Document:

Exhibit
10.2

DEFERRED
COMPENSATION AGREEMENT

BETWEEN

GLOBAL PARTNERS LP AND EDWARD J. FANEUIL

This
(the “Agreement”) is entered into between Global GP LLC on behalf of Global
Partners LP (the “Company”) and Edward J. Faneuil (the “Executive”).

WHEREAS, the
Executive presently serves as Executive Vice-President and General Counsel of
the Company; and

WHEREAS, in
consideration of past and future services performed by the Executive, the
Company agrees to provide deferred and other compensation to the Executive,
payable in the amounts and on the terms and conditions set forth herein.

NOW THEREFORE, in
consideration of the mutual promises made herein, the Executive and the Company
hereby agree as follows:

1.             Deferred Compensation.  The Company agrees to pay to the Executive
deferred compensation on the following terms and conditions.

(a)           Except as otherwise
provided in Sections 1(c), 1(b), 1(d) or 1(e) below, the Company shall pay to
the Executive the sum of $70,000 per year (the “Deferred Compensation”) in
equal monthly installments of $5,833.33, subject to applicable withholding, on
the first business day of each month for 15 years (180 months) commencing on
the earlier of:  (i) August 1, 2014, and
(ii) the first business day of the month following the termination of Executive’s
employment with the Company for reasons other than Cause (as defined below),
subject to earlier termination as provided in this Agreement.  Unless his employment is earlier terminated by
the Company for reasons other than Cause, the Executive must remain
continuously employed through the earlier of (i) August 1, 2014 or (ii) an
applicable payment event set forth in Sections 1(b), 1(c) or 1(d) of this
Agreement to be eligible for benefits under this Agreement.  The Executive must be employed on the date of
a distribution under Section 1(e) of this Agreement, but a distribution under
Section 1(e) shall not otherwise alter the eligibility requirements set forth
in this Agreement.  In exchange for and
as a requirement to receive the compensation set forth in this Section 1(a) of
this Agreement, the Executive and Company (and its Affiliates) shall negotiate,
in good faith, and enter into a general release of claims accrued as of the
date thereof in favor of the Company and its Affiliates.  The form and scope of such release shall be
acceptable to the Company and its Affiliates, the approval of which shall not
be unreasonably withheld by the Company and its Affiliates.

(b)           The
Deferred Compensation shall be forfeited in its entirety in the event that the
Company terminates the Executive’s employment prior to August 1, 2014 for Cause
or if the Executive terminates his employment for any reason other than death,
Disability, Constructive Termination (as that term is defined in the Employment
Agreement).  On and after the date on
which Deferred Compensation payments commence hereunder, the Company may 

 1
 

terminate its obligations under this Agreement only
for Cause or if the Company subsequently determines within eighteen (18) months
of the Executive’s termination that circumstances which would give rise to a
for Cause termination of the Executive otherwise existed at the time of the
Executive’s earlier termination.

(c)           In
the event that the Executive dies prior to having received the aggregate amount
of the Deferred Compensation payable under this Section 1, the Company shall
pay to his Beneficiary within sixty (60) days of the Executive’s date of death
a single lump sum payment in an amount equal to the present value of the
remaining payments that would have been paid to the Executive had he not died.
Such single lump sum payment shall be calculated by applying a discount rate
equal to the then applicable 10-year Treasury Note interest rate.

(d)           If there is a Change
in Control or the Executive is determined to have a Disability prior to the
Executive having received the aggregate amount of the Deferred Compensation
payable under this Section 1, the Company shall pay to the Executive within
sixty (60) days of the effective date of the Change in Control or the
determination of Disability a single lump sum payment in an amount equal to the
present value of the remaining payments that would have been paid to the
Executive had the Change in Control or Disability not occurred. Such single
lump sum payment shall be calculated by applying a discount rate equal to the then
applicable 10-year Treasury Note interest rate.

(e)           In the event of an “Unforeseeable
Emergency” as that term is defined in Section 409A of the Code, the
Company shall pay to the Executive within fifteen (15) days of the occurrence
of the Unforeseeable Emergency the maximum amount allowable pursuant to
Section 409A(a)(2)(B)(ii) in a lump sum promptly following the occurrence
of such “Unforeseeable Emergency.”

2.             Definitions. For purposes of this Agreement, the
following definitions apply:

(a)           “Affiliates” means
all Persons directly or indirectly controlling, controlled by or under common
control with the Company, where control shall be determined by a majority of
voting power only.

(b)           “Beneficiary” means
the Person or Persons designated by the Executive in writing to receive the
payment of Deferred Compensation in the event of the Executive’s death. The
form of Beneficiary designation is attached to this Agreement as Exhibit B. Any
Beneficiary designation shall be effective only upon actual receipt by the
Company.

(c)           “Cause” means
Executive (a) commits any material breach of any of his obligations under this
Agreement, which breach is not cured within thirty (30) days of the 

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Executive’s receipt of written notice from the
Company, (b) breaches the obligations set forth on Exhibit “A” attached hereto
or in Sections 11 or 12 of the Employment Agreement (c) engages in gross
negligence or willful misconduct in the performance of his duties on behalf of
the Company, (d) is convicted or pleads no contest to a crime involving fraud,
dishonesty or moral turpitude or any felony, or (e) commits an act of
embezzlement or willful breach of a fiduciary duty to the Company or any of its
Affiliates.

(d)           “Change in Control” means a “Change
in Control” as defined in the Employment Agreement.

(e)           “Code” means the Internal Revenue
Code of 1986, as amended, and its related interpretive guidance, regulations
and rulings.

(f)            “Disability” means
that the Executive is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months, or if he is determined to be totally
disabled by the Social Security Administration, or if he is determined to be
disabled in accordance with the long-term disability plan, if any, of the
Company in which the Executive participates and has been receiving payments for
not less than three (3) months under such plan.

(g)           “Employment Agreement” means that
certain Employment Agreement entered into by and between the Company and
Executive effective as of July 1, 2006.

(h)           “Person” means an
individual, a corporation, a limited liability company, an association, a
partnership, an estate, a trust or any other entity or organization, other than
the Company or any of its Affiliates.

3.             Confidential Information and Restricted Activities.
The Executive will be subject to the terms and conditions relating to
confidential information, non-solicitation and non-competition set forth in
Exhibit A, which is incorporated into this Agreement by reference.

4.             Amendment and Termination.  This Agreement may be amended or terminated
only with the mutual written consent of the Company and the Executive.  In the event of any amendments involving
further deferrals of the Deferred Compensation, each installment payment called
for under Section 1 above shall be treated, to the extent permissible
under the Code, as a separate payment for purposes of Section 409A of the
Code.

5.             Section 409A; No Guarantee
of any Tax Consequences.  The parties hereto intend that this
Agreement comply with the requirements of Section 409A of the Code and
related regulations and Treasury pronouncements (“Section 409A”)
and this Agreement shall be interpreted to comply with Section 409A.  If
any provision provided herein results in the imposition of an additional tax
under the provisions of Section 409A, the Executive and the Company agree that
any such provision will be reformed to avoid imposition of any such additional
tax in the manner that the Executive and the Company mutually agree is
appropriate to comply with Section 409A. Notwithstanding the foregoing,
the Company makes no guarantee of any tax consequences under any section of the
Code or state tax laws, including, without limitation, Section 409A of the
Code.

 3
 

 

6.             Delay in Payments.  Notwithstanding any other provision with
respect to the timing of payments hereunder, if, at the time of the Executive’s
termination, the Executive is deemed to be a “specified employee” (within the
meaning of Section 409A of the Code, and any successor statute, regulation and
guidance thereto) of the Company, then only to the extent necessary to comply
with the requirements of Section 409A of the Code, any payments to which the
Executive may become entitled hereunder will be withheld until the first
business day of the seventh month following the Date of Termination, at which
time the Executive shall be paid an aggregate amount equal to six (6) months of
payments otherwise due to the Executive under the terms of Section 1(a)
above, or if the payments are to be accelerated pursuant to Section 1(c) or
1(d) above, the lump sum payment shall be made on the first business day of the
seventh month following the Change in Control or Disability.  After the first business day of the seventh
month following the Date of Termination and continuing each month thereafter,
the Executive shall be paid the regular payments otherwise due to the Executive
in accordance with the terms of Section 1 above.

7.             Unsecured Promise to Pay.  This Plan constitutes an unfunded and
non-qualified deferred compensation arrangement between the Company and the
Executive. Neither the Executive nor any other person shall have any interest
in any specific asset or assets of the Company by reason of any obligations
hereunder nor any rights to payment of any Deferred Compensation except as
expressly provided hereunder. The rights of the Executive and any designated
beneficiary are unsecured and shall be subject to the creditors of the Company.

8.             Incapacity. 
If the Company shall receive evidence satisfactory to it that Executive
or any Beneficiary entitled to receive any benefit under this Agreement is, at
the time when such benefit becomes payable, a minor, or is physically or
mentally incompetent to give a valid release therefor, and that another person
or an institution is then maintaining or has custody of such person and that no
guardian, committee or other representative of the estate of the Trustee or
Beneficiary shall have been duly appointed, the Company may make payment(s) of
benefits otherwise payable to the Executive or designated beneficiary to such
other person or institution, including a custodian under a Uniform Gifts to
Minors Act, or corresponding legislation (who shall be a guardian of the minor
or a trust company), and the release of such other person or institution shall
be a valid and complete discharge for the payment of such benefit.
Notwithstanding the foregoing, if there is a reasonable question as to who is
the rightful recipient of any Deferred Compensation payments under this
Agreement, the Company may file an action in a court of competent jurisdiction
to resolve such question.

9.             Spendthrift Provision.  The Deferred Compensation shall not be
subject to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charges and any attempt so to anticipate, alienate, sell,
transfer, assign, pledge, encumber or charge the same shall be void; nor shall
any portion of any such right hereunder be in any manner payable to any
assignee, receiver or trustee, or be liable for such person’s debts, contracts,
liabilities, engagements or torts, or be subject to any legal process to levy
upon or attach.

10.           Plan Administration.  This Agreement is intended to be a plan (the “Plan”)
of deferred compensation for a select group of management or highly compensated
employees described in Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, and
shall be interpreted and administered accordingly.  The Plan shall be administered by the Board
of Directors of 

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Global GP LLC or any successor group of such
Board of Directors (the “Board”). The Board shall have discretionary authority
to administer the Plan and make claims determinations consistent with the terms
of the Plan. The Board may delegate any of its responsibilities under the Plan
provided that such delegation does not result in any violation of the Plan or
any applicable law, rule, regulation or order.

(a)           Claims Procedure.  If any request for a distribution under the
Plan, which request may be made by filing a written request with the Board, is
denied, the Board shall so notify the claimant within 90 days after receipt of
the application and shall afford such claimant a reasonable opportunity for a
full and fair review of the decision denying his claim. Notice of such denial
shall set forth, in addition to the specific reasons for the denial, the
following:

(i)                                     reference
to pertinent provisions of the Plan or of the Board’s rules;

(ii)                                  a
description of any additional information or material necessary to perfect the
claim and an explanation of why it is necessary; and

(iii)                               an
explanation of the claims review procedure including advising the claimant that
he may request the opportunity to review pertinent Plan documents and submit a
statement of issues and comments in writing.

Within 60 days
following receipt of notice of denial of a claim, a claimant may request a
review of such denial by the Board.  The
Board shall take appropriate steps to review its decision in light of any
further information or comments submitted by such claimant.  The Board shall render a decision within 60
days after claimant’s request for review and shall advise claimant in writing
of its decision on such review, specifying its reasons for the decision and
identifying appropriate provisions of the Plan that support the Board’s
decision. Any of the periods set forth herein may be extended by the Board upon
notice to the Claimant of the extension and the reason for the extension if
notice is provided prior to the expiration of such period.  The provisions of this Section 10(b) shall be
interpreted and administered in a manner consistent with the applicable
provisions of Department of Labor Regulation Section 2560.503-1.

(b)           Named Fiduciary
and Plan Administrator.  The Board
shall be the Named Fiduciary and Plan Administrator of this Plan.

11.           Notices.  For purposes of this Plan, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered personally or mailed by
United States registered or certified mail, return receipt requested, postage
prepaid, or by nationally recognized overnight delivery service, addressed to
the Executive at the home address set forth in the Company’s records, and to
the Company at its principal place of business (attention: Chief Executive
Officer) or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

 5
 

 

12.           Successors and Assigns.  This Agreement shall be applicable to, and
shall inure to the benefit of, the Company and their successors and assigns and
to the Executive and his heirs, executors, administrators and personal
representatives.

13.           Governing Law.  This Agreement shall continue in effect after
termination of my employment and shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts without regard to
its conflict of laws principles, to the extent not preempted by U.S. federal
law.

14.           Consent to Jurisdiction.  In the event of any alleged breach of this
Agreement which the parties are unable to settle by mutual consultation, the
Company and the Executive hereby consent and submit to arbitration. Such
arbitration shall take place in Boston, Massachusetts, unless the parties
otherwise mutually agree in writing, in accordance with the employment rules of
the American Arbitration Association (“AAA”) and under the laws of the
Commonwealth of Massachusetts. Unless otherwise required by law, the parties
hereby agree to proceed before one impartial arbitrator selected by mutual agreement
of the parties. Any demand for arbitration hereunder shall be filed within a
reasonable time after the controversy or claim has arisen, but in no event
later than the date when the institution of legal or equitable proceedings
based on the claim would be barred by the statute of limitations under
applicable law. This arbitration provision may be specifically enforced in any
court of competent jurisdiction. Judgment upon the award rendered by the
arbitrator(s) may be entered in the federal and state courts in and of the
Commonwealth of Massachusetts.

15.           Remedies.  The Company and the Executive agree that
forfeiture of the Deferred Compensation shall serve as liquidated damages in
the event that the Executive breaches any of the provisions of this Agreement.
The parties acknowledge that actual damages will be difficult to ascertain and
that such liquidated damages represent the best estimate of such damages.

16.           Waiver of Breach.  The waiver by the Company or the Executive of
a breach of any provision of this Agreement must be in writing and shall not
operate or be construed as a waiver of any subsequent breach.

17.           Entire Agreement.  This Agreement constitutes the entire
agreement between the parties and supersedes all prior agreements and
understandings, whether written or oral, relating to the subject matter of this
Agreement.

18.           Severability.  Any provision in this Agreement which is
prohibited or unenforceable in any jurisdiction by reason of applicable law
shall, as to such jurisdiction, be ineffective only to the extent of such
prohibition or unenforceability without invalidating or affecting the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

19.           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same Agreement.

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IN
WITNESS WHEREOF, the Executive and the Company have executed this Agreement
this 1st day of February, 2007.

	
   

  	
   

  	
  /s/Edward J. Faneuil

  
	
   

  	
   

  	
  Edward J.
  Faneuil

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GLOBAL PARTNERS
  LP

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  GLOBAL GP LLC, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/Eric Slifka

  
	
   

  	
   

  	
  Name: 

  	
  Eric Slifka

  
	
   

  	
   

  	
  Title: 

  	
  President and CEO

  

 

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EXHIBIT A

CONFIDENTIALITY
AND RESTRICTED ACTIVITIES

Confidentiality

1.             During the course of the Executive’s employment with the
Company, he has and will learn of Confidential Information, as defined below,
and he may develop Confidential Information on behalf of the Company. Executive
agrees that he will not use or disclose to any Person (except as required by
applicable law or for the proper performance of his regular duties and
responsibilities for the Company) any Confidential Information obtained by him
incident to his employment or any other association with the Company or any of
its Affiliates. Executive understands that this restriction shall continue to
apply after his employment terminates, regardless of the reason for such
termination.

2.             All documents, records and files, in any media of
whatever kind and description, relating to the business, present or otherwise,
of the Company or any of its Affiliates, and any copies, in whole or in part,
thereof, and other Company property, including, without limitation, computers,
cell phones, other electronic devices, discs and customer lists (the “Property”)
whether or not prepared by Executive shall be the sole and exclusive property
of the Company. Executive agrees to safeguard all Property and to surrender to
the Company, at the time his employment terminates or at such earlier time or
times as the Chief Executive Officer or his designee may specify, all Property
then in his possession or control.

Non-Solicitation

3.             During Executive’s employment, and until the later (i)
date on which the Company is required to make its last payment to the Executive
pursuant to the Deferred Compensation Agreement or (ii) two (2) years from the
date payments under this Agreement commence, Executive will not and will not
assist anyone else to (i) hire or attempt to hire any employee of the Company,
and (ii) encourage any employee of the Company to discontinue employment or any
former employee to become employed in any business directly or indirectly
competitive with the Company’s business; provided, however, that Executive may
hire or attempt to hire any administrative assistant or secretary who does not,
and has not, acted in any managerial or executive capacity with the Company.

Non-Competition

4.             During Executive’s employment, and until the later (i)
date on which the Company is required to make its last payment to the Executive
pursuant to the Deferred Compensation Agreement or (ii) two (2) years from the
date payments under this Agreement commence, except as otherwise agreed to by
the Company in writing, the Executive shall be prohibited from working (as an
employee, consultant, advisor, director or otherwise) for, engaging in or
acquiring or investing in any business having assets engaged in the following
businesses (the “Restricted Businesses”) in New England and other
jurisdictions in which the Company is conducting business (“Restricted
Geography”): (i) wholesale marketing, sale, distribution and transportation
of petroleum products; (ii) the storage of petroleum products in 

 8
 

connection with any of the activities described in
(i); (iii) bunkering in connection with petroleum products; and (iv) the
wholesale or retail sale or distribution of petroleum or gasoline products,
unless the Chief Executive Officer of the Company and the Board approve such
activity. Notwithstanding any provision of this paragraph to the contrary, the
Executive may (x) own up to 3% of a publicly traded entity that is engaged in
one or more of the Restricted Businesses and (y) with the prior consent of the
Company, may serve as a director of an entity that is engaged in one or more of
the Restricted Businesses.

Special
Definitions

5.             For purposes of this Exhibit A, “Confidential
Information” means any secret, confidential or proprietary information, knowledge
or data of the Company or its Affiliates obtained by Executive while in the
employ of the Company, the disclosure of which Executive knows or has reason to
know will be damaging to the Company or any of its Affiliates; provided,
however, that such information, knowledge or data shall not include (i) any
information, knowledge or data known generally to the public (other than as a
result of unauthorized disclosure by the Executive) or (ii) any information,
knowledge or data which the Executive may be required to disclose by any
applicable law, order, or judicial or administrative proceeding.

