Document:

Exhibit 10.68

    Exhibit
      10.68

     

    

       

      RENEWAL
        AND AMENDMENT AGREEMENT

       

       

      THIS
        AGREEMENT dated the 9th day of August, 2006 (the “Agreement Date”)

       

      BETWEEN:

       

      ROBERT
        RUDMAN,
        a
        business person with an address at 500 Australian Avenue, Suite 700 West
        Palm
        Beach, FL  33401

       

      (the
        “Consultant”)

       

      OF
        THE
        FIRST PART

       

      AND:

       

      SMARTIRE
        SYSTEMS INC.,
        a
        company duly incorporated pursuant to the laws of the Province of British
        Columbia, having an office at 150 - 13151 Vanier Place, Richmond, British
        Columbia, V6V 2J1

       

      (“SmarTire“
        or the “Company”)

       

      OF
        THE
        SECOND PART

       

      

       

      A.  The
        Manager and SmarTire entered into a consulting agreement (the “Consulting
        Agreement”) dated June 30, 2005 whereby SmarTire engaged the consultant for the
        period of one year;

       

      B.  SmarTire
        and the Consultant wish to renew the terms of the Consulting Agreement on
        the
        terms and conditions set forth herein.

       

      THEREFORE,
        in consideration of the mutual covenants and premises contained herein, and
        payment of $10, the receipt and sufficiency of which is hereby acknowledged,
        the
        parties covenant and agree as follows:

       

      	1.  	
              AMENDMENT

            

       

      1.1  The
        following is added to section 3.0 of the Agreement, entitled “Compensation”, and
        shall be construed and interpreted in accordance with this Extension and
        Amendment Agreement;

       

      1.2  The
        Company agrees to pay to the Consultant and the Consultant agrees to accept
        consulting fees as follows: commencing on the Effective Date and ending on
        the
        date of termination of this Agreement, the Company shall pay to the Consultant
        monthly as a fee for the Consulting Services an amount equal to US$10,000
        (the
“Consulting
        Fee”).
        The
        Company shall pay the Consulting Fee to the Consultant not later than 30
        days
        following the month in which the relevant Consulting Services were rendered.
        The
        Consultant is not entitled to any employee benefits. Any stock options in
        the
        capital of the Company held by the Consultant will remain exercisable for
        the
        period that this Agreement is in effect and including 90 days after its
        termination if the Consultant resigns as a Director.

       

      

      	2.  	
              TERM
                AND EFFECT OF TERMINATION OF
                AGREEMENT

            

       

       

      2.1  This
        Renewal is deemed effective as of June 30, 2006 and will continue in force
        and
        effect for 12 months unless renewed by mutual agreement of both
        parties.

       

      	3.  	
              GENERAL

            

       

      3.1  In
        all
        other respects, the Agreement shall remain in full force and effect.

       

      3.2  This
        Agreement will enure to the benefit of and be binding upon the parties and
        their
        respective successors and permitted assigns.

       

      3.3  This
        Agreement will be governed by and construed in accordance with the laws of
        British Columbia. 

       

      3.4  This
        Agreement may be executed in several counterparts, each of which will be
        deemed
        to be an original and all of which will together constitute one and the same
        instrument.

       

      3.5  Except
        as
        expressly amended by this Agreement, the Consulting Agreement is hereby ratified
        and confirmed.

       

      IN
        WITNESS WHEREOF the parties have executed this Agreement as of the date first
        above written.

      

      
        	
                SIGNED,
                  SEALED and DELIVERED by ROBERT
                  RUDMAN
                  in
                  the presence of:

                 

                /s/
                  David Cohen

                Signature

                 

                David
                  Cohen

                Print
                  Name

                 

                423
                  Juno Dunes Way

                June
                  Beach Fl 3340

                Address

                 

                President
                  - Petro Plus USA

                Occupation

              	
                )

                )

                )

                )

                )

                )

                )

                )

                )

                )

                )

                )

                )

              	
                 

                 

                 

                 

                 

                /s/Robert
                  Rudman

                ROBERT
                  RUDMAN

              

      

       

      

       

      SMARTIRE
        SYSTEMS INC.

       

      Per: /s/
        Jeff Finkelstein

       

      Authorized
        Signatory

       

      Title: Chief
        Financial OfficerFiled by Automated Filing Services Inc. (604) 609-0244 - Salamon Group, Inc. - Exhibit 10.3

 

WRITTEN CONSENT

January 15, 2005

I, Raymond Bruce Larway, hereby consent to act as a Director of Salamon Group,
  Inc. effective this date.

/s/ Raymond Bruce Larway

  Raymond Bruce LarwayExhibit 10.13a

    
      

    

    Exhibit
      10.13a

    
 

    AMENDMENT
      NO. 2 TO DIRECTOR COMPENSATION AGREEMENT

    

    

    This
      Amendment No. 2 to Director Compensation Agreement (this “Amendment”) is entered
      into as of September 7, 2006.

    

    A.
      Frontier Airlines, Inc. (“Frontier”) and Samuel D. Addoms (“Addoms”) entered
      into that Director Compensation Agreement effective as of April 1, 2002, as
      further amended by that Amendment No. 1 dated as of April 1, 2003 (collectively,
      the “Agreement”).

    

    B.
      Frontier now desires to amend the Agreement by extending the term thereof in
      recognition of Addoms’ agreement to remain on the Board of Directors of Frontier
      and Frontier Airlines Holdings, Inc. (“Holdings”) for a period beginning on the
      fifth anniversary of the date of his resignation through the adjournment of
      the
      meeting of the Boards of Directors of Frontier and Holdings held immediately
      following the annual stockholder meeting of Holdings scheduled for the month
      of
      September 2007 (the “Extension Period”).

    

    NOW,
      THEREFORE,
      the
      parties represent, warrant, promise and agree as follows:

    

    1.
      In
      consideration of Addoms’ continued service on the Board of Directors, Frontier
      will pay to Addoms $6,250 per month for each month during the Extension Period
      during which Addoms serves on the Board of Directors, including any partial
      months.

    

    2.
      Addoms
      will remain an employee of Frontier during the Extension Period at an annual
      salary of $25,000, payable on the Company’s regular paydays.

    

    3.
      Except
      as modified herein, the Agreement will remain in full force and
      effect.

    

    IN
      WITNESS WHEREOF,
      the
      parties duly execute and deliver this Amendment as of the date first written
      above.

    

    FRONTIER
      AIRLINES HOLDINGS, INC.

    

    

      
        	
                 By                            
                  /s/                           
                    

              	 	
                 

              	
                                           
                  /s/                         
                  

              
	
                      
                  Paul S. Dempsey, Board Vice-Chair

              	 	
                 

              	
                Samuel
                  D. Addoms

              
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                FRONTIER
                  AIRLINES, INC.

              	 	 	 
	 	 	 	 
	 	 	 	 
	
                By                            
                  /s/            
                                  
                  

              	 	 	 
	
                    
                  Jeff S. Potter, PresidentExhibit 10.30

    
      

    

    EXHIBIT
      10.30

     

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

    

    

    

    

    

    PURCHASE
      AGREEMENT

    

    

    

    

    BETWEEN

    

    

    BOMBARDIER
      INC.

    

    

    

    AND

    

    

    

    FRONTIER
      AIRLINES HOLDINGS, INC.

    

    

    

    
      
        

      

    

    Relating
      to the Purchase of

    Ten
      (10) Bombardier Q400 Series aircraft

    

    

    

    
      
        

      

    

    
      
        
          PA
            -581

          Frontier
            Airlines Holdings, Inc

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

    

    ARTICLE

    

    
      	
              ARTICLE
                1.

            	
              INTERPRETATION

            	
              4

            
	
              ARTICLE
                2.

            	
              SUBJECT
                MATTER OF SALE

            	
              7

            
	
              ARTICLE
                3.

            	
              CUSTOMER
                SUPPORT SERVICES AND WARRANTY

            	
              7

            
	
              ARTICLE
                4.

            	
              PRICE/TAXES

            	
              7

            
	
              ARTICLE
                5.

            	
              PAYMENT

            	
              8

            
	
              ARTICLE
                6.

            	
              BUYER
                INFORMATION

            	
              10

            
	
              ARTICLE
                7.

            	
              CERTIFICATION

            	
              11

            
	
              ARTICLE
                8.

            	
              DELIVERY
                AND ACCEPTANCE PROCEDURE

            	
              12

            
	
              ARTICLE
                9.

            	
              TITLE
                AND RISK

            	
              15

            
	
              ARTICLE
                10.

            	
              CHANGES

            	
              16

            
	
              ARTICLE
                11.

            	
              FRONTIER’S
                REPRESENTATIVES AT BOMBARDIER SITE

            	
              18

            
	
              ARTICLE
                12.

            	
              EXCUSABLE
                DELAY

            	
              18

            
	
              ARTICLE
                13.

            	
              NON-EXCUSABLE
                DELAY/FAILURE TO TAKE DELIVERY

            	
              21

            
	
              ARTICLE
                14.

            	
              TERMINATION

            	
              22

            
	
              ARTICLE
                15.

            	
              NOTICES

            	
              24

            
	
              ARTICLE
                16.

            	
              INDEMNITY
                AGAINST INTELLECTUAL PROPERTY INFRINGEMENT

            	
              25

            
	
              ARTICLE
                17.

            	
              LIMITATION
                OF LIABILITY; DISCLAIMER AND RELEASE;
                INDEMNIFICATION

            	
              27

            
	
              ARTICLE
                18.

            	
              ASSIGNMENT

            	
              29

            
	
              ARTICLE
                19.

            	
              SUCCESSORS

            	
              30

            
	
              ARTICLE
                20.

            	
              APPLICABLE
                LAWS

            	
              31

            
	
              ARTICLE
                21.

            	
              CONFIDENTIAL
                NATURE OF AGREEMENT

            	
              32

            
	
              ARTICLE
                22.

            	
              AGREEMENT

            	
              33

            
	 	 	 
	
              APPENDIX
                I - ECONOMIC ADJUSTMENT FORMULA 

            	
              36

            
	
              APPENDIX
                II - DELIVERY SCHEDULE

            	
              38

            
	
              APPENDIX
                III - TYPE SPECIFICATION

            	
              39

            
	
              APPENDIX
                IV - BUYER SELECTED OPTION FEATURES

            	
              40

            
	
              APPENDIX
                V - FRONTIER INFORMATION / DUE DATES

            	
              42

            
	 	 	
               

            
	
              FORM
                “A” TO APPENDIX V - FRONTIER’S CUSTOMIZED PAINT SCHEME 

            	
              43

            
	
              FORM
                “B” TO APPENDIX V - FRONTIER’S INTERIOR DECOR AND
                EMERGENCY

            	 
	
              EQUIPMENT
                LIST 

            	
              44

            
	
              FORM
                “C” TO APPENDIX V - FRONTIER’S PLACARDS, LABELS & MARKINGS
                

            	
              45

            
	 	 	 
	
              SCHEDULE
                I - CERTIFICATE OF ACCEPTANCE 

            	
              46

            
	
              SCHEDULE
                II - BILL OF SALE 

            	
              47

            
	
              SCHEDULE
                III - CERTIFICATE OF RECEIPT OF AIRCRAFT 

            	
              48

            
	
              SCHEDULE
                IV- CHANGE ORDER 

            	
              49

            
	
              SCHEDULE
                V - EDC Draft Letter of Offer

            	
              50

            
	
              ANNEX
                A          Customer
                Support Services

            	 
	
              ANNEX
                B          Warranty
                and Service Life Policy

            	 

    

    

    

    
      
        
          PA
            -581

          Frontier
            Airlines Holdings,
            Inc                                                                                                                                                                                              
i

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LETTER
      AGREEMENTS

    

    
      	
              Letter
                Agreement No. 01 

            	
              Aircraft
                Credit Memoranda

            
	
              Letter
                Agreement No. 02 

            	
              Option
                Aircraft

            
	
              Letter
                Agreement No. 03 

            	
              Additional
                Customer Support

            
	
              Letter
                Agreement No. 04 

            	
              Buyer
                Furnished Equipment

            
	
              Letter
                Agreement No. 05 

            	
              Warranty
                Support

            
	
              Letter
                Agreement No. 06 

            	
              Goods
                and Services Credit Memoranda

            
	
              Letter
                Agreement No. 07 

            	
              Product
                Enhancements

            
	
              Letter
                Agreement No. 08 

            	
              Spares
                Program

            
	
              Letter
                Agreement No. 09 

            	
              [***]

            
	
              Letter
                Agreement No. 10 

            	
              [***]

            
	
              Letter
                Agreement No. 11 

            	
              [***]
                

            
	
              Letter
                Agreement No. 12 

            	
              [***]

            
	
              Letter
                Agreement No. 13 

            	
              [***]

            
	
              Letter
                Agreement No. 14

            	
              [***]

            
	
              Letter
                Agreement No. 15

            	
              [***]

            

    

    

    

    

    
      
        
          PA
            -581

          Frontier
            Airlines Holdings, Inc                                                                 ii

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      Agreement is made on the 1ST
      day of
      September, 2006

     

    BETWEEN:   
      BOMBARDIER
      INC., a Canadian corporation represented by Bombardier Aerospace, Regional
      Aircraft having an office located at 123 Garratt Boulevard, Toronto, Ontario,
      Canada (“Bombardier”).

     

    AND:               
      Frontier
      Airlines Holdings, Inc, a Delaware corporation having an office located at
      7001
      Tower Road, Denver, Colorado, 80249-7312 USA. (“Frontier”)

     

    
      	
              WHEREAS:

            	
              Frontier
                desires to purchase and Bombardier desires to sell Ten (10) Bombardier
                Q400 Series aircraft and related data, documents, and services on
                the
                terms and conditions set out in this
                Agreement;

            

    

     

    NOW
      THEREFORE, in consideration of the mutual covenants herein contained, Frontier
      and Bombardier agree as follows:

    

    
      
        PA
          -581

        Frontier
          Airlines Holdings, Inc                                                                3

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      1. INTERPRETATION

     

    1.1      
      The
      headings in this Agreement are included for convenience only and shall not
      be
      used in the construction or interpretation of this Agreement.

     

    1.2      
      in
      this
      Agreement, unless otherwise expressly provided, the singular includes the plural
      and vice-versa.

     

    1.3      
      In
      this
      Agreement the following expressions shall have the meaning ascribed thereto
      below unless otherwise expressly provided:

     

    “Acceptance
      Date”
means
      the date of execution of the Certificate of Acceptance by Frontier;

     

    “Acceptance
      Period”
means
      a period of up to [***] commencing with the Readiness Date, subject to extension
      pursuant to Article 8.7, commencing on the later of the Readiness Date or the
      date the Aircraft is actually made available to Frontier for ground inspection
      and acceptance flight, in which to complete the inspection and acceptance flight
      [***];

     

    “Agreement”
      means
      this Agreement, including its Schedules,
      Annexes attached hereto, letter agreements and the Specification (each of which
      is incorporated in the Agreement by this reference), as they may be amended
      or
      supplemented pursuant to the provisions of the Agreement;

     

    “Aircraft”
means
      the aircraft to be sold and purchased pursuant to this Agreement. For the
      avoidance of doubt, in the event that this Agreement covers more than one
      aircraft (including any aircraft the subject of an option purchase), the
      expression “Aircraft” shall refer to any one or more of such aircraft as the
      context requires;

     

    “Aircraft
      Purchase Price”
has
      the meaning set out in Article 4.2;

     

    “Base
      Price”
has
      the meaning set out in Article 4.2;

     

    “Bill
      of Sale”
      means
      a
      bill of sale in the form set out in Schedule
      II;

     

    “Business
      Day”
means
      any day other than a Saturday, Sunday or day on which commercial banking
      institutions in New York, New York, Denver, Colorado or Toronto, Ontario, Canada
      are authorized by law to be closed;

     

    “Buyer
      Requested Changes” means
      changes made pursuant to Article 10.1 ;

     

    “Buyer
      Selected Optional Features” means
      the items set out in Appendix IV;

     

    “Certificate
      of Acceptance”
means
      a certificate of acceptance in the form set out in Schedule
      I;

     

    “Certificate
      of Receipt of Aircraft”
means
      a certificate in the form set out in Schedule III;

     

    
      
        PA
          -581

        Frontier
          Airlines Holdings, Inc                                                                4

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    “Change
      Order” means
      a
      request for a change to the Specification in the form set out in Schedule
      IV;

     

    “Delivery”
      means
      when Bombardier delivers the Aircraft and Bill of Sale to Frontier on the
      Delivery Date;

     

    “Delivery
      Date”
means
      the date on which Bombardier delivers the Aircraft and Bill of Sale to
      Frontier;

     

    “Economic
      Adjustment Formula” means
      the economic adjustment formula attached as Appendix I to reflect economic
      fluctuations during the period from [***] to the Delivery Date of each Aircraft
      provided that no adjustment shall have the effect of reducing the Aircraft
      Purchase Price below the Base Price.

     

    [***];

     

    “Excusable
      Delay”
has
      the meaning set out in Article 12.1;

     

    “FAA”
means
      the Federal Aviation Administration of the United States of
      America;

     

    “Intellectual
      Property”
means
      a patent, trademark, industrial design or copyright registered with a Canadian
      or United States office or agency having jurisdiction with respect thereto
      or
      similar office or agency of another country whose laws respect the rights of
      patent, trademark, industrial design and copyright owners of other
      countries;

     

    “Non-Excusable
      Delay”
has
      the meaning set out in Article 13.1;

     

    “Notice”
means
      any notice, request, approval, permission, consent or other communication to
      be
      given or required under this Agreement which must be contained in a written
      instrument;

     

    “Permitted
      Change”
has
      the meaning set out in Article 10.2;

     

    “Penalty
      Interest Rate”
means
      the rate equal to [***] plus [***] basis points, calculated and compounded
      monthly;

     

    “PWC”
means
      the engine manufacturer, Pratt & Whitney;

     

    [***];

     

    “Readiness
      Date”
means
      the date on which the Aircraft will be ready for Frontier’s inspection,
      acceptance flight and acceptance (as notified by Bombardier to Frontier) which
      date, pursuant to Article 8.1, shall not be later than the [***] of the
      Scheduled Delivery Month;

     

    “Regulatory
      Change”
has
      the meaning set out in Article 10.3;

     

    “Scheduled
      Delivery Date”
has
      the meaning set out in Article 8.2;

     

    “Scheduled
      Delivery Month” means
      the month specified in Appendix II for the delivery of each of the Aircraft,
      as
      modified from time to time pursuant to this Agreement;

     

    
      
        PA
          -581

        Frontier
          Airlines Holdings, Inc                                                                 5

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    “Specification”
means
      type specification bearing number DS8-400 Revision 1 dated April 2002, and
      any
      subsequent amendments or modifications to this document, together with the
      Buyer
      Selected Optional Features. The Specification may be further modified from
      time
      to time in accordance with this Agreement;

     

    “Subsidiary”
of
      a
      corporation means a corporation more than 50% of whose stock or other equity
      interest of any class or classes having by the terms thereof ordinary voting
      power to elect a majority of the directors (or equivalent officials) is at
      the
      time owned directly or indirectly by such corporation;

     

    “Taxes”
has
      the meaning set out in Article 4.3; and

     

    “TC”
means
      Transport Canada.

     

    All
      dollar amounts in this Agreement are in United States Dollars and all references
      to $ and USD have a corresponding meaning.

     

    1.4      
      In
      this
      Agreement, reference to an Article, Schedule, Annex or Appendix shall be
      construed as a reference to an article, schedule, annex or appendix of and
      to
      this Agreement.

     

    
      	
              1.5

            	
              In
                this Agreement, reference to “include” or “including” shall mean including
                without limitation.

            

    

     

    
      	
              1.6

            	
              For
                the purposes of this Agreement, a corporation is an affiliate of
                another
                corporation if, but only if, one corporation is a Subsidiary of the
                other
                corporation or both corporations are Subsidiaries of the same
                corporation.

            

    

     

    
      
        PA
          -581

        Frontier
          Airlines Holdings, Inc                                                                    6

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
       

      ARTICLE
        2.     SUBJECT
        MATTER OF SALE

    

     

    
      	
              2.1

            	
              Subject
                to the terms and conditions of this Agreement, Bombardier will sell
                and
                Frontier will purchase Ten (10) newly manufactured Bombardier Q400
                Series
                aircraft manufactured pursuant to the Specification as supplemented
                to
                include the Buyer Selected Optional
                Features.

            

    

     

    ARTICLE
      3. CUSTOMER
      SUPPORT SERVICES AND WARRANTY

     

    
      	
              3.1

            	
              Bombardier
                shall provide to Frontier the customer support services pursuant
                to the
                provisions of Annex A.

            

    

     

    
      	
              3.2

            	
              Bombardier
                shall provide to Frontier the warranty and the service life policy
                described in Annex B [***] which shall be the exclusive warranty
                applicable to the Aircraft.

            

    

     

    Unless
      expressly stated otherwise, the services referred to in 3.1 and 3.2 above are
      included in the Aircraft Purchase Price.

    

    ARTICLE
      4.     PRICE/TAXES

     

    
      	
              4.1

            	
              The
                price of the Aircraft shall be the Aircraft Purchase
                Price.

            

    

     

    4.2

     

    
      	 	
              (a)

            	
              The
                basic price for each Aircraft (excluding the Buyer Selected Optional
                Features) is [***]
                United States Dollars ([***]
                USD) expressed in [***]
                United States Dollars.

            

    

     

    
      	 	
              (b)

            	
              The
                price for the Buyer Selected Optional Features is [***]
                United States Dollars ([***]
                USD)
                expressed in [***]
                United States Dollars.

            

    

     

    
      	 	
              (c)

            	
              The
                Base Price for each Aircraft is [***]
                United
                States Dollars ($[***]
                USD) expressed in [***]
                United States Dollars which is the sum of the basic price of the
                Aircraft
                and the price of the Buyer Selected Optional Features, expressed
                in
                [***]
                United States Dollars.

            

    

     

    
      	 	
              (d)

            	
              The
                Aircraft Purchase Price means for each Aircraft, the Base Price adjusted
                for (i) Buyer Requested Changes, (ii) any Regulatory Changes in respect
                of
                which Frontier shall pay Bombardier’s reasonable charges pursuant to
                Article 10, and (iii) the Economic Adjustment
                Formula.

            

    

     

    
      	 	
              (e)

            	
              [***].

            

    

     

    
      	
              4.3

            	
              The
                Base Price stated in [***] United States Dollars and is subject to
                adjustment to the Delivery Date; provided that in no event shall
                such
                adjustment result in a price adjustment that exceeds the lesser of:
                (A)
                the percentage amount calculated in accordance with the Economic
                Adjustment Formula, or (B) [***] per year;
                [***].

            

    

     

    
      	
              4.4

            	
              The
                Aircraft Purchase Price does not include any taxes, fees or duties
                including, but not limited to, sales, use, value added (including
                the
                Canadian Goods and Services Tax), personal property, gross receipts,
                franchise, excise taxes, assessments or
                duties

            

    

     

    
      
        PA
          -581

        Frontier
          Airlines Holdings, Inc                                                                    7

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

     

    (“Taxes”)
      (other than Canadian income taxes charged on the income of Bombardier and its
      affiliates) which are or may be imposed by law upon Bombardier, any affiliate
      of
      Bombardier, Frontier or the Aircraft whether or not there is an obligation
      for
      Bombardier to collect same from Frontier, by any taxing authority or
      jurisdiction occasioned by, relating to or as a result of the execution of
      this
      Agreement or the sale, lease, delivery, storage, use or other consumption of
      any
      Aircraft or any other matter, good or service provided under or in connection
      with this Agreement.

     

    
      	
              4.5

            	
              If
                any Taxes (other than Canadian income taxes charged on the income
                of
                Bombardier) are imposed upon Bombardier or Frontier and become due
                or are
                to be collected from Bombardier by any taxing authority, Bombardier
                shall
                notify Frontier. If Frontier has not paid for the Aircraft in full,
                such
                Taxes shall be added to the Aircraft Purchase Price. If Frontier
                has paid
                for the Aircraft, Frontier shall promptly, but no later than ten
                (10)
                working days after receiving such notice, pay such Taxes directly
                to the
                taxing authority, or reimburse Bombardier for such Taxes, as the
                case may
                be, including interest and
                penalties.

            

    

     

    
      	
              4.6

            	
              Each
                of Bombardier and Frontier, at the reasonable request of the other,
                shall
                execute and deliver any documents the requesting party deems necessary
                or
                desirable in connection with any exemption from or reduction of or
                the
                contestation of or the defense against any imposition of
                Taxes.

            

    

     

    ARTICLE
      5.     PAYMENT

     

    
      	
              5.1

            	
              Bombardier
                has previously received from Frontier a deposit of [***]United States
                Dollars ([***] USD) (“Deposit”), [***] for each of the ten (10)
                Aircraft.

            

    

     

    
      	
              5.2

            	
              Frontier
                shall make payment or cause payment to be made for each Aircraft
                as
                follows:

            

    

     

    
      	
              Date
                Due

            	
              Percentage
                of [***]
                Aircraft

              Purchase
                Price

               

            
	
               

              Contract
                signature

               

            	
               

              [***]

               

            
	
               

              [***]
                prior to the first day of the Scheduled Delivery Month

               

            	
               

              [***]

               

            
	
               

              The
                balance of the Aircraft Purchase Price

               

            	
               

              at
                Delivery

               

            

    

    

     

    
      	
              5.3

            	
              If
                Frontier fails to pay any amount payable by it under this Agreement
                when
                due, Frontier shall pay Bombardier daily interest on late payments,
                from
                the date that any payment becomes due up to and including the day
                of
                payment, at the Penalty Interest Rate. Bombardier’s right to receive such
                interest is in addition to any other right or remedy Bombardier has
                at law
                as a result Frontier’s failure to make payments when due including the
                right to terminate this Agreement in accordance with Article
                14.2.

            

    

     

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    8

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
 

    
      
        	
                5.4

              	
                Frontier
                  shall make all payments due under this Agreement in immediately
                  available
                  funds by deposit on or before the due date to Bombardier’s account in the
                  following manner or such other bank account as Bombardier may notify
                  to
                  Frontier from time to time:

              

      

    

     

    Transfer
      to:                 
Bank
      of
      America

    1401
      Elm Street

    Dallas,
      Texas, U.S.A.

    75202

    Account
      Name:            [***]

    Account
      #:                  
[***]

    ABA#                          
      [***]

    SWIFT
      number:           [***]

    

    PLEASE
      REFERENCE: INVOICE # AND/OR AIRCRAFT SERIAL #

     

    
      	
              5.5

            	
              All
                other amounts due, including any taxes, with respect to each Aircraft
                shall be paid on or prior to Delivery of the respective
                Aircraft.

            

    

     

    
      	
              5.6

            	
              Bombardier
                shall remain the exclusive owner of the Aircraft, free and clear
                of all
                rights, liens, charges, encumbrances or special property interests
                of or
                created by or through Frontier, until such time as all payments referred
                to in this Article 5 have been
                made.

            

    

     

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    9

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      6.     BUYER
      INFORMATION

     

    
      	 	
              6.1

            	
              During
                the manufacture of the Aircraft, each party shall provide the information
                set forth in Appendix V and such other information as either party
                may
                reasonably request that is required for such party to fulfill its
                obligations under this Agreement. The requesting party shall advise
                the
                other party of the specific information required and the latest date
                by
                which such information is required, and the other party shall provide
                such
                information by the date(s) so
                advised.

            

    

     

    Failure,
      refusal or delay of Frontier to comply with the requirements of this Article
      that [***]
      may
      result in an increase in the Aircraft Purchase Price, a delay in the delivery
      of
      the Aircraft, or both. Further, any material revisions by Frontier to the
      Appendix V information that Bombardier receives after the respective due date
      may result in an increase in the Aircraft Purchase Price, a delay in delivery
      of
      the Aircraft, or both. Bombardier shall, in any event, provide not less than
      [***]
      prior
      Notice to Frontier of the same before such increase in the Aircraft Purchase
      Price or delay in delivery shall become effective.

    

    For
      the
      avoidance of doubt, Frontier may [***] at least [***] to the [***] for [***]
      subject to [***], to be mutually agreed; provided that there shall be [***]
      to
      the [***]. 

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    10

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      7.     CERTIFICATION

     

    
      	
              7.1

            	
              Bombardier
                has obtained or will obtain prior to Delivery of each Aircraft to
                Frontier, at no cost to Frontier, (a) from TC, a TC Type Certificate
                (Transport Category), and (b) from the FAA an FAA Type Certificate
                for the
                Aircraft.

            

    

     

    
      	
              7.2

            	
              Bombardier
                shall provide to Frontier a TC Certificate of Airworthiness (Transport
                Category) for export to the United States of America for each Aircraft
                on
                or before the Delivery Date.

            

    

     

    
      	
              7.3

            	
              Except
                as expressly provided in this Agreement, Bombardier shall not be
                obligated
                to obtain and/or provide any other certificates (or similar documents)
                or
                approvals as part of this
                Agreement.

            

    

     

    
      	
              7.4

            	
              Frontier
                is responsible for obtaining all import licenses and/or authorizations
                required to import or operate the Aircraft into any country outside
                of
                Canada.

            

    

     

    
      	
              7.5

            	
              Bombardier
                shall, to the extent permitted by law [***], provide Frontier with
                such
                assistance as it may reasonably request to obtain a Canadian export
                license to enable Frontier to export the Aircraft from Canada subject
                to
                prevailing export control regulations (including those of the United
                States) in effect on the Delivery
                Date.

            

    

     

    
      	
              7.6

            	
              Bombardier
                shall deliver to Frontier or, as applicable, the FAA, and at Frontier’s
                expense, any documents required to import and permit the registration
                of
                the Aircraft in the United States including, but not limited to,
                an
                original ink signed Bill of Sale to be pre-positioned with Frontier’s
                designated FAA counsel prior to Delivery and, if required, a
                de-registration notice in respect of the Aircraft from
                TC.

            

    

     

    
      	
              7.7

            	
              If
                the use of any of the certificates identified in this Article 7 are
                discontinued during the performance of this Agreement, reference
                to such
                discontinued certificate shall be deemed a reference to any other
                certificate or instrument which corresponds to such certificate or,
                if
                there should not be any such other certificate or instrument, then
                Bombardier shall be deemed to have obtained such discontinued
                certificate(s) upon demonstrating that the Aircraft complies substantially
                with the Specification as supplemented to include the Buyer Selected
                Optional Features. References to a regulatory authority shall include
                any
                succeeding department or agency then responsible for the duties of
                said
                regulatory authority.

            

    

     

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    11

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      8.     DELIVERY
      AND ACCEPTANCE PROCEDURE

     

    
      	
              8.1

            	
              The
                Aircraft shall be offered to Frontier for inspection and acceptance
                at
                Bombardier’s facility in Toronto, Ontario during the Scheduled Delivery
                Month on the Readiness Date; [***].

            

    

     

    
      	
              8.2

            	
              Bombardier
                shall give Frontier at least [***] advance Notice of the projected
                [***]
                and [***] advance Notice of the projected Readiness Date of each
                Aircraft
                for inspection, a schedule of the acceptance procedure, [***]. Frontier
                will receive immediate Notice of any change to the projected Readiness
                Date. In addition, Bombardier shall give Frontier at least [***]
                advance
                Notice of the actual Readiness Date.

            

    

     

    
      	
              8.3

            	
              Within
                [***] following receipt by Frontier of the Notice of the final Readiness
                Date, Frontier shall:

            

    

     

    
      	 	
              (a)

            	
              provide
                Notice to Bombardier as to the source and method of payment of the
                balance
                of the Aircraft Purchase Price;

            

    

     

    
      	 	
              (b)

            	
              identify
                to Bombardier the names of Frontier’s representatives who will participate
                in the inspection, acceptance flight and acceptance;
                and

            

    

     

    
      	 	
              (c)

            	
              provide
                evidence of the authority of the designated persons to execute the
                Certificate of Acceptance and other delivery documents on behalf
                of
                Frontier.

            

    

     

    
      	
              8.4

            	
              Frontier
                shall complete an inspection and acceptance flight test of the Aircraft
                during the Acceptance Period.

            

    

     

    
      	
              8.5

            	
              Up
                to [***] of Frontier may participate in Frontier’s ground inspection of
                the Aircraft and [***] of Frontier may participate in the acceptance
                flight. Bombardier shall, if requested by Frontier, perform an acceptance
                flight [***] of not less than one (1) and not more than three (3)
                hours
                duration. Ground inspection and any acceptance flights shall be conducted
                in accordance with Bombardier’s acceptance procedures, a copy of which
                shall be provided to Frontier at least thirty (30) days prior to
                the
                Scheduled Delivery Month of the first Aircraft to be delivered under
                this
                Agreement. [***] At all times during inspection and acceptance flight
                tests, Bombardier shall retain possession and control over the
                Aircraft.

            

    

     

    
      	
              8.6

            	
              Any
                discrepancies Frontier discovers during the ground inspection or
                acceptance flight test will promptly be corrected by Bombardier,
                at no
                cost to Frontier, as soon as reasonably possible, and the Acceptance
                Period shall be extended as necessary. To the extent necessary to
                verify
                such correction, Bombardier shall perform a further acceptance flight
                or
                flights accompanied by Frontier’s representatives in accordance with the
                requirements of Article 8.5. [***]

            

    

     

    
      	
              8.7

            	
              [***],
                following correction of any discrepancies or any other agreement
                between
                Bombardier and Frontier in connection with the same, Frontier shall
                accept
                the Aircraft in accordance with the provisions of Article 8.8 on
                or before
                the last day of the Acceptance
                Period.

            

    

     

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    12

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

     

    
      	
              8.8

            	
              Upon
                completion by Frontier of the inspection and acceptance flight test
                of the
                Aircraft and correction of any
                discrepancies:

            

    

     

    
      	 	
              (a)

            	
              Frontier
                will sign and deliver to Bombardier a Certificate of Acceptance for
                the
                Aircraft. Execution of the Certificate of Acceptance by or on behalf
                of
                Frontier shall be conclusive evidence of Frontier having examined
                the
                Aircraft and finding it in accordance with the Specification as
                supplemented to include the Buyer Selected Optional Features as of
                the
                Delivery Date;

            

    

     

    
      	 	
              (b)

            	
              Bombardier
                will deliver to Frontier a TC Certificate of Airworthiness for Export
                to
                the United States of America;

            

    

     

    
      	 	
              (c)

            	
              Frontier
                shall pay Bombardier the balance of the Aircraft Purchase
                Price;

            

    

     

    
      	 	
              (d)

            	
              Upon
                receipt by Bombardier of the balance of the Aircraft Purchase Price,
                Bombardier shall deliver to Frontier a Bill of Sale for the Aircraft;
                and

            

    

     

    
      	 	
              (e)

            	
              Frontier
                shall execute and deliver to Bombardier a Certificate of Receipt
                of
                Aircraft.

            

    

     

    

    

    
      	
              8.9

            	
              With
                respect to any discrepancies discovered by Frontier during its
                pre-Delivery inspections conducted under this Article 8, Frontier
                shall
                not refuse to accept Delivery of any Aircraft
                where:

            

    

     

    

     

    
      	 	
              a.

            	
              any
                such discrepancy does not [***];
                and

            

    

     

    
      	 	
              b.

            	
              any
                such discrepancy does not [***];
                and

            

    

     

    
      	 	
              c.

            	
              any
                such discrepancy [***]; and

            

    

     

    
      	 	
              d.

            	
              Bombardier
                has [***].

            

    

     

    

    Subject
      to the provisions of this Article 8 and Articles 12 and 13 and each of
      Bombardier’s and Frontier’s respective compliance with the terms and conditions
      hereof and thereof, each of Frontier and Bombardier agree that [***]
      shall
      be equivalent to an offer to tender to Frontier of an Aircraft conforming to
      the
      requirements under this Agreement for Delivery, and failure, refusal or delay
      by
      Frontier to act on such Notice in accordance with this Agreement shall
      constitute a default under this Agreement entitling Bombardier to pursue its
      remedies hereunder.

    

    In
      addition to any other rights available to Bombardier, Frontier shall promptly,
      upon demand, reimburse Bombardier for all costs and expenses incurred by
      Bombardier as a result of a failure, refusal or delay by Frontier to accept,
      take delivery of and/or remove an Aircraft properly tendered for Delivery by
      Bombardier from Bombardier’s premises, including but not Iimited to amounts for
      storage, insurance, Taxes and the preservation and protection of the Aircraft.
      In addition, Bombardier may in its reasonable discretion,

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    13

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
 

    without
      releasing Frontier from any of its liabilities to Bombardier and without any
      liability whatsoever of Bombardier to Frontier, deliver the Aircraft affected
      by
      such failure, refusal or delay to another customer to minimize the impact upon
      Bombardier of such failure, refusal or delay by Frontier hereunder, whether
      or
      not Bombardier elects to terminate this Agreement with respect to that Aircraft
      pursuant to Article 14.2 hereunder.

    

     

     

    
 

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    14

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
 

    ARTICLE
      9.     TITLE
      AND RISK

     

    
      	
              9.1

            	
              Title
                to the Aircraft and risk of loss of or damage to the Aircraft passes
                to
                Frontier when Bombardier delivers and Frontier accepts the Bill of
                Sale on
                the Delivery Date.

            

    

     

    
      	
              9.2

            	
              Unless
                otherwise agreed in writing, if, after the Delivery Date, the Aircraft
                remains in or is returned to the care, custody or control of Bombardier,
                Frontier shall retain risk of loss of, or damage to the Aircraft
                and for
                itself and on behalf of its insurer(s) hereby waives, renounces and
                releases Bombardier and any of Bombardier’s affiliates from any claim,
                whether direct, indirect or by way of subrogation, for damages to
                or loss
                of the Aircraft arising out of, or related to, or by reason of such
                care,
                custody or control [***].

            

    

     

     

     

    
 

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    15

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      10.     CHANGES

     

    
      	
              10.1

            	
              Buyer
                Requested Changes

            

    

     

    Frontier
      shall request changes to the Specification including any Buyer Selected Optional
      Features by way of a Change Order. Should Frontier request a change, Bombardier
      shall advise Frontier whether Bombardier is prepared to agree to make such
      change and, if so, of the price and availability of the change and, to the
      extent reasonably practical, of the expected effect, if any, of such change
      request on:

    

    (a)    the
      Scheduled Delivery Month;

    

    (b)    the
      price and payment terms applicable to the Change Order; and

    

    (c)    the
      performance characteristics of the Aircraft.

    

    Such
      Change Order shall become effective and binding on the parties hereto when
      signed by a duly authorized representative of each party. Any changes made
      in
      accordance with the provisions of this Article 10.1 shall be a “Buyer Requested
      Change” and the cost thereof shall be borne by Frontier. Any delay in Delivery
      resulting from changes to the Delivery Date agreed by Frontier in such Change
      Order shall not be deemed a Non-Excusable Delay under this Agreement and such
      date shall thereafter be the project Readiness Date for such Aircraft for all
      purposes, including Article 12 and Article 13.

    

    
      	
              10.2

            	
              Permitted
                Changes

            

    

     

    Bombardier
      may, prior to the Delivery Date and without a Change Order or Frontier’s
      consent:

    

    
      	 	
              (a)

            	
              substitute
                the kind, type or source of any material, part, accessory or equipment
                with any other material, part, accessory or equipment of like, equivalent
                or better kind or type; or

            

    

    

    
      	 	
              (b)

            	
              make
                such change or modification to the Specification as it deems appropriate
                to:

            

    

    

    1)   
      improve
      the Aircraft, its maintainability or appearance, or 

    2)   
      prevent
      delays in manufacture or delivery,

    

    provided
      that such substitution, change or modification shall not (i) increase the
      Aircraft Purchase Price and/or (ii) adversely affect (a) the Scheduled Delivery
      Month, (b) interchangeability, or replaceability of spare parts or (c) the
      performance related guarantees described in any Letter Agreement. If a
      substitution, change or modification affects the Aircraft Purchase Price or
      affects the Scheduled Delivery Month, interchangeability or replaceability
      of
      spare parts or the performance related guarantees described Letter Agreements
      Nos. 10 - 13, Frontier’s consent shall be required in order to incorporate such
      substitution, change or modification. Any change made in accordance with the
      provisions of this Article 10.2 shall be deemed to be a “Permitted Change” and
      the cost thereof shall be borne by Bombardier.

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    16

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.3    
      Regulatory
      Changes

     

    If
      any
      change to, or modification or testing of, the Aircraft is required by any law
      or
      governmental regulation or requirement or interpretation thereof by any
      governmental agency having jurisdiction in order to meet the requirements of
      Article 7.2 (a “Regulatory Change”), such Regulatory Change shall be made to the
      Aircraft prior to the Delivery Date to the extent practicable, or at such other
      time after the Delivery Date as the parties may agree upon.

    

    The
      Regulatory Change shall be made without additional charge to Frontier unless
      such Regulatory Change is:

    

    
      	 	
              (a)

            	
              necessary
                to comply with any requirement of the United States of America which
                varies from or is in addition to its regulations, requirements or
                interpretations in effect on the date hereof for the issuance of
                a
                Certificate of Airworthiness in the United States of America and
                which is
                not also required by TC, in which case Frontier shall pay Bombardier’s
                reasonable charges for such Regulatory Change,
                or

            

    

    

    
      	 	
              (b)

            	
              required
                by any governmental law or regulations or interpretation thereof
                promulgated by the FAA which is effective subsequent to the date
                of this
                Agreement but before the Delivery Date and which is applicable to
                [***],
                in which case Frontier shall pay Bombardier’s reasonable charges for such
                Regulatory Change incorporated in any such
                Aircraft.

            

    

    

    If
      Delivery of an Aircraft is delayed as a direct result of Bombardier’s
      incorporation of modifications to the Aircraft to comply with any Regulatory
      Change, such delay, absent other fault or neglect of Bombardier, shall be deemed
      an Excusable Delay within the meaning of Article 12; provided [***].

    

    In
      such
      circumstances, [***].

    

    Bombardier
      shall issue a Change Order reflecting any Regulatory Change which shall set
      forth in detail the particular changes to be made to the Aircraft and the
      anticipated effect, if any, of such changes on design, performance, weight,
      balance, projected Readiness Date or Scheduled Delivery Month as applicable,
      and
      the Base Price and estimated Aircraft Purchase Price. Any Change Orders issued
      pursuant to this Article shall be effective and binding upon the date of
      Bombardier’s transmittal of such Change Order.

