Document:

CONFIDENTIAL
TREATMENT

 

 

Exhibit
10.41

 

PORTIONS OF THIS
EXHIBIT HAVE BEEN OMITTED AND ARE BEING FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION IN A CONFIDENTIAL TREATMENT REQUEST UNDER RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  THE SYMBOL “[***]” IN
THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN OMITTED.

 

 

 

1

CONFIDENTIAL
TREATMENT

 

SETTLEMENT
AND LICENSE AGREEMENT

This SETTLEMENT AND
LICENSE AGREEMENT (the “AGREEMENT”) is made by and among (i) Forgent Networks,
Inc., a corporation organized under the laws of the state of Texas with
corporate headquarters located at 108 Wild Basin Drive, Austin, Texas, (“FORGENT”)
and (ii) DIRECTV, INC., a corporation organized under the laws of the state of
California with a principal place of business at 2230 E. Imperial Highway, El
Segundo, California, (“DIRECTV”). 
DIRECTV and FORGENT shall individually be referred to as a “Party” and
collectively referred to as the “Parties.”

RECITALS

This AGREEMENT is made
for the following purpose:

A.                                   FORGENT has
commenced a civil action entitled Forgent Networks, Inc. v. Echostar
Technologies Corporation, C.A. No.: 6:06-CV-208 (LED) in the United States
District Court, Eastern District of Texas, Tyler Division (the “Action”).  FORGENT has asserted that DIRECTV is
infringing United States Patent No. 6,285,746 (the “‘746 Patent”) owned by
FORGENT.

B.                                     DIRECTV has
answered the allegations of the Complaint, and has asserted various affirmative
defenses and counterclaims against FORGENT, among other things, for declaratory
judgment of noninfringement and invalidity of the ‘746 Patent.

C.                                     FORGENT
represents that it is the sole and exclusive owner, among other things, of U.S.
Patent Nos. 6,285,746; 6,181,784; 6,480,584; and 6,674,960 (collectively the “Forgent
Patents”).

D.                                    DIRECTV is in
the business of, among other things, providing direct-to-home satellite
broadcast services, video, audio and/or data distribution services, and
associated receiving and distribution equipment including digital video
recorders and servers, and natural extensions thereof (hereinafter “the DIRECTV
Businesses”).

E.                                      To avoid the
expense and inconvenience of further litigation and legal proceedings, FORGENT
and DIRECTV desire as of the Effective Date to fully and finally resolve,
compromise and settle any and all disputes, claims and controversies between
them pertaining to any and all issues relating to the Action and the FORGENT
Patents, including (without limitation), any such issues with respect to any
aspect of, or third party participant in, the DIRECTV Businesses, and as
further set forth below.

NOW,
THEREFORE, in
light of the foregoing, and in consideration of the mutual covenants herein and
for other valuable consideration, the sufficiency of which the Parties hereby
acknowledge, the Parties hereto, and each of them, hereby warrant, represent,
acknowledge, covenant and agree as follows:

 

 

 

2

CONFIDENTIAL
TREATMENT

 

1.                                      Definitions

(a)           The term “Affiliate” shall mean and
include (as of the date of execution hereof) any current or former parent,
subsidiary, predecessor-in-interest, or successor-in-interest, and any other
corporation, company, joint venture, partnership, firm or other entity formerly
or now controlled by, controlling, or under common control with a Party,
directly or indirectly through one or more intermediaries, where “control”
means direct or indirect ownership or control (whether through contract or
otherwise) of more than fifty percent (50%) of the stock or shares entitled to
vote for the election of directors in the case of corporate entities and in the
case of non-corporate entities, more than fifty percent (50%) of the equity
interest with the power to direct management policies.

(b)           The term “Covered Parties” shall mean
(i) DIRECTV and its past and current Affiliates; (ii) DIRECTV’s Future
Affiliates, and DIRECTV’s business partners, joint venture participants, and
other collaborators; (iii) [***], (iv) [***], and (v) all predecessors,
successors, assigns, agents, employees, directors, officers, and
representatives of subparts (i) through (iv) above [***].