Enforceability

6.             If any provision of this Exhibit A should, for any
reason, be held invalid or unenforceable in any respect, including, but not
limited to, a determination that such provision is unenforceable by reason of
it being extended over too great a time, too large a geographic area, or too
great a range of activities, it shall not affect any other provisions and shall
be construed by limiting it so as to be enforceable to the maximum extent
compatible with applicable law.

 9
 

 

EXHIBIT B

DESIGNATION OF BENEFICIARY

The Executive may designate one or more beneficiaries
to receive any amount of Deferred Compensation that remains payable at his
death.  If the Designated Beneficiary
survives the Executive, but dies before receiving the payment to which he or
she is entitled, the remainder will be paid to the Designated Beneficiary’s
estate, unless you specifically elect otherwise in your Designation of
Beneficiary form.

The Executive may
indicate the names not only of one or more primary Designated Beneficiaries but
also the names of secondary beneficiaries who would receive payment of the
Deferred Compensation in the event that none of the primary beneficiary or beneficiaries
are alive at the time of
Executive’s death.  Designated
Beneficiaries may be changed by the Executive at any time, without their
consent, by filing a new Designation of Beneficiary form with the Company.

***************

I, Edward J.
Faneuil, hereby designate the person or persons listed below to receive any
amount of Deferred Compensation that remains payable to me in the event of my
death, pursuant to the Deferred Compensation Agreement dated February 1, 2007 between
me and Global Partners LP. This designation of beneficiary shall become
effective upon its delivery to the President or Chief Executive Officer of the
Company prior to my death, and revokes any designation(s) of beneficiary
previously made by me. I reserve the right to revoke this designation of
beneficiary at any time without notice to any beneficiary.

I hereby name the
following as primary Designated Beneficiary:

	
  Name

  	
   

  	
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In
the event that one or more of the primary Designated Beneficiaries predeceases
me, his or her share shall be allocated pro rata among the surviving primary
Designated Beneficiaries based on the allocation percentage listed above. I
hereby name the following as secondary Designated Beneficiaries, in the event
that no primary Designated Beneficiary survives me:

	
  Name

  	
   

  	
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  Percentage

  	
   

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
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In the event that
no primary Designated Beneficiary survives me and one or more of the secondary
Designated Beneficiaries predeceases me, his or her share shall be allocated
pro rata among the surviving secondary Designated Beneficiaries based on the
allocation percentage listed above.

	
   

  	
   

  	
   

  
	
  (Witness)

  	
   

  	
  (Signature of Edward J. Faneuil)

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  Date:

  

 

 11Exhibit 10.1

 

 

 

 

FRONTIER AIRLINES HOLDINGS, INC.

EMPLOYEE STOCK OWNERSHIP PLAN

(Amended
and Restated Effective August 1, 2006

executed September 7, 2006)

 

 

 

Any
statements regarding tax matters made herein, including any attachments, cannot
be relied upon by any person to avoid tax penalties and are not intended to be
used or referred to in any marketing or promotional materials.  To the extent this communication contains a
tax statement or tax advice, Holland & Hart LLP
does not and will not impose any limitation on disclosure of the tax
treatment or tax structure of any transactions to which such tax statement or
tax advice relates.

 

 

 

Prepared by

HOLLAND
& HART LLP

ATTORNEYS
AT LAW

SUITE 3200

555 SEVENTEENTH STREET

DENVER, COLORADO 80202-3979

(303) 295-8000

ASPEN •  BILLINGS • 
BOISE •  BOULDER •  CASPER • 
CHEYENNE •  COLORADO SPRINGS
•  DENVER

DENVER TECH CENTER  •  JACKSON HOLE 
•  SALT LAKE CITY •  SANTA FE • 
WASHINGTON, D.C.

 

 

FRONTIER AIRLINES
HOLDINGS, INC. EMPLOYEE STOCK OWNERSHIP PLAN

Table of
Contents

	
   

  	
   

  	
  ARTICLE I

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Affiliated Entity

  	
   

  	
  2

  
	
  1.2

  	
   

  	
  Alternate Payee

  	
   

  	
  2

  
	
  1.3

  	
   

  	
  Annual Addition

  	
   

  	
  2

  
	
  1.4

  	
   

  	
  Break in Service

  	
   

  	
  3

  
	
  1.5

  	
   

  	
  Code

  	
   

  	
  3

  
	
  1.6

  	
   

  	
  Committee

  	
   

  	
  3

  
	
  1.7

  	
   

  	
  Company

  	
   

  	
  3

  
	
  1.8

  	
   

  	
  Company Contributions

  	
   

  	
  3

  
	
  1.9

  	
   

  	
  Compensation

  	
   

  	
  3

  
	
  1.10

  	
   

  	
  Covered Employee

  	
   

  	
  5

  
	
  1.11

  	
   

  	
  Determination Date

  	
   

  	
  5

  
	
  1.12

  	
   

  	
  Determination Year

  	
   

  	
  5

  
	
  1.13

  	
   

  	
  Disability

  	
   

  	
  5

  
	
  1.14

  	
   

  	
  Domestic Relations Order

  	
   

  	
  6

  
	
  1.15

  	
   

  	
  Effective Date

  	
   

  	
  6

  
	
  1.16

  	
   

  	
  Employee

  	
   

  	
  6

  
	
  1.17

  	
   

  	
  ERISA

  	
   

  	
  6

  
	
  1.18

  	
   

  	
  Fiscal Year

  	
   

  	
  6

  
	
  1.19

  	
   

  	
  Five-Percent Owner

  	
   

  	
  6

  
	
  1.20

  	
   

  	
  Highly Compensated Employee

  	
   

  	
  6

  
	
  1.21

  	
   

  	
  Hour of Service

  	
   

  	
  7

  
	
  1.22

  	
   

  	
  Key Employee

  	
   

  	
  8

  
	
  1.23

  	
   

  	
  Leased Employee

  	
   

  	
  9

  
	
  1.24

  	
   

  	
  Limitation Year

  	
   

  	
  9

  
	
  1.25

  	
   

  	
  Look-Back Year

  	
   

  	
  9

  
	
  1.26

  	
   

  	
  Non-Highly Compensated Employee

  	
   

  	
  9

  
	
  1.27

  	
   

  	
  Non-Key Employee

  	
   

  	
  9

  
	
  1.28

  	
   

  	
  Normal Retirement Age

  	
   

  	
  9

  
	
  1.29

  	
   

  	
  Participant

  	
   

  	
  9

  
	
  1.30

  	
   

  	
  Plan Administrator

  	
   

  	
  10

  
	
  1.31

  	
   

  	
  Plan Year

  	
   

  	
  10

  
	
  1.32

  	
   

  	
  Qualified Domestic Relations Order (“QDRO”)

  	
   

  	
  10

  
	
  1.33

  	
   

  	
  Required Beginning Date

  	
   

  	
  10

  
	
  1.34

  	
   

  	
  Spouse

  	
   

  	
  10

  
	
  1.35

  	
   

  	
  Stock

  	
   

  	
  10

  
	
  1.36

  	
   

  	
  Taxable Year

  	
   

  	
  10

  
	
  1.37

  	
   

  	
  Top-Paid Group

  	
   

  	
  10

  
	
  1.38

  	
   

  	
  Valuation Date

  	
   

  	
  11

  
	
  1.39

  	
   

  	
  Year of Service

  	
   

  	
  11

  

 

 i
 

 

	
  

  	
   

  	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
  PARTICIPATION

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Participation

  	
   

  	
  12

  
	
  2.2

  	
   

  	
  Break in Covered Employee Status

  	
   

  	
  12

  
	
  2.3

  	
   

  	
  Enrollment-Procedure

  	
   

  	
  12

  
	
  2.4

  	
   

  	
  Absences

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
  CONTRIBUTIONS

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Company Contributions

  	
   

  	
  14

  
	
  3.2

  	
   

  	
  Return of Contributions

  	
   

  	
  14

  
	
  3.3

  	
   

  	
  Limitation on Annual Additions

  	
   

  	
  15

  
	
  3.4

  	
   

  	
  Military Service

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IV

  	
   

  	
   

  
	
   

  	
   

  	
  INTERESTS
  IN THE TRUST FUND

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Participants’ Accounts

  	
   

  	
  17

  
	
  4.2

  	
   

  	
  Valuation of Trust Fund

  	
   

  	
  17

  
	
  4.3

  	
   

  	
  Allocation of Increase or Decrease in Net Worth

  	
   

  	
  18

  
	
  4.4

  	
   

  	
  Allocation of Company Contributions

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE V

  	
   

  	
   

  
	
   

  	
   

  	
  AMOUNT
  OF BENEFITS

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Vesting Schedule

  	
   

  	
  19

  
	
  5.2

  	
   

  	
  Forfeitures

  	
   

  	
  19

  
	
  5.3

  	
   

  	
  Restoration of Forfeitures

  	
   

  	
  20

  
	
  5.4

  	
   

  	
  Method of Forfeiture Restoration

  	
   

  	
  20

  
	
  5.5

  	
   

  	
  Allocation of Forfeitures

  	
   

  	
  20

  
	
  5.6

  	
   

  	
  Credits for Pre-Break Service

  	
   

  	
  21

  
	
  5.7

  	
   

  	
  Transfers - Portability

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VI

  	
   

  	
   

  
	
   

  	
   

  	
  DISTRIBUTION
  OF BENEFITS

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Beneficiaries

  	
   

  	
  22

  
	
  6.2

  	
   

  	
  Consent

  	
   

  	
  22

  
	
  6.3

  	
   

  	
  Distributable Amount

  	
   

  	
  23

  
	
  6.4

  	
   

  	
  Manner of Distribution

  	
   

  	
  23

  
	
  6.5

  	
   

  	
  Time of Distribution

  	
   

  	
  23

  
	
  6.6

  	
   

  	
  Separate Accounting for Distributable Amounts

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VII

  	
   

  	
   

  
	
   

  	
   

  	
  ALLOCATION
  OF RESPONSIBILITIES - NAMED FIDUCIARIES

  	
   

  	
   

  
	
  7.1

  	
   

  	
  No Joint Fiduciary Responsibilities

  	
   

  	
  26

  
	
  7.2

  	
   

  	
  The Company

  	
   

  	
  26

  
	
  7.3

  	
   

  	
  The Trustee

  	
   

  	
  26

  
	
  7.4

  	
   

  	
  Plan Administrator; Appeals Board

  	
   

  	
  26

  

 

 ii
 

 

	
  7.5

  	
   

  	
  Plan Administrator to Construe Plan

  	
   

  	
  27

  
	
  7.6

  	
   

  	
  Organization of Appeals Board and Committee

  	
   

  	
  27

  
	
  7.7

  	
   

  	
  Agent for Process

  	
   

  	
  27

  
	
  7.8

  	
   

  	
  Indemnification of Appeals Board and Committee
  Members

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VIII

  	
   

  	
   

  
	
   

  	
   

  	
  TRUST
  AGREEMENT

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Trust Agreement

  	
   

  	
  29

  
	
  8.2

  	
   

  	
  Expenses of Trust

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IX

  	
   

  	
   

  
	
   

  	
   

  	
  TERMINATION
  AND AMENDMENT

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Termination of Plan or Discontinuance of
  Contributions

  	
   

  	
  30

  
	
  9.2

  	
   

  	
  Allocations upon Termination or Discontinuance of
  Company Contributions

  	
   

  	
  30

  
	
  9.3

  	
   

  	
  Procedure Upon Termination of Plan or Discontinuance
  of Contributions

  	
   

  	
  30

  
	
  9.4

  	
   

  	
  Amendment by Frontier

  	
   

  	
  31

  
	
  9.5

  	
   

  	
  Amendment to Vesting Schedule

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE X

  	
   

  	
   

  
	
   

  	
   

  	
  SPECIAL
  PROVISIONS REGARDING COMPANY STOCK

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Time of Distribution

  	
   

  	
  32

  
	
  10.2

  	
   

  	
  Put Option Requirements

  	
   

  	
  32

  
	
  10.3

  	
   

  	
  Diversification and Early Distribution

  	
   

  	
  33

  
	
  10.4

  	
   

  	
  Registration

  	
   

  	
  33

  
	
  10.5

  	
   

  	
  Investment of Trust Fund

  	
   

  	
  34

  
	
  10.6

  	
   

  	
  Dividends

  	
   

  	
  34

  
	
  10.7

  	
   

  	
  Voting of Stock

  	
   

  	
  34

  
	
  10.8

  	
   

  	
  Stock to Be Subject to Certain Conditions

  	
   

  	
  34

  
	
  10.9

  	
   

  	
  Valuation of Stock

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE XI

  	
   

  	
   

  
	
   

  	
   

  	
  PLAN
  ADOPTION BY AFFILIATED ENTITIES

  	
   

  	
   

  
	
  11.1

  	
   

  	
  Adoption of Plan

  	
   

  	
  36

  
	
  11.2

  	
   

  	
  Agent of Affiliated Entity

  	
   

  	
  36

  
	
  11.3

  	
   

  	
  Disaffiliation and Withdrawal from Plan

  	
   

  	
  36

  
	
  11.4

  	
   

  	
  Effect of Disaffiliation or Withdrawal

  	
   

  	
  36

  
	
  11.5

  	
   

  	
  Distribution Upon Disaffiliation or Withdrawal

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE XII

  	
   

  	
   

  
	
   

  	
   

  	
  TOP-HEAVY
  PROVISIONS

  	
   

  	
   

  
	
  12.1

  	
   

  	
  Application of Top-Heavy Provisions

  	
   

  	
  38

  
	
  12.2

  	
   

  	
  Determination of Top-Heavy Status

  	
   

  	
  38

  
	
  12.3

  	
   

  	
  Special Vesting

  	
   

  	
  39

  
	
  12.4

  	
   

  	
  Special Minimum Contribution

  	
   

  	
  39

  
	
  12.5

  	
   

  	
  Change in Top-Heavy Status

  	
   

  	
  40

  

 

 iii
 

 

	
  

  	
   

  	
  ARTICLE XIII

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
  13.1

  	
   

  	
  Right to Dismiss Employees - No Employment Contract

  	
   

  	
  41

  
	
  13.2

  	
   

  	
  Claims Procedure

  	
   

  	
  41

  
	
  13.3

  	
   

  	
  Source of Benefits

  	
   

  	
  45

  
	
  13.4

  	
   

  	
  Exclusive Benefit of Employees

  	
   

  	
  45

  
	
  13.5

  	
   

  	
  Forms of Notices

  	
   

  	
  45

  
	
  13.6

  	
   

  	
  Notice of Adoption of the Plan

  	
   

  	
  45

  
	
  13.7

  	
   

  	
  Plan Merger

  	
   

  	
  45

  
	
  13.8

  	
   

  	
  Inalienability of Benefits - Domestic Relations
  Orders

  	
   

  	
  45

  
	
  13.9

  	
   

  	
  Payments Due Minors or Incapacitated Individuals

  	
   

  	
  49

  
	
  13.10

  	
   

  	
  Uniformity of Application

  	
   

  	
  49

  
	
  13.11

  	
   

  	
  Disposition of Unclaimed Payments

  	
   

  	
  49

  
	
  13.12

  	
   

  	
  Pronouns: Gender and Number

  	
   

  	
  49

  
	
  13.13

  	
   

  	
  Applicable Law

  	
   

  	
  49

  

 

 iv

 

FRONTIER AIRLINES HOLDINGS, INC.

EMPLOYEE STOCK OWNERSHIP PLAN

(AMENDED AND RESTATED EFFECTIVE AUGUST 1, 2006)

PREAMBLE

Frontier Airlines, Inc.,
a Colorado corporation, established the Frontier Airlines, Inc. Employee Stock
Ownership Plan effective April 1, 1994. 
Frontier also established a trust (the “Trust”) with a trustee (the
“Trustee”) forming a part of the Plan to be effective at the same
time.  The Plan was amended and restated
effective as of January 1, 1997.  It
was subsequently amended to comply with the Economic Growth and Tax Relief and
Reconciliation Act of 2001 (EGTRRA) and the final regulations for minimum
required distributions under Section 401(a)(9) of the Internal Revenue Code,
and to effect certain other necessary and desirable changes.

Frontier Airlines
Holdings, Inc., a Delaware corporation, (“Frontier” or the “Company”), was
formed in 2006.  Frontier owns all of the
stock of Frontier Airlines, Inc. 
Effective as of the date this restatement is adopted, Frontier Airlines,
Inc. transfers sponsorship of the Frontier Airlines, Inc. Employee Stock
Ownership Plan to the Company, which hereby is renamed the Frontier Airlines
Holdings, Inc. Employee Stock Ownership Plan (the “Plan”), and makes additional
changes to the Plan in this restatement. 
Any Participant (as defined herein) who is credited with at least
one Hour of Service (as defined herein) after the Effective Date (as defined
herein) of this amendment and restatement shall be subject to the provisions of
this Plan as so amended and restated. 
Any Participant in the Plan prior to the Effective Date of this
amendment and restatement who is not credited with an Hour of Service after the
Effective Date of this amendment and restatement shall continue to be governed
by the provisions of the Plan in effect prior to the effective date of this
amendment and restatement.

The Plan and Trust are
intended to comply with the provisions of the Code (as defined herein) and
ERISA (as defined herein), to qualify as both a stock bonus plan under Code Section 401(a) and
an employee stock ownership plan under Code Section 4975(e)(7); however,
the Plan does not purchase, and has never purchased, shares of Stock (as
defined herein) with the proceeds of an “exempt loan” within the meaning of
Treasury Regulation 54.4975-7.

*  * 
*  *  End of Preamble  * 
*  *  *

 1
 

 

ARTICLE I

DEFINITIONS

The following words and
phrases shall have the meaning set forth below:

1.1           Affiliated Entity
means:

(a)           for
all Sections of the Plan except those listed in subsection (b), any corporation
or other entity, now or hereafter formed, that is or shall become affiliated
with the Company, either directly or indirectly, through stock ownership or
control, and which is (i) included in the controlled group of corporations
(within the meaning of Code Section 1563(a) without regard to Code
Section 1563(a)(4) and Code Section 1563(e)(3)(C)) in which the
Company is also included; (ii) included in the group of entities (whether
or not incorporated) under common control (within the meaning of Code
Section 414(c)) in which the Company is also included;
(iii) included in an affiliated service group (within the meaning of Code
Section 414(m)) in which the Company is also included; or
(iv) required to be aggregated with the Company by Code Section 414(o).