    

    
      	
              10.4

            	
              For
                the avoidance of doubt, Bombardier and Frontier acknowledge that
                Buyer
                Requested Changes, Permitted Changes and Regulatory Changes are intended
                to be mutually exclusive
                categories.

            

    

     

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    17

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      11.     FRONTIER’S
      REPRESENTATIVES AT BOMBARDIER SITE

     

    
      	
              11.1

            	
              From
                time to time, commencing [***] prior to the Scheduled Delivery Month
                of
                the first Aircraft to be delivered and ending with Delivery of the
                last
                Aircraft purchased hereunder, subject to Article 11.3 Bombardier
                shall
                furnish, without charge, suitable and private office space and related
                equipment including desk, file cabinet, access to a telephone, facsimile
                and photocopy equipment conveniently located at Bombardier’s facility
                relating to the manufacture of the aircraft for one (1) representative
                of
                Frontier. Frontier shall be responsible for all expenses of its
                representative and shall notify Bombardier at least thirty (30) calendar
                days prior to the first scheduled visit of such representative and
                three
                (3) days for each subsequent visit.

            

    

     

    
      	
              11.2

            	
              Bombardier’s
                and Bombardier’s affiliates’, facilities relating to the manufacture of
                the Aircraft shall be accessible to Frontier’s representative during
                normal working hours. Frontier’s representative shall have the right to
                observe the work at Bombardier’s or Bombardier’s affiliates’ facilities
                where the work is being carried out provided there shall be no
                unreasonable disruption in the performance of the
                work.

            

    

     

    
      	
              11.3

            	
              Frontier’s
                representative shall conform to Bombardier’s rules and regulations and any
                other rules and regulations applicable at the facilities being visited
                [***].

            

    

     

    At
      any
      time prior to delivery of the Aircraft, Frontier’s representative may request,
      in writing, correction of parts or materials which they reasonably believe
      are
      not in accordance with the Specification. Bombardier shall provide a written
      response to any such request [***].
      Communication between Frontier’s representative and Bombardier shall be solely
      through Bombardier’s Contract Department.

    

    In
      connection with the foregoing, Frontier personnel shall be and remain employees
      or agents of Frontier, and under no circumstances are such personnel to be
      considered employees or agents of Bombardier. Frontier shall have the sole
      responsibility for supervision and control of its personnel. Each of Frontier
      and Bombardier assumes full responsibility for any and all liability on account
      of bodily injury to or death of any of its own employees occurring during the
      course of their employment. Each party, with respect to its own employees,
      accepts full and exclusive liability in the payment of workers’ compensation or
      employer’s liability insurance premiums and for the payment of all taxes,
      contributions, or other payments for unemployment compensation or old age
      benefits, pensions or annuities imposed by any government or agency having
      jurisdiction.

    

    Frontier
      hereby releases and agrees to defend, indemnify and hold harmless Bombardier,
      its affiliates and their respective officers, directors, agents, employees
      and
      contractors from and against all liabilities, damages, losses, costs and
      expenses resulting from any acts by Frontier’s representatives or resulting from
      injuries to or death of, Frontier’s representatives while at the facilities of
      Bombardier or Bombardier’s affiliates or their respective subcontractors or in
      connection with any and all acts and/or omissions of Frontier agents, employees
      and independent contractors while on or at Bombardier’s premises

    

    

    ARTICLE
      12.     EXCUSABLE
      DELAY

     

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    18

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

     

    
      
        	
                12.1

              	
                If
                  Bombardier is prevented or delayed, directly or indirectly, from
                  performing any of its obligations under this Agreement by an Excusable
                  Delay, Bombardier shall not be liable for, and shall not be in
                  default
                  under this Agreement on account of, such delay or non-performance
                  and the
                  time fixed or required for the performance of any obligation in
                  this
                  Agreement shall be extended for a period equal to the period during
                  which
                  any such event or the effects thereof shall persist. Excusable
                  Delay
                  means:

              

      

       

    

    
      	 	
              (a)

            	
              Domestic
                war or material armed hostilities impacting the assembly process
                of the
                Aircraft or Bombardier’s vendors;

            

    

    
      	 	
              (b)

            	
              Government
                acts;

            

    

    
      	 	
              (c)

            	
              Fires,
                floods, earthquakes or other similar “Acts of God” directly and materially
                impacting the assembly process of the Aircraft or Bombardier’s
                Vendors;

            

    

    
      	 	
              (d)

            	
              Pandemic
                or quarantine restrictions [***];

            

    

    
      	 	
              (e)

            	
              Delay
                caused by delays of Frontier in the provision and delivery of buyer
                furnished equipment in accordance with a mutually agreed
                schedule;

            

    

    
      	 	
              (f)

            	
              Strikes,
                lock-out, walk-out, and/or other labour actions causing cessation,
                slow-down or interruption of work [***];

            

    

    
      	 	
              (g)

            	
              Lack
                or shortage or delay in delivery of supplies, materials, accessories,
                equipment, tools or parts not caused or occasioned by Bombardier’s fault
                or neglect, [***].
                For the avoidance of doubt, any Excusable Delay suffered by a supplier
                may
                give rise to an Excusable Delay in accordance with these provisions;
                and

            

      	 	(h)	Delay in obtaining any FAA
              airworthiness, approval or certificate, or any equivalent approval
              or
              certification, by reason of any law or governmental order, directive
              or
              regulation or any change thereto, or interpretation thereof, by the
              FAA,
              [***]
              provided the delay is reasonable in consideration of, [***].

    

     

     

    Upon
      recognition by Bombardier of the occurrence or anticipated occurrence of an
      Excusable Delay, Bombardier will provide Notice to Frontier of the same and
      Bombardier shall within [***]
      to
      provide to Frontier a recovery plan and its proposed cure for such Excusable
      Delay.

     

    Bombardier
      agrees that in the event of an Excusable Delay,
      [***].

     

    
      	
              12.2

            	
              (a)

            	
              If
                Bombardier concludes, based on its appraisal of the facts and normal
                scheduling procedures, that due to Excusable Delay delivery of an
                Aircraft
                will be delayed for more than [***] after the original Scheduled
                Delivery
                Month or any revised date agreed to in writing by the parties, Bombardier
                shall promptly notify Frontier in writing and either party may within
                [***] terminate this Agreement with respect to such Aircraft by giving
                Notice to the other party.

            

    

     

    
      	 	
              (b)

            	
              If,
                due to Excusable Delay, delivery of any Aircraft is delayed for more
                than
                [***] after the last day of the original Scheduled Delivery Month
                or any
                revised date agreed to by the parties, either party may [***] terminate
                this Agreement with respect to such Aircraft by giving Notice to
                the other
                party.

            

    

     

    
      	
              12.3

            	
              If
                prior to Delivery of an Aircraft, that Aircraft is lost, destroyed
                or
                damaged beyond repair, Bombardier shall promptly notify Frontier
                in
                writing. Such Notice shall specify the earliest date reasonably possible,
                consistent with Bombardier’s other contractual commitments and production
                schedule, by which Bombardier estimates it would be
                able

            

    

     

    
      
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    to
      deliver a replacement for the lost, destroyed or damaged Aircraft. If the Notice
      specifies a date [***] after the original Scheduled Delivery Month or any
      revised date agreed to in writing by the parties, either party may [***]
      terminate this Agreement with respect to the/that Aircraft by giving written
      notice to the other party. Unless Frontier exercises any right it may have
      to
      terminate this Agreement with respect to the/that Aircraft, the parties shall
      execute an amendment to this Agreement which shall set forth the revised
      Scheduled Delivery Month and, if practicable, the Readiness Date for such
      replacement aircraft; provided, however, that nothing herein shall obligate
      Bombardier to manufacture and deliver or Frontier to purchase such replacement
      aircraft if it would require the reactivation or acceleration of its production
      line for the model of aircraft purchased hereunder. The terms and conditions
      of
      this Agreement otherwise applicable to the replaced Aircraft shall apply to
      the
      replacement aircraft. The Base Price for the replacement aircraft shall be
      as
      set forth in Article 4.2 as if such replacement aircraft were an “Aircraft”
under this Agreement. The Base Price for such replacement aircraft shall be
      subject to adjustment as set forth in Article 4.3 [***].

     

    
      	
              12.4

            	
              Termination
                under Articles 12.2 or 12.3 shall discharge all obligations and
                liabilities of Frontier and Bombardier hereunder with respect to
                such
                delayed Aircraft (and all related undelivered items and services),
                Bombardier shall promptly repay to Frontier, and Bombardier’s sole
                liability and responsibility shall be limited to the repayment to
                Frontier, of all advance payments and Deposits for such Aircraft
                with
                interest at the Penalty Interest Rate bearing from the date such
                payment
                was made by Frontier.

            

    

     

    
      	
              12.5

            	
              The
                termination rights set forth in Articles 12.2 and 12.3 are exclusive
                of
                and in substitution for any and all other rights and remedies provided
                by
                law, contract or otherwise.

            

    

     

     

    
      
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      ARTICLE
        13.     NON-EXCUSABLE
        DELAY/FAILURE TO TAKE DELIVERY

    

     

    
      	
              13.1

            	
              If
                delivery of the Aircraft is delayed by causes not addressed under
                Article
                12 (a “Non-Excusable Delay”) [***], Bombardier shall pay Frontier, as
                liquidated damages and not as a penalty, damages in accordance with
                this
                Article 13. The amount of liquidated damages payable to Frontier
                shall be
                [***], subject to a maximum of [***] for any such delayed Aircraft.
                Frontier and Bombardier each acknowledge that the foregoing amounts
                of
                liquidated damages are reasonable in light of the circumstances of
                this
                Agreement.

            

    

     

    Upon
      recognition by Bombardier of the occurrence or anticipated occurrence of a
      Non-Excusable Delay, Bombardier will provide Notice thereof to Frontier together
      with the cause of such Non-Excusable Delay and a plan for recovery with, if
      applicable, an anticipated revised Readiness Date. 

     

    
      	
              13.2

            	
              The
                Base Price for any Aircraft subject to a Non-Excusable Delay shall
                not be
                adjusted for escalation as provided in Section 4.3 during the
                Non-Excusable Delay. [***]. 

            

    

     

    
      	
              13.3

            	
              Frontier
                will not have the right to refuse to take delivery of any Aircraft
                because
                of a Non-Excusable Delay unless the Non-Excusable Delay for such
                Aircraft
                [***] the Readiness Date initially notified to Frontier pursuant
                to
                Article 8.2. If Bombardier has not offered an Aircraft for inspection
                and
                acceptance before the end of [***], Frontier may terminate the Agreement
                only as to such Aircraft by giving Notice to Bombardier [***]. If,
                no such
                Notice has been given, Frontier will not have the right to refuse
                to take
                delivery of any Aircraft because of Non-Excusable Delay unless the
                Non-Excusable Delay for such Aircraft thereafter [***] following
                the
                Readiness Date initially notified to Frontier pursuant to Article
                8.2.
                Thereafter, if on or prior to the date that Bombardier offers such
                Aircraft for inspection and acceptance and Frontier either (a) elects
                to
                terminate this Agreement by delivery of Notice of its election to
                Bombardier with respect to such Aircraft or (b) Frontier otherwise
                refuses
                to take delivery of such Aircraft because of a Non-Excusable Delay,
                this
                Agreement shall automatically terminate as to such Aircraft and Bombardier
                shall, [***] pay to Frontier, as liquidated damages and not as a
                penalty,
                the amount of liquidated damages calculated under Article 13.1 [***].
                In
                addition, Bombardier shall promptly repay to Frontier all advance
                payments
                and Deposit paid for such Aircraft plus interest at the Penalty Interest
                Rate thereon from the date of receipt to the date of
                repayment.

            

    

     

    
      	
              13.4

            	
              The
                liquidated damages payable in accordance with Article 13.1 are exclusive
                of and in substitution for any and all other remedies provided by
                law with
                respect to the late delivery or non delivery of an Aircraft, and
                Frontier
                disclaims, waives, releases and renounces all other remedies including
                remedies for (a) any costs incurred by Frontier in securing temporary
                or
                permanent replacement aircraft, (b) any financing, tax, personnel,
                facility or other costs or damages incurred by Frontier relating
                to such
                late delivery of the Aircraft, including but not limited to expenses
                for
                pilot and ground crew training, maintenance facilities, scheduling
                and
                pilot time, or (c) any indirect, incidental or consequential damages,
                including without limitation loss of use, loss of revenue or loss
                of
                profit in connection with the same. Nothing herein shall be construed
                as a
                waiver by Frontier of or be deemed to negate or impair Frontier’s right to
                terminate this Agreement in accordance with the provisions of Articles
                12.2, 13.3 and 14 with respect to such Aircraft in connection with
                such
                late delivery or non delivery.

            

    

     

    
      
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          Airlines Holdings, Inc                                                                    21

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      14.     TERMINATION

     

    
      	
              14.1

            	
              Frontier
                may terminate this Agreement with respect to its obligation to purchase
                all or any of the undelivered Aircraft in the
                event:

            

    

     

    
      	 	
              (a)

            	
              Bombardier
                ceases doing business as a manufacturer of commercial aircraft or
                suspends
                substantially all of its operations, suspends, cancels or terminates
                the
                Q400 production program or enters receivership;
                or

            

    

     

    
      	 	
              (b)

            	
              Bombardier
                ceases to provide any aftermarket support for the Aircraft purchased;
                or

            

    

     

    
      	 	
              (c)

            	
              Bombardier
                is in default or breach of any other material term or condition of
                this
                Agreement and Bombardier does not cure such default or breach within
                [***]
                (or, with respect to a default or breach that cannot reasonably be
                cured
                within such [***]
                period, Bombardier shall not have commenced good faith efforts to
                cure the
                same, provided that the same must thereafter be cured within an additional
                [***]
                after
                receipt of notice from Frontier specifying such default or
                breach.

            

    

     

    
      	
              14.2

            	
              This
                Agreement may be terminated, in whole or in part, with respect to
                any or
                all of the Aircraft before the applicable Delivery Date by either
                party
                (the “terminating party”) by Notice to the other party (the “other party”)
                if:

            

    

     

    
      	 	
              (a)

            	
              the
                other party makes an assignment for the benefit of creditors or admits
                in
                writing its inability to pay its debts or generally does not pay
                its debts
                as they become due; or

            

    

     

    
      	 	
              (b)

            	
              a
                receiver or trustee is appointed for the other party or for substantially
                all of the other party’s assets and, if appointed without the other
                party’s consent, such appointment is not discharged or stayed within
                [***]
                thereafter; or

            

    

     

    
      	 	
              (c)

            	
              proceedings
                or action under any law relating to bankruptcy, insolvency or the
                reorganization or relief of debtors are instituted by or against
                the other
                party, and, if contested by the other party, are not dismissed or
                stayed
                [***]
                thereafter; or

            

    

     

    
      	 	
              (d)

            	
              any
                writ of attachment or execution or any similar process is issued
                or levied
                against the other party or any significant part of its property and
                is not
                released, stayed, bonded or vacated [***]
                after its issue or levy.

            

    

     

    
      	
              14.3

            	
              This
                Agreement may be terminated by Bombardier in whole or in part, before
                the
                Delivery Date with respect to any or all undelivered
                Aircraft

            

    

     

    
      	 	
              (a)

            	
              if
                Frontier ceases doing business as an ongoing concern, suspends
                substantially all of its operations or enters receivership;
                or

            

    

     

    
      	 	
              (b)

            	
              if
                Frontier is in default or breach of any other material term (including
                failure to take delivery of the Aircraft in accordance with Article
                8) or
                condition of this Agreement and Frontier does not cure such default
                or
                breach within [***]
                (or, with respect to a default or breach that cannot reasonably be
                cured
                within such [***]
                period, Frontier shall not have commenced good faith efforts to cure
                the

            

    

     

    
      
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          Airlines Holdings, Inc                                                                    22

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
 

    same,
      provided that the same must thereafter be cured within an additional
[***]
      after
      receipt of notice from Bombardier specifying such default or
      breach.

     

    
      	
              14.4

            	
              This
                Agreement may be terminated by Frontier in whole or in part with
                respect
                to all or any of the Aircraft, as applicable, only pursuant to Articles
                12, 13, 14.1 and 14.2. Frontier’s exclusive rights, remedies and recourse
                against Bombardier upon termination under Article 12 or Article 13
                are as
                set forth in Article 12 or Article 13 respectively. If Frontier terminates
                this Agreement pursuant to Article 14.1 or 14.2, Frontier shall be
                deemed
                to have terminated this Agreement in accordance with the provisions
                of
                Article 13.

            

    

     

    
      	
              14.5

            	
              In
                case of termination of this Agreement by Bombardier in whole or in
                part
                pursuant to this Article 14:

            

    

     

    
      	 	
              (a)

            	
              all
                rights which Frontier has under this Agreement or any interest or
                claim
                Frontier may have in or to any terminated Aircraft shall be null
                and void
                with immediate effect except as to any Aircraft not the subject of
                such
                termination; and

            

    

     

    
      	 	
              (b)

            	
              Bombardier
                may sell, lease or otherwise dispose of the terminated Aircraft to
                another
                party free of any claim by Frontier;
                and

            

    

     

    
      	 	
              (c)

            	
              Bombardier
                shall be entitled to recover from Frontier all costs, expenses, losses
                and
                damages incurred by Bombardier as a result of Frontier’s default as
                permitted by applicable law.

            

    

     

    
      	 	
              (d)

            	
              Frontier’s
                obligations under Articles 4, 11.3, 17 and 21 shall survive any
                termination.

            

    

     

    
      
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          Airlines Holdings, Inc                                                                    23

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      15.     NOTICES

     

    
      	
              15.1

            	
              Any
                Notice given under this Agreement shall be in writing and may be
                delivered
                by hand against written receipt, registered mail, facsimile providing
                reasonable proof of transmission or recognized international courier
                by
                the party giving the Notice and shall be addressed as
                follows:

            

    

     

    
      	 	
              (a)

            	
              to
                Bombardier:

            

    

     

    Bombardier
      Inc.

    Bombardier
      Aerospace Regional Aircraft

    123
      Garratt Boulevard

    Downsview,
      Ontario

    Canada

    M3K
      1Y5

    Attention:         
      Director
      of Contracts, the Americas

    Facsimile:         [***]

    

    (b)       
      to
      Frontier:

    

    Frontier
      Airlines Holdings Inc.

    7001
      Tower Road

    Denver,
      Colorado,

    80249-7312

    USA

    Attention:
      Paul H. Tate, Senior Vice President and Chief Financial Officer

    Facsimile:
      [***]

    

    
      	
              15.2

            	
              Notice
                given in accordance with Article 15.1 shall be deemed sufficiently
                given
                to by the addressees when received:

            

    

     

     

     

    
      
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      ARTICLE
        16.     INDEMNITY
        AGAINST INTELLECTUAL PROPERTY INFRINGEMENT

    

     

    
      	
              16.1

            	
              In
                the case of any actual or alleged infringement of any registered
                Canadian
                or United States Intellectual Property or, subject to the conditions
                and
                exceptions set forth below, any registered Intellectual Property
                issued
                under the laws of any other country in which Frontier from time to
                time
                may lawfully operate the Aircraft (“Other Intellectual Property”), by the
                Aircraft, or by any system, accessory, equipment or part installed
                in such
                Aircraft at the time title to such Aircraft passes to Frontier, Bombardier
                shall defend, indemnify, protect and hold harmless Frontier from
                and
                against all claims, suits, actions, liabilities, damages and costs
                resulting from the infringement, including any third party claims
                for
                indirect, incidental, consequential, or punitive damages (which include
                loss of revenue or loss of profit) and Bombardier shall, at its option
                and
                expense:

            

    

     

    
      	 	
              (a)

            	
              procure
                for Frontier the right under such patent to use such system, accessory,
                equipment or part; or

            

    

     

    
      	 	
              (b)

            	
              replace
                such system, accessory, equipment or part with one of the similar
                nature
                and quality that is non-infringing and otherwise in compliance with
                the
                requirements of this Agreement; or

            

    

     

    
      	 	
              (c)

            	
              modify
                such system, accessory, equipment or part to make same non-infringing
                in a
                manner such as to keep it otherwise in compliance with the requirements
                of
                this Agreement.

            

    

     

    Bombardier’s
      obligation hereunder shall extend to Other Intellectual Property only if from
      the time of design of the Aircraft, system, accessory, equipment or part until
      the alleged infringement claims are resolved:

    

    
      	 	
              (a)

            	
              such
                other country and the country in which the Aircraft is permanently
                registered have ratified and adhered to and are at the time of the
                actual
                or alleged infringement contracting parties to the Chicago Convention
                on
                International Civil Aviation of December 7, 1944 and are fully entitled
                to
                all benefits of Article 27 thereof;
                and

            

    

     

    
      	 	
              (b)

            	
              such
                other country and the country of registration shall each have been
                a party
                to the International Convention for the Protection of Industrial
                Property
                (Paris Convention) or have enacted patent laws which recognize and
                give
                adequate protection to inventions made by the nationals of other
                countries
                which have ratified, adhered to and are contracting parties to both
                of the
                forgoing conventions.

            

    

     

    
      	
              16.2

            	
              The
                foregoing indemnity does not apply to equipment provided by Frontier
                to
                Bombardier, or to avionics, engines or any system, accessory, equipment
                or
                part that was not manufactured to Bombardier’s detailed design or to any
                system, accessory, equipment or part manufactured by a third party
                to
                Bombardier’s detailed design without Bombardier’s
                authorization.

            

    

     

    
      	
              16.3

            	
              Frontier’s
                remedy and Bombardier’s obligation and liability under this Article are
                conditional upon (i) Frontier giving Bombardier written notice within
                [***] after Frontier receives notice of a suit or action against
                Frontier
                alleging infringement or within [***] after Frontier receives any
                other
                written claim of infringement (ii) Frontier
                uses

            

    

     

    
      
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          Airlines Holdings, Inc                                                                    25

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
 

    reasonable
      efforts in full cooperation with Bombardier and at Bombardier’s sole cost to
      reduce or mitigate any such expenses, damages, costs or royalties involved,
      and
      (iii) Frontier furnishes promptly to Bombardier all data, papers and records
      in
      its possession or control necessary or useful to resist and defend against
      such
      claim or suit. Bombardier may at its option conduct negotiations with any party
      claiming infringement and may intervene in any suit or action. Whether or not
      Bombardier intervenes, Bombardier shall be entitled at any stage of the
      proceedings to assume or control the defense of any claim. Frontier’s remedy and
      Bombardier’s obligation and liability are further conditional upon Bombardier’s
      prior approval of Frontier’s payment or assumption of any liabilities, expenses,
      damages, royalties or costs for which Bombardier may be held liable or
      responsible. Frontier must approve any settlement that enjoins Frontier or
      creates an obligation or liability for Frontier.

     

    
      	
              16.4

            	
              The
                indemnity, obligations and liabilities of Bombardier and remedies
                of
                Frontier set out in this article are exclusive and accepted by Frontier
                to
                be in lieu of and in substitution for, and Frontier hereby waives,
                releases and renounces, all other indemnities, obligations and liabilities
                of Bombardier and of its affiliates and all other rights, remedies
                and
                claims, including claims for damages, direct, indirect, incidental,
                consequential, or punitive of Frontier against Bombardier and its
                affiliates express or implied, arising by law or otherwise, with
                respect
                to any actual or alleged Intellectual Property infringement of any
                kind by
                the aircraft or any installed system, accessory, equipment or
                part.

            

    

     

     

     

    
      
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          Airlines Holdings, Inc                                                                    26

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      17.     LIMITATION
      OF LIABILITY; DISCLAIMER AND RELEASE; INDEMNIFICATION

     

    
      	
              17.1

            	
              IN
                NO EVENT WILL EITHER PARTY OR ANY OF EITHER PARTY’S AFFILIATES HAVE ANY
                OBLIGATION OR LIABILITY (AT LAW OR IN EQUITY), WHETHER ARISING IN
                CONTRACT, WARRANTY (INCLUDING ANY WARRANTY OF MERCHANTABILITY OR
                FITNESS
                FOR A PARTICULAR PURPOSE), IN TORT (INCLUDING THE ACTIVE, PASSIVE
                OR
                IMPUTED NEGLIGENCE OR STRICT PRODUCTS LIABILITY, OR OTHERWISE) FOR
                LOSS OF
                USE, REVENUE OR PROFIT OR FOR ANY OTHER INDIRECT, INCIDENTAL,
                CONSEQUENTIAL OR PUNITIVE DAMAGES OF ANY KIND OR NATURE
                WHATSOEVER.

            

    

     

    
      	
              17.2

            	
              THE
                WARRANTIES, OBLIGATIONS AND LIABILITIES OF BOMBARDIER AND THE REMEDIES
                OF
                FRONTIER EXPRESSLY PROVIDED IN THIS AGREEMENT, [***] THE BILL OF
                SALE,
                ANNEX A AND ANNEX B EXCLUSIVELY SET FORTH BOMBARDIER’S OBLIGATIONS WITH
                RESPECT TO ANY NON-CONFORMANCE OF THE AIRCRAFT WITH THE SPECIFICATION
                OR
                ANY DEFECT IN THE AIRCRAFT, AND ARE ACCEPTED BY FRONTIER TO BE ITS
                EXCLUSIVE REMEDY AND BOMBARDIER EXPRESSLY DISCLAIMS AND FRONTIER
                HEREBY
                WAIVES, RELEASES AND RENOUNCES ALL OTHER REMEDIES, WARRANTIES, GUARANTEES,
                OBLIGATIONS, REPRESENTATIONS OR LIABILITIES, EXPRESS OR IMPLIED,
                OF
                BOMBARDIER AND ITS AFFILIATES WITH RESPECT TO EACH AIRCRAFT OR PART
                THEREOF, PRODUCT, DOCUMENT OR SERVICE DELIVERED OR PROVIDED UNDER
                THIS
                AGREEMENT, ARISING IN FACT, IN LAW, IN CONTRACT, IN TORT, OR OTHERWISE,
                INCLUDING:

            

    

     

    
      	 	
              A.

            	
              ANY
                IMPLIED WARRANTY OR CONDITION OF MERCHANTABILITY OR FITNESS FOR A
                PARTICULAR PURPOSE;

            

    

     

    
      	 	
              B.

            	
              ANY
                IMPLIED WARRANTY OR CONDITION ARISING FROM COURSE OF PERFORMANCE,
                COURSE
                OF DEALING OR USAGE OF TRADE;

            

    

     

    
      	 	
              C.

            	
              ANY
                OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR
                NOT
                ARISING FROM THE ACTIVE, PASSIVE OR IMPUTED NEGLIGENCE OR STRICT
                PRODUCTS
                LIABILITY OF BOMBARDIER OR ITS AFFILIATES;
                AND

            

    

     

    
      	 	
              D.

            	
              ANY
                OBLIGATION, LIABILITY OR RESPONSIBILITY FOR LOSS OF OR DAMAGE TO
                ANY
                AIRCRAFT SUBJECT TO THIS AGREEMENT.

            

    

     

    
      	
              17.3

            	
              FRONTIER
                (FOR ITSELF AND ON BEHALF OF ITS SUCCESSORS AND ASSIGNS) AGREES TO
                DEFEND,
                INDEMNIFY AND HOLD HARMLESS BOMBARDIER, ITS AFFILIATES AND THEIR
                RESPECTIVE OFFICERS, DIRECTORS, AGENTS, EMPLOYEES AND CONTRACTORS,
                AND
                EACH OF THEM, FOR ALL CLAIMS FOR LOSS OF OR DAMAGE TO PROPERTY, INCLUDING
                THE AIRCRAFT, OR FOR INJURIES TO OR DEATH OF ANY AND ALL PERSONS
                RESULTING, DIRECTLY OR INDIRECTLY, FROM THE USE OR OPERATION OF THE
                AIRCRAFT AFTER ACCEPTANCE AND DELIVERY OF THE AIRCRAFT TO FRONTIER,
                HOWEVER ARISING (WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE)
                AND WHETHER OR NOT ATTRIBUTABLE TO ANY ACT OR OMISSION
                OF

            

    

     

    
      
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          Airlines Holdings, Inc                                                                    27

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
 

    BOMBARDIER
      OR ITS AFFILIATES OR THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, EMPLOYEES
      AND
      CONTRACTORS. THE ABOVE AGREEMENT TO DEFEND INDEMNIFY AND HOLD HARMLESS DOES
      NOT
      APPLY TO LIABILITY TO THIRD PARTIES FOR DEATH OR INJURY ARISING OUT OF AN
      ACCIDENT TO THE EXTENT CAUSED BY [***] A DEFECT IN THE DESIGN OR MANUFACTURE
      OF
      THE AIRCRAFT OR PART THEREOF.

     

     

     

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    28

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      18.     ASSIGNMENT

     

    
      	
              18.1

            	
              Frontier
                may, assign, sell, transfer or dispose of (in whole or in part) any
                of its
                rights and obligations under this Agreement, including its right
                to
                purchase any Aircraft to:

            

    

     

    
      	
              (a)

            	
              an
                entity resulting from a merger, reorganization or acquisition of
                Frontier,
                or an entity acquiring all or substantially all of Frontier’s assets.
                Additionally, should Frontier contract with a third party to operate
                the
                Aircraft, Frontier may assign all of its rights and obligations under
                this
                Agreement to such third party operator, provided said third party
                agrees
                in writing to be bound by all the terms and conditions of the Agreement
                and Frontier remains jointly and severally liable with the third
                party for
                the performance of its obligations under the Agreement;
                and

            

    

     

    
      	
              (b)

            	
              [***];
                and

            

    

     

    
      	
              (c)

            	
              to
                a third party in order (and such right to assign will include business
                terms, entitlements, warranties, guarantees and credit memoranda
                in their
                entirety) to facilitate a method of leasing, financing or refinancing
                the
                purchase of the Aircraft, including without limitation, pre-delivery
                assignment related to Frontier’s desire to arrange elements of the
                financing for payments pursuant to Article 5.0 herein;
                and

            

    

     

    following
      any such assignment, such assignee shall have all the rights, privileges and
      obligations of Frontier as if such assignee had been the originally named
      purchaser of the Aircraft under this Agreement.

     

    
      	
              18.2

            	
              Either
                party may assign, sell, transfer or dispose of (in whole or in part)
                any
                of its rights and obligations hereunder to a wholly owned Subsidiary
                provided that there is no increase to the liability and/or responsibility
                of the non-assigning party and that the assigning party remains jointly
                and severally liable with any assignee for the performance of its
                obligations under this Agreement.

            

    

     

    
      	
              18.3

            	
              Bombardier
                may assign any of its rights to receive money hereunder without the
                prior
                consent of Frontier.

            

    

    
    

    
      
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          Airlines Holdings, Inc                                                                    29

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

     

    ARTICLE
      19.     SUCCESSORS

     

    
      	
              19.1

            	
              This
                Agreement shall inure to the benefit of and be binding upon each
                of
                Bombardier and Frontier and their respective successors and permitted
                assigns.

            

    

     

     

     

    
      
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          Airlines Holdings, Inc                                                                    30

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      20.     APPLICABLE
      LAWS

     

    
      	
              20.1

            	
              THIS
                AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN
                ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
                CONTRACTS
                MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD
                FOR
                CONFLICT OF LAW PRINCIPLES (OTHER THAN THE PROVISIONS OF SECTION
                5-1401 OF
                THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
                YORK).

            

    

     

     

     

    
 

    
      
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          Airlines Holdings, Inc                                                                    31

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      21.     CONFIDENTIAL
      NATURE OF AGREEMENT

     

    
      	
              21.1

            	
              This
                Agreement and its terms are confidential between the parties and
                shall
                not, without the prior written consent of the other party, be disclosed
                by
                either party (or its directors, officers, employees or agents) in
                whole or
                in part to any other person or body except as may be necessary for
                either
                party to carry out its obligations under this Agreement or as necessary
                to
                comply with or related to any disclosures in public documents, including
                Securities and Exchange Commission filings or other filings required
                by
                other state or federal regulatory
                agencies.

            

    

     

    In
      the
      event Frontier now or hereafter has a class of securities registered under
      Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended (the
      “Exchange Act”), or is subject to the reporting requirements of Section 15(d)
      thereof, or Frontier proposes to effect an offering of securities registered
      under the Securities Act of 1933, as amended (the “Securities Act”), and in any
      such case, Frontier reasonably determines, based upon the advice of counsel
      that
      this Agreement is required to be filed as an exhibit to a registration statement
      under the Securities Act or a periodic report under the Exchange Act, Frontier
      shall notify Bombardier, by written notice, at least [***]
      (or
      such shorter time period as may be imposed on Frontier in order for it to comply
      with the Securities Act or Exchange Act) prior to the date of such anticipated
      filing of such determination and the reasons therefor, and shall use its best
      efforts to work with Bombardier to prepare and file with the Securities and
      Exchange Commission (the “Commission”) a request for confidential treatment
      under the Exchange Act or under the Securities Act, as the case may be, with
      respect to information in this Agreement and such other information as
      Bombardier may reasonably request. Subject to compliance with the foregoing,
      and
      notwithstanding the other provisions of this Article, portions of this Agreement
      may be filed as exhibits to such registration statement or periodic report
      to
      the extent required by the Commission and such filing shall not constitute
      a
      breach hereof by Frontier.

     

    
      	
              21.2

            	
              Except
                as may be reasonably required for the normal operation, maintenance,
                overhaul and repair of the Aircraft, Frontier shall hold confidential
                all
                technical data and information supplied by or on behalf of Bombardier.
                Frontier shall not reproduce any technical data or information or
                divulge
                the same to any third party without the prior written consent of
                Bombardier.

            

    

     

    
      	
              21.3

            	
              Neither
                party may announce the signing of this Agreement by means of a notice
                to
                the press without the prior consent of the other party, such consent
                not
                to be unreasonably withheld, provided that the content and date of
                any
                such notice has been agreed to by the other
                party.

            

    

     

    
      	
              21.4

            	
              This
                Article 21 shall survive any termination of this
                Agreement.

            

    

     

    

    
      
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          Airlines Holdings, Inc                                                                    32

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      22.     AGREEMENT

     

    
      	
              22.1

            	
              This
                Agreement constitutes the entire agreement between Bombardier and
                Frontier
                and supersedes and cancels all prior agreements, negotiations, drafts,
                representations and communications, whether oral or written, between
                Bombardier and Frontier or their respective agents, with respect
                to or in
                connection with the subject matter of this
                Agreement.

            

    

     

    
      	
              22.2

            	
              No
                agreement or understanding varying or supplementing the terms and
                conditions hereof shall be binding on either Bombardier or Frontier
                unless
                an amendment to this Agreement is issued and duly signed by their
                respective authorized representatives pursuant to the provisions
                of this
                Article.

            

    

     

    
      	
              22.3

            	
              If
                any of the provisions of this Agreement are for any reason declared
                by
                judgment of a court of competent jurisdiction to be unenforceable
                or
                ineffective, those provisions shall be deemed severable from the
                other
                provisions of this Agreement and the remainder of this Agreement
                shall
                remain in full force and effect.

            

    

     

    
      	
              22.4

            	
              Whether
                or not the transactions contemplated hereby are consummated, each
                party
                hereto agrees to pay its own costs and expenses incurred in connection
                with the preparation, execution and delivery of this Agreement and
                any
                other documents delivered in connection herewith, including without
                limitation the fees, expenses and disbursements of counsel, except
                as
                otherwise expressly set forth
                herein.

            

    

     

    
      	
              22.5

            	
              Each
                party agrees to indemnify and hold the other harmless from and against
                any
                and all claims, suits, damages, costs and expenses (including, but
                not
                limited to reasonable attorney’s fees and disbursements) asserted by any
                agent, broker or other third party for any commission or compensation
                of
                any nature whatsoever based upon the purchase and/or sale of the
                Aircraft,
                if such claim, damage, cost or expense arises out of any action or
                alleged
                action by the indemnifying party, its employees or agents. It is
                understood and agreed between the parties that this Agreement has
                been
                concluded by direct negotiation without any intermediaries or agents.
                Each
                party hereby represents and warrants to the other that it has not
                been
                paid, agreed to pay or caused to be paid directly or indirectly in
                any
                form, any commission, percentage, contingent fee, brokerage or other
                similar payments of any kind, in connection with this
                Agreement.

            

    

     

    
      	
              22.6

            	
              This
                Agreement shall be binding on and shall inure to the benefit of
                Bombardier, Frontier and their respective permitted successors and
                assigns.

            

    

     

    
      	
              22.7

            	
              This
                Agreement may be executed simultaneously in two or more counterparts
                and
                by different parties hereto on separate counterparts, each of which
                shall
                be deemed an original, but all of which together shall constitute
                one and
                the same instrument.

            

    

     

    
      	
              22.8

            	
              THE
                BENEFIT OF THE WAIVER, RELEASE, RENUNCIATION AND EXCLUSION OF LIABILITY
                IN
                EACH OF ARTICLES 8.9, 11.3, 12, 13, 16.4 AND 17, ANNEX A ARTICLE
                2.9.4.5
                AND ANNEX B ARTICLE 5.1 EXTENDS ALSO TO THE OTHER DIVISIONS, OTHER
                SUBSIDIARIES, AND OTHER AFFILIATES OF BOMBARDIER INC. (COLLECTIVELY
                THE
                “BOMBARDIER GROUP”) AND TO THE OFFICERS, DIRECTORS, EMPLOYEES AND
                REPRESENTATIVES OF THE BOMBARDIER

            

    

     

    
      
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          Airlines Holdings, Inc                                                                    33

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
 

    GROUP,
      ON WHOSE BEHALF AND FOR WHOSE BENEFIT BOMBARDIER IS, FOR PURPOSES OF THIS
      ARTICLE 22.5, ACTING AS AGENT AND TRUSTEE.

     

    
      	
              22.9

            	
              Bombardier
                and Frontier confirm to each other they have each obtained the required
                authorizations and fulfilled any applicable conditions to enable
                each of
                them to enter into this Agreement.

            

    

     

    
      	
              22.10

            	
              Frontier
                and Bombardier agree that this Agreement has been the subject of
                discussion and negotiation and is fully understood by the parties
                hereto
                and that the price of the Aircraft and the other mutual agreements
                of the
                parties set forth herein were arrived at in consideration of the
                provisions contained herein including in Articles 11.3, 13.2, 13.3,
                14.3,
                16.4 and 17.

            

    

     

    22.11  
      [***].

     

     

     

    
 

    
      
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          Airlines Holdings, Inc                                                                    34

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF this Agreement was signed on the date written
      hereof:

    

    
      	
              Yours
                very truly,

            	
              Acknowledged
                and Accepted

            
	 	 
	 	 
	
              BOMBARDIER
                INC

            	
              Frontier
                Airlines Holdings, Inc.

            
	
              Bombardier
                Aerospace

            	 
	
              Regional
                Aircraft

            	 
	 	 
	 	 
	 	 
	 	 
	
              (SIGNED
                ON FILE)

            	
              (SIGNED
                ON FILE)

            
	 	 
	                                                              
              	                                                              
	
              Name:
                Ross Gray

            	
              Name:
                Paul H.Tate

            
	
              Title:
                Director, Contracts

            	
              Title:
                Senior Vice President Finance &

            
	 	
                      
                Chief Financial Officer

            
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	
              (SIGNED
                ON FILE)

            	
              (SIGNED
                ON FILE)

            
	                                                              	                                                              
	
              Name:
                Marianella de la Barrera

            	
              Name:
                Jeff S. Potter

            
	
              Title:
                Senior Account Executive, Contracts

            	
              Title:
                President & Chief Executive
                Officer

            

    

    

    
      
        
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            Airlines Holdings, Inc                                                                    35

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      I

    

    

    

    APPENDIX
      I ECONOMIC ADJUSTMENT FORMULA

     

    1.   Pursuant
      to the provision of Article 4 of the Agreement, economic adjustment will be
      calculated using the following Economic Adjustment Formula:

     

    PA
      =
[***]

    Where:

    

    

    [***]
      

     

    
      2.          In
        the
        Economic Adjustment Formula:  

    

     

    
      
        	
                N

              	
                =

              	 	
                Aircraft
                  Delivery Year

              

      

       

      
        	
                PA

              	
                =

              	 	
                Aircraft
                  Price Adjustment; 

              

      

    

    

      
        	
                P0

              	
                =

              	 	
                Base
                  Price of the Aircraft;

              

      

    

     

    
      	
              P1

            	
              =

            	 	
              Base
                Aircraft Purchase Price adjusted to the time of delivery of the Aircraft
                to Frontier using the formula set forth above;

            

    

    

    L1   =       
      the
      delivery year index for Canadian labour obtained by calculating the arithmetic
      average of the labour indices published by Statistics Canada in the North
      American Industrial Classification System (N.A.I.C.S.) Code 3364 for Average
      Hourly Earnings (including overtime) for Aerospace Products and Parts
      manufacturing (Canada), for the fifth, sixth, and seventh months prior to the
      month of delivery of the Aircraft; 

    

    L0       
      =       
      TBD,
      being the index for labour obtained by calculating the arithmetic average of
      the
      labour indices published by Statistics Canada in the North American Industrial
      Classification System (N.A.I.C.S.) Code 3364 for Average Hourly Earnings
      (including overtime) for Aerospace Products and Parts manufacturing (Canada),
      for the fifth, sixth, and seventh months prior to the month of the Base Price
      of
      the Aircraft; 

    

    E1       
      =    the
      delivery year index for United States (“U.S.”) labour obtained by calculating
      the arithmetic average of the labour indices published by the U.S. Department
      of
      Labor, Bureau of Labor Statistics in the North American Industrial
      Classification System (N.A.I.C.S.) Code 3364 for Average Hourly Earnings of
      Production Workers for Manufacturing, Aerospace products and parts (US), for
      the
      fifth, sixth, and seventh months prior to the month of delivery of the Aircraft;
      

    

    E0       
      =    TBD,
      being the U.S. labour index obtained by calculating the arithmetic average
      of
      the U.S. labour indices published by the U.S. Department of Labor, Bureau of
      Labor

    
      
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          Airlines Holdings, Inc                                                                    36

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
 

    Statistics
      in the North American Industrial Classification System (N.A.I.C.S.) Code 3364
      for Average Hourly Earnings of Production Workers for Manufacturing, Aerospace
      products and parts (US), for the fifth, sixth, and seventh months prior to
      the
      month of the Base Price of the Aircraft; 

    

    M1       =    the
      delivery year index for material obtained by calculating the arithmetic average
      of the material indices published by the U.S. Department of Labor, Bureau of
      Labor Statistics in Producer Prices and Price Indices for Code 10 Metals and
      Metals Products, for the fifth, sixth, and seventh months prior to the month
      of
      delivery of the Aircraft; 

    

    M0      
      =    TBD,
      being the material index obtained by calculating the arithmetic average of
      the
      material indices published by the U.S. Department of Labor, Bureau of Labor
      Statistics in Producer Prices and Price Indices for Code 10 Metals and Metals
      Products for the fifth, sixth, and seventh months prior to the month of the
      Base
      Price of the Aircraft; 

    

    I1        
      =     the
      delivery year index for material obtained by calculating as the arithmetic
      average of the material indices published by the U.S. Department of Labor in
      Material (U.S.) Industrial Commodities, Producer Price Index, Table 6, for
      the
      fifth, sixth, and seventh months prior to the month of delivery of the Aircraft;
      

    

    I0        
      =    TBD,
      being the index for material obtained by calculating the arithmetic average
      of
      the material indices published by the U.S. Department of Labor in Material
      (U.S.) Industrial Commodities, Producer Price Index, Table 6 for the fifth,
      sixth, and seventh months prior to the month of the Base Price of the Aircraft.
      

