Document:

exhibit10-66.htm

    

      Exhibit
        10.66

      

      CERTAIN
        PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
        SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
        TREATMENT. THE SYMBOL “[***]” HAS BEEN INSERTED IN PLACE OF THE PORTIONS SO
        OMITTED.

      

      

      

      
        	
                PURCHASE
                  AGREEMENT NO. 597-B 

              

      

      

      

      

      

      

      

      
        	
                BETWEEN
                  

              

      

      

      

      
        	
                BOMBARDIER
                  INC. 

              

      

      

      

      

      
        	
                AND
                  

              

      

      

      

      

      
        	
                PINNACLE
                  AIRLINES, INC. 

              

      

      

      

      
        

      

      

      
        	
                For
                  CRJs: 

              

      

      
        	
                Relating
                  to the Purchase of 

              

      

       

      Sixteen
        (16) Bombardier CRJ900 Series aircraft

      

      
        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                This
                  Agreement is made on the 26th day of April, 2007.
                  

              

      

      

      

      
        	
                BETWEEN:

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

              

      

      

      

      

      
        	
                AND:

              	
                Pinnacle
                  Airlines, Inc., a Georgia corporation, having an office located
                  at 1689
                  Nonconnah Boulevard, Memphis, Tennessee, 38132. (“Buyer”)
                  

              

      

      

      

      
        	
                WHEREAS,

              	
                [***]

              

      

      

      
        	
                WHEREAS,

              	
                [***]

              

      

      

      
        	
                WHEREAS,

              	
                [***]

              

      

      

      
        	
                WHEREAS,

              	
                [***]

              

      

      

      

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

      

      ARTICLE
        1 - INTERPRETATION

      

      
        	
                1.1  

              	
                The
                  recitials above have been inserted for convenience only and do
                  not form
                  part of this Agreement.

              

      

      

      
        	
                1.2

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

              

      

      

      
        	
                1.3

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

              

      

      

      
        	
                1.4

              	
                In
                  this Agreement the following expressions unless otherwise expressly
                  provided, mean: 

              

      

      

      
        	
                a.  

              	
                “Acceptance
                  Date” shall
                  mean the date of execution of the Certificate of Acceptance as
                  provided in
                  Article 8.10 (a);

              

      

      

      
        	
                b.  

              	
                “Acceptance
                  Period”
                  shall mean the period Buyer shall have to complete the inspection
                  and
                  flight test for any Aircraft as more specifically provided in Article
                  8.6;

              

      

      

      
        	
                c.  

              	
                “Agreement”
                  means this
                  Agreement, including its Exhibits, Annexes, Appendices, Schedules
                  and
                  those letter agreements (referred to herein as either “Letter
                  Agreement(s)” or “Letter Agreement” when referring to a specific Letter
                  Agreement), if any, attached hereto (each of which is incorporated
                  in this
                  Agreement by this reference), as they may be amended pursuant to
                  the
                  provisions of this Agreement;

              

      

      

      
        	
                d.  

              	
                “Aircraft”
                  shall mean
                  any or all the sixteen (16) Bombardier CRJ 900 Series aircraft
                  model
                  CL-600-2D24 to be sold and purchased pursuant to this Agreement
                  together
                  with any future Aircraft
                  wich may be assigned by Buyer by Delta pursuant to the Assignment
                  Agreement and which are 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;

              

      

      

      
        	
                e.  

              	
                “Aircraft
                  Base Price”
                  shall have the meaning attributed to it in Article
                  4.3;

              

      

      

      
        	
                f.  

              	
                “Aircraft
                  Purchase Price”
                  shall have the meaning attributed to it in Article
                  4.4;

              

      

      

      
        	
                g.  

              	
                [***]

              

      

      

      
        	
                h.  

              	
                [***]

              

      

      

      
        	
                i.  

              	
                “Bill
                  of Sale” shall
                  mean collectively, an FAA Bill of Sale and, in the form attached
                  hereto as
                  Exhibit II, a full warranty bill of sale, collectively conveying
                  title to
                  the Aircraft from Bombardier to Buyer and as more specifically
                  described
                  in Article 8.10(c);

              

      

      

      
        	
                j.  

              	
                [***]

              

      

      

      
        	
                k.  

              	
                 “Buyer
                  Responsible Regulatory
                  Change” shall have the meaning attributed to it
                  in  Article 7.5;

              

      

      

      
        	
                l.  

              	
                “Buyer
                  Selected Optional
                  Features” shall mean those optional features referred to in Article
                  4.2 and as more particularly set forth in Appendix III hereto,
                  as may be
                  amended from time to time;

              

      

      
        	
                 

              	
              

      

      
        	
                m.  

              	
                “Change
                  Order” means a
                  change order substantially in the form of Exhibit IV
                  hereto;

              

      

      

      
        	
                n.  

              	
                “Delivery
                  Date” shall
                  mean the date on which Bombardier delivers the Bill of Sale and
                  Buyer
                  takes delivery of the Aircraft in accordance with Article 8.10
                  (c);
                  

              

      

      

      
        	
                o.  

              	
                “Delta”
                  shall mean Delta
                  Air Lines, Inc., a Delaware
                  corporation;

              

      

      

      
        	
                p.  

              	
                 “Economic
                  Adjustment
                  Formula” shall mean the economic adjustment formula attached hereto
                  as Exhibit I;

              

      

      

      
        	
                q.  

              	
                “Excusable
                  Delay” shall
                  have the meanign attributed to it in Article
                  12.1.

              

      

      

      
        	
                r.  

              	
                 “FAA”
                  shall mean the
                  United States Federal Aviation Administration or any department
                  or agency
                  of the United States succeeding to the authority and jurisdiction
                  of the
                  Federal Aviation Administration;

              

      

      

      
        	
                s.  

              	
                “Non-Excusable
                  Delay”shall have
                  the
                  meaning  attributed to in Article
                  12.1;

              

      

      

      
        	
                t.  

              	
                “Notice”
                  shall mean any
                  notice, request, approval, permission, or other communication given
                  in
                  accordance with Article 16.1;

              

      

      

      
        	
                u.  

              	
                “Other
                  Patents” shall
                  have the meaning attributed to it in Article
                  17.1;

              

      

      

      
        	
                v.  

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

              

      

      

      
        	
                w.  

              	
                “Prime
                  Rate” shall mean
                  the rate of interest established from time to time by Chase Manhattan
                  Bank, N.A., or its successor, as its prime
                  rate;

              

      

      

      
        	
                x.  

              	
                “Readiness
                  Date” shall
                  mean the date on which an Aircraft will be ready for commencement
                  of
                  Buyer’s inspection, flight test and acceptance in accordance with Article
                  8.4;

              

      

      

      
        	
                y.  

              	
                “Regulatory
                  Change”
                  shall have the meaning attributed to it in Article
                  7.4;

              

      

      

      
        	
                z.  

              	
                “Scheduled
                  Delivery
                  Date” shall mean the specific date of which Bombardier provides
                  ten
                  (10) working days advance Notice to Buyer pursuant to Article 8.4
                  that the
                  Aircraft will be available for
                  inspection;

              

      

      

      
        	
                aa.  

              	
                “Scheduled
                  Delivery
                  Month(s)” shall mean the month in which each Aircraft is scheduled
                  for delivery as set forth in Appendix I attached hereto and incorporated
                  herein by this reference;

              

      

      

      
        	
                bb.  

              	
                “Specification”
                  shall
                  mean the specification for the Aircraft more specifically described
                  in
                  Article 2.1 and as attached hereto as Appendix II for the Aircraft
                  as such
                  specification may be further amended or modified pursuant to the
                  terms of
                  this Agreement;

              

      

      

      
        	
                cc.  

              	
                “Taxes”
                  has the meaning
                  set out in Article 4.5; and

              

      

      

      
        	
                dd.  

              	
                “TC”
shall
                  mean
                  Transport Canada or any department or agency of Canada succeeding
                  to the
                  authority and jurisdiction of Transport
                  Canada.

              

      

      

      

      
        	
                1.5

              	
                All
                  dollar amounts in this Agreement are in United States Dollars.
                  

              

      

      

      
        	
                1.6

              	
                All
                  capitalized terms not expressly defined under this Article 1 and
                  used
                  elsewhere in this in this Agreement shall have the meanings ascribed
                  to
                  such capitalized terms elsewhere herein.

              

      

      

      ARTICLE
        2 - SUBJECT MATTER OF SALE

      

      
        	
                2.1

              	
                Subject
                  to the provisions of this Agreement, Bombardier will manufacture,
                  sell and
                  deliver and Buyer will purchase sixteen (16) Bombardier CRJ900
                  Series
                  aircraft model CL-600-2D24 aircraft manufactured pursuant to the
                  Specification as supplemented to include the Buyer Selected Optional
                  Features. The Aircraft Specification may be modified from time
                  to time and
                  is supplemented to
                  reflect the incorporation of the Buyer
                  Selected Optional
                  Features. 

              

      

      

      
        	
                 

              	
                ARTICLE
                  3 - CUSTOMER SUPPORT SERVICES AND WARRANTY

              

      

      

      
        	
                3.1

              	
                Bombardier
                  shall provide to Buyer the customer support services pursuant to
                  the
                  provisions of Annex A-1 attached hereto.

              

      

      

      
        	
                3.2

              	
                Bombardier
                  shall provide to Buyer the warranty and the service life policy
                  described
                  in Annex B-1, which shall be the exclusive warranty applicable
                  to the
                  Aircraft. 

              

      

      

      
        	
                3.3  

              	
                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
                  basic price for each of the Aircraft is [***] United States Dollars
                  expressed in July 1, 2006 United States Dollars.
                  

              

      

      

      
        	
                4.2

              	
                The
basic
                  price of the
                  Buyer Selected Optional Features for each Aircraft is [***] United
                  States
                  Dollars and is listed in Appendix III hereto and are expressed
                  in July 1,
                  2006 United States Dollars. Upon request from Buyer, agreed additions
                  and
                  deletions to the Buyer Selected Optional Features in Appendix III
                  shall be
                  incorporated on the Aircraft and the basic price of the Buyer Selected
                  Optional Features shall be adjusted accordingly. Actual changes
                  to the
                  Aircraft shall be subject to Bombardier’s required lead times of which it
                  will provide Buyer reasonable notice.

              

      

      

      
        	
                4.3

              	
                The
                  Aircraft Base Price of each Aircraft is the basic price identified
                  in
                  Articles 4.1, plus the basic price of the Buyer Selected Optional
                  Features
                  identified in Article 4.2. above selected by Buyer for the Aircraft
                  expressed in July 1, 2006 United States Dollars.
                  

              

      

      

      
        	
                4.4

              	
                The
                  Aircraft Base Price shall be
                  adjusted from July 1, 2006 to the delivery date of the Aircraft
                  using the
                  Economic Adjustment Formula in order to determine the Aircraft
                  Purchase
                  Price at delivery [***]

              

      

      

      
        	
                4.5

              	
                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 (“Taxes”)  which
                  are or may be imposed by law upon Bombardier, any affiliate of
                  Bombardier,
                  Buyer or the Aircraft whether or not there is an obligation for
                  Bombardier
                  to collect same from Buyer, 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.  [***]

              

      

      

      
        	
                4.6

              	
                If
                  any Taxes [***] are
                  imposed upon Buyer or become due or are to be collected from Bombardier
                  by
                  any taxing authority, Bombardier shall immediately notify Buyer
                  upon receipt of such
                  notice.  [***]

              

      

      

      
        	
                4.7

              	
                Upon
                  request of one party, the other party shall execute and deliver
                  to the
                  requesting party any documents that 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

              	
                (a)
                  [***] Buyer shall
                  make payment or cause payment to be made for each Aircraft [***]as follows:
                  

              

      

      

      
        	
                 

              	
                (i)

              	
                [***]

              	
                of
                  the estimated Aircraft Purchase Price [***] months prior
                  to its
                  Scheduled Delivery Month; 

              

      

      

      
        	
                 

              	
                (ii)

              	
                [***]

              	
                of
                  the estimated Aircraft Purchase Price [***] months prior
                  to its
                  Scheduled Delivery Month; 

              

      

      

      
        	
                 

              	
                (iii)

              	
                [***]

              	
                of
                  the estimated Aircraft Purchase Price [***] months prior
                  to its
                  Scheduled Delivery Month; and 

              

      

      

      
        	
                 

              	
                (iv)

              	
                Buyer
                  shall pay the balance of the Aircraft Purchase Price for each Aircraft
                  net
                  of the applicable Credit Memorandum as set forth in Article 1.0
                  of the
                  Credit Memorandum Letter Agreement on or before the Delivery Date
                  for such
                  Aircraft. 

              

      

      

      
        	
                 

              	
                (b)
                  [***]

              

      

      

      
        	
                 

              	
                (i)

              	
                [***]
                  

              

      

      

      
        	
                 

              	
                (ii)

              	
                [***]
                  

              

      

      

      
        	
                 

              	
                (iii)

              	
                [***]
                  

              

      

      

      
        	
                 

              	
                (iv)

              	
                [***]

              

      

      

      

      (c)  Any
        payments referred to in paragraphs (a)(i)-(iii) [***] above are pre-delivery
        payments (“PDP Payments”) and are to be made in the applicable amount on the
        second business day of the applicable month.

      

      
        	
                 

              	
                (d)
                  [***]

              

      

      

      (e)  With
        respect to Aircraft for which any PDP Payments are due as of the date of
        the
        Agreement due to their applicable delivery dates, Buyer shall make all such
        PDP
        Payments as set forth on Exhibit V attached hereto [***]that are due within
[***]
        business days of the
        execution and delivery by both parties of the Agreement.

      

      
        	
                5.2

              	
                If
                  Buyer fails to pay any amount payable by it under this Agreement
                  when due,
                  Buyer shall pay Bombardier daily interest on late payments from
                  the date
                  that any payment is [***] days past
                  due up to
                  and including the day prior to receipt of payment, at a rate of
[***]percent [***]
                  per annum over the
                  prime rate announced by Chase Manhattan for United States dollar
                  accounts
                  from time to time, calculated and compounded
                  monthly.  Bombardier’s right to receive such interest is in
                  addition to any other right or remedy Bombardier has at law as
                  a result of
                  Buyer’s failure to make payments when due including the right to terminate
                  this Agreement, [***].
                  

              

      

      

      
        	
                5.3

              	
                Buyer
                  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
                  Buyer from time to time: 

              

      

      

      
        	
                Transfer
                  to:

              	
                [***]
                  

              

      

      
        	
                Account
                  Name:

              	
                [***]
                  

              

      

      
        	
                Account
                  #:

              	
                [***]
                  

              

      

      
        	
                Bank
                  Name:

              	
                [***]
                  

              

      

      
        	
                ABA#:

              	
                [***]
                  

              

      

      
        	
                SWIFT
                  number:

              	
                [***]
                  

              

      

      
        	
                 

              	
                PLEASE
                  REFERENCE: INVOICE # AND/OR AIRCRAFT SERIAL #

              

      

      

      
        	
                5.4

              	
                All
                  other agreed upon amounts due with respect to each Aircraft shall
                  be paid
                  on or prior to the Delivery Date of such Aircraft.
                  

              

      

      

      
        	
                5.5

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

              

      

      

      
        	
                5.6

              	
                All
                  payments provided for under this Agreement shall be made so as
                  to be
                  received in immediately available funds on or before the dates
                  stipulated
                  herein. 

              

      

      

      

      ARTICLE
        6 - BUYER INFORMATION [***]

      

      
        	
                6.1

              	
                During
                  the manufacture of the Aircraft, Buyer shall provide to Bombardier
                  all
                  information as Bombardier may reasonably request to manufacture
                  the
                  Aircraft. Bombardier shall advise Buyer of the specific information
                  required and the latest date by which such information is required,
                  and
                  Buyer shall provide such information by the date(s) so advised.
                  The
                  requested information and its applicable due date(s) shall be
                  substantially in the form of Appendix IV, but in any event not
                  less than
                  within thirty (30) days of the date on which such information is
                  required,
                  and Buyer shall comply with the date(s) so specified; [***].
                  

              

      

      

      
        	
                 

              	
                Failure,
                  refusal or delay of Buyer to comply with the requirements of this
                  Article
                  may result in an increase in the Aircraft Purchase Price, a delay
                  in the
                  delivery of the Aircraft, or both. Further, any revisions to the
                  Appendix
                  IV 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. 

              

      

      

      
        	
                6.2

              	
                [***]

              

      

      

      

      
        	
                6.3

              	
                [***]

              

      

      

      

      
        	
                6.4

              	
                [***]

              

      

      

      
        	
                6.5

              	
                [***]

              

      

      

      
        	
                6.6

              	
                [***]

              

      

      

      
        	
                6.7

              	
                [***]

              

      

      

      
        	
                6.8

              	
                [***]

              

      

      

      

      ARTICLE
        7 - CERTIFICATION

      

      
        	
                7.1

              	
                Bombardier
                  has obtained or will obtain (a) TC, a TC Type Certificate (Transport
                  Category), and (b) from the FAA, an FAA Type Certificate for the
                  Aircraft
                  purchased under this Agreement. 

              

      

      

      
        	
                7.2

              	
                Bombardier
                  shall provide to Buyer a TC Certificate of Airworthiness (Transport
                  Category) for export to the United States of America on or before
                  the
                  Delivery Date of each Aircraft, which will bear a statement of
                  compliance
                  with the type certificate which will make such Aircraft immediately
                  eligible for the issuance of and enable Buyer to obtain an FAA
                  Certificate
                  of Airworthiness for such Aircraft, unless such statement of compliance
                  is
                  not available due to Buyer’s noncompliance with the provisions of Articles
                  6.1, 6.2 or 6.3. 

              

      

      

      
        	
                7.3

              	
                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

              	
                Buyer
                  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 Buyer with such
                  assistance
                  as it may reasonably request to obtain a Canadian export license
                  to enable
                  Buyer 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

              	
                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. 

              

      

      

      ARTICLE
        8 - DELIVERY AND ACCEPTANCE PROCEDURE

      

      
        	
                8.1

              	
                The
                  Aircraft shall be offered to Buyer for inspection and acceptance
                  Ex Works
                  at Bombardier’s facility in Mirabel, Québec or other Bombardier approved
                  facility reasonably acceptable to Buyer for immediate export during
                  the
                  Scheduled Delivery Month. 

              

      

      

      
        	
                8.2

              	
                No
                  delivery of an Aircraft shall be scheduled beyond [***], except
                  due to any
                  inability of Bombardier to provide a delivery position prior to
                  such date,
                  any Excusable Delay, Non-Excusable Delay or any default by Bombardier
                  under the Agreement. 

              

      

      

      
        	
                8.3

              	
                [***]

              

      

      

      
        	
                8.4  

              	
                Bombardier
                  shall give Buyer at least [***]days advance
                  Notice by
                  either overnight courier or facsimile as provided in Article 16,
                  of the
                  projected two weeks during which each Aircraft may be ready for
                  inspection
                  and delivery, and at least [***] days similar
                  advance
                  Noitce, of the projected date of readiness of each Aircraft for
                  inspection
                  and delivery.