(b)           for
purposes of determining Annual Additions under Section 1.3,
limiting Annual Additions to a Participant’s account(s) under Section 3.3,
and construing the defined terms as they are used in Sections 1.3
and 3.3 (such as “Compensation” and “Employee”), the term “Affiliated
Entity” means any Affiliated Entity as determined in
subsections (a)(iii) and (a)(iv), and any entity that would be an
Affiliated Entity under subsections (a)(i) and (a)(ii) if the
phrase “more than 50%” were substituted for the phrase “at least 80%” each
place it occurs in Code Section 1563(a)(1).

1.2           Alternate Payee
means a Participant’s Spouse, former spouse, child, or other dependent who is
recognized by a QDRO as having a right to receive all, or a portion of, the
benefits payable under this Plan with respect to such Participant.

1.3           Annual Addition
means the allocations to a Participant’s account(s) for any Limitation
Year, as described in detail below.

(a)           Annual
Additions shall include: 
(i) Company Contributions to this Plan and any other defined
contribution plan maintained by the Company or any Affiliated Entity;
(ii) Participant before-tax or after-tax contributions to any other
defined contribution plan maintained by the Company or any Affiliated Entity;
(iii) forfeitures allocated to a Participant’s account(s) in this
Plan and any other defined contribution plan maintained by the Company or any
Affiliated Entity (except as provided in subsections (b)(iii) and
(b)(vi) below); (iv) all amounts paid or accrued after December 31,
1985 in Taxable Years ending after December 31, 1985, to a welfare benefit fund
as defined in Code Section 419(e) and allocated to the separate
account (under such welfare benefit fund) of a Key Employee to provide
post-retirement medical benefits; and (v) contributions allocated on the
Participant’s behalf to any individual medical account as defined in Code
Section 415(1)(2).

(b)           Annual
Additions shall not include: 
(i) rollover contributions made pursuant to Code
Section 402(c), 403(a)(4), 403(b)(8), 405(d)(3), 408(d)(3), or
409(b)(3)(C), to any other defined contribution plan maintained by the Company
or an Affiliated Entity; 

 2
 

 

(ii) repayments of loans made to a Participant from a qualified
plan maintained by the Company or any Affiliated Entity; (iii) repayments
of forfeitures for rehired Participants, as described in Code Sections
411(a)(7)(B) and 411(a)(3)(D); (iv) direct transfer of employee
contributions from one qualified plan to this Plan or any other qualified
defined contribution plan maintained by the Company or any Affiliated Entity;
(v) deductible employee contributions within the meaning of Code
Section 72(o)(5); or (vi) repayments of forfeitures of missing
individuals pursuant to Section 13.11.

1.4           Break in Service
means a Plan Year in which a Participant fails to receive credit for more than
500 Hours of Service.  A five-year Break
in Service means five consecutive one-year Breaks in Service.  A leave of absence in a non-paid status that
is approved in writing by the Company or an Affiliated Entity shall not
constitute a Break in Service for eligibility or vesting purposes.  A leave of absence in a non-paid status that
is approved in writing by the Company shall not constitute a Break in Service for
participation purposes.  A Participant
shall be considered to have terminated employment with the Company other than
by reason of retirement, disability or death, upon any separation from service
with the Company, regardless of whether the Participant receives a severance
allowance by way of salary or benefit continuation for any period or in any
other form; provided, however, that no such termination of employment shall be
deemed to have occurred as a result of any of the following:

(a)           Separation
to enter the service of an Affiliated Entity;

(b)           Leave
of absence pursuant to Section 2.4;

(c)           Temporary
disability, causing an absence, followed by resumption of active work within
180 days following the first day of such absence; or

(d)           Absence
from employment for service in the armed forces or other government service
provided that, and only so long as, reemployment rights are protected by law.

1.5           Code means the
Internal Revenue Code of 1986, as amended from time to time, and the
regulations and rulings in effect thereunder from time to time.

1.6           Committee means
the administrative committee provided for in Section 7.4, if one is
appointed by the Company.

1.7           Company or “Frontier”
means Frontier Airlines Holdings, Inc., a Delaware corporation, any successor
thereto, and any Affiliated Entity that adopts the Plan pursuant to Article XI.

1.8           Company Contributions
means all contributions to the Plan made by the Company pursuant to Section 3.1
for the Plan Year.

1.9           Compensation
means:

(a)           Code Section 415
Compensation. 
For purposes of determining the limitation on Annual Additions under Section 3.3
and the minimum contribution under Section 12.4 

 3
 

 

when the Plan is top-heavy, Compensation shall mean those amounts
reported as “wages, tips, other compensation” on Form W-2 by the Company or an
Affiliated Entity.  Compensation shall
include (A) any elective deferral (as defined in Code
Section 402(g)(3)), (B) any amount that is contributed or deferred by
the Company at the election of the Employee and that is not includible in the
gross income of the Employee by reason of Code Section 125 or 457 and
(C) Compensation paid or made available during the Limitation Year shall
include elective amounts that are not includible in the gross income of the
Employee by reason of Code Section 132(f)(4).  For purposes of Section 3.3,
Compensation shall be measured over a Limitation Year.  For purposes of Section 12.4,
Compensation shall be measured over the entire Plan Year.  Compensation shall include amounts paid to
the Employee but shall not include any additional amounts accrued by the
Employee (except for de minimis amounts earned but not paid because of the
timing of pay periods, as provided in the regulations under Code
Section 415).

(b)           Code
Section 414(q) Compensation.  For purposes of identifying Highly Compensated
Employees and Key Employees under Sections 1.20 and 1.23,
Compensation shall include the items described in subsection (a) and
shall also include elective contributions that are not includable in the
Employee’s income pursuant to Code Sections 125, 402(e)(3), 402(h), or
403(b).  For purposes of identifying Key
Employees, Compensation shall be measured over a Plan Year; for purposes of
identifying Highly Compensated Employees, Compensation shall be measured over a
Determination Year or Look-Back Year, whichever is applicable.  Compensation shall include amounts paid to
the Employee, but shall not include any additional amounts accrued by the
Employee (except for de minimis
amounts earned but not paid because of the timing of pay periods, as provided
in the regulations under Code Section 415).

(c)           Benefit Compensation.  For purposes of determining and allocating
Company Contributions under Section 3.1(a) and Section 4.4,
Compensation shall mean the amounts reported as “Wages, tips, other
compensation” on Form W-2 by the Company, plus elective contributions that are
not includable in the Employee’s income pursuant to Code Sections 125, 401(k),
402(e)(3), 402(h), 403(b), 414(h)(2), or 457(b) and amounts that are not
includible in the gross income of the Employee by reason of Code
Section 132(f)(4), but excluding bonuses, expense reimbursements and other
expense allowances, per diem expense payments, fringe benefits, moving
expenses, deferred compensation, the value of any free or reduced rate
transportation, and welfare benefits. 
Compensation shall be measured over that portion of a Plan Year after
the Employee has satisfied the eligibility requirements of Section 2.1(a) and
while the Employee is a Covered Employee.

(d)           Limit on Compensation.  In addition to other applicable limitations
set forth in the Plan, and notwithstanding any other provision of the Plan to
the contrary, the annual Compensation for each employee taken into account
under the Plan shall not exceed $200,000, as adjusted by the Commissioner of the
Internal Revenue Service for increases in the cost of living in accordance with
Code Section 401(a)(17)(B).  The
cost-of-living adjustment in effect for a calendar year applies to any period,
not exceeding twelve months, over which Compensation is determined
(determination period) beginning in such calendar year.  If a determination period consists of fewer
than twelve months, the compensation limit will be multiplied by a fraction,
the numerator of which is the number of months in the determination period, and
the denominator of which is twelve.

 4
 

 

If Compensation for any prior determination period is taken into account
in determining an employee’s benefits accruing in the current Plan Year, the
Compensation for that prior determination period is subject to the annual
compensation limit in effect for that prior determination period.

(e)           Deemed Code Section 125
Compensation.  For
purposes of the definition of Compensation under this Section 1.9
and Section 1.23, amounts under Code Section 125 include any amounts
not available to a Participant in cash in lieu of group health coverage because
the Participant is unable to certify that he or she has other health
coverage.  An amount will be treated as
an amount under Code Section 125 only if the Company does not request or
collect information regarding the Participant’s other health coverage as part
of the enrollment process under the health plan.

1.10         Covered Employee
means any Employee of the Company except for:

(a)           A
leased employee including but not limited to a Leased Employee;

(b)           A
non-resident alien who either (i) receives no earned income (within the
meaning of Code Section 911(d)(2)) from the Company or any Affiliated
Entity that constitutes income from sources within the United States (within
the meaning of Code Section 861(a)(3)) or (ii) receives earned
income from the Company or an Affiliated Entity that constitutes income from
sources within the United States, but such income is exempt from United States
income tax by an income tax treaty or convention; and

(c)           An
Employee included in a unit of Employees covered by a collective bargaining
agreement that does not provide for such Employee’s participation in the Plan,
provided that retirement benefits were the subject of good faith bargaining
during the negotiation of such collective bargaining agreement.

(d)           An
Employee who is classified by the Company in a nondiscriminatory manner as a “consultant.”

(e)           Employees
who are Aircraft Technicians, Ground Service Equipment Technicians, and Tool
Room Attendants (the “Teamster Employees”) whose working conditions are
governed by a collective bargaining agreement between Frontier or an Affiliated
Entity and the International Brotherhood of Teamsters (IBT) — Airline Division
(the “Collective Bargaining Agreement”), unless the Collective Bargaining
Agreement in effect provides for such eligibility.

1.11         Determination Date
means, with respect to each Plan Year, the last day of the preceding Plan Year.

1.12         Determination Year
means the Plan Year.

1.13         Disability means
a physical or mental condition of an Employee of the Company or an Affiliated
Entity that, in the judgment of the Plan Administrator based upon medical
reports and other evidence satisfactory to the Plan Administrator, presumably
permanently prevents him from satisfactorily performing his usual duties for
the Company or the Affiliated Entity or the duties of such other position or
job which the Company or 

 5
 

 

any Affiliated Entity makes available to him and for which such
Employee is qualified by reason of his training, education or experience.

1.14         Domestic Relations Order
means any judgment, decree or order (including approval of a property
settlement agreement) issued by a court of competent jurisdiction that
relates to the provision of child support, alimony payments, or marital
property rights to a Spouse, former spouse, child, or other dependent of the
Participant and is made pursuant to a state domestic relations law (including a
community property law).

1.15         Effective Date means the effective date of this Plan, April
1, 1994.  The Effective Date of this
restatement is August 1, 2006.

1.16         Employee means any
individual who provides services to the Company or an Affiliated Entity as a
common law employee and whose remuneration is subject to the withholding of
federal income tax pursuant to Code Section 3401.  Employee shall not include any individual
(a) who provides services to the Company or an Affiliated Entity under an
agreement, contract, or any other arrangement pursuant to which the individual
is initially classified as an independent contractor or (b) whose
remuneration for services has not been treated initially as subject to the
withholding of federal income tax pursuant to Code Section 3401 even if
the individual is subsequently reclassified as a common law employee as a
result of a final decree of a court of competent jurisdiction or the settlement
of an administrative or judicial proceeding. 
For the sole purpose of applying the nondiscrimination requirements of
Code Section 414(n)(3), Employee shall include Leased Employees; however
if Leased Employees constitute twenty percent (20%) or less of the Company’s
or Affiliated Entity’s Non-Highly Compensated Employees and if the leasing
organization maintains a plan described in Section 1.23 below, the
term “Employee” shall not include any Leased Employees described in Section 1.23
below.

1.17         ERISA means the
Employee Retirement Income Security Act of 1974, as amended, and the
regulations and rulings in effect thereunder from time to time.

1.18         Fiscal Year
means the tax year of the Company which is the year beginning April 1 and
ending March 31 of the following year.

1.19         Five-Percent Owner
means:

(a)           With
respect to a corporation, any individual who owns (either directly or
indirectly according to the rules of Code Section 318) more than 5%
of the value of the outstanding stock of the corporation or stock possessing
more than 5% of the total combined voting power of all stock of the
corporation.

(b)           With
respect to a non-corporate entity, any individual who owns (either directly or
indirectly according to rules similar to those of Code
Section 318) more than 5% of the capital or profits interest in the
entity.

(c)           An
individual shall be a Five-Percent Owner for a particular year if such
individual is a Five-Percent Owner at any time during such year.

1.20         Highly Compensated Employee
means any Employee who

 6
 

 

(a)           during
the Look-Back Year received Compensation from the Company and Affiliated
Entities in excess of $80,000 (as adjusted by the Secretary of the
Treasury) and was a member of the Top Paid Group; or

(b)           was
a Five-Percent Owner during the Look-Back Year or the Determination Year.

Highly
Compensated Employee shall also include a highly compensated former
Employee.  A highly compensated former Employee
includes any Employee who separated or was deemed to have separated from
service prior to the Plan Year, performs no service for the Employer during the
Plan Year, and was a Highly Compensated Employee for either the Plan Year in
which he or she separated from service or any Plan Year ending on or after the
Employee’s 55th birthday, based on the rules applicable to
determining Highly Compensated Employee status as in effect for that
Determination Year, in accordance with Temp.Treas.Reg. § 1.414(q)-1T, Q/A
4 and Notice 97-45.

1.21         Hour of Service
means:

(a)           Each
hour for which an Employee is paid or entitled to payment by the Company or an
Affiliated Entity for the performance of duties for the Company or an
Affiliated Entity during the applicable computation period.  Hours of Service under this subsection shall
be credited to the Employee for the computation period or periods in which the
duties are performed, regardless of when the Employee is paid for such duties.

(b)           Each
hour for which an Employee is paid or entitled to payment by the Company or an
Affiliated Entity on account of a period of time during which no duties are
performed (irrespective of whether the employment relationship has
terminated) due to vacation, holiday, illness, incapacity (including
Disability), layoff, jury duty, military duty or leave of absence.  Hours of Service under this
subsection shall be credited to the Employee for the computation period or
periods in which the period during which no duties are performed occurs, beginning
with the first unit of time to which the payment relates.  Notwithstanding the preceding sentence:

(i)            No more than 501
Hours of Service shall be credited under this subsection to an Employee on
account of any single continuous period during which the Employee performs no
duties (whether or not such period occurs in a single computation period);

(ii)           An hour for which
an Employee is directly or indirectly paid, or entitled to payment, on account
of a period during which no duties are performed shall not be credited to the
Employee if such payment is made or due under a plan maintained solely for the
purpose of complying with applicable worker’s compensation, unemployment
compensation, or disability insurance laws; and

(iii)          Hours of Service
shall not be credited for a payment that solely reimburses an Employee for
medical or medically related expenses incurred by the Employee.  For purposes of this subsection a
payment shall be deemed to be made by or due from the Company or an Affiliated
Entity regardless of whether such payment is made by or due from the Company or
Affiliated Entity directly, or indirectly through, among 

 7
 

 

others, a trust fund, or insurer, to which the Company or Affiliated
Entity contributes or pays premiums and regardless of whether contributions
made or due to the trust fund, insurer or other entity are for the benefit of
particular Employees or are on behalf of a group of Employees in the aggregate.

(c)           Each
hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by the Company or an Affiliated Entity.  Hours of Service under this
subsection shall be credited to the Employee for the computation period or
periods to which the award or agreement pertains rather than the computation
period in which the award, agreement or payment is made.  The same Hours of Service shall not be
credited both under this subsection and either subsection (a) or
subsection (b).

(d)           In
the case of each Employee who is absent from work for any period by reason of
the pregnancy of the Employee, by reason of the birth of a child of the
Employee, by reason of the placement of a child with the Employee in connection
with the adoption of such child by such Employee, by reason of the placement of
a child with the Employee in connection with the Employee’s serving as a foster
parent for such child, or for purposes of caring for such child for a period
beginning immediately following such birth or placement, the Plan shall treat
as Hours of Service, solely for purposes of determining whether a one-year
Break in Service has occurred for purposes of vesting and participation (but
not for purposes of benefit accrual), the following hours:  (i) the Hours of Service that otherwise
would normally have been credited to such Employee but for such absence, or
(ii) in any case in which the Plan is unable to determine the hours
described in subsection (d)(i), eight Hours of Service per day of such absence,
provided, however, that the total number of hours treated as Hours of Service
under this subsection shall not exceed 501 Hours of Service.  The hours described in this
subsection shall be treated as Hours of Service only in the year in which
the absence from work begins, if an Employee would be prevented from incurring
a one-year Break in Service in such year solely because the period of absence
is treated as Hours of Service as provided in this subsection, or in any other
case, in the immediately following year. 
For purposes of this subsection, the term “year” means the period used
in computing a Break in Service. 
Notwithstanding the foregoing, the Plan Administrator may determine that
no credit will be given pursuant to this subsection unless the Employee
furnishes to the Plan Administrator such timely information as the Plan
Administrator may reasonably require to establish that the absence from work is
for reasons referred to in the first sentence of this subsection and the
number of days for which there was such an absence.

(e)           For
purposes of calculating the Hours of Service to be credited to periods during
which no duties are performed and determining the computation periods to which
hours shall be credited, the rules set forth in subsections (b) and
(c) of Department of Labor Regulation Section 2530.200b-2 are hereby
incorporated by reference as though such provisions were fully set forth at
this point.

1.22         Key Employee
means any Employee or former Employee (including any deceased Employee) who at
any time during the Plan Year that includes the Determination Date was an
officer of the Employer having annual compensation greater than $130,000 (as
adjusted under Code Section 416(i)(1) for Plan Years beginning after
December 31, 2002), a 5% owner of the Employer, or a 1% owner of the Employer
having annual compensation 

 8
 

 

of more than $150,000.  For this
purpose, annual compensation means compensation within the meaning of Code
Section 415(c)(3).  The
determination of who is a Key Employee will be made in accordance with Code
Section 416(i)(1) and the applicable regulations and other guidance of
general applicability issued thereunder.

1.23         Leased Employee
means an individual (other than an Employee of the Company or an Affiliated
Entity) who, pursuant to an agreement between the Company or an Affiliated
Entity and a leasing organization, has performed services for the Company or an
Affiliated Entity on a substantially full-time basis for a period of at least
one year, and the services are performed under the primary direction and
control of the Company or Affiliated Entity. 
The Company or an Affiliated Entity shall treat contributions or
benefits provided to the Leased Employee by the leasing organization as
contributions or benefits provided by the Company or an Affiliated Entity to
the extent attributable to services the Leased Employees performed for the
Company or Affiliated Entity. 
Notwithstanding the preceding provisions of this paragraph, the Plan
shall not treat an individual as a Leased Employee if:

(a)           the
Leased Employee is covered by a money purchase pension plan providing:

(i)            a nonintegrated
employer contribution rate of at least 10% of Compensation (including amounts
that are excludable from the Leased Employee’s gross income under Code Sections
125, 132(f)(4)(effective January 1, 2001), 402(e)(3), 402(h), or 403(b)), and

(ii)           immediate
participation, and

(iii)          full and immediate
vesting, and

(b)           Leased
Employees do not constitute more than twenty percent (20%) of the Company’s
or Affiliated Entity’s Non-Highly Compensated Employees.