    

    3.   In
      the
      calculation of the Aircraft Price Adjustment: 

    

    a.        
      all
      indices used in the calculations made to determine the factor to apply to
      P0,
      and
      the calculations themselves, will be to four significant digits;
      and

    

    b.        
      the
      Aircraft Price Adjustment will be corrected to the nearest dollar. 

    

    4.   In
      the
      event that at the time of Aircraft delivery Bombardier is unable to determine
      the Aircraft Price Adjustment due to the unavailability of L1,
      E1,
      M1,
      or
      I1  then
      Bombardier shall use the last provisionally published indices, and in the event
      that provisional indices are not available, Bombardier shall extrapolate using
      the most recent three (3) months of published final indices available to
      calculate the Aircraft Purchase Price which shall then become the final price.
      

    

    5.   In
      the
      event that any index used in the Economic Adjustment Formula is discontinued
      or
      restated, or if the methodology employed by the relevant authority in
      determining the index is substantially revised, then the index shall be replaced
      or amended in accordance with the revised index published by the relevant
      authority. 

    

    

    
      
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          Airlines Holdings, Inc                                                                    37

        
        

      

      
        
        

        
          

        

      

      
        
        

      

     

    
 

    

    APPENDIX
      II

    

    DELIVERY
      SCHEDULE

    

    

     

    
 

    
      	
               Aircraft

            	 	 Scheduled
              Delivery Month
	 	 	 
	 First
              Aircraft 	 	 May
              2007
	 Second
              Aircraft	 	 July
              2007
	 Third
              Aircraft	 	 August
              2007
	 Fourth
              Aircraft	 	 September
              2007
	 Fifth
              Aircraft	 	 October
              2007
	 Sixth
              Aircraft	 	 October
              2007
	
               Seventh
                Aircraft

            	 	 November
              2007
	 Eight
              Aircraft	 	 November
              2007
	 Ninth
              Aircraft	 	 December
              2007
	 Tenth
              Aircraft	 	 December
              2007

    

    

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    38

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      III

    

    TYPE
      SPECIFICATION

    

    DHC-8-400:

    DETAIL
      SPECIFICATION

    

    Number
      DS8-400 Revision 1, Amendment NC

    

    April
      16, 2002

    

     

     

    
 

    
      
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          Airlines Holdings, Inc                                                                    39

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    APPENDIX
      IV

    

    BUYER
      SELECTED OPTIONAL FEATURES

     

    
      	
              CR

              ReferenceNumber
                

            	
              Optional
                Features 

              Description

            	
              Base
                Price 

              in
                Jan. 06

               USD

            
	 	 	 
	
              803CH00189

            	
              AFM
                Supplement - Take-off With Bleed ‘On’ for 10 Degrees Flap Setting
                (#61)

            	
              [***]

            
	
              803SO90021

            	
              Increased
                Tailwind Operation to 20 Knots (AFM Supplement #3)

            	
              [***]

            
	
              803SO90027

            	
              High
                Gross Weight (64,500 lb / 29,257 kg MTOW)

            	
              [***]

            
	
              803SO90030

            	
              Reduced
                Propeller RPM Landing (AFM Supplement #39)

            	
              [***]

            
	
              803SO90036

            	
              2
                X Max.Take-Off Power (AFM Supplement #46)

            	
              [***]

            
	
              803SO90037

            	
              AFM
                Supplement - Cat 1 Coupled Flap 35 Approach (#75)

            	
              [***]

            
	
              811CH00717

            	
              Exterior
                Paint Scheme - Aluminized Paint Applied To Belly Of
                Aircraft

            	
              [***]

            
	
              811CH00791

            	
              Frontier
                - Max load limit labels

            	
              [***]

            
	
              811SO90046

            	
              Paint
                Scheme - Basic

            	
              [***]

            
	
              821SO90061

            	
              Ground
                Air Conditioning Cart Connection *USE 90060

            	
              [***]

            
	
              822SO90387

            	
              AFCS
                - Heading Knobs Coupled Left & Right

            	
              [***]

            
	
              823SO90086

            	
              VHF
                Comm - Dual 8.33 KHz (Thomson)

            	
              [***]

            
	
              823SO90090

            	
              Announcement
                & Music System (Team DPAS4)

            	
              [***]

            
	
              824CH00091

            	
              Batteries
                - 3 40 AMP configuration - FWD Fuse S400

            	
              [***]

            
	
              825CH01330-08

            	
              Aft
                Draft Bulkhead - LH & RH, Including Curtain

            	
              [***]

            
	
              825CH01338

            	
              Interior
                - Décor, Type Spec Fabrics

            	
              [***]

            
	
              825CH01340

            	
              Type
                Spec 91 Ft3 Fwd RHS Baggage Compartment

            	
              [***]

            
	
              825CH01365

            	
              Equipment/Furnishings
                - Buffet Galley - Type Spec - Right Hand Aft Facing Galley (G1) -
                S400

            	
              [***]

            
	
              825CH01461-01

            	
              PAX
                Seats - Deletion Of Ashtrays (Includes ‘No Smoking’ On) 

            	
              [***]

            
	
              825CH02364

            	
              Frontier
                cabin layout

            	
              [***]

            
	
              825CH02365

            	
              Aft
                Straight bulkhead with single F/A seat and F/A Handset

            	
              [***]

            
	
              825SO90115-02

            	
              Flight
                Attendant Seats - Leather Dress Covers 

            	
              [***]

            
	
              825SO90135

            	
              Wash
                Water System in Lavatory

            	
              [***]

            
	
              825SO90137-01

            	
              Stowage
                Unit - ATLAS Std (Each)

            	
              [***]

            
	
              825SO90149-74

            	
              Passenger
                Seats - Recline Feature

            	
              [***]

            
	
              825SO90150-74

            	
              Passenger
                Seats - Leather Dress Covers 

            	
              [***]

            
	
              825SO90301

            	
              Baggage
                Divider Nets & Posts, Aft Compartment 

            	
              [***]

            
	
              825SO90302-74

            	
              Passenger
                Seats - Additional Economy Passenger Seating (B/E Aero Model
                925,)

            	
              [***]

            
	
              825SO90389

            	
              Galley
                - Wardrobe Insert (Provisions for 1 Half Trolley and 1
                S.U.)

            	
              [***]

            
	
              825SO90456

            	
              Reinforced
                Flight Deck Door (FAA)

            	
              [***]

            

    

     

     

    
      
        
          PA
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          Frontier
            Airlines Holdings, Inc                                                                    40

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

     

    
      	
              825SO90459

            	
              HUD
                compatible sun visors -flight deck

            	
              [***]

            
	
              825SO90467

            	
              Trolley
                Storage - Fwd Baggage Compartment Stowage Unit (Provisions for 5
                Half
                Trolleys)

            	
              [***]

            
	
              825SO90468-03

            	
              Trolley
                - ATLAS Std Half-Size 

            	
              [***]

            
	
              831CH00072-01

            	
              EGPWS
                - Altitude Callouts, Mode 6 - Set Comprising 2500 - 500 - Minimums
                - 100 -
                50 - 40 - 30 - 20 - 10 Feet (AGL)

            	
              [***]

            
	
              831SO70185

            	
              FAR
                121.344 Requirement - Q400 - 88 Parameter Installation

            	
              [***]

            
	
              832CH00028

            	
              Cockpit
                - Nose Gear Lock Indicator

            	
              [***]

            
	
              833SO90188

            	
              Tail
                Logo Lights

            	
              [***]

            
	
              834CH00559

            	
              VHF
                Comm - Provisions for 3rd VHF Radio (With Level “A” Certified
                Software)

            	
              [***]

            
	
              834SO70216

            	
              Radio
                Altimeter - Dual Collins ALT-4000

            	
              [***]

            
	
              834SO70225

            	
              Indication
                - Single Cue Command on EADI

            	
              [***]

            
	
              834SO70230

            	
              Mode
                S Level 2 Transponder with Enhanced Surveillance

            	
              [***]

            
	
              834SO90207

            	
              HGS
                - CAT III Capable installed by STC (FDI)

            	
              [***]

            
	
              834SO90209

            	
              HGS
                - CAT IIIa Partial Provisions For RCFDI STC

            	
              [***]

            
	
              834SO90926

            	
              FMS
                - Dual with GPS(Universal UNS-1E with SCN802.2)

            	
              [***]

            
	
              834SO90930

            	
              Weather
                Radar - Honeywell Primus P-660

            	
              [***]

            
	
              835CH00937

            	
              Emergency
                Equipment - Increased Capacity Crew Fixed O2 Cylinder With Onboard
                Charging

            	
              [***]

            
	
              835SO90245

            	
              Emergency
                Equipment - PBE In Cabin (Puritan Bennett, Qty 3)

            	
              [***]

            
	
              839SO90316

            	
              Alternate
                Symbology Indication, Imperial (PFD & MFD Displays)

            	
              [***]

            
	
              849SO90267

            	
              APU
                Louvered Inlet Cover

            	
              [***]

            
	
              853CH00128

            	
              Cockpit
                - Center Console Extension

            	
              [***]

            
	
               

            	
               

            	
               

            
	
              STC

            	
              STC
                Installation

            	 
	 	
              Voyageur
                Q400 70 CuFt STC Port Side Installation

            	
              [***]

            
	
               

            	
               

            	
               

            
	
               

            	
              Total
                Buyer Selected Technical Features

            	
              [***]

            
	 	 	 
	
              ANAC

            	
              At
                No Additional Charge

            	 
	
              STD

            	
              Standard

            	 
	
              STC

            	
              Supplemental
                Type Certificate

            	 

    

    

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    41

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      V - FRONTIER INFORMATION/DUE DATES

    

    

    
      	
              FRONTIER
                INFORMATION

            	
              DUE
                DATES 

              AIRCRAFT
                1-4

            	
              DUE
                DATES 

              AIRCRAFT
                5-10

            
	
              Customized
                Paint Scheme.

            	
              Nine
                (9) months prior to delivery of the First Aircraft.

               

            	
              Nine
                (9) months prior to delivery of the Fifth Aircraft.

            
	 	 	 
	
              Interior
                Décor - Standard Materials and Combinations.

            	
              Nine
                (9) months prior to delivery of the First Aircraft 

            	
              Nine
                (9) months prior to delivery of the Fifth Aircraft 

            
	
              Interior
                Décor - Standard Materials, Custom Combinations.

            	
              Nine
                (9) months prior to delivery of the First applicable
                Aircraft.

            	
              Twelve
                (12) months prior to delivery of the first applicable
                Aircraft.

            
	
              Interior
                Décor -Custom Materials, Custom Combinations.

            	
              Nine
                (9) months prior to delivery of the First applicable
                Aircraft.

            	
              Fifteen
                (15) months prior to delivery of the first applicable
                Aircraft.

            
	 	 	 
	
              Placards,
                Markings, Labels and Translations.

            	
              Nine
                (9) months prior to delivery of the First Aircraft.

            	
              Nine
                (9) months prior to delivery of the Fifth Aircraft.

            
	 	 	 
	
              Emergency
                Equipment - Standard Selection/Locations.

            	
              Nine
                (9) months prior to delivery of the First Aircraft.

            	
              Nine
                (9) months prior to delivery of the Fifth Aircraft.

            
	
              Emergency
                Equipment -Custom Selection/Locations.

            	
              Nine
                (9) months prior to delivery of the First applicable
                Aircraft.

            	
              Twelve
                (12) months prior to delivery of the first applicable
                Aircraft.

            
	 	 	 
	
              Aircraft
                Registration Number(s).

            	
              Six
                (6) months prior to delivery of each Aircraft.

            	
              Six
                (6) months prior to delivery of each Aircraft.

            
	 	 	 
	
              Mode
                S Transponder Octal Code(s), as applicable.

            	
              Six
                (6) months prior to delivery of each Aircraft.

            	
              Six
                (6) months prior to delivery of each Aircraft.

            
	 	 	 
	
              SELCAL
                Code(s), as applicable.

            	
              Six
                (6) months prior to delivery of each Aircraft.

            	
              Six
                (6) months prior to delivery of each Aircraft.

            
	 	 	 
	
              GPWS
                Audio Call-out (Mode 6) Codes, as applicable.

            	
              Six
                (6) months prior to delivery of each Aircraft.

            	
              Six
                (6) months prior to delivery of each
                Aircraft.

            

    

    

    
      
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          -581

        Frontier
          Airlines Holdings, Inc                                                                    42

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    FORM
      “A” TO APPENDIX V

    

    FORM
      “A” TO APPENDIX V FRONTIER’S CUSTOMIZED PAINT SCHEME

    

    

    

    

    

                                             
      Frontier Airlines, Inc..           hereby
      approves the attached Customized Paint Scheme.

    

    

    Dated
      this ___ day of ______________ 200X.

    

    

    

    

    

    by:
      _________________________________

    Name:

    Title:

    

    

    Copy
      to: Contracts

    

    

    

    
      
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          -581

        Frontier
          Airlines Holdings, Inc                                                                    43

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
      “B” TO APPENDIX V

    

    FORM
      “B” TO APPENDIX V FRONTIER’S INTERIOR DECOR AND EMERGENCY EQUIPMENT
      LIST

    

    

    

                                        
      Frontier Airlines, Inc..  
  hereby
      approves the attached Interior Décor as submitted by Frontier on   
       ,
      200X
      and confirmed by Bombardier Aerospace on   
 ,
      2006
      and hereby approves the attached Emergency Equipment List and
      Locations.

    

    

    Dated
      this ___ day of ______________ 2006

    

    

    by:
      _________________________________

    Name:

    Title:

    

    

    Copy
      to: Contracts

    

    
      
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          -581

        Frontier
          Airlines Holdings, Inc                                                                    44

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
      “C” TO APPENDIX V

    

    FORM
      “C” TO APPENDIX V FRONTIER’S PLACARDS, LABELS &
MARKINGS

    

    

                                                                               
      Frontier Airlines, Inc.      
         hereby
      approves the attached Placards, Markings, and Labels as submitted by Frontier
      on
 
       ,
      2006
      and confirmed by Bombardier Aerospace on    
       ,
      2006.

    

    

    Dated
      this ___ day of ______________ 2006.

    

    by:
      _________________________________

    Name:

    Title:

    

    

    Copy
      to: Contracts

    

    

    

    
      
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          -581

        Frontier
          Airlines Holdings, Inc                                                                    45

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

    

    SCHEDULE
      I - CERTIFICATE OF ACCEPTANCE

    

    

    

    

    The
      undersigned hereby acknowledges on behalf of Frontier acceptance of the Aircraft
      bearing manufacturer’s serial number __________ fitted with two engines MODEL
      PWC-150 bearing serial numbers ____________ and _______________ as being in
      accordance with the terms and conditions of this Agreement signed on the
      _______day of _________ between Bombardier Inc. and Frontier.

    

    

    Place:                                 Date:                   

    

    Signed
      for and on behalf of Frontier name

    

    

    

    By:                          

    Title:
      Attorney in Fact

    

    
      
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        Frontier
          Airlines Holdings, Inc                                                                    46

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      II

    

    

    SCHEDULE
      II - BILL OF SALE

    

    FOR
      VALUABLE CONSIDERATION, BOMBARDIER AEROSPACE REGIONAL AIRCRAFT (BOMBARDIER),
      OWNER OF THE FULL LEGAL AND BENEFICIAL TITLE OF THE AIRCRAFT DESCRIBED AS
      FOLLOWS:

    

    ONE
      BOMBARDIER DE HAVILLAND DHC-8-400 AIRCRAFT BEARING:

    MANUFACTURER’S
      SERIAL NO.:             
                  
  ,
      WITH:

    PWC-150
      ENGINE SERIAL NOS

    AUXILIARY
      POWER UNIT NO.:                           
          

    
 

    DOES
      THIS             
DAY
      OF                       
200X        HEREBY SELL, GRANT, TRANSFER AND
      DELIVER ALL RIGHT, TITLE AND INTEREST IN AND TO SUCH AIRCRAFT UNTO: Frontier
      Airlines, Inc.

    

    BY
      VIRTUE OF THE EXECUTION OF THIS BILL OF SALE, Bombardier HEREBY DIVESTS ITSELF
      OF ALL ITS RIGHT, TITLE AND INTEREST OF ANY KIND IN THE AIRCRAFT, IN FAVOUR
      OF
      FRONTIER.

    

    THIS
      BILL OF SALE SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
      WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO
      BE
      PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD FOR CONFLICT OF LAW
      PRINCIPLES (OTHER THAN THE PROVISIONS OF SECTION 5-1401 OF THE GENERAL
      OBLIGATIONS LAW OF THE STATE OF NEW YORK).

    

    FRONTIER:

    

    PLACE:
      __________ TIME:__________

    

    For
      and
      on behalf of

    

    BOMBARDIER
      INC.

    Bombardier
      Aerospace

    Regional
      Aircraft

    

    Per:             

    

    Title:             

    

    

    
      
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          -581

        Frontier
          Airlines Holdings, Inc                                                                    47

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      III

    

    SCHEDULE
      III- CERTIFICATE OF RECEIPT OF AIRCRAFT

    

    

    

    

    The
      undersigned hereby acknowledges to have received from Bombardier Inc., in
      Toronto, Ontario, Canada, on the __________ day of _________, at the hour of
      __________o’clock, one (1) Q400 aircraft, bearing manufacturer’s serial number,
      _________, including with the aircraft the two PWC-150 engines bearing
      manufacturer’s serial numbers __________ & __________

    

    

    Place:____________________ Date:____________________

    

    Signed
      for and on behalf of Frontier name

    

    

    

    By:      

    

    Title:
      Attorney in Fact

    

    

    
      
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          -581

        Frontier
          Airlines Holdings, Inc                                                                    48

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IV

    

    

    SCHEDULE
      IV - CHANGE ORDER

    (PRO
      FORMA)

    

    CONTRACT
      CHANGE ORDER

    

    PURCHASER: 

    

    PURCHASE
      AGREEMENT
      NO.:                
AIRCRAFT
      TYPE:

    

    C.C.O.
      NO.:                                                
DATED:

    

                                                                       
      PAGE
      __
      of __

    

    REASON
      FOR CHANGE: 

    

    ____________________________________________________________________

    

    DESCRIPTION
      OF CHANGE:

    

    

    

    

    

    

    ALL
      OTHER TERMS AND CONDITIONS OF THE AGREEMENT WILL REMAIN UNCHANGED

    

    For
      administrative purposes only, a consolidation of the amendments contained in
      this CCO is attached. In the event of inconsistencies between the consolidation
      and this CCO, this CCO shall prevail.

     

                                    

     

    FOR
      AND
      ON BEHALF OF: FOR
      AND
      ON BEHALF OF:

    

    Bombardier
      Aerospace Regional Aircraft       

    

    Signed:      
      Signed:  
   

    

    Date:                                                               
      Date:                                                       
      

    

    

    

    
      
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          -581

        Frontier
          Airlines Holdings, Inc                                                                    49

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    SCHEDULE
      IV

    
 

     

     

     

     

     

    
      
        
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          Frontier
            Airlines Holdings, Inc                                                                    50

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

     

    

    

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

    

    CUSTOMER
      SUPPORT SERVICES

    

    ANNEX
      A

    

    TECHNICAL
      SUPPORT, SPARE PARTS, TRAINING AND TECHNICAL DATA

    

    

    The
      following Customer Support Services are those services to which reference is
      made in Article 3 of the Agreement. Unless otherwise expressly stated in this
      Annex A, [***].
      

    

    ARTICLE
      1 - TECHNICAL SUPPORT

    

    
      	
              1.1

            	
              Factory
                Service

            

    

    

    
      	 	
              Bombardier
                agrees to maintain or cause to be maintained the capability to respond
                to
                Frontier’s technical inquiries, to conduct investigations concerning
                repetitive maintenance problems and to issue findings and recommend
                action
                thereon for as long as ten (10) Bombardier Q400
                aircraft remain in commercial air transport service
                worldwide.

            

    

    

    
      	
              1.2

            	
              Field
                Service Representative

            

    

    
       

    

    1.2.1   
      Services

    
       

    

    
      	 	 	
              Bombardier
                shall assign one (1) [***]
                Field Service Representative (“FSR”) to Frontier’s main base of operation
                or other location as may be mutually
                agreed.

            

    

    

    
      	 	
              1.2.2

            	
              Term

            

    

    

    
      	 	 	
              Such
                assignment shall be for [***],
                and shall commence approximately [***] to the Scheduled Delivery
                Month of
                the first Aircraft. The FSR assignment may be extended on terms and
                conditions to be mutually agreed.

            

    

    

    
      	 	
              1.2.3
                

            	
              Responsibility

            

    

    

    
      	 	 	
              The
                FSR’s responsibility shall be to provide technical advice to Frontier
                for
                the line maintenance and operation of the Aircraft systems and
                troubleshooting during scheduled and unscheduled
                maintenance.

            

    

    

    
      	 	
              1.2.4

            	
              Start-up
                Team

            

    

    

    To
      assist Frontier in the introduction of the Aircraft into revenue service,
      Bombardier will assemble a “Start-Up Team” at Frontier’s main base of operation
      or other location as may be mutually agreed. The composition of this
      start-up

    

    
      
        
          

          PA
            581
            Annex A.

           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    team
      [***]
      could
      [***]
      include
      operational, technical and/or maintenance support personnel (“Start-up Team
      Services”). 

    

    

    
      	 	
              1.2.5

            	
              Term

            

    

    

    Such
      Start-Up Team assignment shall be for a period of up to [***] and shall commence
      in accordance with a mutually agreed schedule.

    

    1.2.6   
      Travel

    

    
      	 	 	
              If
                requested by Frontier, the FSR and/or the Start-up team may, at Frontier’s
                expense, travel to another location to provide technical advice to
                Frontier.

            

    

    

    
      	 	
              1.2.7

            	
              Office
                Facilities

            

    

    

    
      	 	 	
              Frontier
                shall furnish the FSR and the Start-up Team at no charge to Bombardier,
                suitable and private office facilities and related equipment including
                desk, file cabinet, access to two telephone lines, facsimile and
                photocopy
                equipment conveniently located at Frontier’s main base of operation or
                other location as may be mutually
                agreed.

            

    

    

    
      	 	
              1.2.8

            	
              Intentionally
                Omitted.

            

    

    

    
      	 	
              1.2.9

            	
              Right
                to Stop Work

            

    

    

    
      	 	 	
              Bombardier
                shall not be required to commence or continue the FSR or Start Up
                Team
                Services when:

            

    

    

    
      	 	
              a.)

            	
              there
                exist war, risk of war or warlike operations, riots or insurrections
                which
                materially adversely affects the location where services are to be
                provided and Bombardier’s ability to provide them;
                or

            

    

    

    
      	 	
              b.)

            	
              there
                exist conditions that are dangerous to the safety or health of the
                FSR,
                Start-up Team or other Bombardier
                employee.

            

    

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page
            2 

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    1.2.10  Work
      Permits and Clearances

    

    
      	 	 	
              Frontier
                shall endeavour to support the process for obtaining all necessary
                airport
                security clearances at Frontier’s facilities in the United States where
                services will be provided required for the FSR, Start-up Team or
                other
                Bombardier employee to permit timely accomplishment of the FSR and/or
                Start-up Team services.

            

    

    

    

    
      	
              1.3

            	
              Maintenance
                Planning Support

            

    

    

    
      	 	
              1.3.1

            	
              [***]
                Maintenance
                Program

            

    

    

    As
      soon
      as practicable after the execution of this Agreement, Bombardier will provide
      Frontier with [***]
      and
      will [***].

    

    
      	 	
              1.3.2

            	
              Scheduled
                Maintenance Task Cards

            

    

    

    
      	 	 	
              As
                described in Annex A Attachment A, Bombardier shall provide Frontier
                [***]
                scheduled maintenance task cards according to Bombardier’s then available
                format that shall conform to the Aircraft at the Delivery Date. At
                Frontier’s request Bombardier shall provide a proposal to produce task
                cards to Frontier’s format.

            

    

    

    
      	 	
              1.3.3

            	
              In-Service
                Maintenance Data

            

    

    

    
      	 	 	
              Frontier
                will provide to Bombardier in-service maintenance data [***]
                in
                order to assist Bombardier in providing updates to Bombardier’s
                recommended maintenance program. Frontier and Bombardier shall agree
                on
                frequency for communication of such
                data.

            

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 3 

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    ARTICLE
      2 - SPARE PARTS, GROUND SUPPORT EQUIPMENT (GSE), TOOLS AND TEST
      EQUIPMENT

    

    
      	
              2.1

            	
              Definitions

            

    

    

    a.  
      “Bombardier
      Parts”:

     

         
      means any parts, ground support equipment, tools and test equipment which bear
      an in-house Cage Code number. 

    

    
      	 	
              b.

            	
              “Illustrated
                Parts Catalogue”;

            

    

    

    means
      Bombardier’s spare parts reference manual for the Aircraft, to which Frontier
      shall have unlimited internet access to the most recent version, depicting
      assembly and component parts lists breakdowns and illustrations in disassembly
      sequence until expiration of the revision service described in Article
      4.4;

    

    c.  
      “Order”:

    

    means
      any order for Spare Parts issued by Frontier to Bombardier; 

    

    d.  
      “Power
      Plant Parts”:

    

    means
      any power plant or power plant part or assembly carrying the power plant
      manufacturer’s part number or any part furnished by the power plant manufacturer
      purchased as Spare Parts. 

    

    e.  
      “Spare
      Parts”:

    

    means
      all materials, spare parts, assemblies, special tools and items of equipment,
      including ground support equipment. The term Spare Parts includes Bombardier
      Parts, Power Plant Parts and Vendor Parts; 

    

    f.   
      “Spare
      Parts Price Catalogue”;

    

    means
      a
      list of Spare Parts prices periodically published by Bombardier Inc. for the
      Aircraft, to which Frontier shall have unlimited internet access in its most
      recent version;

    

    g.  
      “Stock
      Class Parts”

    

    Bombardier
      Parts ordered at least three (3) times from Bombardier by any party worldwide
      within the immediately preceding twelve (12) month period for aircraft of the
      same type as the Aircraft.

    

    h.  
      “Technical
      Data”:

    

    has
      the
      meaning attributed to it in Annex A Article 4.1; and

    

    i.   
      “Vendor
      Parts”:

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 4 

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    means
      any spare parts, ground support equipment, tools and test equipment for the
      Aircraft which are not Bombardier Parts or Power Plant Parts.

    

    
      	
              2.2

            	
              Term
                and Applicability

            

    

    

    This
      Annex A Article 2 shall become effective on the date hereof and shall remain
      in
      full force and effect with respect to the purchase and sale of Spare Parts
      so
      long as at least ten (10) Bombardier Q400
      aircraft
      remain in commercial air transport service worldwide. The provisions of Annex
      A
      Articles 2.3, 2.7.5, and Annex B Article 5.0 shall survive expiration or
      termination of the Agreement.

    

    
      	
              2.3

            	
              Order
                Terms

            

    

    

    
      	 	
              Terms
                and conditions hereof shall apply to all Orders placed by Frontier
                with
                Bombardier in lieu of any conflicting terms and conditions in Frontier’s
                purchase orders or Bombardier’s acknowledgement or acceptance of the
                same.

            

    

    

    
      	
              2.4

            	
              Purchase
                and Sale of Spare Parts

            

    

    

    
      	 	
              2.4.1

            	
              Agreement
                to Manufacture, Sell and Make
                Available

            

    

    

    
      	 	 	
              Bombardier
                shall manufacture, or procure, and make available for sale to Frontier
                suitable Spare Parts in quantities sufficient to meet the reasonably
                anticipated needs of Frontier for normal maintenance and normal spares
                inventory replacement. Bombardier shall also maintain or cause to
                be
                maintained a reasonable quantity of Bombardier insurance parts. Insurance
                parts as used herein shall include, but not be limited to,
                dispatch-essential parts such as major flight control
                surfaces.

            

    

    

    

    
      	
              2.5

            	
              Frontier’s
                Right to Purchase, Redesign or Manufacture Bombardier
                Parts

            

    

    

    
      	 	
              2.5.1

            	 

    

    

    Frontier
      may purchase Bombardier Parts [***]. Additionally, Frontier may redesign
      Bombardier Parts, or have them redesigned, manufacture Bombardier Parts, or
      have
      them manufactured, under the following conditions:

     

    (a) 
      When
      less than ten (10) aircraft of the type purchased hereunder are operated in
      scheduled commercial air transport service worldwide; 

     

    (b) 
      Any
      time Bombardier Parts are needed to effect emergency repairs on the Aircraft,
      provided that such redesign or manufacture by or from sources other than
      Bombardier, allows Frontier to obtain Bombardier Parts in less time than
      Bombardier requires to furnish them; or

     

    (c) 
      If
      Frontier has notified Bombardier in writing that any Bombardier Parts are
      defective or unsatisfactory in use and if within a reasonable period thereafter
      Bombardier has not provided a satisfactory resolution or made redesigned
      Bombardier Parts available.

     

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 5 

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    

    
      	 	
              2.5.2

            	
               

            

    

    

    Frontier’s
      right to purchase, redesign or to have redesigned or manufacture or to have
      manufactured Bombardier Parts under the preceding Article shall not be construed
      as a granting of a license by Bombardier and shall not obligate Bombardier
      to
      disclose to anyone Technical Data or other information nor to the payment of
      any
      license fee or royalty or create any obligation whatsoever to Bombardier and
      Bombardier shall be relieved of any obligation or liability with respect to
      patent infringement in connection with any such redesigned part. Frontier shall
      be responsible for obtaining all regulatory authority approvals required by
      Frontier to repair the Aircraft using redesigned or manufactured Bombardier
      Parts as described in the preceding Article. Any such redesigned part shall
      be
      identified with Frontier’s part number only. 

     

    
      	
              2.6

            	
              Purchase
                of Vendor Parts & Power Plant
                Parts

            

    

    

    
      	 	
              Bombardier
                shall not be obligated to maintain a stock of Vendor Parts or Power
                Plant
                Parts. Bombardier may elect to maintain a spares stock of selected
                Vendor
                Parts and/or Power Plant Parts at its own discretion to support
                provisioning and replenishment sales. Bombardier agrees to use reasonable
                efforts to require its vendors to comply with the terms and conditions
                of
                this Annex A Article 2 as they apply to Vendor Parts and Power Plant
                Parts. Vendor Parts and Power Plant Parts shall be delivered in accordance
                with the applicable vendor’s quoted lead-time plus Bombardier’s internal
                processing time should the Vendor Parts be sourced by Frontier through
                Bombardier.

            

    

    

    
      	
              2.7

            	
              Spare
                Parts Pricing

            

    

    

    
      	 	
              2.7.1

            	
              Spare
                Parts Price Catalogue

            

    

    

    
      	 	 	
              Bombardier
                is working to mitigate cost pressures internally by redesigning parts
                and
                manufacturing processes, reducing operating costs and seeking alternative
                supply sources worldwide that offer maximum cost advantage. [***].
                

            

    

     

    
      

      
        	 	
                2.7.2

              	
                Bombardier
                  Prices for Vendor
                  Parts

              

      

    

    

    
      	 	 	
              If
                Frontier orders Vendor Parts from Bombardier, the price to Frontier
                shall
                be the price as published in the Spare Parts Price
                Catalogue.

            

    

    

    
      	 	
              2.7.3

            	
              Quotations

            

    

    

    
      	 	 	
              Price
                and delivery quotations for items not listed in the Spare Parts Price
                Catalogue shall be provided in accordance with Letter Agreement No.
                8
                (Spares Program). Price quotations will be held firm for a period
                of [***]
                or as otherwise specified by Bombardier.

            

    

    

    
      	 	
              2.7.4

            	
              Price
                Applicability

            

    

    

      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 6

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

     

    
 

    
      	 	 	
              The
                purchase
                price of Bombardier Parts shall be the applicable price set forth
                in the
                Spare Parts Price Catalogue at time of receipt by Bombardier of Frontier’s
                Order [***] or as quoted by Bombardier to Frontier upon request.
                If
                Frontier requests accelerated production, delivery or special handling
                for
                Bombardier Parts not taken into account in the price set out in the
                Spare
                Parts Price Catalogue for such Bombardier Parts, Bombardier may increase
                the price from the original quotation to cover any additional costs
                to
                Bombardier resulting from such accelerated production, delivery or
                special
                handling.

            

    

    

    
      	 	
              2.7.5

            	
              Currency
                and Taxes

            

    

    

    
      	 	 	
              All
                Spare Parts Price Catalogue and quotation prices shall be in U.S.
                dollars
                and exclusive of transportation, taxes, duties and
                licenses.

            

    

    

    Frontier
      shall pay to Bombardier upon demand the amount of any sales, use, value-added,
      excise or similar taxes imposed by any federal, provincial or local taxing
      authority within Canada, and the amount of all taxes imposed by any taxing
      authority outside Canada, required to be paid by Bombardier as a result of
      any
      sale, use, delivery, storage or transfer of any Spare Parts. If Bombardier
      has
      reason to believe that any such tax is applicable, Bombardier shall separately
      state the amount of such tax in its invoice. If a claim is made against
      Bombardier for any such tax, Bombardier shall promptly notify
      Frontier.

    

    
      	 	 	
              In
                addition, Frontier shall pay to Bombardier on demand the amount of
                any
                customs duties required to be paid by Bombardier with respect to
                the
                importation by Frontier of any Spare
                Parts.

            

    

    

    
      	 	 	
              The
                parties shall reasonably cooperate with one another to minimize or
                eliminate exposure to custom duties or other taxes hereunder, in
                accordance with applicable law.

            

    

    

    
      	 	
              2.7.6

            	
              Vendor
                Pricing

            

    

    

    
      	 	 	
              Bombardier
                shall use reasonable efforts to require its major vendors to maintain
                any
                published price for their parts for a period of at least [***] with
                a
                [***]
                notice period prior to changing a published
                price.

            

    

    

    

    
      	
              2.8

            	
              Provisioning

            

    

    

    2.8.1      
      Bombardier
      will immediately appoint a spares sales manager (“Spares Sales Manager”) for
      Frontier. The Spares Sales Manager will be available to Frontier at its major
      base of operations to coordinate those activities related to the initial spare
      parts requirements as well as provide Frontier with any assistance for any
      spares-related issues on an on-going basis. At Frontier’s request and upon
      finalizing the Aircraft Specification, the Spares Sales Manager
      will:

     

    
      	
              i.

            	 	commence
              the
              spares parts initial provisioning (IP) process, which will be customized
              to Frontier’s operations and environment;
	 	 	 
	
              ii.

            	 	schedule
              a
              spares pre-provisioning conference (“Pre-Provisioning Conference”) which
              will provide an opportunity for the Sales Manager
              to

       

      
        
          
            

            Frontier
              Airlines Holdings, Inc.                                                                    Page 7

            
            

          

          
            
            

            
              

            

          

          
            
            

          

 

      
        	 	 	
                introduce
                  Frontier to all of the services available from the Bombardier Parts
                  Logistics organization along with a discussion related to spare
                  parts
                  purchasing incentives;

              
	
                 

              	
                 

              	
                 

              
	
                iii.

              	
                 

              	
                discuss
                  the
                  operational parameters necessary for preparing its quantity
                  recommendations for initial provisioning of Spare Parts to be purchased
                  from Bombardier or vendors (“Provisioning Items”) and establish the base
                  line operating model to be used for the creation of the IP
                  data;

              
	
                 

              	
                 

              	
                 

              
	
                iv.

              	
                 

              	
                schedule
                  meetings to review and discuss support related to Frontier’s requirements
                  for ground support equipment, and special tooling for the
                  Aircraft;

              
	
                 

              	
                 

              	
                 

              
	
                v.

              	
                 

              	
                discuss
                  the
                  format of the provisioning documentation to be provided to Frontier
                  from
                  Bombardier for the selection of Provisioning Items; 

              
	
                 

              	
                 

              	
                 

              
	
                vi.

              	
                 

              	
                provide
                  a
                  [***];

              
	
                 

              	
                 

              	
                 

              
	
                vii.

              	
                 

              	
                establish
                  a
                  time line as required by Frontier whereby Bombardier will make
                  available
                  appropriate Bombardier representatives at the formal
                  Provisioning Conference and make available the deliverables set
                  forth
                  above.

              
	 	 	 

      

    

       

    
      	
              2.9

            	
              Initial
                Provisioning Documentation

            

    

    

    
      	 	
              Initial
                provisioning documentation for Bombardier Parts and Vendor Parts
                shall be
                provided by Bombardier as follows:

            

    

     

    a) 
      Bombardier
      shall provide, not later than [***] prior the Scheduled Delivery Month of the
      first Aircraft, a recommended initial provisioning list to  include
      all Bombardier Parts, Vendor Parts, , GSE and tooling requirements (the “RSPL”)
      for Frontier’s configuration pursuant to Article 2.8. The RSPL shall identify
      all necessary tooling required to assist Frontier with the service and
      maintenance of the Aircraft; 

    

    b) 
      Bombardier
      shall provide, not later than [***] prior the Scheduled Delivery Month of the
      first Aircraft, the initial issue of provisioning data files described in ATA
      Specification 2000, Chapter 1 (as may be amended by Bombardier);
      and

    

    c)  
      [***]
      to
      [***]
      shall
      be [***] following [***]
      or as
      may be mutually agreed; 

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 8

          
          

        

        
          
          

          
            

          

        

        
          
          

        

       

    

     

    
      	 	
              2.9.1

            	
              Obligation
                to Substitute Obsolete Spare
                Parts

            

    

    

    
      	 	 	
              In
                the event that, prior to delivery of the first Aircraft, any Spare
                Part
                purchased by Frontier from Bombardier is rendered obsolete or unusable
                due
                to the redesign of the Aircraft or of any accessory, equipment or
                part
                thereto (other than a redesign at Frontier’s request), Bombardier shall
                deliver to Frontier new and usable Spare Parts in substitution for
                such
                obsolete or unusable Spare Parts upon return of such Spare Parts
                to
                Bombardier by Frontier. Bombardier shall credit Frontier’s account with
                Bombardier with the price paid by Frontier for any such obsolete
                or
                unusable Spare Part and shall invoice Frontier for the purchase price
                of
                any such substitute Spare Part delivered to Frontier.
                

            

    

    

    
      	 	
              2.9.2

            	
              Delivery
                of Obsolete Spare Parts and Substitutes
                

            

    

    

    
      	 	 	
              Obsolete
                or unusable Spare Parts returned by Frontier pursuant to Article
                2.9.1.
                shall be delivered to Bombardier at its United States distribution
                centre.
                Spare Parts substituted for such returned obsolete or unusable Spare
                Parts
                shall be delivered to Frontier from Bombardier’s plant in Ontario or such
                other Bombardier shipping point as Bombardier may reasonably designate.
                Bombardier shall pay the freight charges for the shipment from Frontier
                to
                Bombardier of any such obsolete or unusable Spare Part and for the
                shipment from Bombardier to Frontier of any such substitute Spare
                Part.

            

    

    

    
      	 	
              2.9.3

            	
              Obligation
                to Repurchase Surplus Provisioning
                Items

            

    

    

    Bombardier
      offers to Frontier a credit program for surplus Spares Parts, which were
      recommended in writing by Bombardier as part of the initial or any revision
      to
      the RSPL as described in Article 2.9 and are actually purchased by Frontier
      from
      Bombardier as Spare Parts. Such program will provide terms no less favorable
      than the following: 

     

    
      	
              i.

            	 	During
              a
              period commencing [***] after the Delivery Date of the first Aircraft,
              and
              ending [***] such Delivery Date, Bombardier will, upon receipt of a
              written request and subject to the exceptions and conditions in Article
              2.9.4, offer a credit for new, unused Spare Parts with the original
              certification documentation provided by Bombardier which (a) have been
              supplied by Bombardier as Spare Parts for the Aircraft and (b) are
              surplus
              to Frontier’s needs. Such credit may be used toward the purchase of goods
              and services (excluding the Aircraft) offered by
              Bombardier.

    

    

    
      	 	
              2.9.4

            	
              Exceptions

            

    

    

    
      	 	 	
              Bombardier
                shall not be obligated under Annex A Article 2.9.3 to repurchase
                Power
                Plant Parts, QEC Kit components not constituting Bombardier Parts,
                standard hardware, bulk and raw materials, GSE and special tools.
                Bombardier will not issue credits for Spare Parts which (a) were
                purchased
                by Frontier in quantities excess to or different from the parts
                recommended in writing by Bombardier to Frontier as RSPL provisioning
                for
                the Aircraft, (b) become surplus as a result of a change in Frontier’s
                operating parameters considered by Bombardier for the purpose of
                making
                the recommendation, including without limitation the total size of
                Frontier’s fleet of Aircraft, and (c) for Spare Parts
                which

            

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 9

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

     

    
      
        	 	 	
                have
                  been deemed obsolete by Bombardier when using commercially reasonable
                  business and technical standards or have been superseded by another
                  part
                  as a result of (i) Frontier’s modification of an Aircraft for which the
                  Spare Parts were purchased; (ii) parts damaged by Frontier; or
                  (iii) Spare
                  Parts that were not properly
                  stored.

