Document:

Exhibit 10.1

GUIDELINES
AND PROCEDURES FOR

TDS
OFFICER BONUSES FOR 2007 PERFORMANCE YEAR

The following discusses
the new procedure for awarding TDS officer bonuses. Starting with the 2007
performance year, seventy percent (70%) of each officer’s 2007 bonus will be
determined by his/her assessed performance. The remaining thirty percent (30%)
will be based on the business units’ financial results, as determined by their
performance on meeting the targets contained in their approved senior
management bonus programs for the performance year.

More specifically:

INDIVIDUAL
PERFORMANCE BONUS (70% OF THE TARGET VALUE):

·                 Decision Making
Components:

The supervising officer
will take into consideration the following factors:

·                  The
officer’s overall performance for the year, to include:

·                  His/her
assessed performance in carrying out his/her ongoing duties and
responsibilities, and all major initiatives for the year, including those that
arose during the performance year.

·                  Interrelated
with the above, the performance feedback received from the officer’s direct
reports/key associates.

·                  Such
additional factors as may be pertinent with respect to any particular officer’s
performance during the year. They could include such things as new and
substantive responsibilities assumed during the year; the caliber of the
executive’s leadership and development of his/her team, and overall supervisory
performance; and the development and maintenance of effective working
relationships with key associates, as well as across the enterprise and at all
organizational levels.

·                  As
applicable, the executive’s level of pay in comparison with those holding
similar positions in companies of comparable size across American industry will
be taken into consideration in determining his/her total compensation for the
year (salary and bonus).

·                 Rating Procedure:

An
officer’s bonus for individual performance will be determined in accordance
with the following rating system:

	
  Performance

  Category

  	
   

  	
  Bonus as a % of

  Target Bonus

  
	
  Far exceeds
  reasonable performance standards.

  	
   

  	
  140% - 170%

  
	
  Significantly
  exceeds reasonable performance standards.

  	
   

  	
  100% - 140%

  
	
  Meets/Almost
  meets reasonable performance standards.

  	
   

  	
  80% - 110%

  
	
  Significantly
  below reasonable performance standards.

  	
   

  	
  0% - 80%

  

COMPANY PERFORMANCE BONUS
(30%):

·                 Methodology:

This
bonus will be determined as follows:

	
  Company

  	
   

  	
  Bonus Program Results

  as a % of Target Results

  	
   

  	
  Weighting

  	
   

  	
  Bonus %

  Earned

  
	
  USCC

  	
   

  	
            %

  	
   

  	
  75%

  	
   

  	
            %

  
	
  TDS Telecom

  	
   

  	
            %

  	
   

  	
  25%

  	
   

  	
            %

  
	
  Total
  Bonus Earned

  	
   

  	
  100%

  	
   

  	
   

  

EXAMPLE OF HOW AN
OFFICER’S BONUS WOULD BE CALCULATED:

·                 Compensation and
Individual Performance Assumptions:

·                  Salary:
$300,000

·                  Target
Bonus Percentage: 30%

·                  Individual
Performance rating: 120%

·                 Target Bonus
Calculations Given Above Assumptions and New TDS Officer Bonus Ground Rules:

·                  For
Individual and Company Performance: $90,000 ($300,000 x .3 = $90,000).

·                  For
Individual Performance: $63,000 ($90,000 x .7 = $63,000).

·                  For
Company Performance: $27,000 ($90,000 x .3 = $27,000).

·                  For
USCC Bonus Program Performance: $20,250 ($27,000 x .75 = $20,250).

·                  For
TDS Telecom Bonus Program Performance: $6,750 ($27,000 x .25 = $6,750).

·                 Bonus Program
Results Assumptions:

·                  USCC
bonus program results, as a percent of targeted results: 90%

·                  TDS
Telecom bonus program results, as a percent of targeted results: 105%

·                 Bonus Earned
Given Above Assumptions:

·                  For
Individual Performance: $75,600 ($63,000 x 1.2).

·                  For
Company Performance:

·                  Bonus
percentage earned:

	
  Company

  	
   

  	
  Bonus Program 

  Results as a % of 

  Target Results

  	
   

  	
  Weighting

  	
   

  	
  Bonus %

  Earned

  
	
  USCC

  	
   

  	
  90%

  	
   

  	
  75%

  	
   

  	
  67.5%

  
	
  TDS Telecom

  	
   

  	
  105%

  	
   

  	
  25%

  	
   

  	
  26.3%

  
	
   

  	
   

  	
  100%

  	
   

  	
  93.8%

  

 

·                  Dollar
bonus earned: $25,300 ($27,000 x .938).

·                  For
Individual and Company Performance Total Bonus earned:

	
  

  	
  ·

  	
  For Individual Performance:

  	
  $ 75,600

  	
   

  
	
   

  	
  ·

  	
  For Company Performance:

  	
  $ 25,300

  	
   

  
	
   

  	
   

  	
   

  	
  $100,900

  	
   

  

In sum, with the above
discussed method of determining TDS officer bonuses, we will formally recognize
the important relationship between Company performance and the amount of TDS
officers’ bonuses. However, 70% of each TDS officers’ annual bonuses will be
determined by a thorough assessment of his/her performance. Thus, your
accomplishments and contributions, and those of the teams you lead, will
continue to be the primary determinant of your annual bonus awards.

The following is simply a
guideline. Notwithstanding anything to the contrary, 100% of the bonus is
discretionary and is not earned by the officer unless and until awarded and
paid.Exhibit 10.11

DELTA CONNECTION HOSTED PRORATE AGREEMENT

This
Delta Connection Hosted Prorate Agreement (the “Agreement”), dated as of March
12th,
2007, is entered into by and between Delta Air Lines, Inc., a corporation
organized under the laws of Delaware (“Delta”) and Big Sky Transportation Co.
(d/b/a Big Sky Airlines), a corporation organized under the laws of Montana (“Big
Sky”).

WHEREAS,
Delta and Big Sky wish to enter into this Agreement whereby Big Sky will carry
the “DL” code on the city pairs detailed in Annex B;

NOW,
THEREFORE, in consideration of the mutual covenants and promises in this
Agreement, Delta and Big Sky hereby agree as follows:

1.             DEFINITIONS

1.1           Capitalized terms used
in this Agreement, unless the context otherwise requires or expressly provides,
shall have the meanings set forth in Annex A attached hereto and
incorporated herein by this reference.

1.2           Industry
procedures set forth in the ATA Resolution 5.65 (Interline Traffic Agreement -
Passenger) for carriage solely within and between the United States and Canada
and any existing agreements between Delta and Big Sky relating to the
interlining of passengers and baggage shall apply to the provision of air
transport and the related transactions contemplated by this Agreement, except to
the extent inconsistent or in conflict with the terms of this Agreement.

2.             HOSTED PRORATE
SERVICE

2.1           Subject to the receipt
of all required approvals from all applicable Competent Authorities, commencing
on the date of completion of the implementation development described in
Section 3 hereof (but no later than April 8, 2007) (the “Effective Date”) Delta
shall place its two letter flight designator code (“DL”) on select flights
operated by Big Sky (“Hosted Prorated Flights”) to/from Boston Logan International
Airport (“BOS”) as identified in Annex B and connecting (as determined
by standard CRS criteria and minimum connect times determined by the parties)
to or from a Delta operated service.  The
parties shall mutually amend Annex B attached hereto and incorporated
herein by this reference from time to time during the term of this Agreement to
add and remove such flights as Hosted Prorate Flights covered by this
Agreement; provided, however, that Delta may remove the “DL” code from any
specific Hosted Prorate Flight upon sixty (60) days prior written notice to Big
Sky.  Except as provided otherwise in
this Agreement, the parties acknowledge that the rights of Delta to remove the “DL”
code specified in the immediately preceding sentences relates only to the
removal of the “DL” code from specific flights and is not intended to provide
Delta with an

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opportunity to
remove its code from all flights covered hereby.  The schedule planning of Hosted Prorate
Flights shall be done in coordination with Delta.