              

      

      

      
        	
                 

              	
                In
                  addition, Bombardier shall give Buyer at least ten (10) working
                  days
                  advance Notice, by either overnight courier or facsimile as provided
                  in
                  Article 16, of the Readiness Date for each Aircraft. Bombardier
                  will use
                  its good faith reasonable efforts to offer the Aircraft to Buyer
                  for
                  inspection, acceptance and immediate export at least [***] days prior
                  to the end
                  of the applicable Scheduled Delivery Month.  Buyer agrees to
                  inspect and proceed with delivery and immediate export of the Aircraft,
                  commencing on the Readiness Date. 

              

      

      

      

      
        	
                8.5

              	
                Within
                  two (2) days following receipt by Buyer of notice of the Readiness
                  Date,
                  Buyer shall: 

              

      

      

      
        	
                 

              	
                 (a)

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

              

      

      

      
        	
                 

              	
                (b)

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

              

      

      

      
        	
                8.6

              	
                Buyer
                  shall have [***]
                  consecutive working days commencing on the Readiness Date in which
                  to
                  complete the inspection and flight test (such [***] working
                  day period
                  being the  “Acceptance Period”).

              

      

      

      
        	
                8.7

              	
                Up
                  to four (4) representatives of Buyer may participate in Buyer’s ground
                  inspection of the Aircraft and two (2) representatives of Buyer
                  may
                  participate in the flight test [***].  Bombardier
                  shall, if requested by Buyer, perform an acceptance flight of not
                  less
                  than one (1) and not more than [***] hours
                  duration.  Ground inspection and flight test shall be conducted
                  in accordance with those acceptance procedures [***]  At all
                  times during ground inspection and flight test, Bombardier shall
                  retain
                  control over the Aircraft.  The agreed acceptance testing
                  procedures shall be sufficient to reasonably demonstrate the Aircraft’s
                  compliance with the Specification [***]

              

      

      

      
        	
                8.8

              	
                If
                  no Aircraft material defect or discrepancy is revealed during the
                  ground
                  inspection or flight test, Buyer shall accept the Aircraft on or
                  before
                  the last day of the Acceptance Period in accordance with the provisions
                  of
                  Article 8.10, [***].
                  

              

      

      

      
        	
                8.9

              	
                If
                  any material defect or discrepancy in the Aircraft is revealed
                  by Buyer’s
                  ground inspection or flight test, the defect or discrepancy will
                  promptly
                  be corrected by Bombardier, at no cost to Buyer, which correction
                  may
                  occur during or after the Acceptance Period depending on the nature
                  of the
                  defect or discrepancy and the time required for correction, provided
                  that
                  Bombardier will use its good faith efforts to correct any such
                  defect or
                  discrepancy on or before the expiration of the Acceptance Period
                  and
                  allowing sufficient time before such expiration to permit the conduct
                  of
                  additional test flights.  To the extent necessary to verify such
                  correction, Bombardier shall perform one (1) or more further acceptance
                  flights. [***].
                  

              

      

      

      
        	
                8.10

              	
                Upon
                  successful completion of the ground inspection and acceptance flight
                  of
                  the Aircraft and correction of any material defects or discrepancies:
                  

              

      

      

      
        	
                 

              	
                (a)

              	
                Buyer
                  will sign a Certificate of Acceptance (in the form of Exhibit I
                  hereto)
                  for the Aircraft. Execution of the Certificate of Acceptance by
                  or on
                  behalf of Buyer shall be evidence of Buyer having examined the
                  Aircraft
                  and found it in accordance with the provisions of this Agreement.
                  The date
                  of execution and delivery of the Certificate of Acceptance shall
                  be the
                  “Acceptance Date”; 

              

      

      

      
        	
                 

              	
                (b)

              	
                Bombardier
                  will supply a TC Certificate of Airworthiness for Export and other
                  documentation required under this Article 8; and
                  

              

      

      

      
        	
                 

              	
                (c)

              	
                Buyer
                  shall pay Bombardier the balance of the Aircraft Purchase Price
                  and any
                  other amounts agreed by the parties that are due with respect to
                  such
                  Aircraft, at which time Bombardier shall issue an FAA bill of sale
                  and a
                  full warranty bill of sale (in the form set forth in Exhibit II
                  hereto)
                  passing to Buyer good title to the Aircraft free and clear of all
                  liens,
                  claims, charges and encumbrances except for those liens, charges
                  or
                  encumbrances created by or claimed through Buyer (the “Bill of Sale”);
                  

              

      

      

      
        	
                 

              	
                (d)

              	
                Delivery
                  of the Aircraft shall be evidenced by the execution and delivery
                  of the
                  Bill of Sale, the FAA Bill of Sale and of the Certificate of Receipt
                  of
                  Aircraft (in the form of Exhibit III hereto);

              

      

      

      
        	
                 

              	
                [***]

              

      

      
        	
                8.11

              	
                [***]

              

      

      
        	
                8.12

              	
                [***]

              

      

      

      
        	
                8.13

              	
                [***]

              

      

      

      ARTICLE
        9 - TITLE AND RISK

      

      
        	
                9.1

              	
                Title
                  to the Aircraft and risk of loss of or damage to the Aircraft passes
                  to
                  Buyer [***]and
                  Bombardier’s execution and delivery of the Bill of Sale to Buyer on the
                  Delivery Date. 

              

      

      

      
        	
                9.2

              	
                If,
                  after transfer of title on the Delivery Date, the Aircraft remains
                  in or
                  is returned to the care, custody or control of Bombardier, Buyer
                  shall
                  retain risk of loss of, or damage to the Aircraft and for itself
                  and on
                  behalf of its insurer(s) hereby waives and renounces to, 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 [***].

              

      

      

      
        	
                9.3

              	
                At
                  the time of delivery of the Aircraft to Buyer, the Aircraft shall
                  be free
                  and clear of all liens, claims, charges and encumbrances of every
                  kind
                  whatsoever, except those arising through Buyer.

              

      

      

      ARTICLE
        10 - CHANGES

      

      
        	
                10.1

              	
                Buyer
                  Requested Changes 

              

      

      

      
        	
                 

              	
                Should
                  Buyer request any change to the Aircraft from that described in
                  the
                  Specification as supplemented by the Buyer Selected Optional Features,
                  Bombardier shall advise Buyer, to the extent reasonably practical,
                  of the
                  effect, if any, of such change request on:

              

      

      

      
        	
                 

              	
                (a)

              	
                the
                  Scheduled Delivery Date or Scheduled Delivery Month, as applicable;
                  

              

      

      

      
        	
                 

              	
                (b)

              	
                the
                  price and payment terms applicable to the Change Order; and
                  

              

      

      

      
        	
                 

              	
                (c)

              	
                [***]
                  .
                  

              

      

      

      Such
        Change Order shall become effective and binding on the parties hereto when
        signed by a duly authorized representative of each party and any such change
        shall be made as a Change Order agreed by Buyer and Bombardier.

      

      
        	
                10.2

              	
                Bombardier,
                  may without Buyer’s consent and at no cost to Buyer:
                  

              

      

      

      
        	
                 

              	
                (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) to
        prevent delays in manufacture or delivery, or

      3) 
        to meet
        the requirements of Articles 2 and 8, other than for a Regulatory Change
        to
        which the provisions of Articles 7.4 and 7.5 of this Agreement shall
        apply,

      

      
        	
                 

              	
                provided,
                  however, that such substitution, change or modification shall not
                  materially affect the Aircraft Purchase Price, the Scheduled Delivery
                  Month or the Aircraft performance characteristics, warranties,
[***]and service
                  life
                  policy.  Any change made in accordance with the provisions of
                  this Article 10.2 shall be deemed to be a “Permitted Change”.
                  

              

      

      

      
        	
                10.3

              	
                For
                  any changes to the Aircraft,
                  other than Regulatory Changes applicable to all aircraft or to
                  all
                  aircraft of the same category as the Aircraft, having a material
                  negative
                  impact to Buyer on Buyer’s Aircraft Purchase Price, the price of any
                  individual component, the Scheduled Delivery Date or Scheduled
                  Delivery
                  Month or the Aircraft performance characteristics, warranties,
                  [***]and
                  service life
                  policy or
                  upon
                  interchangeability/replaceability of Spare Parts, Bombardier will
                  obtain
                  Buyer’s consent prior to implementing such change.  [***]

              

      

      
        	
                10.4

              	
                If
                  any addition or change to, or modification or testing of an Aircraft
                  is
                  required by any law or governmental regulation or requirement [***] or interpretation
                  thereof by any governmental agency having jurisdiction including,
                  without
                  limitation, the FAA, in order to meet the requirements of Articles
                  7.1 or
                  7.2 (a “Regulatory Change”), unless otherwise agreed, Bombardier shall
                  implement such Regulatory Change to the affected Aircraft on or
                  prior to
                  the deadline for accomplishing such Regulatory Change provided
                  that in
                  discharging its obligations hereunder Buyer agrees that Bombardier
                  may
                  take into consideration the commercially reasonable needs of the
                  other
                  operators affected by such Regulatory Change or Bombardier’s prior
                  commitments to such operators and the availability of parts; provided
                  further, however, Bombardier shall not discriminate against Buyer
                  in
                  taking any such action. [***].
                  

              

      

      

      
        	
                10.5

              	
                [***]

              

      

      Bombardier
        shall issue a Change Order, reflecting any Regulatory Change required to
        be made
        under this Article 10, which shall set forth in detail the particular changes
        to
        be made and the effect, if any, of such changes on design, performance, weight,
        balance, time of delivery, and for Buyer Responsible Regulatory Changes,
        on the
        Aircraft Base Price.

      

      
        	
                10.6

              	
                Bombardier
                  reserves the right to make product improvements at no cost to Buyer
                  to the
                  Aircraft without Buyer’s consent, provided that there will be no material
                  change in Buyer’s Aircraft Purchase Price, the price of any individual
                  component, the Scheduled Delivery Date or Scheduled Delivery Month
                  or the
                  Aircraft performance characteristics, warranties, [***] and service
                  life
                  policy or upon interchangeability/replaceability of Spare
                  Parts.  Bombardier will obtain Buyer’s consent for any product
                  improvements which would have a material negative impact on Buyer’s
                  Aircraft Purchase Price, the price of any individual component,
                  the
                  Scheduled Delivery Date or Scheduled Delivery Month, the Aircraft
                  performance characteristics, warranties, [***] and service
                  life
                  policy or upon interchangeability/replaceability of Spare Parts.
                  

              

      

      

      
        	
                 

              	
              

      

      ARTICLE
        11 - BUYER’S REPRESENTATIVES AT BOMBARDIER SITE

      

      
        	
                11.1

              	
                From
                  time to time, commencing [***] months prior
                  to the
                  Scheduled Delivery Month of the first Aircraft to be delivered
                  and ending
                  with the Delivery Date of the last Aircraft purchased hereunder,
                  subject
                  to Article 11.3 Bombardier shall furnish, without charge, office
                  space at
                  Bombardier’s facility relating to the manufacture of the aircraft for one
                  (1) representative of Buyer.  Buyer shall be responsible for all
                  expenses of its representative and shall notify Bombardier at least
[***]calendar
                  days prior to
                  the first scheduled visit of such representative and [***]for each
                  subsequent
                  visit. 

              

      

      

      
        	
                11.2

              	
                Bombardier’s
                  and Bombardier’s affiliates’ facilities relating to the manufacture of the
                  Aircraft shall be accessible to Buyer’s representative during normal
                  working hours.  Buyer’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 on Buyer’s Aircraft provided there
                  shall be no disruption in the performance of the work.
                  

              

      

      

      
        	
                11.3

              	
                Buyer’s
                  representative shall conform to Bombardier’s rules and regulations and any
                  other rules and regulations applicable at the facilities being
                  visited and
                  on or before arrival at said facilities shall conform to such rules
                  and
                  regulations. 

              

      

      

      
        	
                11.4

              	
                At
                  any time prior to delivery of the Aircraft, Buyer’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. Formal communication between Buyer’s representative and
                  Bombardier shall be solely through Bombardier’s Contract Department or its
                  designate. 

              

      

      

      ARTICLE
        12 - DELAY AND FAILURE TO TAKE DELIVERY

      

      
        	
                12.1

              	
                [***]

              

      

      

      
        	
                12.2

              	
                [***]

              

      

      

      
        	
                12.3

              	
                [***]

              

      

      
        	
                 

              	
                (a)
                  

              

      

      

      
        	
                12.4

              	
                [***]

              

      

      

      
        	
                12.5

              	
                [***].
                  

              

      

      

      
        	
                12.6

              	
                [***]

              

      

      

      ARTICLE
        13 - INTENTIONALY DELETED

      

      ARTICLE
        14 - LOSS OR DAMAGE

      

      
        	
                14.1

              	
                In
                  the event that prior to the Delivery Date of any Aircraft, such
                  Aircraft
                  is lost, destroyed or damaged beyond repair due to any cause or
                  reason
                  (the “Destruction Event”), Bombardier shall promptly notify Buyer in
                  writing.  [***], Bombardier
                  shall use
                  commercially reasonable efforts to provide Buyer with the next
                  available
                  aircraft or a replacement hereunder, subject to Bombardier’s other written
                  commitments and production lead times.  [***], the terms
                  and
                  conditions of this Agreement applicable to the destroyed aircraft
                  (including the Base Price) shall apply to the replacement aircraft,
[***]Nothing herein
                  shall
                  obligate Bombardier to manufacture and deliver such replacement
                  aircraft
                  if it would require the reactivation or acceleration of its production
                  line for the model of aircraft purchased hereunder.
                  

              

      

      

      
        	
                14.2

              	
                [***]

              

      

      

      
        	
                14.3

              	
                [***]

              

      

      

      ARTICLE
        15 - TERMINATION

      

      
        	
                15.1

              	
                In
                  additon to termination rights which are provided for in Article
                  15.2
                  below, either party may terminate this Agreement by written notice
                  to the
                  other party in the event such other party ceases doing business
                  as a going
                  concern, suspends all or substantially all of its business operations,
                  makes an assignment for the benefit of creditors, generally does
                  not pay
                  its debts as they become due or admits in writing its inability
                  to pay its
                  debts, petitions for or acquiesces in the appointment of any receiver,
                  trustee or similar officer to liquidate or conserve its business
                  or any
                  substantial part of its assets, commences any legal proceedings
                  such as
                  bankruptcy, reorganization or similar proceeding, or becomes the
                  object of
                  any such proceeding, unless such proceeding is dismissed or stayed
                  within
                  a reasonable period, not to exceed [***] days, or
                  if a
                  material writ of attachment and execution or any similar process
                  is issued
                  or levied against any significant part of its property and is not
                  released, stayed, bonded or vacated within [***] days after
                  its issue
                  or levy. 

              

      

      

      
        	
                15.2

              	
                In
                  addition, this Agreement may be terminated, in whole or in part,
                  or as to
                  any one Aircraft before the Delivery Date with respect to such
                  Aircraft:
                  

              

      

      

      
        	
                 

              	
                (a)

              	
                as
                  otherwise provided in this Agreement; or

              

      

      

      
        	
                 

              	
                (b)

              	
                by
                  Bombardier, if Buyer is in default or breach of any material term or
                  condition of this Agreement and Buyer does not cure such default
                  or breach
                  within [***] calendar
                  days after receipt of notice from Bombardier specifying such default
                  or
                  breach [***]days
                  thereafter; or 

              

      

      

      
        	
                 

              	
                (c)

              	
                by
                  Buyer, if [***].
                  

              

      

      

      
        	
                15.3

              	
                In
                  case of termination of this Agreement by Bombardier in whole or
                  in part
                  pursuant to this Article 15: 

              

      

      

      
        	
                 

              	
                (a)

              	
                all
                  rights which Buyer has under this Agreement or any interest or
                  claim Buyer
                  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 Buyer [***].
                  

              

      

      

      
        	
                 

              	
                (c)

              	
                [***],
                  Bombardier shall be
                  entitled to recover from Buyer all costs, expenses, losses and
                  damages
                  incurred by Bombardier as a direct result of Buyer’s default including,
                  without limitation, all costs incurred as a result of disruption
                  in
                  production, training expenses and selling expenses to re-sell the
                  terminated Aircraft, the cost of all vendor goods purchased in
                  order to
                  configure the terminated Aircraft to Buyer’s specification and costs
                  associated with reconfiguring the terminated Aircraft in order
                  to re-sell
                  the Aircraft and any payments received by Bombardier with respect
                  to all
                  undelivered terminated Aircraft shall be retained by Bombardier
                  and
                  applied against such costs, expenses, losses and damages [***].
                  

              

      

      

      
        	
                15.4

              	
                In
                  the case of a termination by Buyer under Article 15.1 or 15.2(c)
                  of this
                  Agreement that portion of all advance payments then held by Bombardier
                  attributable to undelivered Aircraft as to which the termination
                  is
                  applicable shall be returned to Buyer [***]

              

      

      

      
        	
                15.5

              	
                [***]

              

      

      

      
        	
                15.6

              	
                [***]

              

      

      

      ARTICLE
        16 - NOTICES

      

      
        	
                16.1

              	
                Any
                  Notice to be given or required under this Agreement shall be provided
                  in
                  writing by registered mail, courier or facsimile providing reasonable
                  proof of transmission, except that no Notice shall be sent by mail
                  if
                  disruption of postal service exists or is threatened either in
                  the country
                  of origin or of destination, by the party giving the Notice and
                  shall be
                  addressed as follows: 

              

      

      

      
        	
                 

              	
                (a)

              	
                Notices
                  to Bombardier shall be addressed to:

              

      

      

      
        	
                 

              	
                Bombardier
                  Inc. 

              

      

      
        	
                 

              	
                Bombardier
                  Aerospace Regional Aircraft 

              

      

      
        	
                 

              	
                123
                  Garratt Boulevard 

              

      

      
        	
                 

              	
                Downsview,
                  Ontario 

              

      

      
        	
                 

              	
                Canada
                  

              

      

      
        	
                 

              	
                M3K
                  1Y5 

              

      

      
        	
                 

              	
                Attention:
                  Director of Contracts 

              

      

      
        	
                Facsimile:

              	
                [***]
                  

              

      

      

      
        	
                (b)  

              	
                Notices
                  to Buyer shall be addressed to:

              

      

      Pinnacle
        Airlines, Inc.

      
        	
                 

              	
                1689
                  Nonconnah Boulevard 

              

      

      
        	
                 

              	
                Memphis,
                  Tennessee, 38132 

              

      

      
        	
                 

              	
                Attention:
                  _______________________ 

              

      

      
        	
                 

              	
                Facsimile:
                  _______________________ 

              

      

      

      
        	
                16.2

              	
                Notice
                  given in accordance with Article 16.1 shall be deemed sufficiently
                  given
                  to by the addressees when received:

              

      

      

      
        	
                 

              	
                (a)

              	
                if
                  delivered by hand, on the day when the same shall have been so
                  delivered;
                  or 

              

      

      

      
        	
                 

              	
                (b)

              	
                if
                  mailed or sent by courier on the day indicated on the corresponding
                  acknowledgment of receipt; or 

              

      

      

      
        	
                 

              	
                (c)

              	
                if
                  sent by facsimile on the day indicated by the acknowledgment or
                  the answer
                  back of the receiver in provable form; provided, however, an
                  acknowledgment of receipt shall be conclusive only as to the receipt
                  of
                  such Notice and shall not constitute the agreement of the addressee
                  with
                  the content of the Notice. 

