the execution and delivery of this Agreement and the performance of its obligations hereunder and the transactions contemplated hereby; 

(c) Legal obligation: this Agreement constitutes or will when executed constitute its legal, valid and binding obligation enforceable
in accordance with its terms; 
 (d) Non-conflict: neither the execution or delivery of this
Agreement nor the borrowing of any portion of the Facility Amount nor the performance by it of any of its obligations under this Agreement will: 

(i) contravene any law or regulation or judicial or official order; 

(ii) conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement or other instrument to which
it is a party or is    subject or by which it is bound; 
 (iii) violate any provision of its memorandum or articles of
association or other constitutional documents; or 
 (iv) cause any limitation on its powers or the powers of its board of directors
(whether in respect of borrowings or otherwise) to be exceeded. 
 Clause 9.    Undertakings. 

9.1    The Borrower undertakes with Frontier that, so long as the Borrower remains under any obligation under this
Agreement or any amounts or obligations are outstanding under this Agreement: 
 (a) it will obtain, maintain in full force and effect and
comply with all Consents and any conditions thereof necessary or desirable for the carrying on by it of its business in the ordinary course and the use of the Facility; and 

(b) it will carry on and conduct its business in a proper and efficient manner and in conformity with all statutes, regulations and by-laws applicable thereto. 
 9.2    Frontier agrees to pay all costs, charges and
expenses associated with the winding up of the affairs of the Borrower and the corporate dissolution of the Borrower following the satisfaction of all of the Borrower’s obligations under the Operative Documents. 

Clause 10.    Events of Default. Upon the acceleration of any Loan consequent upon the occurrence of an Event of
Default or otherwise Frontier may by notice to the Borrower declare that: 
 (a) subject always to the subordination provisions of Clause
7.2, each Advance and all amounts of interest associated therewith has become immediately due and payable, whereupon the Borrower shall subject to the terms and conditions of this Agreement, forthwith repay the same together with all other sums
payable under this Agreement; and/or 

  
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 (b) subject always to the subordination provisions of Clause 7.2, each Advance has become
due and payable on demand, whereupon each Advance and all amounts of interest associated therewith and all other sums payable under this Agreement shall at all times after such declaration be due and payable forthwith on demand. 

Clause 11.    Miscellaneous. 

11.1    Consent and Agreement. In consideration of the Borrower granting the Frontier Option (as defined in the
Option Agreement), upon the exercise by Frontier of the Frontier Option in respect of an Aircraft, Frontier agrees that all Advances and other amounts payable hereunder in respect of such Aircraft shall be deemed satisfied. 

11.2    Assignment. Neither Party may assign or transfer all or any part of its rights, benefits and/or obligations
under this Agreement. 
 11.3    Waiver. No omission or delay on the part of Frontier in exercising any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or of any other right, power or privilege. The rights and
remedies herein provided are cumulative with, and not exclusive of, any rights or remedies provided by law. 

11.4    Severance. If at any time any provision hereof is or becomes illegal, invalid or unenforceable in any
respect under the law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions hereof nor the legality, validity or enforceability of such provision under the law of any other jurisdiction shall in any way be
affected or impaired thereby. 
 11.5    Costs. All costs and other expenses, including legal fees and expenses,
incurred by each of the Parties in connection with the negotiation, preparation and execution of this Agreement shall be for the account of the party incurring the same. 

11.6    Counterparts. This Agreement may be executed in any number of counterparts in which case this Agreement
shall be as effective as if all signatures and other executions on the counterparts were on a single copy of this Agreement and any Party may enter this Agreement by executing a counterpart. 

11.7    Notices. All notices, demands or requests given pursuant to this Agreement shall be in writing personally
delivered, or sent by facsimile or sent by internationally recognized overnight courier service and shall be deemed to have been received in the case of a fax at the time of dispatch with a confirmed transmission report, in the case of a letter when
delivered personally or five Business Days after it has been dispatched and in the case of overnight courier the morning of the day following its dispatch. All such notices should be sent to the following address: 

  
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 if to Frontier: 