2.2           Detailed
procedures mutually agreed upon by the parties for implementing this Agreement
will be set forth in a procedures manual to be prepared by the parties in
conjunction with this Agreement (the “Procedures Manual”).  The Procedures Manual, including any amendments
or supplements thereto agreed in writing between the parties from time to time,
is incorporated by reference into and made a part of this Agreement; provided,
however, that in the event of a conflict between a provision of this Agreement
and any provision of the Procedures Manual, as amended and supplemented, the
terms of this Agreement shall prevail.

2.3           In the event of any
flight delay or cancellation of a Hosted Prorate Flight (other than due to
weather related causes) that requires a Codeshared Passenger to be
involuntarily rerouted or denied boarding and denied boarding compensation is
paid to such passenger, Big Sky shall bear all associated costs arising out of
such involuntarily rerouting or denied boarding. If the delay or cancellation is
due to weather and Big Sky is unable to reroute passengers to their final
destination, the passengers will be responsible for all ground costs and
expenses incurred by them, including, without limitation ground transportation,
accommodations, and meals.  Big Sky shall
do all possible to assist with obtaining a hotel and possibly a special “distressed”
rate for those passengers.

2.4           The Conditions of
Carriage of Delta (as may be modified from time to time) shall govern the
transportation of Codeshared Passengers on the Hosted Prorate FlightHosted
Prorate Flights, except that Big Sky’s operating rules and procedures shall
apply to all Hosted Prorate Flights and Big Sky shall have supervisory control
over all passengers during any Hosted Prorate Flight it operates.

2.5           Big Sky shall provide
all information which is reasonably requested by Delta for DL passengers with
reservations on Big Sky operated routes, including, for each route, the total
number of DL passengers booked on each flight

2.6           Big Sky has
final authority and responsibility concerning the operation and safety of its
aircraft and passengers and maintains control of the aircraft and operations at
all times.  .

2.7           Prior to the
implementation of the Hosted Prorate Flights and during the term of this Agreement,
Delta shall have the right, at its own cost, to review and observe Big Sky’s
operations of Hosted Prorate Flights and/or to conduct a reasonable safety,
security and/or service audits of Big Sky’s operations, manuals and procedures
reasonably related to the Hosted Prorate Flight (the “Delta Reviews”) at such
intervals as Delta shall reasonably request. 
The Delta Reviews shall be coordinated with Big Sky so as to avoid
disruptions to Big Sky’s operations. 
Notwithstanding the foregoing, Delta does not undertake any
responsibility or assume any liability for any aspect of Big Sky’s operations
nor shall Big Sky be entitled to assert any responsibility or assumption of
liability on the part of Delta for Big Sky’s safety, security, or operation of
the Hosted Prorate Flights.

2.8           Big Sky intends to
perform the Hosted Prorate Flights using Beechcraft 1900D aircraft and related
equipment under its own technical and operational control.  Subcontracting

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of such services
by Big Sky to a third party is not permitted without the prior written consent
of Delta, and Delta is not obligated to agree to place its code on
subcontracted flights.  The
responsibility and liability of Big Sky under the terms of this Agreement (including
insurance and indemnity obligations) shall not be affected by any such
subcontracting.

2.9           The Parties recognize
that operational safety is of paramount importance to the provision of
codesharing under this Agreement.  In the
event that Delta has reasonable grounds to be concerned about safety issues
relating to the operation of Hosted Prorate Flights, Delta shall have the right
immediately to (a) suspend codesharing on Big Sky’s flights and (b)
reaccommodate its passengers on Delta-operated flights or flights of other air
carriers.  If Delta reaccommodates its
passengers in accordance with this Section 2.9, Big Sky shall reimburse Delta
for all costs and expenses incurred by Delta in connection with all such
reaccomodations.

3.             IMPLEMENTATION
EXPENSES

3.1           Delta agrees
to provide Big Sky, at no additional cost, computerized reservations system
services with respect to the Hosted Prorate Flights.

3.2           Subject to
sections 2.3, 2.4,  3.1, 7.1, 7.2 and 7.3
(and all other sections of this Agreement where costs are specifically
allocated to either of the Parties), each party shall bear its own costs and
expenses of performance under this Agreement, including, without limitation,
costs and expenses associated with the following unless otherwise agreed in
writing by the parties:

(a)           any wholly internal
proprietary systems to support the automation of procedures and settlement
relating to the Hosted Prorate Flights (e.g., yield management, revenue
accounting, etc.), including routine maintenance thereof; and

(b)           roadside, exterior,
check-in, concourse, gate and baggage service signage placed at airports
and city ticket offices in locations served by the Hosted Prorate Flights in
order to facilitate travel on the Hosted Prorate Flights (i.e., Delta will pay
for Delta signage).

3.3           Each party
shall retain all right, title and interest in systems, software, signage,
equipment and facilities funded by it. 
Ownership of jointly funded items shall be determined by the parties in
advance of each specific project.

4.             PRICING AND
INVENTORY CONTROL AND PROCEDURES

4.1           All
Codeshared Passengers will be ticketed using available inventory within Delta’s
internal inventory control and reservation systems.  Big Sky will retain sole and ultimate control
over the management of seat inventory availability on Hosted Prorate Flights
which are operated by Big Sky; provided, however, Delta shall, until Big Sky
requests otherwise, manage for Big Sky the seat inventory availability,
overbooking levels, and fare value levels by class for the Hosted Prorate
Flights, based on Delta’s commercially reasonable judgment and existing market
conditions at the time.

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4.2           All
fares on inventory on the Hosted Prorate Flights shall be published as Delta
fares.  Big Sky will retain sole and
ultimate control over pricing levels for local markets traveling on Hosted
Prorate Flights only;  provided, however,
Delta shall, until Big Sky requests otherwise, manage for Big Sky the local
market fares based on Delta’s commercially reasonable judgment and existing
marketing conditions at the time.  Delta
will retain sole and ultimate control over fares that travel over Hosted
Prorate Flights and connect to another Delta marketed flight.

4.3           Delta shall
normally be responsible for ticketing its own customers under this
Agreement.   However, in the event that time
does not allow for ticketing through an agency ticket delivery service, then,
Big Sky will, at Hub and feeder airports specified in Annex B, provide
ticketing on Delta ticket stock in conformance with the Procedures Manual.

5.             MARKETING AND
PRODUCT DISPLAY

5.1           The Hosted Prorate
Flights will be marketed and promoted by Delta or Big Sky only under the “DL”
flight designator code.  Each party shall
ensure that its respective advertising and promotions shall comply with all
applicable governmental laws, rules and regulations.  Delta and Big Sky shall comply with 14 C.F.R.
Parts 257, 258, and 399.88 and any other applicable rules regarding the
disclosure and holding out of Hosted Prorate Flights provided for herein.

5.2           Each of Delta and Big
Sky may identify the Hosted Prorate Flights, to the extent permitted by
governmental rules and regulations, in Airline Guides, timetables, CRSs and
Reservations Systems using Delta’s flight designator code.  Each party shall bear its own costs incurred
for the publication of Hosted Prorate Flights or connections to and from such
flights in Airline Guides, CRSs and Reservation Systems.

6.             TRAFFIC DOCUMENT
ISSUANCE AND SETTLEMENT

6.1           Passenger traffic
documents for use on the Hosted Prorate Flights will be issued by either party
as “DL” only, or by third parties with whom Delta from time to time has
interline traffic agreements.