(c)           The term “Covered Subject Matter”
shall mean any device [***] accused of falling within the scope of any claim of
the Forgent Patent Rights.

(d)           The term “DIRECTV Businesses” shall
mean the businesses described in Recital Paragraph D.

(e)           The term “Effective Date” shall mean
May 13, 2007.

(f)            The term “Expiration Date” shall
refer to the end of the day upon which the last of the Forgent Patent Rights
expires.

(g)           The term “Forgent Patents” shall mean
the patents described in Recital Paragraph C.

(h)           The term “Forgent Patent Rights”
shall mean the Forgent Patents and any and all patents and patent applications
related thereto, if any, including without limitation any and all parents,
continuations, continuations-in-part, divisions, substitutions, extensions,
reissues, and reexaminations thereof, and any and all foreign counterparts of
the foregoing.

(i)            The term “Future Affiliate” shall
mean any person or entity who becomes an Affiliate of a Party after the date of
execution of this AGREEMENT.

2.                                      Payment Of
Consideration

(a)           Amount:  Within five (5) business days of the
execution of this AGREEMENT by both Parties, DIRECTV shall deliver by wire
transfer to the account identified below the sum of Eight Million Dollars
($8,000,000.00):

                                                                [***]

 

 

 

3

CONFIDENTIAL
TREATMENT

 

(b)           [***]

3.                                      Dismissal Of
The Complaint And Counterclaims

(a)           Counsel for FORGENT and counsel for
DIRECTV shall exchange on behalf of the respective Parties, executed copies of
the Agreed Motion to Dismiss with Prejudice and Order of Dismissal with
Prejudice pursuant to Rule 41(a)(1) and (c) of the Federal Rules of Civil
Procedure dismissing the Action including the claims and counterclaims filed
therein with prejudice in the form of Exhibit A (the “Stipulation of Dismissal”)
attached.  Upon receipt of the payment in
Section 2, counsel for FORGENT shall file the Agreed Motion to Dismiss with the
United States District Court for the Eastern District of Texas.

4.                                      Confidentiality

Neither Party shall
disclose any of the terms of this AGREEMENT to any third party, other than to
Affiliates, without the express written consent of the other Party except to
the limited extent as follows:  (i) as
may be required by any state or federal statute, by government regulation or by
court order, as determined in good faith by the disclosing Party, (ii) in a
proceeding brought for the purpose of enforcing this AGREEMENT against any
Party or person bound hereby, (iii) to the Parties’ respective professional
advisors, such as attorneys or accountants, who agree to comply with this
provision, (iv) to third parties that are interested in acquiring DIRECTV or an
Affiliate of DIRECTV and who agree to comply with this provision; (v) to
third parties that are interested in acquiring FORGENT and who agree to comply
with this provision, and (vi) to Covered Parties who agree to comply with this
provision; provided, however, that in the event of a disclosure under this
sub-part (vi), the disclosing Party shall redact from any such disclosure the
Section 2, above.  If any Party is
hereafter served with a valid discovery request, subpoena or other form of
judicial or administrative process which in the reasonable opinion of a Party
requires the disclosure of this AGREEMENT or terms thereof, then such
disclosing Party may make such production to the extent required, provided such
production or disclosure is made subject to appropriate legal protections for
the continued confidentiality of the information, such as subject to a binding
protective order or similar agreement restricting the use and further
disclosure of such information.  Notwithstanding
the foregoing, the mere occurrence of settlement of the Action and the
Stipulation of Dismissal shall not be deemed confidential.  Subject to all of the foregoing, both Parties
shall have the right to determine in good faith the scope of any disclosure,
and in so doing the Parties shall make reasonable and good faith efforts to
maintain the confidentiality of this AGREEMENT to the maximum extent
possible.  The Parties agree to work
together in good faith to address any unforeseen disclosure issues.

5.                                      No Admission Of
Liability

This AGREEMENT is a
settlement and compromise of disputed claims and shall not be treated as an
admission of liability by any Party for any purpose.  Further, nothing in this AGREEMENT shall be
construed as an admission by DIRECTV or any other of the Covered Parties of the
validity or infringement of the Forgent Patent Rights.

