Document:

Term Cost Plan Agreement dated April 1, 2004

 EXHIBIT 10.26 
  
 TERM COST PLANTM TCP® Agreement # 03-1907 

  

			
	BETWEEN	 	-AND-
		
	PRATT & WHITNEY CANADA CORP.	 	GREAT LAKES AVIATION, LTD.
	 1000 Marie Victorin,
	 	 1022 Airport Parkway

	 Longueuil, Quebec
	 	 Cheyenne, Wyoming 82001

	 Canada
	 	 
		
	 (hereinafter called “P&WC”)
	 	 (hereinafter called “Customer”)

  
 WHEREAS 
  

	A.	 	Customer currently operates a fleet of 30 Beechcraft 1900D Airliner aircraft (“Aircraft”), which Aircraft utilize Pratt & Whitney Canada Corp. PT6A-67D engines.

  

	B.	 	P&WC has agreed to supply Customer with certain engine maintenance services under a Fleet Management ProgramTM called a Term Cost PlanTM (TCP®), subject to the terms and conditions attached hereto; 

  

	C.	 	Unless otherwise defined, all capitalized terms hereunder shall have the meaning ascribed to such terms at Article 1.0 hereof. 

  
 THE PARTIES HEREBY AGREE as follows: 
  

	1.	 	For the duration of this Agreement, P&WC shall supply to Customer the Engine Maintenance Services listed below at the TCP® Hourly Rate indicated below. 

  

							
	ENGINE MAINTENANCE SERVICES COVERED UNDER THIS AGREEMENT
				
	 •      Engine Overhauls
	  	Yes	  	 •      HSI Component Refurbishment
	  	Yes
				
	 •      Basic Unplanned Engine Removals (BUER)
	  	Yes	  	 •      LCF Component Replacement
	  	Yes
				
	 •      ADAS+ Maintenance
	  	No	  	 •      Spare Engine Support
	  	Yes
				
	 •      ECTM® Analysis
	  	Yes	  	 	  	 

  

	2.	 	Customer agrees to comply with all of the terms and conditions attached hereto, which form an integral part of this TCP®. 

  

	3.	 	Customer agrees to pay the TCP® Hourly Rate indicated below and to comply with all of the terms and conditions attached hereto, which form an integral part hereof. 

  

	4.	 	Agreement start date: April 1st 2004 

 Agreement end date: March 31st 2009 
  

	5.	 	Customer’s Hourly Rate shall be XXXXX1 per Engine Operating Hour. 

  

	6.	 	Customer acknowledges having read and understood the scope and all of the terms and conditions of this Agreement, including but not limited to Annexes A through J.

  

	7.	 	Each of P&WC, Customer and RACC acknowledge and agree that this Agreement shall only become effective upon the execution of an agreement between P&WC and RACC whereby RACC
shall guarantee the performance of all of the Customer’s financial obligations under this Agreement for an amount and upon terms to be agreed upon between P&WC and RACC (the “RACC Backstop Agreement”). The RACC Backstop Agreement
shall be executed between P&WC and RACC within twenty (20) days from the date of execution of this Agreement, in default of which this Agreement shall be considered null. Each of Customer and RACC acknowledge that the execution of the RACC
Backstop Agreement is a fundamental consideration of this Agreement. 

  

	1	 	Material omitted pursuant to a request for confidential treatment. Omitted material has been filed separately. 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	i

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® Agreement 

  

 SIGNED in duplicate by the duly authorized representative of each party. 
  

							
	PRATT & WHITNEY CANADA CORP.	 	 	 	 	 	GREAT LAKES AVIATION, LTD.
				
	 /s/ Gilbert Gaudette

	 	 	 	 	 	 /s/ Charles R. Howell IV

	 Name: Gilbert Gaudette
	 	 	 	 	 	 Name: Charles R. Howell

	 Title: V.P. Service Centres
	 	 	 	 	 	 Title: Chief Executive Officer

	 Date: April 16, 2004
	 	 	 	 	 	 Date: April 16, 2004

  
 INTERVENTION

  
 The undersigned, Raytheon Aircraft Credit Corporation, through its duly
authorized representative, hereby acknowledges having read the present TERM COST PLANTM TCP® Agreement # 03-1907 and agrees with the terms and conditions contained therein, insofar as they may
apply to Raytheon Aircraft Credit Corporation. 
  

	
	RAYTHEON AIRCRAFT CREDIT CORPORATION
	
	 /s/ Andrew A. Mathews

	 Name: Andrew A. Mathews

	 Title: President

	 Date: April 16, 2004

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	ii

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 TERM COST PLANTM 
 AGREEMENT 
  
 Scope, Terms, Conditions

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 TABLE OF CONTENTS 
  

					
	1.0	  	 Definition
	  	1
	2.0	  	 Scope of Services and Engine Eligibility
	  	4
	3.0	  	 Exclusions
	  	5
	4.0	  	 Conditions of Sale
	  	7
	5.0	  	 Delivery
	  	7
	6.0	  	 Component Replacement
	  	7
	7.0	  	 Payment/ TCP® Hourly Rate Adjustment
	  	7
	8.0	  	 Taxes/Duties/Other Charges
	  	8
	9.0	  	 TCP® Hourly Rate Adjustment
	  	9
	10.0	  	 Parties’ Responsibilities
	  	10
	11.0	  	 Dac Services
	  	12
	12.0	  	 Delay
	  	13
	13.0	  	 Warranty & Limitation of Liability
	  	14
	14.0	  	 Non-Disclosure
	  	14
	15.0	  	 Termination
	  	15
	16.0	  	 Export Controls
	  	17
	17.0	  	 General Terms
	  	17