6.2           All Hosted Prorate
Flights will be hosted within Delta’s ticketing and operations systems and will
only be displayed and sold in external and internal distribution channels under
Delta’s “DL” flight designator code.

6.3           All tickets on Hosted
Prorate Flights shall be uplifted by Big Sky or representative of Big Sky and
all tickets and/or ticketing information shall be sent to Delta in accordance
with the Procedure Manual.  Delta will be
responsible for all revenue accounting for the Hosted Prorate Flights and will
settle with Big Sky or the applicable third-party Ticketing Carrier, as
applicable, using the normal interline settlement process of the ACH.

6.4           Delta Tickets issued by
Delta or Big Sky for all itineraries shall be settled in accordance with the
Big Sky / Delta Bilateral Prorate Agreement of even date herewith and the
Settlement Terms and Conditions set forth in Annex D attached hereto and
incorporated

 4
 

herein.  Delta Tickets issued by parties other than
Delta or Big Sky shall, except for exceptional items provided for in Section
6.4 below, be settled in accordance with any proration or similar agreements
then in force between Delta and the Ticketing Carrier.

6.5           To support interline
billing to third parties and involuntary rerouting of Delta Tickets by Big Sky,
Delta will allow Big Sky to endorse “DL” international tickets on OAL tickets
only in cities where Delta does not have representation, and when the rerouting
is caused by irregular operations (e.g. misconnects, delayed or canceled
flights).  In all other instances, normal
endorsement procedures shall apply. 
Notwithstanding the foregoing, an endorsement shall not be required for
international flights rerouted on other Delta or Delta codeshare flights.

7.             FACILITIES

7.1           The parties
acknowledge the importance of maintaining functional and accurate signs
identifying Big Sky and Delta, as appropriate, to facilitate passenger
convenience and to avoid confusion at airports served by the Hosted Prorate
Flights.  The parties shall mutually
agree on the placement, positioning and size of such signs, subject to the
approval of the relevant airport authority or other lessors.  Delta shall, at its sole cost and expense,
arrange for all airport signage identifying Delta and the Hosted Prorate
Flights.

7.2           Big Sky
shall (to Delta’s reasonable satisfaction) provide or arrange for the following
services, equipment and facilities at the Hub and Feeder Airports indicated on
Annex B at its own cost unless otherwise stated herein:

(1)           Security
screening in accordance with FAA rules applicable to passengers connecting to
Delta flights in a sterile concourse without further security screening at the
Hub.

(2)           Security
screening at the Hub, when necessary, for onward movement on Big Sky.

(3)           All ground
services, equipment, personnel, and facilities, except for those specific items
Delta agrees in writing to provide.

(4)           All required
government approvals, route authorities, licenses, and the like that may be
required by any local, state, or federal government entities or by foreign
governments for service to / from the feeder airports.

7.3           Notwithstanding
the provisions of Section 7.2 above, Delta agrees to:

(1)           Provide Big Sky ground
handling services for Hosted Prorate Flights at BOS and any Delta-managed
outstation at preferred rates so as to cover Delta direct expenses only.

(2)           Allow Big Sky to
utilize Delta rates (when permissible) for expense items such as fuel
purchasing.

 5
 

(3)           Share the
implementation costs equally with Big Sky on any station costs associated
with starting a new Delta station upon the mutual agreement to add the new
Delta station.

(4)           Not require Big Sky to
paint the aircraft operating the Hosted Prorate Flights in Delta-branded
livery, provided the chosen livery is a neutral livery reasonably satisfactory
to Delta.  If Big Sky chooses to paint such aircraft in Delta-branded
livery, Big Sky shall be solely responsible for all expenses associated
therewith.

8.             TRAINING

8.1           Except as otherwise
agreed, each party shall provide or arrange, at its own cost and expense, all
initial and recurring training of its personnel (and its travel agents) to
facilitate the Hosted Prorate Flights and operations at airports served by the
Hosted Prorate Flights, including reservations and ticket offices and other
points of contact between the parties and the public.  This training shall include passenger
service, reservations and sales activities and in-flight service
involving the Hosted Prorate Flights, all as more fully described in the
Procedures Manual.

8.2           The parties shall share
any training materials developed to support the Hosted Prorate Flights;
provided that the copyright and all other proprietary rights to any materials
exchanged shall remain with the party who originally developed such materials.

9.             SECURITY

The parties shall
cooperate in matters of security procedures, requirements and obligations at
all airports served by the Hosted Prorate Flights in accordance with the
Procedures Manual.  Big Sky reserves the
right to apply at its sole expense the provisions of its own security programs
to the carriage of all passengers, baggage and cargo on board the Hosted Prorate
Flights.  Such provisions may include any
then applicable procedures used for the physical screening of passengers,
baggage or cargo, interviewing of passengers and/or selective loading of
baggage or cargo.

10.           AIRCRAFT
MAINTENANCE

Big
Sky shall have sole responsibility for the maintenance of its leased and owned
aircraft and other equipment used in connection with the Hosted Prorate
Flights.  Maintenance of such aircraft
and equipment must, at a minimum, comply with the standards imposed by the
relevant aeronautical authorities.

11.           {Reserved.}

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12.           FREQUENT FLYERS

12.1         Delta may award frequent
flyer credits to Codeshared Passengers who are members of Delta’s frequent
flyer program (“SkyMiles”).  SkyMiles
members will have the right to redeem miles for program awards, including
awards for travel on Hosted Prorate Flights, in a manner consistent with the
SkyMiles program.  Big Sky agrees to
honor all Delta frequent flyer (SkyMiles) award tickets booked for travel on a
Codeshare Flight.  Delta shall not be
required to pay Big Sky any compensation in connection with such travel on
SkyMiles award tickets.

12.2         Delta and Big Sky agree
that all SkyMiles award tickets will be allowed on Hosted Prorate Flights
Hosted Prorate Flights.  Delta and Big
Sky agree to review this policy from time to time.

12.3         Delta agrees to provide
flown award seat travel information as part of regular flown traffic and
revenue reports agreed upon to be provided to Big Sky for revenue accounting
and revenue management purposes.

13.           TRADEMARKS AND
CORPORATE IDENTIFICATION

 13.1        Each of Delta and Big Sky acknowledges for all
purposes that any and all logos, trademarks, service marks and tradenames of
the other, whether registered or not, are and shall at all times remain the
exclusive property of the other and may not be used without the prior written
consent of such party, except as set forth herein.  Each of Delta and Big Sky further
acknowledges that any goodwill or other rights which arise as a result of the
use by it of the other party’s marks as permitted under this Agreement shall
accrue solely to the benefit of the party or Affiliate of the party owning such
marks, whether registered or not.  Should
any right, title or interest in the logos, trademarks, service marks or
tradenames of a party become vested in the other party, the latter party shall
hold such right, title and interest in trust for the benefit of the former
party and shall, at the request of the former party, promptly and
unconditionally assign such right, title and interest to the former party
without royalties or compensation of any kind.

13.2         Each of Delta and Big Sky
hereby grants to the other, a non-exclusive, non-transferable,
royalty-free license for the term of this Agreement to use their
respective service marks (“Delta” and “Delta Connection” for Delta and “Big Sky”
for Big Sky, each a “Licensed Trademark”), subject to the terms and conditions
set forth in this Section 13. This license is limited to the use of the
Licensed Trademarks in connection with the advertising and promotion of the
Hosted Prorate Flights contemplated by this Agreement.

13.3         Each party agrees to use
the Licensed Trademarks only in a manner approved in advance and in writing by
the party owning or possessing the right to license such Licensed
Trademarks.  Each Licensed Trademark
shall be marked with an ® or SM or other symbol, as appropriate, and reference
a legend indicating that “Delta is a licensed service mark of Delta Air Lines,
Inc.”, or “Big Sky is a service mark of Big Sky Transportation Co.”, as the
case may be, or similar words to that effect.