              

      

      

      
        	
                16.3

              	
                Notwithstanding
                  the foregoing, any Notice given under this Article 16 or otherwise
                  with
                  respect to any asserted breach or default or which exercises or
                  waives any
                  right of termination hereunder shall only be given by personal
                  delivery,
                  courier or registered mail. 

              

      

      

      ARTICLE
        17 - INDEMNITY AGAINST INTELLECTUAL PROPERTY INFRINGEMENT

      

      
        	
                17.1

              	
                In
                  the case of any actual or alleged infringement of any Canadian
                  or United
                  States patent or, subject to the conditions and exceptions set
                  forth
                  below, any patent issued under the laws of any other country in
                  which
                  Buyer from time to time may lawfully operate the Aircraft (“Other
                  Patents”), by the Aircraft, or by any system, accessory, equipment or part
                  installed in such Aircraft at the time title to such Aircraft passes
                  to
                  Buyer, Bombardier shall indemnify, protect and hold harmless Buyer
                  from
                  and against all claims, suits, actions, liabilities, damages and
                  costs
                  resulting from the infringement, excluding any indirect, incidental,
                  consequential, or punitive damages (which include without limitation
                  loss
                  of revenue or loss of profit) and Bombardier shall, at its option
                  and
                  expense: 

              

      

      

      
        	
                 

              	
                (a)

              	
                procure
                  for Buyer 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 similar nature
                  and
                  quality that is non-infringing; 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
                  obligations hereunder shall extend to Other Patents 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.

      

      
        	
                17.2

              	
                [***]

              

      

      

      
        	
                 

              	
                (a)

              	
                [***]

              

      

      

      
        	
                 

              	
                (b)

              	
                [***]

              

      

      

      
        	
                 

              	
                (c)

              	
                [***]

              

      

      

      
        	
                17.3

              	
                The
                  foregoing indemnities in Articles 17.1 [***] do not apply
                  to:  (i) [***], or to avionics
                  and
                  engines, or (ii) any computer software not supplied by or approved
                  for use
                  by Bombardier with respect to or in support of the Aircraft, system,
                  accessory, equipment or part that was manufactured by a third party
                  to
                  Bombardier’s detailed design without Bombardier’s authorization, or (iii)
                  Technical Data not described in Annex A-1 under this Agreement.
                  

              

      

      

      
        	
                17.4

              	
                Buyer’s
                  remedies and Bombardier’s obligations and liabilities under this Article
                  are conditional upon:  (i) Buyer giving Bombardier written
                  notice within ten (10) days after Buyer receives notice of a suit
                  or
                  action against Buyer alleging infringement or within [***] days after
                  Buyer
                  receives any other written claim of infringement, (ii) Buyer uses
                  reasonable efforts in full cooperation with Bombardier to reduce
                  or
                  mitigate any such expenses, damages, costs or royalties involved,
                  any
                  costs or expenses incurred by Buyer in so doing being subject to
                  indemnity
                  by Bombardier hereunder, and (iii) Buyer 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 [***].  Provided
                  Bombardier meets its obligations under this Article 18, and assumes
                  control of any negotiations or the defense of any legal action
                  hereunder,
                  Buyer’s remedy and Bombardier’s obligation and liability are further
                  conditional upon Bombardier’s prior approval of Buyer’s payment or
                  assumption of any liabilities, expenses, damages, royalties or
                  costs for
                  which Bombardier may be held liable or responsible.
                  

              

      

      

      
        	
                17.5

              	
                THE
                  REMEDY PROVISIONS PROVIDED
                  UNDER ARTICLE 17 HEREOF (THE “PATENT INDEMNITY”) CONSTITUTE BUYER’S SOLE
                  AND EXCLUSIVE REMEDY AND RIGHT CONCERNING PATENT INFRINGEMENT RESPECTING
                  ANY AIRCRAFT, SYSTEM, ACCESSORY, EQUIPMENT, PART DELIVERED OR PROVIDED
                  UNDER THIS AGREEMENT AND BUYER WAIVES, RELEASES, AND RENOUNCES
                  ALL OTHER
                  INDEMNITIES, OBLIGATIONS, AND LIABILITIES OF BOMBARDIER AND ALL
                  OTHER
                  RIGHTS, CLAIMS AND REMEDIES OF BUYER AGAINST BOMBARDIER OF ANY
                  KIND,
                  EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE WITH RESPECT TO
                  ANY PATENT
                  INFRINGEMENT BY ANY AIRCRAFT, SYSTEM, ACCESSORY, EQUIPMENT, PART
                  DELIVERED
                  OR PROVIDED UNDER THIS
                  AGREEMENT.

              

      

      

      ARTICLE
        18 - LIMITATION OF LIABILITY; DISCLAIMER AND RELEASE;
        INDEMNIFICATION

      

      
        	
                18.1

              	
                THE
                  WARRANTIES, OBLIGATIONS AND LIABILITIES OF BOMBARDIER AND THE REMEDIES
                  OF
                  BUYER PROVIDED IN THE BILL OF SALE, ANNEX A-1 AND ANNEX B-1 AND
                  IN EACH OF
                  THE [***] LETTER
                  AGREEMENT ARE
                  EXCLUSIVE AND IN SUBSTITUTION FOR, AND BUYER HEREBY WAIVES, RELEASES
                  AND
                  RENOUNCES, ALL OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF
                  BOMBARDIER
                  AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF BUYER AGAINST BOMBARDIER
                  OF
                  ANY KIND, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, WITH
                  RESPECT TO
                  ANY NONCONFORMANCE WITH SPECIFICATION OR DEFECT IN ANY AIRCRAFT,
                  BOMBARDIER PRODUCT, MATERIALS, TRAINING, SERVICES, TECHNICAL DATA
                  OR
                  COMPUTER SOFTWARE OR OTHER THING PROVIDED UNDER THIS AGREEMENT,
                  INCLUDING,
                  BUT NOT LIMITED TO: 

              

      

      

      
        	
                (A)

              	
                ANY
                  IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS OR SUITABILITY;
                  

              

      

      

      
        	
                (B)  

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

              

      

      

      
        	
                (C)

              	
                ANY
                  OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR DAMAGE
                  TO ANY
                  AIRCRAFT SUBJECT TO THIS AGREEMENT;

              

      

      

      
        	
                 

              	
                [***]

              

      

      

      
        	
                18.2

              	
                EXCLUSION
                  OF
                  CONSEQUENTIAL AND OTHER DAMAGES.  BOMBARDIER WILL HAVE NO
                  OBLIGATION OR LIABILITY OF ANY KIND, WHETHER ARISING BY LAW, OR
                  OTHERWISE
                  WHETHER OR NOT ARISING FROM THE NEGLIGENCE OF BOMBARDIER, OR OTHERWISE,
                  FOR LOSS OF USE, REVENUE OR PROFIT, OR FOR ANY OTHER INDIRECT,
                  INCIDENTAL,
                  CONSEQUENTIAL OR PUNITIVE DAMAGES WITH RESPECT TO ANY NONCONFORMANCE
                  WITH
                  SPECIFICATION OR DEFECT IN ANY AIRCRAFT, BOMBARDIER PRODUCT, MATERIALS,
                  TRAINING, SERVICES, TECHNICAL DATA, COMPUTER, SOFTWARE OR OTHER
                  THING
                  PROVIDED UNDER THIS AGREEMENT. [***]

              

      

      

      

      
        	
                18.3

              	
                [***]

              

      

      

      

      
        	
                18.4  

              	
                THE
                  WAIVERS, RELEASES, RENUNCIATIONS, LIMITATIONS AND EXCLUSIONS OF
                  LIABILITY
                  IN THIS ARTICLE 18 SHALL BE BINDING UPON AND THE BENEFITS THEREOF
                  SHALL
                  EXTEND TO THE OTHER DIVISIONS, OTHER SUBSIDIARIES, AND OTHER AFFILIATES
                  OF
                  EACH RESPECTIVE PARTY AND TO THE OFFICERS, DIRECTORS, EMPLOYEES
                  AND
                  REPRESENTATIVES OF SUCH RESPECTIVE DIVISIONS, SUBSIDIARIES AND
                  OTHER
                  AFFILIATES ON WHOSE BEHALF AND FOR WHOSE BENEFIT EACH PARTY IS,
                  FOR
                  PURPOSES OF THIS ARTICLE 18, ACTING AS AGENT AND TRUSTEE BUT SOLELY
                  WITH
                  RESPECT TO ANY CLAIM, CAUSE OF ACTION OR MATTER ARISING UNDER,
                  IN
                  CONNECTION WITH OR PURSUANT TO THIS AGREEMENT AND NOT WITH RESPECT
                  TO ANY
                  CLAIM, CAUSE OF ACTION OR MATTER ARISING UNDER IN CONNECTION WITH
                  OR
                  PURSUANT TO ANY OTHER AGREEMENT, RELATIONSHIP OR OTHER UNDERTAKING
                  WHICH
                  IS INDEPENDENT OR SEPARATE FROM THIS AGREEMENT OR THE TRANSACTIONS
                  CONTEMPLATED HEREBY.

              

      

      

      
        	
                18.5  

              	
                NOTHING
                  CONTAINED IN THIS ARTICLE 18 SHALL BE INTERPRETED AS A WAIVER,
                  RELEASE OR
                  RENUNCIATION BY BUYER OR BOMBARDIER OF ANY RIGHT, REMEDY OR RECOURSE
                  AVAILABLE TO EITHER OF THEM WITH RESPECT TO CLAIMS OF THIRD
                  PARTIES.

              

      

      

      ARTICLE
        19 - ASSIGNMENT

      

      
        	
                19.1

              	
                Buyer
                  shall have no right to
                  assign its interest in the aircraft or under this Agreement [***]

              

      

      

      
        	
                19.2

              	
                Bombardier
                  may assign any of its rights to receive money hereunder without
                  the prior
                  consent of Buyer, provided that such assignment shall not increase
                  Buyer’s
                  liabilities or reduce its rights under this Agreement, such party
                  shall
                  agree in writing not to interfere with Buyer’s rights under this Agreement
                  and Bombardier shall reimburse Buyer for any costs incurred by
                  Buyer
                  relating to such assignment. 

              

      

      

      ARTICLE
        20 - SUCCESSORS

      

      
        	
                20.1

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

              

      

      

      ARTICLE
        21 - APPLICABLE LAWS

      

      
        	
                21.1

              	
                THIS
                  AGREEMENT SHALL BE SUBJECT
                  TO AND CONSTRUED IN ACCORDANCE WITH AND THE RIGHTS OF THE PARTIES
                  SHALL BE
                  GOVERNED BY THE LAWS OF THE [***],
                  AND THE PARTIES HAVE AGREED
                  THAT THE APPLICATION OF THE UNITED NATIONS CONVENTION ON CONTRACTS
                  FOR THE
                  INTERNATIONAL SALE OF GOODS IS HEREBY
                  EXCLUDED.

              

      

      

      

      
        	
                21.2

              	
                [***]Both
                  parties agree
                  that service of any and all legal process, summons, notices and
                  other
                  documents out of any [***] courts may
                  be made by
                  delivering a copy thereof to such party [***] to the address
                  specified in Article 16.1 

              

      

      

      
        	
                21.3

              	
                Bombardier’s
                  obligations under this Agreement shall be subject to and apply
                  only to the
                  extent permitted by applicable laws, regulations, directives and/or
                  orders
                  regarding export controls, including those of the United States.
                  

              

      

      

      
        	
                21.4

              	
                [***]

              

      

      

      ARTICLE
        22 - CONFIDENTIAL NATURE OF AGREEMENT

      

      
        	
                22.1  

              	
                This
                  Agreement including the Technical Data set forth in Annex A to
                  the
                  Agreement, is confidential between the parties and shall not, without
                  the
                  prior written consent of the other party, be disclosed by either
                  party  in whole or in part to any other person or body
                  except:  (a) to either party's counsel, special counsel,
                  accountants, auditors or financial advisors, on a need to know
                  basis (who
                  shall be advised of the confidential nature of this Agreement),
                  (b) as may
                  be required by any statute, court or administrative order or decree
                  or
                  governmental ruling or regulation of any applicable jurisdiction
                  or as may
                  be be requested by any applicable taxing or other governmental
                  authority,
                  provided that, if practicable and not in violation of any such
                  applicable
                  statute, order, decree, ruling or regulation, notice of such disclosure
                  shall be given to the other party, and (if practicable and not
                  so in
                  violation) in advance of such disclosure, and such other party
                  shall be
                  permitted (if practicable and not so in violation) to resist disclosure
                  or
                  seek confidential treatment of such disclosure and the disclosing
                  party
                  shall use all reasonable efforts to cooperate with and assist the
                  other
                  party in resisting disclosure or seeking confidential treatment
                  of such
                  disclosure, including undertaking the appropriate proceedings or
                  making
                  the appropriate applications or requests (at the cost of the other
                  party)
                  for such purpose where such other party is not entitled to do so
                  on its
                  own behalf, (c) to the extent such information is publicly available
                  other
                  than as a result of the disclosure by or on behalf of the disclosing
                  party, (d) as may be required by financial institutions or arrangers
                  involved with the financing of the Aircraft or any like kind exchanges,
                  or
                  (e) to such other persons as are and to the extent reasonably deemed
                  necessary for either party to carry out its obligations under this
                  Agreement.

              

      

      

      
        	
                ARTICLE
                  23 - AGREEMENT 

              

      

      

      
        	
                23.1

              	
                This
                  Agreement and the matters referred to herein constitutes the entire
                  Agreement between Bombardier and Buyer and supersede and cancel
                  all prior
                  agreements, negotiations, drafts, representations, brochures, alleged
                  warranties, statements, negotiations, undertakings, letters, memoranda
                  of
                  agreement, proposal, acceptances, agreements, understandings, contractsand
                  communications, whether oral or written, between Bombardier and
                  Buyer or
                  their respective agents, with respect to or in connection with
                  the subject
                  matter of this Agreement and no agreement or understanding varying
                  or
                  supplementing the terms and conditions hereof shall be binding
                  on either
                  Bombardier or Buyer hereto unless an amendment to this Agreement
                  is issued
                  and duly signed by their respective authorized representatives
                  pursuant to
                  the provisions of this Article 23.1. In the event of any inconsistencies
                  between this Agreement and any of the Appendencies, Exhibits and
                  Annexes
                  or other documents referred to herein, the provisions of this Agreement
                  shall prevail unless otherwise provided. [***]

              

      

      

      
        	
                23.2

              	
                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. 

              

      

      

      
        	
                23.3

              	
                Bombardier
                  and Buyer 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. 

              

      

      

      
        	
                23.4

              	
                Buyer
                  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 the provisions of Article
                  18.
                  

              

      

      

      
        	
                23.5

              	
                This
                  Agreement may be executed in counterparts each of which will constitute
                  one and the same document. 

              

      

      

      
        	
                23.6

              	
                The
                  parties agree that time is of the essence in all matters concerning
                  this
                  Agreement. 

              

      

      

      
        	
                23.7

              	
                The
                  failure of either party to enforce at any time any of the provisions
                  of
                  this Agreement or require at any time performance of any of the
                  provisions
                  hereof, shall in no way be construed to be a waiver of such provisions,
                  nor in any way affect the validity of this Agreement or any part
                  hereof or
                  the right of any such party thereafter to enforce each and every
                  provision
                  of this Agreement. 

              

      

      

      
        	
                23.8

              	
                [***]

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

      

      

      
        	
                For
                  and on behalf of

              	
                For
                  and on behalf of 

              

      

      

      

      
        	
                PINNACLE
                  AIRLINES, INC.

              	
                BOMBARDIER
                  INC. 

              

      

      
        	
                 

              	
                Bombardier
                  Aerospace 

              

      

      
        	
                 

              	
                Regional
                  Aircraft 

              

      

      

      
        	
                /s/
                  Philip H.
                  Trenary

              	
              	
                [***] Name:  Philip
                  H. Trenary

              	
                Name:  [***] Title:
                  President & CEO

              	
                Title:  [***]

              

      

      

      
        	
                 

              	
                [***]

              

      

      
        	
                 

              	
                Name:
                  [***]Title:  [***]

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                SCHEDULE
                  I 

              

      

      

      SCHEDULE
        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:
                  

              

      

      

      
        	
                 

              	
                [***]
                  

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                APPENDIX
                  I 

              

      

      

      
        	
                [***]

              

      

      

      APPENDIX
        I DELIVERY SCHEDULE

      
        	
                First
                  Aircraft

              	
                [***]

              
	
                Second
                  Aircraft

              	
                [***]

              
	
                Third
                  Aircraft

              	
                [***]

              
	
                Fourth
                  Aircraft

              	
                [***]

              
	
                Fifth
                  Aircraft

              	
                [***]

              
	
                Sixth
                  Aircraft

              	
                [***]

              
	
                Seventh
                  Aircraft

              	
                [***]

              
	
                Eighth
                  Aircraft

              	
                [***]

              
	
                Ninth
                  Aircraft

              	
                [***]

              
	
                Tenth
                  Aircraft

              	
                [***]

              
	
                Eleventh
                  Aircraft

              	
                [***]

              
	
                Twelfth
                  Aircraft

              	
                [***]

              
	
                Thirteenth
                  Aircraft

              	
                [***]

              
	
                Fourteenth
                  Aircraft

              	
                [***]

              
	
                Fifteenth
                  Aircraft

              	
                [***]

              
	
                Sixteenth
                  Aircraft

              	
                [***]

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                APPENDIX
                  II 

              

      

      

      APPENDIX
        II TYPE SPECIFICATION

      

      
        	
                 

              	
                CRJ:
                  (Series 900) 

              

      

      

      
        	
                 

              	
                TYPE
                  SPECIFICATION 

              

      

      

      
        	
                 

              	
                Number
                  RAD-690-100 Revision C 

              

      

      

      
        	
                 

              	
                May
                  2005 

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                Proposed
                  CRJ900 LOPA (A)
                  [***]–
76
                  Passengers

              

      

      

      [***]

      

      

      
        	
                 

              	
                APPENDIX
                  III 

              

      

      

      APPENDIX
        III BUYER SELECTED OPTIONAL FEATURES

      

      
        	
                Optional
                  Features

                CS:
                  9DT003_NC

                LOPA:
                  76 Passengers, 12 Business Class, 64 Economy

              	
                Base
                  Price

              
	
                Feature
                  No. CR)

              	
                Description
–
CRJ
                  900 New 76
                  Passenger Configuration[***]

              	
                Jul
                  2006 USD

              
	
                00-420

              	
                Long
                  Range Version (84,500 lb /38 330 kg MTOW)

              	
                [***]

              
	
                00-243

              	
                Registration
                  – United States of America

              	
                [***]

              
	
                00-244

              	
                Operation
                  - United States of America

              	
                [***]

              
	
                21-201

              	
                Baggage
                  - Temperature Control In Aft Compartment

              	
                [***]

              
	
                21-209

              	
                Ground
                  Air Conditioning Cart Connection

              	
                [***]

              
	
                23-221

              	
                CVR
                  - 2 Hours, Solid State (L3Comm)

              	
                [***]

              
	
                23-238

              	
                VHF
                  Comm - Third Radio - Digital Radio, 25 kHz (Collins
                  VHF-4000)