  
  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	iv

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	1.0	 	DEFINITION 

  
 In this Agreement 
  

	 	1.1	 	“Accessory” means the specific LRU installed on the Engine as specified in the Engine build specification; 

  

	 	1.2	 	“AD” means airworthiness directives; 

  

	 	1.3	 	“Agreement” means this agreement, including all applicable annexes; 

  

	 	1.4	 	“BUER” means basic unplanned engine removal; the premature removal of the Engine or Engine Module or Accessory due to an Engine, Component or Accessory induced
malfunction. Removal for normal hot section deterioration, which is detectable through engine condition monitoring performed in accordance with the applicable aircraft and/or Engine maintenance manual, is not considered to be a BUER. Likewise,
removal of an Engine, Component or Accessory due to a problem which could have been rectified using troubleshooting and/or corrective line maintenance actions as specified in the applicable aircraft and/or Engine maintenance manual, is not
considered to be a BUER; 

  

	 	1.5	 	“CFR” means a P&WC Customer FMP® Representative; 

  

	 	1.6	 	“Commercial Support Program” means the commercial assistance for the substitution, modification, or replacement of Component(s) for reasons of flight safety,
critical engine performance and/or reliability, and AD’s concurred with by P&WC; 

  

	 	1.7	 	“Component” means a genuine P&WC part, necessary for the operation of the Engine, and normally supplied by P&WC as part of the Engine build specification
unless otherwise specified within this Agreement; 

  

	 	1.8	 	“Consumable” means a Component which, by design, can only be used once and is replaced irrespective of apparent condition during the course of inspection, removal,
maintenance, Repair or Overhaul; 

  

	 	1.9	 	“Customer Hold” means an Engine put on hold by Customer, irrespective of the stage of Engine Maintenance Services completed or to be completed. Reasons for Customer
Holds may include but are not limited to events in which P&WC is awaiting; i) a purchase order from Customer; ii) confirmation of workscope by Customer; iii) a cost estimate approval from Customer; iv)
information/data from Customer required to proceed with the Engine Maintenance Services; or v) the resolution of payment issues; 

  

	 	1.10	 	“Designated Facility” means the facility designated to Customer by the CFR, where Services covered by this Agreement shall be performed; 

 

	 	1.11	 	“Designated Analysis Center (DAC)” means the P&WC approved ECTM® supplier, which will be, for the purposes of this Agreement, Altair Avionics Corporation; 

  

	 	1.12	 	“ECTM®” means the P&WC engine condition trend monitoring program further described in paragraph 11.1 of this Agreement; 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	1.13	 	“Engine” means the P&WC turbine engines covered under this Agreement as specified in Annex A. The Engine is divided in 3 Modules - gas generator Module, power
section Module and the HSI Module; 

  

	 	1.14	 	“Engine Cycle” means any Engine operational sequence involving an Engine start, aircraft take-off, flight and landing, culminating in an Engine shutdown. For the
purpose of cycle calculation, refer to the definitions applicable to cycle calculation contained in the applicable service bulletin (SB14002) or in the airworthiness section of the applicable Engine maintenance manual; 

  

	 	1.15	 	“Engine Flying Hour (EFH)” means any 60-minute period of operation of an Engine on an aircraft in flight, irrespective of Engine Cycles during such period;

  

	 	1.16	 	“Engine Maintenance Interval Escalation Program” means a monitoring program undertaken by P&WC and Customer to extend the maintenance interval of an Engine,
Module or Component as specified in service bulletin SB14003, as may be amended from time to time; 

  

	 	1.17	 	“Engine Maintenance Services” means the Services that are covered on the face page of this Agreement; 

  

	 	1.18	 	“Engine Module or Module” means a power section, a gas generator section, or a HSI Module; 

  

	 	1.19	 	“Engine Operating Hours” means the number of Flight hours accumulated by an Engine as indicated in the Engine logbook in accordance with the applicable regulatory
agency requirements; 

  

	 	1.20	 	“Field Level Maintenance” means routine check inspection and malfunction rectification performed at base stations during transit, turnaround or night stop;

  

	 	1.21	 	“FAA” means the United States Federal Aviation Administration; 

  

	 	1.22	 	“Fleet” means the aircraft owned and/or lawfully leased or operated by Customer powered with Engines covered under this Agreement; 

  

	 	1.23	 	“Flight” means a completed takeoff and landing of an aircraft; 

  

	 	1.24	 	“FMP®” means Fleet Management PlanTM, the budgeted maintenance agreement between Customer and P&WC pursuant to which P&WC supplies the Engine Maintenance Services specified in this Agreement and for which Services Customer pays P&WC an amount
based on Customer’s Hourly Rate and Engine usage, as further described herein; 

  

	 	1.25	 	“FOD” means foreign object damage; damage to any portion of the aircraft Engine vcaused by impact or ingestion of birds, stones, hail or other debris that is not
part of the Engine; 

  

	 	1.26	 	“Fuel Nozzle Kit” means the Components listed in Annex B, which can be removed from the gas generator; 

  

	 	1.27	 	“GLA Spares” means spare engines provided by GLA in accordance with the requirements in Annex D hereof; 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
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 PTA-67D TCP® # 03-1907 

  