1.24         Limitation Year
means the Plan Year for purposes of Code Section 415.

1.25         Look-Back Year
means the 12 months immediately preceding the Determination Year.

1.26         Non-Highly Compensated Employee
means an Employee of the Company or an Affiliated Entity who is not a Highly
Compensated Employee.

1.27         Non-Key Employee
means any Participant who is an Employee on the last day of the Plan Year and
who is not a Key Employee.  Non-Key
Employee includes any Employee otherwise eligible to participate in the Plan
but who has failed to have the Employer make contributions to the Plan.

1.28         Normal Retirement Age
means age 60.

1.29         Participant
means any individual with an account balance under the Plan except
beneficiaries and Alternate Payees.  The
term “Participant” shall also include any 

 9
 

 

Covered Employee who has satisfied the eligibility requirements of Section 2.1,
but who does not yet have an account balance.

1.30         Plan Administrator
shall mean the Company, unless the Company elects, pursuant to Section 7.4,
to appoint a separate Committee to act as plan administrator, in which case the
Committee shall be the Plan Administrator.

1.31         Plan Year means
the calendar year.

1.32         Qualified Domestic Relations Order (“QDRO”)
means a Domestic Relations Order that creates or recognizes the existence of an
Alternate Payee’s right to, or assigns to an Alternate Payee the right to,
receive all or a portion of the benefits payable with respect to a Participant
under the Plan and with respect to which the requirements of Section 13.8(c) are
met.

1.33         Required Beginning Date
means April 1 of the calendar year following the later of the calendar year in
which the Participant attains age 701⁄2 or the calendar year in which the
Participant terminates employment; provided however, that the Required
Beginning Date for a Participant who is a Five-Percent Owner is April 1 of the
calendar year following the calendar year in which the Participant attains age
701⁄2.

1.34         Spouse means
the individual to whom a Participant is lawfully married according to the law
of the state of the Participant’s domicile on any of the following dates, as
applicable:  the date of the Participant’s
death, the date any election is filed pursuant to Article VI, or
the date the Participant’s benefits commence. 
A former Spouse of a Participant shall have no interest in this Plan,
except as provided in a QDRO or in a beneficiary designation form executed by
the Participant after the Spouse had become a former Spouse.

1.35         Stock means
voting common stock of Frontier, which is an employer security described in
Code Sections 409(1) and 4975(e)(8) that has a combination of voting
power and dividend rights equal to or in excess of (a) that class of
Frontier’s common stock having the greatest voting power and (b) that
class of Frontier’s common stock having the greatest dividend rights.

1.36         Taxable Year
means the accounting period of the Company for federal income tax purposes.

1.37         Top-Paid Group
means the top 20% of Employees ranked on the basis of Compensation received
during a Determination Year or Look-Back Year. 
For purposes of determining the number of Employees in the Top-Paid
Group, the following Employees may be excluded:

(a)           any
Employee who has not completed six months of service before the end of the
applicable year;

(b)           any
Employee who normally works less than 17-1/2 hours per week, as defined in the
regulations under Code Section 414(q);

 

 10

  
   
  (c)           any
Employee who normally works less than six months during the applicable year, as
defined in the regulations under Code Section 414(q);
  (d)           any
Employee who has not attained age 21 before the end of the applicable year; and
  (e)           any
Employee who is a non-resident alien and who receives no earned income (within
the meaning of Code Section 911(d)(2)) from the Company or any
Affiliated Entity that constitutes income from sources within the United States
(within the meaning of Code Section 861(a)(3)) during the applicable
year.
  Notwithstanding
the foregoing, Frontier may elect, on a consistent and uniform basis, to modify
the permissible exclusions set forth above by substituting any shorter period
of service or lower age.  Frontier may
elect to include all Employees in determining the Top-Paid Group.
  1.38         Valuation Date
means each date on which the securities exchange on which the Stock is traded
is open to conduct business.  If the
Stock is not traded on any securities exchange, Valuation Date means the last day of
each Plan Year and any other dates as specified in Section 4.2 as
of which the assets of the Trust Fund are valued at fair market value and as of
which the increase or decrease in the net worth of the Trust Fund is allocated
among the Participants’ accounts.
  1.39         Year of Service
means a 12-consecutive-month period as described below.
  (a)           For
purposes of vesting under Article V, an Employee shall be credited
with a Year of Service on the day he is credited with at least 1,000 Hours of
Service during a Plan Year.  For rehired
Employees, Years of Service shall be calculated according to the rules in Section 5.6.  Service prior to the Effective Date shall be
included.  Years of Service shall accrue
while an Employee is on an approved leave of absence as provided in Section 2.4;
however, unless the Employee is absent because of military service or jury
duty, the Employee shall not be credited with more than six months of service
(or such longer period of service as satisfies the safe-harbor rule in the regulations
under Code Section 401(a)(4)) towards his Years of Service while he
is absent, unless required by applicable federal law.
  (b)           A
transfer of employment from one participating Affiliated Entity to another
shall not be an interruption of services for purposes of this Plan.  Years of Service with an entity that is part
of a controlled or affiliated group plan (within the meaning of Code
Section 414) of which the Company is a member, while such entity is a
part of such controlled or affiliated group with the Company, shall be treated
as Years of Service for all purposes of the Plan.
  *  * 
*  *  End of Article I  * 
*  *  *

 11
 

     
  ARTICLE II

PARTICIPATION
  2.1           PARTICIPATION.
  (a)           General.  Each Covered Employee shall become a
Participant on the first day on which the Covered Employee first performs an
Hour of Service with the Company or an Affiliated Entity on initial employment
or latest reemployment.
  (b)           Gaining Covered Employee Status.  Any Employee whose employment status is
changed so as to become a Covered Employee shall become a Participant as of the
day of such reclassification.
  (c)           Losing Covered Employee Status.  Any Covered Employee whose employment status
is changed so that the Covered Employee ceases being a Covered Employee shall
cease participation in the Plan as of the day of such reclassification.  Any Covered Employee whose working conditions
are governed by a collective bargaining agreement that provides that the
Covered Employee shall not continue to participate in the Plan shall cease
participation in the Plan on the date provided in the applicable collective
bargaining agreement.
  (d)           Service While Not a Covered Employee.  Service while in an ineligible category shall
be credited for all purposes of the Plan.
  2.2           BREAK
IN COVERED EMPLOYEE STATUS
  (a)           No Termination of
Employment. 
A Covered Employee who has satisfied the requirements of Section 2.1
and whose employment status has changed so as to be eliminated from the class
of Covered Employees shall be immediately eliminated from participation in the
Plan.  A Covered Employee who has
satisfied the requirements of Section 2.1 before ceasing to be a
Covered Employee, who ceases to be a Covered Employee without terminating
employment and who later becomes a Covered Employee again shall immediately be
eligible to participate in the Plan.  In
either event, service while in an ineligible category shall be credited for all
purposes of the Plan.
  (b)           Termination of Employment.  In the case of any Participant who has
terminated employment, such Participant shall be eligible to participate in the
Plan on his date of reemployment if he is a Covered Employee.
  2.3           ENROLLMENT-PROCEDURE.  In order to participate in the Plan, each
Covered Employee who has satisfied the eligibility requirements of Sections 2.1
or 2.2 shall fill out and sign an enrollment form supplied by the Plan
Administrator (and such other forms as the Plan Administrator may
require) and return such form(s) to the Plan Administrator.  The form(s) shall include, among other
information, the date of birth of the Covered Employee, and the name, address,
and date of birth of each beneficiary of the Covered Employee.
  2.4           ABSENCES.  A leave of absence in a non-paid status
approved in writing by the Company or an Affiliated Entity shall not constitute
a termination of employment for 

 12
 

     
  eligibility or vesting purposes. 
A leave of absence in a non-paid status approved in writing by the
Company shall not constitute a termination of employment for participation
purposes.
  *  * 
*  *  End of Article II  *  *  *  *

 13
 

     
  ARTICLE III

CONTRIBUTIONS
  3.1           COMPANY
CONTRIBUTIONS.
  (a)           Company Contributions.  For each Plan Year, the Company shall
contribute to the Trust Fund such amount of Company Contributions, if any, as
may be authorized by the Company’s Board of Directors.  The Company may elect to treat any portion of
forfeitures occurring during the Plan Year as Company Contributions, pursuant
to Section 5.5.  Company
Contributions shall be allocated among eligible Participants in accordance with
Section 4.4.
  (b)           Form of Contributions.  Company Contributions may be made in cash or
in Stock, or partly in each, as determined by the Company’s Board of Directors.
  (c)           Miscellaneous
Contributions.
  (i)            The Company may
make additional contributions to the Plan to restore amounts forfeited from the
Company Contributions accounts of certain rehired Participants, pursuant to Section 5.4.  This additional contribution shall be
required only when the forfeitures occurring during the Plan Year are
insufficient to restore such forfeited amounts, as described in Section 5.5.  This contribution shall be allocated to the
Participant’s Company Contributions account.
  (ii)           The Company may
make additional contributions to the Plan to satisfy the minimum contribution
required by Section 12.4.  The Company may elect to use any portion of
forfeitures occurring during the Plan Year for this purpose, pursuant to Section 5.5.  This contribution shall be allocated to
Company Contributions accounts.
  (iii)          The Company may
make additional contributions to the Plan to restore the forfeited benefit of
any missing individual, pursuant to Section 13.11.  This additional contribution shall be
required only when the forfeitures occurring during the Plan Year are
insufficient to restore such forfeited amounts, as described in Section 5.3.
  (d)           Contributions Contingent
on Deductibility. 
Company Contributions for a Plan Year (excluding forfeitures) shall
not exceed the amount allowable as a deduction for the Taxable Year ending with
or within the Plan Year pursuant to Code Section 404.  Company Contributions shall be paid to the
Trustee no later than the due date (including any extensions) for filing
the Company’s federal income tax return for such year.  Company Contributions may be made without
regard to current or accumulated earnings and profits.
  3.2           RETURN
OF CONTRIBUTIONS. 
Upon request of the Company, the Trustee shall return:
  (a)           To
the Company, any Company Contribution made under a mistake of fact.  The amount that shall be returned shall not
exceed the excess of the amount contributed (reduced to reflect any decrease in
the net worth of the Trust Fund attributable thereto) over the amount that
would have been contributed without the mistake of fact.  

 14
 

     
  Appropriate reductions shall be made in the accounts of Participants to
reflect the return of any contributions previously credited to such
accounts.  However, no contribution shall
be returned to the extent that such reduction would reduce the account of a
Participant to an amount less than the balance that would have been credited to
his account had the contribution not been made. 
Any contribution made under a mistake of fact shall be returned within
one year after the date of payment.
  (b)           To
the Company, any Company Contribution that is not deductible under Code
Section 404.  All contributions
under the Plan are expressly conditioned upon their deductibility for federal
income tax purposes.  The amount that
shall be returned shall be the excess of the amount contributed (reduced to
reflect any decrease in the net worth of the Trust Fund attributable
thereto) over the amount that would have been contributed if there had not
been a mistake in determining the deduction. 
Appropriate reductions shall be made in the accounts of Participants to
reflect the return of any contributions previously credited to such
accounts.  However, no contribution shall
be returned to the extent that such reduction would reduce the
account(s) of a Participant to an amount less than the balance that would
have been credited to his account(s) had the contribution not been
made.  Any contribution conditioned on
its deductibility shall be returned within one year after it is disallowed as a
deduction.
  3.3           LIMITATION
ON ANNUAL ADDITIONS.
  (a)           General Limit.  Except to the extent permitted under Code
Section 414(v), the Annual Additions to a Participant’s account(s) in this
Plan and any other defined contribution plan maintained by the Company or an
Affiliated Entity for any Limitation Year shall not exceed in the aggregate the
lesser of (i) 100% of such Employee’s Compensation within the meaning of
Code Section 415(c)(3); or (ii) $40,000, as adjusted for increases in the
cost of living under Code Section 415 (d) (the applicable “Dollar Limitation”).  The compensation limit referred to in subsection (i)
above shall not apply to any contribution for medical benefits after separation
from service (within the meaning of Code Sections 401(h) or 419A(f)(2)) which
is otherwise treated as an annual addition.
  (b)           Reduction in Annual
Additions. 
If, as a result of a reasonable error in estimating Compensation, or as
a result of the allocation of forfeitures, or as a result of other facts and
circumstances as provided in the regulations under Code Section 415, the
Annual Additions to a Participant’s account(s) would, but for this
subsection, exceed the foregoing limits, the Annual Additions shall be reduced,
to the extent necessary.  If the
Participant in question is a Participant both in this Plan and in any other
defined contribution plan maintained by the Company, the Participant’s Company
Contributions shall first be reduced in such other plan and then, to the extent
necessary, shall be reduced in this Plan. 
The amount of any reduction of Company Contributions shall be placed in
a suspense account in the Trust Fund and used to reduce Company Contributions
to the Plan.  The following rules shall
apply to such suspense account: 
(i) no further Company Contributions may be made if the allocation
thereof would be precluded by Code Section 415; (ii) any increase or
decrease in the net value of the Trust Fund attributable to the suspense
account shall not be allocated to the suspense account, but shall be allocated
to the remainder of the Trust Fund; and (iii) all amounts held in the
suspense account shall be allocated as of each succeeding allocation date on
which forfeitures may be allocated 

 15
 

     
  pursuant to Section 5.5 (and may be allocated more
frequently if the Plan Administrator so directs), until the suspense account is
exhausted.
  3.4           MILITARY
SERVICE.  Notwithstanding
any provision of this plan to the contrary, contributions, benefits, and
service credit with respect to qualified military service will be provided in
accordance with Code Section 414(u) for individuals who initiate
reemployment on and after December 12, 1994.
  *  * 
*  *  End of Article III  * 
*  *  *

 16
 

     
  ARTICLE IV

INTERESTS IN THE TRUST FUND
  4.1           PARTICIPANTS’
ACCOUNTS. 
The Plan Administrator shall establish and maintain separate accounts in
the name of each Participant, but the maintenance of such accounts shall not
require any segregation of assets of the Trust Fund.  Each Participant’s share of the Company
Contributions under Section 3.1(a) as well as forfeitures,
together with any increase or decrease in the net worth of the Trust Fund attributable
to such Company Contributions and forfeitures, shall be credited to his Company
Contributions Account.  Shares of Stock
contributed to or purchased by the Trust Fund shall be allocated directly to
the appropriate Participant accounts.
  4.2           VALUATION
OF TRUST FUND.
  (a)           General.  The Trustee shall value the assets of the
Trust Fund as of each Valuation Date. 
The Trustee shall deduct any expenses of the Trust Fund occurring since
the preceding Valuation Date (if the expenses are not paid by the Company),
pursuant to Section 8.2, and then determine the increase or
decrease in the net worth of the Trust Fund that has occurred since the
preceding Valuation Date.  The Trustee
shall separately determine the share of the increase or decrease attributable to
any amount separately accounted for under subsections (c) and (d).  In addition, the Plan Administrator may
direct the Trustee to have a special valuation of the assets of the Trust Fund
when the Plan Administrator determines, in its sole discretion, that such
valuation is necessary or appropriate or in the event of unusual market
fluctuations of such assets.  Valuations
and special valuations shall not include any Company Contributions for the
current Plan Year, or any unallocated forfeitures.
  (b)           Appraisal of Stock.  If the Stock is not readily tradable on an
established securities market, it shall be valued by an independent appraiser,
pursuant to Section 10.9. 
The Plan Administrator may order a special valuation of Stock as of the
end of any calendar month if the Plan Administrator believes that its fair
market value has changed substantially since the most recent Valuation
Date.  Any decision made under this
subsection in good faith shall be final and conclusive.
  (c)           Mandatory Separate
Accounting. 
The Trustee shall separately account for amounts subject to a QDRO, to
provide a more equitable allocation of any increase or decrease in the net
worth of the Trust Fund.
  (d)           Permissible Separate
Accounting. 
The Trustee may separately account for the following amounts to provide
a more equitable allocation of any increase or decrease in the net worth of the
Trust Fund:
  (i)            the distributable
account of a Participant, pursuant to Section 6.6, including any
amount distributable to an Alternate Payee or to a beneficiary of a deceased
Participant; and
  (ii)           Any other amounts
for which separate accounting will provide a more equitable allocation of the
increase or decrease in the net worth of the Trust Fund.