13.4         Each party agrees that
all advertising and promotional materials bearing the Licensed Trademarks in
relation to air transport services contemplated by this Agreement shall

 7
 

meet the quality
and presentation standards as set forth by the party owning the relevant
Licensed Trademark.

13.5         Each party agrees that
all advertising, promotional and other materials bearing the other party’s name
or Licensed Trademark, shall be submitted for such other party’s prior review
and approval before printing, publishing, or distributing any such
material.  Each party’s Licensed
Trademark must appear exactly as set forth in specifications provided by such
party.  Once a party has approved a
specific type of advertisement (e.g., the use of Delta’s name or Licensed
Trademark in Big Sky’s airline timetable) the other party may continue to use
such party’s name or Licensed Trademark in the same format during the term of
this Agreement.  At either party’s
direction, the other party shall cause the withholding, discontinuance, recall
or cancellation, as appropriate, of any advertising or promotional material not
approved by such party that differs significantly from that approved by such
party or that is put to a use or used in a media not approved by such
party.  Each party reserves the right to
refuse to participate in any advertising or promotional materials proposed by
the other party.

13.6         Each party has sole
discretion to determine the acceptability of both the quality and presentation
of advertising and promotional materials using its Licensed Trademark.

13.7         Each party is responsible
for providing to its own authorized agents and airport locations the agreed
promotional materials bearing the Licensed Trademarks.

14.           REPRESENTATIONS AND
WARRANTIES

14.1         Each of Delta and Big Sky
hereby represents and warrants to the other as follows:

(a)           It is a duly
incorporated and validly existing corporation, in good standing under the laws
of its jurisdiction of incorporation; is an air carrier duly authorized to act
as such by the government of its country of incorporation; and has the
requisite corporate power and authority to enter into and perform its
obligations under this Agreement.  The
execution, delivery and performance of this Agreement by it have been duly
authorized by all necessary corporate action. 
This Agreement has been duly executed and delivered by it, and, assuming
due authorization, execution and delivery by the other party hereto, this
Agreement constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms.

(b)           The execution, delivery
or performance by it of this Agreement, shall not: (i) contravene, conflict
with or cause a default under (A) any applicable law, rule or regulation
binding on it, or (B) any provision of its Charter, Certificate of
Incorporation, Bylaws or other documents of corporate governance; or (ii)
contravene, or cause a breach or violation of, any agreement or instrument to
which it is a party or by which it is bound, except where such conflict,
contravention or breach would not have a material adverse effect on it and its
Affiliates taken as a whole or on its ability to perform this Agreement.

(c)           The execution, delivery
and performance by it of this Agreement do not require the consent or approval
of, or the giving of notice to, the registration with, the recording or filing
of any documents with, or the taking of any other action in respect of, any
Competent Authority, any trustee or holder of any of its indebtedness or
obligations, any stockholder or 

 8
 

any other person
or entity, and except where failure to obtain or take such action would not
have a material adverse effect on it or a material adverse effect on the
transactions contemplated in this Agreement.

14.2         Each of the foregoing
representations and warranties shall survive the execution and delivery of this
Agreement.

15.           TERM

15.1         This
Agreement will become effective as of the Agreement Date and will continue in
effect until the fifth anniversary of the Agreement Date (“Initial Term”)
unless terminated earlier as elsewhere provided in this Agreement.  Thereafter; the term of this Agreement shall
automatically renew for successive terms of one (1) year (“Renewal Term(s)”).

15.2         This
Agreement may also be terminated as follows:

(a)           at any time by mutual
written consent of the parties hereto;

(b)           by either party if all
required approvals by the relevant Competent Authorities are not received
within 90 days of the date of the Agreement Date;

(c)           by the non-breaching
party upon the breach of a material term, agreement, covenant, representation
or warranty of this Agreement (other than a breach of Section 6.3 or 6.4 of
this Agreement or the failure to otherwise pay any sums due pursuant to this
Agreement), including a failure to comply with any material obligations and
procedures set forth in the Procedures Manual, provided that the non-breaching
party provides the breaching party at least thirty (30) days’ prior written
notice describing the alleged breach with as much particularity as reasonably
practicable.  Termination under this
Section 15.2(c) shall not be effective if the breaching party, (i) corrects
such breach within twenty five (25) days following receipt of such notice; or
(ii) if such breach cannot be corrected within such twenty five (25) day
period, take actions reasonably contemplated to correct such breach and which
do correct such breach no later than sixty (60) days following receipt of such
notice;

(d)           by the non-breaching
party upon the breach of Section 6.3 or 6.4 of this Agreement or the failure to
otherwise pay any sums due to the non-breaching party pursuant to this
Agreement by the other party, after the non-breaching party provides the
breaching party at least fifteen (15) days’ prior written notice describing,
with as much particularity as practical, the alleged breach and the breaching
party does not, within seven (7) days following receipt of such notice, correct
such breach, or is in good faith disputing the amounts billed hereunder;

(e)           at any time with immediate
effect by either party upon written notice if after the Agreement Date the
other party (i) makes an assignment for the benefit of creditors; (ii) suspends
the payment of or admits in writing its inability to pay, or generally fails to
pay, its debts as they become due; (iii) has suspended (as declared by a
clearing house) its transactions with banks and/or other financial institutions
or 

 9
 

proposes or commences a moratorium upon or extension
or composition of its debts; (iv) has issued against it any writ, execution,
process or abstract of judgment the results of which would  have a material adverse effect on it and
which is not dismissed, satisfied or stayed within sixty (60) days; (v) files a
petition for bankruptcy, composition, corporate reorganization, corporate
liquidation, or special liquidation proceedings; or (vi) ceases all or a
substantial part of its operations (other than due to Force Majeure, as defined
in Section 19);

(f)            by either party, upon
180 days written notice to the other party;

(g)           by Delta if any Delta
Review described in Section 2.7 is unsatisfactory;

(h)           by Delta, if either Big
Sky or its parent company, MAIR Holdings, Inc. (“MAIR”) agrees to merge into or
with any entity, agrees to be acquired by any entity, agrees to sell substantially
all of its assets or enters into a letter of intent, or similar document, to
merge into or with any entity, to be acquired by any entity, or to sell
substantially all of its assets (each such event, a “Merger”);

(i)            by Delta, upon the
acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (as amended, the “Exchange
Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of more than forty nine percent (49%) of
either (a) the then outstanding shares of common stock of Big Sky or MAIR, or
(b) the combined voting power of the then outstanding voting securities of Big
Sky or MAIR entitled to vote generally in the election of such entity’s
directors or managers, as applicable (each such event, a “Change of Control”);

(j)            by Delta if Big Sky’s
level of safety with respect to its operation of its aircraft or the Hosted
Prorate Flights is not reasonably satisfactory to Delta;

(k)           by Delta if Big Sky’s
FAA or DOT Certification is for any reason suspended or revoked or otherwise
not in full force and effect so as to permit Big Sky to operate  the Hosted Prorate Flights required under
this Agreement;

(l)            by Delta if Big Sky
shall commence operating an aircraft type which causes Delta to be in violation
of its collective bargaining agreement with its pilots; and

(m)          by Delta if Big Sky
fails to maintain a controllable completion rate of ninety-five percent (95%)
with respect to the Hosted Prorate Flights during any three (3) months during
any consecutive six (6) month period. 
For purposes of this Agreement, any cancellation of any Hosted Prorate
Flights due to either an extended force majeure event or an FAA-ordered cancellation
resulting from category 1 restrictions shall be excluded from the determination
of Big Sky’s completion rate of the Hosted Prorate Flights.