              

      

    

    

    
      	 	
              2.9.5

            	
              Notification
                and Format

            

    

    

    
      	 	 	
              Frontier
                shall notify Bombardier, in writing, when Frontier desires to return
                Provisioning Items which Frontier’s review indicates are eligible for
                repurchase by Bombardier under the provisions of Annex A Article
                2.9.3.
                Frontier’s notification shall include a detailed summary, in part number
                sequence, of the Spare Part serial number and the original invoice
                price
                of the Provisioning Items Frontier desires to return. Such summary
                shall
                be in the form of listings as may be mutually agreed between Bombardier
                and Frontier, and shall include part number, nomenclature, purchase
                order
                number, purchase order date and quantity to be
                returned.

            

    

    

    
      	 	 	
              Within
                five (5) Business Days after receipt of Frontier’s notification,
                Bombardier shall advise Frontier, in writing, when Bombardier’s review of
                such summary from Frontier will be completed in accordance with Article
                2.9.6.

            

    

    

    
      	 	
              2.9.6

            	
              Review
                and Acceptance by
                Bombardier

            

    

    

    Upon
      completion of Bombardier’s review of a detailed summary submitted by Frontier
      pursuant to Annex A Article 2.9.5., Bombardier shall issue to Frontier a
      Material Return Authorization notice (“MRA”) for those Provisioning Items
      Bombardier agrees are eligible for repurchase in accordance with Annex A Article
      2.9.3. Bombardier will advise Frontier within thirty (30) days from receipt
      of
      Frontier’s Notice in accordance with Article 2.9.5 above of the reason that any
      Provisioning Items included in Frontier’s detailed summary are not eligible for
      return. The MRA notice shall state the date by which Provisioning Items listed
      in the MRA notice must be redelivered to Bombardier and Frontier shall arrange
      for shipment of such Provisioning Items accordingly.

     

    
      	 	
              2.9.7

            	
              Price
                and Payment

            

    

    

    The
      credit for each Spare Part to be issued by Bombardier will be: (i) an amount
      equal to [***] of the invoice price of the Spare Part. Credits will be issued
      and available to Frontier within [***] following such return to Bombardier’s
      facility in the United States. 

     

    
      	 	
              2.9.8

            	
              Review
                and Acceptance by Bombardier and Return of Surplus Provisioning
                Items

            

    

    

    
      	 	 	
              Spare
                Parts for which a credit has been requested shall be delivered by
                Frontier, (Free Carrier - INCOTERMS 2000) to the Bombardier facility
                in
                the United

            

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 10

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

     

    
      	 	 	
              States.
                All Spare Parts returned are subject to Bombardier’s quality control
                acceptance inspection using industry standard procedures and criteria.
                All
                Spare Parts which are rejected by Bombardier’s quality control and/or are
                included in the exceptions set forth in this Article will be reported
                to
                Frontier, within 30 calendar days of Bombardier receiving the part,
                such
                report to include a written description of the cause of rejection,
                and
                will be returned to Frontier at Frontier’s expense unless expressly
                directed by Frontier in writing within thirty (30) days after the
                report
                is issued by Bombardier to not ship the part back to Frontier and
                to
                dispose of it as Bombardier deems appropriate in its sole
                discretion.

            

    

    

    
      	 	
              2.9.9

            	
              Obsolete
                Spare Parts and Surplus Provisioning Items - Title and Risk of
                Loss

            

    

    

    
      	 	 	
              Title
                to and risk of loss of any obsolete or unusable Spare Parts returned
                to
                Bombardier pursuant to Article 2.9.8 shall pass to Bombardier upon
                delivery thereof to Bombardier. Risk of loss of any Spare Parts
                substituted for an obsolete or unusable Spare Part pursuant to Article
                2.9.1 shall pass to Frontier upon delivery thereof to Frontier. Title
                to
                and risk of loss of any Provisioning Items repurchased by Bombardier
                pursuant to Article 2.9.3 shall pass to Bombardier upon delivery
                thereof
                to Bombardier.

            

    

    

    
      	 	 	
              With
                respect to the obsolete or unusable Spare Parts which may be returned
                to
                Bombardier and the Spare Parts substituted therefor pursuant to Article
                2.9.1, and the Provisioning Items which may be repurchased by Bombardier
                pursuant to Article 2.9.3, the party which has the risk of loss of
                any
                such Spare Part or Provisioning Item shall have the responsibility
                of
                providing any insurance coverage thereon desired by such
                party.

            

    

    

    

    
      	
              2.10

            	
              Procedure
                for Ordering Spare Parts

            

    

    

    
      	 	
              Orders
                for Spare Parts may be placed by Frontier to Bombardier by any method
                of
                order placement (including but not limited to SITA, ARINC, [***],
                telecopier, letter, facsimile, electronic mail, telephone or hard
                copy
                purchase order).

            

    

    

    2.10.1 
      Requirements

    

    
      	 	 	
              Orders
                shall include at a minimum order number, part number, nomenclature,
                quantity, delivery schedule requested, shipping instructions and
                Bombardier’s price, if available. Orders placed with Bombardier shall
                conform to the requirements and procedures contained in ATA Specification
                2000, as applicable to Frontier.

            

    

    

    2.10.2 
      Processing
      of Orders

    

    
      	 	 	
              Upon
                acceptance of any Order, unless otherwise directed by Frontier, Bombardier
                shall, if the Spare Parts are in stock, proceed to prepare the Spare
                Parts
                for shipment to Frontier. If Bombardier does not have the Spare Parts
                in
                stock, Bombardier will promptly notify Frontier and Frontier will
                instruct
                Bombardier on how to proceed to acquire or manufacture the Spare
                Parts.
                Purchase order status and actions related to the shipment of Spare
                Parts
                shall

            

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 11

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    be
      generally consistent with the provisions of the World Airline Suppliers Guide,
      as applicable to Frontier.

    

    2.10.3 
      Changes

    

    
      	 	 	
              Bombardier
                reserves the right, subject to having notified Frontier, to make
                any
                necessary corrections or changes in the design, part number and
                nomenclature of Spare Parts covered by an Order, to substitute Spare
                Parts
                and to adjust prices accordingly, provided that interchangeability
                is not
                affected and the unit price is not increased by more than [***].
                Bombardier shall promptly give Frontier Notice of corrections, changes,
                substitutions and consequent price adjustments. Corrections, changes,
                substitutions and price adjustments which affect interchangeability
                or
                exceed the price limitations set forth above may be made only with
                Frontier’s consent, which consent shall conclusively be deemed to have
                been denied unless Frontier gives Bombardier Notice of acceptance
                within
                fifteen (15) Business Days after receipt of Bombardier’s Notice. Unless
                Frontier gives Bombardier Notice of acceptance as aforesaid, the
                affected
                Spare Part will be deleted from Frontier’s
                Order.

            

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 12

          
          

        

        
          
          

          
            

          

        

        
          
          

        

     

    

    
      	
              2.11

            	
              Packing

            

    

    

    
      	 	
              All
                Spare Parts ordered shall receive standard commercial packing suitable
                for
                export shipment via air freight. Such standard packing will generally
                be
                to ATA 300 standards as amended from time to time. All AOG orders
                will be
                handled, processed, packed and shipped
                separately.

            

    

    

    
      	
              2.12

            	
              Packing
                List

            

    

    

    
      	 	
              Bombardier
                shall insert in each shipment a packing list/release note itemized
                to
                show:

            

    

    

    (i)     
      the
      contents of the shipment,

    (ii)    
the
      approved signature of Bombardier’s TC authority attesting to the airworthiness
      of the Spare Parts.

    (iii)    value
      of the shipment for customs clearance if required.

    

    
      	
              2.13

            	
              Container
                Marks

            

    

    

    
      	 	
              Upon
                Frontier’s request each container shall be marked with shipping marks as
                specified on the Order. In addition Bombardier shall, upon request,
                include in the markings: gross weight and cubic
                measurements.

            

    

    

    
      	
              2.14

            	
              Delivery

            

    

    

    
      	 	
              2.14.1

            	
              Delivery
                Point

            

    

    

    
      	 	 	
              Spare
                Parts shall be delivered to Frontier as set forth in this Article
                2 and
                Letter Agreement No. 8 (Spares
                Program).

            

    

     

    
      	 	
              2.14.2
                

            	
              Delivery
                Time

            

    

    

    
      	 	 	
              Bombardier
                shall ship Spare Parts to Frontier as set forth in Letter Agreement
                No. 8
                (Spares Program) or as follows:

            

    

    

    a)  Initial
      Provisioning Orders

    

      
[***]
      prior to the
      Delivery Date of the first Aircraft, so long as Frontier has placed an Order
      at
      least [***] prior thereto; and

    

    b)     Delivery
      Period Other Orders

     

    Shipment
      of stock items shall be approximately [***] after Bombardier’s receipt of
      Frontier’s Order. Shipment of non-stock items shall be in accordance with quoted
      lead times or lead times published in the current Spare Parts Price Catalogue
      or
      provisioning data.

    

    
      	
              2.15

            	
              Collect
                Shipments

            

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 13

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    
      	 	
              Where
                collect shipments are not deemed practicable by Bombardier, prepaid
                freight charges, insurance and all other costs paid by Bombardier
                shall be
                paid by Frontier promptly upon presentation to Frontier of invoices
                covering the same. 

            

    

    

    
      	
              2.16

            	
              Freight
                Forwarder

            

    

    

    
      	 	
              If
                Frontier elects to use the services of a freight forwarder for the
                onward
                movement of Spare Parts, Frontier agrees to release Bombardier from
                and
                indemnify it for any liability for any fines or seizures of Spare
                Parts
                imposed under any governmental Goods in Transit regulations. Any
                such
                fines levied against Bombardier will be invoiced to Frontier and
                any Spare
                Parts seized under such regulations will be deemed to be received,
                inspected, and accepted by Frontier at the time of
                seizure.

            

    

    

    
      	
              2.17

            	
              Reimbursement
                of Expenses

            

    

    

    
      	 	
              If
                Bombardier gives Frontier Notice that an Order is ready for shipment
                and
                shipment is delayed more than [***] at Frontier’s request or without
                Bombardier’s fault or responsibility, Frontier shall promptly reimburse
                Bombardier upon demand for all costs and expenses, including but
                not
                limited to reasonable amounts for storage, handling, insurance and
                taxes,
                incurred by Bombardier as a result of such
                delay.

            

    

    

    
      	
              2.18

            	
              Title
                and Risk of Loss

            

    

    

    
      	 	
              Property
                and title to the Spare Parts will pass to Frontier upon payment for
                the
                Spare Parts in full. Until payment in full for Spare Parts, (a) title
                to
                them will not pass to Frontier, and (b) Bombardier maintains a purchase
                money security interest in them. Risk of loss of the Spare Parts
                will pass
                to Frontier upon delivery by Bombardier. With respect to Spare Parts
                rejected by Frontier pursuant to Annex A Article 2.20, risk of loss
                shall
                remain with Frontier until such Spare Parts are re-delivered to
                Bombardier.

            

    

    

    
      	 	
              Bombardier
                agrees to notify Frontier when material is shipped and shall provide
                carrier’s reference information (i.e., waybill
                number).

            

    

    

    
      	
              2.19

            	
              Inspection
                and Acceptance

            

    

    

    
      	 	
              All
                Spare Parts shall be subject to inspection by Frontier at destination.
                Use
                of Spare Parts or failure of Frontier to give Notice of rejection
                within
                [***] after receipt shall constitute acceptance. Frontier’s remedies for
                defects discovered before acceptance are exclusively provided for
                in Annex
                A Article 2.20 herein.

            

    

    

    
      	
              2.20

            	
              Rejection

            

    

    

    
      	 	
              Any
                Notice of rejection referred to in Annex A Article 2.19 shall specify
                the
                reasons for rejection. If Bombardier concurs with a rejection, Bombardier
                shall, at its option, correct, repair or replace the rejected Spare
                Parts.
                Frontier shall, upon receipt of Bombardier’s written instructions and
                Material Return Authorization (“MRA”) number, return the rejected Spare
                Parts to Bombardier at its specified plant, or other destination
                as may be
                mutually agreeable. The return of the rejected Spare Parts to Bombardier
                and the return or delivery of a corrected or repaired rejected Spare
                Part
                or any replacement for any such Spare Part to Frontier shall be at
                Bombardier’s expense. Any corrected, repaired or replacement Spare Parts
                shall be subject to the provisions of this
                Agreement.

            

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 14

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    

    
      	
              2.21

            	
              Payment

            

    

    

    
      	 	
              Except
                as provided in Annex A Article 2.23 below, payment terms shall be
                [***] of
                invoice date for established open accounts. Any overdue amount shall
                bear
                interest from the due date until actual payment is received by Bombardier
                at an annual rate of interest equal to
                [***].

            

    

    

    
      	
              2.22

            	
              Payment
                for Provisioning Items

            

    

    

    
      	 	
              Payment
                for Provisioning Items shall be made by Frontier as
                follows:

            

    

    

    
      	 	a)	a
              deposit of
              [***] of the Provisioning Items as selected by Frontier, upon signature
              of
              the spares provisioning document or placement by Frontier of the
              Provisioning Items Order with Bombardier; and
	 	 	 
	 	b)	the
              balance
              of the total price of Provisioning Items upon their delivery as specified
              in 2.21.

    

     

    
      
        	
                2.23

              	
                Modified
                  Terms of Payment

              

      

      

      
        	 	
                
                  Bombardier
                    may alter the terms of payment only upon provision of prior Notice
                    and
                    only if Frontier fails to pay when due an amount Frontier owes
                    under any
                    agreement with Bombardier, provided however, Bombardier reserves
                    the right
                    to establish credit limits from time to time for Frontier as
                    it considers
                    reasonable, in its sole discretion
                    .

                

              

      
 

    
    

     

      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 15

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    
      	
              2.24

            	
              Regulations

            

    

    

    
      	 	
              Frontier
                shall comply with all applicable monetary and exchange control regulations
                and shall obtain any necessary authority from the governmental agencies
                administering such regulations to enable Frontier to make payments
                at the
                time and place and in the manner specified
                herein.

            

    

    

    
      	
              2.25

            	
              Warranty

            

    

    

    
      	 	
              The
                warranty applicable to Bombardier Parts purchased as Spare Parts
                is [***]
                from the date of delivery of such spare part. The cost for the
                transportation incurred in connection with a spare part shall be
                paid by
                Frontier.

            

    

    

    
      	
              2.26

            	
              Cancellation
                of Orders

            

    

    

    
      	 	
              Except
                as otherwise may apply to initial provisioning, if Frontier cancels
                an
                Order, Bombardier, at its option, shall be entitled to recover, as
                liquidated damages upon presentation of an invoice and substantiating
                documentation, an amount based upon the following
                parameters:

            

    

    

    a)  
      if
      work
      accomplished on the Order has been limited to Bombardier Spares Department,
      or
      the part has been identified as “shelf stock” in the Spare Parts Price
      Catalogue, no cancellation charges shall be made;

    

    b)  
      if
      production planning has been completed on the Order and shop orders have been
      written, but no shop time or material charges have been made against the Order,
      the cancellation charge shall be [***] of the price;

    

    c)  
      if
      shop
      time or material charges have been made against the Order, the cancellation
      charge shall be [***]; and

    

    d)  
      if
      the
      Spare Parts covered by the Order can be absorbed into Bombardier’s inventory
      without increasing Bombardier’s normal maximum stock level, no cancellation
      charges shall be made.

    

    
      	
              2.27

            	
              Lease

               

              Bombardier
                shall select and make available certain Insurance Parts for lease,
                subject
                to availability and Frontier agreeing to the terms and conditions
                as set
                out in Bombardier’s standard Master Component Lease
                Agreement.

            

    

     

    2.28   
      Intentionally
      Omitted

     

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 16

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

     

    ARTICLE
      3 - TRAINING

    

    
      	
              3.1

            	
              General
                Terms

               

              Each
                training
                program shall include (i) operational systems, ground familiarization
                on
                Aircraft systems, weight and balance, performance and normal/emergency
                procedures, advance displays, flight deck and flight management systems,
                (ii) [***] of basic indoctrination course work for each pilot. These
                [***]
                of basic indoctrination training material shall be provided by Frontier
                to
                FlightSafety and FlightSafety will incorporate the material into
                the
                training package at an additional charge to Frontier as this is beyond
                the
                standard Pilot Initial Course referred to above), and (iii) up to
                [***]
                with a qualified simulator instructor per Aircraft of training in
                accordance with the FAA’s approved flight operations training
                program.

               

              Simulator
                sessions that are part of the standard Pilot Initial Course must
                be
                completed by the pilots in order to receive records of training.
                

            

    

     

    
      	 	
              3.1.1

            	
              The
                objective of the training programs (the “Programs”) described in this
                Agreement is to familiarize and assist Frontier’s personnel in the
                introduction, operation, and maintenance of the
                Aircraft.

            

    

    

    
      	 	
              3.1.2

            	
              Bombardier
                shall offer the Programs to Frontier in the English language, at
                a
                Bombardier designated facility in North America. The Programs may
                commence
                after execution of the Agreement and shall be completed prior to
                the
                Delivery Date of the last Aircraft purchased
                herein.

            

    

    

    
      	 	
              3.1.3

            	
              Frontier
                shall be responsible for all travel and living expenses (including
                local
                transportation) of Frontier’s personnel incurred in connection with their
                attendance at the Programs.

            

    

    

    
      	 	
              3.1.4

            	
              Training
                Materials and Media shall be further defined upon due diligence by
                the
                Purchaser, thereby reserving their right to expand upon this definition
                as
                may be required from time to time.

            

    

    

    Bombardier
      will furnish each of Purchaser’s pilots attending the Pilot Initial Course [***]
      of the Pilot Training Manuals (without revision service):

    

    Flight
      Crew Operating Manuals (FCOM) Volumes I, II & III;

    Quick
      Reference Handbook (QRH);

    Take
      Off and Landing Card (TOLD) and cockpit poster

    

    Purchaser’s
      personnel attending Bombardier’s maintenance training courses shall receive
      [***] of the Maintenance Training Manual, Engine Run Up Checklist and associated
      handouts (without revision service), which is used during the
      training.

    

    FlightSafety
      is prepared to provide a proposal for the purchase or lease of relevant training
      materials and media provided the applicable non-disclosure and third party
      training agreements are in place.

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 17

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    

    FlightSafety
      will be pleased to provide a proposal directly to Purchaser for the access
      of
      available on-line manuals.

    

    
      	 	
              3.1.5

            	
               The
                Programs are designed for candidates who meet the following minimum
                prerequisites:

            

    

    

    
      	 	 	
               Pilots

            

    

     

    
      	 	 	(a)	hold
              airplane
              multi-engine rating;
	 	 	(b)	have
              recent
              multi-crew experience;
	 	 	(c)	hold
              valid
              instrument flight rating;
	 	 	(d)	hold
              valid
              medical certificate;
	 	 	(e)	have
              a
              functional comprehension of the English language;
	 	 	(f)	captains
              hold
              current and valid ATP license or equivalent (minimum of 3,000 hours
              recommended); and
	 	 	(g)	first
              officers hold current and valid commercial license or equivalent (minimum
              of 1,500 hours recommended).
	 	 	 	 
	 	 	Flight
              Attendants
	 	 	 	 
	 	 	(a)	qualified
              flight attendant with previous experience; or
	 	 	(b)	hold
              recent
              flight attendant training course certificate including fire fighting
              training, first aid training, in-flight emergency training, safety
              procedures training and crew communications training; and
	 	 	(c)	have
              a
              functional comprehension of the English
              language.

    

    
    

    
      	 	 	 

      	 	 	
              Flight
                Dispatchers

            

    

    

    (a)   qualified
      flight dispatcher with previous experience; or

    (b)   familiar
      with aircraft performance, weight and balance and flight planning;
      and

    (c)   have
      a
      functional comprehension of the English language.

    

    
      	 	 	
              Maintenance
                Technicians

            

    

     

    
      	 	 	(a)	hold
              a valid
              AME license or equivalent, or have sufficient knowledge and experience
              (minimum 3 years experience recommended);

    

    
      
        	 	 	(b)	have
                experience with digital communications, glass cockpit and built-in
                test
                equipment; and

      

      
        
          	 	 	(c)	have
                  a
                  functional comprehension of the English
                  language.

        

      

    

     

    
      	 	
              3.1.6

            	
              Prior
                to commencement of the Programs, upgrade training can be arranged
                for
                Frontier’s personnel who do not meet the above minimum requirements. Any
                such upgrade training shall be provided upon terms and conditions
                to be
                mutually agreed.

            

    

    

    
      	 	
              3.1.7

            	
              Should
                any of Frontier’s personnel who do not meet the above minimum requirements
                encounter problems during their training, any additional training
                or costs
                (such as costs for interpreters) shall be borne by
                Frontier.

            

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 18

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    
      	 	
              3.1.8

            	
              A
                training conference shall be held, if practicable, no later than
                [***]
                prior to the Scheduled Delivery Date of the first Aircraft to Frontier,
                or
                as may be otherwise agreed, to establish the content and schedule
                of the
                Programs. Any Frontier requested changes to the standard course curriculum
                may result in additional costs to
                Frontier.

            

    

     

    3.2
      Flight Crew Training 

     

    
      	 	
              3.2.1

            	
              Flight
                Crew Ground Training

            

    

    

    
      	 	 	
              Bombardier
                will provide FAA approved transition training for up to [***] pilots
                who
                meet the minimum entry requirement, at Toronto or another FlightSafety
                facility designated by Bombardier in North America, which consists
                of all
                required:

            

    

     

    (i) 
      Ground school utilizing Computer Based Training (“CBT”) 

    (ii) 
Fixed
      based simulators (“FBS”)

    (iii)
      Full Flight
      Simulators (“FFS”)

    

    Bombardier
      will provide each pilot up to [***] of classroom instruction which may include
      Computer Based Training (CBT), Cockpit Procedures Mock-up (CPM) and Cockpit
      Procedures Training. Bombardier shall furnish each of Frontier’s pilots
      attending the course [***] of each reference course material (without revision
      service): 

    

    Pilot
      Training Manual;

    Flight
      Crew Operating Manuals (FCOM) Volumes I, II & III; 

    Quick
      Reference Handbook (QRH); 

    Take
      Off and Landing Card (TOLD) and cockpit poster

    

    3.2.2   
      Pilot
      Simulator Training

    

    Bombardier
      shall assist
      in arranging access to a FAA approved flight simulator at FlightSafety Canada
      for the crews trained under Annex A Article 3.2.1. Bombardier shall provide
      a
      simulator instructor at no additional charge for [***] for the crews ([***]);
      each session shall consist of [***] in the simulator and required
      briefing/debriefing sessions. 

    

    
      	 	
              3.2.3

            	
              In-flight
                Training

            

    

    

    
      	 	 	
              Should
                Frontier require aircraft flight training in addition to simulator
                training, such training shall be conducted in Frontier’s Aircraft after
                acceptance for [***] of Frontier’s pilots. Bombardier shall provide an
                instructor pilot at no additional charge. Frontier shall be responsible
                for the cost of fuel, oil, landing fees, taxes, insurance and maintenance
                required for the Aircraft during such training. All such training
                shall
                take place at Bombardier’s facilities in Downsview, Ontario. During such
                flights, no passengers shall be permitted aboard the Aircraft.
                

            

    

    

    
      	 	
              3.2.4

            	
              Recurrent
                Pilot Training

            

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 19

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    
      	 	 	
              Bombardier
                shall, upon Frontier’s request, assist in arranging recurrent pilot
                training at FlightSafety facilities in North
                America.

            

    

    

    
      	 	
              3.2.5

            	
              Course
                Training Material

            

    

    

    
      	 	 	
              Bombardier
                will provide training material in accordance with the course training
                material stipulated in each course description. Additionally, upon
                Frontier’s request, Bombardier will arrange for FlightSafety Canada to
                provide a proposal for additional pilot course training materials
                (without
                revision service). 

            

    

    

    
      	 	
              3.2.6

            	
              Flight
                Attendant Course

            

    

    

    
      	 	 	
              Bombardier
                shall provide [***] of Frontier’s qualified flight attendant personnel.
                This course shall present general information on the Aircraft and
                detailed
                information on the operation of the passenger safety equipment and
                emergency equipment. Bombardier shall furnish for each participant
                in this
                course [***] of the Flight Attendant Training Guide (without revision
                service). Frontier shall assist Bombardier in the development of
                the
                Flight Attendant Training Guide to incorporate Frontier’s specific
                equipment and procedures. Each course shall be for [***]
                duration.
                

            

    

    

    
      	 	
              3.2.7

            	
              Start-up
                Team - Pilot Support

            

    

    

    In
      accordance with the Start-up Team Services referred to Article 1.2.4 above,
      Bombardier will provide up to [***]
      of
      Supervising Pilots (which shall be defined as a pilot of such a standard
      approved or qualified by the Airworthiness
      Authority to train Frontier’s pilots to be qualified
      by the Airworthiness
      Authority as supervisory line check airman),
      to
      supervise Frontier’s
      pilots
      during Frontier’s
      regular flight operations of the Aircraft, such assistance to take place at
      the
      initial line operation of the first Firm Aircraft and through all necessary
      and
      required proving runs. 

     

    3.3     
      Maintenance
      Training

    

        
      3.3.1     General

    

    The
      Maintenance Training shall be designed to meet the requirements of the FAA
      for
      an Aircraft Maintenance Engineer License or FAA equivalent. The training is
      also
      suitable for maintenance instructors, supervisory personnel and senior
      maintenance engineers or mechanics.

    

    Frontier’s
      personnel attending Bombardier’s maintenance training courses shall receive a
      copy of each of the following materials (without revision service), to be used
      during the training: 

    

    Maintenance
      Training Manual; 

    Engine
      Run Up Checklist and associated handouts

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 20

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    Maintenance
      Training shall consist of classroom instruction supported by appropriate
      illustrations and maintenance training aids. Maintenance Training shall include
      escorted tours of aircraft production and flight line areas whenever
      possible.

    

    3.3.2   
      Initial
      Maintenance Course

    

    Bombardier
      shall, with each Aircraft delivered, provide first line maintenance training
      for
      [***] Frontier’s qualified personnel. The course consists of instruction
      pertaining to the entire Aircraft and its systems covering systems
      familiarization, servicing and maintenance, engine and propeller installation
      and controls rigging. It includes instruction in the procedures mock-up followed
      by [***] in the flight simulator to provide ground running and taxiing training.
      The course duration shall be for [***].

    

    3.3.3   
      Specialist
      Courses

    

    Bombardier
      shall at Frontier’s request, provide a proposal for specialist courses which
      will be derived from Bombardier’s standard courses.

    

    

    3.3.4   
      Maintenance
      Recurrent Training

    

    
      	 	 	
              Bombardier
                shall, upon Frontier’s request, assist in arranging recurrent maintenance
                training at FlightSafety Canada, or at FlightSafety International
                in
                Paris, France, or Seattle,
                Washington.

            

    

    

    3.3.5   
      Course
      Training Material

    

    
      	 	 	
              Bombardier
                will provide training material in accordance with the course training
                material stipulated in each course description. Additionally, upon
                Frontier’s request, Bombardier will arrange for FlightSafety Canada to
                provide a proposal for additional pilot course training materials
                (without
                revision service). 

            

    

    

    3.3.6   
      Vendor
      Training

     

    In
      general there is no charge for Bombardier vendor training, however, travel
      and
      accommodation costs are borne by Frontier where the training is provided at
      the
      vendor’s facility. Vendor training is desirable to support additional shop
      maintenance functions such as wheels, brakes and engine shops. If requested
      by
      Frontier, Bombardier shall assist Frontier to obtain such vendor
      training.

    

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 21

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    
      	
              3.4

            	
              Insurance

            

    

    

    
      	 	3.4.1	
              Frontier
                shall at all times during flight training in Frontier’s Aircraft secure
                and maintain in effect, at its own expense, insurance policies covering
                the Aircraft including liability insurance covering public liability,
                passenger, crew, property and cargo damage, including war and allied
                perils, in amounts not less than [***] for any single
                occurrence.

            
	 	 	 
	 	
              3.4.2

            	
              The
                liability policy shall name Bombardier (and its affiliates) as additional
                insured. All insurance policies shall provide for payments despite
                any
                misrepresentations or breach of warranty by any person (other than
                the
                assured receiving payments) and shall not be subject to any offset
                by any
                other insurance carried by Bombardier except that Frontier shall
                not be
                required to provide insurance with respect to the manufacturing,
                training,
                repair and maintenance activities of Bombardier (and of its affiliates)
                and the related potential liability (product or otherwise) arising
                therefrom.

            

    

     

    ARTICLE
      4 - TECHNICAL DATA

    

    
      	
              4.1

            	
              Technical
                Data 

            

    

    

    
      	
              4.1.1

            	
              Technical
                Data Provided

            

    

    

    
      	 	
              Bombardier
                shall furnish to Frontier the Technical Data described in Attachment
“A”
                hereto (the “Technical Data”) in the then current available medium (either
                hard copy format or digital/dynaweb, SGML format as applicable) in
                quantities specified in Attachment A. The Technical Data shall be
                in the
                English language and in accordance with Specification ATA 100 D8
                Q400
                Revision 34,
                as
                applicable shall provide information on items manufactured according
                to
                Bombardier’s detailed design and in those units of measures used in the
                Specification or as may otherwise be required to reflect Aircraft
                instrumentation as may be mutually
                agreed.

            

    

    

    
      	
              4.1.2

            	
              Additional
                Technical Data

            

    

    

    
      	 	
              Any
                additional Manual(s) and associated revisions purchased over and
                above
                those listed herein, shall be subject to the terms and conditions
                specified in Bombardier’s “Manual Status and Price
                List”.

            

    

    

    
      	
              4.2

            	
              Shipment

            

    

    

    
      	 	
              All
                Technical Data furnished hereunder shall be delivered to Frontier
                Free
                Carrier (Incoterms) Bombardier’s designated facilities and at a time to be
                mutually agreed to between Frontier and
                Bombardier.

            

      	 	 

    

    Frontier’s
      shipping address and contact information is as follows:

    
      	 	Name:

      	 	
              Address:

            

    

    
      	 	
              Contact:

            

    

    
      	 	
              Phone
                #:

            

    

    
      	 	
              Fax
                #:

            

    

    
      	 	
              Shipping
                Account Number:

            

    

    

    
      
        
          
            

            Frontier
              Airlines Holdings, Inc.                                                                    Page 22

            
            

          

          
            
            

            
              

            

          

          
            
            

          

      

    

    

    
      	
               

            	
              Carrier:

            

    

    
      	 	
              Account
                Number:

            

    

    

    

    
      	
              4.3

            	
              Proprietary
                Technical Data

            

    

    

    
      	 	
              It
                is understood and Frontier acknowledges that the Technical Data provided
                herein is proprietary to Bombardier and/or its vendors. All rights
                to
                copyright belong to Bombardier and/or its vendors and the Technical
                Data
                shall be kept confidential by Frontier. Frontier agrees to use the
                Technical Data solely to maintain, operate, overhaul or repair the
                Aircraft or to make installation or alteration(s) thereto allowed
                by
                Bombardier.

            

    

    

    
      	 	
              Technical
                Data shall not be disclosed to third parties or used by Frontier
                or
                furnished by Frontier for the design or manufacture of any Aircraft
                or
                Spare Parts including Bombardier Parts or items of equipment, except
                when
                manufacture or redesign is permitted under the provisions of Annex
                A
                Article 2.5 hereof or for the maintenance of the Aircraft and then
                only to
                the extent and for the purposes expressly permitted therein, and
                provided
                further the recipient shall enter into Standard Form Non-Disclosure
                and
                Data Licensing Agreement. 

            

    

    

    4.4      
      Revision
      Service

     

    Bombardier
      will provide Frontier with revision service commencing upon delivery of the
      first Technical Data to Frontier and shall continue for [***] following delivery
      of Frontier’s first Aircraft. Subsequent revision service shall be provided
      dependent upon incorporation of Bombardier issued Service
      Bulletins.

    

    
      	
              4.4.1

            	
              Revisions
                to the Technical Data to reflect the Aircraft at Delivery Date shall
                be
                provided to Frontier within [***] following the Delivery Date of
                each of
                the Aircraft, respectively.

            

    

    

    
      	
              4.4.2

            	
              Provided
                the revision service is being supplied under the terms of this Agreement
                or by subsequent purchase order, Bombardier shall incorporate in
                the
                applicable documents all applicable Bombardier originated Service
                Bulletins, any Bombardier originated changes and Airworthiness Directives.
                The manuals shall then contain both the original and revised
                configuration.

            

    

    

    

    4.5      
      Passenger
      Information Cards

    

    Bombardier
      will provide [***] for the preparation of passenger information cards.

    

    For
      an
      additional cost, subject to negotiation, Bombardier will provide, in
      Bombardier’s standard format, laminated passenger information cards in
      quantities requested.

     

    ARTICLE
      5 - EMPLOYEES AND REPRESENTATIVES OF BOMBARDIER

    

    5.1      
      Responsibility
      for Personnel

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 23

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

    

    In
      connection with the provision of any Customer Support Services under this
      Agreement, Bombardier is an independent contractor and personnel used or
      supplied by Bombardier in performance of this Agreement shall be and remain
      employees or agents of Bombardier, and under no circumstances are such personnel
      to be considered employees or agents of Frontier. Bombardier shall have the
      sole
      responsibility for supervision and control of its personnel. Each party assumes
      full responsibility for any and all liability on account of bodily injury to
      or
      death of any of its own employees occurring during the course of their
      employment. Each party, with respect to its own employees, accepts full and
      exclusive liability in the payment of workers’ compensation or employer’s
      liability insurance premiums and for the payment of all taxes, contributions,
      or
      other payments for unemployment compensation or old age benefits, pensions
      or
      annuities imposed by any government or agency having jurisdiction.

     

    5.2      
      Regulations

    

    All
      Bombardier agents and employees that are at or on Frontier’s premises agree to
      comply with all rules and regulations established by Frontier in connection
      with
      invitees on Frontier’s premises including, but not limited to, those rules and
      regulations established in connection with access to controlled airport areas
      and display of proper identification.

     

    5.3      
      [***]

    

    [***].

    

    
      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 24

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

     

    
      	
              AIRLINE:
                FRONTIER AIRLINES 

            	
              MEDIUM

            
	
              Dash
                8 Series 400

            	
              “Supplied
                as “Fly-away” with each Aircraft

            	
              PSM
                No.

            	
              Paper
                Total Quantity

            	
              Digital/Dynaweb

              Quantity

            
	
              PUBLICATION
                TITLE

            	
               

            	
               

            	
               

            	
               

            
	
              Airplane
                Operating Manual (AOM) Inc. Pilot’s Checklist & Crash Crew Chart,
                including FCOMS 1, 2, and 3

            	
              [***]

            	
              1-84-1

            	
              [***]

            	 
	
              Powerplant
                Build-up Manual (PPBM)

            	
               

            	
              1-84-10

            	
              [***]

            	 
	
              Airport
                Planning Manual (APM)

            	
               

            	
              1-84-13

            	
              [***]

            	 
	
              Crash-Fire-Rescue
                Manual (CFRM)

            	
               

            	
              1-84-14

            	
              [***]

            	 
	
              Master
                Minimum Equipment List (MMEL Inc. MMELP & Dispatch Deviation
                Guide)

            	
               

            	
              1-84-16

            	
              [***]

            	 
	
              Maintenance
                Facilities and Equipment Planning Manual (MFEPM)

            	
               

            	
              1-84-17

            	
              [***]

            	 
	
              Consumable
                Products Manual (CPM)

            	
               

            	
              1-84-18

            	 	
              [***]

            
	
              Airplane
                Flight Manual (AFM)

            	
              [***]

            	
              1-84-1A

            	
              [***]

            	 
	
              Quick
                Reference Handbook (QRH)

            	
              [***]

            	
              1-84-1B

            	
              [***]

            	 
	
              Aircraft
                Maintenance Manual (AMM) (incl. PWC Maint. Manual)

            	
               

            	
              1-84-2

            	
              [***]

            	
              [***]

            
	
              Ramp
                Servicing Manual (RSM) Inc. Refuel/Defuel Handbook

            	
               

            	
              1-84-2S

            	 	
              [***]

            
	
              Illustrated
                Tool & Equipment Manual (ITEM)

            	
               

            	
              1-84-2T

            	 	
              [***]

            
	
              Wiring
                Manual (WM)

            	
               

            	
              1-84-2W

            	 	
              [***]

            
	
              Structural
                Repair Manual (SRM)

            	
               

            	
              1-84-3

            	 	
              [***]

            
	
              Aircraft
                Illustrated Parts Catalogue (AIPC)

            	
               

            	
              1-84-4

            	 	
              [***]

            
	
              Fault
                Isolation Manual (FIM)

            	
               

            	
              1-84-23

            	 	
              [***]

            
	
              Component
                Maintenance Manual (CMM)

            	
               

            	
              1-84-6

            	 	
              [***]

            
	
              Maintenance
                Requirements Manual (MRM)

            	
               

            	
              1-84-7

            	
              [***]

            	 
	
              Maintenance
                Planning Document (MPD)

            	
               

            	
              1-84-7P

            	 	
              [***]

            
	
              Maintenance
                Task Cards Manual (MTCM)

            	
               

            	
              1-84-7TC

            	 	
              [***]

            
	
              Non-Destructive
                Test Manual (NDT)

            	
               

            	
              1-84-7A

            	
              [***]

            	 
	
              Weight
                and Balance Manual (WBM)

            	
              [***]

            	
              1-84-8

            	
              [***]

            	 
	
              Cargo
                Loading Manual (CLM)

            	
               

            	
              1-84-8A

            	 	
              [***]

            
	
              Aircraft
                Recovery Manual (ARM)

            	
               

            	
              1-84-9

            	
              [***]

            	 
	
              Corrosion
                Prevention Manual (CPM)

            	
               

            	
              1-GEN-5

            	
              [***]

            	 
	
              Service
                Bulletins (SB) Medium: as then available 

            	
               

            	
              -

            	 	 
	
              Service
                Letters (SL)

            	
               

            	
              -

            	
              [***]

            	 
	
              DVD
                - Q400 Digital Manuals 

            
	
              (Includes
                AMM, RSM, ITEM, WM, SRM, IPC, CMM, MPD, MTCM, CLM, FIM and
                CPM)

            

    

    

    

      
        
          

          Frontier
            Airlines Holdings, Inc.                                                                    Page 25

          
          

        

        
          
          

          
            

          

        

        
          
          

        

    

    

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

      

      

      ANNEX
        B

      

      WARRANTY
        AND SERVICE LIFE POLICY

      

      

      ARTICLE
        1 - WARRANTY

      

      This
        Annex B sets
        out the warranty referred to in Article 3 of the Agreement and Article 2.25
        of
        Annex A of the Agreement. 

      

       

      
        	1.1    	Warranty
	 	 	 
	 	1.1.1	
                Subject
                  to
                  Annex B Articles 1.9, 1.10, and 2.0, Bombardier warrants that,
                  at the date
                  of delivery of the Aircraft:

              
	 	 	 

         

        
          	 	 	a)	the
                  Aircraft
                  shall conform to the Specification, except that any matter stated
                  in the
                  Specification as type characteristics, estimates or approximations
                  is
                  excluded from this Warranty;
	 	 	 	 
	 	 	b)	the
                  Aircraft
                  shall be free from defects caused by the failure of Bombardier
                  to install
                  a Vendor Part or Power Plant Part;
	 	 	 	 
	 	 	c)	the
                  Bombardier Parts installed on the Aircraft at delivery shall be
                  free from
                  defects in material or workmanship; and 
	 	 	 	 
	 	 	d)	the
                  Bombardier Parts installed on the Aircraft at delivery shall be
                  free from
                  defects in design, having regard to the state of the art as of
                  the date of
                  such design.

        

      

       

      
        	 	
                1.1.2

              	
                Subject
                  to Annex B Articles 1.2.1(b), 1.9 and 1.10, the warranty set forth
                  in
                  Annex B Article 1.1.1(c) and (d) above shall also be applicable
                  to
                  Bombardier Parts purchased as Spare Parts, effective from the date
                  of
                  delivery of such Bombardier Parts.

              

      

      

      
        	 	
                1.1.3

              	
                Bombardier
                  further warrants that, at the time of delivery, the Technical Data
                  shall
                  be free from error.

              

      

       

      
        
          
            Annex
              B
              to PA-581

            Frontier
              Airlines Holdings, Inc.                                                                    Page 1

            
            

          

          
            
            

            
              

            

          

          
            
            

          

      

       

      
        	
                1.2

              	
                Warranty
                  Period

              

      

      

      
        	 	
                1.2.1

              	
                The
                  warranty set forth in Annex B Article 1.1 shall remain in effect
                  for any
                  defect covered by the Warranty (a “Defect”) becoming apparent during the
                  following periods (individually, the “Warranty
                  Period”):

              

      

       

      
        
          	 	 	a)	for
                  failure
                  to conform to the Specification and in the installation referred
                  to in
                  Annex B Article 1.1.1(a) and 1.1.1(b), [***] from the Delivery
                  Date;
	 	 	 	 
	 	 	b)	for
                  those
                  Defects in material or workmanship or design (having regard to
                  the state
                  of the art at the time of such design) in Bombardier Parts referred
                  to in
                  Annex B Article 1.1.1(c), [***] from the date of delivery of such
                  parts;
	 	 	 	 
	 	 	c)	for
                  those
                  Defects in material or workmanship or design (having regard to
                  the state
                  of the art at the time of such design) in Bombardier Parts referred
                  to in
                  Annex B Article 1.1.2, [***] from the date of delivery of such
                  parts;
                  and
	 	 	 	 
	 	 	d)	for
                  errors in
                  the Technical Data referred to in Annex B Article 1.1.3, [***]
                  from the
                  date of delivery of the applicable Technical Data.