 17
 

     
  4.3           ALLOCATION
OF INCREASE OR DECREASE IN NET WORTH.
  (a)           Separate Accounting.  As of each Valuation Date, the Plan
Administrator shall allocate the increase or decrease in the net worth of the
Trust Fund that has occurred since the preceding Valuation Date between the
non-separately accounted for portion of the Trust Fund and the amounts
separately accounted for that are identified in Section 4.2.
  (b)           Non-Stock Amounts.  As of each Valuation Date, the Plan
Administrator shall allocate the increase or decrease attributable to the
non-separately accounted for portion of the Trust Fund among the non-Stock
investments in the Company Contributions Accounts in the ratio that the dollar
value of each such account bore to the aggregate dollar value of all such
accounts on the preceding Valuation Date after all allocations and credits made
as of such date had been completed.
  (c)           Dividends in Stock.  As of each Valuation Date, the
Plan Administrator shall allocate among the Company Contributions Accounts any
dividends on the Stock paid in the form of Stock.  The allocation shall be proportional to the
number of shares in such accounts on the record date for the payment of the
dividend.
  (d)           Other Amounts.  After the allocation in subsections (b) and
(c) are completed, the Trustee shall allocate any amounts separately accounted
for (including the increase or decrease in the net worth of the Trust Fund
attributable to such amounts) to the appropriate account(s) if such separate
accounting is no longer necessary.
  4.4           ALLOCATION
OF COMPANY CONTRIBUTIONS.  Allocations under this Section 4.4
shall be made after the allocations under Section 4.3.  Forfeitures occurring during the Plan Year
shall be allocated as of the last day of each Plan Year.  These amounts shall be allocated among the
Company Contributions accounts of Participants who were employed on the last
day of the Plan Year or who died, retired or terminated employment because of a
Disability during such Year.  Each
Participant eligible to share in the Company Contribution shall receive an
allocation in the proportion that each such Participant’s Compensation for such
Plan Year bears to the aggregate Compensation of all such Participants with
respect to such Plan Year.  No amount
shall be allocated to the Teamster Employees for any Plan Year unless provided
otherwise by the Collective Bargaining Agreement.
  *  * 
*  *  End of Article IV  * 
*  *  *

 18
 

     
  ARTICLE V

AMOUNT OF BENEFITS
  5.1           VESTING SCHEDULE.
  (a)           A
Participant shall have a fully vested and nonforfeitable interest in all his
account(s) upon his Normal Retirement Age if he is an Employee on such date,
his death while an Employee or while on an approved leave of absence from the
Company or an Affiliated Entity, or his termination of employment with the
Company or an Affiliated Entity because of a Disability.  In all other instances, a Participant shall
become vested in his Company Contributions account in accordance with the
following schedule.
    	  Years of Service
  	   
  	  Vested Percentage
  	   
  
	  1
  	   
  	  20
  	   
  
	  2
  	   
  	  40
  	   
  
	  3
  	   
  	  60
  	   
  
	  4
  	   
  	  80
  	   
  
	  5 or more
  	   
  	  100
  	   
  

  
   
  Teamster
Employees who were Employees on January 4, 2006 shall be fully vested in their
account balances without regard to their Years of Service.  Teamster Employees who terminated employment
with the Company and all Affiliated Entities prior to January 4, 2006 are
vested in their account balances according to the terms of the Plan in effect
on the date they terminated employment.
  (b)           Notwithstanding
the foregoing, in the event of the merger, consolidation or liquidation of the
Company, or the acquisition of its assets or Stock pursuant to a non-taxable
reorganization, if the Company is not the surviving entity as a result of any
such transaction, all Participants in the Plan shall, upon the occurrence of
any such event, become 100% vested in their Company Contribution account.
  5.2           FORFEITURES.
  (a)           Notwithstanding
the vesting rules of Section 5.1, Annual Additions to a Participant’s
accounts and any increase or decrease in the net worth of the Trust Fund
attributable to such Annual Additions may be reduced to satisfy the limits
described in Section 3.3. 
Any such reduction shall be allocated as specified in Section 3.3.
  (b)           Notwithstanding
the vesting rules of Section 5.1, a missing individual’s vested
accounts may be forfeited as of the last day of any Plan Year, as provided in Section 13.11.  Any such forfeiture shall be allocated as
specified in Section 5.5.
  (c)           A
Participant’s non-vested interest in his Company Contributions account shall be
forfeited as soon as administratively practicable after the first to occur of
the following:

 19
 

     
  (i)            the date on which
the Participant receives a distribution of his entire vested interest in his
Company Contributions account; or
  (ii)           the date on which
the Participant terminates employment, if the Participant terminates employment
with the Company and all Affiliated Entities while he is 0% vested (in such
case the Participant shall be deemed to have received a distribution of his
entire vested interest in such account on the day he terminated employment); or
  (iii)          the last day of the
Plan Year in which the Participant incurs a five-year Break in Service.
  5.3           RESTORATION
OF FORFEITURES. 
The forfeiture of a missing individual’s account(s), as described in Section 13.11,
shall be restored to such individual if he makes a claim for such amount.  Forfeitures of a Participant’s non-vested
interest in his Company Contributions account shall be restored under the
following conditions if the Participant is rehired.
  (a)           If
a Participant is rehired before he incurs a five-year Break in Service, and the
Participant has received a distribution of his entire vested interest in his
Company Contributions account (with the result that the Participant forfeited
his non-vested interest in such account), then the Participant may repay to the
Plan the entire distribution, without interest, within five years of his date
of reemployment.  The required repayment
shall consist of the number of shares of Stock previously distributed to the
Participant, together with any cash distributed; if the Participant no longer
owns the Stock that was distributed to him, he may contribute cash equal to the
current fair market value of the number of shares previously distributed and
the Trustee shall use such cash to purchase shares of Stock.  If timely repayment is made, the exact amount
of the forfeiture shall be restored to the Participant’s account.  If timely repayment is not made, no
forfeiture shall be restored.
  (b)           If
a Participant was 0% vested at the time he terminated employment with the
Company and Affiliated Entities, and he is rehired before he incurs a five-year
Break in Service, then the Company shall restore the exact amount forfeited
from his Company Contributions account.
  (c)           If
a Participant is rehired after he incurs a five-year Break in Service, then no
amount forfeited from his Company Contributions account shall be restored to
such account.
  All the rights, benefits,
and features available to the Participant when the forfeiture occurred shall be
available with respect to the restored forfeiture.
  5.4           METHOD
OF FORFEITURE RESTORATION.  Forfeitures that are restored pursuant to Section 5.3
shall be accomplished by an allocation of the forfeitures occurring during the
Plan Year, pursuant to Section 5.5, or if such forfeitures are
insufficient, by a special Company Contribution, pursuant to Section 3.1(c)(i).
  5.5           ALLOCATION
OF FORFEITURES. 
As of the last day of each Plan Year, the forfeitures attributable to
Company Contributions that occurred during the Fiscal Year shall be allocated
as follows.  Forfeitures shall be first
used to restore forfeitures pursuant to
   

 20

 

Section 5.4.  Any remaining amount of forfeitures shall be
allocated as though it were an additional Company Contribution to the
Plan.  If more than one employer has
adopted this Plan pursuant to Article XI, forfeitures arising in
accounts of Employees of each participating employer shall be aggregated and
allocated as provided above.

5.6           CREDITS FOR PRE-BREAK SERVICE.

(a)           Company Contributions Made
After Reemployment.  A Participant who incurs a Break in Service,
and who is thereafter reemployed, shall receive credit for vesting purposes for
Years of Service prior to his Break in Service upon completing a Year of
Service after such Break in Service.

(b)           Company Contributions Made
Prior to Termination.  Years of Service after a Participant has
incurred a five-year Break in Service shall be disregarded in determining the
vested percentage in a Participant’s Company Contributions account at the time
of the break.

5.7           TRANSFERS
- PORTABILITY. 
If any other employer adopts this or a similar employee stock ownership
plan and enters into a reciprocal agreement with the Company that provides that
(a) the transfer of a Participant from such employer to the Company (or
vice versa) shall not be deemed a termination of employment for purposes
of the plans, and (b) service with either or both employers shall be
credited for purposes of vesting under both plans, then the transferred
Participant’s account shall be unaffected by the transfer, except, if deemed
advisable by the Plan Administrator, it may be transferred to the trustee of
the other plan.

*  * 
*  *  End of Article V  * 
*  *  *

 21
 

 

ARTICLE VI

DISTRIBUTION OF BENEFITS

6.1           BENEFICIARIES.

(a)           General.  Each Participant (or, if the Participant has
died, his beneficiary) shall file with the Committee a designation of the
beneficiaries and contingent beneficiaries to whom the distributable amount
(determined in Section 6.3) shall be paid in the event of his
death.  A beneficiary designation may be
changed by the Participant or beneficiary at any time and without the consent
of any previously designated beneficiary; however, if the Participant is
married, his Spouse shall be the beneficiary designated to receive the benefits
payable under this Article VI unless his Spouse has consented to
the designation of a different beneficiary. 
To be effective, the Spouse’s consent must be in writing, witnessed by a
notary public, and filed with the Committee. 
Any such election shall be effective only as to the Spouse who signed
the election.

(b)           Divorce.  If a Participant has designated his Spouse as
his beneficiary, and the Participant and this Spouse subsequently divorce, then
the beneficiary designation shall be void and of no effect on the day such
divorce is final.  The Participant may
designate a former Spouse as a beneficiary in a beneficiary designation signed
after the divorce is final; provided however, that if the Participant
remarries, the new Spouse shall be the sole designated beneficiary unless the
new Spouse consents to the designation of a new beneficiary.

(c)           Default:  No Effective Beneficiary Designation.  In the absence of an effective beneficiary
designation as to any portion of the distributable amount of the deceased
Participant’s account(s), such amount shall be paid to the Participant’s
surviving Spouse; or if none, to his estate.

6.2           CONSENT.

(a)           $1,000 or Less.  If a Participant’s account(s) are
immediately distributable under Section 6.5, and if the
nonforfeitable portion of the Participant’s account(s) has an aggregate
value of $1,000 or less (calculated in accordance with applicable Treasury
regulations), and if distributions pursuant to Section 6.5 have not
begun, then the Committee shall distribute the distributable amount (determined
in Section 6.3) of the Participant’s account(s) without the
Participant’s consent.  Any such
distribution shall be in the form of a lump sum.  Any such distribution shall be made to the
Participant, or, if deceased, to his beneficiary determined in Section 6.1.

(b)           More Than $1,000.  If a Participant’s account(s) are
immediately distributable under Section 6.5 and if the
nonforfeitable portion of a Participant’s account(s) has an aggregate value
greater than $1,000 (calculated in accordance with applicable Treasury
regulations), then, except as provided in Section 6.5(c) or 6.5(d)  6.5(d), any distribution of such
account(s) shall only be made with the consent of the Participant or, if the
Participant is deceased, the beneficiary determined under Section 6.1.  To be effective, the consent to the form of
distribution and the time of distribution must be in writing or in an
electronic or telephonic form that satisfies the requirements of Treas. 

 22
 

 

Reg. § 1.411(a)-11, signed by the Participant (or beneficiary),
and filed with the Plan Administrator not more than 90, and not less than 30,
days prior to the date the distribution is to occur; provided however, that the
distribution may be made, or commence, fewer than 30 days after the consent is
given if (i) the Plan Administrator clearly informs the Participant (or
beneficiary) that the Participant (or beneficiary) has a right to a period
of at least 30 days to consider whether to elect a distribution and the form of
distribution and (ii) the Participant (or beneficiary) affirmatively
elects a distribution.  A consent once
given shall be irrevocable once distribution has begun.

6.3           DISTRIBUTABLE
AMOUNT.  The
distributable amount of a Participant’s account(s) is the vested portion
of his account(s) (as determined pursuant to Article V) as of
the Valuation Date coincident with or next preceding the date distribution is
made to the Participant or beneficiary, reduced by any amount that is payable
to an Alternate Payee pursuant to Section 13.8.  Notwithstanding the foregoing, distributions
in the form of Stock shall be valued at the fair market value of the Stock on
the date that the Trustee directs the transfer agent for the Stock to transfer
the shares of Stock into the name of the Participant or beneficiary.

6.4           MANNER
OF DISTRIBUTION. 
All distributions shall be made in shares of Stock, provided, however,
that the Plan Administrator may, in its sole discretion, cause the Trustee to
convert a fractional share to cash and distribute the cash attributable
thereto.  The distributable amount shall
be paid in a lump sum distribution.

6.5           TIME OF
DISTRIBUTION. 
All distributions except immediate cash-outs under Section 6.2
shall be subject to the following rules. 
Immediate cash-outs shall be subject to the direct transfer rules
discussed in subsection  (f).

(a)           Earliest Date of
Distribution. 
Unless an earlier distribution is permitted by subsection (b) or
required by subsection (c), the earliest date that a Participant may elect
to receive a distribution is as follows.

(i)            Termination of Employment.  If a Participant terminates employment for
any reason, he may elect to receive a distribution as soon as practicable;
provided, that if a Participant terminates employment with the Company or
Affiliated Entity because of Disability, death or after attaining Normal
Retirement Age, he (or his beneficiary) may elect to receive a
distribution as soon as practicable after the allocations are completed for the
Plan Year in which the Participant terminated employment. If distribution from
the Trust Fund is to be made after the Plan Year in which a Participant terminates
employment, such distribution shall include the full amount of the Participant’s
share of the Company Contributions for such Plan Year, if he is eligible for
such allocation under Sections 3.1 and 4.4.  If distribution from the Trust Fund is made
before the allocation of a Participant’s share of the Company Contributions for
the Plan Year in which he terminates employment and if he is otherwise eligible
for such allocation under Sections 3.1 and 4.4, then the full amount of
the Participant’s share of the Company Contributions for such Plan Year, if
any, shall be distributed to the Participant, if living and, if not, to his
beneficiary, in a lump sum not later than 60 days after the date on which such
amount is allocated.

 23
 

 

(ii)           During Employment. A Participant
may not obtain a distribution while employed by the Company or an Affiliated
Entity, except as provided in subsection (a)(iii) (relating to termination of
participation pursuant to a collective bargaining agreement) or
subsection (c) (relating to the required minimum distribution at a
Participant’s Required Beginning Date).

(iii)          Distribution to Certain Teamster Employees.  A Teamster Employee may elect to receive a
distribution of all or a portion of his vested account balance as soon as practicable.  The distributable amount, form of
distribution, and consent requirements shall be governed by the provisions of
Article VI of the Plan, including the cash out provisions of Section 6.2(b)
and of the Code.

(b)           Alternate Earliest Date of
Distribution. 
Notwithstanding Subsection (a), unless a Participant elects
otherwise, his distribution shall commence no later than 60 days after the
close of the latest of:  (i) the
Plan Year in which the Participant attains Normal Retirement Age; (ii) the
Plan Year in which occurs the tenth anniversary of the year in which the
Participant commenced participation in the Plan; and (iii) the Plan Year
in which the Participant terminates employment with the Company and Affiliated
Entities.

(c)           Latest Date of Distribution.  Distribution must be made in a lump sum no
later than the Required Beginning Date. 
The Plan will comply with the minimum distribution requirements of Code
Section 401(a)(9) in accordance with the regulations under Code
Section 401(a)(9), notwithstanding any provision of the Plan to the
contrary.

(d)           Distribution Upon
Participant’s Death.  Distribution shall be made in a lump sum to
the Participant’s beneficiary by the end of the calendar year in which falls
the fifth anniversary of the Participant’s death.

(e)           Alternate Payee.  The earliest date that an Alternate Payee may
receive a distribution shall be determined pursuant to Section 13.8.

(f)            Direct Rollover Option.

(i)            A Participant, an
Alternate Payee who is the spouse or former spouse of a Participant, or a
surviving spouse of a deceased Participant (collectively, the “distributee”)
may direct the Trustee to pay all or any portion of his “eligible rollover
distribution” to an “eligible retirement plan” in a “direct rollover.”  Within a reasonable period of time before an
eligible rollover distribution, the Plan Administrator shall inform the
distributee of this direct rollover option, the appropriate withholding rules,
other rollover options, the options regarding income taxation, and any other information
required by Code Section 402(f).  If
a distribution is one to which Code Sections 401(a)(11) and 417 do not
apply, such distribution may commence less than 30 days after the notice
required under Section 1.411(a)-11(c) of the Income Tax Regulations is
given, provided that (i) the Plan Administrator clearly informs the
Participant that the Participant has a right to a period of at least 30 days
after receiving the notice to consider the decision of whether or not to elect
a distribution (and, if applicable, a particular distribution option), and
(ii) the Participant, after receiving the notice, affirmatively elects a
distribution.  For purposes of the
foregoing sentence, a distributee is treated as a Participant.

 24
 

 

(ii)           An “eligible
rollover distribution” is any distribution or in-service withdrawal other than
(i) distributions required under Code Section 401(a)(9),
(ii) distributions of amounts that have already been subject to federal
income tax (such as defaulted loans), (iii) installment payments in a
series of substantially equal payments made at least annually and (A) made
over a specified period of ten or more years, (B) made for the life or
life expectancy of the distributee, or (C) made for the joint life or life
expectancy of the distributee and his designated beneficiary, (iv) any amount
that is distributed on account of hardship; or (v) any other actual or
deemed distribution specified in the regulations issued under Code
Section 402(c).  A distribution
shall not fail to be an “eligible rollover distribution” merely because the
distribution consists of after-tax contributions which are not includible in
gross income; provided that the contributions may be transferred only to an
individual retirement account or annuity or to a qualified defined contribution
plan (as those terms are defined in subsection (iii) below) that agrees to
separately account for amounts so transferred.

(iii)          For a Participant
or an Alternate Payee who is the Spouse or former Spouse of a former or current
Participant, an “eligible retirement plan” is an individual retirement account
or annuity described in Code Section 408(a) or 408(b), an annuity plan
described in Code Section 403(a) or 403(b), an eligible plan under Code
Section 457(b) which is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or political subdivision of
a state that agrees to separately account for amounts transferred into such
plan, or the qualified trust of a defined contribution plan that accepts eligible
rollover distributions.  For a surviving
Spouse of a deceased Participant, an “eligible retirement plan” is an
individual retirement account or annuity.

(iv)          A “direct rollover”
is a payment by the Trustee to the eligible retirement plan specified by the
distributee.

(v)           An “Alternate Payee”
is a former or current Participant’s spouse, former spouse, child, or other
dependent who is recognized by a qualified domestic relations order (within the
meaning of Code Section 414(p)) as having a right to receive all, or a
portion of, the benefits payable under this Plan with respect to the
Participant or former Participant.

6.6           SEPARATE
ACCOUNTING FOR DISTRIBUTABLE AMOUNTS.  When a Participant’s account(s) have become
distributable, in whole or in part, the Plan Administrator may direct the
Trustee to separately account for and separately invest the account(s), or the
distributable portion thereof.  All
distributions shall be paid solely from the separate account.  Amounts thus separately accounted for shall
not share in the increase or decrease in the net worth of the remainder of the
Trust Fund.

*  * 
*  *  End of Article VI  * 
*  *  *

 25
 

 

ARTICLE VII

ALLOCATION OF RESPONSIBILITIES - NAMED FIDUCIARIES

7.1           NO
JOINT FIDUCIARY RESPONSIBILITIES.  The Company, the Trustee, the Plan
Administrator and the Appeals Board (as established pursuant to Section 7.4)
shall be the named fiduciaries under the Plan and Trust Agreement and shall be
the only named fiduciaries thereunder. 
The fiduciaries shall have only the responsibilities specifically
allocated to them herein or in the Trust Agreement.  Such allocations are intended to be mutually
exclusive and there shall be no sharing of fiduciary responsibilities.  Whenever one named fiduciary is required by
the Plan or Trust Agreement to follow the directions of another named
fiduciary, the two named fiduciaries shall not be deemed to have been assigned
a shared responsibility, but the responsibility of the named fiduciary giving
the directions shall be deemed his sole responsibility, and the responsibility
of the named fiduciary receiving those directions shall be to follow them
insofar as such instructions are on their face proper under applicable law.

7.2           THE
COMPANY. 
The Company shall be responsible for: 
(a) making Company Contributions; (b) certifying to the
Trustee the names and specimen signatures of the members of the Committee
appointed to serve as the Plan Administrator pursuant to Section 7.4,
if a Committee is appointed, and the Appeals Board, acting from time to time;
(c) keeping accurate books and records with respect to its Employees and
the appropriate components of each Employee’s Compensation and furnishing such
data to the Plan Administrator; (d) selecting agents and fiduciaries to
operate and administer the Plan and Trust; (e) appointing an investment
manager if it determines that one should be appointed; and (f) reviewing
periodically the performance of such agents, managers, and fiduciaries.