15.3         In the event this
Agreement is terminated by Delta pursuant to Section 15.2, Big Sky shall
cooperate with Delta in accommodating passengers with reservations or tickets
for travel on Big Sky flights under Delta’s “DL” designator code as follows:

 10

(a)           If, prior to the date
of the termination of this Agreement (the “Termination Date”), Delta publishes
a flight schedule in CRSs with competing nonstop or connecting service in one
or more city pair routes operated by Big Sky pursuant to this Agreement (a “DL
Operated Route”), then Big Sky shall cooperate with Delta in transferring all
passenger reservations from Hosted Prorate Flights to Delta on such DL Operated
Routes (and the corresponding tickets of such passengers).  Big Sky shall provide all such records in
accordance with specifications and procedures established by Delta, subject to
Big Sky’s approval which approval shall not be unreasonably withheld.  Delta and Big Sky shall cooperate to ensure
that such transfer occurs with a minimum of disruption and inconvenience to the
“DL” passengers.  Delta will notify such
passengers of the rerouting on Delta, and Big Sky shall not contact such DL
passengers.  For all such DL reservations
transferred to Delta, Delta shall not be responsible for any payment to Big Sky
for seats reserved for such passengers on the Big Sky operated flights.

(b)           If, on the Termination
Date, Delta does not publish a schedule in CRSs with competing nonstop or
connecting service in one or more city pair routes operated by Big Sky pursuant
to this Agreement (an “Big Sky Operated Route”), then, at Delta’s request, Big
Sky shall cooperate with Delta in accommodating such “DL” passengers identified
by Delta on Big Sky operated flights (including both “DL” passengers with
reservations and tickets for travel on Big Sky Operated Routes) on or after the
Termination Date until such time that the DL ticketed passengers have used
their tickets (or have obtained a refund for the purchase price of such
tickets).  Delta shall be responsible for
payment to Big Sky for seats reserved for such passengers on Big Sky Operated
Flights following the Termination Date.

16.           INDEMNIFICATION

16.1         Big Sky shall indemnify,
defend, and hold harmless Delta and its Affiliates and their respective
directors, officers, employees and agents (individually, a “Delta Indemnified
Party”) from and against any and all Damages arising out of, caused by, or
occurring in connection with (or alleged to arise out of, be caused by, or be
occurring in connection with):

(a)           the death of or injury
to persons, or delay or loss of or damage to property (including aircraft,
baggage or cargo) occurring while such persons or property are under the
control or in the custody of, or being transported by, Big Sky (including, for
the avoidance of doubt, Damages arising out of the death of or injury to
Codeshared Passengers traveling on Delta Tickets that implement limits or
conditions of liability or jurisdictional rules with respect to passenger
claims that differ from those of Big Sky), except to the extent caused by the
negligence of a Delta Indemnified Party;

(b)           negligent acts or
omissions of a Big Sky Indemnified Party, which are in any way related to
services contemplated by this Agreement;

(c)           Big Sky’s breach of any
of its representations or warranties set forth in Section 14 of this Agreement;
or

 11
 

(d)           infringement of a third
party’s intellectual property or similar rights by Big Sky’s advertisements,
logos, trademarks, service marks or tradenames.

16.2         Subject to the
indemnities provided in Section 16.1, Delta shall indemnify, defend, and hold
harmless Big Sky and its Affiliates and their respective directors, officers,
employees, and agents (individually, an “Big Sky Indemnified Party”) from and
against any and all Damages (except as provided in Section 16.2(c)) arising out
of, caused by, or occurring in connection with (or alleged to arise out of, be
caused by, or occurring in connection with):

(a)           the death of or injury
to persons, or delay or loss of or damage to property (including aircraft,
baggage or cargo) occurring while such persons or property are under the
control or in the custody of, or being transported by, Big Sky, to the extent
caused by the negligence of a Delta Indemnified Party;

(b)           negligent acts or
omissions of a Delta Indemnified Party that are in any way related to services
contemplated under this Agreement;

(c)           passenger claims based
on Delta’s failure to properly issue and complete transportation documentation
in accordance with the provisions of the standard IATA or other applicable
ticketing procedures, including, without limitation, the failure to put a
proper notice of the limits of liability under the Warsaw Convention, as
amended, on such documentation (it being understood that in ticketing
Codeshared Passengers, Delta is entitled to apply the limits of liability
provided for in its own Conditions of Carriage); provided, however, that Delta
shall only be liable under this Section 16.2(c) for that portion of Damages
that are in excess of the Damages against which Big Sky would have been
required to indemnify Delta under Section 16.1(a) if Delta had properly
complied with all IATA ticketing procedures;

(d)           Delta’s
breach of its representations or warranties set forth in Section 14 of
this Agreement; or

(e)           infringement
of a third party’s intellectual property or similar rights by Delta’s
advertisements logos, trademarks, service marks or tradenames.

16.3         A party (the “Indemnified
Party”) that believes it is entitled to indemnification from the other party
(the “Indemnifying Party”) pursuant to the terms of this Agreement with respect
to a third party claim shall provide the Indemnifying Party with written notice
(an “Indemnification Notice”) of such claim (provided, however, that the
failure to give such notice shall not relieve the Indemnifying Party of its
obligations hereunder except to the extent that such failure is materially
prejudicial to the Indemnifying Party), and the Indemnifying Party shall be
entitled, at its own cost and expense and by its own legal advisors, to control
the defense of or to settle any such third-party claim.  The Indemnifying Party shall have the right
to elect to settle any such claim for monetary damages only, subject to the
consent of the Indemnified Party; provided, however, if the Indemnified Party
fails to give such consent to a settlement that has been agreed upon by the
Indemnifying Party and the claimant in question within twenty (20) days of
being requested to do so, the Indemnified Party shall assume the defense of
such claim or demand and regardless of the outcome of such matter, the
Indemnifying Party’s liability hereunder shall be limited to the amount of any
such proposed settlement.  If the
Indemnifying Party fails to take any action against the third-party claim that 

 12
 

is the subject of
an Indemnification Notice within thirty (30) days of receiving such
Indemnification Notice, or otherwise contests its obligation to indemnify the
Indemnified Party in connection therewith, the Indemnified Party may, upon
providing prior written notice to, but without the further consent of, the
Indemnifying Party settle or defend against such third-party claim for the
account, and at the expense, of the Indemnifying Party.  Except as set forth in this Section 16.3, the
Indemnified Party shall not enter into any settlement or other compromise or
consent to a judgment with respect to a third party claim to which the
Indemnifying Party has an indemnity obligation without the prior written
consent of the Indemnifying Party.

16.4         Each
Indemnified Party shall have the right, but not the duty, to participate in the
defense of any claim with attorneys of its own choosing and at its own cost,
without relieving the Indemnifying Party of any obligations hereunder.  In addition, even if the Indemnifying Party
assumes the defense of a claim, the Indemnified Party shall have the right to
assume control of the defense of any claim from the Indemnifying Party at any
time, and to elect to settle or defend against such claim; provided, however,
the Indemnifying Party shall have no indemnification obligations with respect
to such claim except for the costs and expenses of the Indemnified Party (other
than attorneys’ fees incurred in participating in the defense of such claim)
incurred prior to the assumption of the defense of the claim by the Indemnified
Party.

16.5         Each party further agrees
to indemnify, defend and hold harmless the other from and against any and all
Taxes (as defined in Section 18) and related assessments, as the case may be,
levied upon or advanced by the Indemnified Party, but that ultimately the
Indemnifying Party would be responsible for paying, which resulted from any
transaction or activity contemplated by this Agreement.

16.6         The rights and
obligations of the parties under this Section 16 shall survive the termination
or expiration of this Agreement.