        

         

      

      
        	
                1.3

              	
                Repair,
                  Replacement or Rework

              

      

      

      
        	 	
                As
                  to each matter covered by this warranty, Bombardier’s sole obligation and
                  liability is expressly limited to, at Bombardier’s election, correction by
                  the repair, replacement or rework of the defective part or item
                  of
                  Technical Data. The repaired, replaced or reworked part or item
                  of
                  Technical Data which is the subject of the warranty claim shall
                  then be
                  warranted under the same terms and conditions for the then unexpired
                  portion of the Warranty Period.

              

      

      

      
        	 	
                In
                  the case
                  of a Defect relating to non-conformance with the Specification,
                  Bombardier
                  shall correct that Defect in the equipment item or part in which
                  the
                  Defect appears.

              

      

       

      
        	 	
                [***]
                  (“Fixed
                  Rate Warranty Credit”), Bombardier will issue a credit to Frontier in such
                  amount [***]. [***], Bombardier will issue a Fixed Rate Warranty
                  Credit in
                  such amount, provided however, Bombardier [***]. Notwithstanding
                  the
                  foregoing, Frontier must [***] for [***] a Fixed Rate Warranty
                  Credit is
                  claimed. All Fixed Rate Warranty Credits shall be issued to Frontier's
                  account for use by Frontier for the purchase of Bombardier goods
                  (excluding aircraft) and services.

              

      

       

      
        	
                1.4

              	
                Claims
                  Information

              

      

      

      
        	 	
                Bombardier’s
                  obligations hereunder are subject to a warranty claim to be submitted
                  in
                  writing to Bombardier’s warranty administrator, which claim shall include
                  at a minimum but not be limited to the following information, unless
                  otherwise agreed to by the Parties:

              

      

      
      

       

      
        	
              	 	 
	 	a)	
                the
                  identity
                  of the part or item involved, including the Part number, serial
                  number if
                  applicable nomenclature and the quantity claimed to be defective
                  or
                  removal tag and work task cards, as applicable;

              
	 	 	 

      

       

      
        
          
            Annex
              B
              to PA-581

            Frontier
              Airlines Holdings, Inc.                                                                    Page 2

            
            

          

          
            
            

            
              

            

          

          
            
            

          

      

       

      
        	 	b) 	the
                manufacturer’s serial number of the Aircraft from which the part was
                removed;
	 	 	 
	 	c)	the
                date the
                claimed Defect became apparent to Frontier;
	 	 	 
	 	d)	the
                total
                flight hours (and cycles if applicable) accrued on the part at the
                time
                the claimed Defect became apparent to Frontier; and
	 	 	 
	 	e)	a description
                of the claimed Defect and the circumstances pertaining
                thereto.

      

       

      1.5     
         Warranty
        Claim Procedure

       

      In
        order to enable a Warranty Claim to be adequately processed, each claim shall
        be
        addressed as follows: 

       

      
         

        
          	 	a. 	Frontier
                  shall send a written warranty claim notice (the “Warranty Notice”) by
                  facsimile or e-mail to Bombardier's warranty department within
                  [***]
                  following the date that any Defect giving rise to a warranty claim
                  becomes
                  apparent to Frontier;
	 	 	 
	 	b.	
                  Frontier
                    shall consult the Supplier Information Manual available on-line
                    via RACS
                    website for the location to which the Bombardier Part shall be
                    returned;

                
	 	 	 
	 	c.	
                  If
                    requested
                    by Bombardier, Frontier shall return the defective part, as directed
                    by
                    Bombardier, within a period of [***] following Bombardier’s request for
                    the return of such part;

                
	 	 	 
	 	d.	
                  Within
                    [***]
                    following receipt of Frontier’s Warranty Notice for a Defect accompanied
                    by Frontier’s request for permission as applicable to correct a Defect,
                    Bombardier shall notify Frontier of its decision on the request.
                    Approval
                    under this Article shall not constitute a determination as to
                    the
                    existence of a Defect as described in Annex B Article 1.1 above;
                    and

                
	 	 	 
	 	e.	Bombardier
                  commits to [***], but in any event commits to promptly disposition
                  each
                  claim. 
	 	 	 

        

      

      
      

      
        	
                1.6

              	
                Labour
                  Reimbursement

              

      

      

      
        	 	
                For
                  correction of defects Bombardier shall establish a reasonable estimate
                  for
                  the labour hours required for the repair, replacement or rework
                  of the
                  defective Bombardier Part and, if the repair, replacement or rework
                  is
                  performed by Frontier, Bombardier shall reimburse Frontier for
                  Bombardier
                  estimated hours or for Frontier’s actual labour hours, whichever is less,
                  for the repair, replacement or rework of the defective Bombardier
                  Part
                  excluding any work necessary to gain access to and to re-install
                  said
                  Bombardier Part. Such reimbursement shall be based upon Frontier’s direct
                  labour rate per man-hour plus burden rate of [***], subject to
                  annual
                  review and adjustment of such labour rate
                  as

              

      

      
        
          Annex
            B
            to PA-581

          Frontier
            Airlines Holdings, Inc.                                                                    Page 3

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      mutually
        agreed; provided, however, that this amount shall not exceed [***] of the
        Bombardier published selling labour rate.

      

      
        	
                1.7

              	
                Approval,
                  Audit, Transportation and
                  Waiver

              

      

      

      
        	 	
                All
                  warranty claims shall be subject to audit and approval by Bombardier.
                  Bombardier will use reasonable efforts to advise in writing the
                  disposition of Frontier’s warranty claim [***] following the receipt of
                  the Warranty Notice. If requested, Frontier shall return the defective
                  Bombardier Part to Bombardier’s designated facility as set forth in Annex
                  B Article 1.5. c., above. 

              

      

      

      
        	 	
                Frontier
                  shall pay all costs of transportation of the defective part from
                  Frontier
                  to Bombardier and Bombardier shall pay all costs of transportation
                  of the
                  repaired, corrected or replacement parts back to
                  Frontier.

              

      

      

      
        	
                1.8

              	
                Limitations

              

      

      

      
        	 	
                1.8.1

              	
                Bombardier
                  shall be relieved of and shall have no obligation or liability
                  under this
                  warranty if:

              

      

       

      
        	 	 	a)	the
                Aircraft
                was operated with any products or parts not specifically approved
                by
                Bombardier, unless Frontier furnishes reasonable evidence acceptable
                to
                Bombardier that such products or parts were not a cause of the Defect;
                or
	 	 	 	 
	 	 	b)	
                the
                  Aircraft
                  was not operated or maintained in accordance with the Technical
                  Data
                  listed in Attachment A of Annex A and the manufacturer’s documentation
                  furnished to Frontier (including Service Bulletins and airworthiness
                  directives) unless Frontier furnishes reasonable evidence acceptable
                  to
                  Bombardier that such operation or maintenance was not a cause of
                  the
                  Defect; or

              
	 	 	 	 
	 	 	c)	the
                Aircraft
                was not operated under normal airline use, unless Frontier furnishes
                reasonable evidence acceptable to Bombardier that such operation
                was not a
                cause of the Defect; or
	 	 	 	 
	 	 	d)	Frontier
                does
                not

         

        
          	 	 	 	1)	report
                  the
                  Defect in writing to Bombardier’s warranty administrator [***];
                  
	 	 	 	 	 
	 	 	 	2)	retain
                  the
                  Bombardier Part claimed to be defective (unless applicable to a
                  claim for
                  a Fixed Rate Warranty Credit under Article 1.3) until advised by
                  Bombardier to return such Bombardier Part to Bombardier’s designated
                  facility in order for Bombardier to finalize its evaluation of
                  the
                  warranty claim or to otherwise dispose of such Bombardier Part;
                  
	 	 	 	 	 
	 	 	 	3) 	
                  submit
                    the
                    claim in accordance with the requirements of Article 1.4;
                    and

                
	 	 	 	 	 

        

         

        
          
            
              Annex
                B
                to PA-581

              Frontier
                Airlines Holdings, Inc.                                                                    Page 4

              
              

            

            
              
              

              
                

              

            

            
              
              

            

        

         

        
          	 	 	 	4) 	
                  allow
                    Bombardier reasonable opportunity to be present during the disassembly
                    and
                    inspection of the Bombardier Part claimed to be defective; provided
                    that
                    Bombardier's presence at the removal of the Bombardier Part from
                    the
                    Aircraft shall not be required as a condition to Bombardier's
                    obligations
                    or liability under this warranty.

                

        

      

       

      
        	 	
                1.8.2

              	
                The
                  warranty does not apply to Buyer Furnished
                  Equipment.

              

      

      

      
        	
                1.9

              	
                Normal
                  Usage

              

      

      

      
        	 	
                Normal
                  wear and tear and the need for regular maintenance and overhaul
                  shall not
                  constitute a Defect or failure under this
                  warranty.

              

      

      

      
        	
                1.10

              	
                Overhaul
                  of Warranty Parts

              

      

      

      
        	 	
                Bombardier’s
                  liability for a Bombardier Part which has a Defect and is overhauled
                  by
                  Frontier within the Warranty Period shall be limited only to that
                  portion
                  of the labour and material replacement related to the
                  Defect.

              

      

      

      
        	
                1.11

              	
                No
                  Fault Found

                 

                In
                  the event that Frontier
                  submits Bombardier Parts for repair, correction or replacement
                  under a
                  warranty claim and such Bombardier Parts are determined by Bombardier
                  to
                  be serviceable (such submissions being hereinafter referred to
                  as a “No
                  Fault Claim”), Bombardier shall have the right, should Frontier’s number
                  of No Fault Claims exceed [***],
                  to determine such No Fault Claims to be excessive, taking into
                  account the
                  length of Frontier’s experience with maintaining the Aircraft and other
                  operators’ experience with a given Bombardier Part, and to charge to
                  Frontier Bombardier’s reasonable costs in connection with the processing
                  and validation of Frontier’s No Fault Claims in excess of such
                  [***]
                  threshold. 

                 

                In
                  the event that a
                  Bombardier Part returned under a warranty claim is subsequently
                  established to be serviceable, then Bombardier shall be entitled
                  to charge
                  and recover from Frontier any reasonable costs incurred by Bombardier
                  in
                  connection with processing and validating such warranty claim.
                  Notwithstanding the foregoing, in the event that repetitive in-service
                  failure occurs with respect to a Bombardier Part which is identified
                  by
                  Bombardier on a repeated basis to be “no fault found”, then Bombardier and
                  Frontier shall discuss and mutually agree to a course of further
                  action to
                  help identify the cause of failure of such part giving rise to
                  Frontier's
                  claim of warranty. In the event the failure of such is ultimately
                  confirmed to be a valid basis for a warranty claim, then the above
                  mentioned costs incurred by Bombardier and charged to Frontier
                  shall be
                  waived [***].

              

      

       

      Warranty
        [***]

       

      The
        warranties provided in this Attachment [***].

       

      
        
          
            Annex
              B
              to PA-581

            Frontier
              Airlines Holdings, Inc.                                                                    Page 5

            
            

          

          
            
            

            
              

            

          

          
            
            

          

      

       

      ARTICLE
        2 - VENDOR WARRANTIES

      

      
        	
                2.1

              	
                Warranties
                  from Vendors

              

      

      

      
        	 	
                The
                  provisions of this Annex B apply to Bombardier Parts only. However,
                  Bombardier has made or shall make reasonable efforts to obtain
                  favourable
                  warranties from vendors, with respect to Vendor Parts and Power
                  Plant
                  Parts. Except as specifically provided under this Annex B Article
                  2,
                  Bombardier shall have no liability or responsibility for any such
                  Vendor
                  Parts and Power Plant Parts and the warranties for those Vendor
                  Parts and
                  Power Plant Parts shall be the responsibility of the vendor and
                  a matter
                  as between Frontier and vendor. [***].
                  

              

      

      

      
        	
                2.2

              	
                Vendor
                  Warranty Backstop

              

      

      

      
        	 	
                For
                  those Vendor Parts installed on the Aircraft at the Delivery Date
                  or
                  subsequently purchased through Bombardier as a Spare Part, excluding
                  the
                  Power Plant or the Power Plant Parts, in the event the parties
                  agree that
                  a vendor is in default in the performance of any material obligation
                  under
                  any applicable warranty obtained by Bombardier from such vendor
                  pursuant
                  to Annex B Article 2.1 above, the warranties and all other terms
                  and
                  conditions of Annex B Article 1 shall become applicable as if the
                  Vendor
                  Parts had been a Bombardier Part, except that the warranty period
                  shall be
                  the Warranty Period as set forth herein or by the vendor’s warranty,
                  whichever is shorter and all transportation costs associated with
                  the
                  Vendor Parts shall be borne by
                  Frontier.

              

      

      

      
        	
                2.3

              	
                Bombardier’s
                  Interface Commitment

              

      

      

      
        	 	
                In
                  the event
                  of a dispute in the application of a Vendor Part warranty, at Frontier’s
                  request addressed to Bombardier’s warranty administrator, Bombardier
                  shall, without charge, [***] conduct an investigation and analysis
                  of any
                  such dispute resulting from a technical interface problem to determine,
                  if
                  possible, the cause of the interface problem and then recommend
                  feasible
                  corrective action. [***]

                 

                Frontier
                  shall furnish to Bombardier all data and information in Frontier’s
                  possession relevant to the interface problem and shall cooperate
                  with
                  Bombardier in the conduct of its investigation and such tests as
                  may be
                  required. Bombardier, at the conclusion of its investigation, shall
                  advise
                  Frontier in writing of Bombardier’s opinion as to the cause of the problem
                  and Bombardier’s recommended corrective
                  action.

              

      

       

      
        
          
            Annex
              B
              to PA-581

            Frontier
              Airlines Holdings, Inc.                                                                    Page 6

            
            

          

          
            
            

            
              

            

          

          
            
            

          

      

       

      ARTICLE
        3 - SERVICE LIFE POLICY

      

      
        	
                3.1

              	
                Applicability

              

      

      

      
        	 	
                The
                  Service Life Policy (“SLP”) described in this Annex B Article 3 shall
                  apply if fleet wide and repetitive failures occur in any Covered
                  Component
                  which is defined in Annex B Article 3.7
                  below.

              

      

      

      
        	
                3.2

              	
                Term

              

      

      

      
        	 	
                3.2.1

              	
                Should
                  such failures occur in any Covered Component within [***] following
                  delivery of the Aircraft containing such Covered Component, Bombardier
                  shall, as promptly as practicable and at its
                  option;

              

      

       

      
        	 	 	a)	design
                and/or
                furnish a correction for such failed Covered Component; or
	 	 	 	 
	 	 	b) 	
                furnish
                  a
                  replacement Covered Component (exclusive of standard parts such
                  as
                  bearings, bushings, nuts, bolts, consumables and similar low value
                  items).

              

      

       

      
        	
                3.3

              	
                Price

              

      

      

      
        	 	
                Any
                  Covered Component which Bombardier is required to furnish under
                  this SLP
                  shall be provided for at a price calculated in accordance with
                  the
                  following formula:

              

      

      

      P = [***]

      Where:

      

      
        	 	
                P

              	
                =

              	
                Price
                  of Covered Component to Frontier;

              

      

      
        	 	
                C

              	
                =

              	
                Bombardier’s
                  then current price for the Covered
                  Component;

              

      

      
        	 	
                T

              	
                =

              	
                The
                  total time to the nearest month since the Aircraft containing the
                  Covered
                  Component was delivered by
                  Bombardier

              

      

      

      
        	
                3.4

              	
                Conditions
                  and Limitations

              

      

      

      
        	 	
                3.4.1

              	
                The
                  following general conditions and limitations shall apply to the
                  SLP:

              

      

       

      
        
          	 	 	a)	
                  the
                    transportation cost for the return to Bombardier’s designated facility, if
                    practicable, of any failed Covered Component necessary for failure
                    investigation or redesigning studies shall be borne by
                    Frontier;

                
	 	 	 	 
	 	 	b) 	
                  Bombardier’s
                    obligations under this SLP are conditional upon the submission
                    of
                    reasonable proof acceptable to Bombardier that the failure is
                    covered
                    hereby;

                
	 	 	 	 
	 	 	c)	
                  Frontier
                    shall report any failure of a Covered Component in writing to
                    Bombardier’s
                    Warranty administrator within two (2) months after such failure
                    becomes
                    evident. Failure to give this required notice shall excuse Bombardier
                    from
                    all obligations with respect to such failure;

                
	 	 	 	 

        

         

        
          
            
              Annex
                B
                to PA-581

              Frontier
                Airlines Holdings, Inc.                                                                    Page 7

              
              

            

            
              
              

              
                

              

            

            
              
              

            

        

         

        
          	 	 	d)	
                  the
                    provisions of Annex B Article 1.9 of the Warranty (except for
                    subparagraphs (d) and (e) thereof) are incorporated by this reference
                    and
                    shall condition Bombardier’s obligations under this SLP with respect to
                    any Covered Component;

                
	 	 	 	 
	 	 	e)	
                  Bombardier’s
                    obligations under this SLP shall not apply to any Aircraft which
                    has not
                    been correctly modified in accordance with the specifications
                    or
                    instructions contained in the relevant Service Bulletins which
                    are
                    furnished to Frontier prior to receipt by Bombardier from Frontier
                    of any
                    notice of an occurrence which constitutes a failure in a Covered
                    Component. The provisions of this subparagraph shall not apply
                    in the
                    event that Frontier furnishes reasonable evidence acceptable
                    to Bombardier
                    that such failure was not caused by Frontier’s failure to so modify the
                    Aircraft;

                
	 	 	 	 
	 	 	f)	
                  this
                    SLP
                    shall not apply to a failure of a Covered Component if Bombardier
                    determines that such failure may not reasonably be expected to
                    occur on a
                    fleet wide and repetitive basis; 

                
	 	 	 	 
	 	 	g)	
                  this
                    SLP
                    shall not apply to a Covered Component where the failure results
                    from an
                    accident, abuse, misuse, degradation, negligence or wrongful
                    act or
                    omission, unauthorized repair or modification adversely affecting
                    a
                    Covered Component, impact or foreign object damage, to any Covered
                    Component;

                
	 	 	 	 
	 	 	h)	[***].

        

         

      

      
        	
                3.5

              	
                Coverage

              

      

      

      
        	 	
                This
                  SLP is neither a warranty, performance guarantee nor an agreement
                  to
                  modify the Aircraft to conform to new developments in design and
                  manufacturing art. Bombardier’s obligation is only to provide correction
                  instructions to correct a Covered Component or furnish replacement
                  at a
                  reduced price as provided in this
                  SLP.

              

      

      

      
        	
                3.6

              	
                Assignment

              

      

      

      
        	 	
                Frontier’s
                  rights under this SLP shall not be assigned, sold, leased, transferred
                  or
                  otherwise alienated by contract, operation of law or otherwise,
                  without
                  Bombardier’s prior written consent. Any unauthorized assignment, sale,
                  lease, transfer, or other alienation of Frontier’s rights under the SLP
                  shall immediately void all of Bombardier’s obligations under the
                  SLP.

              

      

      

      
        	
                3.7

              	
                Covered
                  Component

              

      

      

      
        	 	
                Only
                  those items or part thereof listed in Attachment A to this Annex
                  B shall
                  be deemed to be a Covered Component, and subject to the provisions
                  of this
                  SLP.

              

      

       

      
        
          
            Annex
              B
              to PA-581

            Frontier
              Airlines Holdings, Inc.                                                                    Page 8

            
            

          

          
            
            

            
              

            

          

          
            
            

          

      

       

      ARTICLE
        4 - GENERAL

      

      
        	
                4.1

              	
                It
                  is agreed that Bombardier shall not be obligated to provide to
                  Frontier
                  any remedy which is a duplicate of any other remedy which has been
                  provided to Frontier under any other part of this Annex
                  B.

              

      

       

      
        
          
            Annex
              B
              to PA-581

            Frontier
              Airlines Holdings, Inc.                                                                    Page 9

            
            

          

          
            
            

            
              

            

          

          
            
            

          

      

       

      ARTICLE
        5 - DISCLAIMER

       

      
        	5.1	
                BOMBARDIER
                  SHALL HAVE NO OBLIGATION OR LIABILITY (AT LAW OR IN EQUITY) IN
                  CONTRACT
                  (INCLUDING, WITHOUT LIMITATION, WARRANTY), IN TORT (WHETHER OR
                  NOT ARISING
                  FROM THE ACTIVE, PASSIVE OR IMPUTED NEGLIGENCE OR STRICT PRODUCTS
                  LIABILITY OF BOMBARDIER
                  OR ITS AFFILIATES) OR OTHERWISE, FOR ANY INCIDENTAL OR CONSEQUENTIAL
                  DAMAGES, INCLUDING WITHOUT LIMITATION LOSS OF USE, LOSS OF REVENUE
                  OR LOSS
                  OF PROFIT, WITH RESPECT TO:1) ANY
                  DEFECT IN THE BOMBARDIER PARTS OR TECHNICAL DATA OR ANY OTHER THING
                  DELIVERED UNDER THIS
                  AGREEMENT;

              

      

       

      
        	 	1) 	
                ANY
                  DEFECT IN THE BOMBARDIER PARTS OR TECHNICAL DATA OR ANY OTHER THING
                  DELIVERED UNDER THIS AGREEMENT;

              
	 	 	 
	 	2) 	ANY
                DELAY IN PERFORMANCE OR COMPLETE FAILURE TO PERFORM ITS OBLIGATIONS
                SET
                FORTH IN THIS ANNEX B FOR ANY REASON WHATSOEVER; OR
	 	 	 
	 	3) 	ANY
                FAILURE TO PERFORM ANY OF ITS OTHER OBLIGATIONS UNDER THIS
                AGREEMENT.
	 	 	 
	 	NOTHING
                IN THIS ARTICLE SHALL BE CONSTRUED TO ALTER OBLIGATIONS EXPRESSLY
                ASSUMED
                BY BOMBARDIER IN OTHER PROVISIONS OF THE AGREEMENT, INCLUDING WITHOUT
                LIMITATION THE PROVISIONS OF THIS ANNEX
“B”.

      

       

       

      
        
          
            Annex
              B
              to PA-581

            Frontier
              Airlines Holdings, Inc.                                                                    Page 10

            
            

          

          
            
            

            
              

            

          

          
            
            

          

      

       

       

      Annex
        B - Attachment A

      COVERED
        COMPONENTS

      WING

      
        	 	
                (a)

              	
                Upper
                  and lower wing skins and stringers between front to rear
                  spars.

              

      

      
        	 	 	 

        	 	
                (b)

              	
                Wing
                  spar caps, webs and uprights.

              

        	 	 	 

      

      
        	 	
                (c)

              	
                Main
                  box (front spar to rear spar) wing
                  ribs.

              

      

      
        	 	 	 

        	 	
                (d)

              	
                Main
                  box splice plates, fittings.

              

        	 	 	 

      

      
        	 	
                (e)

              	
                Wing
                  to nacelle structural attachments.

              

      

      
        
          	 	 	 

          	 	
                  (f)

                	
                  Wing
                    to fuselage structural attachments.

                

          	 	 	 

        

      

      
        	 	
                (g)

              	
                Support
                  structure in the wing to spoilers, spoiler actuators and
                  ailerons.

              

      

      
        	 	 	 

        	 	
                (h)

              	
                Main
                  gear support structure.

              

        	 	 	 

      

      
        	 	
                (i)

              	
                Engine
                  support fittings.

              

      

      

      FUSELAGE

      
        	 	
                (a)

              	
                External
                  surface skins and doublers, stringers, circumferential frames between
                  forward pressure bulkhead and aft pressure dome, excluding all
                  systems,
                  insulation, lining and decorative clips and
                  brackets.

              

      

      
        	 	 	 

        	 	
                (b)

              	
                Window
                  and windshield structure but excluding the windows and
                  windshields.

              

        	 	 	 

      

      
        	 	
                (c)

              	
                Primary
                  structure frames around body openings for passenger doors, cargo/baggage
                  doors and emergency exits.

              

      

      
        	 	 	 

        	 	
                (d)

              	
                Nose
                  gear support structure.

              

        	 	 	 

      

      
        	 	
                (e)

              	
                Floor
                  beams and supporting structure in the flight compartment and cabin
                  including the lavatory, excluding seat tracks in both
                  areas.

              

      

      
        	 	 	 

        	 	
                (f)

              	
                Forward
                  pressure bulkhead and aft pressure dome.

              

        	 	 	 

      

      
        	 	
                (g)

              	
                Floor
                  beams and supporting structure in the baggage compartment providing
                  same
                  is not damaged through abusive handling of baggage or
                  cargo.

              

      

       

      
        
          
            Annex
              B
              to PA-581

            Frontier
              Airlines Holdings, Inc.                                                                    Page 11

            
            

          

          
            
            

            
              

            

          

          
            
            

          

      

      
 

      VERTICAL
        TAIL
        (including fuselage aft of aft pressure dome)

      

      
        	 	
                (a)

              	
                Fuselage
                  external surface skins, stringers and frames between aft pressure
                  dome and
                  rear fin spar frame.

              

      

      
        	 	 	 

        	 	
                (b)

              	
                Fin
                  skins and stiffeners between front and rear
                  spars.

              

        	 	 	 

      

      
        	 	
                (c)

              	
                Fin
                  front, centre and rear spar caps, webs and
                  uprights.

              

      

      
        	 	 	 

        	 	
                (d)

              	
                Main
                  box (front spar to rear spar) fin ribs.

              

        	 	 	 

      

      
        	 	
                (e)

              	
                Fin
                  hinge and actuator support structure for rudder and
                  elevator.

              

      

      
        	 	 	 

        	 	
                (f)

              	
                Fore
                  rudder structure and hinge and actuator
                  brackets.

              

        	 	 	 

      

      
        	 	
                (g)

              	
                Aft
                  rudder forward cell structure and hinge and radius rod
                  brackets.

              

      

      

      HORIZONTAL
        TAIL

      

      
        	 	
                (a)

              	
                Tailplane
                  skins and stringers.

              

      

      
        	 	 	 

        	 	
                (b)

              	
                Tailplane
                  spar caps, webs and uprights.

              

        	 	 	 

      

      
        	 	
                (c)

              	
                Tailplane
                  main box (front spar to rear spar)
                  ribs.

              

      

      
        	 	 	 

        	 	
                (d)

              	
                Tailplane
                  hinge support structure for elevator.

              

        	 	 	 

      

      
        	 	
                (e)

              	
                Elevator
                  forward cell structure and hinge and actuator
                  brackets.

              

      

      
        	 	 	 

        	 	
                (f)

              	
                Horizontal
                  tail structure attachments.

              

      

       

      
        
          
            Annex
              B
              to PA-581

            Frontier
              Airlines Holdings, Inc.                                                                    Page 12

            
            

          

          
            
            

            
              

            

          

        

         

        
          	
                  

                   

                   

                   

                   

                   

                   

                   

                	
                  AEROSPACE

                   

                  Bombardier
                    Inc.

                  123
                    Garratt Boulevard, N17-27 

                  Downsview,
                    Ontario, Canada M3K 1Y5

                  www.bombardier.com

                   

                  TEL 416-633-7310

                  FAX
                     416-375-4533

                

        

      

    

    September
      1, 2006

    

    Mr.
      Paul H. Tate

    Senior
      Vice President Finance & Chief Financial Officer

    Frontier
      Airlines Holdings, Inc.

    7001
      Tower Road 

    Denver,
      Colorado

    80249-7312

    USA

    

    

    SUBJECT:
      AIRCRAFT
      CREDIT

    

    Letter
      Agreement No. 01 to Purchase Agreement No. PA-581 dated September 1, 2006 (the
      “Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
      (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
      purchase of ten (10) firm and ten (10) option Bombardier Q Series 400 Aircraft
      (“Aircraft”).

    

    Dear
      Mr. Tate,

    

     

    This
      Letter Agreement ("Letter Agreement"), when accepted and agreed to by Frontier
      contemporaneously with the execution of the Agreement, will evidence our further
      agreement with respect to the matters set forth below.

    

    All
      capitalized terms used but not defined herein shall have the same meaning given
      such terms in the Agreement (including related Letter Agreements, Annexes and
      Schedules).

    

    
      	
              1.0

            	
              In
                further consideration of Frontier having entered into the Agreement,
                Bombardier will issue to Frontier at Delivery of each Aircraft under
                the
                Agreement a credit in the amount of [***] (“Aircraft Credit”).
                The
                amount of the Aircraft Credit is stated in [***]
                United States Dollars and shall be adjusted to the Delivery Date
                by an
                amount equal to the lesser of: (A) the percentage amount calculated
                in
                accordance with the Economic Adjustment Formula, or (B) [***],
                multiplied by the amount of the Aircraft Credit; provided that in
                no event
                shall any adjustment cause the Aircraft Credit to be less than the
                fixed
                amount stated above. The Aircraft Credit will be applied against
                Frontier's final payment due Bombardier for the Aircraft under Article
                5.2
                of the Agreement at Delivery.

            

    

    

    
      	
              2.0

            	
              Bombardier's
                obligation to pay and/or provide the Aircraft Credit shall apply
                equally
                to Option Aircraft for which Frontier has elected to purchase from
                Bombardier in accordance with Letter Agreement No.
                2.

            

    

     

    
      
        
          LA
            581-01
            (Aircraft
            Credit)                                                            - 1
            -

          Initials 

          

          Frontier
             ________  Bombardier  ________

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

     

    
      	3.0	
              The
                provisions of Article 18 shall apply equally to this Letter Agreement.
                In
                the event of the termination of the Agreement in accordance with
                its
                terms, this Letter Agreement shall become automatically null and
                void with
                respect to any Aircraft not yet delivered; provided that Bombardier
                shall
                have no right to claim a credit, refund or set-off in respect of
                any
                Aircraft Credit given to Frontier prior to the date of such
                termination.

            
	 	 
	4.0	
              This
                Letter
                Agreement constitutes an integral part of the Agreement and is subject
                to
                the terms and conditions contained
                therein.

            

    

    
      
        
          
            LA
              581-01
              (Aircraft
              Credit)                                                           - 2
              -

            Initials 

            

            Frontier
               ________  Bombardier  ________

            

            

            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

    Should
      there be any inconsistency between this Letter Agreement and the Agreement
      with
      respect to the subject matter covered by the terms hereof, then the terms of
      this Letter Agreement shall prevail. 

    

    

    

    
      	
              Yours
                very truly,

            	 	
              Acknowledged
                and Accepted

            
	 	 	 
	 	 	 
	
              BOMBARDIER
                INC

            	 	
              Frontier
                Airlines Holdings, Inc.

            
	
              Bombardier
                Aerospace

            	 	 
	
              Regional
                Aircraft

            	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              (SIGNED
                ON FILE)

            	 	
              (SIGNED
                ON FILE)

            
	 	 	 
	
              Name:
                Ross Gray

            	 	
              Name:
                Paul H. Tate

            
	
              Title:
                Director, Contracts

            	 	
              Title:
                Senior Vice President Finance &

            
	
               

            	 	
                      
                Chief Financial Officer

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              (SIGNED
                ON FILE)

            	 	
              (SIGNED
                ON FILE)

            
	 	 	 
	
              Name:
                Marianella de la Barrera

            	 	
              Name:
                Jeff S. Potter

            
	
              Title:
                Senior Account Executive, Contracts

            	 	
              Title:
                President & Chief Executive
                Officer

            

    

     

    
      
        
          
            LA
              581-01
              (Aircraft
              Credit)                                                           - 3
              -

            Initials 

            

            Frontier
               ________  Bombardier  ________

            

            

            

          

          
          

        

        
          
          

          
            

          

        

         

      

    

     

    
      
        	
                

                 

                 

                 

                 

                 

                 

                 

              	
                AEROSPACE

                 

                Bombardier
                  Inc.

                123
                  Garratt Boulevard, N17-27 

                Downsview,
                  Ontario, Canada M3K 1Y5

                www.bombardier.com

                 

                TEL 416-633-7310

                FAX
                   416-375-4533

              

      

    

    

    September
      1, 2006

     

    Mr.
      Paul H. Tate

    Senior
      Vice President Finance & Chief Financial Officer

    Frontier
      Airlines Holdings, Inc.

    7001
      Tower Road 

    Denver,
      Colorado

    80249-7312

    USA

    

    

    SUBJECT:
      OPTION
      AIRCRAFT

    

    Letter
      Agreement No. 02 to Purchase Agreement No. PA-581 dated September 1, 2006 (the
      “Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
      (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
      purchase of ten (10) Bombardier Q Series 400 Aircraft
      (“Aircraft”).

    

    Dear
      Mr. Tate,

    

     

    This
      Letter Agreement ("Letter Agreement"), when accepted and agreed to by Frontier
      contemporaneously with the execution of the Agreement, will evidence our further
      agreement with respect to the matters set forth below.

    

    All
      capitalized terms used but not defined herein shall have the same meaning given
      such terms in the Agreement (including related Letter Agreements, Annexes and
      Schedules).

    

    
      	
              1.0

            	
              In
                further consideration of Frontier having entered into the Agreement,
                Bombardier agrees to reserve an additional ten (10) Bombardier Q400
                Aircraft (the "Option Aircraft") with Scheduled Delivery Months set
                forth
                in paragraph 3 for the benefit of Frontier under the following general
                conditions:

            

    

    

    Pricing
      & Offerability

    

    
      	 	
              1.1

            	
              Frontier
                may exercise its option to purchase the Option Aircraft by providing
                Bombardier with irrevocable written notice of exercise ("Option Exercise
                Notice") (substantially in the form set out as Attachment A hereto)
                no
                later than [***] prior to the first day of the month of the Scheduled
                Delivery Month of the applicable Option Aircraft. The Option Deposit,
                as
                later defined, will be applied against the first payment due under
                the
                Agreement for the relevant Option Aircraft.

            

    

     

    
       

      
        
          
            LA
              581-02
              (Optional
              Aircraft)                                            
              - 1 -

            Initials 

            

            Frontier
               ________  Bombardier  ________

             

             

             

          

        

        
          
          

          
            

          

        

         

      

    

    
       

    

    
      	 	
              1.2

            	
              Immediately
                upon delivery of the Option Exercise Notice to Bombardier, the Option
                Aircraft shall be deemed an "Aircraft" under the Agreement and the
                terms
                of the Agreement shall apply mutatis mutandis to the purchase of
                such
                Option Aircraft, save and except as provided herein and in Letter
                Agreement No. 15 (Delivery
                Flexibility).

            

    

    

    
      	 	
              1.3

            	
              Within
                [***] following delivery of such Option Exercise Notice, the parties
                shall
                enter into an amendment of the Agreement [***], to reflect the increased
                number of Aircraft in Frontier’s fleet and otherwise memorializing the
                addition of the Option Aircraft to the
                Agreement.

            

    

    

    
      	 	
              1.4

            	
              The
                Aircraft Purchase Price for the Option Aircraft shall be as set forth
                in
                the Agreement (including related Letter Agreements, Annexes and
                Schedules). Frontier shall have [***] from the date of delivery of
                the
                Option Exercise Notice to make any payments to Bombardier due under
                Article 5.2 of the Agreement with respect to such Option
                Aircraft.

            

    

    

    2.0      
      Option
      Deposits and Payments

    

    
      	 	
              2.1

            	
              Bombardier
                acknowledges having previously received [***]
                per Option Aircraft (the "Option Deposit") for a total of [***].
                

            

    

    

    
      	 	
              2.2

            	
              In
                the event Frontier elects not to exercise its option to purchase
                an Option
                Aircraft, the Option Deposit in respect of that Option Aircraft shall
                be
                returned to Frontier, together with interest accrued thereon, by
                wire
                transfer in immediately available funds by Bombardier within two
                Business
                Days following the date the option to purchase the Option Aircraft
                lapses.
                

            

    

     

    
      
        	 	
                2.3

              	
                
                  Frontier
                    shall make payment or cause to be made in accordance with Article
                    5.0 of
                    the Agreement for Option Aircraft exercised to Firm Aircraft
                    as
                    follow:

                

              

      

    

    

    
      	(i)       
               	
              the
                amount that would have been payable had the Option Aircraft been
                an
                Aircraft under the Agreement on the date hereof up to the date of
                the
                Option Exercise Notice will be paid within [***]
                following the date of such Option Exercise Notice (net of Deposits),
                and
                

            

    

    

    
      	(ii)      
               	
              any
                remaining payments due under the Agreement with respect to such Aircraft
                will be paid in accordance with Article 5.0 of the
                Agreement.

            

    

    

    
      	
              3.0

            	
              Scheduled
                Delivery Months of the Option Aircraft are as follows: 

            

    

     

    
      
        
          
            LA
              581-02
              (Optional
              Aircraft)                                            
              - 2 -

            Initials 

            

            Frontier
               ________  Bombardier  ________

             

             

             

          

        

        
          
          

          
            

          

        

         

      

    

    
      

        
          	
                  Option
                    Aircraft

                	
                  Scheduled
                    Delivery Month

                
	 	 
	
                  First
                    Option Aircraft

                	
                  March
                    2008

                
	
                  Second
                    Option Aircraft

                	
                  March
                    2008

                
	
                  Third
                    Option Aircraft

                	
                  April
                    2008

                
	
                  Fourth
                    Option Aircraft

                	
                  May
                    2008

                
	
                  Fifth
                    Option Aircraft

                	
                  June
                    2008

                
	
                  Six
                    Option Aircraft

                	
                  July
                    2008

                
	
                  Seventh
                    Option Aircraft

                	
                  September
                    2008

                
	
                  Eighth
                    Option Aircraft

                	
                  October
                    2008

                
	
                  Ninth
                    Option Aircraft

                	
                  November
                    2008

                
	
                  Tenth
                    Option Aircraft

                	
                  December
                    2008

                

        

      

       

    

    
      	4.0	
              [***]

               

              
                [***]

              

            
	 	 
	5.0	
              The
                provisions of Article 18 shall apply equally to this Letter Agreement.
                In
                the event of the termination of the Agreement in accordance with
                its
                terms, this Letter Agreement shall become automatically null and
                void with
                respect to any Aircraft not yet delivered.

            
	 	 
	7.0	This
              Letter
              Agreement constitutes an integral part of the Agreement and is subject
              to
              the terms and conditions contained
              therein.

    

     

    
      
        
          
            LA
              581-02
              (Optional
              Aircraft)                                            
              - 3 -

            Initials 

            

            Frontier
               ________  Bombardier  ________

             

             

             

          

        

        
          
          

          
            

          

        

         

      

    

    Should
      there be any inconsistency between this Letter Agreement and the Agreement
      with
      respect to the subject matter covered by the terms hereof, then the terms of
      this Letter Agreement shall prevail. 

    

    

    

    
      	
              Yours
                very truly,

            	 	
              Acknowledged
                and Accepted

            
	 	 	 
	 	 	 
	
              BOMBARDIER
                INC

            	 	
              Frontier
                Airlines Holdings, Inc.

            
	
              Bombardier
                Aerospace

            	 	 
	
              Regional
                Aircraft

            	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              (SIGNED
                ON FILE)

            	 	
              (SIGNED
                ON FILE)

            
	 	 	 
	
              Name:
                Ross Gray

            	 	
              Name:
                Paul H. Tate

            
	
              Title:
                Director, Contracts

            	 	
              Title:
                Senior Vice President Finance &

            
	
               

            	
               

            	
                      
                Chief Financial Officer

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              (SIGNED
                ON FILE)

            	 	
              (SIGNED
                ON FILE)

            
	 	 	 
	
              Name:
                Marianella de la Barrera

            	 	
              Name:
                Jeff S. Potter

            
	
              Title:
                Senior Account Executive, Contracts

            	 	
              Title:
                President & Chief Executive
                Officer

            

    

    

    
      
        
          
            LA
              581-02
              (Optional
              Aircraft)                                            
              - 4 -

            Initials 

            

            Frontier
               ________  Bombardier  ________

             

             

             

          

        

        
          
          

          
            

          

        

         

      

    

    

    ATTACHMENT
      A TO LETTER AGREEMENT NO. 2

    

    FORM
      OF OPTION EXERCISE NOTICE

    
 

    Date:

    

    In
      accordance with Letter Agreement No. 02 to Purchase Agreement No. 581
      dated______, 2006 between Bombardier and Frontier Airlines relating to the
      purchase of ten (10) Q400 Aircraft, Frontier hereby confirms it is exercising
      its option to purchase the [ ] Option Aircraft scheduled for delivery in [ ],
      200 ].

    

    Frontier
      will wire the pre-delivery payments due with respect to such Aircraft pursuant
      to Article 5.0 of the Agreement within [***]
      of the
      date of this notice. 

    

    Yours
      truly,

    

    

    

    Frontier
      Airlines Holdings, Inc

    Name:

    Title:

     

    
      
        
          
            LA
              581-02
              (Optional
              Aircraft)                                            
              - 5 -

            Initials 

            

            Frontier
               ________  Bombardier  ________

             

             

             

          

        

        
          
          

          
            

          

        

         

      

    

    
      
        	
                

                 

                 

                 

                 

                 

                 

                 

              	
                AEROSPACE

                 

                Bombardier
                  Inc.

                123
                  Garratt Boulevard, N17-27 

                Downsview,
                  Ontario, Canada M3K 1Y5

                www.bombardier.com

                 

                TEL 416-633-7310

                FAX
                   416-375-4533

              

      

    

    
      
         

      

      September
        1, 2006

      

      Mr.
        Paul H. Tate

      Senior
        Vice President Finance & Chief Financial Officer

      Frontier
        Airlines Holdings, Inc.

      7001
        Tower Road 

      Denver,
        Colorado

      80249-7312

      USA

      

      

      SUBJECT:
        ADDITIONAL
        CUSTOMER SUPPORT

      

      Letter
        Agreement No. 03 to Purchase Agreement No. PA-581 dated September 1, 2006
        (the
“Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
        (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
        purchase of ten (10) Bombardier Q Series 400 Aircraft
        (“Aircraft”).

      

      Dear
        Mr. Tate,

       

      This
        Letter Agreement ("Letter Agreement"), when accepted and agreed to by Frontier
        contemporaneously with the execution of the Agreement, will evidence our
        further
        agreement with respect to the matters set forth below.

      

      All
        capitalized terms used but not defined herein shall have the same meaning
        given
        such terms in the Agreement (including related Letter Agreements, Annexes
        and
        Schedules).