              	
                [***]

              
	
                23-240

              	
                HF
                  Radio-Single (Collins HF 9000)

              	
                [***]

              
	
                23
                  - 260

              	
                Announcement
                  & Music System (Hut PBS-600)

              	
                [***]

              
	
                23
                  - 426

              	
                ELT
                  – Three Frequency, Satellite Capable with Dongle (Artex, C406 – 2 &
                  DGL-1)

              	
                [***]

              
	
                25
                  - 03 - 202

              	
                Interior
                  Finish & Décor – Custom Curtains

              	
                [***]

              
	
                25-17-201

              	
                Reinforced
                  Flight Deck Door

              	
                [***]

              
	
                25-21-256

              	
                Passenger
                  Seats - Economy Class (BE - Spectrum, Incl. IAT & recline as appl, 32
                  Seat Pairs)

              	
                [***]

              
	
                25-21-280

              	
                Pax
                  Seats - Business Class (BE - Spectrum First Improved Styling, Incl.
                  IAT
                  & Recline, 4 Rows)

              	
                [***]

              
	
                25-22-203

              	
                Passenger
                  Seats - Leather Dress Covers (32 Seat Pairs)

              	
                [***]

              
	
                25-22-232

              	
                Passenger
                  Seats - Seat Mounted  Mini-Armrest @Overwing Exit Locations (B/E
                  Spectrum, Qty 4)

              	
                [***]

              
	
                25-22-233

              	
                Passenger
                  Seat - Economy Class - Seat Literature Pocket w/net(B/E Spectrum
                  (32 Seat
                  Pairs)

              	
                [***]

              
	
                25-22-235

              	
                Passenger
                  Seats - Economy Class - Transparent Life Vest Pouches (32 seat
                  pairs)

              	
                [***]

              
	
                25-22-236

              	
                Passenger
                  Seats - Business Class - Transparent Life Vest Pouches (12
                  seats)

              	
                [***]

              
	
                25-22-237

              	
                Passenger
                  Seats - Business Class - 2 Colour Leather Dress Covers (12
                  seats)

              	
                [***]

              
	
                25-22-238

              	
                Pssenger
                  Seat - Business Class - Seat Literature Pocket w/net(B/E Spectrum
                  (12 seat
                  pairs)

              	
                [***]

              
	
                25-22-239

              	
                Passenger
                  Seats - Simulated Headrest B/E Spectrum (12 seat pairs)

              	
                [***]

              
	
                25-226

              	
                Business
                  Class Section - Interior

              	
                [***]

              
	
                25-24-436

              	
                Storage
                  - Entrance area- 4-Door Configuration

              	
                [***]

              
	
                25-24-450

              	
                Wardrobe  LH
                  Forward unit (34 inches, Business Class) Incl Provisions for 2
                  stowage
                  units

              	
                [***]

              
	
                25-25-216

              	
                Partition
                  - Under bin and Aisle Curtain (three abreast)

              	
                [***]

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                25
                  - 31 - 443

              	
                G1
                  Galley - Provisions For Hot Meal & Beverage Services, 5 Trolleys (Fwd
                  RH, Aft-Facing

              	
                [***]

              
	
                25-32-209

              	
                G2
                  Galley - Provisions for Snack Service & Crew Storage (FWD, RH,
                  FWD-Facing)

              	
                [***]

              
	
                25-33-218

              	
                G3
                  Galley - Prov. For Snack, 3 Trolleys (Fwd, LH, RH-Facing)

              	
                [***]

              
	
                25-34-210

              	
                Coffee
                  Maker - Atlas Std. (APC 3510, Qty 2)

              	
                [***]

              
	
                25-34-230

              	
                Mini-Oven
                  - Atlas Std,12-Casserole (BEDF300, Qty 1)

              	
                [***]

              
	
                25-419

              	
                Cabin
                  Cool White Lighting

              	
                [***]

              
	
                25-42-200

              	
                Aft
                  Centreline Entry Lavatory

              	
                [***]

              
	
                25-43-201

              	
                Baby
                  Change Table In Lavatory (Qty 2)

              	
                [***]

              
	
                25-490

              	
                Baggage
                  - Under-floor Retrieval System

              	
                [***]

              
	
                25-61-202

              	
                Emergency
                  equipment - passenger life vests (Qty 76)

              	
                [***]

              
	
                31-240

              	
                Crew
                  Force Measurement System (CFMS)

              	
                [***]

              
	
                31-476

              	
                Data-Link
                  - ACARS with Miltope Printer (Collins CMU-4000)

              	
                [***]

              
	
                33-203

              	
                Red
                  Beacon Lights

              	
                [***]

              
	
                33-420

              	
                Baggage
                  Door Floodlights (Aft and Under-floor)

              	
                [***]

              
	
                34
                  - 236

              	
                FMS
                  – Dual ACARS Compatible (Collins FMS4200

              	
                [***]

              
	
                34-241

              	
                VHF
                  NAV - FM Immunity (VIR-432+)

              	
                [***]

              
	
                34-252

              	
                GPS-Dual
                  (Collins GPS-4000A)

              	
                [***]

              
	
                34-260

              	
                Radio
                  Altimeter-2nd (Collins)

              	
                [***]

              
	
                34-262

              	
                Altimeter-Baro
                  Setting Flashing At 18,000 Ft.

              	
                [***]

              
	
                34-270

              	
                Weather
                  Radar - Split Scan (2nd Control Panel)

              	
                [***]

              
	
                34-428

              	
                Enhanced
                  GPWS (Honeywell)

              	
                [***]

              
	
                34-466

              	
                RVSM
                  Capability (Enhanced CRJ900 Performance)

              	
                [***]

              
	
                35-204

              	
                Flight
                  Crew Full Face Oxygen Mask (Eros MagIc Mask - Three)

              	
                [***]

              
	
                35-210

              	
                Increase
                  Capacity Crew Oxygen System (77 cu. ft. /2.18 cu. m.)

              	
                [***]

              
	
                52-402

              	
                Increased
                  Passenger Accommodation via Removal of Aft Service Door - (Complete
                  Fuselage Skin)

              	
                [***]

              
	
                79-201

              	
                Remote
                  Engine Oil Replenishment System

              	
                [***]

              
	
              	
                Total
                  Buyer Selected Optional Features

              	
                [***]

              
	 	 	
                [***]

              
	 	
                One
                  Time Charges

              	
                [***]

              
	
                00-213

              	
                Certification
                  - FAA (FAR 25)

              	
                [***]

              

      

      STD
        =
        Standard

      ANAC
        = At
        No Additional Cost

      [***]

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        “A” TO APPENDIX IV

      

      FORM
        “A” TO APPENDIX IV BUYER’S CUSTOMIZED PAINT SCHEME

      

      

      

      

      

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

      

      

      
        	
                 

              	
                Dated
                  this ___ day of ______________ 200X.

              

      

      

      

      

      

      

      
        	
                 

              	
                by:
                  _________________________________ 

              

      

      
        	
                 

              	
                Name:
                  

              

      

      
        	
                 

              	
                Title:
                  

              

      

      

      

      
        	
                 

              	
                Copy
                  to: Contracts 

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                FORM
                  “B” TO APPENDIX IV 

              

      

      

      

      FORM
        “B” TO APPENDIX IV BUYER’S INTERIOR DÉCOR AND EMERGENCY EQUIPMENT
        LIST

      

      

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

      

      

      
        	
                 

              	
                Dated
                  this ___ day of ______________ 200X

              

      

      

      

      
        	
                 

              	
                by:
                  _________________________________ 

              

      

      
        	
                 

              	
                Name:
                  

              

      

      
        	
                 

              	
                Title:
                  

              

      

      

      

      
        	
                 

              	
                Copy
                  to: Contracts 

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                FORM
                  “C” TO APPENDIX IV 

              

      

      

      

      FORM
        “C” TO APPENDIX IV BUYER’S PLACARDS, LABELS & MARKINGS

      

      

                                                                      
         Pinnacle Airlines, Inc.hereby approves the attached Placards, Markings,
        and Labels as submitted by Buyer on, 200X and confirmed by Bombardier Aerospace
        on, 200X.

      

      

      
        	
                 

              	
                Dated
                  this ___ day of ______________ 200X.

              

      

      

      
        	
                 

              	
                by:
                  _________________________________ 

              

      

      
        	
                 

              	
                Name:
                  

              

      

      
        	
                 

              	
                Title:
                  

              

      

      

      

      
        	
                 

              	
                Copy
                  to: Contracts 

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                EXHIBIT
                  I 

              

      

      

      

      EXHIBIT
        I - CERTIFICATE OF ACCEPTANCE

      

      

      

      

      The
        undersigned hereby acknowledges on behalf of Buyer acceptance of the Aircraft
        bearing manufacturer's serial number __________ fitted with two engines
        MODEL________ 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 Buyer.

      

      

      Place:                                                           
        Date:                                                     

      

      Signed
        for and on behalf of Pinnacle Airlines, Inc.

      

      

      

      By:                                                                
        

      
        	
                 

              	
                Title:
                  Attorney in Fact 

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                EXHIBIT
                  II 

              

      

      

      

      EXHIBIT
        II - WARRANTY BILL OF SALE

      

      

      
        	
                1.

              	
                For
                  valuable consideration, Bombardier Inc., as owner of the full legal
                  and
                  beneficial title of the Aircraft described as follows:
                  

              

      

      

      
        	
                 

              	
                One
                  Canadair Regional Jet Model ________________

              

      

      
        	
                Aircraft
                  Bearing Manufacturer’s serial number:_________

              	
                ,
                  

              

      

      
        	
                 

              	
                With:
                  

              

      

      
        	
                 

              	
                Two
                  (2) ___________ engines serial numbers:

              

      

      

      
        	
                 

              	
                together
                  with all avionics, appliances, instruments, appurtenances, accessories,
                  furnishings and/or other equipment or property incorporated in
                  or
                  installed on or attached to said Aircraft and engines (hereinafter
                  referred to as the “Aircraft”) does this ________
                  

              

      

      
        	
                 

              	
                day
                  of ______________, 20____, hereby convey, sell, grant, transfer,
                  bargain
                  and deliver and set over to Pinnacle Airlines, Inc. (hereinafter
                  referred
                  to as “Buyer”), and unto its successors and assigns forever all of
                  Bombardier Inc.’s right, title and interest in and to such Aircraft.
                  

              

      

      

      
        	
                2.

              	
                Bombardier
                  Inc. represents and warrants to Buyer:

              

      

      

      (i)
        that
        Bombardier Inc. has good and marketable title to the Aircraft and the good
        and
        lawful right to the Aircraft and the good and lawful right to sell the same
        to
        Buyer; and

      

      (ii)
        the
        good and marketable title to the Aircraft is hereby duly vested in Buyer
        free
        and clear of all claims, liens, encumbrances and rights of others of any
        nature.  Bombardier Inc. hereby covenants and agrees to defend such
        title forever against all claims and demands whatsoever.

      

      This
        full
        Warranty Bill of Sale is governed by the internal laws of the [***].

      

      IN
        WITNESS WHEREOF, Bombardier Inc. has caused this instrument to be executed
        and
        delivered by its duly authorized personnel.

      

      BOMBARDIER
        INC.:

      

      Per:

      title:

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                EXHIBIT
                  III
                  

              

      

      

      

      EXHIBIT
        III - CERTIFICATE OF RECEIPT OF AIRCRAFT

      

      

      

      

      

      The
        undersigned hereby acknoledges to have received from Bombardier Inc., in
        ___"city"____, _____"Province"____,  _______"Country" ________, on the
        __________ day of ________, at the hour of _____________ o'clock, one (1)
        Canadair Regional Jet aircraft model  _________, bearing
        manufacturer's serial number, _______, including with the aircraft the two
        engines model ___________ bearing manufacturer's serial numbers __________
&
___________.

      

      

      

      Place:
        ____________________      Date:
        ______________

      

      

      Signed
        for and on behalf of Pinnacle Airlines, Inc.

      

      

      

      

      By:______________________________

      

      Title:
        Attorney in Fact

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        IV

      

      

      

      

      EXHIBIT
        IV - CHANGE ORDER

      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:____________________________
                  

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                Exhibit
                  V 

              

      

      

      
        	
                 

              	
                PDP
                  Payments Due at Execution 

              

      

      

      
        	
                 

              	
                [To
                  be provided based on Article 5] 

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      
        	
                 

              	
                CUSTOMER
                  SUPPORT SERVICES 

              

      

      

      
        	
                 

              	
                ANNEX
                  A-1

              

      

      

      
        	
                 

              	
                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.

              

      

      

      
        	
                 

              	
                ARTICLE
                  1 - TECHNICAL SUPPORT 

              

      

      

      
        	
                1.1

              	
                Factory
                  Service 

              

      

      

      
        	
                 

              	
                Bombardier
                  agrees to maintain or cause to be maintained the capability to
                  respond to
                  Buyer’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 CRJ900 aircraft remain
                  in
                  commercial air transport service worldwide.

              

      

      

      
        	
                 

              	
                Bombardier
                  Customer Services Action Center maintains coverage twenty-four
                  (24) hours
                  a day, three hundred and sixty-five (365) days a year to receive
                  and
                  respond to operator technical and operational queries. Specialists
                  accessible through the Action Center include airframe, interiors,
                  avionics, electrical, propulsion and hydro-mechanical systems.
                  

              

      

      

      
        	
                1.2

              	
                Start
                  Up Team 

              

      

      

      
        	
                1.2.1

              	
                Bombardier
                  will provide [***]of
                  a dedicated, localized Field Service Representative ("FSR") in
                  conjunction
                  with each Firm Aircraft acquired by Buyer. The FSR’s responsibility will
                  be to provide technical advice to Buyer for the maintenance, operation
                  and
                  trouble shooting of the Aircraft, technical advice to Buyer of
                  the line
                  maintenance and operation of the Aircraft systems and troubleshooting
                  during scheduled and unscheduled maintenance by Buyer’s designated
                  personnel. [***][***]

              

      

      

      
        	
                1.2.2

              	
                [***]

              

      

      

      
        	
                1.2.3

              	
                [***]

              

      

      

      

      
        	
                1.2.4

              	
                FSR,
                  Start-up Team 

              

      

      

      To
        assist
        Buyer in the introduction of the Aircraft into revenue service, Bombardier
        will
        assemble a “Start-Up Team” at Buyer’s main base of operation or other location
        as may be mutually agreed.  The composition of this start-up team
        shall be subject to discussion and could include operational, technical and/or
        maintenance support personnel and flight instruction staff (“Start-up Team
        Services”). Such Start-Up Team assignment shall be for a period of up to [***] and shall consist
        of up
        to[***]of flight operation
        support and up to [***]
        technical and/or maintenance support to commence at a mutually agreed
        schedule.

      

      
        	
                1.2.5

              	
                Intentionally
                  Deleted 

              

      

      

      
        	
                1.2.6

              	
                Travel
                  

              

      

      

      
        	
                 

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

              

      

      

      
        	
                1.2.7

              	
                Office
                  Facilities 

              

      

      

      
        	
                 

              	
                Buyer
                  shall furnish the FSR and the Start Up Team, at no charge to Bombardier,
                  suitable and office facilities located at Buyer’s main base of operation
                  or other location as may be mutually agreed.  [***]

              

      

      
        	
                1.2.8

              	
                Additional
                  Expenses 

              

      

      

      
        	
                 

              	
                Buyer
                  shall reimburse Bombardier (net of any additional taxes on such
                  reimbursement) the amount of any and all taxes ([***] on the income
                  of the
                  FSR and Start Up Team) [***]) and fees
                  of whatever
                  nature, including any customs duties, withholding taxes or fees
                  together
                  with any penalties or interest thereon, paid or incurred by Bombardier
                  or
                  the FSR or the Start Up Team, or other Bombardier employee solely
                  as a
                  result of or in connection with the rendering of the FSR or the
                  Start-Up
                  Team Services.  [***]

              

      

      
        	
                1.2.9

              	
                Right
                  to Stop Work 

              

      

      

      
        	
                 

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

              

      

      

      

      
        	
                 

              	
                [***]

              	
                there
                  exist war, risk of war or warlike operations, riots or insurrections
                  in
                  the area of where the FSR services or Start-Up Team Services would
                  be
                  performed; 

              

      

      

      
        	
                 

              	
                [***]

              	
                there
                  exist conditions at [***] facility
                  at which the
                  FSR services or Start-up Team services would be performed [***]dangerous
                  to the
                  safety or health of the FSR Start Up Team or other Bombardier employee;
                  provided, however, Bombardier shall only be relieved of its obligation
                  to
                  provide such FSR services or Start-Up Services during the period
                  any such
                  event or condition exists and shall promptly recommence the FSR
                  services
                  and/or Start-Up Services upon termination of any aforementioned
                  condition
                  or event[***]

              

      

      

      
        	
                1.2.10

              	
                Work
                  Permits and Clearances 

              

      

      

      
        	
                 

              	
                [***],
                  Buyer [***] in obtaining
                  and
                  arranging for all necessary work permits and airport security clearances
                  required for the FSR and the Start up Team or other Bombardier
                  employee to
                  permit timely accomplishment of the FSR and the Start Up Team services
                  [***].
                  

              

      

      

      
        	
                1.3

              	
                In-Service
                  Maintenance Data 

              

      

      

      
        	
                 

              	
                Buyer
                  agrees to provide to Bombardier in-service maintenance data in
                  order to
                  assist Bombardier in providing updates to Bombardier’s recommended
                  maintenance program.  Buyer and Bombardier shall agree on
                  standards and frequency for communication of such data.
                  

              

      

      

      
        	
                1.4

              	
                Additional
                  Services 

              

      

      

      
        	
                 

              	
                At
                  Buyer’s request Bombardier shall provide a proposal to provide such
                  additional support services as the parties may agree upon, which
                  may
                  include special investigations, maintenance and repair of the Aircraft.
                  

              

      

      

      
        	
                 

              	
                ARTICLE
                  2 - SPARE PARTS, GSE, TOOLS AND TEST EQUIPMENT

              

      

      

      
        	
                2.1.1

              	
                Definitions
                  

              

      

      

      
        	
                a.

              	
                “Bombardier
                  Parts”: 

              

      

      

      
        	
                 

              	
                any
                  spare parts, ground support equipment, tools and test equipment
                  which bear
                  an in-house Cage Code number in the Bombardier Provisioning Files
                  as that
                  expression is defined in ATA Specification 2000. [***]  [***].
                  

              

      

      

      
        	
                b.

              	
                “Power
                  Plant Parts”: 

              

      

      

      
        	
                 

              	
                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 [***]

              

      

      

      
        	
                c.

              	
                “Vendor
                  Parts”: 

              

      

      

      
        	
                 

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

              

      

      
        	
                d.

              	
                “Spare
                  Parts”: 

              

      

      

      
        	
                 

              	
                all
                  materials, spare parts, assemblies, special tools and items of
                  equipment,
                  including ground support equipment, ordered for the Aircraft by
                  Buyer from
                  Bombardier. The term Spare Parts includes Bombardier Parts, Power
                  Plant
                  Parts and Vendor Parts; 

              

      

      

      
        	
                e.

              	
                “Spare
                  Parts Price Catalogue"; 

              

      

      

      shall
        mean a list of spare parts prices [***] periodically published
        by
        Bombardier Inc.;

      

      
        	
                f.