	 	1.28	 	“Goods” means a P&WC Engine or, in relation thereto, any piece part, Component, Accessory, Module, furnishing or other equipment of any kind which is installed
in or attached to it; 

  

	 	1.29	 	“Hourly Rate” means the dollar value per Engine Operating Hour (including Engine Operating Hours accumulated using Spare Engines) paid for the Engine Maintenance
Services covered under this Agreement; 

  

	 	1.30	 	“HSI” means hot section inspection, the removal and inspection of Engine combustion and turbine section Components, the repair or replacement of deteriorated
Components, in compliance with the applicable Engine maintenance manual; 

  

	 	1.31	 	“HSI Components” means the Components described in Annex B, which can be removed from the gas generator section part of the Engine and sent to a Designated Facility
for refurbishment prior to being returned for re-installment on the Engine; 

  

	 	1.32	 	“LCFComponent(s)” means low cycle fatigue Component(s), Components whose service lives are limited to a specific number of cycles, as specified in the
P&WC service bulletin SB14002; 

  

	 	1.33	 	“LRU” means line replaceable unit, a Component which may normally be removed and replaced with the Engine installed in the aircraft and as part of normal line
maintenance activities; 

  

	 	1.34	 	“NBUER” means non-basic unscheduled engine removal; an unscheduled engine removal caused by conditions or circumstances not directly related to the Engine, such as,
without limitation, FOD, lightning strike, as further defined in Annex C herein; 

  

	 	1.35	 	“OEM” means original equipment manufacturer; 

  

	 	1.36	 	“Operator Profile” means Customer’s mission profile, fleet, operating and maintenance practices set forth herein; 

  

	 	1.37	 	“Overhaul” means the Engine or Engine Module disassembly, inspection of all Components, the Repair or replacement of defective parts or LCF Component(s),
re-assembly and testing of the Engine Module, all in accordance with the applicable P&WC Overhaul manuals. Once this process is completed, the Engine or Engine Module is considered to be “zero time”; 

  

	 	1.38	 	“Parties” means P&WC and Customer; 

  

	 	1.39	 	“P&WC Spares” has the meaning provided in Annex D hereof; 

  

	 	1.40	 	“P&WCL” means Pratt & Whitney Canada Leasing, Limited Partnership; 

  

	 	1.41	 	“PMA” means Parts Manufacturing Authorization; 

  

	 	1.42	 	“Power Charges” means the total charges payable by the Customer obtained by multiplying the Hourly Rate by the aggregate number of Engine Flying Hours;

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	1.43	 	“RACC” means Raytheon Aircraft Credit Corporation; 

  

	 	1.44	 	“RACC Loaners” means a minimum of eight (8) engines owned by RACC to be made available, in accordance with the requirements of this Agreement, on a bailment basis
to the Customer by RACC to support the TCP®;

  

	 	1.45	 	“Repair” means the Services necessary to return an Engine or Component to a serviceable condition; 

  

	 	1.46	 	“Services” means work performed or authorized by P&WC (including supply and fitting of Goods), comprising, without limitation, reconditioning, Overhaul, Repair,
servicing, testing, and inspection work; 

  

	 	1.47	 	“Spare Engines” means one or more P&WC Spares, RACC Loaners and GLA Spares; 

  

	 	1.48	 	“Term Cost Plan” (TCP®) means the FMP® maintenance plan under which Customer pays, monthly for the duration of this Agreement, a predetermined Hourly Rate per Engine Operating Hour for the Services covered under this Agreement.

  

	 	1.49	 	“Transition Plan” means a scheduled Engine removal plan mutually established by the CFR, P&WC and Customer. Such Transition Plan shall provide, as a minimum,
the requirement for Customer to Overhaul at least two (2) Engines per month for the next twenty-four (24) month period. 

  

	2.0	 	SCOPE OF SERVICES AND ENGINE ELIGIBILITY 

  

	 	2.1	 	P&WC shall supply to Customer, for Engines enrolled under this Agreement, the Engine Maintenance Services indicated on the face page hereof and further described in Annex C
“Scope of Services” attached hereto. 

  

	 	2.2	 	Subject to the Transition Plan contemplated in section 10.4 hereof, Engines shall be eligible under this Agreement provided the following requirements are met:

  

	 	2.2.1	 	All prior Overhauls and Repairs shall have been performed by a facility recognized by P&WC, in accordance with the OEM’s applicable manuals, instructions and
recommendations; P&WC hereby acknowledges that Atlantic Turbines Inc.’s facilities (located in Prince Edward Island) and Standard Aero Limited’s facilities (collectively the “Former Repair Facilities”) are acceptable for the
purposes of this paragraph; 

  

	 	2.2.2	 	Verification by P&WC that the Engines comply with the requirements established by the GLA Maintenance Program, it being understood, however, that any Engines covered by such
program shall be subject to the Transition Plan; the Transition Plan will also provide that the Engines subject thereto will only be eligible under this Agreement if they are covered by a maintenance program which will incorporate, as a minimum, the
maintenance tasks and intervals stipulated in Annex E; 

  

	 	2.2.3	 	Receipt by P&WC of two (2) original TCP® agreements duly executed by Customer. 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	2.3	 	The following Engines are not eligible under this Agreement: 

  

	 	2.3.1	 	Engines operated by military, paramilitary or other government agency without the prior knowledge and written approval of P&WC; 

  

	 	2.3.2	 	Except for the pool consisting of all GLA Engines (reference Annex A), and RACC Loaners, Engines that have become part of any pool of engines, an arrangement by which a participant
is entitled to exchange, withdraw and/or use engines held by another participant; 

  

	 	2.3.3	 	Engines used in dedicated trainer aircraft. Engines installed on aircraft used in typical pilot recurrent training programs are eligible under this TCP®; 

  

	 	2.3.4	 	Agricultural engines or engines operated for agricultural purposes; and 

  

	 	2.3.5	 	Aircraft used in external load applications including, but not limited to, fire prevention, logging, construction, canyon or sea rescue, external load training and banner towing.