      

      
        	
                1.0

              	
                Training
                  Credit Entitlements

              
	 	 	 
	
                 

              	
                1.1

              	
                Bombardier
                  will provide the option of [***],
                  subject to availability, as required by Frontier to fulfill its
                  training
                  requirements (“Training Credits”). 

              
	 	 	 
	
                 

              	
                1.2

              	
                Additionally,
                  Frontier may elect to use the Training Credits to [***]
                  as required by Frontier to fulfill its training requirements.
                  

              
	 	 	 
	
                 

              	
                1.3

              	
                [***]

              
	 	 	 
	
                2.0

              	
                Technical
                  Publications

              
	 	 	 
	
                 

              	
                2.1

              	
                In
                  further consideration of Frontier having entered into the Agreement,
                  Bombardier will provide Frontier [***]
                  in hard copy format as well as make all
                  publications

              

      

      
        
          
            
              LA
                581-03
                (Additional Customer
                Support)                                    - 1
                -

              Initials 

              

              Frontier
                 ________  Bombardier  ________

               

               

               

            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      
        	
                 

              	 	
                available
                  in digital, SGML format (or other digital format, where mutually
                  agreed)
                  as then available on line at www.racs.bombardier.com (“Technical
                  Data”).

              
	 	 	 
	
                 

              	
                2.2

              	
                The
                  following is a complete set of the Technical Data. Bombardier agrees
                  that
                  the Technical Data will be in accordance with ATA 100 Rev
                  34.

              

      

      

      

      
        	
                *Aircraft
                  Maintenance Manual

              	
                Power
                  Plant Build-up Manual

              
	
                *Wiring
                  Diagram Manual

              	
                *Aircraft
                  Illustrated Parts Catalog

              
	
                Illustrated
                  Tool & Equipment Manual

              	
                Structural
                  Repair Manual

              
	
                *Fault
                  Isolation Manual

              	
                System
                  Schematic Manual

              
	
                Non-Destructive
                  Test Manual

              	
                Airplane
                  Flight Manual

              
	
                Master
                  Index of Tech. Publications

              	
                Flight
                  Crew Operating Manual

              
	
                Flight
                  Planning & Cruise Control

              	
                Pilot
                  Checklist

              
	
                Airport
                  Planning Manual

              	
                Refuel/Defuel
                  Handbook

              
	
                Quick
                  Reference Handbook

              	
                Component
                  Maintenance Manuals

              
	
                Weight
                  and Balance Manual

              	
                Master
                  Minimum Equip. Manual

              
	
                Passenger
                  Information Sheet

              	
                Maintenance
                  Planning Manual

              
	
                Maintenance
                  Requirements Manual

              	
                ATA
                  Chapter Breakdown

              
	
                Power
                  Plant Ground Run Manual

              	
                Crash
                  Crew Chart

              
	
                Maintenance
                  Task Cards

              	
                Dispatch
                  Deviation Guide

              
	
                Service
                  Bulletins

              	
                AMTOSS
                  & User Guide

              
	
                Maintenance
                  Facilities & 

                Equipment
                  Planning Manual

              	 

      

      

      *
        Manuals currently available in CD format.

      

      

      
        	
                 

              	
                2.
                  3

              	
                Additionally,
                  Bombardier shall provide to Frontier [***]
                  revision
                  service to the Technical Data for Bombardier originated changes
                  and
                  mandatory changes made pursuant to ADs or other regulatory requirements
                  for a period of [***]
                  after delivery of the First Aircraft. Such revisions shall be provided
                  to
                  Frontier within [***];
                  however, temporary revisions for urgent changes shall be provided
                  to
                  Frontier as available.

              
	 	 	 
	
                3.0

              	
                On-line
                  Support and Engineering
                  Drawings

              
	 	 	 
	
                 

              	
                3.1

              	
                Currently,
                  select manuals are available on line via the Regional Aircraft
                  Customer
                  Support (RACS) website though Bombardier is currently working to
                  post the
                  remainder. Bombardier provides its operators with free of charge
                  access to
                  all functionalities of the RACS website. Drawings are being prepared
                  for
                  inclusion on

              

      

      
        
          
            LA
              581-03
              (Additional Customer
              Support)                                    - 2
              -

            Initials 

            

            Frontier
               ________  Bombardier  ________

             

             

             

          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                 

              	 	
                the
                  website on a chargeable basis with an expected completion date
                  of the
                  4th
                  Quarter 2007.

              
	 	 	 
	
                 

              	
                3.2

              	
                Additionally,
                  so long as Bombardier provides a revision service for the Technical
                  Data,
                  Bombardier will [***]
                  in accordance with [***].
                  

              
	 	 	 
	
                 

              	
                3.3

              	
                Existing
                  engineering drawings will be made available to Frontier or its
                  designate
                  [***]
                  for the [***]
                  following delivery of the First Aircraft, solely for the purpose
                  of
                  developing STCs for Frontier’s Q400 fleet and provided Frontier or its
                  designate enters into a standard data license agreement with respect
                  to
                  such engineering drawings.

              
	 	 	 
	
                4.0

              	
                [***]

              	 
	 	 	 
	
                 

              	
                4.1

              	
                [***]:

              
	 	 	 
	 	 	 
	
                 

              	
                4.2.
                  

              	[***].
	 	 	 
	
                 

              	
                4.3

              	
                [***].
                  

              
	 	 	 
	
                5.0

              	
                The
                  provisions of Article 18 shall apply equally to this Letter Agreement.
                  In
                  the event of the termination of the Agreement in accordance with
                  its
                  terms, this Letter Agreement shall become automatically null and
                  void with
                  respect to any Aircraft not yet delivered.

              
	 	 	 
	
                6.0

              	
                This
                  Letter Agreement constitutes an integral part of the Agreement
                  and is
                  subject to the terms and conditions contained
                  therein.

              

      

       

      
        
          
            
              LA
                581-03
                (Additional Customer
                Support)                                    - 3
                -

              Initials 

              

              Frontier
                 ________  Bombardier  ________

               

               

               

            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

       

      Should
        there be any inconsistency between this Letter Agreement and the Agreement
        with
        respect to the subject matter covered by the terms hereof, then the terms
        of
        this Letter Agreement shall prevail. 

      

      

      

      
        	
                Yours
                  very truly,

              	 	
                Acknowledged
                  and Accepted

              
	 	 	 
	 	 	 
	
                BOMBARDIER
                  INC

              	 	
                Frontier
                  Airlines Holdings, Inc.

              
	
                Bombardier
                  Aerospace

              	 	 
	
                Regional
                  Aircraft

              	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                (SIGNED
                  ON FILE)

              	 	
                (SIGNED
                  ON FILE)

              
	 	 	 
	
                Name:
                  Ross Gray

              	 	
                Name:
                  Paul H. Tate

              
	
                Title:
                  Director, Contracts

              	 	
                Title:
                  Senior Vice President Finance &

              
	
                 

              	 	
                        
                  Chief Financial Officer

              
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                (SIGNED
                  ON FILE)

              	 	
                (SIGNED
                  ON FILE)

              
	 	 	 
	
                Name:
                  Marianella de la Barrera

              	 	
                Name:
                  Jeff S. Potter

              
	
                Title:
                  Senior Account Executive, Contracts

              	 	
                Title:
                  President & Chief Executive
                  Officer

              

      

      

       

    

     

    
      
        
          LA
            581-03
            (Additional Customer
            Support)                                    - 4
            -

          Initials 

          

          Frontier
             ________  Bombardier  ________

           

           

           

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                

                 

                 

                 

                 

                 

                 

                 

              	
                AEROSPACE

                 

                Bombardier
                  Inc.

                123
                  Garratt Boulevard, N17-27 

                Downsview,
                  Ontario, Canada M3K 1Y5

                www.bombardier.com

                 

                TEL 416-633-7310

                FAX
                   416-375-4533

              

      

    

    September
      1, 2006

    

    Mr.
      Paul H. Tate

    Senior
      Vice President Finance & Chief Financial Officer

    Frontier
      Airlines Holdings, Inc.

    7001
      Tower Road 

    Denver,
      Colorado

    80249-7312

    USA

    

    SUBJECT:
      BUYER
      FURNISHED EQUIPMENT

    

    Letter
      Agreement No. 04 to Purchase Agreement No. PA-581 dated September 1, 2006 (the
      “Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
      (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
      purchase of ten (10) Bombardier Q Series 400 Aircraft
      (“Aircraft”).

    

    Dear
      Mr. Tate,

    

    This
      Letter Agreement ("Letter Agreement"), when accepted and agreed to by Frontier
      contemporaneously with the execution of the Agreement, will evidence our further
      agreement with respect to the matters set forth below.

    

    All
      capitalized terms used but not defined herein shall have the same meaning given
      such terms in the Agreement (including related Letter Agreements, Annexes and
      Schedules).

    

    
      	
              1.0

            	
              Notification
                and Acceptance

            
	 	 	 	 
	
               

            	
              1.1

            	
              Frontier
                shall notify Bombardier in writing not less than [***] prior
                to the delivery of the applicable Aircraft that Frontier wishes to
                have
                buyer furnished equipment ("BFE") incorporated into such Aircraft.
                Frontier shall also provide details of:

            
	 	 	 	 
	
               

            	 	
              (i)

            	
              weights
                and dimensions of the BFE;

            
	 	 	 	 
	
               

            	 	
              (ii)

            	
              test
                equipment or special tools required to incorporate the BFE;
                and

            
	 	 	 	 
	
               

            	 	
              (iii)

            	
              any
                other information Bombardier may reasonably require.

            
	 	 	 	 
	
               

            	
              1.2

            	
              Within
                [***]
                thereafter, Bombardier shall advise Frontier of its acceptance or
                rejection of the BFE and of the dates by which each item of BFE is
                required by Bombardier. If required the parties hereto shall execute
                a
                Change Order in accordance with Article 10.1 of the Agreement to
                cover the
                BFE accepted by Bombardier. 

            

    

    

     

     

    
      
        
          LA
            581-04
            (BFE)                                             - 1
            -

          Initials 

          

          Frontier
             ________  Bombardier  ________

           

           

           

        

      

      
        
        

        
          

        

      

      
        
        

    

    
      	
              2.0

            	
              Acceptance
                and Incorporation

            
	 	 	 	 	 
	
               

            	
              2.1

            	
              The
                BFE shall be incorporated in the manufacturing process of the Aircraft
                subject to the following conditions:

            
	 	 	 	 	 
	
               

            	 	
              (i)

            	
              title
                to the BFE shall remain at all times with Frontier and risk of loss
                of the
                BFE shall remain at all times with Frontier except for damages caused
                by
                Bombardier’s gross negligence or wilful misconduct;

            
	 	 	 	 	 
	
               

            	 	
              (ii)

            	
              the
                BFE must be received Carriage Paid To (Incoterms 2000) at Bombardier’s
                plant or such other place as Bombardier may designate, no later than
                the
                date notified pursuant to Article 1.1 of the Agreement, free and
                clear of
                any taxes, duties, licenses, charges, liens or other similar
                claims;

            
	 	 	 	 	 
	
               

            	 	
              (iii)

            	
              the
                BFE shall meet:

            
	 	 	 	 	 
	
               

            	 	 	
              (A)
                

            	
              the
                equipment specification and certification of the applicable TSO,
                the
                technical requirements as defined by Frontier and the Bombardier
                envelope
                and interface specifications for such BFE equipment;
                and

            
	 	 	 	 	 
	
               

            	 	 	
              (B)
                

            	
              the
                requirements of the Airworthiness Authorities;

            
	 	 	 	 	 
	
               

            	 	
              and
                Bombardier shall promptly provide Frontier with such requirements
                following receipt of Notice from Frontier that it wishes to have
                such BFE
                installed on the Aircraft;

            
	 	 	 	 	 
	
               

            	 	
              (iv)

            	
              the
                BFE shall be delivered to Bombardier in good condition and ready
                for
                immediate incorporation into the Aircraft. Bombardier shall, upon
                receipt,
                inspect the BFE as to quantity and apparent defects and inform Frontier
                of
                any discrepancies and the required corrective actions to be
                taken;

            
	 	 	 	 	 
	
               

            	 	
              (v)

            	
              Bombardier
                shall only be responsible for the installation and functional testing
                of
                the BFE in the Aircraft using reasonable care and good manufacturing
                practices, in accordance with Frontier’s written detailed description of
                the dimensions and weight of such BFE. Frontier shall also furnish
                information necessary for its certification on the Aircraft, proper
                storage, installation, servicing, maintenance and operation and
                availability of test equipment or special tools; and

            
	 	 	 	 	 
	
               

            	 	
              (vi)

            	
              Bombardier
                shall have no liability or other obligations and is hereby relieved
                of any
                liability, warranty or other obligation with respect to the BFE and
                Frontier hereby waives all express or implied warranties or conditions
                including those of merchantability or fitness or otherwise and all
                other
                liability (strict or otherwise) on the part of Bombardier, be it
                in fact,
                in law, in contract, or in tort (including without limitation the
                active,
                

            

    

    
    

    
       

      
        
          
            LA
              581-04
              (BFE)                                             - 2
              -

            Initials 

            

            Frontier
               ________  Bombardier  ________

             

             

             

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      	 	passive
              or imputed negligence or strict
              products liability of bombardier or its affiliates), or otherwise,
              in
              connection with the BFE or its design, suitability, use or operation
              except as relates to or arises from the installation, integration and
              functional testing of the BFE.
	 	 
	
              3.0

            	
              Removal
                of BFE

            
	 	 
	
               

            	
              If
                at any time between receipt of the BFE by Bombardier and the Delivery
                Date
                of the Aircraft to which such BFE relates, it is determined by Bombardier
                that an item of BFE supplied does not meet the standards and requirements
                described above or its installation, integration and testing in such
                Aircraft or Aircraft systems create delays in the manufacturing or
                certification process, then such BFE may be removed and, following
                notice
                to Frontier, replaced by other BFE supplied by Frontier or by Bombardier’s
                equipment. Any reasonable and documented costs associated with such
                removal, re-installation, replacement, testing and/or certification
                shall
                be borne by Frontier.

            
	 	 
	
              4.0

            	
              In-flight
                Entertainment (IFE)

            
	 	 
	
               

            	
              In
                recognition of Frontier’s desire to install an in-flight entertainment
                system ("IFE"), including any IFE equipment, satellite transponders
                or
                receivers and other components post delivery from Bombardier via
                a third
                party supplementary type certificate (“STC”), Bombardier will provide a
                price and offerability for the IFE provisions, upon receiving Frontier’s
                written notice of its requirements for same. Further, Bombardier
                will
                endeavour to support Frontier’s retrofit of such components into the
                Aircraft and to minimize associated costs.

            
	 	 
	
              5.0

            	
              The
                provisions of Article 18 shall apply equally to this Letter Agreement.
                In
                the event of the termination of the Agreement in accordance with
                its
                terms, this Letter Agreement shall become automatically null and
                void with
                respect to any Aircraft not yet delivered.

            
	 	 
	
              6.0

            	
              This
                Letter Agreement constitutes an integral part of the Agreement and
                is
                subject to the terms and conditions contained
                therein.

            

    

     

    
       

      
        
          
            LA
              581-04
              (BFE)                                             - 3
              -

            Initials 

            

            Frontier
               ________  Bombardier  ________

             

             

             

          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Should
      there be any inconsistency between this Letter Agreement and the Agreement
      with
      respect to the subject matter covered by the terms hereof, then this Letter
      Agreement shall prevail. 

    

    

    
      	
              Yours
                very truly,

            	 	
              Acknowledged
                and Accepted

            
	 	 	 
	 	 	 
	
              BOMBARDIER
                INC

            	 	
              Frontier
                Airlines Holdings, Inc.

            
	
              Bombardier
                Aerospace

            	 	 
	
              Regional
                Aircraft

            	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              (SIGNED
                ON FILE)

            	 	
              (SIGNED
                ON FILE)

            
	 	 	 
	
              Name:
                Ross Gray

            	 	
              Name:
                Paul H.Tate

            
	
              Title:
                Director, Contracts

            	 	
              Title:
                Senior Vice President Finance &

            
	
               

            	 	
                      
                Chief Financial Officer

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              (SIGNED
                ON FILE)

            	 	
              (SIGNED
                ON FILE)

            
	 	 	 
	
              Name:
                Marianella de la Barrera

            	 	
              Name:
                Jeff S. Potter

            
	
              Title:
                Senior Account Executive, Contracts

            	 	
              Title:
                President & Chief Executive
                Officer

            

    

     

     

    
      
        
          
            LA
              581-04
              (BFE)                                             - 4
              -

            Initials 

            

            Frontier
               ________  Bombardier  ________

             

             

             

          

        

        
          
          

          
            

          

        

        
          
          

        

         

        
          
            	
                    

                     

                     

                     

                     

                     

                     

                     

                  	
                    AEROSPACE

                     

                    Bombardier
                      Inc.

                    123
                      Garratt Boulevard, N17-27 

                    Downsview,
                      Ontario, Canada M3K 1Y5

                    www.bombardier.com

                     

                    TEL 416-633-7310

                    FAX
                       416-375-4533

                  

          

        

         

        September
          1, 2006

        

        Mr.
          Paul H. Tate

        Senior
          Vice President Finance & Chief Financial Officer

        Frontier
          Airlines Holdings, Inc.

        7001
          Tower Road 

        Denver,
          Colorado

        80249-7312

        USA

        

        

        SUBJECT:
          WARRANTY
          SUPPORT

        

        Letter
          Agreement No. 05 to Purchase Agreement No. PA-581 dated September 1, 2006
          (the
“Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
          (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
          purchase of ten (10) Bombardier Q Series 400 Aircraft
          (“Aircraft”).

        

        Dear
          Mr. Tate,

        

        This
          Letter Agreement (“Letter Agreement”), when accepted and agreed to by Frontier
          contemporaneously with the execution of the Agreement, will evidence our
          further
          agreement with respect to the matters set forth below.

        

        All
          capitalized terms used but not defined herein shall have the same meaning
          given
          such terms in the Agreement (including related Letter Agreements, Annexes
          and
          Schedules).

        

        
          	
                  1.0

                	
                  [***]

                	 
	 	 	 
	
                   

                	
                  1.1

                	
                  In
                    further consideration of Frontier having entered into the Agreement,
                    Frontier may [***], in the amount of [***].
                    The amount of [***] is stated in [***]
                    United States Dollars.

                
	 	 	 
	
                   

                	
                  1.2

                	
                  Frontier
                    must advise Bombardier [***].

                
	 	 	 
	
                  2.0

                	
                  [***]

                	 
	 	 	 
	
                   

                	
                  2.1

                	
                  In
                    further consideration of Frontier having entered into the Agreement,
                    the
                    parties recognize that in the course of the administration of
                    Annex B
                    (Warranty), Bombardier shall issue to Frontier warranty credits
                    to
                    purchase goods (excluding Aircraft) and services in respect of
                    warranty
                    claims processed in accordance with Annex B from Bombardier following
                    the
                    administration of warranty claims to be found in favour of Frontier
                    (“Warranty Credits”). 

                
	 	 	 

        

        
           

           

          
            
              
                
                  LA
                    581-05
                    (Warranty Support)                             - 1
                    -

                  Initials 

                  

                  Frontier
                     ________  Bombardier  ________

                   

                   

                   

                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

         

         

        
          	
                   

                	
                  2.2

                	
                  [***].

                
	 	 	 
	
                  3.0

                	
                  Vendor
                    Warranties 

                
	 	 	 
	
                   

                	
                  3.1

                	
                  [***].

                
	 	 	 
	
                   

                	
                  3.2

                	
                  In
                    accordance with Article 2 of Annex B to the Agreement, Bombardier
                    [***].

                
	 	 	 
	
                  4.0

                	
                  The
                    provisions of Article 18 shall apply equally to this Letter Agreement.
                    In
                    the event of the termination of the Agreement in connection with
                    its
                    terms, this Letter Agreement shall become automatically null
                    and void with
                    respect to any Aircraft not yet delivered. 

                
	 	 	 
	
                  5.0

                	
                  This
                    Letter Agreement constitutes an integral part of the Agreement
                    and is
                    subject to the terms and conditions contained
                    therein.

                

        

        
          
             

             

            
              
                
                  
                    LA
                      581-05
                      (Warranty Support)                             - 2
                      -

                    Initials 

                    

                    Frontier
                       ________  Bombardier  ________

                     

                     

                     

                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

           

           

        

        Should
          there be any inconsistency between this Letter Agreement and the Agreement
          with
          respect to the subject matter covered by the terms hereof, then this Letter
          Agreement shall prevail. 

        

        

        
          	
                  Yours
                    very truly,

                	 	
                  Acknowledged
                    and Accepted

                
	 	 	 
	 	 	 
	
                  BOMBARDIER
                    INC

                	 	
                  Frontier
                    Airlines Holdings, Inc.

                
	
                  Bombardier
                    Aerospace

                	 	 
	
                  Regional
                    Aircraft

                	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                  (SIGNED
                    ON FILE)

                	 	
                  (SIGNED
                    ON FILE)

                
	 	 	 
	
                  Name:
                    Ross Gray

                	 	
                  Name:
                    Paul H.Tate

                
	
                  Title:
                    Director, Contracts

                	 	
                  Title:
                    Senior Vice President Finance &

                
	
                   

                	 	
                          
                    Chief Financial Officer

                
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                  (SIGNED
                    ON FILE)

                	 	
                  (SIGNED
                    ON FILE)

                
	 	 	 
	
                  Name:
                    Marianella de la Barrera

                	 	
                  Name:
                    Jeff S. Potter

                
	
                  Title:
                    Senior Account Executive, Contracts

                	 	
                  Title:
                    President & Chief Executive
                    Officer

                

        

        
          
             

             

            
              
                
                  
                    LA
                      581-05
                      (Warranty Support)                             - 3
                      -

                    Initials 

                    

                    Frontier
                       ________  Bombardier  ________

                     

                     

                     

                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

          
 

        

        Attachment
          A

        [***]

        

          
             

             

            
              
                
                  
                    LA
                      581-05
                      (Warranty Support)                             - 4
                      -

                    Initials 

                    

                    Frontier
                       ________  Bombardier  ________

                     

                     

                     

                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

          
             

            
              
                	
                        

                         

                         

                         

                         

                         

                         

                         

                      	
                        AEROSPACE

                         

                        Bombardier
                          Inc.

                        123
                          Garratt Boulevard, N17-27 

                        Downsview,
                          Ontario, Canada M3K 1Y5

                        www.bombardier.com

                         

                        TEL 416-633-7310

                        FAX
                           416-375-4533

                      

              

            

          

          
            

            September
              1, 2006

            

            Mr.
              Paul H. Tate

            Senior
              Vice President Finance & Chief Financial Officer

            Frontier
              Airlines Holdings, Inc.

            7001
              Tower Road 

            Denver,
              Colorado

            80249-7312

            USA

            

            SUBJECT:
              GOODS
              AND SERVICES CREDIT MEMORANDUM

            

            Letter
              Agreement No. 06 to Purchase Agreement No. PA-581 dated September 1,
              2006 (the
“Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
              (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
              purchase of ten (10) firm and ten (10) option Bombardier Q Series 400
              Aircraft
              (“Aircraft”).

            

            Dear
              Mr. Tate,

            

            This
              Letter Agreement ("Letter Agreement"), when accepted and agreed to
              by Frontier
              contemporaneously with the execution of the Agreement, will evidence
              our further
              agreement with respect to the matters set forth below.

            

            All
              capitalized terms used but not defined herein shall have the same meaning
              given
              such terms in the Agreement (including related Letter Agreements, Annexes
              and
              Schedules).

            

            
              	
                      1.0

                    	
                      In
                        further consideration of Frontier having entered into the
                        Agreement,
                        Bombardier will issue to Frontier at Delivery of each Aircraft
                        under the
                        Agreement a credit memorandum in the amount of [***] (“Goods and Services
                        Credit Memorandum”). The
                        amount of the Goods and Services Credit Memorandum is stated
                        in
                        [***]
                        United
                        States Dollars and shall be adjusted to the Delivery Date
                        by an amount
                        equal to the lesser of: (A) the percentage amount calculated
                        in accordance
                        with the Economic Adjustment Formula, or (B)
                        [***] to the Delivery Date, multiplied by the amount of the
                        Goods and
                        Services Credit Memorandum; provided that in no event shall
                        any adjustment
                        cause the Goods and Services Credit Memorandum be less than
                        the fixed
                        amount stated above. The Goods and Services Credit Memorandum
                        shall be
                        used by Frontier to purchase goods and services directly
                        from
                        Bombardier.

                    

            

             

            
               

              
                
                  
                    
                      LA
                        581-06
                        (Goods and Services Credit Memorandum)               - 1
                        -

                      Initials 

                      

                      Frontier
                         ________  Bombardier  ________

                       

                       

                       

                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

              

            

            
              	
                      2.0

                    	
                      The
                        provisions of Article 18 shall apply equally to this Letter
                        Agreement. In
                        the event of the termination of the Agreement in accordance
                        with its
                        terms, this Letter Agreement shall become automatically null
                        and void with
                        respect to any Aircraft not yet delivered; provided that
                        Bombardier shall
                        have no right to claim a credit, refund or set-off in respect
                        of any Goods
                        and Services Credit Memorandum given to Frontier prior to
                        the date of such
                        termination.

                    
	 	 
	
                      3.0

                    	
                      This
                        Letter Agreement constitutes an integral part of the Agreement
                        and is
                        subject to the terms and conditions contained
                        therein.

                    

            

             

            
              
                 

                
                  
                    
                      
                        LA
                          581-06
                          (Goods and Services Credit Memorandum)               - 2
                          -

                        Initials 

                        

                        Frontier
                           ________  Bombardier  ________

                         

                         

                         

                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                

              

            

            Should
              there be any inconsistency between this Letter Agreement and the Agreement
              with
              respect to the subject matter covered by the terms hereof, then the
              terms of
              this Letter Agreement shall prevail. 

             

            
              	
                      Yours
                        very truly,

                    	 	
                      Acknowledged
                        and Accepted

                    
	 	 	 
	 	 	 
	
                      BOMBARDIER
                        INC

                    	 	
                      Frontier
                        Airlines Holdings, Inc.

                    
	
                      Bombardier
                        Aerospace

                    	 	 
	
                      Regional
                        Aircraft

                    	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                      (SIGNED
                        ON FILE)

                    	 	
                      (SIGNED
                        ON FILE)

                    
	 	 	 
	
                      Name:
                        Ross Gray

                    	 	
                      Name:
                        Paul H. Tate

                    
	
                      Title:
                        Director, Contracts

                    	 	
                      Title:
                        Senior Vice President Finance &

                    
	
                       

                    	 	
                              
                        Chief Financial Officer

                    
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                      (SIGNED
                        ON FILE)

                    	 	
                      (SIGNED
                        ON FILE)

                    
	
                      Name:
                        Marianella de la Barrera

                    	 	
                      Name:
                        Jeff S. Potter

                    
	
                      Title:
                        Senior Account Executive, Contracts

                    	 	
                      Title:
                        President & Chief Executive
                        Officer

                    

            

             

            
              
                 

                
                  
                    
                      
                        LA
                          581-06
                          (Goods and Services Credit Memorandum)               - 3
                          -

                        Initials 

                        

                        Frontier
                           ________  Bombardier  ________

                         

                         

                         

                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                

              

            

          

        

      

    

    
      
         

        
          
            	
                    

                     

                     

                     

                     

                     

                     

                     

                  	
                    AEROSPACE

                     

                    Bombardier
                      Inc.

                    123
                      Garratt Boulevard, N17-27 

                    Downsview,
                      Ontario, Canada M3K 1Y5

                    www.bombardier.com

                     

                    TEL 416-633-7310

                    FAX
                       416-375-4533

                  

          

        

      

      
         

        September
          1,
          2006

      

    

    
      

      Mr.
        Paul H. Tate

      Senior
        Vice President Finance & Chief Financial Officer

      Frontier
        Airlines Holdings, Inc.

      7001
        Tower Road 

      Denver,
        Colorado

      80249-7312

      USA

      

      

      SUBJECT:
        PRODUCT
        ENHANCEMENTS

      

      

      Letter
        Agreement No. 07 to Purchase Agreement No. PA-581 dated September 1, 2006
        (the
“Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
        (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
        purchase of ten (10) Bombardier Q Series 400 Aircraft
        (“Aircraft”).

      

      Dear
        Mr. Tate,

      

      This
        Letter Agreement (“Letter Agreement”), when accepted and agreed to by Frontier
        contemporaneously with the execution of the Agreement, will evidence our
        further
        agreement with respect to the matters set forth below.

      

      All
        capitalized terms used but not defined herein shall have the same meaning
        given
        such terms in the Agreement (including related Letter Agreements, Annexes
        and
        Schedules).

      

      
        	
                1.0

              	
                [***]

              
	 	 
	
                 

              	
                Should
                  Bombardier, in its sole discretion, within [***], while [***] or
                  prior to
                  [***] in the [***] or a [***], such [***] and [***], as applicable,
                  will
                  be [***].

              
	 	 
	
                2.0

              	
                [***]

              
	 	 
	
                 

                 

              	
                Any
                  future [***]
                  developed by Bombardier [***]
                  and
                  only [***]
                  will be [***]
                  on a case by case basis, discretionary to Bombardier. In the event
                  Bombardier develops [***]
                  that [***],
                  such [***].

              

      

      
        
           

          
            
              
                
                  LA
                    581-07
                    (Product Enhancements)                     
- 1
                    -

                  Initials 

                  

                  Frontier
                     ________  Bombardier  ________

                   

                   

                   

                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

      

       

      
        	
                 

                 

              	
                In
                  the event a [***],
                  Frontier [***],
                  so long as Frontier’s [***] does not [***].
                  In
                  the event [***],
                  Bombardier and Frontier agree to cooperate [***].

              
	 	 
	
                3.0

              	
                The
                  provisions of Article 18 shall apply equally to this Letter Agreement.
                  In
                  the event of the termination of the Agreement in connection with
                  its
                  terms, this Letter Agreement shall become automatically null and
                  void with
                  respect to any Aircraft not yet delivered.

              
	 	 
	
                4.0

              	
                This
                  Letter Agreement constitutes an integral part of the Agreement
                  and is
                  subject to the terms and conditions contained
                  therein.

              

      

      
        
           

          
            
              
                
                  LA
                    581-07
                    (Product Enhancements)                     
- 2
                    -

                  Initials 

                  

                  Frontier
                     ________  Bombardier  ________

                   

                   

                   

                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

      

      Should
        there be any inconsistency between this Letter Agreement and the Agreement
        with
        respect to the subject matter covered by the terms hereof, then this Letter
        Agreement shall prevail. 

      
 

      
        	
                Yours
                  very truly,

              	 	
                Acknowledged
                  and Accepted

              
	 	 	 
	 	 	 
	
                BOMBARDIER
                  INC

              	 	
                Frontier
                  Airlines Holdings, Inc.

              
	
                Bombardier
                  Aerospace

              	 	 
	
                Regional
                  Aircraft

              	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                (SIGNED
                  ON FILE)

              	 	
                (SIGNED
                  ON FILE)

              
	 	 	 
	
                Name:
                  Ross Gray

              	 	
                Name:
                  Paul H.Tate

              
	
                Title:
                  Director, Contracts

              	 	
                Title:
                  Senior Vice President Finance &

              
	
                 

              	 	
                        
                  Chief Financial Officer

              
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                (SIGNED
                  ON FILE)

              	 	
                (SIGNED
                  ON FILE)

              
	 	 	 
	
                Name:
                  Marianella de la Barrera

              	 	
                Name:
                  Jeff S. Potter

              
	
                Title:
                  Senior Account Executive, Contracts

              	 	
                Title:
                  President & Chief Executive
                  Officer

              

      

      
        
           

          
            
              
                
                  LA
                    581-07
                    (Product Enhancements)                     
- 3
                    -

                  Initials 

                  

                  Frontier
                     ________  Bombardier  ________

                   

                   

                   

                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

        
          	
                  

                   

                   

                   

                   

                   

                   

                   

                	
                  AEROSPACE

                   

                  Bombardier
                    Inc.

                  123
                    Garratt Boulevard, N17-27 

                  Downsview,
                    Ontario, Canada M3K 1Y5

                  www.bombardier.com

                   

                  TEL 416-633-7310

                  FAX
                     416-375-4533

                

        

        September
          1,
          2006

        

        Mr.
          Paul H. Tate

        Senior
          Vice President Finance & Chief Financial Officer

        Frontier
          Airlines Holdings, Inc.

        7001
          Tower Road 

        Denver,
          Colorado

        80249-7312

        USA

        

        

        SUBJECT:
          SPARES
          PROGRAM

        

        Letter
          Agreement No. 08 to Purchase Agreement No. PA-581 dated September 1, 2006
          (the
“Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
          (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
          purchase of ten (10) Bombardier Q Series 400 Aircraft
          (“Aircraft”).

        

        Dear
          Mr. Tate, 

        

        This
          Letter Agreement (“Letter Agreement”), when accepted and agreed to by Frontier
          contemporaneously with the execution of the Agreement, will evidence our
          further
          agreement with respect to the matters set forth below.

        

        All
          capitalized terms used but not defined herein shall have the same meaning
          given
          such terms in the Agreement (including all related Letter Agreements, Annexes
          and Schedules).

        

        
          	
                   

                	
                  1.0

                	
                  Spare
                    Part Availability

                
	 	 	 
	
                   

                	
                  1.1
                    

                	
                  In
                    further consideration
                    of Frontier having entered into the Agreement, Bombardier will
                    make
                    available to its airline customers [***] at least [***] provided
                    it is
                    agreed that [***]. 

                
	 	 	 
	
                   

                	
                  1.2

                	
                  Bombardier
                    Parts orders placed directly with Bombardier will be [***], as
                    follows:

                
	 	 	 
	
                   

                	 	
                  [***],
                    

                
	 	 	 
	
                   

                	
                  (ii)

                	
                  [***],
                    and 

                
	 	 	 
	
                   

                	
                  (iii)

                	
                  [***]
                    

                
	 	 	 

        

        
          
             

            
              
                
                  
                    LA
                      581-08
                      (Spares Program)          
                     
- 1
                      -

                    Initials 

                    

                    Frontier
                       ________  Bombardier  ________

                     

                     

                     

                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

         

         

        
          	
                   

                	
                  Additionally,
                    the following services will apply to [***]. 

                   

                  [***]:
                    Bombardier will maintain, or cause to be maintained, [***].
                    Further, Bombardier will [***],
                    including [***]
                    under its [***].
                    All the contacts [***]
                    can be made [***]
                    or to [***]
                    and also [***].
                    The information concerning [***]
                    shall be provided by the Spare Sales Manager designated to Frontier
                    by
                    Bombardier [***]
                    and [***].
                    Bombardier will, deliver parts [***]
                    from [***]
                    with [***]
                    or [***],
                    to the [***]
                    or the [***]
                    if so designated by Frontier, in [***]
                    condition, [***],
                    in accordance with Frontier’s shipping instructions. 

                
	 
	
                   

                
	 	 	 
	
                   

                	
                  Bombardier
                    will deliver [***]
                    on [***]
                    against [***].
                    Bombardier agrees to report the status of [***]
                    as set forth in the table below. 

                   

                  [***]:
                    Bombardier will [***]
                    from the [***]
                    with [***]
                    or [***].[***]
                    shall be [***]
                    to their [***],
                    depending upon the [***].
                    All [***]
                    will be delivered with the [***]
                    or any similar document issued by a duly authorized person.
                    

                
	 
	
                   

                
	 	 	 
	
                   

                	
                  Bombardier
                    agrees to cause the [***]
                    to be [***]
                    and
                    [***]
                    to
                    Frontier in accordance with the table below:

                   

                  [***]

                   

                  (*)
                    For any [***],
                    only the [***]
                    shall be processed and will be shipped [***].

                
	 
	
                   

                
	
                   

                
	 	 	 
	
                   

                	
                  (**)
                    Provided that [***]
                    for [***]
                    or
                    [***]
                    has been [***].

                   

                  A
                    [***]
                    reviewing a [***]
                    produced by Bombardier will take place at Frontier’s request to assess
                    [***]
                    arrangement. For [***],
                    a [***]
                    will be produced [***]
                    followed by [***]
                    if so requested by the Frontier.

                
	 
	
                   

                
	 	 	 
	 	 	 
	
                  2.0
                    

                	
                  The
                    provisions of Article 18 shall apply equally to this Letter Agreement.
                    In
                    the event of the termination of the Agreement in connection with
                    its
                    terms, this Letter Agreement shall become automatically null
                    and void with
                    respect to any Aircraft not yet delivered. 

                
	 	 	 
	
                  3.0

                	
                  This
                    Letter Agreement constitutes an integral part of the Agreement
                    and is
                    subject to the terms and conditions contained
                    therein.

                

        

        
          
            
               

              
                
                  
                    
                      LA
                        581-08
                        (Spares Program)          
                     
- 2
                        -

                      Initials 

                      

                      Frontier
                         ________  Bombardier  ________

                       

                       

                       

                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

              

            

          

           

        

        Should
          there be any inconsistency between this Letter Agreement and the Agreement
          with
          respect to the subject matter covered by the terms hereof, then this Letter
          Agreement shall prevail. 

        

        

        
          	
                  Yours
                    very truly,

                	 	
                  Acknowledged
                    and Accepted

                
	 	 	 
	 	 	 
	
                  BOMBARDIER
                    INC

                	 	
                  Frontier
                    Airlines Holdings, Inc.

                
	
                  Bombardier
                    Aerospace

                	 	 
	
                  Regional
                    Aircraft

                	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                  (SIGNED
                    ON FILE)

                	
                	
                  (SIGNED
                    ON FILE)

                
	 	 	 
	
                  Name:
                    Ross Gray

                	 	
                  Name:
                    Paul H.Tate

                
	
                  Title:
                    Director, Contracts

                	 	
                  Title:
                    Senior Vice President Finance &

                
	
                   

                	 	
                          
                    Chief Financial Officer

                
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                  (SIGNED
                    ON FILE)

                	 	
                  (SIGNED
                    ON FILE)

                
	 	 	 
	
                  Name:
                    Marianella de la Barrera

                	 	
                  Name:
                    Jeff S. Potter

                
	
                  Title:
                    Senior Account Executive, Contracts

                	 	
                  Title:
                    President & Chief Executive
                    Officer

                

        

        
          
            
               

              
                
                  
                    
                      LA
                        581-08
                        (Spares Program)          
                     
- 3
                        -

                      Initials 

                      

                      Frontier
                         ________  Bombardier  ________

                       

                       

                       

                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

              

            

          

          
            
            

            
              	
                      

                       

                       

                       

                       

                       

                       

                       

                    	
                      AEROSPACE

                       

                      Bombardier
                        Inc.

                      123
                        Garratt Boulevard, N17-27 

                      Downsview,
                        Ontario, Canada M3K 1Y5

                      www.bombardier.com

                       

                      TEL 416-633-7310

                      FAX
                         416-375-4533

                    

September
              1, 2006

            
              

              Mr.
                Paul H. Tate

              Senior
                Vice President Finance & Chief Financial Officer

              Frontier
                Airlines Holdings, Inc.

              7001
                Tower Road 

              Denver,
                Colorado

              80249-7312

              USA

              

              

              SUBJECT:
                [***]

              

              

              Letter
                Agreement No. 09 to Purchase Agreement No. PA-581 dated September
                1, 2006 (the
“Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
                (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
                purchase of ten (10) Firm and ten (10) Option Bombardier Q Series
                400 Aircraft
                (“Aircraft”).

               

              Dear
                Mr. Tate,

              

              This
                Letter Agreement (“Letter Agreement”), when accepted and agreed to by Frontier
                contemporaneously with the execution of the Agreement, will evidence
                our further
                agreement with respect to the matters set forth below.

              

              All
                capitalized terms used but not defined herein shall have the same
                meaning given
                such terms in the Agreement (including related Letter Agreements,
                Annexes and
                Schedules).

              

              
                	
                        1.0

                      	
                        Intent

                      
	 	 
	 	
                        The
                          intent of the [***]
                          is to [***]
                          through the joint efforts of Bombardier and Frontier. To
                          that end,
                          Bombardier agrees to take action as specified below and
                          Frontier agrees to
                          [***],
                          so that both Frontier and Bombardier’s [***].

                      

              

              
                
                  
                     

                    
                      
                        
                          
                            LA
                              581-09
                              ([***])                                    
                              - 1 -

                            Initials 

                            

                            Frontier
                               ________  Bombardier  ________

                             

                             

                             

                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                    

                  

                

                
                  
                  

              

              
                	
                        2.0

                      	
                        Definitions

                      
	 	 	 
	 	
                        An
                          [***]
                          shall be defined as; [***].

                      
	 	 	 
	 	
                        A
                          [***]
                          will be considered [***].

                      
	 	 	 
	
                        3.0

                      	
                        [***]

                      	 
	 	
                        Bombardier
                          [***]
                          that [***],
                          as defined in [***],
                          shall [***]

                      
	 	 	 
	 	
                        [***]

                      	 
	 	 	 
	
                        4.0

                      	
                        Term
                            of [***]

                      
	 	
                        The
                          term of [***]
                          shall commence on [***]
                          and shall expire [***]
                          thereafter.

                      
	 	 	 
	
                        5.0

                      	
                        Formula

                      	 
	 	
                        As
                          the term is used herein, [***]
                          shall
                          be a [***]
                          during the applicable periods specified, which shall be
                          calculated by
                          application of the following formula:

                      
	 	 	 
	 	
                        [***]

                      	 
	 	 	 
	 	
                        While:

                      	 
	 	 	 
	 	
                        [***]
                          

                      	 
	 	 	 
	
                        6.0

                      	
                        Assumptions

                      	 
	 	
                        The
                          [***]
                          is predicated on [***]
                          and [***]
                          and of [***].
                          Bombardier reserves the right to renegotiate the [***]
                          in the event of deviation in the aforementioned assumptions
                          by more than
                          [***].

                      
	 	 	 
	
                        7.0

                      	
                        Conditions
                          and Limitations

                      
	 	 	 

              

               

              
                	 	
                        7.1

                      	
                        Frontier
                          shall make all commercially reasonable efforts to [***]
                          and to use [***]
                          to [***]. An [***] which would [***] will not be [***]
                          if Frontier is
                          reasonably able to [***] and does not do so.