              	
                “Order”:
                  

              

      

      

      
        	
                 

              	
                any
                  order for Spare Parts issued by Buyer to Bombardier Inc.; and
                  

              

      

      

      
        	
                g.

              	
                “Technical
                  Data”:
                  

              

      

      

      
        	
                 

              	
                shall
                  have the meaning attributed to it in Annex A-1 Article 4.1.
                  

              

      

      

      
        	
                2.1.2

              	
                Term
                  and Applicability 

              

      

      

      
        	
                 

              	
                The
                  term of this Annex A-1 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) of the Bombardier
                  CRJ900 aircraft
                  remain in commercial air transport service worldwide.  The
                  provisions of Annex A-1 Articles 2.2, 2.6.5, 2.24 and Annex B-1
                  Article
                  5.0 shall survive expiration or termination of this Agreement.
                  

              

      

      

      
        	
                2.2

              	
                Order
                  Terms 

              

      

      

      
        	
                 

              	
                Terms
                  and conditions hereof shall apply to all Orders placed by Buyer
                  with
                  Bombardier in lieu of any terms and conditions in Buyer’s purchase orders.
                  

              

      

      

      
        	
                2.3

              	
                Purchase
                  and Sale of Spare Parts 

              

      

      

      
        	
                2.3.1

              	
                Agreement
                  to Manufacture and Sell 

              

      

      

      Bombardier
        shall manufacture, or procure, and make available for sale to Buyer suitable
        Spare Parts in quantities sufficient to meet the reasonably anticipated needs
        of
        Buyer for normal maintenance and normal spares inventory replacement. Bombardier
        shall also maintain or cause to be maintained a shelf stock of certain
        Bombardier Parts selected by Bombardier to ensure reasonable re-order lead
        times
        and emergency support for the Aircraft.  During the term specified in
        Annex A-1 Article 2.2 above, Bombardier shall also maintain or cause to be
        maintained a reasonable quantity of Bombardier Parts as insurance
        parts.  Insurance parts as used herein shall include, but not be
        limited to, dispatch-essential parts such as major flight control
        surfaces.

      

      
        	
                2.4

              	
                Agreement
                  to Purchase Bombardier Parts 

              

      

      

      
        	
                2.4.1

              	
                Purchase
                  of Bombardier Parts 

              

      

      

      
        	
                 

              	
                [***]

              

      

      

      
        	
                2.4.2

              	
                Buyer’s
                  Right to Redesign or Manufacture 

              

      

      

      
        	
                 

              	
                Buyer
                  shall have a limited [***] right to
                  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;

              

      

      

      
        	
                 

              	
                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 Buyer to obtain Bombardier Parts in
                  less time
                  than Bombardier requires to furnish them;

              

      

      

      
        	
                 

              	
                c)

              	
                If
                  Buyer 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.

              

      

      

      
        	
                 

              	
                [***]

              

      

      

      
        	
                 

              	
                [***]
                  Buyer’s right to
                  redesign or to have redesigned or manufacture or to have manufactured
                  Bombardier Parts under the preceding Article 2.4.2 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 [***] 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.  Buyer shall be responsible for obtaining all regulatory
                  authority approvals required by Buyer to repair the Aircraft using
                  redesigned or manufactured Bombardier Parts as described in the
                  preceding
                  Article.  Any such redesigned part shall be identified with
                  Buyer’s part number only. 

              

      

      

      
        	
                2.4.3

              	
                Notice
                  to Bombardier of Redesigned Parts 

              

      

      

      
        	
                 

              	
                If
                  Buyer redesigns or has had any Bombardier Parts redesigned, Bombardier
                  reserves the[***]
                  rights in the redesigned parts, drawings and the manufacturing
                  rights of
                  the redesigned part. 

              

      

      

      
        	
                2.5

              	
                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-1 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. 

              

      

      

      
        	
                2.6

              	
                Spare
                  Parts Pricing 

              

      

      

      
        	
                2.6.1

              	
                Spare
                  Parts Price Catalogue 

              

      

      

      
        	
                 

              	
                Prices
                  for commonly used Bombardier Parts stocked by Bombardier shall
                  be
                  published in the Spare Parts Price Catalogue. Bombardier shall
                  hold the
                  published prices firm for catalogue listed items for a period of
                  twelve
                  (12) months and shall provide at least ninety (90) calendar days
                  notice
                  prior to changing the published price. [***] Additional
                  provisions
                  are set forth in the Spares Letter Agreement.

              

      

      

      
        	
                2.6.2

              	
                Bombardier
                  Prices for Vendor Parts 

              

      

      

      
        	
                 

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

              

      

      

      
        	
                 

              	
                2.6.3

              	
                Quotations
                  

              

      

      

      
        	
                 

              	
                Price
                  and delivery quotations for items not listed in the Spare Parts
                  Price
                  Catalogue shall be provided at Buyer’s request by
                  Bombardier.  Price quotations will be held firm for a period of
                  ninety (90) calendar days or as otherwise specified by
                  Bombardier.  Responses to quotation requests will be provided
                  within ten (10) calendar days. 

              

      

      

      
        	
                 

              	
                2.6.4

              	
                Price
                  Applicability 

              

      

      

      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 Buyer’s
        Order or as quoted by Bombardier to Buyer upon request.  If Buyer
        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.

      

      
        	
                 

              	
                2.6.5

              	
                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.
                  

              

      

      

      
        	
                 

              	
                Buyer
                  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 Buyer. [***]

              

      

      

      
        	
                 

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

              

      

      

      
        	
                 

              	
                2.6.6

              	
                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 twelve
                  (12)
                  months with a ninety (90) calendar day notice period prior to changing
                  a
                  published price. 

              

      

      

      
        	
                2.7

              	
                Provisioning
                  

              

      

      

      
        	
                2.7.1

              	
                Pre-provisioning/Provisioning
                  Conference 

              

      

      

      
        	
                 

              	
                A
                  pre-provisioning conference shall be convened on a date to be mutually
                  agreed between Buyer and Bombardier in order to:
                  

              

      

      

      
        	
                 

              	
                (i)

              	
                discuss
                  the operational parameters to be provided by Buyer to Bombardier
                  which
                  Bombardier considers necessary for preparing its quantity recommendations
                  for initial provisioning of Spare Parts to be purchased from Bombardier
                  or
                  vendors (“Provisioning Items”); 

              

      

      

      
        	
                 

              	
                (ii)

              	
                review
                  Buyer’s ground support equipment and special tool requirements for the
                  Aircraft; 

              

      

      

      
        	
                 

              	
                (iii)

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

              

      

      

      
        	
                 

              	
                (iv)

              	
                arrive
                  at a schedule of events for the initial provisioning process, including
                  the establishment of a date for the initial provisioning conference
                  (“Initial Provisioning Conference”) which shall be scheduled as mutually
                  agreed and as early as practicable.

              

      

      

      
        	
                 

              	
                The
                  time and location of the pre-provisioning conference shall be mutually
                  agreed upon between the parties; however, Bombardier and Buyer
                  shall use
                  their best efforts to convene such meeting within thirty (30) days
                  after
                  execution of the Agreement. 

              

      

      

      
        	
                 

              	
                Bombardier
                  acknowledges that Buyer may elect to take a phased approach to
                  initial
                  provisioning purchasing. 

              

      

      

      
        	
                2.8

              	
                Initial
                  Provisioning Documentation 

              

      

      

      
        	
                 

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

              

      

      

      
        	
                a)

              	
                Bombardier
                  shall provide, as applicable to Buyer, [***] or as may
                  be mutually
                  agreed, the initial issue of provisioning files as required by
                  ATA
                  Specification 2000, Chapter 1 (as may be amended by Bombardier);
                  

              

      

      

      
        	
                 

              	
                Revisions
                  to this provisioning data shall be issued by Bombardier every ninety
                  (90)
                  calendar days until ninety (90) calendar days following the Delivery
                  Date
                  of the last Aircraft or as may be mutually agreed;
                  

              

      

      

      
        	
                b)

              	
                Bombardier
                  shall provide, as required by Buyer, all provisioning data files
                  defined
                  in Chapter 1 of ATA Specification 2000; and

              

      

      

      
        	
                 

              	
                c)

              	
                the
                  Illustrated Parts Catalogue designed to support provisioning shall
                  be
                  issued concurrently with provisioning data files and revised at
                  every
                  ninety (90) calendar days until expiration of the revision service
                  described in Annex A-1, Article 4.4.

              

      

      

      
        	
                2.8.1

              	
                Obligation
                  to Substitute Obsolete Spare Parts 

              

      

      

      
        	
                 

              	
                In
                  the event that, [***]
                  following delivery of the first Aircraft, any Spare Part purchased
                  by
                  Buyer 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 Buyer’s request), Bombardier shall deliver to Buyer new and
                  usable Spare Parts in substitution for such obsolete or unusable
                  Spare
                  Parts upon return of such Spare Parts to Bombardier by
                  Buyer.  Bombardier shall credit Buyer’s account with Bombardier
                  with the price paid by Buyer for any such obsolete or unusable
                  Spare Part
                  and shall invoice Buyer for the purchase price of any such substitute
                  Spare Part delivered to Buyer. 

              

      

      

      
        	
                2.8.2

              	
                Delivery
                  of Obsolete Spare Parts and Substitutes

              

      

      

      
        	
                 

              	
                Obsolete
                  or unusable Spare Parts returned by Buyer pursuant to Annex A Article
                  2.8.1. shall be delivered to Bombardier at its plant in Quebec,
                  or such
                  other destination as Bombardier may reasonably designate. Spare
                  Parts
                  substituted for such returned obsolete or unusable Spare Parts
                  shall be
                  delivered to Buyer from Bombardier’s plant in Quebec, or such other
                  Bombardier shipping point as Bombardier may reasonably
                  designate.  Bombardier shall pay the freight charges for the
                  shipment from Buyer to Bombardier of any such obsolete or unusable
                  Spare
                  Part and for the shipment from Bombardier to Buyer of any such
                  substitute
                  Spare Part. 

              

      

      

      
        	
                2.8.3

              	
                Obligation
                  to Repurchase Surplus Provisioning Items

              

      

      

      
        	
                 

              	
                During
                  a period commencing one (1) year after the Delivery Date of the
                  first
                  Aircraft, and ending five (5) years after such Delivery Date, Bombardier
                  shall, upon receipt of Buyer’s written request and subject to the
                  exceptions in Annex A-1 Article 2.8.4, repurchase unused and undamaged
                  Provisioning Items which: (i) were recommended by Bombardier as
                  initial
                  provisioning for the Aircraft, (ii) were purchased by Buyer from
                  Bombardier, and (iii) are surplus to Buyer’s needs.
                  

              

      

      

      
        	
                2.8.4

              	
                Exceptions
                  

              

      

      

      
        	
                 

              	
                Bombardier
                  shall not be obligated under Annex A-1 Article 2.8.3 to repurchase
                  any of
                  the following: (i) quantities of Provisioning Items in excess of
                  those
                  quantities recommended by Bombardier in its Recommended Spare Parts
                  List
                  (“RSPL”) for the Aircraft, (ii) Power Plant Parts, QEC Kits, standard
                  hardware, bulk and raw materials, ground support equipment and
                  special
                  tools, (iii) Provisioning Items which have [***] a result
                  of (a)
                  Buyer’s modification of the Aircraft or (b) design improvement by the
                  Aircraft manufacturer or the vendor (other than Provisioning Items
                  which
                  have become obsolete because of a defect in design if such defect
                  has not
                  been remedied by an offer by Bombardier or the vendor to provide
                  no charge
                  retrofit kits or replacement parts which correct such defect), [***] and (iv)
                  Provisioning Items which become surplus as a result of a change
                  in Buyer’s
                  operating parameters provided to Bombardier pursuant to Annex A
                  Article
                  2.7, which were the basis of Bombardier’s initial provisioning
                  recommendations for the Aircraft. 

              

      

      

      
        	
                2.8.5

              	
                Notification
                  and Format 

              

      

      

      
        	
                 

              	
                Buyer
                  shall notify Bombardier, in writing, when Buyer desires to return
                  Provisioning Items which Buyer’s review indicates are eligible for
                  repurchase by Bombardier under the provisions of Annex A-1 Article
                  2.8.3.  Buyer’s notification shall include a detailed summary,
                  in part number sequence, of the Provisioning Items Buyer desires
                  to
                  return.  Such summary shall be in the form of listings as may be
                  mutually agreed between Bombardier and Buyer, 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 Buyer’s notification Bombardier
                  shall advise Buyer, in writing, when Bombardier’s review of such summary
                  from Buyer will be completed. 

              

      

      

      
        	
                2.8.6

              	
                Review
                  and Acceptance by Bombardier 

              

      

      

      
        	
                 

              	
                Upon
                  completion of Bombardier’s review of any detailed summary submitted by
                  Buyer pursuant to Annex A-1 Article 2.8.5., Bombardier shall issue
                  to
                  Buyer a Material Return Authorization notice (“MRA”) for those
                  Provisioning Items Bombardier agrees are eligible for repurchase
                  in
                  accordance with Annex A-1 Article 2.8.3.  Bombardier will advise
                  Buyer of the reason that any Provisioning Items included in Buyer’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 Buyer shall arrange for shipment
                  of
                  such Provisioning Items accordingly.

              

      

      

      
        	
                2.8.7

              	
                Price
                  and Payment 

              

      

      

      
        	
                 

              	
                The
                  price of each Provisioning Item repurchased by Bombardier pursuant
                  to
                  Annex A-1 Article 2.8.6 will be the original invoice price thereof,
                  escalated in accordance with the Escalation Formula. Bombardier
                  shall pay
                  the repurchase price by issuing a credit memorandum in favour of
                  Buyer
                  which may be applied against amounts due Bombardier for the purchase
                  of
                  Spare Parts and services. 

              

      

      

      
        	
                2.8.8

              	
                Return
                  of Surplus Provisioning Items 

              

      

      

      
        	
                 

              	
                Provisioning
                  Items repurchased by Bombardier pursuant to Annex A-1 Article 2.8.6
                  shall
                  be delivered to Bombardier Free Carrier (Incoterms), at its plant
                  in
                  Ontario or Quebec, or other such destination as Bombardier may
                  reasonably
                  designate. 

              

      

      

      
        	
                2.8.9

              	
                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 Annex A-1 Article 2.8.8 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
                  Annex A-1
                  Article 2.8.1 shall pass to Buyer upon delivery thereof to Buyer.
                  Title to
                  and risk of loss of any Provisioning Items repurchased by Bombardier
                  pursuant to Annex A-1 Article 2.8.3 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 therefore, pursuant
                  to Annex
                  A-1 Article 2.8.1, and the Provisioning Items which may be repurchased
                  by
                  Bombardier, pursuant to Annex A-1 Article 2.8.3, 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. 

              

      

      

      
        	
                2.9

              	
                Procedure
                  for Ordering Spare Parts 

              

      

      

      
        	
                 

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

              

      

      

      
        	
                2.9.1

              	
                Requirements
                  

              

      

      

      
        	
                 

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

              

      

      

      
        	
                2.10.2

              	
                Processing
                  of Orders 

              

      

      

      
        	
                 

              	
                Upon
                  acceptance of any Order, unless otherwise directed by Buyer, Bombardier
                  shall, if the Spare Parts are in stock, proceed [***]to prepare
                  the Spare
                  Parts for shipment to Buyer.  If Bombardier does not have the
                  Spare Parts in stock, Bombardier shall proceed to acquire or manufacture
                  the Spare Parts.  Purchase order status and actions related to
                  the shipment of Spare Parts shall be generally consistent with
                  the
                  provisions of the World Airline Suppliers Guide [***], as applicable
                  to
                  Buyer. 

              

      

      

      
        	
                2.10.3

              	
                Changes
                  

              

      

      

      
        	
                 

              	
                Bombardier
                  reserves the right, without Buyer’s consent, 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 ten percent
                  (10%).  Bombardier shall promptly give Buyer written 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 Buyer’s consent as
                  documented by written Notice (as provided in Article 16), which
                  consent
                  shall conclusively be deemed to have been given unless Buyer gives
                  Bombardier written notice of objection within fifteen (15) business
                  days
                  after receipt of Bombardier’s Notice.  In case of any objection,
                  the affected Spare Part will be deemed to be deleted from Buyer’s Order.
                  

              

      

      

      
        	
                2.10

              	
                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.
                  

              

      

      

      
        	
                2.11

              	
                Packing
                  List 

              

      

      

      
        	
                 

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

              

      

      

      
        	
                (i)  

              	
                the
                  contents of the shipment;

              

      

      
        	
                (ii)  

              	
                [***]

              

      

      
        	
                (iii)

              	
                the
                  approved signature of Bombardier’s TC authority attesting to the
                  airworthiness of the Spare Parts [***]; and
                  

              

      

      
        	
                (iv)

              	
                value
                  of the shipment for customs clearance if required.
                  

              

      

      

      
        	
                2.12

              	
                Container
                  Marks 

              

      

      

      
        	
                 

              	
                Upon
                  Buyer’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. 

              

      

      

      
        	
                2.13

              	
                Delivery,
                  Title and Risk of Loss 

              

      

      

      
        	
                2.13.1

              	
                Delivery
                  Point 

              

      

      

      
        	
                 

              	
                Spare
                  Parts shall be delivered to Buyer in one of the following manners
                  at
                  Bombardier’s sole option: 

              

      

      

      
        	
                 

              	
                (i)

              	
                Free
                  Carrier (Incoterms 2000) Bombardier’s plant in Quebec, Canada; or
                  

              

      

      
        	
                 

              	
                (ii)

              	
                Free
                  Carrier (Incoterms 2000) other Bombardier depots or shipping points;
                  or
                  

              

      

      
        	
                 

              	
                (iii)

              	
                Free
                  Carrier (Incoterms 2000) vendor’s or subcontractor’s plant.
                  

              

      

      

      
        	
                 

              	
                2.13.2
                  Delivery Time 

              

      

      

      
        	
                 

              	
                Bombardier
                  will [***]reasonable
                  efforts to ship to Buyer any and all Bombardier Parts [***] as follows:
                  

              

      

      

      
        	
                 

              	
                a)

              	
                AOG
                  Orders 

              

      

      

      
        	
                 

              	
                Ship
                  AOG Orders within four (4) hours of receipt of Order. Buyer’s affected
                  Aircraft serial  number shall be required on AOG Orders;
                  

              

      

      

      
        	
                 

              	
                b)

              	
                Critical
                  Orders (A1) 

              

      

      

      
        	
                 

              	
                Ship
                  critical Orders within twenty-four (24) hours of order receipt;
                  

              

      

      

      
        	
                 

              	
                (c)

              	
                Routine
                  Orders (A2) 

              

      

      

      
        	
                 

              	
                Ship
                  routine stock item Orders to published lead times or to Buyer’s reasonably
                  requested date, whichever occurs sooner after receipt of
                  Order.  Shipment of non-stock items shall be in accordance with
                  quoted lead times or as agreed to with Buyer;

              

      

      

      
        	
                 

              	
                d)

              	
                Initial
                  Provisioning Orders 

              

      

      

      
        	
                 

              	
                Prior
                  to the Delivery Date of the first Aircraft or as may be mutually
                  agreed
                  upon with Buyer; and 

              

      

      

      
        	
                 

              	
                e.)