 

 

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CONFIDENTIAL
TREATMENT

 

6.                                      License
Provisions

(a)           License:  FORGENT hereby grants to DIRECTV and to the
other Covered Parties a non-exclusive, worldwide, fully paid-up, irrevocable
license to make, have made, use, sell, offer for sale, lease, or import any
product that involves the Covered Subject Matter or to practice or have
practiced, any method that involves the Covered Subject Matter, [***].

(b)           Term:  The license granted in Section 6(a) shall be
effective from the Effective Date of this AGREEMENT until the Expiration Date.

7.                                      Releases

(a)           Forgent’s Release of DIRECTV
Covered Parties:  FORGENT on behalf
of itself and its Affiliates hereby and forever releases and discharges the
Covered Parties defined in Section 1(b)(i) and any and all predecessors,
assigns, agents, employees, directors, officers, and representatives thereof
(collectively, the “DIRECTV Released Parties”), from any and all causes of
action, actions, judgments, liens, indebtedness, damages, losses, claims,
counterclaims, liabilities and demands of whatsoever kind or character
throughout the world, known or unknown, suspected to exist or not suspected to
exist, anticipated or not anticipated, whether or not heretofore brought before
any foreign or domestic court or governmental agency or entity, which FORGENT
or its Affiliates now holds, has the right to assert or owns, or has at any
time heretofore held, had the right to assert or owned against such DIRECTV
Released Parties.  [***]  Each of the DIRECTV Released Parties is
intended to be and is a third-party beneficiary of this release and has
standing to enforce the terms of this release without joinder of DIRECTV or any
other DIRECTV Released Party.

(b)           FORGENT’s Release of Other Covered
Parties:  FORGENT on behalf of itself
and its Affiliates hereby and forever releases and discharges the Covered
Parties defined in Sections 1(b)(ii) through (v) (collectively, the “Other
Released Parties”) from any and all causes of action, actions, judgments,
liens, indebtedness, damages, losses, claims, counterclaims, liabilities and
demands of whatsoever kind or character throughout the world, known or unknown,
suspected to exist or not suspected to exist, anticipated or not anticipated,
whether or not heretofore brought before any foreign or domestic court or
governmental agency or entity relating to or arising from the Covered Subject
Matter, which FORGENT or its Affiliates now holds, has the right to assert or
owns, or has at any time heretofore held, had the right to assert or owned
against such Other Released Parties [***]. 
[***]  Each of the Other Released
Parties is intended to be and is a third-party beneficiary of this release and
has standing to enforce the terms of this release without joinder of DIRECTV or
any Other Released Party.

(c)           DIRECTV’s Release of FORGENT:  DIRECTV hereby and forever releases and
discharges FORGENT, and its respective current Affiliates, agents, employees, directors,
officers, and representatives, from any and all causes of action, actions,
judgments, liens, indebtedness, damages, losses, claims, counterclaims,
liabilities and demands of whatsoever kind or character throughout the world,
known or unknown, suspected to exist or not suspected to exist, anticipated or
not anticipated, whether or not heretofore brought before any foreign or
domestic court or governmental agency or entity, which DIRECTV now holds,

 

 

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CONFIDENTIAL
TREATMENT

 

 

has the right to assert or
owns, or has at any time heretofore held, had the right to assert or owned
[***].

(d)           Enforcement of Agreement:  Nothing in the foregoing mutual releases in
this Section 7 shall affect either Party’s respective right to enforce against
the other Party such other Party’s obligations as set forth in this AGREEMENT.

8.                                      Covenant Not To
Sue

FORGENT and DIRECTV
hereby covenant for themselves and for their Affiliates that during the five
(5) year period starting on the Effective Date, they each will refrain from
commencing, instituting or prosecuting any lawsuit, action, proceeding, claim,
investigation, or demand of any kind or character against the other and the
other’s Affiliates, for infringement of any patent whether presently owned or
hereafter acquired [***].  [***]

9.                                      Representations
and Warranties

(a)           Releases:  The undersigned, and each of them, hereby
warrant, represent, and agree that they and each of them are the sole and
lawful owner of all right, title and interest in and to every claim and every
matter which they purport to release hereby. 
The releasing Party shall indemnify the released Party against, and
defend and hold such Party harmless from any claims arising out of or relating
to any assignment or transfer, or for any purported or attempted assignment or
transfer, of any claims or other matters released herein.