                      
	 	 	 
	 	
                        7.2

                      	
                        Any
                          [***]
                          due to any one or more of the following causes shall not
                          be considered in
                          [***]:

                      

              

              

              
                	 	
                        a.

                      	
                        [***]
                          not being in accodance with the [***] or [***];

                      
	 	 	 
	 	
                        b.

                      	
                        through
                          no fault of Bombardier or its vendors, the unavailability
                          of [***] and
                          [***] on a basis [***], located at
                          [***],

                      

              

               

              
                
                  
                    
                      
                        LA
                          581-09
                          ([***])                                   
                           - 2 -

                        Initials 

                        

                        Frontier
                           ________  Bombardier  ________

                         

                         

                         

                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                

                
                  
                  
 

              

              
                	
                         

                      	
                        c.

                      	
                        Frontier
                          not [***] in accordance with the [***] and [***] and [***]
                          that is
                          substantially equivalent to [***], unless caused by [***]
                          within
                          [***];

                      
	 	 	 
	
                         

                      	
                        d.

                      	
                        the
                          unavailability of [***], located at [***];

                      
	 	 	 
	
                         

                      	
                        e.

                      	
                        problems
                          that have [***], if [***] within a reasonable time;

                      
	 	 	 
	
                         

                      	
                        f.

                      	
                        Frontier
                          Furnished Equipment (BFE) of Frontier ;

                      
	 	 	 
	
                         

                      	
                        g.

                      	
                        any
                          [***] by Frontier without Bombardier’s written approval or
                          [***];

                      
	 	 	 
	
                         

                      	
                        h.

                      	
                        acts
                          of God or acts of third parties or force majeure including,
                          without
                          limiting the foregoing, [***];

                      
	 	 	 
	
                         

                      	
                        i.

                      	
                        [***];

                      
	 	 	 
	
                         

                      	
                        j.

                      	
                        An
                          [***] caused by [***] from [***];

                      
	 	 	 
	
                         

                      	
                        k.

                      	
                        scheduled
                          [***] and/or scheduled [***] (including both [***] and
                          [***] resulting
                          from [***]) that are [***] during [***] that would normally
                          be [***]
                          (provided any such [***] and accordingly [***]);

                      
	 	 	 
	
                         

                      	
                        l.

                      	
                        [***]
                          like [***] etc. unrelated to [***];

                      
	 	 	 
	
                         

                      	
                        m.

                      	
                        security
                          measures undertaken by Local Authorities; or

                      
	 	 	 
	
                         

                      	
                        n.

                      	
                        An
                          [***] because of [***] to [***] or [***] during the Duty
                          Day (6AM to
                          10PM).

                      

              

               

              
                	
                        7.3

                      	
                        Reporting

                      
	 	 	 
	
                         

                      	
                        Frontier
                          shall provide to Bombardier on a monthly
                          basis:

                      

              

               

              
                	
                         

                      	
                        a.

                      	
                        A
                          report of [***] along with reasons for the events and corrective
                          actions.

                      
	 	 	 
	
                         

                      	
                        b.

                      	
                        The
                          information on [***] or [***] relevant to [***], accomplished
                          during the
                          month

                      
	 	 	 

              

               

              
                	
                        7.4
                          

                      	
                        Master
                          Record 

                      

              

              

              
                	 	The
                        master record of [***]
                        will be maintained by Bombardier, based upon information
                        provided by
                        Frontier.
	 	 	 
	 	Bombardier
                        will provide Frontier access to this data. Frontier shall
                        review the data
                        and if it is not in agreement with Frontier’s records, Frontier and
                        Bombardier will consult to resolve any differences.
	 	 	 
	
                        8.0

                      	
                        Corrective
                          Action

                      
	 	 	 
	 	
                        8.1

                      	
                        In
                          the event the [***],
                          as defined in [***],
                          exceed [***]
                          for the applicable period, Bombardier and Frontier will
                          jointly review the
                          [***]

                      

              

               

              
                
                  
                    
                      
                        LA
                          581-09
                          ([***])                                    
                          - 3 -

                        Initials 

                        

                        Frontier
                           ________  Bombardier  ________

                         

                         

                         

                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                

                
                  
                  

              

              
                	 	 	 to
                        identify [***].
                        Bombardier will also provide [***],
                        if requested by Frontier:
	 	 	 
	
                         

                         

                      	
                        a.

                         

                      	
                        [***]
                          to analyze [***] and [***] that can have [***] and recommend
                          any changes
                          [***] reasonably indicated to [***];

                         

                      
	
                         

                         

                      	
                        b.

                         

                      	
                        review
                          of data related to [***] and [***]and [***] incorporated
                          in, and used in
                          connection with, [***] and furnish [***] to Frontier for
                          the purpose of
                          [***];

                         

                      
	
                         

                         

                      	
                        c.

                         

                      	
                        [***]
                          and [***] of [***] and [***], which will, in the [***],
                          cause the [***].
                          Failure by Frontier to [***] offered to Frontier [***]
                          of the [***],
                          unless the [***]; and

                         

                      
	
                         

                         

                      	
                        d.

                         

                      	
                        Bombardier
                          will use its reasonable efforts[***] to the extent required
                          when [***]
                          exceed [***] as a result of [***].

                         

                      

              

              

              
                	
                        8.2

                      	
                        Bombardier’s
                          liability to investigate and provide corrective action
                          under the terms of
                          this Letter Agreement shall be dependent upon the quality,
                          extent and
                          regularity of information and data reported to Bombardier
                          by
                          Frontier.

                      
	 	 	 
	
                        9.0

                      	
                        Implementation
                          of Changes

                      
	
                         

                      	
                        Frontier
                          may, at its option, [***].
                          If Frontier [***],
                          and [***],
                          the parties will agree on [***]
                          by [***]
                          with the [***]
                          based on [***],
                          as if [***].
                          Bombardier will [***]
                          when such change is [***].

                      
	 	 	 
	
                         10.0

                      	
                        Remedies 

                      
	 	 	 
	
                         

                      	
                        10.1

                      	
                        [***].
                          

                      
	 	 	 
	 	 	 
	
                        11.0

                      	
                        Duplicate
                          Remedies

                      
	
                         

                      	
                        It
                          is agreed that Bombardier will not be obligated to provide
                          to Frontier any
                          remedy, which is a duplicate of any other remedy, which
                          has been provided
                          to Frontier elsewhere under the Agreement [***].

                      
	 	 	 
	
                        12.0

                      	
                        Limitation
                          of Liability

                      
	
                         

                      	
                        The
                          [***]
                          in this Letter Agreement and the obligations and liabilities
[***]
                          are [***],
                          and Frontier hereby waives, releases and renounces all
                          other remedies,
                          warranties, guarantees or liabilities, express or implied,
[***],
                          arising in fact, contract, law, tort, strict products liability
                          or
                          otherwise including, without limitation, any obligation,
                          liability, claim
                          or remedy whether or not arising from negligence (whether
                          active, passive
                          or imputed) of Bombardier, its officers, employees, agents
                          or assignees,
                          or with respect to any implied warranty of fitness or merchantability,
                          any
                          implied condition, any implied warranty arising from course
                          of
                          performance, course of dealing or usage or

                      
	 	 	 

              

              
                
                  
                    
                      
                        LA
                          581-09
                          ([***])                                    
                          - 4 -

                        Initials 

                        

                        Frontier
                           ________  Bombardier  ________

                         

                         

                         

                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                

                
                  
                  
 

              

              
                	 	trade,
                        loss
                        of use, revenue or profit or for any other direct, indirect,
                        incidental,
                        consequential or punitive loss or damages.
	 	 
	
                        13.0

                      	
                        The
                          provisions of this letter agreement are personal to Frontier
                          and, except
                          as otherwise provided in the Agreement, shall not be assigned
                          or otherwise
                          disposed of by Frontier without the prior written consent
                          of
                          Bombardier.

                      
	 	 	 
	
                         

                      	
                        In
                          the event
                          of the termination of the Agreement in accordance with
                          its terms, this
                          Letter Agreement shall become automatically null and void
                          with respect to
                          any Aircraft not yet Delivered.

                      
	 	 	 
	
                        14.0

                      	
                        This
                          Letter
                          Agreement constitutes an integral part of the Agreement
                          and is subject to
                          the terms and conditions contained
                          therein.

                      

              

               

              
                
                  
                    
                      
                        LA
                          581-09
                          ([***])                                    
                          - 5 -

                        Initials 

                        

                        Frontier
                           ________  Bombardier  ________

                         

                         

                         

                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                

                
                  
                  
Should
                  there be any inconsistency between this Letter Agreement and the
                  Agreement with
                  respect to the subject matter covered by the terms hereof, then
                  this Letter
                  Agreement shall prevail. 

              

               

              
                	
                        Yours
                          very truly,

                      	 	
                        Acknowledged
                          and Accepted

                      
	 	 	 
	 	 	 
	
                        BOMBARDIER
                          INC

                      	 	
                        Frontier
                          Airlines Holdings, Inc.

                      
	
                        Bombardier
                          Aerospace

                      	 	 
	
                        Regional
                          Aircraft

                      	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                        (SIGNED
                          ON FILE)

                      	 	
                        (SIGNED
                          ON FILE)

                      
	 	 	 
	
                        Name:
                          Ross Gray

                      	 	
                        Name:
                          Paul H.Tate

                      
	
                        Title:
                          Director, Contracts

                      	 	
                        Title:
                          Senior Vice President Finance &

                      
	
                         

                      	 	
                                
                          Chief Financial Officer

                      
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                        (SIGNED
                          ON FILE)

                      	 	
                        (SIGNED
                          ON FILE)

                      
	 	 	 
	
                        Name:
                          Marianella de la Barrera

                      	 	
                        Name:
                          Jeff S. Potter

                      
	
                        Title:
                          Senior Account Executive, Contracts

                      	 	
                        Title:
                          President & Chief Executive
                          Officer

                      

              

               

              
                
                  
                    
                      
                        LA
                          581-09
                          ([***])                                    
                          - 6 -

                        Initials 

                        

                        Frontier
                           ________  Bombardier  ________

                         

                         

                         

                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                

                
                  
                  

                  
                    	
                            

                             

                             

                             

                             

                             

                             

                             

                          	
                            AEROSPACE

                             

                            Bombardier
                              Inc.

                            123
                              Garratt Boulevard, N17-27 

                            Downsview,
                              Ontario, Canada M3K 1Y5

                            www.bombardier.com

                             

                            TEL 416-633-7310

                            FAX
                               416-375-4533

                          

                  

                

              

            

          

        

      

    

     

    September
      1, 2006

    

    Mr.
      Paul H. Tate

    Senior
      Vice President Finance & Chief Financial Officer

    Frontier
      Airlines Holdings, Inc.

    7001
      Tower Road 

    Denver,
      Colorado

    80249-7312

    USA

    

    

    SUBJECT:
      [***]

    

    Letter
      Agreement No. 10 to Purchase Agreement No. PA-581 dated September 1, 2006 (the
      “Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
      (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
      purchase of ten (10) Firm and ten (10) Option Bombardier Q Series 400 Aircraft
      (“Aircraft”).

     

    Dear
      Mr. Tate,

    

    This
      Letter Agreement (“Letter Agreement”), when accepted and agreed to by Frontier
      contemporaneously with the execution of the Agreement, will evidence our further
      agreement with respect to the matters set forth below.

    

    All
      capitalized terms used but not defined herein shall have the same meaning given
      such terms in the Agreement (including related Letter Agreements, Annexes and
      Schedules).

    

    
      	
              1.0

            	
              Intent

            	 
	 	 	 	 
	  	
              1.1

            	
              The
                intent of the [***]
                is to [***]
                through the joint efforts of Bombardier and Frontier. To that end,
                Bombardier agrees to [***]
                pursuant to the terms and conditions hereof and agrees to provide
                [***].

            
	 	 	 	 
	  	
              1.2

            	
              [***]
                shall mean [***].

            
	 	 	 	 
	
              2.0

            	
              [***]

            	 
	 	 	 	 
	  	
              Bombardier
                [***]
                that
                [***],
                subject to the following terms and conditions:

            
	 	 	 	 
	  	 	
              2.1.1

            	
              The
                term of this Letter Agreement shall commence on the [***]
                and shall end [***]
                thereafter (the “Term”); and 

            
	 	 	 	 
	  	 	
              2.1.2

            	
              Appropriate
                [***]
                shall be made in [***]
                for the following:

            

    

    
       

      
        
          
            
              
                LA
                  581-10
                  ([***])                                    
                  - 1 -

                Initials 

                

                Frontier
                   ________  Bombardier  ________

                 

                 

                 

              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

    

     

    
      	
               

            	
              a)

            	
              [***]
                and other [***]
                or from [***]
                without Bombardier’s written agreement, or because [***]
                which [***]
                have not been incorporated, provided Frontier has [***]
                consistent with [***];
                

            
	 	 	 
	
               

            	
              b)

            	
              [***]
                incurred to [***]
                or for [***];

            
	 	 	 
	
               

            	
              c)

            	
              [***]
                such as [***]
                that Bombardier or vendors have made that [***];

            
	 	 	 
	 	
              d)

            	
              [***]
                that have [***]
                unless mutually agreed to by Frontier and Bombardier;

            
	 	 	 
	
               

            	
              e)

            	
              [***]
                which are [***]
                consistent with [***];
                and

            
	 	 	 
	 	
              f)

            	
              [***]
                incurred due to [***].

            

    

    
       

    

    
      	
              3.0

            	
              Calculation
                [***]

            
	 	 	 
	
               

            	
              3.1

            	
              [***]

            
	 	 	 
	
               

            	
               

            	
              The
                [***]
                is defined as [***].
                All elements of [***]
                are excluded from the calculation [***].

            
	 	 	 
	
               

            	
              3.2

            	
              [***]

            

    

    

    
      	
               

            	
               

            	
              The
                [***]
                is defined as [***].
                The [***]
                shall
                include the [***],
                but excluding [***].

            
	 	 	 
	 	
              3.3

            	
              [***]

            
	 	 	 
	 	 	
              The
                following formula shall be used to calculate the [***]:

            
	 	 	 
	 	 	
              [***].

            
	 	 	 
	
              4.0

            	
              [***]
                Calculation

            
	 	 	 
	 	
              4.1

            	
              The
                [***]
                calculated
                in accordance with sub paragraph 3.3 hereof, shall be compared by
                Bombardier against the [***]
                on
                an annual basis.

            
	 	 	 
	 	
              4.2

            	
              If
                the [***]
                calculated
                in accordance with the following formula:

            
	 	 	 
	 	 	
              [***]

            

    

     

    
      
        
          
            
              
                LA
                  581-10
                  ([***])                                    
                  - 2 -

                Initials 

                

                Frontier
                   ________  Bombardier  ________

                 

                 

                 

              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

       

    

    
      	 	 	
              Where:

            
	 	 	 
	 	 	
              [***]

            
	 	 	 
	
              4.3

            	
              If
                the [***],
                Bombardier shall [***]
                during
                the term in accordance with the following formula:

            
	 	 	 
	 	 	
              [***]

            
	 	 	 
	 	 	 
	
              5.0

            	
              [***]

            
	 	 	 
	 	
              5.1

            	
              At
                the end of the Term of this Letter Agreement, if [***]
                shall be compared by the following formula to determine [***].

            
	 	 	 
	 	 	
              [***]

            
	 	 	 
	
              5.2

            	
              If
                the [***]
                Bombardier shall [***].

            
	 	 	 
	 	
              5.3

            	
              If
                the [***]
                Frontier
                will [***].

            
	 	 	 
	
              6.0

            	
              Audit

            
	 	 	 
	 	
              Upon
                five (5) business days prior written notification by Bombardier to
                Frontier and at Bombardier’s expense, Bombardier shall have the right
                during normal business hours to audit [***]
                under this Letter Agreement, Frontier’s applicable [***],
                and applicable [***],
                where normally and customarily maintained, [***].
                Such audit shall not interfere with the conduct of business by Frontier
                nor shall Frontier be required to undertake or incur additional liability
                or obligations with respect to the audit. All such information will
                be
                considered confidential to Frontier and will not be shared with others
                or
                disclosed, except in connection with the administration and enforcement
                of
                this [***].

            

    

     

    
      
        
          
            
              
                LA
                  581-10
                  ([***])                                    
                  - 3 -

                Initials 

                

                Frontier
                   ________  Bombardier  ________

                 

                 

                 

              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

       

    

    
      
        
          	
                  7.0

                	
                  Reporting

                
	 	 	 
	 	
                  7.1

                	
                  The
                    Operator
                    shall provide to Bombardier data on [***].
                    Bombardier
                    will [***].
                    Bombardier
                    shall provide a [***]
                    on the
                    status of the [***]
                    based on
                    this data. Failure of Frontier to provide the required data as
                    described
                    herein, in spite of Bombardier’s notice and within [***],
                    shall void
                    this Letter Agreement.

                
	 	 	 
	 	
                  7.2

                	
                  The
                    [***]
                    is
                    based upon
                    the assumptions outlined in the Appendix to this Letter Agreement.
                    If
                    there is any deviation from the assumptions outlined in the Appendix
                    by
                    more than [***],
                    the parties
                    shall agree on appropriate modifications [***].

                
	 	 	 
	
                  8.0

                	
                  Limitation
                    of Liability

                
	 	 	 
	 	
                  THE
                    [***]
                    PROVIDED IN THIS LETTER AGREEMENT AND THE OBLIGATIONS AND LIABILITIES
                    ON
                    THE PART OF BOMBARDIER
                    UNDER THE [***]
                    ARE
                    ACCEPTED BY FRONTIER
                    AND
                    ARE EXCLUSIVE AND IN LIEU OF, AND FRONTIER HEREBY WAIVES, RELEASES
                    AND
                    RENOUNCES ALL OTHER REMEDIES, WARRANTIES, GUARANTEES OR LIABILITIES,
                    EXPRESSED OR IMPLIED, WITH RESPECT TO [***],
                    ARISING IN FACT, CONTRACT, LAW, TORT, STRICT PRODUCTS LIABILITY
                    OR
                    OTHERWISE INCLUDING, WITHOUT LIMITATION, ANY OBLIGATION, LIABILITY,
                    CLAIM
                    OR REMEDY WHETHER OR NOT ARISING FROM NEGLIGENCE (WHETHER ACTIVE,
                    PASSIVE
                    OR IMPUTED) OF BOMBARDIER,
                    ITS
                    OFFICERS, EMPLOYEES, AGENTS OR ASSIGNEES, OR WITH RESPECT TO
                    ANY IMPLIED
                    WARRANTY OF FITNESS OR MERCHANTABILITY, ANY IMPLIED CONDITION,
                    ANY IMPLIED
                    WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING
                    OR USAGE OF
                    TRADE, LOSS OF USE, REVENUE OR PROFIT OR FOR ANY OTHER DIRECT,
                    INDIRECT,
                    INCIDENTAL, CONSEQUENTIAL OR PUNITIVE LOSS OR
                    DAMAGES.

                
	 	 	 
	
                  9.0

                	
                  The
                    provisions of Article 18 shall apply equally to this Letter Agreement.
                    In
                    the event of the termination of the Agreement in accordance with
                    its
                    terms, this Letter Agreement shall become automatically null
                    and void with
                    respect to any Aircraft not yet delivered.

                
	 	 	 
	
                  10.0

                	
                  This
                    Letter
                    Agreement constitutes an integral part of the Agreement and is
                    subject to
                    the terms and conditions contained
                    therein.

                

        

         

        
          
            
              
                
                  
                    LA
                      581-10
                      ([***])                                    
                      - 4 -

                    Initials 

                    

                    Frontier
                       ________  Bombardier  ________

                     

                     

                     

                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

           

        

      

    

    Should
      there be any inconsistency between this Letter Agreement and the Agreement
      with
      respect to the subject matter covered by the terms hereof, then the terms of
      this Letter Agreement shall prevail. 

     

     

    
      	
              Yours
                very truly,

            	 	
              Acknowledged
                and Accepted

            
	 	 	 
	 	 	 
	
              BOMBARDIER
                INC

            	 	
              Frontier
                Airlines Holdings, Inc.

            
	
              Bombardier
                Aerospace

            	 	 
	
              Regional
                Aircraft

            	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              (SIGNED
                ON FILE)

            	 	
              (SIGNED
                ON FILE)

            
	 	 	 
	
              Name:
                Ross Gray

            	 	
              Name:
                Paul H. Tate

            
	
              Title:
                Director, Contracts

            	 	
              Title:
                Senior Vice President Finance &

            
	
               

            	 	
                      
                Chief Financial Officer

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              (SIGNED
                ON FILE)

            	 	
              (SIGNED
                ON FILE)

            
	 	 	 
	
              Name:
                Marianella de la Barrera

            	 	
              Name:
                Jeff S. Potter

            
	
              Title:
                Senior Account Executive, Contracts

            	 	
              Title:
                President & Chief Executive
                Officer

            

    

     

    
      
        
          
            
              
                LA
                  581-10
                  ([***])                                    
                  - 5 -

                Initials 

                

                Frontier
                   ________  Bombardier  ________

                 

                 

                 

              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

      
 

    

    APPENDIX
      A

    

    [***]

    

    [***]Assumptions

    

    The
      following is a list of all assumptions used to establish the [***].
      It is
      understood by the parties that these assumptions may change in which case the
      parties, with mutual agreement, will adjust the [***].

    

    
      	
              1.

            	
              All
                costs are based upon [***].

            
	 	 
	
              2.

            	
              All
                costs are based on t[***].

            
	 	 
	
              3.

            	
              All
                costs are expressed in [***].

            
	 	 
	
              4.

            	
              [***].

            
	 	 
	
              5.

            	
              [***].
                

            
	 	 
	
              6.

            	
              [***].

            

    

     

    
      
        
          
            
              
                LA
                  581-10
                  ([***])                                    
                  - 6 -

                Initials 

                

                Frontier
                   ________  Bombardier  ________

                 

                 

                 

              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

      
Appendix
        B

    

    

    [***]
      Economic Adjustment Formula

    

    

    The
      [***]economic
      adjustment will be calculated using the following [***]
      Formula.
      The [***]
      term
      is
      specified in Section 2.1.1 of the Letter Agreement.

    

    [***]

     

    
      
        
          
            
              
                LA
                  581-10
                  ([***])                                   
                  - 7 -

                Initials 

                

                Frontier
                   ________  Bombardier  ________

                 

                 

                 

              

            

            
              
              

              
                

              

            

            
              
              

            

            
              
                 

                
                  
                  

                  
                    	
                            

                             

                             

                             

                             

                             

                             

                             

                          	
                            AEROSPACE

                             

                            Bombardier
                              Inc.

                            123
                              Garratt Boulevard, N17-27 

                            Downsview,
                              Ontario, Canada M3K 1Y5

                            www.bombardier.com

                             

                            TEL 416-633-7310

                            FAX
                               416-375-4533

                          

                  

                

              

              
                
                  September
                    1,
                    2006

                  

                  Mr.
                    Paul H.
                    Tate

                  Senior
                    Vice
                    President Finance & Chief Financial Officer

                  Frontier
                    Airlines
                    Holdings, Inc.

                  7001
                    Tower Road

                  Denver,
                    Colorado

                  80249-7312

                  USA

                  

                  

                  SUBJECT:
                    [***]

                  

                  Letter
                    Agreement
                    No. 11 to Purchase Agreement No. PA-581 dated September 1, 2006
                    (the
“Agreement”) between Bombardier Inc. represented by Bombardier Aerospace
                    (“Bombardier”) and Frontier Airlines Holdings, Inc. (“Frontier”) relating to the
                    purchase of ten (10) Firm and ten (10) Option Bombardier Q Series
                    400 Aircraft
                    (“Aircraft”).

                   

                  Dear
                    Mr.
                    Tate,

                  

                  This
                    Letter
                    Agreement, when accepted and agreed to by Frontier contemporaneously
                    with the
                    execution of the Agreement, will evidence our further agreement
                    with respect to
                    the matters set forth below.

                  

                  All
                    capitalized
                    terms used but not defined herein shall have the same meaning
                    given such terms
                    in the Agreement (including related Letter Agreements, Annexes
                    and
                    Schedules).

                  

                  
                    	
                            1.0

                          	
                            Intent

                          
	 	 	 
	
                             

                          	
                            The
                              intent of
                              the [***]
                              is to
                              [***]
                              through the
                              joint efforts of Bombardier and Frontier. To that end,
                              Bombardier agrees
                              to take action as specified below and Frontier agrees
                              to [***],
                              so that
                              both Frontier and Bombardier’s [***].

                          

                  

                   

                  
                    
                      
                        LA
                          581-11
                          ([***])                                   
                          - 1 -

                        Initials 

                        

                        Frontier
                           ________  Bombardier  ________

                         

                         

                         

                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                  
                    	
                            2.0

                          	
                            Definitions

                          
	 	 	 
	
                             

                          	
                            A
                              [***]
                              shall be
                              defined as [***].
                              Only the
                              [***].
                              If a
                              [***].

                          
	 	 	 
	
                            3.0

                          	
                            [***]
                              Value

                          
	 	 	 
	
                             

                          	
                            Bombardier
                              [***],
                              as defined
                              in Article 5.0 herein, shall meet the [***]
                              specified below [***]

                          
	 	 	 
	 	
                            [***]

                          
	 	 	 
	
                            4.0

                          	
                            Term
                              of[***]

                          
	 	 	 
	
                             

                          	
                            The
                              term
                              [***]
                              shall
                              commence [***]
                              and
                              shall expire [***]
                              thereafter.

                          
	 	 	 
	
                            5.0

                          	
                            Formula

                          
	 	 	 
	
                             

                          	
                            As
                              the term
                              is used herein, [***] shall be a [***]
                              during
                              the
                              applicable periods specified, which shall be calculated
                              by application of
                              the following formula:

                          
	 	 	 
	
                             

                          	
                            [***]

                          
	 	 	 
	
                             

                          	
                            Where:

                          
	 	 	 
	
                             

                          	
                            [***]

                          
	 	 	 
	
                            6.0

                          	
                            Assumptions

                          
	 	 	 
	
                             

                          	
                            The
                              [***] is
                              predicated on a [***],
                              a
                              minimum
                              [***], and a minimum [***]. Bombardier reserves the
                              right to renegotiate
                              the [***] in the event of deviation in the aforementioned
                              assumptions by
                              more than [***].

                          
	 	 	 
	 	 	 
	
                            7.0

                          	
                            Conditions
                              and Limitations

                          
	 	 	 
	
                             

                          	
                            7.1

                          	
                            Frontier
                              shall make all commercially reasonable efforts to [***]
                              and to use [***].
                              A [***] with regard to a [***] which would [***] will
                              not be [***] if
                              Frontier is reasonably able to [***] and does not do
                              so.

                          
	 	 	 
	
                             

                          	
                            7.2

                          	
                            Any
                              [***] due
                              to any one or more of the following causes shall not
                              be considered a
                              [***]:

                          

                  

                  

                  
                    	
                             

                          	
                            a.

                          	
                            [***]
                              not
                              being in accordance with the [***] or [***];

                          
	 	 	 
	
                             

                          	
                            b.

                          	
                            through
                              no
                              fault of Bombardier or its Vendors, the unavailability
                              of [***] and [***],
                              located at [***];

                          

                  

                   

                  
                     

                    
                      
                        
                          LA
                            581-11
                            ([***])                                   
                            - 2 -

                          Initials 

                          

                          Frontier
                             ________  Bombardier  ________

                           

                           

                           

                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                  

                  
                    	
                             

                          	
                            c.

                          	
                            Frontier
                              not
                              [***] in accordance with the [***] and [***] and [***]
                              that is
                              substantially equivalent to [***], unless caused by
                              [***] within
                              [***];

                          
	 	 	 
	
                             

                          	
                            d.

                          	
                            the
                              unavailability of [***], located at [***];

                          
	 	 	 
	
                             

                          	
                            e.

                          	
                            problems
                              that
                              have [***], if [***] within a reasonable time;

                          
	 	 	 
	
                             

                          	
                            f.

                          	
                            Frontier
                              Furnished Equipment (BFE) of Frontier;

                          
	 	 	 
	
                             

                          	
                            g.

                          	
                            any
                              [***] by
                              Frontier without Bombardier’s written approval or
                              [***];

                          
	 	 	 
	
                             

                          	
                            h.

                          	
                            acts
                              of God
                              or acts of third parties or force majeure including,
                              without limiting the
                              foregoing, [***];

                          
	 	 	 
	
                             

                          	
                            i.

                          	
                            [***];

                          
	 	 	 
	
                             

                          	
                            j.

                          	
                            [***]
                              from
                              [***] other than because of a [***];

                          
	 	 	 
	
                             

                          	
                            k.

                          	
                            scheduled
                              [***] and/or scheduled [***] (including both [***]
                              and [***] resulting
                              from [***]) that are [***] during [***] that would
                              normally be [***]
                              (provided any such [***] and accordingly [***]); or

                          
	 	 	 
	
                             

                          	
                            l.

                          	
                            a
                              [***].

                          
	 	 	 

                  

                  
                    	
                             

                          	
                            7.3

                          	
                            
                              Reporting

                              Frontier
                                shall provide to Bombardier, not later than (30)
                                days after the last day of each month, the following
                                information:

                            

                          

                  

                  
                    	 	 	 
	
                             

                          	
                            a.

                          	
                            [***]

                          
	 	 	 
	 	 	 
	
                             

                          	
                            b.

                          	
                            [***]

                          
	 	 	 
	 	 	 
	
                             

                          	
                            c.

                          	
                            [***]

                          
	 	 	 
	
                             

                          	
                            d.

                          	
                            [***]

                          

                  

                   

                  Frontier
                    shall also
                    provide Bombardier such other information and data as Bombardier
                    may reasonably
                    request for the purpose of analyzing [***].

                  

                  The
                    data will be
                    reported in [***] report in a format to be mutually agreed.

                  

                  Bombardier
                    will
                    respond to the data in a timely manner and will provide Frontier
                    with [***].
                    Monthly reports will be available approximately six (6) weeks
                    after the end of
                    each month.

                  

                  If
                    Frontier does not provide such data within [***] of the applicable
                    month as
                    required above, this Letter Agreement shall be void.

                   

                  
                     

                    
                      
                        
                          LA
                            581-11
                            ([***])                                   
                            - 3 -

                          Initials 

                          

                          Frontier
                             ________  Bombardier  ________

                           

                           

                           

                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                  

                  
                    	
                             

                          	
                            7.4
                              

                          	
                            Master
                              Record 

                          
	 	 	
                            The
                              master
                              record of [***] will be maintained by Bombardier, based
                              upon information
                              provided by Frontier’s [***] as requested herein.

                          
	 	 	 
	
                             

                          	 	
                            Bombardier
                              will provide Frontier access to this data. Frontier
                              shall review the data
                              and if it is not in agreement with Frontier’s records, Frontier and
                              Bombardier will consult to resolve any differences.

                          
	 	 	 
	 	 	 
	 	 	 
	
                            8.0

                          	
                            Corrective
                              Action

                          
	 	 	 
	
                             

                          	
                            8.1

                          	
                            In
                              the event
                              the [***], as reported to Frontier by Bombardier, fails
                              to [***] for the
                              applicable period, Bombardier and Frontier will jointly
                              review [***] to
                              identify [***]. Bombardier will also provide [***],
                              if requested by
                              Frontier:

                          

                  

                  

                  
                    	
                             

                             

                          	
                            a.

                             

                          	
                            to
                              analyze
                              [***] that can have [***] on [***] and recommend any
                              changes in
                              [***];

                             

                          
	
                             

                             

                          	
                            b.

                             

                          	
                            review
                              of
                              data related to [***] and [***]and [***] incorporated
                              in, and used in
                              connection with, [***] and furnish [***] to Frontier
                              for the purpose of
                              [***];

                             

                          
	
                             

                             

                          	
                            c.

                             

                          	
                            [***]
                              and
                              [***] of [***] and [***], which will, in the [***],
                              cause the [***].
                              Failure by Frontier to [***] offered to Frontier [***]
                              of the [***],
                              unless the [***]; and

                             

                          
	
                             

                             

                          	
                            d.

                             

                          	
                            Bombardier
                              will use its reasonable efforts[***] to the extent
                              required when [***]
                              exceed [***] as a result of [***].

                             

                          

                  

                  

                  
                    	
                             

                          	
                            8.2

                          	
                            Bombardier’s
                              liability to investigate and provide corrective action
                              under the terms of
                              this Letter Agreement shall be dependent upon the quality,
                              extent and
                              regularity of information and data reported to Bombardier
                              by
                              Frontier.

                          
	 	 	 
	
                            9.0

                          	
                            Implementation
                              of Changes

                          
	 	 	 
	 	
                            Frontier
                              may,
                              at its option, [***]. If Frontier [***], and [***],
                              the parties will agree
                              on [***] by [***] with the [***] based on [***], as
                              if [***]. Bombardier
                              will [***] when such change is [***].

                          
	 	 	 
	
                             10.0

                          	
                            Remedies 

                          
	 	 	 
	 	
                            10.1

                          	
                            [***].

                          

                  

                   

                  
                     

                    
                      
                        
                          LA
                            581-11
                            ([***])                                   
                            - 4 -

                          Initials 

                          

                          Frontier
                             ________  Bombardier  ________

                           

                           

                           

                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                  

                  
                    	
                            11.0

                          	
                            Duplicate
                              Remedies

                          
	 	 	 
	
                             

                          	
                            Bombardier
                              will not be obligated to provide to Frontier any remedy,
                              which is a
                              duplicate of any other remedy, which has been provided
                              to Frontier
                              elsewhere under the Agreement [***]. 

                          
	 	 	 
	
                            12.0

                          	
                            Limitation
                              of Liability

                          
	 	 	 
	
                             

                          	
                            The
                              [***]
                              provided in this Letter Agreement and the obligations
                              and liabilities
                              [***] are [***], and Frontier hereby waives, releases
                              and renounces all
                              other remedies, warranties, guarantees or liabilities,
                              express or implied,
                              with respect to [***] arising in fact, contract, law,
                              tort, strict
                              products liability or otherwise including, without
                              limitation, any
                              obligation, liability, claim or remedy whether or not
                              arising from
                              negligence (whether active, passive or imputed) of
                              Bombardier, its
                              officers, employees, agents or assignees, or with respect
                              to any implied
                              warranty of fitness or merchantability, any implied
                              condition, any implied
                              warranty arising from course of performance, course
                              of dealing or usage or
                              trade, loss of use, revenue or profit or for any other
                              direct, indirect,
                              incidental, consequential or punitive loss or damages.

                          
	 	 	 
	 	 	 
	
                            13.0

                          	
                            The
                              provisions of Article 18 shall apply equally to this
                              Letter Agreement. In
                              the event of the termination of the Agreement in accordance
                              with its
                              terms, this Letter Agreement shall become automatically
                              null and void with
                              respect to any Aircraft not yet delivered.

                          
	 	 	 
	
                            14.0

                          	
                            This
                              Letter
                              Agreement constitutes an integral part of the Agreement
                              and is subject to
                              the terms and conditions contained therein.

                          
	 	 	 

                  

                   

                  
                     

                    
                      
                        
                          LA
                            581-11
                            ([***])                                   
                            - 5 -

                          Initials 

                          

                          Frontier
                             ________  Bombardier  ________

                           

                           

                           

                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                       

                      Should
                        there be any inconsistency between this Letter Agreement
                        and the Agreement with
                        respect to the subject matter covered by the terms hereof,
                        then this Letter
                        Agreement shall prevail. 

                    

                  

                  

                  

                  
                    	
                            Yours
                              very
                              truly,

                          	 	
                            Acknowledged
                              and Accepted

                          
	 	 	 
	 	 	 
	
                            BOMBARDIER
                              INC

                          	 	
                            Frontier
                              Airlines Holdings, Inc.

                          
	
                            Bombardier
                              Aerospace

                          	 	 
	
                            Regional
                              Aircraft

                          	 	 
	 	 	 
	 	 	 
	 	 	 
	
                            (SIGNED
                              ON
                              FILE)

                          	 	
                            (SIGNED
                              ON
                              FILE)

                          
	 	 	 
	
                            Name:
                              Ross
                              Gray

                          	 	
                            Name:
                              Paul
                              H.Tate

                          
	
                            Title:
                              Director, Contracts

                          	 	
                            Title:
                              Senior
                              Vice President Finance &

                          
	
                             

                          	 	
                                    
                              Chief Financial Officer

                          
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                            (SIGNED
                              ON
                              FILE)

                          	 	
                            (SIGNED
                              ON
                              FILE)

                          
	 	 	 
	
                            Name:
                              Marianella de la Barrera

                          	 	
                            Name:
                              Jeff S.
                              Potter

                          
	
                            Title:
                              Senior
                              Account Executive, Contracts

                          	 	
                            Title:
                              President & Chief Executive
                              Officer

                          

                  

                   

                  
                     

                    
                      
                        
                          
                            LA
                              581-11 ([***])                                        - 6
                              -

                            Initials 

                            

                            Frontier
                               ________  Bombardier  ________

                             

                             

                             

                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                        
                          
                             

                            
                              
                              

                              
                                	
                                        

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                      	
                                        AEROSPACE

                                         

                                        Bombardier
                                          Inc.

                                        123
                                          Garratt Boulevard, N17-27 

                                        Downsview,
                                          Ontario, Canada M3K 1Y5

                                        www.bombardier.com

                                         

                                        TEL 416-633-7310

                                        FAX
                                           416-375-4533

                                      

                              

                            

                          

                        

                        

                          September
                            1,
                            2006

                          

                          Mr.
                            Paul H.
                            Tate

                          Senior
                            Vice
                            President Finance & Chief Financial Officer

                          Frontier
                            Airlines
                            Holdings, Inc.

                          7001
                            Tower Road

                          Denver,
                            Colorado

                          80249-7312

                          USA

                          

                          

                          SUBJECT:
                            [***]

                          

                          Letter
                            Agreement
                            No. 12 to Purchase Agreement No. PA-581 dated September
                            1, 2006(the “Agreement”)
                            between Bombardier Inc. represented by Bombardier Aerospace
                            (“Bombardier”) and
                            Frontier Airlines Holdings, Inc. (“Frontier”) relating to the purchase of ten
                            (10) Firm and ten (10) Option Bombardier Q Series 400
                            Aircraft
                            (“Aircraft”).

                          

                          Dear
                            Mr.
                            Tate,

                          

                          This
                            Letter
                            Agreement, when accepted and agreed to by Frontier contemporaneously
                            with the
                            execution of the Agreement, will evidence our further
                            agreement with respect to
                            the matters set forth below.

                          

                          All
                            capitalized
                            terms used but not defined herein shall have the same
                            meaning given such terms
                            in the Agreement (including Letter Agreements, Annexes
                            and
                            Schedules).

                          

                          
                            	
                                    1.0

                                  	
                                    Intent

                                  
	 	 	 
	
                                     

                                  	
                                    The
                                      intent of
                                      the [***] is to [***] through the joint efforts
                                      of Bombardier and
                                      Frontier. To that end, Bombardier agrees to
                                      take action as specified below
                                      and Frontier agrees to [***], so that both
                                      Frontier and Bombardier's
                                      [***].

                                  
	 	 	 
	
                                    2.0

                                  	
                                    Definition

                                  
	 	 	 
	
                                     

                                  	
                                    A
                                      [***] shall
                                      be defined as [***]

                                  	 
	 	 	 
	
                                    3.0

                                  	
                                    [***]
                                      Value

                                  	 
	 	 	 
	
                                     

                                  	
                                    Bombardier
                                      [***] that the [***], as defined in Article
                                      5.0 herein, shall meet [***]
                                      specified below [***]:

                                  	 

                          

                           

                          
                             

                            
                              
                                
                                  
                                    LA
                                      581-12 ([***])                                        - 2
                                      -

                                    Initials 

                                    

                                    Frontier
                                       ________  Bombardier  ________

                                     

                                     

                                     

                                  

                                

                                
                                  
                                  

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                            

                          

                           

                          
                            	
                                     

                                  	
                                    
                                      [***]

                                    

                                  	
                                     

                                  
	 	 	 
	
                                    4.0

                                  	
                                    Term
                                      of
                                      [***]

                                  	 
	 	 	 
	
                                     

                                  	
                                    The
                                      term of
                                      this [***] shall commence the [***] and shall
                                      expire [***]
                                      thereafter.

                                  	 
	 	 	 
	
                                    5.0

                                  	
                                    Formula

                                  	 
	 	 	 
	
                                     

                                  	
                                    As
                                      the term
                                      is used herein, [***] shall be [***]
                                      during
                                      the
                                      applicable periods specified, which shall be
                                      calculated by application of
                                      the following formula:

                                  
	 	 	 
	
                                     

                                  	
                                    [***]

                                  	 
	 	 	 
	
                                    6.0

                                  	
                                    Assumptions

                                  	 
	 	 	 
	
                                     

                                  	
                                    The
                                      [***] is
                                      predicated on [***]
                                      and
                                      [***].
                                      Bombardier
                                      reserves the right to renegotiate [***] in
                                      the event of deviation in the
                                      aforementioned assumptions by more than [***].
                                      

                                  
	 	 	 
	7.0	Conditions
                                    and Limitations	 
	 	 	 

                          

                           

                          
                            
                              	
                                       

                                    	
                                      7.1
                                        

                                    	
                                      Frontier
                                        shall make all commercially reasonable efforts
                                        to [***] and to use [***]
                                        to [***]. An [***] which would [***] will
                                        not be [***] if Frontier is
                                        reasonably able to [***] and does not do
                                        so.