17.           INSURANCE

17.1         Big Sky shall procure and
maintain for the benefit of Delta during the term of this Agreement with
insurance carriers of known financial responsibility, insurance of the type and
in the amounts listed below:

(a)           Airline Legal Liability
in respect of all operations, including but not limited to aircraft (owned and
non-owned) liability (including risks, hijacking and allied perils), passenger
and crew baggage and personal effects, funeral and repatriation expenses
(including crew), all expenses arising out of the Family Assistance Act (United
States) and/or similar regulations applying elsewhere in the world, cargo,
mail, hangarkeepers, comprehensive general liability, or its equivalent
including premises, products, completed operations, liquor law liability, and
contractual liability.  This insurance
must be primary without right of contribution from any insurance carried by
Delta to the extent of the indemnity specified in Section 16.1, and shall (i)
name Delta and the Delta Indemnified Parties as additional insureds to the
extent of the protections afforded Delta under the indemnity specified in
Section 16.1, (ii) contain a severability of interest clause and a breach of
warranty clause in favor of Delta, (iii) specifically insure Big Sky’s
indemnification obligations under this Agreement to the full extent of the
coverage

 13
 

provided by Big Sky’s policy or policies, and (iv)
contain a provision stating that Big Sky’s policy or policies are automatically
amended to comply with the laws and regulations of any local, federal, or other
governmental authority having jurisdiction over aircraft operated by Big Sky.

(b)           Big Sky shall maintain
a limit of liability of not less than USD $500,000,000 per any one occurrence
for each aircraft, including bodily injury, personal injury, property damage,
passenger (including Codeshared Passengers and other revenue and non-revenue
passengers) legal liability combined, over all coverages and in the aggregate
as applicable, but personal injury limited to USD $25,000,000 except with
respect to passengers (including Codeshared Passengers and other revenue and
non-revenue passengers).

(c)           Hull all risk
insurance, including war risk, and such policy shall include a waiver of
subrogation in favor of Delta to the extent of the indemnity specified in
Section 16.1.

(d)           Worker’s compensation
and employer’s liability insurance, or such other similar or equivalent
insurance carried outside of the United States, in accordance with statutory
limits.

17.2         Big Sky shall provide
Delta with certificates of insurance evidencing such coverage no less than
thirty (30) days prior to the commencement of the first Hosted Prorate Flight,
and thereafter within ten (10) Business Days of the date of any renewal of such
coverage.  The certificates must indicate
that the above coverage shall not be canceled or materially altered without
thirty (30) days’ advance written notice to Delta and that Delta shall be
notified of any expiration or renewal of such coverage.  The notice period in respect of war and
allied perils coverage shall be seven (7) days or such lesser period as is or
may be available in accordance with policy conditions.

18.           TAXES

18.1         Each party shall be
responsible for any net or gross income or franchise taxes (or taxes of a
similar nature) on the revenues or income or any measure thereof which is
attributable to it in connection with the sale of air transportation pursuant
to this Agreement.  Each party shall be
responsible for and pay such taxes on the portion of such revenues or income
attributable to it.

18.2         The party that is the
Ticketing Carrier shall collect, except as otherwise prohibited by law, all
Ticket Taxes relating to tickets sold or travel documents issued by it with
respect to air transportation pursuant to this Agreement.  The parties hereby agree as follows:

(a)           The Ticketing Carrier
shall collect, report and remit to the taxing authorities any non-interlineable
Ticket Taxes levied in connection with sales of the Hosted Prorate Flights.

(b)           The Ticketing Carrier
shall collect, report and credit to the account of Big Sky with ACH and
interlineable Ticket Taxes levied in connection with the sales of the 

 14
 

Hosted Prorate Flights.  Big Sky shall remit to the applicable tax
authorities all such interlineable Ticket Taxes.

18.3         If the Ticketing Carrier
is a third party, the parties shall use commercially reasonable efforts to
cause such third party to implement the foregoing provisions.

19            FORCE MAJEURE

Except
with respect to the performance of payment obligations under this Agreement,
neither party shall be liable for delays in or failure to perform under this
Agreement to the extent that such delay or failure (an “Excusable Delay”) (a)
is caused by any act of God, war, natural disaster, strike, lockout, labor
dispute, work stoppage, fire, serious accident, epidemic or quarantine
restriction, act of government or any other cause, whether similar or
dissimilar, beyond the control of that party; and (b) is not the result of that
party’s lack of reasonable diligence.  If
an Excusable Delay continues for twenty (20) consecutive days or any thirty
(30) days out of any forty-five (45) day period, the non-delayed
party shall have the right, at its option, to terminate this Agreement by
giving the delayed party at least thirty (30) days’ prior written notice.

20.           GOVERNING LAW

20.1         This Agreement shall in
all respects be governed by and construed in accordance with the laws of the
State of Georgia (without regard to its conflict of laws principles thereof)
including all matters of construction, validity and performance.

20.2         Each of the
parties irrevocably submits to the non-exclusive jurisdiction of the
United States District Court for the Northern District of Georgia, and of any
Georgia State Court in Atlanta, Georgia for purposes of any legal proceedings
arising out of or relating to this Agreement or any transactions contemplated
hereby or thereby.  Each party, to the
fullest extent it may do so under applicable law, irrevocably waives and agrees
not to assert, by way of motion, as a defense or otherwise, any claim that it
is not subject to the jurisdiction of any such court, any objection that it may
now or hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that such suit, action or
proceeding has been brought in an inconvenient forum.

21.           COVENANT TO COMPLY
WITH ALL LAWS

21.1         In performing its
obligations under this Agreement, each party shall, at its own cost and
expense, materially comply with, and have all licenses under, all applicable
federal, state, provincial and local laws of the United States, including rules
and regulations promulgated by the U.S. National Transportation Safety Board,
U.S. Department of Transportation, U.S. Federal Aviation Administration, and
the U.S. Department of Defense.

21.2         If either party has
notice that a provision of this Agreement is contrary to any applicable laws or
governmental regulations, that party shall immediately notify the other party
in writing, such notice to include a description of the perceived violation of
regulation and 

 15
 

supporting written
materials that facilitate the other party’s investigation of such perceived
violation.

22.           PUBLICITY

Except
as required by applicable law, neither party may issue any written public
release concerning this Agreement without the prior written consent of the
other party (which consent shall not be unreasonably withheld or delayed).

23.           CONFIDENTIALITY

23.1         Except as otherwise
provided below, each party shall ensure that its directors, officers,
employees, Affiliates and professional advisors (collectively, the “Representatives”),
at all times, maintain strict confidence and secrecy in respect of all
Confidential Information of the other party (including its Affiliates) received
directly or indirectly as a result of this Agreement.  If a party (the “Disclosing Party”) is
requested to disclose any Confidential Information of other party (the “Affected
Party”) under the terms of a subpoena or order issued by a court or
governmental body, it shall (a) notify the Affected Party immediately of the
existence, terms and circumstances surrounding such request, (b) consult with
the Affected Party on the advisability of taking legally available steps to
resist or narrow such request and (c) if any disclosure of Confidential
Information is required to prevent the Disclosing Party from being held in
contempt or subject to other legal penalty, furnish only such portion of the
Confidential Information as it is legally compelled to disclose and use
commercially reasonable efforts (at the cost of the party whose Confidential
Information is being protected) to obtain an order or other reliable assurance
that confidential treatment shall be accorded to the disclosed Confidential
Information.  Each party agrees to
transmit Confidential Information only to such of its Representatives as
required for the purpose of implementing and administering this Agreement, and
shall inform such Representatives of the confidential nature of the
Confidential Information and instruct such Representatives to treat such
Confidential Information in a manner consistent with this Section 23.1.