(b)           Acknowledgement and Waiver:

WITHOUT ACKNOWLEDGING OR
AGREEING TO THE APPLICABILITY OF CALIFORNIA LAW, FORGENT ACKNOWLEDGES THAT IT
IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH
PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.”

FORGENT, BEING AWARE OF
SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS IT MAY HAVE THEREUNDER,
AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

(c)           License:  FORGENT warrants and represents that it is
the sole and exclusive owner of the Forgent Patent Rights, that it has the full
right and power to grant the license as set forth herein, and that there are no
outstanding agreements, assignments or encumbrances inconsistent therewith.

 

 

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CONFIDENTIAL
TREATMENT

 

(d)           Covenants:  FORGENT and DIRECTV each warrants and
represents that it has the full right and power to grant the covenants provided
herein, and that there are no outstanding agreements, assignments or
encumbrances inconsistent therewith.

10.                               Additional
Provisions

(a)           Entire Agreement:  This AGREEMENT represents the entire
agreement of the Parties with respect to the transactions contemplated herein
and supersedes all prior agreements, discussions or representations, oral or
written, with respect to the subject matter hereof.  [***] 
Except as otherwise provided herein, this AGREEMENT may be amended,
modified or terminated only by a writing signed by both of the Parties hereto.

(b)           Binding Effect:  This AGREEMENT shall be binding upon and
inure to the benefit of the Parties hereto and each and all of their
representatives, officers, directors, employees, agents, Affiliates, partners,
successors, and heirs, if any.  As to the
Covered Parties defined in Section 1(b)(i), any persons or entities which may
become a DIRECTV Affiliate after the execution of this AGREEMENT by the
Parties, shall receive the full benefit of the license, release and covenants
of this AGREEMENT [***]; it being understood that no future transaction
involving DIRECTV should broaden the scope of any license, release or other
right granted by FORGENT hereunder.

(c)           Licenses and Covenants Run With
Title:  FORGENT further covenants
that this AGREEMENT shall run with the legal and equitable title to the Forgent
Patent Rights and all other applicable rights, until the Expiration Date and
beyond, and be enforceable against and binding upon any and all successors and
assigns of FORGENT.  In the event FORGENT
transfers any interest in any of the Forgent Patent Rights or other applicable
right, Forgent shall notify such transferee of this AGREEMENT and the
transferee shall be subject to all terms and conditions hereof.

(d)           Third Party Beneficiary:  DIRECTV shall be a third-party beneficiary of
the rights granted herein to other Covered Parties, and notwithstanding
anything in this AGREEMENT to the contrary, reserves the right to enforce those
rights on behalf of such Covered Parties.

(e)           Counterparts:  This AGREEMENT may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.  This AGREEMENT will become binding and
effective upon the exchange of facsimile copies of the required signatures.  The Parties will thereafter exchange formal
signed originals of this AGREEMENT for their permanent records.

(f)            Waiver:  The failure of any Party at any time to
require performance by any other Party of any provision of this AGREEMENT shall
not be deemed a continuing waiver of that provision or a waiver of any other
provision of this AGREEMENT and shall in no way affect the full right to
require such performance from such other Party at any time thereafter.

(g)           Negotiated Agreement:  The terms of this AGREEMENT were negotiated
by FORGENT and DIRECTV, and neither of the Parties shall be deemed the sole

 

 

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CONFIDENTIAL
TREATMENT

 

author of this
AGREEMENT.  Each Party has been
represented by legal counsel in connection with the negotiation and execution
of this AGREEMENT.

(h)           Severability:  If any provision of this AGREEMENT is
declared or found to be illegal, unenforceable or void, and the remainder of
this AGREEMENT is not materially affected by such a declaration or finding and
is capable of substantial performance, then the remainder shall be enforced to
the extent permitted by law.