              	
                Other
                  Orders 

              

      

      

      
        	
                 

              	
                Shipment
                  of stock items shall be approximately thirty (30) calendar days
                  after
                  Bombardier’s receipt of Buyer’s Order.  Shipment of non-stock
                  items shall be in accordance with quoted lead times or lead times
                  published in the then current Spare Parts Price Catalogue or provisioning
                  data. 

              

      

      

      
        	
                2.14

              	
                Collect
                  Shipments 

              

      

      

      
        	
                 

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

              

      

      

      
        	
                2.15

              	
                Freight
                  Forwarder 

              

      

      

      
        	
                 

              	
                If
                  Buyer elects to use the services of a freight forwarder for the
                  onward
                  movement of Spare Parts, Buyer 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 Buyer and any
                  Spare
                  Parts conforming to Buyer’s Order seized under such regulations will be
                  deemed to be received, inspected, and accepted by Buyer at the
                  time of
                  seizure. [***]

              

      

      
        	
                2.16

              	
                Reimbursement
                  of Expenses 

              

      

      

      
        	
                 

              	
                If
                  Bombardier gives Buyer written notice that an Order is ready for
                  shipment
                  and shipment is delayed more than thirty (30) days at Buyer’s request or
                  without Bombardier’s fault or responsibility, Buyer 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.
                  

              

      

      

      
        	
                2.17

              	
                Title
                  and Risk of Loss 

              

      

      

      
        	
                 

              	
                Property
                  and title to the Spare Parts will pass to Buyer upon payment for
                  the Spare
                  Parts in full. Until payment in full for Spare Parts, (a) title
                  to them
                  will not pass to Buyer, and (b) Bombardier maintains a purchase
                  money
                  security interest in them. Risk of loss of the Spare Parts will
                  pass to
                  the Buyer upon delivery by Bombardier. With respect to Spare Parts
                  rejected by Buyer pursuant to Annex A-1 Article 2.19, risk of loss
                  shall
                  remain with Buyer until such Spare Parts are re-delivered to Bombardier.
                  

              

      

      

      
        	
                 

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

              

      

      

      
        	
                2.18

              	
                Inspection
                  and Acceptance 

              

      

      

      
        	
                 

              	
                All
                  Spare Parts shall be subject to inspection by Buyer at destination.
                  Use of
                  Spare Parts or failure of Buyer to give notice of rejection within
                  thirty
                  (30) days after receipt shall constitute acceptance. Acceptance
                  shall be
                  final and Buyer waives the right to revoke acceptance for any reason,
                  whether or not known to Buyer at the time of acceptance. Buyer’s remedies
                  for defects discovered before acceptance are exclusively provided
                  for in
                  Annex A-1 Article 2.19 herein. 

              

      

      

      
        	
                2.19

              	
                Rejection
                  

              

      

      

      
        	
                 

              	
                Any
                  notice of rejection referred to in Annex A-1 Article 2.18 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. Buyer 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 Buyer shall be at Bombardier’s expense.  Any
                  corrected, repaired or replacement Spare Parts shall be subject
                  to the
                  provisions of this Agreement. 

              

      

      

      
        	
                2.20

              	
                Payment
                  

              

      

      

      
        	
                 

              	
                Except
                  as provided in Annex A-1 Article 2.21 below, payment terms shall
                  be net
                  thirty (30) calendar days of [***] invoice
                  date.  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 the U.S. prime interest rate as established from
                  time to
                  time by Chase Manhattan, plus two percent (2%) calculated and compounded
                  monthly. [***]

              

      

      
        	
                2.21

              	
                Payment
                  for Provisioning Items 

              

      

      

      
        	
                 

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

              

      

      

      
        	
                a)

              	
                a
                  deposit of [***] of the total price of the Provisioning Items as
                  selected
                  by Buyer, upon signature of the spares provisioning document placement
                  by
                  of the Provisioning Items Order with Bombardier; and
                  

              

      

      

      
        	
                b)

              	
                the
                  balance of the total price of Provisioning Items upon their delivery.
                  

              

      

      

      
        	
                2.22

              	
                [***]

              

      

      
        	
                2.23

              	
                Regulations
                  

              

      

      

      
        	
                 

              	
                Buyer
                  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 Buyer to make payments
                  at the
                  time and place and in the manner specified herein.
                  

              

      

      

      
        	
                2.24

              	
                Warranty
                  

              

      

      

      
        	
                 

              	
                The
                  warranty applicable to Spare Parts is set forth in Annex B-1 hereto.
                  

              

      

      

      
        	
                2.25

              	
                Cancellation
                  of Orders 

              

      

      

      
        	
                 

              	
                Except
                  as otherwise may apply to initial provisioning, if Buyer cancels
                  an Order,
                  Bombardier, at its option, shall be entitled to recover, as liquidated
                  damages, 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 ten percent (10%) of
                  the
                  price; 

              

      

      

      
        	
                c)

              	
                if
                  shop time or material charges have been made against the Order,
                  the
                  cancellation charge shall be based on the cost of such time and
                  materials,
                  plus overhead; 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.

              

      

      

      
        	
                2.26

              	
                Lease
                  

              

      

      

      
        	
                 

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

              

      

      

      
        	
                2.27

              	
                Additional
                  Terms and Conditions 

              

      

      

      
        	
                 

              	
                Bombardier’s
                  conditions of sale are deemed to incorporate the terms and conditions
                  stated herein and [***].
                  

              

      

      

      
        	
                 

              	
                ARTICLE
                  3 - TRAINING 

              

      

      

      
        	
                3.1

              	
                General
                  Terms 

              

      

      

      
        	
                3.1.1

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

              

      

      

      
        	
                3.1.2

              	
                Bombardier
                  shall offer the Programs to Buyer in the English language, at Bombardier’s
                  training facility [***] The Programs
                  shall be
                  completed prior to the Delivery Date of the last Aircraft purchased
                  herein. 

              

      

      

      
        	
                3.1.3

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

              

      

      

      
        	
                3.1.4

              	
                The
                  Programs shall be designed to reflect the model and/or configuration
                  of
                  the Aircraft and may include differences training to identify such
                  configuration or model. Manuals or other training material which
                  are
                  provided during the Programs exclude revision service, except as
                  otherwise
                  provided in this Annex A-1. 

              

      

      

      
        	
                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
                  Buyer’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 Buyer’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 Buyer.
                  

              

      

      

      
        	
                3.1.8

              	
                A
                  training conference shall be held, as soon as practicable, to establish
                  the content and schedule of the Programs.

              

      

      

      
        	
                3.2

              	
                Flight
                  Crew Training Program 

              

      

      

      
        	
                3.2.1

              	
                Ground
                  School and Simulator Training 

              

      

      

      
        	
                 

              	
                [***],
                  Bombardier will
                  provide for each delivered Aircraft at such dates as are mutually
                  agreed,
                  FAA approved transition training for [***] of Buyer’s crews
                  [***] who meet
                  the
                  minimum entry requirement provided in the applicable training
                  manual.  Each course shall consist of up to eighty (80) hours of
                  classroom instruction which may include part task trainer, Computer
                  Based
                  Training (CBT), and/or Flight Training Device (FTD).  [***]  Bombardier
                  shall provide a simulator instructor for [***]missions
                  for each crew
                  trained on Bombardier's designated simulator in Montreal; each
                  mission
                  shall consist of four (4) hours in the simulator and required
                  briefing/debriefing sessions. Bombardier shall furnish each of
                  Buyer’s
                  pilots attending the course with [***].
                  

              

      

      

      
        	
                3.2.2

              	
                In-flight
                  Training 

              

      

      
        	
                 

              	
                Should
                  Buyer require on-Aircraft flight training (in addition to simulator
                  training), such training shall be conducted on Buyer’s Aircraft after the
                  Delivery Date, for four hours each for up to a maximum of of Buyer’s
                  pilots.  Bombardier shall provide an instructor pilot at no
                  additional charge. Buyer shall be responsible for the cost of fuel,
                  oil,
                  landing fees, taxes, insurance, maintenance and any other associated
                  operating expenses required for the Aircraft during such flight
                  training.  All such training shall take place at Bombardier’s
                  facilities in Montreal, Canada. During such flights, no passengers
                  shall
                  be permitted aboard the Aircraft. 

              

      

      

      
        	
                3.2.3

              	
                Flight
                  Attendant Course 

              

      

      

      
        	
                 

              	
                Subject
                  to the terms and conditions [***], Bombardier
                  will
                  provide Buyer with one (1) flight attendant training course for
                  up to
                  [***] of Buyer’s
                  qualified personnel.  This course shall present general
                  information on the Aircraft and detailed information on the operation
                  of
                  the passenger safety and emergency equipment.   Buyer shall
                  assist Bombardier in the development of the Flight Attendant training
                  guide to incorporate Buyer’s specific equipment and procedures.
                  

              

      

      

      
        	
                3.2.4

              	
                Recurrent
                  Pilot Training 

              

      

      

      
        	
                 

              	
                Bombardier
                  shall, upon Buyer’s request, provide a proposal for a TC or FAA approved
                  recurrent pilot training course for type rated pilots, customized
                  in
                  content to meet the recurrent training requirements of Buyer’s pilots.
                  

              

      

      

      
        	
                3.2.5

              	
                Course
                  Training Material 

              

      

      

      
        	
                 

              	
                Bombardier
                  shall, upon Buyer’s request, present a proposal to provide training
                  materials used to conduct the Flight Crew Ground Training course.
                  

              

      

      

      

      
        	
                3.3

              	
                Maintenance
                  Training 

              

      

      

      
        	
                3.3.1

              	
                Airframe
                  and Power Plant Systems Maintenance Course

              

      

      

      
        	
                 

              	
                Subject
                  to the terms and conditions [***], , train
                  up to[***] of Buyer’s qualified
                  personnel [***]in an
                  airframe and powerplant systems maintenance course.  This
                  training shall emphasize detailed systems description, operation,
                  and
                  routine line maintenance practices.  The course material shall
                  be principally mechanical with electrical and avionics information
                  for
                  overall systems comprehension.  The course duration shall be for
                  a maximum of twenty-five (25) working days.  In the event a
                  portion of the above training takes place by mutual agreement at
                  Buyer’s
                  designated facility, Buyer shall be responsible for all reasonable
                  travel
                  and living expenses of Bombardier’s instructor personnel.
                  

              

      

      

      
        	
                3.3.2

              	
                Electrical
                  and Avionics Systems Maintenance Course

              

      

      

      
        	
                 

              	
                Subject
                  to the terms and conditions [***], Bombardier
                  shall
                  provide an electrical and avionics systems maintenance course for
[***].  This
                  course shall emphasize detailed systems description, operation
                  and routine
                  line maintenance practices.  The course material shall be
                  principally electrical and avionics but shall include mechanical
                  information for overall systems comprehension. The course duration
                  shall
                  be for a maximum of twenty-five (25) working days.  In the event
                  a portion of the above training takes place by mutual agreement
                  at Buyer’s
                  designated facility, Buyer shall be responsible for all reasonable
                  travel
                  and living expenses of Bombardier’s instructor personnel.
                  

              

      

      

      
        	
                3.3.3

              	
                Specialist
                  Courses 

              

      

      

      
        	
                 

              	
                At
                  Buyer’s request, Bombardier shall make a proposal for specialist courses
                  which will be derived from Bombardier’s standard courses detailed herein.
                  

              

      

      

      
        	
                3.3.4

              	
                Recurrent
                  Training 

              

      

      

      
        	
                 

              	
                At
                  Buyer’s request, Bombardier shall make a proposal for a Regulatory
                  Authority approved training plan for maintenance recurrent training.
                  

              

      

      

      
        	
                3.3.5

              	
                Vendor
                  Training 

              

      

      

      
        	
                 

              	
                At
                  Buyer’s request, Bombardier shall assist Buyer to obtain vendor
                  maintenance training. 

              

      

      

      
        	
                3.3.6

              	
                Course
                  Training Material 

              

      

      

      
        	
                 

              	
                Bombardier,
                  upon Buyer’s request, shall present a proposal to provide training
                  materials (without revision service) used to conduct Bombardier’s standard
                  maintenance training. 

              

      

      

      
        	
                3.4

              	
                Insurance
                  

              

      

      

      
        	
                3.4.1

              	
                Buyer
                  shall at all times[***] secure and
                  maintain
                  in effect, at its own expense, insurance policies covering the
                  Aircraft
                  including without limitation: 

              

      

      

      
        	
                 

              	
                a)

              	
                liability
                  insurance covering public liability, passenger, crew, property
                  and cargo
                  damage, including war and [***]  in amounts
                  not less than [***] for any single occurrence;

              

      

      

      
        	
                 

              	
                b)

              	
                all
                  risk aircraft hull and [***] insurance
                  for an
                  amount which is not less than its then [***].
                  

              

      

      

      
        	
                3.4.2

              	
                The
                  liability policy shall name Bombardier (and its [***]) as additional
                  insured.  The hull policy shall contain a waiver of subrogation
                  in favour of Bombardier (and its [***]).  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 Buyer shall not
                  be
                  required to provide insurance with respect to the manufacturing,
                  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

              	
                Manuals
                  and Other Technical Data 

              

      

      

      
        	
                 

              	
                Bombardier
                  will provide to Buyer, [***] technical
                  data
                  (collectively, “Technical Data”) as described in Attachment A, comprising
                  information on items manufactured according to Bombardier’s detailed
                  design or as may otherwise be required to reflect Aircraft instrumentation
                  as 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 provided hereunder shall be delivered to Buyer Free
                  Carrier
                  (Incoterms) Bombardier’s designated facilities and at a time to be
                  mutually agreed to between Buyer and Bombardier.
                  

              

      

      

      
        	
                 

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

              

      

      
        	
                 

              	
                Name:
                  

              

      

      
        	
                 

              	
                Address:
                  

              

      

      
        	
                 

              	
                Contact:
                  

              

      

      
        	
                 

              	
                Phone
                  #: 

              

      

      
        	
                 

              	
                Fax
                  #: 

              

      

      
        	
                 

              	
                Shipping
                  Account Number: 

              

      

      
        	
              	
                Carrier:

              

      

      
        	
                 

              	
                Account
                  Number: 

              

      

      

      
        	
                4.3

              	
                Proprietary
                  Technical Data 

              

      

      

      
        	
                 

              	
                It
                  is understood and Buyer acknowledges that the Technical Data and
                  any other
                  technical data marked as confidential 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 Buyer. Buyer agrees to use the Technical Data solely
                  to
                  maintain, operate, overhaul or repair the Aircraft or to make
                  installation, repair, maintenance or alteration thereto as provided
                  in
                  this Agreement or as otherwise allowed by Bombardier and/or the
                  vendors.
                  

              

      

      

      
        	
                 

              	
                Technical
                  Data shall not be disclosed to third parties or used by Buyer or
                  furnished
                  by Buyer 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-1 Article
                  2.4.2
                  hereof or in compliance with Article 22 this Agreement 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 

              

      

      

      
        	
                 

              	
                4.4.1

              	
                Revisions
                  to the Technical Data to reflect the Aircraft at Delivery Date
                  shall be
                  provided to Buyer within six (6) months following the Delivery
                  Date of
                  each of the Aircraft, respectively.

              

      

      

      
        	
                 

              	
                4.4.2

              	
                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 one (1) reproducible master 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.
                  

              

      

      

      
        	
                4.6

              	
                Vendor
                  Manuals 

              

      

      

      
        	
                 

              	
                All
                  vendor manuals and revisions will be shipped directly by vendors
                  to Buyer.
                  

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                ATTACHMENT
                  A

              

      

      

      
        	
                AIRLINE:

              	
                MEDIUM

              
	
                Canadair
                  Regional Jet

                Series
                  900

              	
                “Supplied
                  as "Fly-away" with each Aircraft

              	
                CSP
                  No.

              	
                Total
                  Quantity

              	
                Qty

                Paper

              	
                Qty

                 CD

              	
                SGML

              
	
                PUBLICATION
                  TITLE

                
                

                PUBLICATION
                  TITLE

              	
              	
              	 	
              	
              	 
	
                Airplane
                  Flight Manual (AFM)

              	
                1

              	
                B-012

              	
                *

              	
              	
                X

              	
                X

              
	
                Flight
                  Crew Operating Manual (FCOM)

              	
                1

              	
                B-013

              	
                *

              	
              	
                X

              	
                X

              
	
                Quick
                  Reference Handbook (QRH)

              	
                1

              	
                B-022

              	
                *

              	
              	
                X

              	
                X

              
	
                Pilot's
                  Checklist

              	
                1

              	
                B-017

              	
                *

              	
              	
                X

              	
                X

              
	
                Weight
                  and Balance Manual

              	
                1

              	
                B-041

              	
                *

              	
              	 	
                X

              
	
                Flight
                  Planning and Cruise Control Manual – (Imperial EP Version)

              	 	
                C-118

              	
                *

              	
                Opt

              	 	
                X

              
	
                Flight
                  Planning and Cruise Control Manual – (Metric)

              	 	
                C-119

              	
                *

              	
                Opt

              	 	
                X

              
	
                Airport
                  Planning Manual (APM)

              	
              	
                C-020

              	
                *

              	
              	 	
                X

              
	
                Crash
                  Crew Chart

              	
              	
                B-072

              	
                *

              	
              	
                X

              	
                X

              
	
                Dispatch
                  Deviation Guide (DDG) (FAA)

              	
              	
                BC-109

              	
                *

              	
              	 	
                X

              
	
                Master
                  Minimum Equipment List (MMEL) (FAA)

              	
              	
                ABC-045

              	
                *

              	
              	 	
                X

              
	
                Maintenance
                  Facilities and Equipment Planning Manual (MFEPM)

              	
              	
                C-035

              	
                *

              	
              	 	
                X

              
	
                Maintenance
                  Planning Manual (MPM) (Refer to Note 1)

              	
              	
                B-054

              	
                *

              	
              	 	
                X

              
	
                Maintenance
                  Requirements Manual (MRM)

              	
              	
                B-053

              	
                *

              	
              	 	
                X

              
	
                Maintenance
                  Task Cards

              	
              	
                B-089

              	
                *

              	
              	 	
                X

              
	
                Aircraft
                  Maintenance Manual - Part 1 and 2 (AMM)

              	
              	
                B-001A/B

              	
                *

              	
              	 	 
	
                Power
                  Plant Build-up Manual (PPBM)

              	
              	
                B-002

              	
                *

              	
              	 	
                X

              
	
                Power
                  Plant Ground Run Manual

              	
              	
                B-05*

              	
                *

              	
              	 	
                X

              
	
                Wiring
                  Diagram Manual (WDM)

              	
              	
                C-003

              	
                *

              	
              	 	 
	
                Illustrated
                  Parts Catalogue (IPC)

              	
              	
                B-00*

              	
                *

              	
              	 	 
	
                Illustrated
                  Tool & Equipment Manual (ITEM)

              	
              	
                B-007

              	
                *

              	
              	 	
                X

              
	
                Structural
                  Repair Manual (SRM)

              	
              	
                B-008

              	
                *

              	
              	 	
                X

              
	
                Fault
                  Isolation Manual (FIM)

              	
              	
                B-009

              	
                *

              	
              	 	 
	
                Non-Destructive
                  Test Manual (NDT)

              	
              	
                B-010

              	
                *

              	
              	 	
                X

              
	
                ATA
                  Chapter Breakdown

              	
              	
                B-0*4

              	
                *

              	
              	
                X

              	
                X

              
	
                AMTOSS
                  & User Guide

              	 	
                B-105

              	
                *

              	 	
                X

              	
                X

              
	
                Master
                  Index of Technical Publications

              	
              	
                B-011

              	
                *

              	
                X

              	
                X

              	
                X

              
	
                Component
                  Maintenance Manual (CMM)

              	
              	
                BC-033

              	
                *

              	
              	 	
                X

              
	
                Refuel/Defuel
                  Handbook

              	
              	
                B-021

              	
                *

              	
              	 	
                X

              
	
                Service
                  Bulletins/Service Letters

              	
              	
              	
                *

              	
              	
                X

              	
                X

              
	
                 X=
                  Not
                  Available

              	
              	
              	
              	 	 	 

      

      
        	
                 

              	
                *
                  As provided in Article 4.1.1 of Annex A-1

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                 

              	
                ANNEX
                  B-1 

              

      

      

      
        	
                 

              	
                WARRANTY
                  AND SERVICE LIFE POLICY 

              

      

      

      

      
        	
                ARTICLE
                  1 - WARRANTY 

              

      

      

      The
        following warranty is that to which reference is made in Article 3 of the
        Agreement and Article 2.25 of Annex A-1 of the Agreement.