7.3           THE
TRUSTEE. 
The Trustee shall be responsible for: 
(a) in the absence of investment direction from the Plan
Administrator, the investment of the Trust Fund to the extent and in the manner
provided in the Trust Agreement; (b) the custody and preservation of Trust
assets delivered to it; (c) the purchase of shares of Stock in accordance
with the written directions of the Plan Administrator; and (d) the payment
of such amounts from the Trust Fund as the Plan Administrator shall direct.

7.4           PLAN
ADMINISTRATOR; APPEALS BOARD.  The Company shall serve as the Plan Administrator,
unless the Board of Directors of the Company or the Compensation Committee of
the Board of Directors of the Company appoints a separate Committee to serve as
the Plan Administrator, in which case the Committee shall have all of the
duties and obligations established by this Plan with respect to the Plan
Administrator.  The Board of Directors of
the Company or the Compensation Committee of the Board of Directors of the
Company shall appoint a separate Appeals Board, consisting of three or more
individuals who may be, but need not be, Participants, officers, directors, or
Employees of the Company.  The members of
the Appeals Board (and the Committee, if one is created) shall hold office at
the pleasure of the Board of Directors and shall serve without compensation.  The Plan Administrator shall be the “plan
administrator” as defined in Section 3(16)(A) of ERISA.  It shall be responsible for establishing and
implementing a funding policy consistent with the objectives of the Plan and
with the requirements of ERISA.  This
responsibility shall include establishing (and revising as
necessary) short-term and long-term goals and requirements pertaining to
the financial condition of the Plan, 

 26
 

 

communicating such goals and requirements to the persons responsible
for the various aspects of Plan operations and monitoring periodically the
implementation of such goals and requirements. 
The Appeals Board shall be responsible for reviewing and deciding all
claims appeals in accordance with the provisions of Section 13.2
and shall have full discretion and power to determine all claims appeals.

7.5           PLAN
ADMINISTRATOR TO CONSTRUE PLAN.  The Plan Administrator shall administer the
Plan and shall have all power and authority necessary for that purpose,
including, but not by way of limitation, the discretion and power to interpret
the Plan, to determine the eligibility, status, and rights of all individuals
under the Plan, and in general to decide any dispute and all questions arising
in connection with the Plan.  The Plan Administrator
shall also be responsible for (a) directing the Trustee concerning the
investment of assets in the Trust Fund, other than Stock; (b) directing the
Trustee with respect to the purchase of Stock; (c) directing the Trustee
with respect to voting shares of Stock to the extent that Participants do not
so direct such voting as provided for in the Plan and the Trust Agreement; and
(d) valuing the Stock in accordance with Article X.  The Plan Administrator shall direct the
Trustee concerning all distributions from the Trust Fund, in accordance with
the provisions of the Plan, and shall have such other powers in the
administration of the Trust Fund as may be conferred upon it by the Trust
Agreement.  The Plan Administrator shall
maintain all Plan records except records of the Trust Fund.  The Plan Administrator may appoint agents to
whom it may delegate such powers as it deems appropriate, except that any
dispute shall be determined by the Plan Administrator.

(a)           The
Plan Administrator may adjust the account(s) of any Participant, delay
distributions from the Plan, and take other appropriate actions in order to
correct errors, rectify omissions, and protect all assets of the Plan from
market fluctuations in such manner as the Plan Administrator believes will best
result in the equitable and nondiscriminatory administration of the Plan.

7.6           ORGANIZATION
OF APPEALS BOARD AND COMMITTEE.  The Appeals Board and the Committee shall
each elect a chairman and shall adopt such rules as it deems desirable for the
conduct of its affairs and for the administration of the Plan.  The Appeals Board may appoint agents to whom
it may delegate such powers as it deems appropriate, except that any dispute
shall be determined by the Appeals Board. 
The Appeals Board may make its determination with or without meetings,
and may authorize one or more of its members or agents to sign instructions,
notices and determinations on its behalf. 
The action of a majority of the Appeals Board shall constitute the
action of the Appeals Board.

7.7           AGENT
FOR PROCESS. 
The Plan Administrator shall be agent of the Plan for service of all
process.

7.8           INDEMNIFICATION
OF APPEALS BOARD AND COMMITTEE MEMBERS.  The Company shall indemnify each member of
the Appeals Board (and each member of the Committee, if one is appointed to act
as Plan Administrator) and Employees who perform services for the Plan
Administrator and the Appeals Board against any and all claims, loss, damages,
expense and liability arising from any action or failure to act, except when
the same is judicially determined to be due to the gross negligence or willful
misconduct of such member or Employee.

 27
 

 

*  * 
*  *  End of Article VII  * 
*  *  *

 28
 

 

ARTICLE VIII

TRUST AGREEMENT

8.1           TRUST
AGREEMENT. 
The Company has entered into a Trust Agreement to provide for the
holding, investment and administration of the funds of the Plan.  The Trust Agreement shall be part of the
Plan, and the rights and duties of any individual under the Plan shall be
subject to all terms and provisions of the Trust Agreement.

8.2           EXPENSES
OF TRUST. 
All taxes upon or in respect of the Trust shall be paid by the Trustee
out of the Trust assets.  All reasonable
expenses of administering the Trust shall be paid by the Trustee out of the
Trust assets to the extent they are not paid by the Company.  No fiduciary shall receive any compensation
for services rendered to the Plan if the fiduciary is being compensated on a
full time basis by the Company.

*  * 
*  *  End of Article VIII  * 
*  *  *

 29
 

 

ARTICLE IX

TERMINATION AND AMENDMENT

9.1           TERMINATION
OF PLAN OR DISCONTINUANCE OF CONTRIBUTIONS.  Frontier expects to continue the Plan
indefinitely, but the continuance of the Plan and the payment of contributions
are not assumed as contractual obligations. 
Frontier may terminate the Plan or discontinue contributions at any
time.  Upon the termination (or partial
termination) of the Plan or the complete discontinuance of contributions,
the interests of all affected Participants in the Trust Fund shall become fully
vested, notwithstanding any other provision hereof.

9.2           ALLOCATIONS
UPON TERMINATION OR DISCONTINUANCE OF COMPANY CONTRIBUTIONS.  Upon the termination or partial termination
of the Plan or upon the complete discontinuance of contributions, the Plan
Administrator shall promptly notify the Trustee of such termination or
discontinuance.  The Trustee shall then
determine, in the manner prescribed in Section 4.2, the net worth
of the Trust Fund.  The Trustee shall
advise the Plan Administrator of any increase or decrease in such net worth
that has occurred since the preceding Valuation Date.  The Plan Administrator shall thereupon
allocate, in the manner described in Section 4.3, among the
remaining Plan accounts, any such increase or decrease in the net worth of the
Trust Fund.  Immediately after the
allocation of such increase or decrease in net worth, the Plan Administrator
shall allocate among the remaining Plan accounts, in the manner described in Article III,
Article IV, and Article V, any Company Contributions or
forfeitures occurring since the preceding Valuation Date.

9.3           PROCEDURE
UPON TERMINATION OF PLAN OR DISCONTINUANCE OF CONTRIBUTIONS.  If the Plan has been terminated or partially
terminated, or if a complete discontinuance of contributions to the Plan has
occurred, then after the allocations required under Section 9.2
have been completed, the Trustee shall distribute or transfer the
account(s) of affected Participants as follows.

(a)           If
the affected Participant’s account(s) have an aggregate value of $1,000 or less
(calculated in accordance with applicable Treasury regulations), then the
Trustee shall distribute the Participant’s account(s) to the Participant in a
lump sum.

(b)           If
the affected Participant’s account(s) have an aggregate value of more than
$1,000 (calculated in accordance with applicable Treasury regulations), and if
the Company or an Affiliated Entity does not maintain another defined
contribution plan (other than an employee stock ownership plan within the
meaning of Code Section 4975(e)(7)), then the Trustee shall distribute the
Participant’s account(s) to the Participant in a lump sum.

(c)           If
the affected Participant’s account(s) have an aggregate value of more than
$1,000 (calculated in accordance with applicable Treasury regulations), and if
the Company or an Affiliated Entity maintains another defined contribution plan
(other than an employee stock ownership plan within the meaning of Code
Section 4975(e)(7)), then the Trustee shall transfer the Participant’s
account(s) to the other plan unless the Participant consents to an
immediate distribution of such account(s) in a lump sum.

 

 30

  
   
  Subject to the
provisions of Article X, any distribution or transfer made pursuant
to this Section 9.3 may be in cash, in kind, or partly in cash and
partly in kind.  After all such
distributions or transfers have been made, the Trustee shall be discharged from
all obligation under the Trust; no Participant or beneficiary who has received
any such distribution, or for whom any such transfer has been made, shall have
any further right or claim under the Plan or Trust.
  9.4           AMENDMENT
BY FRONTIER. 
Frontier may at any time amend the Plan in any respect, subject to Section 9.5,
but no amendment shall be made that would have the effect of vesting in the
Company any part of the Trust Fund or of diverting any part of the Trust Fund
to purposes other than for the exclusive benefit of Participants, Alternate
Payees, or their beneficiaries, and the rights of any Participant, Alternate
Payee, or beneficiary with respect to contributions previously made shall not
be adversely affected by any amendment; no amendment shall reduce or restrict,
either directly or indirectly, the accrued benefit (within the meaning of Code
Section 411(d)(6)) provided to any Participant before the
amendment.  The Plan shall be amended by
a writing approved by the Company’s Board of Directors and signed on behalf of
the Company by an officer of the Company duly authorized by the Board of
Directors.  The Plan may also be amended
in writing by an officer of the Company to whom the Company’s Board of
Directors delegates the authority to amend the Plan.  Notwithstanding the foregoing, if the Company
is subject to Section 16(b) of the Securities Exchange Act of 1934,
no amendment may be made unless in compliance with the Rules thereunder.
  9.5           AMENDMENT
TO VESTING SCHEDULE.  If the vesting schedule is amended, each
Participant with at least three Years of Service may elect, within the period
specified in the following sentence after the adoption of the amendment, to
have his nonforfeitable percentage computed under the Plan without regard to
such amendment.  The period during which
the election may be made shall commence with the date the amendment is adopted
and shall end on the latest of:
  (a)           60
days after the amendment is adopted;
  (b)           60
days after the amendment becomes effective; or
  (c)           60
days after the Participant is issued written notice of the amendment by the
Company or the Plan Administrator.
  Furthermore, the
amendment shall not decrease the non-forfeitable percentage, measured as of the
later of the date the amendment is adopted or effective, of any Participant’s
accounts.
  *  * 
*  *  End of Article IX  * 
*  *  *

 31
 

     
  ARTICLE X

SPECIAL PROVISIONS REGARDING COMPANY STOCK
  10.1         TIME OF
DISTRIBUTION. 
Notwithstanding any other provision under Section 6.5 of the
Plan, a Participant may elect to have the portion of his account attributable
to Stock distributed (i) not later than one year after the close of the
Plan Year in which such Participant separates from service by reason of the
attainment of Normal Retirement Age under the Plan, death, or Disability; or
(ii) not later than one year after the close of the fifth Plan Year
following the Plan Year in which the Participant separated from service, if the
Participant separated from service for any reason other than those enumerated
in subsection (i) above, and is not reemployed by the Company at the end
of the fifth Plan Year following the Plan Year of such separation from
service.  If the Participant separates
from service for a reason other than those described in subsection
(i) above, and is employed by the Company as of the last day of the fifth
Plan Year following the Plan Year of such separation from service, distribution
to the Participant, prior to any subsequent separation from service, shall be
in accordance with terms of the Plan other than this Section 10.1.
  10.2         PUT
OPTION REQUIREMENTS.
  (a)           Notwithstanding
any other provisions of the Plan, in the case of a distribution of Stock when
it is not readily tradable on an established securities market, the Participant
receiving such distribution shall have the right to exercise a put option that
complies with the requirements of Code Section 409(h).  Such put option shall provide that if the
Participant exercises the put option, the Company, or the Plan if the Plan so
elects, shall repurchase all or any portion of the distributed Stock.  The put option may be exercised during the
six-month period beginning on the day after the Participant receives the
Stock.  If the Participant does not
exercise the option to sell such Stock, the option shall lapse temporarily.
  (b)           After
the end of the Plan Year in which the option described in
subsection (a) occurred, and following the valuation of the Stock as
of such year end, the Plan Administrator shall notify each Participant who was
eligible to, but did not, exercise the option described in
subsection (a) of the updated valuation and the opportunity to once
again exercise the put option during the three-month period beginning on the
date the notice is received.  If the
Participant again fails to exercise such option, it shall lapse permanently.
  (c)           To
exercise his put option, the Participant must deliver to the Company a written
notice of his election to sell such Stock, together with the certificates
representing the shares to be sold duly endorsed for transfer with applicable
transfer tax stamps attached thereto. 
Upon such delivery, the Participant shall have sold, and the Company
shall have purchased, the number of shares specified in such notice.
  (d)           The
purchase price per share shall be the fair market value per share as of the
Valuation Date under Section 10.9 immediately preceding the date of
sale.
  (e)           Stock
purchased pursuant to a put option shall be paid for as follows:

 32
 

     
  (i)            If the distribution
of the Stock constituted a “Total Distribution” (as defined in subsection
(iii), payment for the Stock shall be made in five substantially equal annual
payments.  The first payment shall be
made not later than 30 days after the Participant exercises the put option.  The remaining payments shall bear a
reasonable rate of interest and shall be adequately secured.
  (ii)           If the distribution
of Stock does not constitute a Total Distribution, payment for the Stock shall
be made in one cash payment no later than 30 days after the Participant
exercises the put option.
  (iii)          A “Total
Distribution” is a distribution to a Participant or his beneficiary, or a
series of such distributions within one taxable year of the recipient, of the
Participant’s entire balance in this Plan.
  (f)            At
the option of the Trustee, pursuant to written directions from the Plan
Administrator, the Plan may assume the rights and obligations of the Company
under the above subsections as to all or any part of the shares of Stock
tendered to the Company.
  (g)           If
the Participant has contributed the Stock to an individual retirement account
or annuity (“IRA”), the IRA trustee shall have the option to sell described in
this Section 10.2.
  10.3         DIVERSIFICATION
AND EARLY DISTRIBUTION.  Each Participant who has both attained age 55
and completed at least ten years of participation in the Plan (a “Qualified
Participant”) may elect to receive a special, early distribution of
Stock.  This special election may be made
only within 90 days after the end of one of the first six Plan Years beginning
with the Plan Year the Participant became a Qualified Participant.  After the first Plan Year the Qualified
Participant may elect to receive a distribution of up to 25% of those shares in
his Company Contributions Account.  After
the second through fifth Plan Years, the Qualified Participant may elect to
receive an additional number of shares, provided that the total number of
shares distributed pursuant to these special elections does not exceed 25% of
the sum of the number of shares in his account plus the number of shares
previously distributed.  After the sixth
Plan Year, the Qualified Participant may elect to receive an additional number
of shares, provided that the total number of shares distributed pursuant to
these special elections does not exceed 50% of the sum of the number of such
shares in his account plus the number of shares previously distributed.  The Stock received in these distributions is
subject to the put options described in Section 10.2.  No distribution may be made under this
Section without the consent of the Participant and his Spouse (if the
Participant has a Spouse).  Distributions
pursuant to this Section shall be made as soon as practicable, and in no event
later than 180 days after the close of the Plan Year.
  10.4         REGISTRATION.  Notwithstanding any other provision hereof,
no Stock shall be distributed to any person unless such distribution is at that
time effectively registered or exempt from registration under the Securities
Act of 1933, as amended.  If the
distribution of Stock to a Participant, Alternate Payee, or beneficiary is
prohibited by the foregoing limitation, the Company shall take such steps as
are necessary to permit the distribution of such Participant’s interest in the
Trust Fund.