23.2         Within ninety (90) days
after the termination of this Agreement, each of Delta and Big Sky shall,
either deliver to the other party or destroy all copies of the other party’s
Confidential Information in its possession or the possession of any of its
Representatives (including, without limitation, any reports, memoranda or other
materials prepared by such party or at its direction) and purge all copies
encoded or stored on magnetic or other electronic media or processors, unless
and only to the extent that the Confidential Information is necessary for the
continued administration and operation of such party’s programs or is
reasonably necessary in connection with the resolution of any dispute between
the parties.

23.3         Each party acknowledges
and agrees that in the event of any breach of this Section 23; the Affected
Party shall be irreparably and immediately harmed and could not be made whole
by monetary damages.  Accordingly, it is
agreed that, in addition to any other remedy at law or in equity, the Affected
Party shall be entitled to an injunction or injunctions (without the posting of
any bond and without proof of actual damages) to prevent breaches or threatened
breaches of this Section 23 and/or to compel specific performance of this
Section 23.

 16
 

23.4         The confidential
obligations of the parties under this Section 23 shall survive the termination
or expiration of this Agreement.

24.           ASSIGNMENT

None
of the parties may assign or otherwise convey or transfer any of its rights
under this Agreement, or delegate or subcontract any of its duties hereunder,
without the prior written consent of the other party; provided however, that
either party may use Affiliates to fulfill backroom administrative and
technical functions under this Agreement.

25.           SEVERABILITY

If
any provision of this Agreement is or becomes illegal, invalid or unenforceable
under the law of any jurisdiction, such provision shall be severed from this
Agreement from the jurisdiction in question and shall not affect the legality,
validity or enforceability of the remaining provisions of this Agreement nor
the legality, validity or the enforceability of such provision under the law of
any other jurisdiction; unless, in the reasonable opinion of either
party, any such severance affects the commercial basis of this Agreement, in
which case the party shall so inform the other party and the parties shall
negotiate to agree upon modification of this Agreement so as to maintain the
balance of the commercial interests of the parties.  If, however, such negotiations are not
successfully concluded within ninety (90) days from the date a party has
informed the other that the commercial basis has been affected, either party
may terminate this Agreement by giving at least thirty (30) days’ prior written
notice to the other party.

26.           EXCLUSIVITY

Unless otherwise agreed in advance by Delta, no
Hosted Prorate Flight shall carry the flight designator code of any air carrier
other than Delta, including the flight designator code of Big Sky.

27.           RELATIONSHIP OF
PARTIES

The
relationship between Big Sky and Delta shall be that of independent contractors.  Each of Big Sky and Delta shall not have and
shall not represent to any other person that it has, any power, right or
authority to bind the other, or to assume, or create, any obligation or
responsibility, express or implied, on behalf of the other, except as expressly
required by this Agreement or as otherwise permitted in writing.  Nothing in this Agreement shall be construed
to create between Big Sky and Delta and/or their respective Representatives any
partnership, joint venture, employment relationship, franchise or agency.

28.           FURTHER ASSURANCES

Each
party shall perform such further acts and execute and deliver such further
instruments and documents at such party’s costs and expense as may be required
by 

 17
 

applicable laws,
rules or regulations or as may be reasonably requested by the other to carry
out and effectuate the purposes of this Agreement.

29.           MISCELLANEOUS

29.1         This Agreement contains
the entire agreement between the parties relating to its subject matter, and
supersedes any prior understandings or agreements between the parties regarding
the same subject matter.  This Agreement
may not be amended or modified except in writing signed by a duly authorized
representative of each party.

29.2         Unless otherwise
expressly required in this Agreement, all notices, reports, invoices and other
communications required or permitted to be given to or made upon a party to
this Agreement shall be given in accordance with the procedures set forth in
the Procedures Manual.

29.3         All rights, remedies and
obligations of the parties hereto shall accrue and apply solely to the parties
hereto and their permitted successors and assigns; there is no intent to
benefit any third parties, including the creditors of either party.

29.4         This Agreement may be
executed and delivered by the parties in separate counterparts, each of which
when so executed and delivered shall be an original, but all of which taken
together shall constitute one and the same instrument.

29.5         No failure to exercise
and no delay in exercising, on the part of any party, any right, remedy, power
or privilege hereunder, shall operate as a waiver thereof; nor shall any single
or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof of the exercise of any other right,
remedy, power or privilege.  The rights,
remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.  The failure of any party to insist upon a
strict performance of any of the terms or provisions of this Agreement, or to
exercise any option, right or remedy herein contained, shall not be construed
as a waiver or as a relinquishment for the future of such term, provision,
option, right or remedy, but the same shall continue and remain in full force
and effect.  No waiver by any party of
any term or provision of this Agreement shall be deemed to have been made
unless expressed in writing and signed by such party.

29.6         This Agreement is the product
of negotiations between Delta and Big Sky, and shall be construed as if jointly
prepared and drafted by them, and no provision hereof shall be construed for or
against any party by reason of ambiguity in language, rules of construction
against the drafting party, or similar doctrine.

29.7         Neither party shall be
liable for any exemplary, punitive, special or consequential damages, including
lost revenues, lost profits or lost prospective economic advantage, arising
from any performance or failure to perform under this Agreement, even if such
party knows or should have known of the possibility thereof, and each party
hereby releases and waives any claims against the other party regarding such
damages. FOR THE AVOIDANCE OF DOUBT THE PARTIES AGREE THE FOREGOING SHALL NOT
LIMIT A PARTY’S OBLIGATION TO 

 18
 

INDEMNIFY THE
OTHER IN ACCORDANCE WITH SECTION 16
FOR DAMAGES ARISING OUT OF OR RELATING TO A CLAIM, SUIT OR CAUSE OF ACTION BY A
THIRD PARTY.

29.8         Unless otherwise
expressly set forth in this Agreement, all notices, reports, invoices and other
communications required hereunder to be given to or made upon any party shall
be in writing, shall be addressed as provided below and shall be considered as
properly given and received:  (i) when
delivered, if delivered in person (and a signed acknowledgment of receipt is
obtained); (ii) one (1) Business Day after dispatch, if dispatched by a
recognized express delivery service which provides signed acknowledgments of
receipt within one (1) Business Day after dispatch; (iii) three (3) Business
Days after deposit in the U. S. mail, if sent by certified or registered first
class mail, postage prepaid, return receipt requested; or (iv) if transmitted
by facsimile, upon completion of transmission and upon confirmation by the sender
(by a telephone call to a representative of the recipient or by machine
confirmation) that the transmission was received.  For the purposes of notice, the addresses of
the parties shall be as set forth below; provided, however, that either party
shall have the right to change its address for notice to any other location by
giving at least three (3) Business Days prior written notice to the other party
in the manner set forth above.

- Addresses On
Next Page -

 19
 

 

	
  If to Delta Air Lines, Inc.:

  	
  Delta Air Lines, Inc.

  
	
   

  	
  1030 Delta
  Boulevard, Dpt. 941

  
	
   

  	
  Atlanta, Georgia
  30320

  
	
   

  	
  Attention:

  	
  EVP – Network Planning

  
	
   

  	
  Phone:

  	
  404-715-1601

  
	
   

  	
  Facsimile:

  	
  404-773-2087

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
  Delta Air Lines, Inc.

  
	
   

  	
   

  	
  1030 Delta
  Boulevard, Dpt. 986

  
	
   

  	
   

  	
  Atlanta, Georgia
  30320

  
	
   

  	
   

  	
  Attention:

  	
  EVP and General Counsel

  
	
   

  	
   

  	
  Phone:

  	
  404-715-6558

  
	
   

  	
   

  	
  Facsimile:

  	
  404-715-2233

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to Big Sky:

  	
  Big Sky Airlines

  
	
   

  	
   

  	
  1601 Aviation Place

  
	
   

  	
   

  	
  Billings, Montana 59106

  
	
   

  	
   

  	
  Attention:

  	
  President

  
	
   

  	
   

  	
  Phone:

  	
  406-247-3931

  
	
   

  	
   

  	
  Facsimile:

  	
  406-247-3972

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
  MAIR, Holdings, Inc.