  

	3.0	 	EXCLUSIONS 

  

	 	3.1	 	In particular, and without limitation, all incremental costs incurred by P&WC that are directly attributable to any of the following exclusions below shall not be covered under
this Agreement: 

  

	 	3.1.1	 	Field level maintenance activities and inspections, including but not limited to consumables and labour, as specified in the Engine and/or aircraft maintenance manuals or in service
bulletins; 

  

	 	3.1.2	 	Repairs attributable to damage caused by an Engine mounted LRU or Accessory other than those supplied by P&WC as part of the Engine build specification;

  

	 	3.1.3	 	Cost of Repairs attributable to damages caused by workmanship performed by facilities other than P&WC or the Designated Facility. P&WC acknowledges that engine maintenance
services may have been performed on the Engines by the Former Repair Facilities prior to the inception of this Agreement. P&WC agrees that it will not claim from the Customer the costs of Repairs attributable to damages caused by workmanship
performed by the Former Repair Facilities. However, the Customer shall provide P&WC with all reasonable assistance required to allow P&WC to recover any such costs from the Former Repair Facilities. In addition, and for greater certainty,
the Customer acknowledges that under no circumstances shall the foregoing be interpreted or construed as an acceptance by P&WC to assume any liability, of any nature whatsoever, for damages that may be caused, directly or indirectly, to the
Customer or any third party as a result of engine maintenance services performed by the Former Repair Facilities on the Engines prior to this Agreement. 

  

	 	3.1.4	 	At Customer’s request, use of new Components when exchange Components are available or Repair of Components is feasible; 

  

	 	3.1.5	 	Costs resulting from improper storage, usage, maintenance or operation of an Engine, Engine Module or Engine Component or Accessory, including improper usage of ECTM® (Proper usage and maintenance are described in the
P&WC Engine maintenance manual, P&WC service bulletins, applicable aircraft flight manual and airworthiness regulations); 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	3.1.6	 	Repairs attributable to damage caused by non-maintained or poorly maintained runways and landing areas; 

  

	 	3.1.7	 	Repair or Component replacement attributable to damage caused by corrosion, erosion or sulphidation, if P&WC’s recommendations in relation thereto are not complied with;

  

	 	3.1.8	 	Cost of Repair or cost of Component replacement directly attributable to the use of Components not originating from P&WC or from a P&WC authorized vendor, or the use of
Repairs or repair schemes not approved by P&WC, including but not limited to the use of FAA-PMA parts; 

  

	 	3.1.9	 	Any incremental costs related to Customer’s failure to comply with P&WC’s Commercial Support Programs within the deadlines specified in the relevant P&WC service
bulletin or service information letter unless such delays are caused by part shortages; 

  

	 	3.1.10	 	Any and all costs related to or arising from Engine or Engine Module removals and installations, unless an Engine or Engine Module must be removed due to a P&WC commercially
supported campaign, directive or program (including first run warranty) that provides support for removal and installation, transportation and/or shipping; 

  

	 	3.1.11	 	Unless otherwise specified herein, freight costs for Engine or Engine Module, unless an Engine or Engine Module must be transported to a shop due to a P&WC Commercial Support
Program (including first run warranty) that provides freight support; 

  

	 	3.1.12	 	Costs of rental engine support, unless otherwise provided in this Agreement 

  

	 	3.1.13	 	Tooling fees, hangar fees or any such related airport fees, taxes or duties or any other similar fees, levies or charges; 

  

	 	3.1.14	 	FOD, external damage to the Engine, Engine Module or Engine Component, collisions or rotor strikes, immersion in water, dropped Engine, Engine Module or Engine Component, rotor
electrical leads shorting, accident, fire, flood, lightning strike, theft, explosion, riot, war, rebellion, seizure or any other belligerent acts; 

  

	 	3.1.15	 	Alteration, modification or tampering of any Engine, Engine Module or Engine Component after delivery by P&WC, which is either illegal or not specifically authorized by
P&WC; 

  

	 	3.1.16	 	Use of Engine Components, Engine Modules or Engines from which P&WC’s name, part number, identification mark or serial number has been removed or defaced;

  

	 	3.1.17	 	Use of stolen Engine Components, Engine Modules or Engines including without limitation, any Repair or Overhaul of such stolen Engine Components, Engine Modules or Engines and/or
any resultant damage caused thereby; 

  

	 	3.1.18	 	Use of Engine Components, Engine Modules or Engines which have been involved in an accident where the subject Engine Components, Engine Modules or Engines failure is attributable to
that accident; 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
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 PTA-67D TCP® # 03-1907 

  

	 	3.1.19	 	Use of military Engine Components or Engine Components used in military or para-military operations; 

  

	 	3.1.20	 	Engine or module shop visits when said engine or module is removed solely for Customer’s convenience outside of the agreed Transition Plan; 

  

	 	3.1.21	 	Any and all costs related to or arising from Customer’s failure to comply with the terms and conditions of this Agreement; and 

  

	 	3.1.22	 	Any other factor which: 

  

	 	•	is beyond P&WC’s reasonable control; 

  

	 	•	occurred without fault or negligence of P&WC; 

  

	 	•	could not have been reasonably foreseen by P&WC; and 

  

	 	•	could not have been prevented by means reasonably available to P&WC. 