      

      
        	
                1.1

              	
                Warranty
                  

              

      

      

      
        	
                1.1.1

              	
                Subject
                  to Annex B-1 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 in accordance with reasonable
                  instructions of the vendor; 

              

      

      

      
        	
                 

              	
                c)

              	
                the
                  Bombardier Parts installed on the Aircraft at delivery shall be
                  free from
                  defects in material or workmanship;

              

      

      

      
        	
                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-1 Articles 1.2.1(c), 1.9, 1.10 and 2.0, the warranty
                  set forth
                  in Annex B-1 Article 1.1.1(c) and (d) above shall[***].

              

      

      

      
        	
                1.1.3

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

              

      

      

      
        	
                1.2

              	
                Warranty
                  Period 

              

      

      

      
        	
                1.2.1

              	
                The
                  warranty set forth in Annex B-1 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-1 Article 1.1.1(a) and 1.1.1(b), forty-eight (48)
                  months
                  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-1 Article 1.1.1(c) and 1.1.1(d), forty-eight (48)
                  months
                  from the Delivery Date; 

              

      

      

      
        	
                 

              	
                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-1 Article 1.1.2, [***]; and
                  

              

      

      

      
        	
                 

              	
                d)

              	
                for
                  errors in the Technical Data referred to in Annex B-1 Article 1.1.3,
                  twelve (12) months 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 under this warranty 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, except that Bombardier will not be obligated
                  to
                  correct any Defect which has no material adverse effect on the
                  maintenance, use or operation of the Aircraft.

              

      

      

      
        	
                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
                  but not be limited to the following information:
                  

              

      

      

      
        	
                 

              	
                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; 

              

      

      

      
        	
                 

              	
                b)

              	
                the
                  manufacturer’s serial number of the Aircraft from which the part was
                  removed; 

              

      

      

      
        	
                 

              	
                c)

              	
                the
                  date the claimed Defect became apparent to Buyer;
                  

              

      

      

      
        	
                 

              	
                d)

              	
                the
                  total flight hours (and cycles if applicable) accrued on the part
                  at the
                  time the claimed Defect became apparent to Buyer; 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.  

              	
                Buyer
                  shall [***] send a
                  written warranty claim notice (the “Warranty Notice”) by facsimile or
                  e-mail to Bombardier's warranty department within [***] days
                  following the date that any Defect giving rise to a warranty claim
                  becomes
                  apparent to Buyer;

              

      

       

       

      
        	
                b.  

              	
                Buyer
                  shall consult the Supplier Information Manual available on-line
                  via RACS
                  website (www.racs.bombardier.com)
                  for the location to which the Bombardier Part shall be
                  returned;

              

      

       

       

      
        	
                c.  

              	
                If
                  requested by Bombardier, Buyer shall return the defective part,
                  as
                  directed by Bombardier, within a period of fifteen (15) Days following
                  Bombardier’s request for the return of such part;
                  and

              

      

       

      
        	
                d.  

              	
                [***].

              

      

      

      

      

      
        	
                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 Buyer, Bombardier shall reimburse Buyer for Bombardier
                  estimated hours or for Buyer’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 Buyer’s
                  direct labour rate per man-hour plus burden rate of fifty percent
                  (50%),
                  subject to annual review and adjustment of such labour rate as
                  mutually
                  agreed; provided, however, that this amount shall not exceed fifty
                  percent
                  (50%) 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 Buyer’s warranty claim within thirty (30) days following
                  the receipt of the claim and (if requested) return of the defective
                  Bombardier Part to Bombardier’s designated facility or that Buyer hold
                  such defective Bombardier Parts while Bombardier completes its
                  investigation regarding such Bombardier Part, [***]   Bombardier
                  shall notify Buyer of Bombardier’s disposition of each claim.
                  

              

      

      

      
        	
                 

              	
                Buyer
                  shall pay all costs of transportation of the defective part from
                  Buyer to
                  Bombardier, [***] 
                  all
                  costs of transportation of the repaired, corrected or replacement
                  parts
                  back to Buyer. 

              

      

      

      
        	
                1.8

              	
                Limitations;
                  Timely Filing 

              

      

      

      
        	
                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 products or parts not specifically approved
                  by
                  Bombardier, [***]

              

      

      

      
        	
                 

              	
                b)

              	
                [***] 
                  the
                  Aircraft was not operated or maintained in accordance with the
                  Technical
                  Data listed in Attachment A of Annex A-1 and the manufacturer’s
                  documentation furnished to Buyer (including Service Bulletins and
                  airworthiness directives) [***]

              

      

      

      
        	
                 

              	
                c)

              	
                [***] 
                  the
                  Aircraft was not operated under normal airline use [***]

              

      

      

      
        	
                d)  

              	
                [***]

              

      

      

      
        	
                18.2

              	
                [***]  

              

      

      
        	
                1.8.3

              	
                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
                  Buyer 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 a Bombardier Part returned under a warranty claim
                  is
                  subsequently established to be serviceable then Bombardier shall
                  be
                  entitled to charge and recover from Buyer any reasonable costs
                  incurred by
                  Bombardier in connection with such warranty claim. Providing, however,
                  in
                  the event that repetitive in-service failure occurs on the particular
                  Bombardier Part which is subsequently identified by Bombardier
                  on a
                  repeated basis to be “no fault found”, then Bombardier and Buyer shall
                  discuss and mutually agree a course of further action to help identify
                  the
                  problem.  In the event the fault is ultimately confirmed to be a
                  legitimate warranty claim then the above mentioned costs incurred
                  by
                  Bombardier and charged to Buyer shall be waived or, if already
                  paid,
                  refunded to Buyer. 

              

      

      

      
        	
                1.12

              	
                [***]

              

      

      

      
        	
                 

              	
                ARTICLE
                  2 - VENDOR WARRANTIES 

              

      

      

      
        	
                2.1

              	
                Warranties
                  from Vendors 

              

      

      

      
        	
                 

              	
                The
                  provisions of this Annex B-1 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-1 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 Buyer and vendor[***].
                  

              

      

      

      
        	
                2.2

              	
                Vendor
                  Warranty Backstop 

              

      

      

      
        	
                 

              	
                For
                  those Vendor Parts installed on the Aircraft at the Delivery Date
                  or
                  subsequently purchased through Bombardier, 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-1
                  Article 2.1 above, the warranties and all other terms and conditions
                  of
                  Annex B-1 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 Buyer. 

              

      

      

      
        	
                2.3

              	
                Bombardier’s
                  Interface Commitment 

              

      

      

      
        	
                 

              	
                In
                  the event of a dispute in the application of a Vendor Part warranty,
                  at
                  Buyer’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.  Buyer shall furnish to
                  Bombardier all data and information in Buyer’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 Buyer in writing of Bombardier’s opinion as to the cause of
                  the problem and Bombardier’s recommended corrective action.
                  

              

      

      

      
        	
                 

              	
                ARTICLE
                  3 - SERVICE LIFE POLICY 

              

      

      

      
        	
                3.1

              	
                Applicability
                  

              

      

      

      
        	
                 

              	
                The
                  Service Life Policy (“SLP”) described in this Annex B-1 Article 3 shall
                  apply if fleet wide and repetitive failures occur in any Covered
                  Component, which is defined in Annex B-1 Article 3.7.
                  

              

      

      

      
        	
                3.2

              	
                Term
                  

              

      

      

      
        	
                 

              	
                Covered
                  Component 

              

      

      

      Should
        such failures occur in any Covered Component within one hundred and forty-four
        (144) months 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
                  

              

      

      

      
        	
                 

              	
              	
                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: 

              

      

      

      

      
        	
                 

              	
                [***]
                  

              

      

      

      

      
        	
                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 Buyer;
                  

              

      

      

      
        	
                 

              	
                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)

              	
                Buyer
                  shall [***] 
                  report
                  any failure of a Covered Component in writing to Bombardier’s Warranty
                  administrator within [***] 
                  days
                  after such failure becomes evident;

              

      

      

      
        	
                 

              	
                d)

              	
                the
                  provisions of Annex B-1 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 Buyer prior to receipt by Bombardier from Buyer of
                  any notice
                  of an occurrence which constitutes a failure in a Covered Component,
[***], however,
                  the
                  provisions of this subparagraph shall only apply in the event that
[***];
                  

              

      

      

      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; and

      

      
        	
                 

              	
                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. 

              

      

      

      
        	
                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
                  

              

      

      

      
        	
                 

              	
                Except
                  as permitted by the terms of the Agreement, Buyer’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 Buyer’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-1 shall
                  be deemed to be a Covered Component, and subject to the provisions
                  of this
                  SLP. 

              

      

      

      
        	
                ARTICLE
                  4 - GENERAL 

              

      

      

      
        	
                4.1

              	
                It
                  is agreed that Bombardier shall not be obligated to provide to
                  Buyer any
                  remedy which is a duplicate of any other remedy which has been
                  provided to
                  Buyer under any other part of this Annex B-1.

              

      

      

      
        	
                ARTICLE
                  5 - DISCLAIMER 

              

      

      

      
        	
                5.1

              	
                THIS
                  ANNEX B-1 AND THE RIGHTS
                  AND REMEDIES OF BUYER AND THE OBLIGATIONS OF BOMBARDIER HEREUNDER
                  ARE
                  SUBJECT TO [***].

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Annex
                  B-1 - Attachment A 

              

      

      COVERED
        COMPONENTS

      

      
        	
                 

              	
                1.

              	
                WING
                  

              

      

      

      
        	
                 

              	
                a.

              	
                Upper
                  and lower integral stringer machined wing planks.
                  

              

      

      

      
        	
                 

              	
                b.

              	
                Machined
                  spar, including auxiliary spars. 

              

      

      

      
        	
                 

              	
                c.

              	
                Caps,
                  webs and stiffeners on fabricated spars.

              

      

      

      
        	
                 

              	
                d.

              	
                Front
                  spar to rear spar wing box ribs. 

              

      

      

      
        	
                 

              	
                e.

              	
                Main
                  landing gear (MLG) machined trunnion rib.

              

      

      

      
        	
                 

              	
                f.

              	
                MLG
                  side stay machined attachment fittings.

              

      

      

      
        	
                 

              	
                g.

              	
                Wing/fuselage
                  machined attachment fittings. 

              

      

      

      
        	
                 

              	
                2.

              	
                FUSELAGE
                  

              

      

      

      
        	
                 

              	
                a.

              	
                Window
                  and windshield frame structure, but excluding the windows and windshield.
                  Exterior skins, doublers, circumferential frames but excluding
                  all
                  systems, fairings, insulation, lining and decorative clips and
                  brackets.
                  

              

      

      

      
        	
                 

              	
                b.

              	
                Engine
                  mount support box structure and machined pylon attachment fittings.
                  Primary structure frames around body openings for passenger door,
                  baggage
                  door, avionics door, flying control access door, APU access door
                  and
                  emergency exits. 

              

      

      

      
        	
                 

              	
                c.

              	
                Nose
                  landing gear well structure, including wheel well walls, ceiling,
                  pressure
                  bulkheads and pressure floor structural components at fuselage
                  wing
                  cutout. 

              

      

      

      
        	
                 

              	
                3.

              	
                VERTICAL
                  STABILIZER 

              

      

      

      
        	
                 

              	
                a.

              	
                All
                  spars. 

              

      

      

      
        	
                 

              	
                b.

              	
                Horizontal
                  to vertical stabilizer machined attachment fittings.
                  

              

      

      

      
        	
                 

              	
                c.

              	
                Front
                  spar to fuselage frame machined attachment fittings.
                  

              

      

      

      
        	
                 

              	
                d.

              	
                Exterior
                  skins, ribs, stringers between front and rear spars and machined
                  closing
                  rib. 

              

      

      

      
        	
                 

              	
                4.

              	
                HORIZONTAL
                  STABILIZER 

              

      

      

      
        	
                 

              	
                Front
                  and rear spars and exterior skins, rib and stringers between front
                  and
                  rear spars. 

              

      

      

      
        	
                 

              	
                [***]

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      April
        26,
        2007

      

      

      

      Pinnacle
        Airlines, Inc.

      1689
        Nonconnah Boulevard

      Memphis,
        TN

      USA,
        38132

      

      Subject:  [***]

      Gentlemen,

      

      This
        shall constitute the [***] 
        Letter Agreement” to Purchase Agreement No. PA-0597-B dated April 26, 2007 (the
“Agreement”), between Bombardier Inc. represented by Bombardier Aerospace,
        Regional Aircraft (“Bombardier”) and Pinnacle Airlines, Inc. (“Buyer”) relating
        to the purchase of certain Bombardier Regional Jet Series 900 Aircraft as
        more
        particularly defined therein.

      

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

      

      All
        terms
        used herein and in the Agreement and not defined herein, shall have the same
        meaning as in the Agreement.

      

      

      
        	
                [***]
                  8.0

              	
                Limitation
                  of
                  Liability

              

      

      

      
        	
                 

              	
                THIS
                  LETTER AGREEMENT AND THE RIGHTS AND REMEDIES OF BUYER AND THE OBLIGATIONS
                  OF BOMBARDIER HEREUNDER ARE SUBJECT TO THE PROVISIONS OF ARTICLE
                  18.1 AND
                  18.2 OF THE AGREEMENT. 

              

      

      

      

      
        	
                11.0

              	
                [***],
                  the
                  provisions of this Letter Agreement are personal to Buyer and shall
                  not be
                  assigned or otherwise disposed of by Buyer[***]

              

      

       

      
        	
                12.0

              	
                This
                  Letter Agreement constitutes an integral part of the Agreement
                  and subject
                  to the terms and conditions contained therein. Should there be
                  any
                  inconsistency between this Letter Agreement and the Agreement with
                  respect
                  to the subject matter covered by the terms hereof, this Letter
                  Agreement
                  shall prevail. 

              

      

       

      
        	
                13.0

              	
                In
                  the event of the termination of
                  the Agreement, this Letter Agreement shall survive as to any Aircraft
                  delivered under the
                  Agreement.

              

      

      

      

       

      

      REMAINING
        PORTION OF THE PAGE INTENTIONALLY LEFT BLANK

      

      

      

      Yours
        very
        truly                                                                           
Acknowledged and Accepted

      

      

      BOMBARDIER
        INC                                                                           
For and on behalf of

      Bombardier
        Aerospace                                                                           
Pinnacle Airlines, Inc.

      Regional
        Aircraft

      

      /s/[***]                                                                                  
        /s/ Philip H.
        Trenary

      Name:
        [***]                                                                                Name:
        Philip
        H. Trenary

      Title:
        Contracts Account
        Executive                                                                           
Title: President & CEO

      

      /s/
        [***]

      Name:
        [***]

      Title:    Director,
        Contacts

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                APPENDIX
                  A

              

      

      

      [***]

      Appendix
        B

      

      [***]

      

      April
        26,
        2007

      

      

      

      Pinnacle
        Airlines, Inc.

      1689
        Nonconnah Boulevard

      Memphis,TN

      USA,
        38132

      

      Subject:  [***]

      

      Gentlemen,

      

      This
        shall constitute the “[***] 
        Letter Agreement” to Purchase Agreement No. PA-0597B dated April 26, 2007 (the
“Agreement”), between Bombardier Inc. represented by Bombardier Aerospace,
        Regional Aircraft (“Bombardier”) and Pinnacle Airlines, Inc. (“Buyer”) relating
        to the purchase of certain Bombardier Regional Jet Series 900 Aircraft as
        more
        particularly defined therein.

      

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

      

      All
        terms
        used herein and in the Agreement and not defined herein, shall have the same
        meaning as in the Agreement.

      

      [***] [***]

      

      [***] [***]

      

      6.0           
        Limitation

      

      THIS
        LETTER AGREEMENT AND THE RIGHTS AND REMEDIES OF BUYER AND THE OBLIGATIONS
        OF
        BOMBARDIER HEREUNDER ARE SUBJECT TO THE PROVISIONS OF ARTICLES 18.1 AND 18.2
        OF
        THE AGREEMENT.

      

      
        	
                7.0

              	
                In
                  the event of the termination of the Agreement, this Letter Agreement
                  shall
                  survive such termination with respect to all Aircraft delivered
                  under the
                  Agreement. 

              

      

      

      
        	
                8.0

              	
                [***],
                  the
                  provisions of this Letter Agreement are personal to Buyer and shall
                  not be
                  assigned or otherwise disposed of by Buyer [***]  Any
                  unauthorized assignment, sale, lease, transfer, or other alienation
                  of
                  Buyer's rights under the [***] 
                  as to any Aircraft  [***]
                  shall immediately void all of Bombardier's obligations under the
[***] as
                  to such Aircraft. 

              

      

      

      

      
        	
                9.0

              	
                This
                  Letter Agreement constitutes an integral part of the Agreement
                  and is
                  subject to the terms and conditions contained therein. Should there
                  be any
                  inconsistency between this Letter Agreement and the Agreement with
                  respect
                  to the subject matter covered by the terms hereof, this Letter
                  Agreement
                  shall prevail. 

              

      

      

      

      

      REMAINING
        PORTION OF THE PAGE INTENTIONALLY LEFT BLANK

      

      

      

      

      Yours
        very
        truly                                                                           
Acknowledged and Accepted

      

      

      BOMBARDIER
        INC                                                                           
For and on behalf of

      Bombardier
        Aerospace                                                                           
Pinnacle Airlines, Inc.

      Regional
        Aircraft

      

      /s/
[***]                                                                                     /s/
        Philip
        Trenary

      Name:
        [***]                                                                                    Name:
        Philip
        Trenary

      Title:
        Manager,
        Contracts                                                                           
Title: President & CEO

      

      

      /s/
        [***]

      Name:
        [***]

      Title:    Director,
        Contacts

      

      .

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      April
        26,
        2007

      

      

      

      Pinnacle
        Airlines, Inc.