(i)            Headings:  The headings to sections and paragraphs of
this AGREEMENT shall not be deemed a part of this AGREEMENT and shall not
affect the interpretation of this AGREEMENT.

(j)            Voluntary Execution:  This AGREEMENT is executed voluntarily by
each of the Parties hereto without any duress or undue influence on the part,
or on behalf, of any of them.  The
Parties hereto represent and warrant to each other that they have read and
fully understand the provisions of this AGREEMENT and have relied upon the
advice and representation of legal counsel of their own choosing.

(k)           Attorneys’ Fees:  FORGENT and DIRECTV each shall bear its own
attorneys’ fees, costs and expenses in connection with the Action, with the
negotiation and preparation of this AGREEMENT, and with the completion of
settlement as herein provided.

(l)            Governing Law:  This AGREEMENT shall be interpreted, and the
rights and duties of the Parties hereto shall be determined, in accordance with
the laws of the State of Texas, without regard to its conflicts of laws
provisions.  [***]

(m)          Authority:  Each Party warrants and represents that it
has all necessary rights and is fully authorized to enter into this AGREEMENT
and to carry out the obligations provided for herein.

(n)           Bankruptcy:  Each Party represents and warrants that it is
not presently the subject of a voluntary or involuntary petition in bankruptcy
or the equivalent thereof, does not presently contemplate filing any such
voluntary petition, and does not presently have reason to believe that such an
involuntary petition will be filed against it.

(o)           [***]

(p)           Notices:  All notices to, demands, consents, and
communications that any Party may desire to give to the other, and/or may be
required under this AGREEMENT, must be in writing.  The notice shall be effective upon receipt in
the United States after having been sent by registered or certified mail or
sent by facsimile transmission, and addressed to the address designated below:

                [***]

or to such address that
the Party to whom notices are to be sent may from time to time designate in
writing.

 

 

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CONFIDENTIAL
TREATMENT

 

(q)           Agency:  This Agreement does not make either Party the
agent of the other Party for any purpose whatsoever, nor does either Party have
the right or authority to assume, create or incur any liability of any kind,
express or implied, against or in the name or on behalf of the other Party.

(r)            No License to FORGENT:  Nothing contained in this AGREEMENT shall be
construed as conferring to FORGENT or to its Affiliates any right to a
license under or to otherwise use any patent, patent application, trademark,
service name, service mark, trade dress, trade secret or other intellectual
property belonging to DIRECTV or its Affiliates.

IN
WITNESS WHEREOF, the
Parties have executed this AGREEMENT on the dates set forth opposite their
respective signatures below: 

	
  DATED: 

  	
   

  	
   

  	
  FORGENT NETWORKS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  DATED: 

  	
   

  	
   

  	
  DIRECTV, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
           [***]

  

 

 

9

 

CONFIDENTIAL
TREATMENT

 

 

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF TEXAS

TYLER DIVISION

	
  FORGENT NETWORKS, INC.

   

                                                  Plaintiff,

   

  vs.

   

  ECHOSTAR COMMUNICATIONS

  CORPORATION, et al.

   

                                                  Defendants.

   

  	
     CONSOLIDATED

     C.A. No. 6:06-CV-208
  (LED)

  
	
   

  SCIENTIFIC-ATLANTA, INC.

  MOTOROLA, INC. and DIGEO, INC.

   

                                                  Plaintiffs,

   

  vs.

   

  FORGENT NETWORKS, INC.

   

                                                  Defendant.

   

  

 

AGREED
MOTION TO DISMISS WITH PREJUDICE

Pursuant to Rule 41(a)
and 41(c) of the Federal Rules of Civil Procedure and the terms of a separate
agreement, Plaintiff Forgent Networks, Inc. (“Forgent”) and Defendant DIRECTV, Inc.
(collectively, the “Parties”) have agreed to settle, adjust and compromise all
claims against each other in this case. 
The Parties, therefore, move this Court to dismiss with prejudice all
claims by Plaintiff against
Defendant and to dismiss with prejudice all claims by Defendant against
Plaintiff with this Court retaining exclusive jurisdiction to hear any dispute
that may arise in connection with the settlement or any matter related thereto.