  

	4.0	 	CONDITIONS OF SALE 

  

	 	4.1	 	All sales of Engine Maintenance Services by P&WC to Customer covered hereunder shall be subject to the terms and conditions of this Agreement, including all of its Annexes.
Services outside of or excluded from this Agreement shall be subject to the terms and conditions of a separate Repair and Overhaul Agreement. Purchase orders or any other document issued by Customer as part of the maintenance activity covered by
this Agreement shall be deemed to incorporate the terms and conditions of this Agreement by reference, to the exclusion of any other terms or conditions which may be contained in such purchase orders or other documents. 

  

	5.0	 	DELIVERY 

  

	 	5.1	 	Incoterms. P&WC will deliver the Goods covered under the Engine Maintenance Services to Customer’s carrier FCA (Free Carrier Aboard, Incoterms 2000) P&WC’s
Designated Facility. Title and risk of loss or damage shall pass to Customer on delivery. 

  

	 	5.2	 	Freight Costs. P&WC will assume repair and overhaul related freight charges from P&WC’s Designated Facility to Customer’s facility within the continental
United States. 

  

	6.0	 	COMPONENT REPLACEMENT 

  

	 	6.1	 	Upon embodiment of new or exchange Components covered by this Agreement into an Engine, the Parties agree that the newly embodied Component shall become the property of Customer,
and the removed Component shall become the property of P&WC. Components which are removed at Overhaul and which have value will be returned by P&WC to the Customer upon mutually agreeable delivery terms. 

  

	7.0	 	PAYMENT/ TCP® HOURLY RATE ADJUSTMENT 

  

	 	7.1	 	During the term of this Agreement, Customer shall pay monthly an amount calculated by multiplying the total Engine Operating Hours of the Fleet for the month by the

  

			
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
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 PTA-67D TCP® # 03-1907 

  

	 	 	 	Hourly Rate. These monthly payments shall be received by P&WC no later than the 15th day of the following month, in accordance with P&WC’s payment instructions listed
in Annex H. Each such payment shall be considered final. However, should P&WC discover, at any time during a period of twelve (12) months following the issuance of an invoice, the existence of a material discrepancy relative to such invoice
between the Engine Operating Hours reported by the Customer or estimated by P&WC, as the case may be, and the actual Engine Operating Hours relative to the Engines (as recorded in the flight logsheets, Engine logbooks or other recognized
registers), P&WC will provide the Customer with a written notice thereof within thirty (30) days of the discovery of such material discrepancy. The notice shall contain a reasonably detailed account of P&WC’s claim. In such event, the
amounts owed by the Customer to P&WC shall be paid by the Customer no later than thirty (30) days after the receipt by the Customer of P&WC’s notice. 

  

	 	7.2	 	Customer shall also pay, when due, all charges invoiced by P&WC for work outside of or excluded from the Engine Maintenance Services covered under this Agreement at the then
current P&WC labor and material rates. P&WC may review or revise the terms of payment and credit limit from time to time. For work invoiced for Services rendered outside or excluded from the Engine Maintenance Services, payments by Customer
shall be received by P&WC within thirty (30) days from date of receipt of invoice by Customer. Notwithstanding the foregoing, charges which are in good faith dispute in accordance with Section 7.6 hereof will only be paid upon resolution of such
dispute. 

  

	 	7.3	 	For all late payments, Customer shall be liable for interest at a rate of 8% per annum or the U.S. prime rate plus five percent (5%), whichever is greater, without exceeding the
maximum rate allowed per applicable law. In addition, Customer shall reimburse P&WC for all attorneys’ fees and other expenses incurred by P&WC in recovering any sums due from Customer. 

  

	 	7.4	 	In the event shipment of Goods is delayed due to actions or omissions of Customer, P&WC may at its discretion charge reasonable storage fees. 

  

	 	7.5	 	The Hourly Rate shall be subject to annual escalation at the following rates, to be applied on the date of anniversary of the Agreement: 

  

							
	 1st Anniversary

	  	2nd Anniversary

	 	3rd Anniversary

	 	4th Anniversary

	 XXXXX1
	  	XXXXX1	 	XXXXX1	 	XXXXX1

  

	 	7.6	 	In the event Customer disputes invoice charges, Customer shall notify P&WC in writing of the reasons for disputing the invoice within thirty (30) days of the date of receipt of
the invoice by Customer. 

  

	8.0	 	TAXES/DUTIES/OTHER CHARGES 

  

	 	8.1	 	Except as otherwise specified herein, Customer is responsible for all taxes (excluding taxes based on P&WC’s net income), duties and other charges of any nature whatsoever,
including interest and penalties thereon, arising from the sale, delivery or use of the Goods or from the provision of Services under this Agreement, and will reimburse P&WC for any such charges P&WC may be required to pay directly to a
governmental authority or to a facility designated by P&WC which performs any of the Services covered under this Agreement. 