 33
 

     
  10.5         INVESTMENT
OF TRUST FUND. 
The Plan is designed to invest primarily in Stock.  Up to 100% of the assets of the Trust may be
invested in shares of Stock.  All cash
received by the Trustee shall, at the written direction of the Company, be used
to purchase Stock at the fair market value of the Stock, as determined under Section 10.9.  At the written direction of the Company, the
Trustee shall temporarily invest Trust assets, pending the purchase of Stock,
as provided in the Trust Agreement.  In
the absence of written direction from the Company, the Trustee may temporarily
invest Trust assets, pending the purchase of Stock, in savings accounts,
certificates of deposit and high-grade short-term securities, or such funds may
be held in cash or cash equivalents.
  10.6         DIVIDENDS.  The Company may from time to time declare and
pay dividends, either in cash or in shares of Stock, with respect to shares of
Stock in the Trust Fund.  Dividends paid
with respect to Stock shall be allocated under Section 4.3(c).
  10.7         VOTING
OF STOCK.
  (a)           If
the Stock is a “registration-type class of securities,” as defined in Code
Section 409(e), each Participant, Alternate Payee or beneficiary shall be
entitled to vote the shares of Stock, including fractional shares, allocated to
his account and shall be entitled to receive all proxy materials and other
information distributed to shareholders in the same manner as the other
shareholders.
  (b)           If
the Plan owns any Stock that is not a registration-type class of securities (as
defined in Code Section 409(e)(4)), a Participant, Alternate Payee or
beneficiary also shall be entitled to direct the Trustee, in accordance with
the provisions of the Trust Agreement, to exercise the voting rights of that
Stock in his Company Contributions Account, in the following types of
transactions involving the Company:  merger,
consolidation, recapitalization, reclassification, liquidation, dissolution,
sale of substantially all assets of a trade or business, or any similar
transaction as may be prescribed in Treasury Regulations.  In any case in which the voting rights with
respect to Stock are not required to be passed through to a Participant,
Alternate Payee or beneficiary in accordance with the foregoing, such Stock
shall be voted by the Trustee pursuant to the written directions of the Plan
Administrator, as provided in the Trust Agreement.
  10.8         STOCK
TO BE SUBJECT TO CERTAIN CONDITIONS.  In the case of a distribution of Stock when
it is not readily tradable on an established securities market, all shares of
Stock distributed to a Participant, Alternate Payee or beneficiary shall bear
such legends and statements as the Company may deem advisable to assure
compliance with applicable federal and state securities laws and
regulations.  If the Company requests, a
recipient of shares of Stock shall, prior to receipt of such shares, deliver to
the Company such written statements as the Company or its counsel may
reasonably require to indicate that (a) the recipient is acquiring such
shares for his own account, for investment and not with the view to disposing
of such shares, (b) the recipient of such shares understands that the
shares have not been registered under the Securities Act of 1933 (the “Act”) and
that neither the shares nor any interest therein may be transferred, sold,
assigned or conveyed except in accordance with the Act and applicable state
securities laws and must therefore be held indefinitely unless they are
subsequently registered under the Act or an exemption from such registration is
available.  Such written statements may
also require the 

 34
 

     
  recipient’s acknowledgment that he understands that if, after the Stock
has been held for a period of at least two years and if the provisions of Rule
144 of the General Rules and Regulations adopted under the Act are otherwise
available (there being no representations by the Company that the provisions of
Rule 144 will be applicable), then he may make routine sales of such shares in
limited amounts, in a specified manner, in accordance with other terms and
conditions of Rule 144.  In the case of
Stock to which Rule 144 is not applicable, any sales by a recipient would have
to be made in compliance with Regulation A or some other exception from
the registration requirements of the Act.
  10.9         VALUATION
OF STOCK. 
With respect to all activities carried on by the Plan, all valuations of
Stock, while the Stock is not readily tradable on an established securities
market, shall be made by an independent appraiser meeting requirements similar
to those contained in Treasury Regulations under Code Section 170(a)(1).  The fees of such appraisers shall be paid by
the Company or the Trust, or may be shared by each, as determined by the
Company; all such decisions shall be made in compliance with ERISA.  Shares of Stock held in the Trust Fund which
are not readily tradable on an established securities market shall be valued
annually by the Plan Administrator (using an independent appraiser), for all
purposes of the Plan, at their fair market value as of the last day of each
Plan Year, in accordance with the applicable provisions of ERISA.  Shares of Stock that are readily tradable on
an established securities market shall be valued as of the last day of each
Plan Year and at such other dates as may be required or provided by the Plan,
in accordance with the applicable provisions of ERISA.  If the Stock is traded on an established
securities market, distributions in the form of
Stock shall be valued at the fair market value of the Stock on the date the
Trustee directs the transfer agent for the Stock to transfers the shares of
Stock into the name of a Participant or a beneficiary.  In the case of purchases of Stock from “disqualified
persons” as defined in Code Section 4975(e)(2)), the value of the
purchased Stock must be determined as of the date of the transaction.
  *  * 
*  *  End of Article X  * 
*  *  *

 35
 

     
  ARTICLE XI

PLAN ADOPTION BY AFFILIATED ENTITIES
  11.1         ADOPTION
OF PLAN. 
Frontier may permit any Affiliated Entity to adopt the Plan and Trust
for its Employees.  Thereafter, such
Affiliated Entity shall deliver to the Trustee a certified copy of the
resolutions or other documents evidencing its adoption of the Plan and Trust,
but such Affiliated Entity shall not be required to execute a copy of the Trust
Agreement.
  11.2         AGENT
OF AFFILIATED ENTITY.  By becoming a party to the Plan, each Affiliated
Entity appoints Frontier as its agent with authority to act for the Affiliated
Entity in all transactions in which Frontier believes such agency will
facilitate the administration of the Plan. 
Frontier shall have the sole authority to amend and terminate the Plan.
  11.3         DISAFFILIATION
AND WITHDRAWAL FROM PLAN.
  (a)           Disaffiliation.  Any Affiliated Entity that has adopted the
Plan and thereafter ceases for any reason to be an Affiliated Entity shall
forthwith cease to be a party to the Plan.
  (b)           Withdrawal.  Any Affiliated Entity may, by appropriate
action and written notice thereof to Frontier, provide for the discontinuance
of its participation in the Plan.  Such
withdrawal from the Plan shall not be effective until the end of the Plan Year.
  11.4         EFFECT
OF DISAFFILIATION OR WITHDRAWAL.  If at the time of disaffiliation or
withdrawal, the disaffiliating or withdrawing entity, by appropriate action,
adopts a substantially identical plan that provides for direct transfers from
this Plan, then, as to employees of such entity, no plan termination shall have
occurred; the new plan shall be deemed a continuation of this Plan for such
employees.  In such case, the Trustee
shall transfer to the trustee of the new plan all of the assets held for the
benefit of employees of the disaffiliating or withdrawing entity, and no
forfeitures or acceleration of vesting shall occur solely by reason of such
action.  Such payment shall operate as a
complete discharge of the Trustee, and of all organizations except the disaffiliating
or withdrawing entity, of all obligations under this Plan to employees of the
disaffiliating or withdrawing entity and to their beneficiaries.  A new plan shall not be deemed substantially
identical to this Plan if it provides slower vesting than this Plan.  Nothing in this Section shall authorize the
divesting of any vested portion of a Participant’s account(s).
  11.5         DISTRIBUTION UPON DISAFFILIATION OR WITHDRAWAL.
  (a)           Disaffiliation.  If an entity disaffiliates from the Company
and the provisions of Section 11.4 are not followed, then the
following rules apply to the account(s) of employees of the disaffiliating
entity.
  (i)            If the
disaffiliating entity maintains a defined contribution plan (other than an
employee stock ownership plan within the meaning of Code
Section 4975(e)(7)), then, if the other plan will accept such a transfer,
the Trustee shall transfer the employee’s account(s) to the other plan unless
the employee consents to an immediate distribution in a lump sum (other than an
annuity) of the vested portion of his account(s); if the other plan 

 36
 

     
  will not accept such a transfer, the account(s) shall remain in
this Plan until the employee elects to receive a distribution pursuant to Article VI.
  (ii)           If the
disaffiliating entity does not maintain a defined contribution plan (other than
an employee stock ownership plan within the meaning of Code
Section 4975(e)(7)), then the Trustee shall distribute the vested portion
of the employee’s account(s) to the employee in a lump sum (other than an
annuity), upon the consent of the employee. 
If the employee does not consent to an immediate distribution, then
distribution may only be made according to Article Article VI.
  (b)           Withdrawal.  If an Affiliated Entity withdraws from the
Plan and the provisions of Section 11.4 are not followed, then the
following rules apply to the account(s) of Employees of the withdrawing
entity.
  (i)            If the withdrawing
entity maintains a defined contribution plan that accepts transfers from this
Plan, then the Employee may transfer his account(s) from this Plan to such
plan.  No forfeitures or acceleration of
vesting shall occur solely by reason of such transfer.
  (ii)           If the withdrawing
entity does not maintain a defined contribution plan that accepts transfers
from this Plan, then the Employee’s account(s) shall remain in this Plan.
  (c)           Distributions.  Any distribution or transfer made pursuant to
this Section shall be in shares of Stock, provided, however, that fractional
shares of Stock may be converted to and paid in cash.  After such distribution or transfer has been
made, no Participant or beneficiary who has received any such distribution, or
for whom any such transfer has been made, shall have any further right or claim
under the Plan or Trust.
  *  * 
*  *  End of Article XI  * 
*  *  *

 37
 

     
  ARTICLE XII

TOP-HEAVY PROVISIONS
  12.1         APPLICATION
OF TOP-HEAVY PROVISIONS.  The provisions of this Article shall be
applicable only if the Plan becomes “top-heavy” as defined below for any Plan
Year.  If the Plan becomes “top-heavy” as
of the Determination Date for a Plan Year, the provisions of this
Article shall apply to the Plan effective as of the first day of such Plan
Year and shall continue to apply to the Plan (whether or not the Plan ceases to
be “top-heavy”) until the Plan is terminated or otherwise amended.
  12.2         DETERMINATION
OF TOP-HEAVY STATUS.
  (a)           Top Heavy Percentage.  The Plan shall be considered “top-heavy” for
a Plan Year if, as of the Determination Date for that Plan Year, the aggregate
of the account balances (as calculated according to the regulations under Code
Section 416) of Key Employees under the Plan exceeds 60% of the
aggregate of the account balances (as calculated according to the regulations
under Code Section 416) of all current Employees and all former Employees
who terminated employment within five years of the Determination Date in this
Plan, or the Plan is part of a Required or Permissive Aggregation Group and the
Required or Permissive Aggregation Group is determined to be a Top-Heavy Plan
after application of the same test.  For
purposes of this Section 12.2, the following terms have the
following meanings:
  (i)            Permissive Aggregation Group shall
mean the Required Aggregation Group combined with any other plan maintained by
the Employer, provided that the resulting combination group would continue to
satisfy the requirements of Code Sections 401(a)(4) and 410 once such
other plan is taken into account.  The
Administrator shall determine which plan or plans maintained by the Employer
shall be taken into account in determining the Permissive Aggregation Group.
  (ii)           Required Aggregation Group shall mean
(i) each plan of the Employer in which a Key Employee is a participant in
the Plan Year that includes the Determination Date, and (ii) each other plan of
the Employer which, during this period, enables any plan described in
subsection (i) to meet the requirements of Code Section 401(a)(4) or 410.
  (b)           Determination Percentage.  The top-heavy determination percentage shall
be derived by the Administrator as of the Determination Date by dividing
(i) the sum of the account balances of Key Employees under this Plan (plus
the aggregate present value of cumulative account balances for Key Employees
under a defined contribution or defined benefit plan that is part of a Required
or Permissive Aggregation Group) by (ii) a similar sum determined for all
Covered Employees.  For purposes of
determining the account balance of any Employee (or the present value of the
cumulative account balance for any Employee in a defined contribution or
defined benefit plan), such account balance or present value shall be increased
by the aggregate distributions made with respect to the Employee under the Plan
and any plan aggregated with the Plan under Code Section 416(g)(2) during
the 1-year period ending on the Determination Date.  The preceding sentence shall also apply to
distributions under a terminated plan which, had it not been terminated, would
have been aggregated with the Plan under Code 

 38
 

     
  Section 416(g)(2)(A)(i).  In
the case of a distribution made for a reason other than separation from
service, death, or Disability, this provision shall be applied by substituting “5-year
period” for “1-year period.”
  (c)           Look-Back Period.  If any Employee is a Non-Key Employee for any
Plan Year, but was a Key Employee for any prior Plan Year, such Employee’s
account balance (and the present value of the cumulative account balance for
any such Employee in a defined contribution or defined benefit plan) shall not
be taken into account for purposes of determining whether this Plan is a
Top-Heavy Plan.  If an Employee has not
performed any services for the Employer at any time during the one-year period
ending on the Determination Date, such Employee’s account balance (and the
present value of the cumulative account balance for any such Employee in a
defined contribution or defined benefit plan) shall not be taken into account
for the purposes of determining whether the Plan is a top-heavy plan.
  12.3         SPECIAL
VESTING.  To the extent the vesting
provisions of Article V are not more generous, the amount credited to
the Participant’s Company Contributions account shall vest in accordance with
the following schedule during any top-heavy Plan Year:
    	  Years of Service
  	   
  	  Vested Percentage
  	   
  
	   1
  	   
  	  20
  	   
  
	  2
  	   
  	  40
  	   
  
	  3
  	   
  	  60
  	   
  
	  4
  	   
  	  80
  	   
  
	  5 or more
  	   
  	  100
  	   
  

  
   
  12.4         SPECIAL MINIMUM CONTRIBUTION.
  (a)           Amount of Minimum
Contribution. 
Notwithstanding the provisions of Section 3.1 and Article IV
to the contrary, and subject to subsection (b), in every top-heavy Plan
Year, a minimum allocation is required for each Non-Key Employee who both
(i) performed one or more Hours of Service during the Plan Year as a
Covered Employee after satisfying any eligibility requirement of Section 2.1,
and (ii) was an Employee on the last day of the Plan Year.  This minimum allocation is required
regardless of whether such Non-Key Employee received credit for 1,000 or more
Hours of Service or made any required contributions to the Plan for such Plan
Year.  The minimum allocation shall be a
percentage of such Non-Key Employee’s Compensation.  The percentage shall be the lesser of 3% or
the largest percentage of any Key Employee’s Compensation.  For all Key and Non-Key Employees, this
percentage takes into account all Company Contributions and forfeitures, except
for amounts used to restore the accounts of a rehired or missing Participant,
allocated for the Plan Year.  If this
minimum allocation is not satisfied for any Non-Key Employee, the Company shall
contribute the additional amount needed to satisfy this requirement to such
Non-Key Employee’s Company Contributions account.  Employer matching contributions shall be
taken into account for purposes of satisfying the minimum contribution
requirement of Code Section 416(c)(2) and the Plan.  The preceding sentence shall apply with
respect to matching contributions under the Plan or, if the Plan provides that
the minimum contributions requirement shall be met in another plan, such other
plan.  

 39
 

     
  Employer matching contributions that are used to satisfy the minimum
contribution requirements shall be treated as matching contributions for
purposes of the actual contribution percentage test and other requirements of
Code Section 401(m).
  (b)           Coordination With
401(k) Plan. 
The Company also maintains the Frontier Airlines, Inc.  Retirement Savings Plan, a defined
contribution profit sharing plan with a cash or deferred arrangement (the “401(k) Plan”).  A Participant who participates in both this
Plan and the 401(k) Plan shall receive the top heavy minimum contribution
in this Plan.
  12.5         CHANGE
IN TOP-HEAVY STATUS.  If the Plan ceases to be a “top-heavy” plan
as defined in this Article XII, and if any change in the benefit
structure, vesting schedule or other component of a Participant’s accrued
benefit shall occur as a result of such change in top-heavy status, the
nonforfeitable percentage of each Participant’s benefit attributable to Company
Contributions shall not be decreased as a result of such change.  In addition, each Participant with at least
three Years of Service with the Company and Affiliated Entities on the date of
such change, may elect to have his nonforfeitable percentage computed under the
Plan without regard to such change in status. 
The period during which the election may be made shall commence on the
date the Plan ceases to be a top-heavy plan and shall end on the later of
(a) 60 days after the change in status occurs, (b) 60 days after the
change in status becomes effective, or (c) 60 days after the Participant
is issued written notice of the change by the Company or the Plan
Administrator.
  *  * 
*  *  End of Article XII  * 
*  *  *
   

 40

 

ARTICLE XIII

MISCELLANEOUS

13.1         RIGHT
TO DISMISS EMPLOYEES - NO EMPLOYMENT CONTRACT.  The Company and Affiliated Entities may
terminate the employment of any Employee as freely and with the same effect as
if this Plan were not in existence. 
Participation in this Plan by an Employee shall not constitute an
express or implied contract of employment between the Company or an Affiliated
Entity and the Employee.

13.2         CLAIMS
PROCEDURE.

(a)           In General.  The following claims procedures shall apply
for all claims; provided, however, that subsection (b) sets forth the
claims procedures regarding claims for benefits on account of Disability.

(i)            Filing a
Claim.  All claims shall be filed in writing by the
Participant, his beneficiary, or the authorized representative of the claimant,
by completing the procedures that the Committee requires.  The procedures shall be reasonable and may
include the completion of forms and the submission of documents and additional
information.  All claims under this Plan
shall be filed in writing with the Committee according to the Committee’s
procedures no later than one year after the occurrence of the event that gives
rise to the claim.  If the claim is not
filed within the time described in the preceding sentence, the claim shall be barred.

(ii)           Review of
Initial Claim.

(A)          Initial
Period for Review of Claim.  The Committee shall review all materials and
shall decide whether to approve or deny the claim.  If a claim is denied in whole or in part,
written notice of denial shall be furnished by the Committee to the claimant
within a reasonable time after the claim is filed but not later than 90 days
after the Committee receives the claim. 
The notice shall set forth the specific reason(s) for the denial,
reference to the specific plan provisions on which the denial is based, a
description of any additional material or information necessary for the
claimant to perfect his claim and an explanation of why such material or
information is necessary, and a description of the Plan’s review procedures,
including the applicable time limits and a statement of the claimant’s right to
bring a civil action under ERISA Section 502(a) following a denial of
the appeal.

(B)           Extension.  If the Committee determines that special
circumstances require an extension of time for processing the claim, it shall
give written notice to the claimant and the extension shall not exceed 90
days.  The notice shall be given before
the expiration of the 90 day period described in Section 13.2(a)(ii)(A)
above and shall indicate the special circumstances requiring the extension
and the date by which the Committee expects to render its decision.

(iii)          Appeal of
Denial of Initial Claim.  The claimant may request a review upon
written application, may review pertinent documents, and may submit issues or
comments in writing.  The claimant must
request a review within the reasonable period of time prescribed by the
Committee.  In no event shall such a
period of time be less than 60 

 41
 

 

days.  The Committee shall
forward all appeals, including all material submitted by the claimant, to the
Appeals Board.

(iv)          Review of
Appeal.

(A)          Initial
Period for Review of Appeal.  The Appeals Board shall conduct all reviews
of denied claims and shall render its decision within a reasonable time, but not
less than 60 days of the receipt of the appeal by the Committee, which shall
forward the appeal to the Appeals Board promptly.  The claimant shall be notified of the Appeals
Board’s decision in a notice, which shall set forth the specific
reason(s) for the denial, reference to the specific plan provisions on
which the denial is based, a statement that the claimant is entitled to
receive, upon request and free of charge, reasonable access to and copies of
all documents, records, and other information relevant to the claimant’s claim,
and a statement of the claimant’s right to bring a civil action under ERISA
Section 502(a) following a denial of the appeal.

(B)           Extension.  If the Appeals Board determines that special
circumstances require an extension of time for reviewing the appeal, it shall
give written notice to the claimant and the extension shall not exceed 60
days.  The notice shall be given before
the expiration of the 60 day period described in Section 13.2(a)(iv)(A) above
and shall indicate the special circumstances requiring the extension and the
date by which the Appeals Board expects to render its decision.

(C)           Discretionary
Authority of Committee and Appeals Board.  The Committee and the Appeals Board shall
have full discretionary authority to determine eligibility, status, and the
rights of all individuals under the Plan, to construe any and all terms of the
Plan, and to find and construe all facts.

(b)           Determination of
Disability.  The following claims procedures shall
apply for all claims for benefits on account of Disability.