 

 

 

CONFIDENTIAL
TREATMENT

 

 

A proposed Order accompanies this
motion.

	
   

  	
  Respectfully submitted,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
            [***]

  

 

ATTORNEY-IN-CHARGE FOR PLAINTIFF

OF COUNSEL:

 

[***]

 

[***]

 

[***]

 

ATTORNEYS FOR PLAINTIFF

 

[***]

 

ATTORNEYS FOR DEFENDANTS

DIRECTV, INC.

 

[***]

 

[***]

 

ATTORNEYS
FOR DEFENDANT

DIRECTV, INC.

 

 

 

CONFIDENTIAL
TREATMENT

 

CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the
foregoing document was forwarded to opposing counsel, via e-filing and e-mail, on this        th day of June, 2007.

 

 

 

 

 

 

CONFIDENTIAL
TREATMENT

 

 

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF TEXAS

TYLER DIVISION

 

	
  FORGENT NETWORKS, INC.

   

                                                  Plaintiff,

   

  vs.

   

  ECHOSTAR COMMUNICATIONS

  CORPORATION, et al.

   

                                                  Defendants.

   

  	
  CONSOLIDATED

  C.A.
  No. 6:06-CV-208 (LED)

  
	
   

  SCIENTIFIC-ATLANTA, INC.

  MOTOROLA, INC. and DIGEO, INC.

   

                                                  Plaintiffs,

   

  vs.

   

  FORGENT NETWORKS, INC.

   

                                                  Defendant.

   

  

 

ORDER
OF DISMISSAL WITH PREJUDICE

On this day, Plaintiff
Forgent Networks, Inc. (“Plaintiff”) and Defendant DIRECTV, Inc. (“Defendant”)
announced to the Court that they have settled their respective claims for
relief asserted in this case against each other and requested that the Court
dismiss these claims with prejudice with this Court retaining exclusive
jurisdiction to hear any dispute that may arise in connection with the
settlement or any matters related thereto. 
The Court, having considered this request, is of the opinion that their
request should be, and hereby is, GRANTED. 
It is therefore

 

 

 

CONFIDENTIAL
TREATMENT

 

ORDERED that Plaintiff’s claims against Defendant, and Defendant’s
claims against Plaintiff, are each dismissed with prejudice, subject to this
Court’s retention of exclusive jurisdiction to hear any dispute that may arise
in connection with the settlement or any matters related thereto.EXHIBIT 10.3(b)

 

PORTIONS OF THIS EXHIBIT
HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION IN A CONFIDENTIAL TREATMENT REQUEST UNDER RULE 24b-2 OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THE SYMBOL “[***]” IN THIS EXHIBIT
INDICATES THAT INFORMATION HAS BEEN OMITTED.

 

Amendment No. 11

 

To the A318/A319 Purchase Agreement

 

Dated as of March 10, 2000

 

between

 

AIRBUS S.A.S.

 

and

 

Frontier Airlines, Inc.

 

This
Amendment No. 11 (hereinafter referred to as the ”Amendment”) is entered
into as of October 23, 2007, between AIRBUS S.A.S., organized and existing under the laws of the
Republic of France, having its registered office located at 1, Rond-Point
Maurice Bellonte, 31700 Blagnac, France (hereinafter referred to as the “Seller”),
and Frontier Airlines, Inc., a corporation organized and existing under the
laws of the State of Colorado, United States of America, having its principal
corporate offices located at 7001 Tower Road, Denver, CO 80249-7312 USA
(hereinafter referred to as the “Buyer”).