  

			
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	9.0	 	HOURLY RATE ADJUSTMENT 

  

	 	9.1	 	The Hourly Rate is based on the Fleet described in Annex A and on the Operator’s Profile represented and warranted by the Customer as described in Annex F herein. Any material
modifications to Customer’s Profile or changes in its geographical or operating environment must be immediately reported to P&WC and may result in an Hourly Rate adjustment. Any Fleet Changes (as defined below) must also be immediately
reported to P&WC and may result in an Hourly Rate adjustment, in the manner contemplated hereinbelow. Subject to the following sentence, P&WC also reserves the right to adjust the Hourly Rate in circumstances where Customer does not adhere
to the Transition Plan, the Engine maintenance conditions set forth in Annex E or is otherwise in default under this Agreement. Any Hourly Rate adjustment proposal made by P&WC as a result of default of Customer pursuant to the terms of this
Agreement (which proposal shall include the calculations of such adjustment in sufficient details to enable Customer to make an informed decision with respect thereto) shall have to be agreed upon by Customer before it can take effect. If Customer
refuses any such proposal for an Hourly Rate adjustment or is deemed to have refused by not replying to any such proposal within 10 days of its receipt, the Parties shall diligently deploy commercially reasonable efforts to establish a mutually
agreeable alternative to the proposed Hourly Rate adjustment within 30 days of Customer’s refusal or deemed refusal thereof, failing which P&WC shall have the right to terminate this Agreement as per the provisions of Section 15.1.

  

	 	9.2	 	Fleet Changes. The Hourly Rate shall, from time to time, be adjusted in the event that Engines are added to or removed from the Fleet (“Fleet Change(s)”),
independent of any changes to the Operator’s Mission Profile as described in Annex F. 

  
 Addition of Engines. The calculation of the adjustment for adding engines shall be based on the following formula: 
  

	
	 A + B

	(C – D)+E

  
 where, 
  
 A = Forecasted increase of expenses related to Engine Maintenance
Services attributable to Fleet Changes; 
  
 B = Remaining
total Power Charges as of the date of the Fleet Change; 
  
 C = Total forecasted EFH under this Agreement; 
  
 D = Total EFH forecasted to have been flown by the Customer as of the date of the Fleet Change; and 
  
 E = Forecasted increase of EFH due to the Fleet Change. 
  

Reduction of Engines. The calculation of the adjustment for reducing engines shall be based on the following formula: 
  

	
	 B - A

	(C – D)-E

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	9

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 where, 
  
 A = Forecasted reduction of expenses related to Engine Maintenance Services attributable to Fleet Changes; 
  
 B = Remaining total Power Charges as of the date of the Fleet
Change; 
  
 C = Total forecasted EFH under this
Agreement; 
  
 D = Total EFH forecasted to have been
flown by the Customer as of the date of the Fleet Change; and 
  
 E = Forecasted reduction of EFH due to the Fleet Change. 
  

	10.0	 	PARTIES’ RESPONSIBILITIES 

  

	 	10.1	 	Designated Facility. For the performance of any Services under this Agreement, Customer shall contact its CFR to obtain confirmation of the Designated Facility. Any work
effected or completed without obtaining such confirmation from the CFR shall be at Customer’s entire expense. 

  

	 	10.2	 	CFR. The CFR shall: 

  

	 	a)	Identify the Designated Facility; and 

  

	 	b)	define the extent of work to be performed on Engine(s) or Components. 

  

	 	10.3	 	Unscheduled Repairs. When Customer believes an Engine needs unscheduled Repair and removal, Customer shall perform the standard on-wing maintenance manual level
troubleshooting. If such troubleshooting is unsuccessful in returning the Engine to serviceability, Customer shall immediately advise the CFR prior to Engine removal. 

  

	 	10.4	 	Engine Removals. Upon the execution of this Agreement or as soon as practically possible thereafter, the CFR, P&WC and Customer, as applicable, shall agree to the
Transition Plan. Customer shall inform P&WC of all Engines or Engine Modules removals and installations, at time of removal or installation, or upon P&WC’s request. Subject to paragraph 3.1.10 herein, Customer shall be responsible for
all Engine, Module and Component removals and installations, including any costs related to these activities. 

  
 In addition, Customer shall inform P&WC, within 24 hours, of all unscheduled Engine, Engine Module or Engine Component removals, and, as soon as
reasonably possible, of any known or suspected damage to an Engine, Engine Module or Engine Component. 
  

	 	10.5	 	Access for P&WC Personnel. Customer shall allow P&WC’s personnel reasonable access to the Engines and any removed Components, its quality system, as well as all
other relevant operating and maintenance records maintained by Customer, including the Engine log books. 

  

	 	10.6	 	Engine data. At the time of each shop visit, Customer shall supply P&WC with the following information (as applicable) for the Engine, the Engine Modules or Components:

  

	 	•	Time Since New (TSN) 

  

	 	•	Time Since Repair (TSR) 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	•	Time Since Overhaul (TSO) 

  

	 	•	Time Since Hot Section Inspection (TSHSI) 

  

	 	•	Reasons for Removal 

  

	 	10.7	 	Hardware: At the time of engine shop visits, Customer shall supply to PWC the last installed oil and fuel filters. 

  

	 	10.8	 	Engine Logbook. Customer shall ensure that all sections of the Engine logbook are properly completed when providing the Engine Logbook together with the Engine at time of
shop-visit. 