(i)            Notice of
Denial.  If any
person claiming benefits under the Plan on account of Disability is denied such
benefits by the Committee, no later than 45 days after receipt of his or her
claim by the Committee (or within 75 days if special circumstances require an
extension and if written (including electronic) notice of such extension and
circumstances is given to such person within the initial 45-day period), he or
she shall be furnished with written notification in a manner calculated to be
understood by the claimant and shall include the following:

(A)          specific
reasons for the denial;

(B)           specific
references to pertinent Plan provisions on which the adverse determination is
based;

(C)           description
of the Plan’s review procedures and time limits applicable to such procedures,
including a statement of the claimant’s right to bring a civil action under
ERISA Section 502(a) following an adverse benefit determination on review;

 42
 

 

(D)          if
an internal rule, guideline, protocol or other similar criterion (a “Guideline”)
was relied upon in making the adverse determination, either (A) a copy of
the Guideline, or (B) a statement that such Guideline was relied upon in
making the adverse determination and a statement that a copy of such Guideline
will be provided free of charge to the claimant upon request; and

(E)           if
the adverse benefit determination is based on a medical necessity or
experimental treatment or similar exclusion or limit, either an explanation of
the scientific or clinical judgment for the determination, applying the terms
of the Plan to the claimant’s medical circumstances, or a statement that such
explanation will be provided free of charge upon request.

In the case of any extension,
the notice of extension shall specifically explain the standards on which
entitlement to a benefit is based, the unresolved issues that prevent a
decision on the claim, and the additional information needed to resolve those
issues, and the claimant shall be afforded at least 45 days within which to
provide the specified information.

In the event that a period of
time is extended due to a claimant’s failure to submit necessary information,
the period for making the benefit determination shall be tolled from the date
on which the notification of the extension is sent to the claimant until the
date on which the claimant responds to the request for additional information.

(ii)           Appeal
Process.  A
claimant shall have 180 days following receipt of a notification of an
adverse benefit determination within which to appeal the determination.  A claimant shall be entitled to submit on
appeal written comments, documents, records and other information relating to
the claim.  During the time the claimant
has for filing an appeal, the claimant shall be provided, upon request and free
of charge, reasonable access to and copies of all documents, records and other
information relevant to the claim.  The
Appeals Board shall take into account all comments, documents, records and
other information submitted by the claimant relating to the claim, without
regard to whether such information was submitted or considered in the initial
benefit determination.  None of the
members on the Appeals Board shall be the same person who initially reviewed
the claim and the Appeals Board shall not give deference to the initial adverse
benefit determination.  If the initial
benefit determination was, in whole or in part, based on medical judgment
(including determinations with regard to whether a particular treatment, drug
or other item is experimental, investigational, or not medically necessary or
appropriate), in deciding the appeal the Appeals Board shall consult with a
health care professional who has appropriate training and experience in the
field of medicine involved in the medical judgment.  Such professional shall be an individual who
is neither an individual who was consulted in connection with the adverse
benefit determination that is the subject of the appeal, nor the subordinate of
any such individual.  If the Plan obtained
advice from any medical or vocational experts in making the initial benefit
determination, the Appeals Board shall identify such experts to the claimant,
regardless of whether the advice was relied upon in making the initial benefit
determination.

The Appeals Board shall notify
the claimant of the its benefit determination on review within a reasonable
period of time, not to exceed 45 days after receipt by the Appeals Board of the
claimant’s request for review, unless the Appeals Board determines that 

 43
 

 

special circumstances require an
extension of time for processing the claim. 
If the Appeals Board determines that an extension of time for processing
is required, written notice of the extension shall be furnished to the claimant
prior to the termination of the initial 45-day period.  In no event shall such extension exceed a
period of 45 days from the end of the initial period.  The extension notice shall indicate the special
circumstances requiring an extension of time and the date by which the Plan expects
to render the determination on review.

The period of time within which
a benefit determination on review is required to be made shall begin at the
time an appeal is filed in accordance with the reasonable procedures of the
Plan, without regard to whether all the information necessary to make a benefit
determination on review accompanies the filing. 
In the event that a period of time is extended due to a claimant’s
failure to submit information necessary to decide a claim, the period for
making the benefit determination on review shall be tolled from the date on
which the notification of the extension is sent to the claimant until the date
on which the claimant responds to the request for additional information.

(iii)          Notification
of Benefit Determination on Review.  The Appeals Board shall provide the claimant
with written notification of the its benefit determination on review.  If on review the initial denial of benefits
is affirmed, the notification shall set forth, in a manner calculated to be
understood by the claimant, the following:

(A)          specific
reason for the adverse determination;

(B)           specific
references to pertinent Plan provisions on which the adverse determination is
based;

(C)           statement
that the claimant is entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other
information relevant to the claimant’s claim for benefits;

(D)          statement
describing the Plan’s voluntary appeal procedures, if any, and describing the
claimant’s right to obtain the information about such procedures, and a
statement of the claimant’s right to bring an action under ERISA
Section 502(a);

(E)           if
a Guideline was relied upon in making the adverse determination, either
(A) a copy of the Guideline, or (B) a statement that such Guideline
was relied upon in making the adverse determination and a statement that a copy
of such Guideline will be provided free of charge to the claimant upon request;

(F)           if
the adverse benefit determination is based on a medical necessity or
experimental treatment or similar exclusion or limit, either an explanation of
the scientific or clinical judgment for the determination, applying the terms
of the Plan to the claimant’s medical circumstances, or a statement that such
explanation will be provided free of charge upon request; and

(G)           the
following statement:  “You and your Plan
may have other voluntary alternative dispute resolution options, such as
mediation.  One way to find out 

 44
 

 

what may be available is to contact your local U.S. Department of Labor
Office and your State insurance regulatory agency.”

(c)           Form of Notice to Claimant.  Notwithstanding anything herein to the
contrary, any notification from the Committee and/or the Appeals Board to the
claimant under this Section 13.2 may be made electronically,
provided that such notification complies with Department of Labor Regulation
Sections 2520.104b-1(c)(1)(i), (iii), and (iv).

13.3         SOURCE
OF BENEFITS. 
All benefits payable under the Plan shall be paid solely from the Trust
Fund, and the Company and Affiliated Entities assume no liability or
responsibility therefor.

13.4         EXCLUSIVE
BENEFIT OF EMPLOYEES.  It is the intention of the Company that no
part of the Trust, other than as provided in Sections 3.2, 8.2,
and 13.8 hereof and Section 4.2 of the Trust Agreement, ever
to be used for or diverted to purposes other than for the exclusive benefit of
Participants, Alternate Payees, and their beneficiaries, and that this Plan
shall be construed to follow the spirit and intent of the Code and ERISA.

13.5         FORMS
OF NOTICES. 
Wherever provision is made in the Plan for the filing of any notice,
election, or designation by a Participant, Spouse, Alternate Payee, or
beneficiary, the action of such individual shall be evidenced by the execution
of such form as the Plan Administrator may prescribe for the purpose.

13.6         NOTICE
OF ADOPTION OF THE PLAN.  The Company shall provide each of its
Employees with notice of the adoption of this Plan, notice of any amendments to
the Plan, and notice of the salient provisions of the Plan prior to the end of
the first Plan Year.  A complete copy of
the Plan shall also be made available for inspection by Employees or any other
individual with an account balance under the Plan.

13.7         PLAN
MERGER.  If
this Plan is merged or consolidated with, or its assets or liabilities are
transferred to, any other qualified plan of deferred compensation, each
Participant shall be entitled to receive a benefit immediately after the
merger, consolidation, or transfer that is equal to or greater than the benefit
he would have been entitled to receive immediately before the merger,
consolidation, or transfer if this Plan had then been terminated.

13.8         INALIENABILITY OF BENEFITS - DOMESTIC RELATIONS ORDERS.

(a)           No Assignment of Benefits.  Except as provided in subsections
(b) and (g) below, no Participant or beneficiary shall have any right
to assign, alienate, transfer, hypothecate, encumber or anticipate his interest
in any benefits under this Plan, nor shall such benefits be subject to any
legal process to levy upon or attach the same for payment of any claim against
any such Participant or beneficiary.

(b)           Exception:  QDROs.  Subsection (a) shall apply to the
creation, assignment, or recognition of a right to any benefit payable with
respect to a Participant pursuant to a Domestic Relations Order unless such
Domestic Relations Order is a QDRO in which case 

 45
 

 

the Plan shall make payment of benefits in accordance with the
applicable requirements of any such QDRO.

(c)           Requirements for QDROs.  In order to be a QDRO, the Domestic Relations
Order:  (i) must clearly specify the
name and the last known mailing address of the Participant; (ii) must
specify the name and mailing address of each Alternate Payee covered by the
order; (iii) must specify either the amount or percentage of the
Participant’s benefits to be paid by the Plan to each such Alternate Payee, or
the manner in which such amount or percentage is to be determined;
(iv) must specify the number of payments or period to which such order
applies; (v) must specify each plan to which such order applies;
(vi) may not require the Plan to provide any type or form of benefit, or
any option, not otherwise provided under the Plan, subject to the provisions of
subsections (f)(ii) and (f)(iii); (vii) may not require the Plan to
provide increased benefits (determined on the basis of actuarial value);
(viii) may not require the payment of benefits to an Alternate Payee if
such benefits have already been designated to be paid to another Alternate
Payee under another order previously determined to be a QDRO.

(d)           Payments Prior to
Participant’s Separation From Service.  In the case of any payment before an Employee
has separated from service, a Domestic Relations Order shall not be treated as
failing to meet the requirements of subsection (c) solely because such
order requires that payment of benefits be made to an Alternate Payee
(i) on or after the date on which the Employee attains (or would have
attained) his earliest retirement age, (ii) as if the Employee had
retired on the date on which such payment is to begin under such order (but
taking into account only the account balance on such date), and (iii) in
any form in which such benefits may be paid under the Plan to the Employee.  The earliest retirement age is the earlier of
(i) the date on which the Employee is entitled to a distribution under the
Plan, or (ii) the later of (A) the date the Employee attains age 50,
or (B) the earliest date on which the Employee could begin receiving
benefits under the Plan if the Employee separated from service.  For purposes of this Subsection, the account
balance as of the date specified in the QDRO shall be the vested portion of the
Employee’s account(s) on such date.

(e)           Procedures.

(i)            General.  The Plan Administrator shall establish
reasonable procedures to determine the qualified status of Domestic Relations
Orders and to administer distributions under QDROs.  Such procedures shall be in writing and shall
permit an Alternate Payee to designate a representative to receive copies of
notices.

(ii)           Notice to
Participant and Prospective Alternate Payee(s); Review.  When the Plan Administrator receives a
Domestic Relations Order, it shall promptly notify the Participant and each
Alternate Payee of such receipt and provide them with copies of the Plan’s
procedures for determining the qualified status of the order.  Within a reasonable period after receipt of a
Domestic Relations Order, the Plan Administrator shall determine whether such
order is a QDRO and notify the Participant and each Alternate Payee of such
determination.

 46
 

 

(iii)          Separate
Accounting. 
During any period in which the issue of whether a Domestic Relations
Order is a QDRO is being determined (by the Plan Administrator, by a court of
competent jurisdiction, or otherwise), the Plan Administrator shall separately
account for the amounts payable to the Alternate Payee if the order is
determined to be a QDRO.  If the order
(or modification thereof) is determined to be a QDRO within 18 months after the
date the first payment would have been required by such order, the Plan
Administrator shall pay the amounts separately accounted for (plus any interest
thereon) to the individual(s) entitled thereto.  However, if the Plan Administrator determines
that the order is not a QDRO, or if the issue as to whether such order is a
QDRO has not been resolved within 18 months after the date the first payment
would have been required by such order, then the Plan Administrator shall pay
the amounts separately accounted for (plus any interest thereon) to the
individual(s) who would have been entitled to such amounts if there had
been no order.  Any determination that an
order is a QDRO that is made after the close of the 18-month period shall be
applied prospectively only.  If the Plan’s
fiduciaries act in accordance with fiduciary provisions of ERISA in treating a
Domestic Relations Order as being (or not being) a QDRO or in taking
action in accordance with this Subsection, then the Plan’s obligation to the
Participant and each Alternate Payee shall be discharged to the extent of any
payment made pursuant to the acts of such fiduciaries.

(iv)          Participant
Distributions. 
Upon receiving a Domestic Relations Order (either in draft form or
entered by a court) or upon receiving information that causes the Plan
Administrator to reasonably believe that a Domestic Relations Order will be
submitted, the Plan Administrator shall place a hold on the affected
Participant’s accounts that prohibits the Participant from receiving a
distribution upon termination of employment. 
However, the Participant may receive a distribution upon termination of
employment if all prospective Alternate Payees consent in writing to the
distribution or if the court that is hearing the domestic relations proceeding
approves the distribution.  If the Plan
Administrator places the hold on the account as a result of receiving
information that causes the Plan Administrator to believe that a Domestic
Relations Order will be submitted and if the Plan Administrator does not
receive a Domestic Relations Order (either in draft form or entered by a
court) within 180 days after the Plan Administrator placed the hold on the
Participant’s accounts, the hold will be removed from the Participant’s
accounts.  If the Plan Administrator
places the hold on the Participant’s accounts as a result of receiving a
Domestic Relations Order (either in draft form or entered by a court), the hold
shall remain on the Participant’s accounts until the first to occur of
(A) the 120th day after the date the Plan Administrator responds to the
parties with its comments on the Domestic Relations Order, or (B) the date
the Plan Administrator determines that the Domestic Relations Order is a
Qualified Domestic Relations Order and the Participant’s accounts are divided
between the Participant and the Alternate Payee in the records of the
Plan.  However, if the Participant’s
accounts are affected by the separate accounting requirement of Section 13.8(e)(iii)
above, the hold shall continue to the extent necessary for the Plan and the
Plan Administrator to comply with the separate accounting requirement.  Nothing in this
subsection (iv) shall prevent the Participant from exercising
investment control over the assets in his accounts during the pendency of a hold
on the accounts.

 47
 

 

(f)            The Alternate Payee shall have the following rights under
the Plan:

(i)            The Alternate Payee
may designate beneficiaries in the same manner as a Participant, pursuant to Section 6.1.  However, any such beneficiary designation
shall be effective without the consent of the spouse of the Alternate
Payee.  In the absence of an effective
beneficiary designation, the distributable amount of the Alternate Payee’s
account(s) shall be paid to his surviving spouse; or if none, in equal
shares to his surviving children and issue of deceased children by right of
representation; or if none, in equal shares to each surviving parent; or if
none, to his estate.

(ii)           Notwithstanding any
other provisions of this Section 13.8, an Alternate Payee shall receive
a distribution of his or her Plan assets as soon as administratively
practicable after any necessary valuation of his or her account balance and
after the Plan Administrator determines that the Domestic Relations Order is a
Qualified Domestic Relations Order.  An
Alternate Payee may only receive a distribution in the form of a lump sum of
his or her entire interest in the Plan.

(iii)          Distribution to an
Alternate Payee shall begin on or before the Participant’s Required Beginning
Date.  An Alternate Payee may only
receive a distribution in the form of a lump sum (other than an annuity).

(iv)          Upon the death of an
Alternate Payee, the Alternate Payee’s entire interest in the Plan shall be
distributed in a lump sum by the end of the calendar year containing the fifth
anniversary of the Alternate Payee’s death.

(v)           The Alternate Payee
(or his beneficiary) may bring claims against the Plan in the same manner
as a Participant pursuant to Section 13.2.

(g)           Certain Judgments and
Settlements. 
Subsection (a) shall not apply to any offset of the
Participant’ s account balance(s) in an amount equal to an amount that the
Participant is ordered or required to pay to the Plan if:

(i)            the order or
requirement to pay arises

(A)          under
a judgment of conviction of a crime involving the Plan, or

(B)           under
a civil judgment, including a consent decree, entered by a court in an action
brought in connection with a violation (or an alleged violation) of the
fiduciary responsibility requirements of Title I of ERISA, or

(C)           pursuant
to a settlement agreement between the Secretary of Labor and the Participant in
connection with a violation (or an alleged violation) of the fiduciary
responsibility requirements of Title I of ERISA, and

(ii)           the judgment,
order, decree, or settlement agreement expressly provides for the offset of all
or a part of the amount ordered or required to be paid to the Plan against the
Participant’s account balance(s) under the Plan.

 48
 

 

13.9         PAYMENTS
DUE MINORS OR INCAPACITATED INDIVIDUALS.  If any individual entitled to a payment under
the Plan is a minor, or if the Plan Administrator determines that any such
individual is incapacitated by reason of physical or mental disability, whether
or not legally adjudicated as such, the Plan Administrator shall have the power
to cause the payments becoming due to such individual to be made to his
personal representative or to another for his benefit, without responsibility
of the Plan Administrator or the Trustee to see to the application of such
payments.  Payments made pursuant to such
power shall operate as a complete discharge of the Trust Fund, the Trustee and
the Plan Administrator.

13.10       UNIFORMITY
OF APPLICATION. 
The provisions of this Plan shall be applied in a uniform and
non-discriminatory manner in accordance with rules adopted by the Plan
Administrator which rules shall be systematically followed and consistently
applied so that all individuals similarly situated shall be treated alike.

13.11       DISPOSITION
OF UNCLAIMED PAYMENTS.  Each Participant, Alternate Payee, or
beneficiary with an account balance in this Plan must file with the Plan
Administrator from time to time in writing his address, the address of each of
his beneficiaries (if applicable), and each change of address.  Any communication, statement or notice
addressed to such individual at his last address filed with the Plan
Administrator (or if no address is filed with the Plan Administrator then at
his last address as shown on the Company’s records) will be binding on
such individual for all purposes of the Plan. 
Neither the Plan Administrator nor the Trustee shall be required to
search for or locate any missing individual. 
If the Plan Administrator notifies an individual that he is entitled to
a distribution and also notifies him of the provisions of this Section, and the
individual fails to claim his benefits under the Plan or make his address known
to the Plan Administrator within five calendar years after the notification,
the benefits under the Plan of such individual shall be forfeited as of the end
of the Plan Year coincident with or following the five-year waiting
period.  Any amount forfeited pursuant to
this Section shall be allocated pursuant to Section 5.5.  If the individual should later make a claim
for his forfeited benefit, the Company shall make a special contribution to the
Plan equal to the forfeiture, and such amount shall be distributed to the
individual.

13.12       PRONOUNS:  GENDER AND NUMBER.  Unless the context clearly indicates
otherwise, words in either gender shall include the other gender and the
singular shall include the plural and vice versa.

13.13       APPLICABLE
LAW.  This
Plan shall be construed and regulated by ERISA, the Code, and, to the extent
applicable, the laws of the State of Colorado.

*  * 
*  *  End of Article XIII  *  *  *  *

 49
 

 

IN WITNESS WHEREOF,
Frontier Airlines Holdings, Inc. the Plan sponsor, has caused this amended and
restated Plan to be executed effective as of August 1, 2006.

Executed this 7th day of
September, 2006.

	
  

  	
  FRONTIER AIRLINES HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Sislowski

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Vice President, General Counsel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  September 7, 2006

  

 

 50

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