  
	
   

  	
   

  	
  150 South Fifth Street

  
	
   

  	
   

  	
  Suite 1360

  
	
   

  	
   

  	
  Minneapolis, Minnesota 55402

  
	
   

  	
   

  	
  Attention:

  	
  General Counsel

  
	
   

  	
   

  	
  Phone:

  	
  612-333-0021

  
	
   

  	
   

  	
  Facsimile:

  	
  612-333-0590

  
					

 

 20
 

IN
WITNESS WHEREOF, the duly authorized representatives of the parties have
executed this Agreement as of the date first indicated above.

	
  BIG SKY TRANSPORTATION CO.

  	
  DELTA AIR LINES, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Fred deLeeuw

  	
   

  	
  By:

  	
  /s/ David Bishko

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Fred deLeeuw

  	
   

  	
  Name:

  	
    David Bishko

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  Director - Alliances

  	
   

  
												

 

Attachments:

Annex A  - 
Definitions

Annex B  -  City
Pairs

 21

ANNEX A

DEFINITIONS

“ACH”
means Airlines Clearing House, Inc., a clearing house which administers and
implements revenue settlement between carriers by reference to ACH’s Manual of
Procedure.

“Affiliate”
means, with respect to any person or entity, any other person or entity
directly or indirectly controlling, controlled by, or under common control
with, such person or entity.  For
purposes of this definition, “control”
(including “controlled by” and “under common control with”) means the power, directly or
indirectly, to direct or cause the direction of the management and policies of
such person or entity, whether through the ownership of voting securities, by
contract or otherwise.

“Airline
Guides” means the printed and electronic data versions of the “Official Airline Guide” and the “ABC World
Airlines Guide,” and their respective successors.

“ATA”
means the Air Transport Association.

“Business Day”
means any day other than a Saturday, Sunday or other day on which banking
institutions in New York, New York are required by law, regulation or executive
order to be closed.

“Hosted
Prorate Flight” means a Big Sky segment sold only as “DL*”.

“Codeshared
Passenger” means a passenger traveling on a Delta Ticket.

“Competent
Authority” means any national, federal, state, county, local or
municipal government body, bureau, commission, board, board of arbitration,
instrumentality, authority, agency, court, department, inspectorate, minister,
ministry, official or public or statutory person (whether autonomous or not) having
jurisdiction over this Agreement or either of the Parties.

“Conditions
of Carriage” means those tariffs and rules of carriage of a party
that govern the transport of passengers traveling on tickets showing such party’s
two letter flight designator code in the carrier code box of the flight coupon.

“Confidential
Information” means (a) all confidential or proprietary information
of a party, including, without limitation, trade secrets, information
concerning past, present and future research, development, business activities
and affairs, finances, properties, methods of operation, processes and systems,
customer lists, customer information (such as passenger name record or “PNR” data) and computer procedures and access codes; and (b)
the terms and conditions of this Agreement and any reports, invoices or other
communications between the parties given in connection with the negotiation or
performance of this Agreement; and (c) excludes (i) information already in a
party’s possession prior 

 ANNEX B-1
 

to its disclosure by other party; (ii) information
obtained from a third person or entity that is not prohibited from transmitting
such information to the receiving party as a result of a contractual, legal or
fiduciary obligation to the party whose information is being disclosed; (iii)
information that is or becomes generally available to the public, other than as
a result of disclosure by a party in violation of this Agreement; or (iv)
information that has been or is independently acquired or developed by a party,
or its Affiliate, without violating any of its obligations under this
Agreement.

“CRS”
means a computerized reservations system owned or operated by any entity,
including either party to this Agreement, that contains information about
commercial airline schedules, fares, cargo rates, passenger and cargo tariff
rules and flight availability that is made available to travel agents, cargo
agents and other non-airline entities to facilitate their ability to make
reservations and issue tickets and air waybills.

“Damages” means
all claims, suits, causes of action, penalties, liabilities, judgments, fines,
losses and expenses of any nature or kind whatsoever (including, for the
avoidance of doubt, internal expenses of the indemnified party, such as
employee salaries and the costs of cooperating in the investigation,
preparation or defense of claims) under the laws of any jurisdiction (whether
arising in tort, contract, under the Warsaw Convention and related instrument,
or otherwise), including reasonable costs and expenses of investigating,
preparing or defending any claim, suit, action or proceeding (including post
judgment and appellate proceedings or proceedings that are incidental to the
successful establishment of a right of indemnification), such as reasonable attorneys’
fees and fees for expert witnesses, consultants and litigation support
services.

“Delta Ticket”
means a ticket issued by Delta, Big Sky or a third party for travel on a Hosted
Prorate Flight showing the DL flight designator code in the carrier code box of
the flight coupon.

“IATA”
means the International Air Transport Association.

“Lifted
Revenue” means the revenue prorate associated with a lifted coupon
from a Revenue Passenger ticket.

“Procedures
Manual” means a detailed procedures manual prepared by the parties
for implementing the transactions contemplated by this Agreement.

“Pseudo
Passenger” means the difference between the official SOFRS Revenue
Passenger counts and the number of Lifted Revenue passenger coupons, at a
flight level.

“Pseudo Revenue”
means the revenue determined in accordance with Delta’s pseudo valuation
derivation.

“Reservations
System” means the internal computerized airline passenger or cargo
reservations system used by the personnel of an airline that contains
information 

 ANNEX B-2
 

about flight schedules, fares, cargo rates, passenger
and cargo tariff rules and seat availability of that airline and other
carriers, and provides the ability to make reservations and issue tickets or
air waybills.

“Revenue
Passenger” means a passenger flying on a fare paid ticket or a zero
value award ticket, excluding non revenue employee travel.

“SOFRS”
means the Statistical On-Line Flight Reporting System used by Delta for
official passenger counts and capacity flight statistics.

“Special
Prorate Agreement” means that Special Prorate Agreement of even date
herewith by and between Delta and Big Sky in the form and substance attached
hereto as Annex C.

“Ticketing
Carrier” means a carrier whose traffic documents are used to issue a
ticket.

“US$”
or “$” means lawful currency of the United
States of America.

 ANNEX B-3

ANNEX B

HOSTED PRORATE CITY
PAIRS

	
  ROUTES

  	
   

  	
  IMPLEMENTATION DATE *

  
	
  BOS-YFC

  	
   

  	
  June 7th, 2007

  
	
  BOS-YQB

  	
   

  	
  June 7th, 2007

  
	
  BOS-BGR

  	
   

  	
  April 8th, 2007

  
	
  BOS-ALB

  	
   

  	
  April 8th, 2007

  
	
  BOS-ART

  	
   

  	
  April 8th 2007

  
	
  ART-MSS

  	
   

  	
  April 8th, 2007

  
	
  MSS-OGS

  	
   

  	
  April 8th, 2007

  
	
  OGS-ART

  	
   

  	
  April 8th, 2007

  
	
  ART-ALB

  	
   

  	
  April 8th, 2007

  
	
  BOS-BTV

  	
   

  	
  August 1st, 2007

  
	
  BOS-HPN

  	
   

  	
  May 1st, 2007

  
	
  BOS-ISP

  	
   

  	
  August 1st, 2007

  
	
  BOS-ABE

  	
   

  	
  July 1st, 2007

  

 

*
the initial Hosted Prorate Flights shall commence no later than April 8, 2007,
and all Hosted Prorate Flights shall be in operation no later than August 15th,
2007.

 ANNEX B-1

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