  

	 	10.9	 	Engine Operation and Maintenance. Subject to the Transition Plan, Customer shall operate the Engines in accordance with the applicable OEM aircraft operating manual under the
aircraft type certificate, and Customer’s Profile set forth in Annex F and shall, as a minimum, maintain the Engines in accordance with the provisions of Annex E. In addition, Customer shall ensure that recommendations made by P&WC are
followed in accordance with P&WC’s instructions. 

  

	 	10.10	 	Engine Operating Hours. Customer shall declare to P&WC, no later than ten (10) days following signature of this Agreement, the Engine Operating Hours and cycles of each
Engine at time of Agreement start date. 

  
 Customer shall, at the end of each month during the term of this Agreement, calculate the total Engine Operating Hours and cycles for each Engine and submit to P&WC, no later than the fifth (5th) working day of the following month, a
report similar to the form set out in Annex G containing all information required therein. If Customer fails to submit the Engine Operating Hours within the prescribed delays, P&WC will estimate the hours flown for that month and invoice
Customer accordingly. 
  

	 	10.11	 	Invoice. P&WC will issue an invoice calculated by multiplying the total Engine Operating Hours of the Fleet for the month by the Hourly Rate upon receipt of
Customer’s report of Engine Operating Hours. 

  

	 	10.12	 	Corrosion, erosion, sulphidation. Customer shall notify P&WC within 48 hours if evidence of corrosion, erosion or sulphidation is detected during maintenance inspection.

  

	 	10.13	 	Operating Environment. Customer warrants to P&WC that the Engine has not and shall not be operated in military, para-military or any other unusual service for which the
aircraft has not been designed and certified by the original airframe manufacturer. 

  

	 	10.14	 	Documentation. When requested, Customer shall provide P&WC with all the necessary documents to enable P&WC to fulfill its obligations under this Agreement or, to
verify Customer’s compliance with this Agreement. 

  

	 	10.15	 	Collaboration. Both Parties shall continuously work together to minimize operating costs, maximize on-wing time of the Engines, actively participate in P&WC’s Engine
Maintenance Interval Escalation Program and help identify cost reduction opportunities. The application of any benefits generated as a result of the foregoing shall be shared as mutually agreed upon by the Parties. 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	11

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	11.0	 	DAC SERVICES 

  

	 	11.1	 	ECTM®. Customer shall utilize ECTM® in accordance with the P&WC ECTM® analytical guide. Customer shall be obligated to: 

  

	 	11.1.1	 	immediately register with a DAC; 

  

	 	11.1.2	 	execute all agreements required by the DAC to give effect to the aforesaid registration and the provision of services contemplated in Annex I hereof (the “DAC Services”);
and 

  

	 	11.1.3	 	provide the DAC, on a weekly basis, the necessary ECTM® data as well as all other information, in any form whatsoever, as may be reasonably required by the DAC. 

  

	 	11.2	 	Contact Person. Customer will provide P&WC with the contact information relative to the person who will have the responsibility of managing Customer’s obligations in
relation to the DAC Services. 

  

	 	11.3	 	Data. Customer will provide manual data to the DAC at an interval not to exceed one week. Subject to sections 11.4 to 11.7 hereof, the DAC will update and interpret the data,
as well as identify any maintenance requirements within 1 working day. Customer shall comply with and respond to these maintenance requirements in a timely fashion. If applicable or necessary, P&WC will supply Customer with ETCM® Software at no cost to Customer.

  

	 	11.4	 	Disclaimer. ANY DAC SERVICES CONTEMPLATED IN ANNEX I HEREOF (INCLUDING WITHOUT LIMITATION TURBINETRACKERTM AND ANY SOFTWARE) WHICH MAY BE PROVIDED BY P&WC OR THE DAC ARE PROVIDED “AS IS,” AND P&WC DISCLAIMS
ALL REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, ORAL OR WRITTEN, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE OR NONINFRINGEMENT, NON-INTERFERENCE WITH ENJOYMENT,
OR ACCURACY, AND ALL WARRANTIES IMPLIED FROM ANY COURSE OF DEALING OR USAGE OF TRADE. ALL REPORTS FURNISHED TO CUSTOMER AS A RESULT OF THE DAC SERVICES MAY BE BASED ON INFORMATION FURNISHED BY CUSTOMER OR OTHER OWNERS OR OTHER OPERATORS OF MONITORED
ENGINES; NEITHER P&WC NOR THE DAC SHALL HAVE LIABILITY FOR ANY ERRORS IN OR OMISSIONS FROM THE DATA AND REPORTS PROVIDED TO CUSTOMER, OTHER OWNERS OR OTHER OPERATOR. IT IS CUSTOMER’S RESPONSIBILITY TO DETERMINE THE SUITABILITY OF THE
SERVICES FOR CUSTOMER’S PURPOSES. CUSTOMER ACKNOWLEDGES THAT 100% AVAILABILITY IS NOT REALIZABLE AND THAT INACCURACIES OR MALFUNCTIONS MAY OCCUR. 

  

	 	11.5	 	Airworthiness. WITHOUT LIMITING ANY OTHER EXCLUSION OF WARRANTY, P&WC MAKES NO WARRANTIES THAT THE DAC SERVICES ALLOW CUSTOMER OR THE OWNERS OR THE OPERATORS OF AN
AIRCRAFT TO DETERMINE THE AIRWORTHINESS OF SUCH AIRCRAFT. CUSTOMER IS SOLELY RESPONSIBLE FOR DETERMINING THE AIRWORTHINESS OF THE AIRCRAFT, AT ALL TIMES, IN ACCORDANCE WITH ALL APPLICABLE REQUIREMENTS, INCLUDING WITHOUT LIMITATION, FROM THE
MANUFACTURER(S) AND ALL RELEVANT REGULATORY AUTHORITIES. 