      1689
        Nonconnah Boulevard

      Memphis,
        TN 38132

      

      Subject:  [***]

      

      Gentlemen,

      

      This
        shall constitute the “[***] 
        Letter Agreement” to Purchase Agreement No. PA-0597-B dated April 26, 2007 (the
“Agreement”), between Bombardier Inc. represented by Bombardier Aerospace,
        Regional Aircraft (“Bombardier”) and Pinnacle Airlines, Inc. (“Buyer”) relating
        to the purchase of certain Bombardier Regional Jet Series 900 Aircraft as
        more
        particularly defined therein.

      

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

      

      All
        terms
        used herein and in the Agreement and not defined herein, shall have the same
        meaning as in the Agreement.

      

      

      
        	
                1.0

              	
                [***]

              

      

      
        	
                2.0

              	
                [***]

              

      

      

      
        	
                3.0

              	
                [***]

              

      

      4.0           
        In the event of the termination of the Agreement, this Letter Agreement shall
        survive such termination with respect to all Aircraft delivered under the
        Agreement.

       

      
        	
                5.0

              	
                [***],
                  the
                  provisions of this Letter Agreement are personal to Buyer and,
                  shall not
                  be assigned or otherwise disposed of by Buyer [***]

              

      

      

      
        	
                6.0

              	
                This
                  Letter Agreement constitutes an integral part of the Agreement
                  and is
                  subject to the terms and conditions contained therein. Should there
                  be any
                  inconsistency between this Letter Agreement and the Agreement with
                  respect
                  to the subject matter covered by the terms hereof, this Letter
                  Agreement
                  shall prevail. 

              

      

      

      

      

      

      REMAINING
        PORTION OF THE PAGE INTENTIONALLY LEFT BLANK

      

      

      

      

      

      Yours
        very
        truly                                                                           
Acknowledged and Accepted

      

      

      BOMBARDIER
        INC                                                                           
For and on behalf of

      Bombardier
        Aerospace                                                                           
Pinnacle Airlines, Inc.

      Regional
        Aircraft

      

      /s/
[***]                                                                                     /s/
        Philip
        Trenary

      Name:
        [***]                                                                                    Name:
        Philip
        Trenary

      Title:
        Manager,
        Contracts                                                                           
Title: President & CEO

      

      /s/
        [***]

      Name:  [***]

      Title:    Director,
        Contacts

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      April
        26,
        2007

      

       

      Pinnacle
        Airlines, Inc.

      1689
        Nonconnah Boulevard

      Memphis,
        TN

      USA,
        38132

      

      Subject:  [***]

      

      Gentlemen,

      

      This
        shall constitute the “[***] Letter
        Agreement” to Purchase Agreement No. PA-0597-B dated April 26, 2007 (the
“Agreement”), between Bombardier Inc. represented by Bombardier Aerospace,
        Regional Aircraft (“Bombardier”) and Pinnacle Airlines, Inc. (“Buyer”) relating
        to the purchase of certain Bombardier Regional Jet Series 900 Aircraft as
        more
        particularly defined therein.

      

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

      

      All
        terms
        used herein and in the Agreement and not defined herein, shall have the same
        meaning as in the Agreement.

       

      

      [***]

      

      
        	
                2.0

              	
                [***]
                  ,
                  the provisions of this Letter Agreement are personal to Buyer and
                  shall
                  not be assigned or otherwise disposed of by Buyer [***]

              

      

      

      
        	
                3.0

              	
                This
                  Letter Agreement constitutes an integral part of the Agreement
                  and is
                  subject to the terms and conditions contained therein. Should there
                  be any
                  inconsistency between this Letter Agreement and the Agreement with
                  respect
                  to the subject matter covered by the terms hereof, this Letter
                  Agreement
                  shall prevail. 

              

      

      

      

      

      

      REMAINING
        PORTION OF THE PAGE INTENTIONALLY LEFT BLANK

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      

      Yours
        very
        truly                                                                           
Acknowledged and Accepted

      

      

      BOMBARDIER
        INC                                                                           
For and on behalf of

      Bombardier
        Aerospace                                                                           
Pinnacle Airlines, Inc.

      Regional
        Aircraft

      

      /s/
[***]                                                                                
/s/
        Philip
        Trenary

      Name:
        [***]                                                                                Name:
        Philip
        Trenary

      Title:
        Manager,
        Contracts                                                                           
Title: President & CEO

      

      /s/
        [***]

      Name:  [***]

      Title:    Director,
        Contacts

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      April
        26,
        2007

      

      

      

      Pinnacle
        Airlines, Inc.

      1689
        Nonconnah Boulevard

      Memphis,
        TN

      USA,
        38132

      

      Subject:  Tax
        Issue

      

      Gentlemen,

      

      This
        shall constitute the “Tax Issues Letter Agreement” to Purchase Agreement No.
        PA-0597-B dated April 26, 2007 (the “Agreement”), between Bombardier Inc.
        represented by Bombardier Aerospace, Regional Aircraft (“Bombardier”) and
        Pinnacle Airlines, Inc. (“Buyer”) relating to the purchase of certain Bombardier
        Regional Jet Series 900 Aircraft as more particularly defined
        therein.

      

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

      

      All
        terms
        used herein and in the Agreement and not defined herein, shall have the same
        meaning as in the Agreement.

      

      1.0           
        [***] 

      
        	
                2.0

              	
                [***] 

              

      

      
        	
                3.0

              	
                [***]

              

      

      
        	
                4.0

              	
                In
                  the event of the termination of the Agreement, this Letter Agreement
                  shall
                  survive such termination with respect to all Aircraft delivered
                  under the
                  Agreement. 

              

      

      
        	
                5.0

              	
                [***],
                  the
                  provisions of this Letter Agreement are personal to Buyer and shall
                  not be
                  assigned or otherwise disposed of by Buyer with[***]

              

      

      
        	
                6.0

              	
                This
                  Letter Agreement constitutes an integral part of the Agreement
                  and is
                  subject to the terms and conditions contained therein. Should there
                  be any
                  inconsistency between this Letter Agreement and the Agreement with
                  respect
                  to the subject matter covered by the terms hereof, this Letter
                  Agreement
                  shall prevail. 

              

      

      

      

      

      

      REMAINING
        PORTION OF THE PAGE INTENTIONALLY LEFT BLANK

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      Yours
        very
        truly                                                                           
Acknowledged and Accepted

      

      

      BOMBARDIER
        INC                                                                           
For and on behalf of

      Bombardier
        Aerospace                                                                           
Pinnacle Airlines, Inc.

      Regional
        Aircraft

      

      /s/
[***]                                                                                    
        /s/ Philip
        Trenary

      Name:
        [***]                                                                                    Name:
        Philip
        Trenary

      Title:
        Manager,
        Contracts                                                                           
Title: President & CEO

      

      /s/
        [***]

      Name:  [***]

      Title:    Director,
        Contacts

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      April
        26,
        2007

      

      

      

      Pinnacle
        Airlines, Inc.

      1689
        Nonconnah Boulevard

      Memphis,
        TN 38132

      

      

      Subject:  Credit
        Memorandum

      

      Gentlemen,

      

      This
        shall constitute the “Credit Memorandum Letter Agreement” to Purchase Agreement
        No. PA-0597-B dated April 26, 2007 (the “Agreement”), between Bombardier Inc.
        represented by Bombardier Aerospace, Regional Aircraft (“Bombardier”) and
        Pinnacle Airlines, Inc. (“Buyer”) relating to the purchase of certain Bombardier
        Regional Jet Series 900 Aircraft as more particularly defined
        therein.

      

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

      

      All
        terms
        used herein and in the Agreement and not defined herein, shall have the same
        meaning as in the Agreement.

       

      
        	
                1.0  

              	
                In
                  consideration of Buyer having entered into the Agreement, upon
                  delivery
                  and payment in full for each of the Aircraft, Bombardier shall
                  issue to
                  Buyer a credit memorandum in the amount of [***] United States
                  Dollars,
                  expressed in July 1, 2006 United States Dollars for each
                  Aircraft.  Such credit memoranda shall be used by Buyer to
                  reduce the amount payable on delivery of each of the
                  Aircraft.  [***]

              

      

      

      
        	
                2.0

              	
                [***],
                  the
                  provisions of this Letter Agreement are personal to Buyer and shall
                  not be
                  assigned or otherwise disposed of by Buyer [***]

              

      

      

      
        	
                3.0

              	
                This
                  Letter Agreement constitutes an integral part of the Agreement
                  and is
                  subject to the terms and conditions contained therein. Should there
                  be any
                  inconsistency between this Letter Agreement and the Agreement with respect
                  to the subject matter covered by the terms hereof, this Letter
                  Agreement
                  shall prevail. 

              

      

      

      

      

      

      REMAINING
        PORTION OF THE PAGE INTENTIONALLY LEFT BLANK

      

      

      

      

      

      Yours
        very
        truly                                                                           
Acknowledged and Accepted

      

      

      BOMBARDIER
        INC                                                                           
For and on behalf of

      Bombardier
        Aerospace                                                                           
Pinnacle Airlines, Inc.

      Regional
        Aircraft

      

      /s/
[***]                                                                                     /s/
        Philip H.
        Trenary

      Name:
        [***]                                                                                    Name:
        Philip H.
        Trenary

      Title:
        Manager,
        Contracts                                                                           
Title: President & CEO

      

      /s/
[***]

      Name:  [***]

      Title:    Director,
        Contacts

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      April
        26,
        2007

      

      

      

      Pinnacle
        Airlines, Inc.

      1689
        Nonconnah Boulevard

      Atlanta,
        Georgia

      USA,
        30354

      

      Subject:  [***]

      

      Gentlemen,

      

      This
        shall constitute the “[***] 
        Letter Agreement” to Purchase Agreement No. PA-0597-B dated April 26, 2007 (the
“Agreement”), between Bombardier Inc. represented by Bombardier Aerospace,
        Regional Aircraft (“Bombardier”) and Pinnacle Airlines, Inc. (“Buyer”) relating
        to the purchase of certain Bombardier Regional Jet Series 900 Aircraft as
        more
        particularly defined therein.

      

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

      

      All
        terms
        used herein and in the Agreement and not defined herein, shall have the same
        meaning as in the Agreement.

       

      
        	
                1.0

              	
                [***]

              

      

      2.0           [***]

      
        	
                3.0

              	
                [***]

              

      

      
        	
                4.0

              	
                [***]

              

      

      
        	
                5.0

              	
                [***]

              

      

      
        	
                 

              	
                [***]
                  

              

      

      
        	
                6.0

              	
                [***]

              

      

      
        	
                7.0

              	
                Conditions
                  and
                  Limitations

              

      

      
        	
                7.1

              	
                [***]

              

      

      
        	
                7.2           [***]

              

      

      
        	
                7.3

              	
                [***]

              

      

      
        	
                7.4

              	
                [***]

              

      

      
        	
                8.0           [***]

              

      

      
        	
                8.2

              	
                [***]

              

      

      
        	
                9.0

              	
                [***]

              

      

      
        	
                10.0

              	
                [***] 

              

      

      
        	
                10.2

              	
                [***]

              

      

      
        	
                11.0  

              	
                Duplicate
                  Remedies

              

      

      
        	
                 

              	
                It
                  is agreed that Bombardier will not be obligated to provide to Buyer
                  any
                  remedy, which is a duplicate of any other remedy, which has been
                  provided
                  to Buyer elsewhere under the Agreement, by the Power Plant manufacturer
                  or
                  by any Supplier. 

              

      

      

      
        	
                12.0

              	
                Limitation
                  of
                  Liability

              

      

      
        	
                 

              	
                THIS
                  LETTER AGREEMENT AND THE RIGHTS AND REMEDIES OF BUYER AND THE OBLIGATIONS
                  OF BOMBARDIER HEREUNDER ARE SUBJECT TO THE PROVISIONS OF ARTICLE
                  18.1 AND
                  18.2 OF THE AGREEMENT. 

              

      

      

      
        	
                13.0

              	
                [***],
                  the provisions of this Letter Agreement are personal to Buyer and
                  shall
                  not be assigned or otherwise disposed of by Buyer [***]
                  

              

      

      

      
        	
                14.0

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

              

      

      

      
        	
                15.0

              	
                In
                  the event of the Termination of
                  the Agreement, this Letter Agreement shall survive as to any Aircraft
                  delivered under the
                  Agreement.

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      

      

      Yours
        very
        truly                                                                           
Acknowledged and Accepted

      

      

      BOMBARDIER
        INC                                                                           
For and on behalf of

      Bombardier
        Aerospace                                                                           
Pinnacle Airlines, Inc.

      Regional
        Aircraft

      

      /s/
[***]                                                                                    
        /s/ Philip
        Trenary

      Name:
        [***]                                                                                    Name:
        Philip
        Trenary

      Title:
        Manager,
        Contracts                                                                           
Title: President & CEO

      

      /s/
[***]

      Name:
        [***]

      Title:    Director,
        Contacts

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      Pinnacle
        Airlines, Inc.

      1689
        Nonconnah Boulevard

      Memphis,
        TN

      USA,
        38132

      

      Subject:  [***]

      

      Gentlemen,

      

      This
        shall constitute the “[***]Letter
        Agreement” to Purchase Agreement No. PA-0597B dated April 26, 2007 (the
“Agreement”), between Bombardier Inc. represented by Bombardier Aerospace,
        Regional Aircraft (“Bombardier”) and Pinnacle Airlines, Inc. (“Buyer”) relating
        to the purchase of certain Bombardier Regional Jet Series 900 Aircraft as
        more
        particularly defined therein.

      

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

      

      All
        terms
        used herein and in the Agreement and not defined herein, shall have the same
        meaning as in the Agreement.

      

       

      1.0           
        [***]

      2.0           [***]

      3.0           
        [***]

      3.5.1        [***]

      4.0           
        [***]kg).

      5.0           [***]

      6.0           
        [***]

      7.0           [***]

      

      8.0           
        Limitation of Liability

      

      
        	
                 

              	
                THIS
                  LETTER AGREEMENT AND THE RIGHTS AND REMEDIES OF BUYER AND THE OBLIGATIONS
                  OF BOMBARDIER HEREUNDER ARE SUBJECT TO THE PROVISIONS OF ARTICLE
                  18.1 AND
                  18.2 OF THE AGREEMENT. 

              

      

      

      
        	
                9.0

              	
                [***],
                  the provisions of this Letter Agreement are personal to Buyer and
                  shall
                  not be assigned or otherwise disposed of by Buyer [***]
                  

              

      

      

      
        	
                10.0

              	
                This
                  Letter Agreement constitutes an integral part of the Agreement
                  and subject
                  to the terms and conditions contained therein. Should there be
                  any
                  inconsistency between this Letter Agreement and the Agreement with
                  respect
                  to the subject matter covered by the terms hereof, this Letter
                  Agreement
                  shall prevail. 

              

      

      

      
        	
                11.0

              	
                In
                  the event of the Termination of
                  the Agreement, this Letter Agreement shall survive as to any Aircraft
                  delivered under the
                  Agreement.

              

      

      

      REMAINING
        PORTION OF THE PAGE INTENTIONALLY LEFT BLANK

      

      

      Yours
        very
        truly                                                                           
Acknowledged and Accepted

      

      

      BOMBARDIER
        INC                                                                           
For and on behalf of

      Bombardier
        Aerospace                                                                           
Pinnacle Airlines, Inc.

      Regional
        Aircraft

      

      

      Name:
        [***]                                                                                    Name:
        ________________

      Title:
        Manager,
        Contracts                                                                           
Title: ________________

      

      

      Name:  [***]

      Title:    Director,
        Contacts

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      [Missing
        Graphic Reference] 

      

      

      April
        27,
        2007

      

      

      Pinnacle
        Airlines, Inc.

      1689
        Nonconnah Boulevard

      Memphis,
        TN

      USA,
        38132

       

      

       

      [***]Letter
        Agreement to Purchase
        Agreement No. PA-0597B (the “Agreement”) between Bombardier Inc. represented by
        Bombardier Aerospace, Regional Aircraft (“Bombardier”) and Pinnacle Airlines,
        Inc. (for purposes of this Letter Agreement “Buyer”) relating to the purchase of
        sixteen (16) Bombardier Regional Jet Series 900 firm Aircraft (the
“Aircraft”)

      

      Gentlemen:

      

      Bombardier
        hereby commits [***],
        subject to the terms and conditions defined herein and in Attachment 1 hereto,
        for the above referenced Aircraft that will be acquired by Buyer pursuant
        to the
        Agreement.  This Letter Agreement, when accepted by and agreed to by
        Buyer contemporaneously with the execution of the Agreement, will evidence
        the
        parties’ agreement with respect to the matters set forth below.

      

      All
        terms
        used herein and in the Agreement and not defined herein, shall have the same
        meaning as in the Agreement.

      
        	
                1.0  

              	
                [***]

              

      

      

      

      
        	
                2.0

              	
                [***]

              

      

      

      [***]

      

      3.0           
        [***]

      

      
        	
                [***]5.0

              	
                [***]

              

      

      
        	
                6.0

              	
                [***]

              

7.0           
        [***]

      

      
        	
                8.0

              	
                [***]

              

      

      

      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.

                Bombardier
                  Aerospace

                Regional
                  Aircraft

              	
                For
                  and on behalf of

                Pinnacle
                  Airlines, Inc.

              
	 	 
	 	 
	
                Name:  ___________________

              	
                Name:  ___________________

              
	
                Title:    ___________________

              	
                Title:    ___________________

              
	 	 
	 	 
	
                Name:  ___________________

              	 
	
                Title:    ___________________

              	 

      

      

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      ATTACHMENT
        1 TO [***]LETTER
        AGREEMENT

      

       

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

              

      

       

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

       

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

              

      

       

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

              

      

      
        	
                [***]

              

      

       

      [***][***]

      [***]

      
        	
                DEFINITIONS:

              	
                Any
                  capitalized terms used and not defined herein shall have the meanings
                  ascribed to them in that certain Purchase Agreement No. PA-0597B
                  dated
                  March ___, 2007, by and between Pinnacle Airlines, Inc. and Bombardier
                  Inc.EXHIBIT 10.23

DESCRIPTION OF OUTSIDE DIRECTOR FEE
ARRANGEMENTS

          Directors
who are not executive officers of the Company or the Bank (“Outside Directors”)
receive an annual retainer of $30,000 from the Bank, with no additional
retainer from the Company. The Chair of the Audit Committee receives an
additional annual retainer of $10,000 and the Chair of the Compensation
Committee receives an additional annual retainer of $5,000. Outside Directors
also receive meeting fees of $1,500 for each Board or Bank Board meeting
attended, $1,000 for each Audit Committee or Compensation Committee attended,
and $750 for each other committee meeting attended, whether or not they are
members of such committee. However, where the Board of Directors and the Bank
Board meet on the same day, directors receive only a single board meeting fee
for such meetings. Similarly, directors receive only a single committee meeting
fee where identically constituted committees of the Board of Directors and Bank
Board meet on the same day. 

          Outside
Directors who are members of the Loan Committee also receive a fee from the
Bank for conducting on-site inspections of proposed real estate collateral for
certain loans in excess of $1,500,000. For each day that a director conducts such
inspections, the director receives a fee of $400 for the first property
inspected and $200 for each additional property inspected on that day.

116

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]