                                    
	 	 	 
	
                                       

                                    	
                                      7.2

                                    	
                                      Any
                                        [***] due
                                        to any one or more of the following causes
                                        shall not be considered
                                        [***]:

                                    

                            

                          

                           

                          
                            
                              	
                                       

                                    	
                                      a)

                                    	
                                      [***]
                                        not
                                        being in [***] with the [***] or [***];

                                    
	
                                       

                                       

                                    	
                                       

                                      b)

                                    	
                                       

                                      through
                                        no
                                        fault of [***], the unavailability of [***]
                                        and [***] on a basis [***],
                                        located at [***];

                                    
	
                                       

                                       

                                    	
                                       

                                      c)

                                    	
                                       

                                      Frontier
                                        not
                                        [***] in accordance with the [***] and [***]
                                        and [***] that is
                                        substantially equivalent to, unless caused
                                        by [***] within [***]
                                        

                                    
	
                                       

                                       

                                    	
                                       

                                      d)

                                    	
                                       

                                      the
                                        unavailability of [***], located at [***];

                                    
	
                                       

                                       

                                    	
                                       

                                      e)

                                    	
                                       

                                      problems
                                        that
                                        have [***], if [***] within a reasonable
                                        time;

                                    
	
                                       

                                       

                                    	
                                       

                                      f)

                                    	
                                       

                                      Frontier
                                        Furnished Equipment (BFE) of Frontier;

                                    
	
                                       

                                       

                                    	
                                       

                                      g)

                                    	
                                       

                                      any
                                        [***] by
                                        Frontier without Bombardier’s written approval or
                                        [***];

                                    
	
                                       

                                       

                                    	
                                       

                                      h)

                                    	
                                       

                                      acts
                                        of God
                                        or acts of third parties or force majeure
                                        including, without limiting the
                                        foregoing, [***];

                                    

                            

                             

                            
                              
                                 

                                
                                  
                                    
                                      
                                        LA
                                          581-12 ([***])                                        
- 1
                                          -

                                        Initials 

                                        

                                        Frontier
                                           ________  Bombardier  ________

                                         

                                         

                                         

                                      

                                    

                                    
                                      
                                      

                                      
                                        

                                      

                                    

                                    
                                      
                                      

                                    

                                  

                                

                              

                            

                             

                            
                              	
                                       

                                       

                                    	
                                       

                                      i)

                                    	
                                       

                                      [***];

                                    
	
                                       

                                       

                                    	
                                       

                                      j)

                                    	
                                       

                                      [***] other
                                        than
                                        because of a [***]; 

                                    
	
                                       

                                       

                                    	
                                       

                                      k)

                                    	
                                       

                                      scheduled
                                        [***] and/or scheduled [***] (including both
                                        [***] and [***] resulting
                                        from [***]) that are [***] during [***] that
                                        would normally be [***]
                                        (provided any such [***] and accordingly
                                        [***]); or

                                    
	
                                       

                                       

                                    	
                                       

                                      l)

                                    	
                                       

                                      a
                                        [***] is
                                        [***] and found to be [***].

                                    

                            

                             

                            
                              	 	7.3	 Reporting
	 	 	 

                            

                          

                           

                          Frontier
                            shall
                            provide to Bombardier, through Bombardier not later than
                            (30) days after the
                            last day of each month the following list of datasets,
                            and may not be limited to
                            the following: 

                           

                          
                            	
                                     

                                  	
                                    a.

                                     

                                  	
                                    [***]

                                     

                                  
	
                                     

                                  	
                                    b.

                                     

                                  	
                                    [***]

                                     

                                  
	
                                     

                                  	
                                    c.

                                     

                                  	
                                    [***]

                                     

                                  
	
                                     

                                  	
                                    d.

                                  	
                                    [***]

                                  

                          

                          

                          
                            	
                                     

                                  	 	
                                    Frontier
                                      shall also provide Bombardier such other information
                                      and data as
                                      Bombardier may reasonably request for the purpose
                                      of analyzing
                                      [***].

                                  
	 	 	 
	
                                     

                                  	 	
                                    The
                                      data will
                                      be reported in [***] report on a mutually agreed
                                      format.

                                  
	 	 	 
	
                                     

                                  	 	
                                    Bombardier
                                      will respond to the data in a timely manner
                                      and will provide Frontier with
                                      [***]. Monthly reports will be available approximately
                                      six (6) weeks after
                                      the end of each month.

                                  
	 	 	 
	
                                     

                                  	 	
                                    If
                                      Frontier
                                      does not provide such data within [***] of
                                      the applicable month as
                                      required above, this Letter Agreement shall
                                      be void.

                                  
	 	 	 
	
                                     

                                  	
                                    7.4
                                      

                                  	
                                    Master
                                      Record 

                                  
	 	 	 
	
                                     

                                  	 	
                                    The
                                      master
                                      record of [***] will be maintained by Bombardier
                                      in its format based upon
                                      information provided by Frontier's [***] as
                                      requested
                                      herein.

                                  
	 	 	 
	
                                     

                                  	 	
                                    Bombardier
                                      will provide a copy to Frontier of the data.
                                      Frontier shall review the
                                      data and if it is not in agreement with Frontier’s records, Frontier and
                                      Bombardier will consult to resolve any
                                      differences.

                                  

                          

                          
                            
                               

                              
                                
                                  
                                    
                                      LA
                                        581-12 ([***])                                        
- 3
                                        -

                                      Initials 

                                      

                                      Frontier
                                         ________  Bombardier  ________

                                       

                                       

                                       

                                    

                                  

                                  
                                    
                                    

                                    
                                      

                                    

                                  

                                  
                                    
                                    

                                  

                                

                              

                            

                          

                           

                          
                            	
                                    8.0

                                  	
                                    Corrective
                                      Action

                                  
	 	 	 
	 	
                                    8.1

                                  	
                                    In
                                      the event
                                      the [***], as reported to Frontier by Bombardier,
                                      fails to [***] for the
                                      applicable period, Bombardier and Frontier
                                      will jointly review [***] to
                                      identify [***]. Bombardier will also provide
                                      [***], if requested by
                                      Frontier:

                                  

                          

                           

                          

                            
                              	
                                       

                                       

                                    	
                                      a.

                                       

                                    	
                                      to
                                        analyze
                                        [***] that can have [***] on [***] and recommend
                                        any changes in
                                        [***];

                                       

                                    
	
                                       

                                       

                                    	
                                      b.

                                       

                                    	
                                      review
                                        of
                                        data related to [***] and [***]and [***]
                                        incorporated in, and used in
                                        connection with, [***] and furnish [***]
                                        to Frontier for the purpose of
                                        [***];

                                       

                                    
	
                                       

                                       

                                    	
                                      c.

                                       

                                    	
                                      [***]
                                        and
                                        [***] of [***] and [***], which will, in
                                        the [***], cause the [***].
                                        Failure by Frontier to [***] offered to Frontier
                                        [***] of the [***],
                                        unless the [***]; and

                                       

                                    
	
                                       

                                       

                                    	
                                      d.

                                       

                                    	
                                      Bombardier
                                        will use its reasonable efforts[***] to the
                                        extent required when [***]
                                        exceed [***] as a result of [***].

                                       

                                    

                            

                          

                          

                            
                              	
                                       

                                    	
                                      8.2
                                        

                                    	
                                      Bombardier's
                                        liability to investigate and provide corrective
                                        action under the terms of
                                        this Letter Agreement shall be dependent
                                        upon the quality, extent and
                                        regularity of information and data reported
                                        to Bombardier by
                                        Frontier.

                                    

                            

                          

                           

                          
                            	
                                    9.0

                                  	
                                    Implementation
                                      of Changes

                                  
	 	 	 
	
                                     

                                  	
                                    Frontier
                                      may,
                                      at its option, [***]. If Frontier [***], and
                                      [***], the parties will agree
                                      on [***] by [***] with the [***] based on [***],
                                      as if [***]. Bombardier
                                      will [***] when such change is [***].

                                  
	 	 	 
	
                                    10.0

                                  	
                                    Remedies 

                                  
	 	 	 
	 	
                                    [***].
                                      

                                     

                                  
	
                                     

                                     

                                  	
                                    10.1

                                     

                                  	
                                    [***].

                                     

                                  
	 	 	 
	
                                    11.0

                                  	
                                    Duplicate
                                      Remedies

                                  
	 	 	 
	
                                     

                                  	
                                    It
                                      is agreed
                                      that Bombardier shall not be obligated to provide
                                      to Frontier any remedy
                                      under this Letter of Agreement which is a duplicate
                                      of any other remedy
                                      which has been provided to Frontier elsewhere
                                      under the Agreement,
                                      [***]

                                  
	 	 	 

                          

                          
                            
                               

                              
                                
                                  
                                    
                                      LA
                                        581-12 ([***])                                        
- 4
                                        -

                                      Initials 

                                      

                                      Frontier
                                         ________  Bombardier  ________

                                       

                                       

                                       

                                    

                                  

                                  
                                    
                                    

                                    
                                      

                                    

                                  

                                  
                                    
                                    

                                  

                                

                              

                            

                          

                           

                          
                            	
                                    12.0

                                  	
                                    Limitation
                                      of Liability

                                  
	 	 	 
	
                                     

                                  	
                                    The
                                      [***]
                                      provided in this Letter Agreement and the obligations
                                      and liabilities
                                      [***] are [***] and Frontier hereby waives,
                                      releases and renounces all
                                      other remedies, claims, warranties, guarantees
                                      or liabilities, other than
                                      those expressly provided for in this agreement,
                                      express or implied, with
                                      respect to [***], arising in fact, contract,
                                      law, tort, strict products
                                      liability or otherwise including, without limitation,
                                      any obligation,
                                      liability, claim or remedy whether or not arising
                                      from negligence (whether
                                      active, passive or imputed) of Bombardier,
                                      its officers, employees, agents
                                      or assignees, or with respect to any implied
                                      warranty of fitness or
                                      merchantability, any implied condition, any
                                      implied warranty arising from
                                      course of performance, course of dealing or
                                      usage or trade, loss of use,
                                      revenue or profit or for any other direct,
                                      indirect, incidental,
                                      consequential or punitive loss or damages.

                                  
	 	 	 
	
                                    13.0

                                  	
                                    The
                                      provisions of Article 18 shall apply equally
                                      to this Letter Agreement. In
                                      the event of the termination of the Agreement
                                      in accordance with its
                                      terms, this Letter Agreement shall become automatically
                                      null and void with
                                      respect to any Aircraft not yet delivered.

                                  
	 	 	 
	
                                    14.0

                                  	
                                    This
                                      Letter
                                      Agreement constitutes an integral part of the
                                      Agreement and is subject to
                                      the terms and conditions contained
                                      therein.

                                  

                          

                          
                            
                               

                              
                                
                                  
                                    
                                      LA
                                        581-12 ([***])                                        - 5
                                        -

                                      Initials 

                                      

                                      Frontier
                                         ________  Bombardier  ________

                                       

                                       

                                       

                                    

                                  

                                  
                                    
                                    

                                    
                                      

                                    

                                  

                                  
                                    
                                    

                                  

                                

                              

                            

                          

                           

                          Should
                            there be any
                            inconsistency between this Letter Agreement and the Agreement
                            with respect to
                            the subject matter covered by the terms hereof, then
                            the terms of this Letter
                            Agreement shall prevail. 

                          

                          

                          

                          
                            	
                                    Yours
                                      very
                                      truly,

                                  	 	
                                    Acknowledged
                                      and Accepted

                                  
	 	 	 
	 	 	 
	
                                    BOMBARDIER
                                      INC

                                  	 	
                                    Frontier
                                      Airlines Holdings, Inc.

                                  
	
                                    Bombardier
                                      Aerospace

                                  	 	 
	
                                    Regional
                                      Aircraft

                                  	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                                    (SIGNED
                                      ON
                                      FILE)

                                  	 	
                                    (SIGNED
                                      ON
                                      FILE)

                                  
	 	 	 
	
                                    Name:
                                      Ross
                                      Gray

                                  	 	
                                    Name:
                                      Paul H.
                                      Tate

                                  
	
                                    Title:
                                      Director, Contracts

                                  	 	
                                    Title:
                                      Senior
                                      Vice President Finance &

                                  
	
                                     

                                  	 	
                                            
                                      Chief Financial Officer

                                  
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                                    (SIGNED
                                      ON
                                      FILE) 

                                  	 	
                                    (SIGNED
                                      ON
                                      FILE)

                                  
	 	 	 
	
                                    Name:
                                      Marianella de la Barrera

                                  	 	
                                    Name:
                                      Jeff S.
                                      Potter

                                  
	
                                    Title:
                                      Senior
                                      Account Executive, Contracts

                                  	 	
                                    Title:
                                      President & Chief Executive
                                      Officer

                                  

                          

                           

                          
                             

                            
                               

                              
                                
                                  
                                    
                                      LA
                                        581-12 ([***])                                        - 6
                                        -

                                      Initials 

                                      

                                      Frontier
                                         ________  Bombardier  ________

                                       

                                       

                                       

                                    

                                  

                                  
                                    
                                    

                                    
                                      

                                    

                                  

                                  
                                    
                                    

                                  

                                  
                                    
                                       

                                      
                                        
                                        

                                        
                                          	
                                                  

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                	
                                                  AEROSPACE

                                                   

                                                  Bombardier
                                                    Inc.

                                                  123
                                                    Garratt Boulevard, N17-27 

                                                  Downsview,
                                                    Ontario, Canada M3K 1Y5

                                                  www.bombardier.com

                                                   

                                                  TEL 416-633-7310

                                                  FAX
                                                     416-375-4533

                                                

                                        

                                         

                                        
                                          September
                                            1,
                                            2006

                                          

                                          Mr.
                                            Paul H.
                                            Tate

                                          Senior
                                            Vice
                                            President Finance & Chief Financial Officer

                                          Frontier
                                            Airlines
                                            Holdings, Inc.

                                          7001
                                            Tower Road

                                          Denver,
                                            Colorado

                                          80249-7312

                                          USA

                                          

                                          

                                          SUBJECT:
                                            [***]

                                          

                                          Letter
                                            Agreement
                                            No. 13 to Purchase Agreement No. PA-581
                                            dated September 1, 2006 (the
“Agreement”) between Bombardier Inc. represented
                                            by Bombardier Aerospace
                                            (“Bombardier”) and Frontier Airlines Holdings, Inc.
                                            (“Frontier”) relating to the
                                            purchase of ten (10) Bombardier Q Series
                                            400 Aircraft
                                            (“Aircraft”).

                                          

                                          Dear
                                            Mr.
                                            Tate,

                                          

                                           

                                          This
                                            Letter
                                            Agreement ("Letter Agreement"), when
                                            accepted and agreed to by Frontier
                                            contemporaneously with the execution
                                            of the Agreement, will evidence our further
                                            agreement with respect to the matters
                                            set forth below.

                                          

                                          All
                                            capitalized
                                            terms used but not defined herein shall
                                            have the same meaning given such terms
                                            in the Agreement (including related Letter
                                            Agreements, Annexes and
                                            Schedules).

                                          
                                            	
                                                     

                                                    1.0

                                                  	
                                                     

                                                    AIRCRAFT
                                                      CONFIGURATION

                                                  
	
                                                     

                                                     

                                                  	
                                                     

                                                    The
                                                      [***]
                                                      contained in this document
                                                      are applicable to the DHC-8-400
                                                      aircraft built
                                                      to Detail Specification No.
                                                      DS8-400 Rev. 1, Amend. NC,
                                                      dated April 16,
                                                      2002, plus the Frontier Selected
                                                      Optional Features, equipped
                                                      with [***]
                                                      per the Specification, with
                                                      an optional [***]
                                                      and
                                                      equipped with Pratt and Whitney
                                                      Canada PW150A engines with
                                                      [***]. [***]
                                                      shall be made for any [***]
                                                      which have been approved by
                                                      Frontier and
                                                      Bombardier and which [***].

                                                  
	 	 
	
                                                    2.0

                                                  	
                                                    [***]

                                                  

                                          

                                           

                                          
                                             

                                            
                                               

                                              
                                                
                                                  
                                                    
                                                      LA
                                                        581-13 ([***])                                        - 1
                                                        -

                                                      Initials 

                                                      

                                                      Frontier
                                                         ________  Bombardier  ________

                                                       

                                                       

                                                       

                                                    

                                                  

                                                  
                                                    
                                                    

                                                    
                                                      

                                                    

                                                  

                                                  
                                                    
                                                    

                                                  

                                                

                                              

                                            

                                          

                                           

                                          
                                            	
                                                     

                                                    2.1

                                                  	
                                                     

                                                    [***]
                                                      and
                                                      [***]

                                                  
	
                                                     

                                                     

                                                  	
                                                     

                                                    For
                                                      the [***]
                                                      and [***], with an
                                                      [***] of
                                                      up to [***],
                                                      and using
                                                      not more than the [***], the
                                                      [***] shall not be less than,
                                                      and the [***]
                                                      will not be more than the following
                                                      [***]:

                                                  
	 	 
	
                                                     

                                                  	
                                                    [***]

                                                  
	
                                                     

                                                    2.2

                                                  	
                                                     

                                                    [***]
                                                      and
                                                      [***]
                                                      Rules

                                                  
	
                                                     

                                                     

                                                  	
                                                     

                                                    The
                                                      [***]
                                                      and
                                                      [***] of Article 2.1 are based
                                                      on the following [***]:

                                                  
	 	 
	
                                                     

                                                  	
                                                    [***]

                                                  

                                          

                                           

                                          
                                            
                                               

                                              
                                                 

                                                
                                                  
                                                    
                                                      
                                                        LA
                                                          581-13 ([***])                                        - 2
                                                          -

                                                        Initials 

                                                        

                                                        Frontier
                                                           ________  Bombardier  ________

                                                         

                                                         

                                                         

                                                      

                                                    

                                                    
                                                      
                                                      

                                                      
                                                        

                                                      

                                                    

                                                    
                                                      
                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                           

                                          
                                            	
                                                    3.0
                                                      

                                                  	
                                                    [***]

                                                  
	 	 	 
	
                                                    3.1

                                                  	
                                                    
                                                      [***]

                                                    

                                                  	
                                                     

                                                  
	 	 	 
	
                                                     

                                                  	
                                                    The
                                                      [***]
                                                      shall not be more then [***].

                                                  
	 	 	 
	
                                                     

                                                  	
                                                    The
                                                      term
                                                      [***], as used by Frontier
                                                      Airlines shall mean [***].

                                                  
	 	
                                                    The
                                                      [***]
                                                      which includes the [***] plus
                                                      [***] as per [***], plus a
                                                      [***], is
                                                      [***].

                                                  
	 	 	 
	
                                                     

                                                  	
                                                    [***]

                                                  
	 	 	 
	
                                                    3.2

                                                  	
                                                    [***]

                                                  
	 	 	 
	
                                                     

                                                  	
                                                    [***]
                                                      based
                                                      on the [***]
                                                      as stated in
                                                      Section 3.1, plus an [***].

                                                  
	 	 	 
	 	
                                                    [***]

                                                  

                                          

                                           

                                          
                                            	
                                                    4.0

                                                  	
                                                    [***]

                                                  
	 	 
	
                                                    4.1

                                                  	
                                                    The
                                                      [***]
                                                      of the
                                                      DHC-8-400 was obtained and
                                                      evaluated in accordance with
[***].

                                                  
	 	 
	 	The
                                                    following
                                                    tables state the [***] of the
                                                    DHC-8-400 Model 402 [***].
	 	 
	 	
                                                    [***]

                                                  
	 	 
	
                                                    4.2

                                                  	
                                                    [***]
                                                      CONDITIONS

                                                  
	 	 
	 	
                                                    All
                                                      [***]
                                                      data are based on the [***]

                                                  
	 	 
	
                                                    4.3

                                                  	
                                                    In
                                                      the event
                                                      a change is made to any law,
                                                      governmental regulation, requirement
                                                      or in
                                                      the interpretation of any such
                                                      law, regulation or requirement
                                                      that affects
                                                      the [***] as described and
                                                      as a result thereof a change
                                                      is made to the
                                                      [***] in order to obtain FAA
                                                      certification, the [***] set
                                                      forth in this
                                                      document shall be [***].

                                                  
	 	 
	
                                                    5.0

                                                  	
                                                    All
                                                      [***] are
                                                      based on the [***] and specified
                                                      variations therefrom. [***].
                                                      The [***]
                                                      are based on an [***]. 

                                                  
	 	 
	
                                                    5.1

                                                  	
                                                    In
                                                      the event
                                                      a change is made to any law,
                                                      governmental regulation, requirement
                                                      or in
                                                      the interpretation of any such
                                                      law, regulation or requirement
                                                      that affects
                                                      the [***]
                                                      as
                                                      described and as a result thereof
                                                      a change is made to [***] in
                                                      order to
                                                      obtain FAA certification, the
                                                      [***] set forth in this document
                                                      shall be
                                                      [***].

                                                  

                                          

                                          
                                            
                                               

                                              
                                                 

                                                
                                                  
                                                    
                                                      
                                                        LA
                                                          581-13 ([***])                                        - 3
                                                          -

                                                        Initials 

                                                        

                                                        Frontier
                                                           ________  Bombardier  ________

                                                         

                                                         

                                                         

                                                      

                                                    

                                                    
                                                      
                                                      

                                                      
                                                        

                                                      

                                                    

                                                    
                                                      
                                                      

                                                    

                                                  

                                                

                                              

                                            
 

                                          
                                            	
                                                    5.2

                                                  	
                                                    The
                                                      [***]
                                                      and
                                                      [***] are based on [***] and
                                                      [***], and where indicated,
                                                      the use of
                                                      [***].

                                                  
	 	 
	
                                                    5.3

                                                  	
                                                    The
                                                      [***]
                                                      and
                                                      [***] are based on a [***],
                                                      at the time [***], and include
                                                      allowances for
                                                      [***].[***] shall be defined
                                                      as [***].[***] are based on
                                                      a
                                                      [***].

                                                  
	 	 	 
	
                                                    6.0

                                                  	
                                                    [***]
                                                      COMPLIANCE

                                                  
	 	 
	
                                                    6.1

                                                  	
                                                    Compliance
                                                      with the [***] of Article 2.0
                                                      shall be based on the conditions
                                                      specified
                                                      in those Articles and the [***]
                                                      conditions of Article 3.0 unless
                                                      otherwise
                                                      noted. 

                                                  
	 	 
	
                                                    6.2

                                                  	
                                                    Compliance
                                                      with the [***] shall be established
                                                      by [***], based on the [***]
                                                      for
                                                      Frontier and [***]. 

                                                  
	 	 
	
                                                    6.3

                                                  	
                                                    The
                                                      data
                                                      derived from [***] shall be
                                                      adjusted as required by conventional
                                                      methods
                                                      of [***] or [***]in accordance
                                                      with [***] to show compliance
                                                      with the
                                                      provisions of Article 2.0.

                                                  
	 	 
	
                                                    6.4

                                                  	
                                                    Compliance
                                                      with the [***] will be demonstrated
                                                      with reference to [***].
                                                      

                                                  

                                          

                                          

                                          
                                            	
                                                    7.0

                                                  	
                                                    CORRECTION
                                                      FOR NON-COMPLIANCE 

                                                  
	 	 
	 	
                                                    Bombardier
                                                      will use it best reasonable
                                                      effort to [***] which would
                                                      [***] or [***] the
                                                      [***]. Such changes shall be
                                                      called [***]. 

                                                  
	 	 
	
                                                     

                                                  	
                                                    Should
                                                      Bombardier develop or cause
                                                      to be developed [***], Bombardier
                                                      will
                                                      promptly furnish such [***]
                                                      to Frontier for [***]. Such
                                                      [***] shall be in
                                                      the form of a [***] or [***]
                                                      and [***]. Bombardier will
                                                      also [***] to
                                                      incorporate such [***]. Such
                                                      [***] shall be [***]. 

                                                  
	 	 
	
                                                    7.1
                                                      

                                                  	
                                                    Remedies
                                                      For
                                                      Non-Compliance

                                                  
	 	 
	 	
                                                    Should
                                                      any
                                                      [***] of this Letter Agreement
                                                      and Bombardier [***] in accordance
                                                      with
                                                      Article 7.0 of this Letter
                                                      Agreement, Bombardier [***]
                                                      for
                                                      such
                                                      [***]. 

                                                  
	 	 
	
                                                    8.0

                                                  	
                                                    LIMITATION
                                                      OF LIABILITY

                                                  
	 	 
	 	
                                                    The
                                                      liquidated damages payable
                                                      in accordance with Article
                                                      7.1 are exclusive of
                                                      and in substitution for any
                                                      and all other remedies provided
                                                      by law with
                                                      respect to the [***] contained
                                                      herein, and Frontier disclaims,
                                                      waives,
                                                      releases and renounces all
                                                      other remedies relating to
                                                      the [***] contained
                                                      herein. Nothing herein shall
                                                      be construed as a waiver by
                                                      Frontier of or be
                                                      deemed to negate or impair
                                                      Frontier's [***].

                                                  
	 	 

                                          

                                          
                                            
                                               

                                              
                                                 

                                                
                                                  
                                                    
                                                      
                                                        LA
                                                          581-13 ([***])                                        - 4-

                                                        Initials 

                                                        

                                                        Frontier
                                                           ________  Bombardier  ________

                                                         

                                                         

                                                         

                                                      

                                                    

                                                    
                                                      
                                                      

                                                      
                                                        

                                                      

                                                    

                                                    
                                                      
                                                      

                                                    

                                                  

                                                

                                              

                                            
 

                                          
                                            	
                                                    9.0

                                                  	
                                                    The
                                                      provisions of this letter agreement
                                                      are assignable as set forth
                                                      in Article
                                                      18 of the Agreement. In the
                                                      event of the termination of
                                                      the Agreement in
                                                      accordance with its terms,
                                                      this Letter Agreement shall
                                                      become
                                                      automatically null and void
                                                      with respect to any Aircraft
                                                      not yet
                                                      delivered.

                                                  
	 	 
	
                                                    10.0

                                                  	
                                                    This
                                                      Letter
                                                      Agreement constitutes an integral
                                                      part of the Agreement and is
                                                      subject to
                                                      the terms and conditions contained
                                                      therein.

                                                  

                                          

                                          

                                            
                                               

                                              
                                                 

                                                
                                                  
                                                    
                                                      
                                                        LA
                                                          581-13 ([***])                                        - 5
                                                          -

                                                        Initials 

                                                        

                                                        Frontier
                                                           ________  Bombardier  ________

                                                         

                                                         

                                                         

                                                      

                                                    

                                                    
                                                      
                                                      

                                                      
                                                        

                                                      

                                                    

                                                    
                                                      
                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                          Should
                                            there be any
                                            inconsistency between this Letter Agreement
                                            and the Agreement with respect to
                                            the subject matter covered by the terms
                                            hereof, then this Letter Agreement shall
                                            prevail. 

                                          
 

                                          
                                            	
                                                    Yours
                                                      very
                                                      truly,

                                                  	 	
                                                    Acknowledged
                                                      and Accepted

                                                  
	 	 	 
	 	 	 
	
                                                    BOMBARDIER
                                                      INC

                                                  	 	
                                                    Frontier
                                                      Airlines Holdings, Inc.

                                                  
	
                                                    Bombardier
                                                      Aerospace

                                                  	 	 
	
                                                    Regional
                                                      Aircraft

                                                  	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                                                    (SIGNED
                                                      ON
                                                      FILE)

                                                  	 	
                                                    (SIGNED
                                                      ON
                                                      FILE)

                                                  
	 	 	 
	
                                                    Name:
                                                      Ross
                                                      Gray

                                                  	 	
                                                    Name:
                                                      Paul
                                                      H.Tate

                                                  
	
                                                    Title:
                                                      Director, Contracts

                                                  	 	
                                                    Title:
                                                      Senior
                                                      Vice President Finance &

                                                  
	
                                                     

                                                  	 	
                                                            
                                                      Chief Financial Officer

                                                  
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                                                    (SIGNED
                                                      ON
                                                      FILE)

                                                  	 	
                                                    (SIGNED
                                                      ON
                                                      FILE)

                                                  
	 	 	 
	
                                                    Name:
                                                      Marianella de la Barrera

                                                  	 	
                                                    Name:
                                                      Jeff S.
                                                      Potter

                                                  
	
                                                    Title:
                                                      Senior
                                                      Account Executive, Contracts

                                                  	 	
                                                    Title:
                                                      President & Chief Executive
                                                      Officer

                                                  

                                          

                                          

                                          
                                            
                                               

                                              
                                                 

                                                
                                                  
                                                    
                                                      
                                                        LA
                                                          581-13 ([***])                                        - 6
                                                          -

                                                        Initials 

                                                        

                                                        Frontier
                                                           ________  Bombardier  ________

                                                         

                                                         

                                                         

                                                      

                                                    

                                                    
                                                      
                                                      

                                                      
                                                        

                                                      

                                                    

                                                    
                                                      
                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                          
                                             

                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                      

                                                      
                                                        	
                                                                

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                                 

                                                              	
                                                                AEROSPACE

                                                                 

                                                                Bombardier
                                                                  Inc.

                                                                123
                                                                  Garratt Boulevard,
                                                                  N17-27 

                                                                Downsview,
                                                                  Ontario, Canada
                                                                  M3K 1Y5

                                                                www.bombardier.com

                                                                 

                                                                TEL 416-633-7310

                                                                FAX
                                                                   416-375-4533

                                                              

                                                      

                                                       

                                                      
                                                        September
                                                          1,
                                                          2006

                                                        

                                                        Mr.
                                                          Paul H.
                                                          Tate

                                                        Senior
                                                          Vice
                                                          President Finance & Chief Financial Officer

                                                        Frontier
                                                          Airlines
                                                          Holdings, Inc.

                                                        7001
                                                          Tower Road

                                                        Denver,
                                                          Colorado

                                                        80249-7312

                                                        USA

                                                        

                                                        

                                                        SUBJECT:
                                                          [***]

                                                        

                                                        

                                                        Letter
                                                          Agreement
                                                          No. 14 to Purchase Agreement
                                                          No. PA-581 dated September
                                                          1, 2006 (the
“Agreement”) between Bombardier Inc.
                                                          represented by Bombardier
                                                          Aerospace
                                                          (“Bombardier”) and Frontier Airlines
                                                          Holdings, Inc. (“Frontier”) relating to the
                                                          purchase of ten (10) Bombardier
                                                          Q Series 400 Aircraft
                                                          (“Aircraft”).

                                                        

                                                        Dear
                                                          Mr.
                                                          Tate,

                                                        

                                                        This
                                                          Letter
                                                          Agreement (“Letter Agreement”), when accepted and agreed
                                                          to by Frontier
                                                          contemporaneously with
                                                          the execution of the Agreement,
                                                          will evidence our further
                                                          agreement with respect
                                                          to the matters set forth
                                                          below.

                                                        

                                                        All
                                                          capitalized
                                                          terms used but not defined
                                                          herein shall have the same
                                                          meaning given such terms
                                                          in the Agreement (including
                                                          all Agreements, Annexes
                                                          and Schedules).

                                                        

                                                        
                                                          	
                                                                  1.0

                                                                	
                                                                  Bombardier
                                                                    shall make reasonable
                                                                    efforts to [***].
                                                                    If
                                                                    Bombardier is
                                                                    unable to [***],
                                                                    in accordance
                                                                    with Article
                                                                    1.7 of Annex
                                                                    B
                                                                    to the Agreement.

                                                                
	 	 
	
                                                                  2.0

                                                                	
                                                                  With
                                                                    respect
                                                                    to [***], Bombardier
                                                                    shall [***]. 

                                                                
	 	 
	
                                                                  3.0

                                                                	
                                                                  The
                                                                    provisions of
                                                                    Article 18 shall
                                                                    apply equally
                                                                    to this Letter
                                                                    Agreement. In
                                                                    the event of
                                                                    the termination
                                                                    of the Agreement
                                                                    in accordance
                                                                    with its
                                                                    terms, this Letter
                                                                    Agreement shall
                                                                    become automatically
                                                                    null and void
                                                                    with
                                                                    respect t0 any
                                                                    Aircraft not
                                                                    yet delivered.

                                                                
	 	 
	
                                                                  4.0

                                                                	
                                                                  This
                                                                    Letter
                                                                    Agreement constitutes
                                                                    an integral part
                                                                    of the Agreement
                                                                    and is subject
                                                                    to
                                                                    the terms and
                                                                    conditions contained
                                                                    therein.

                                                                

                                                        

                                                        
                                                          
                                                             

                                                            
                                                              
                                                                
                                                                  
                                                                    LA
                                                                      581-14 ([***])                                        - 1
                                                                      -

                                                                    Initials 

                                                                    

                                                                    Frontier
                                                                       ________ 
Bombardier
 ________

                                                                     

                                                                     

                                                                     

                                                                  

                                                                

                                                                
                                                                  
                                                                  

                                                                  
                                                                    

                                                                  

                                                                

                                                                
                                                                  
                                                                  

                                                                

                                                              

                                                            

                                                          

                                                          
                                                             

                                                          

                                                        

                                                        Should
                                                          there be any
                                                          inconsistency between this
                                                          Letter Agreement and the
                                                          Agreement with respect
                                                          to
                                                          the subject matter covered
                                                          by the terms hereof, then
                                                          this Letter Agreement shall
                                                          prevail. 

                                                        

                                                        

                                                        
                                                          	
                                                                  Yours
                                                                    very
                                                                    truly,

                                                                	 	
                                                                  Acknowledged
                                                                    and Accepted

                                                                
	 	 	 
	 	 	 
	
                                                                  BOMBARDIER
                                                                    INC

                                                                	 	
                                                                  Frontier
                                                                    Airlines Holdings,
                                                                    Inc.

                                                                
	
                                                                  Bombardier
                                                                    Aerospace

                                                                	 	 
	
                                                                  Regional
                                                                    Aircraft

                                                                	 	 
	 	 	 
	 	 	 
	 	 	 
	
                                                                  (SIGNED
                                                                    ON
                                                                    FILE)

                                                                	 	
                                                                  (SIGNED
                                                                    ON
                                                                    FILE)

                                                                
	 	 	 
	
                                                                  Name:
                                                                    Ross
                                                                    Gray

                                                                	 	
                                                                  Name:
                                                                    Paul
                                                                    H.Tate

                                                                
	
                                                                  Title:
                                                                    Director, Contracts

                                                                	 	
                                                                  Title:
                                                                    Senior
                                                                    Vice President
                                                                    Finance &

                                                                
	
                                                                   

                                                                	 	
                                                                          
                                                                    Chief Financial
                                                                    Officer

                                                                
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                                                                  (SIGNED
                                                                    ON
                                                                    FILE)

                                                                	 	
                                                                  (SIGNED
                                                                    ON
                                                                    FILE)

                                                                
	 	 	 
	
                                                                  Name:
                                                                    Marianella de
                                                                    la Barrera

                                                                	 	
                                                                  Name:
                                                                    Jeff S.
                                                                    Potter

                                                                
	
                                                                  Title:
                                                                    Senior
                                                                    Account Executive,
                                                                    Contracts

                                                                	 	
                                                                  Title:
                                                                    President & Chief Executive
                                                                    Officer

                                                                

                                                        

                                                        
                                                          
                                                             

                                                            
                                                              
                                                                
                                                                  
                                                                    LA
                                                                      581-14 ([***])                                        - 2
                                                                      -

                                                                    Initials 

                                                                    

                                                                    Frontier
                                                                       ________ 
Bombardier
 ________

                                                                     

                                                                     

                                                                     

                                                                  

                                                                

                                                                
                                                                  
                                                                  

                                                                  
                                                                    

                                                                  

                                                                

                                                                
                                                                  
                                                                  

                                                                

                                                                
                                                                  
                                                                     

                                                                  

                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                              

                                                                              
                                                                                	
                                                                                        

                                                                                         

                                                                                         

                                                                                         

                                                                                         

                                                                                         

                                                                                         

                                                                                         

                                                                                      	
                                                                                        AEROSPACE

                                                                                         

                                                                                        Bombardier
                                                                                          Inc.

                                                                                        123
                                                                                          Garratt
                                                                                          Boulevard,
                                                                                          N17-27

                                                                                        Downsview,
                                                                                          Ontario,
                                                                                          Canada
                                                                                          M3K
                                                                                          1Y5

                                                                                        www.bombardier.com

                                                                                         

                                                                                        TEL 416-633-7310

                                                                                        FAX
                                                                                           416-375-4533

                                                                                      

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                          
                                                            

                                                              September
                                                                1,
                                                                2006

                                                              

                                                              Mr.
                                                                Paul H.
                                                                Tate

                                                              Senior
                                                                Vice
                                                                President & Chief Financial Officer

                                                              Frontier
                                                                Airlines
                                                                Holdings, Inc.

                                                              7001
                                                                Tower Road

                                                              Denver,
                                                                Colorado

                                                              80249-7312

                                                              USA

                                                              

                                                              

                                                              SUBJECT:
                                                                [***]

                                                              

                                                              

                                                              

                                                              Letter
                                                                Agreement
                                                                No. 15 to Purchase
                                                                Agreement No. PA-581
                                                                dated September 1,
                                                                2006 (the
“Agreement”) between Bombardier
                                                                Inc. represented
                                                                by Bombardier Aerospace
                                                                (“Bombardier”) and Frontier Airlines
                                                                Holdings, Inc. (“Frontier”) relating to the
                                                                purchase of ten (10)
                                                                Bombardier Q Series
                                                                400 Aircraft
                                                                (“Aircraft”).

                                                              

                                                              Dear
                                                                Mr.
                                                                Tate, 

                                                              

                                                              This
                                                                Letter
                                                                Agreement (“Letter Agreement”), when accepted
                                                                and agreed to by
                                                                Frontier
                                                                contemporaneously
                                                                with the execution
                                                                of the Agreement,
                                                                will evidence our
                                                                further
                                                                agreement with respect
                                                                to the matters set
                                                                forth below.

                                                              

                                                              All
                                                                capitalized
                                                                terms used but not
                                                                defined herein shall
                                                                have the same meaning
                                                                given such terms
                                                                in the Agreement
                                                                (including related
                                                                Letter Agreements,
                                                                Annexes and
                                                                Schedules).

                                                              

                                                              
                                                                	
                                                                        1.0

                                                                      	
                                                                        In
                                                                          consideration
                                                                          of Frontier
                                                                          having
                                                                          entered
                                                                          into the
                                                                          Agreement,
                                                                          in the
                                                                          [***]
                                                                          in accordance
                                                                          with the
                                                                          terms and
                                                                          conditions
                                                                          set out
                                                                          herein.

                                                                      
	 	 
	 	 
	
                                                                        2.0

                                                                      	
                                                                        Within
                                                                          [***]
                                                                          of
                                                                          receiving
                                                                          Frontier’s notice
                                                                          [***] as
                                                                          is practicable
                                                                          for Bombardier.
                                                                          In connection
                                                                          with [***].

                                                                      
	 	 
	 	 
	
                                                                        3.0

                                                                      	
                                                                        The
                                                                          provisions
                                                                          of Article
                                                                          18 shall
                                                                          apply equally
                                                                          to this
                                                                          Letter
                                                                          Agreement.
                                                                          In
                                                                          the event
                                                                          of the
                                                                          termination
                                                                          of the
                                                                          Agreement,
                                                                          this Letter
                                                                          Agreement
                                                                          shall
                                                                          become
                                                                          automatically
                                                                          null and
                                                                          void.

                                                                      
	 	 

                                                              

                                                              
                                                                 

                                                                
                                                                  	
                                                                          4.0

                                                                        	
                                                                          This
                                                                            Letter
                                                                            Agreement
                                                                            constitutes
                                                                            an integral
                                                                            part
                                                                            of the
                                                                            Agreement
                                                                            and is
                                                                            subject
                                                                            to
                                                                            the terms
                                                                            and conditions
                                                                            contained
                                                                            therein.

                                                                        

                                                                

                                                                 

                                                              

                                                              
                                                                
                                                                  
                                                                    LA
                                                                      581-15 ([***])                                        - 1
                                                                      -

                                                                    Initials 

                                                                    

                                                                    Frontier
                                                                       ________ 
Bombardier
 ________

                                                                     

                                                                     

                                                                     

                                                                  

                                                                

                                                                
                                                                  
                                                                  

                                                                  
                                                                    

                                                                  

                                                                

                                                                
                                                                  
                                                                  

                                                                

                                                              

                                                              

                                                               

                                                              Should
                                                                there be any
                                                                inconsistency between
                                                                this Letter Agreement
                                                                and the Agreement
                                                                with respect to
                                                                the subject matter
                                                                covered by the terms
                                                                hereof, then this
                                                                Letter Agreement
                                                                shall
                                                                prevail. 

                                                              

                                                              

                                                              
                                                                	
                                                                        Yours
                                                                          very
                                                                          truly,

                                                                      	 	
                                                                        Acknowledged
                                                                          and Accepted

                                                                      
	 	 	 
	 	 	 
	
                                                                        BOMBARDIER
                                                                          INC

                                                                      	 	
                                                                        Frontier
                                                                          Airlines
                                                                          Holdings,
                                                                          Inc.

                                                                      
	
                                                                        Bombardier
                                                                          Aerospace

                                                                      	 	 
	
                                                                        Regional
                                                                          Aircraft

                                                                      	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                                                                        (SIGNED
                                                                          ON
                                                                          FILE)

                                                                      	 	
                                                                        (SIGNED
                                                                          ON
                                                                          FILE)

                                                                      
	 	 	 
	
                                                                        Name:
                                                                          Ross
                                                                          Gray

                                                                      	 	
                                                                        Name:
                                                                          Paul
                                                                          H.Tate

                                                                      
	
                                                                        Title:
                                                                          Director,
                                                                          Contracts

                                                                      	 	
                                                                        Title:
                                                                          Senior
                                                                          Vice President
                                                                          Finance
&

                                                                      
	
                                                                         

                                                                      	 	
                                                                                
                                                                          Chief Financial
                                                                          Officer

                                                                      
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                                                                        (SIGNED
                                                                          ON
                                                                          FILE)

                                                                      	 	
                                                                        (SIGNED
                                                                          ON
                                                                          FILE)

                                                                      
	 	 	 
	
                                                                        Name:
                                                                          Marianella
                                                                          de la Barrera

                                                                      	 	
                                                                        Name:
                                                                          Jeff S.
                                                                          Potter

                                                                      
	
                                                                        Title:
                                                                          Senior
                                                                          Account
                                                                          Executive,
                                                                          Contracts

                                                                      	 	
                                                                        Title:
                                                                          President
& Chief Executive
                                                                          Officer

                                                                      

                                                              

                                                               

                                                              
                                                                
                                                                  
                                                                    LA
                                                                      581-15 ([***])                                        - 2
                                                                      -

                                                                    Initials 

                                                                    

                                                                    Frontier
                                                                       ________ 
Bombardier
 ________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]