 

WITNESSETH

 

WHEREAS,
the Buyer and AVSA, S.A.R.L, (predecessor in interest to the Seller) entered
into an A318/A319 Purchase Agreement, dated as of March 10, 2000, relating to
the sale by the Seller and the purchase by the Buyer of certain Airbus A318-100
and A319-100 aircraft, which, together with all Exhibits, Appendixes 

 

FFT – A318/A319 – AIRBUS

AM 11

Privileged and Confidential

 

1

 

and
Letter Agreements attached thereto and as amended by Amendment No. 1, dated as
of July 17, 2000, Amendment No. 2, dated as of November 6, 2000, Amendment No.
3, dated as of June 18, 2001, Amendment No. 4, dated as of November 30,
2001,  Amendment No. 5, dated as of March
8, 2002,  Amendment No. 6, dated as of
March 19, 2002, Amendment No. 7, dated as of June 3, 2002, Amendment No. 8
dated as of August 20, 2003, Amendment No. 9 dated as of February 16, 2006, and
Amendment No. 10 dated as of June 5, 2007, is hereinafter called the “Agreement.”

 

WHEREAS,
the Buyer and the Seller wish to amend the terms of Clause 4 of the Agreement.

 

WHEREAS,
the Buyer and the Seller wish to amend the terms of  Clause 9.1.1 of the Agreement.

 

WHEREAS,
the Buyer and the Seller wish to amend the terms of Clause 15 of the Agreement
and to supplement the Advertising and Promotional Credit Memorandum previously
provided to the Buyer letter Agreement No. 3 to the Agreement.

 

NOW, THEREFORE, IT IS
AGREED AS FOLLOWS

 

Capitalized
items used herein and not otherwise defined herein will have the meanings
assigned to them in the Agreement. The terms “herein,” “hereof” and “hereunder”
and words of similar import refer to this Amendment.

 

1.             DELIVERY 

 

1.1           The parties agree that one (1) Converted A320 Aircraft scheduled to
be delivered in May 2009 will be rescheduled to be delivered in [***] 2009 and
three (3) Incremental A320 Aircraft scheduled to be delivered in each of August
2009, November 2009 and August 2010 will be rescheduled to be delivered in,
respectively, [***]. The four (4) Aircraft rescheduled pursuant to this
Paragraph 1.1 are hereinafter referred to collectively as the “Rescheduled
Aircraft”.

 

All other
terms and conditions applicable to these Rescheduled Aircraft will remain
unchanged, except if and to the extent otherwise set forth in this Amendment.

 

FFT – A318/A319 –  AIRBUS

AM 11 

 

Confidential and Privileged

 

2

 

1.2           As a consequence of Paragraph 1.1 above, the delivery schedule set
forth in Clause 9.1.1 of the Agreement is hereby deleted and replaced with the
following schedule applicable to the Aircraft remaining to be delivered:

 

QUOTE

 

	
  Aircraft

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  No.

  	
   

  	
  A/C
  ID

  	
   

  	
  Aircraft
  Type

  	
   

  	
  Delivery

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  166897

  	
   

  	
  Converted
  A320 Aircraft

  	
   

  	
  [***]2008

  
	
  30

  	
   

  	
  166898

  	
   

  	
  Converted A320
  Aircraft

  	
   

  	
  [***]2008

  
	
  31

  	
   

  	
  166899

  	
   

  	
  Converted
  A320 Aircraft

  	
   

  	
  [***]2009

  
	
  32

  	
   

  	
  166900

  	
   

  	
  Converted
  A320 Aircraft

  	
   

  	
  [***]2009

  
	
  33

  	
   

  	
  217224

  	
   

  	
  Incremental
  A320 Aircraft

  	
   

  	
  [***]2009

  
	
  34

  	
   

  	
  217225

  	
   

  	
  Incremental
  A320 Aircraft

  	
   

  	
  [***]2010

  
	
  35

  	
   

  	
  217226

  	
   

  	
  Incremental
  A320 Aircraft

  	
   

  	
  [***]2010

  
	
  36

  	
   

  	
  217222

  	
   

  	
  Incremental
  A320 Aircraft

  	
   

  	
  [***]2010

  
	
  37

  	
   

  	
  217223

  	
   

  	
  Incremental
  A320 Aircraft

  	
   

  	
  [***]2010

  
	
  38

  	
   

  	
  217227

  	
   

  	
  Incremental
  A320 Aircraft

  	
   

  	
  [***]2011

  

 

UNQUOTE

 

2.             PRICES

 

The Seller
Price Revision Formula in Exhibit 2 to Amendment No. 8 to the Agreement, as
applied to all prices and escalating credits with respect to the Aircraft No.
31 through 38 in Paragraph 1 above, is [***].