7001 Tower Road 
 Denver, CO
80249 
 Attention: SVP – General Counsel 

Phone: (###) ###-#### 
 Email:
### 
 if to the Borrower: 

c/o Intertrust SPV (Cayman) Limited 190 Elgin Avenue 

George Town 
 Grand Cayman, KY1-9005 
 Cayman Islands 

Attention: Directors 
 Email:
### 
 Fax: +# ### ### #### 

Each of the Borrower and Frontier hereby irrevocably appoints and designates Corporation Service Company (in such capacity, the “Agent
for Service of Process”), having an address at Corporation Service Company, 80 State Street, Albany, New York 12207-2543, as its true and lawful
attorney-in-fact and duly authorized agent for the limited purpose of accepting service of legal process and the Borrower and Frontier agree that service of process upon
such party shall constitute personal service of such process on such person. The Borrower and Frontier shall maintain the designation and appointment of the Agent for Service of Process at such address until all obligations have been performed
hereunder. If the Agent for Service of Process shall cease to so act, the Borrower and Frontier shall immediately designate and shall promptly deliver to the Security Trustee evidence in writing of acceptance by another agent for service of process
of such appointment, which such other agent for service of process shall have an address for receipt of service of process in the State of New York and the provisions above shall equally apply to such other agent for service of process. 

11.8    Operational and Corporate Maintenance Costs. The Borrower shall, to the extent possible, pre approve the
amount of any operational and corporate maintenance costs with Frontier in advance of incurring the same and shall consider in good faith any suggestions or concerns Frontier may have in respect of the same. The Borrower shall use reasonable
endeavors to maintain its operational and corporate maintenance costs at a reasonable level. 
 11.9    Governing Law
and Jurisdiction. 
 11.9.1    This Agreement shall in all respects be governed by, and construed in accordance with,
the law of the State of New York. 

  
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 11.9.2    Each Party hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any
thereof, in any action or proceeding arising out of    or relating to this Agreement, or for recognition or enforcement of any judgment, and each Party irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each Party agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any Party may otherwise have to bring any action or proceeding relating to this Agreement against another Party
or its properties in the courts of any jurisdiction. 
 11.9.3    Each Party hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement    in any
court referred to in this Clause 11.9. Each Party hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

11.9.4    Each Party irrevocably consents to service of process in the manner provided for in Clause 11.7. Nothing in this
Agreement will affect the right of any Party to serve process in any other manner permitted by law. 
 11.10 EACH PARTY HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. 

Clause 12.    Finance Party Not a Party. Any Finance Party under the Credit Agreement may enforce the terms and
provisions of this Agreement that are expressed to be for the benefit    of or given by a Party to or in favor of such Finance Party. 

Clause 13.    Limitation on Liability. 

13.1    Notwithstanding anything contained in this Agreement to the contrary each party hereto agrees that, recourse
against the other party with respect to this Agreement shall be limited to the assets of such other party, as they may exist from time to time and each party agrees not to seek before any court or governmental agency to have any shareholder,
director or officer of the other party held liable, in their personal or individual capacities, for any actions or inactions of such party or any obligations or liability of such party under this Agreement other than in the case of gross negligence
or willful misconduct. 

  
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 13.2    Each party agrees that with respect to any actions or inactions
of the other party or any obligations or liability of the other party under this Agreement, it shall not commence any case, proceeding, proposal or other action under any existing or future law of any jurisdiction relating to the bankruptcy,
insolvency, reorganization, arrangement in the nature of insolvency proceedings, adjustment, winding-up, liquidation, dissolution or analogous relief with respect to the other party. 

13.3    Nothing in this Clause 13 shall: 

13.3.1    be construed to limit the exercise of remedies pursuant to this Agreement in accordance with its terms; or 

13.3.2    be construed to waive, release, reduce, modify or otherwise limit the obligations and liabilities of any
guarantor of the Borrower’s obligations or liabilities hereunder. 
 13.4    The provisions of this Clause 13 shall
survive the termination of this Agreement. 
  

  
 - 10 - 

 IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first above
written. 
  

			
	FRONTIER AIRLINES, INC.
		
	By:	 	 /s/ James G. Dempsey

		 	Name: James G. Dempsey
		 	Title: Chief Financial Officer

 [Citi/FrontierA32I/A320neo PDP 

Subordinated Loan Agreement] 

 
			
	VERTICAL HORIZONS, LTD., as Borrower
		
	By:	 	 /s/ Otelia Scott

		 	Name: Otelia Scott
		 	Title: Director

 [Citi/FrontierA321/A320neo PDP 

Subordinated Loan Agreement] 

 SCHEDULE 

Form of Subordinated Promissory Note

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