 

3.             PREDELIVERY
PAYMENT REFERENCE PRICE

 

Notwithstanding
Paragraph 1.1 herein and without prejudice to any other provisions of the
Agreement, the Predelivery Payment Reference Price for the relevant Rescheduled
Aircraft shall be [***].

 

FFT – A318/A319 –  AIRBUS

AM 11 

 

Confidential and Privileged

 

3

 

4.             FIELD
SERVICES

 

In
consideration for the
Seller’s agreement to the terms and conditions of this Amendment, the Buyer agrees to a [***].

 

5.             [***] CREDITS

 

On signature of this Amendment, the Seller will
provide to the Buyer a supplement to the [***]; this supplement will be
provided on a one-time, exceptional basis. This supplement will be [***].

 

Except as
provided in the following Paragraph, the [***] will be for the exclusive use of
the Buyer for [***], provided that the [***] will be subject to the Seller’s
consent, which will not be unreasonably withheld. The Buyer will furnish the
Seller with [***].

 

[***] of this
[***] will be for the exclusive use of the Seller for [***], provided that the
[***] will be subject to the Buyer’s consent, which will not be unreasonably withheld.

 

6.             ERRATA

 

Clause
19.1 of the Agreement is hereby amended such that the reference to ‘Clause 7”
in each of subclauses i)and(ii) thereof will be a reference to “Clause 6.”

 

7.             EFFECT OF AMENDMENT

 

7.1           The following events will be conditions precedent
to the effectiveness of this Amendment: 
(i) the board of directors of the Buyer will approve the transaction
that is the subject matter of this Amendment no later than October 25, 2007;
and (ii) no later than October 31st, 2007, the Buyer will [***] in
respect of [***] in an amount equal to [***]. No later than one (1) Working Day
after the condition in subparagraph (i) of this Paragraph 6 is met, the Buyer
will deliver written notice to the Seller of such approval.

 

7.2           The provisions of this Amendment will constitute a valid amendment
to the Agreement and the Agreement will be deemed to be amended to the extent
herein provided and, except as
specifically amended hereby, will continue in full force and effect in
accordance with its original terms. This Amendment
supersedes any 

 

FFT – A318/A319 –  AIRBUS

AM 11 

 

Confidential and Privileged

 

4

 

previous
understandings, commitments, or representations whatsoever, whether oral or
written, related to the subject matter of this Amendment.

 

7.3           Both parties agree that this Amendment will constitute an integral,
nonseverable part of the Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Amendment will be governed
by the provisions of the Agreement, except that if the Agreement and this
Amendment have specific provisions that are inconsistent, the specific
provisions contained in this Amendment will govern.

 

8.             CONFIDENTIALITY

 

Without
limiting the generality of Paragraph 3 with respect to the applicability to
this Amendment of all terms and conditions of the Agreement, to the extent such
terms and conditions are not inconsistent herewith, the parties hereby
acknowledge and agree that this Amendment is subject to the confidentiality
provisions set forth in Clause 22.5 of the Agreement.

 

9.             COUNTERPARTS

 

This Amendment
may be signed by the parties hereto in counterparts, which when signed and
delivered will each be an original and together constitute but one and the same
instrument.

 

FFT – A318/A319 –  AIRBUS

AM 11 

 

Confidential and Privileged

 

5

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be signed by their
respective officers or agents on the dates written below.

 

 

	
   

  	
  AIRBUS
  S.A.S.

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:
  

  	
   

  	
   

  
	
   

  	
   

  
	
  Frontier
  Airlines, Inc.

  	
   

  
	
   

  
	
  By:
  

  	
   

  	
   

  
	
   

  	
   

  
	
  Its:
  

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:
  

  	
   

  	
   

  
											

 

FFT – A318/A319 –  AIRBUS

AM 11 

 

Confidential and Privileged

 

6

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