  

	 	11.6	 	Indemnification. Customer will defend, indemnify and hold harmless P&WC and its affiliates, directors, officers, employees, shareholders, representatives, agents,

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	12

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	 	 	servants, predecessors, successors, and permitted assigns (each an “Indemnitee”) from and against any claim, suit, demand, loss, damage, expense (including
reasonable attorneys’ fees and costs) or liability that may result from, arise out of or relate to (a) Customer’s breach of any agreement between Customer and the DAC; (b) Customer’s use of or access to any DAC Services provided by
the DAC; c) Customer’s negligence or willful misconduct in relation to the DAC Services; or (d) any personal injury or property damage arising with respect to any aircraft owned or operated by Customer with respect to which any DAC Services are
provided, but only to the extent not caused (i) by the negligence or willful misconduct of P&WC, or (ii) the DAC Services. 

  

	 	11.7	 	LIMITATION OF LIABILITY. THE LIMIT OF P&WC AND THE DAC’S LIABILITY (WHETHER IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY IN TORT OR BY STATUTE OR OTHERWISE)
CONCERNING PERFORMANCE OR NON-PERFORMANCE BY P&WC OR THE DAC, OR IN ANY MANNER RELATED TO THE DAC SERVICES, FOR ANY AND ALL CLAIMS, WILL NOT IN THE AGGREGATE EXCEED THE PAYMENTS MADE BY CUSTOMER TO P&WC HEREUNDER WITHIN THE 6 MONTHS PRIOR TO
THE DATE THE CLAIM AROSE. CUSTOMER RELEASES P&WC AND THE DAC FROM AND AGAINST ALL LIABILITY BEYOND SUCH MAXIMUM LIABILITY. NEITHER P&WC NOR THE DAC WILL BE LIABLE FOR ANY LOSS OF DATA, PROFITS, SAVINGS, USE OR BUSINESS; FOR DELAYS,
INCONVENIENCE OR BUSINESS INTERRUPTION; OR FRUSTRATION OF ECONOMIC OR BUSINESS EXPECTATIONS, NOR FOR ANY SPECIAL, INCIDENTAL, INDIRECT, EXEMPLARY, CONTINGENT, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE DAC SERVICES
WITHOUT REGARD TO WHETHER P&WC HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NEITHER P&WC NOR THE DAC WILL BE LIABLE OR RESPONSIBLE FOR ANY ANALYSIS, INTERPRETATION OR APPLICATION OF ANY INFORMATION OR DATA PROVIDED VIA THE DAC
SERVICES. THESE LIMITATIONS ARE INDEPENDENT FROM ALL OTHER PROVISIONS OF THIS AGREEMENT AND WILL APPLY NOTWITHSTANDING THE FAILURE OF ANY REMEDY PROVIDED HEREIN. 

  

	 	11.8	 	Third Party Beneficiaries. The DAC is an intended beneficiary of this Section 11.0. 

  

	 	11.9	 	Future Considerations. The Parties hereto acknowledge and agree that should it be reasonably determined by P&WC and the Customer, at any time during this Agreement, that
the use by the Customer of ADAS+ (Automatic Data Acquisition System) made available by the DAC would have allowed either Party to (i) materially reduce engine maintenance costs or (ii) maximize on-wing time of the Engines, the Customer shall be
required to install ADAS+ (the ADAS + unit to be provided by P&WC at no charge) on all Engines or, alternatively, diligently establish other commercial or technical considerations with P&WC. 

  

	12.0	 	DELAY 

  

	 	12.1	 	P&WC is not responsible for any failure or delay in performance resulting from Customer Holds as well as causes which are (i) beyond P&WC’s reasonable control;
(ii) occurred without fault or negligence of P&WC; (iii) could not have been reasonably foreseen and; (iv) could not have been prevented by means reasonably available to P&WC. These may include but are not limited to
events such as acts of government, court order, civil unrest, sabotage, adverse weather conditions, labour trouble and shortage of materials or services. P&WC will give timely notice to Customer of any such event and will endeavor to avoid or
remove the cause and resume performance with minimum delay. The time for delivery will be extended accordingly. 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	13

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	13.0	 	WARRANTY & LIMITATION OF LIABILITY 

  

	 	13.1	 	This Agreement is in lieu of the warranty and service policy applicable to Customer’s Engine(s) and Customer hereby assigns to P&WC the rights and remedies thereunder in
respect of Repairs arising during the term of this Agreement. Any P&WC workmanship warranty costs will be absorbed by P&WC (or its contractors) outside the TCP®. Upon termination of this Agreement, any remaining warranty & service policy coverage will return to Customer and
P&WC will extend to Customer any available warranty received by the service provider on work performed hereunder. For greater certainty, P&WC will provide to Customer, upon termination of this Agreement, the available warranty relative to
Repair and Overhaul services performed by P&WC as indicated in Annex J hereof. 

  

	 	13.2	 	P&WC is responsible for the defense of any claim, alleging infringement of a Canadian or United States patent by sale or use, without further combination, of new parts
incorporated in the Goods provided the Customer gives P&WC prompt written notice of the claim, and full information and authority to defend it. P&WC’s responsibility includes all expenses of defense and payment of costs and damages for
patent infringement awarded by the court or agreed to by P&WC. If use or sale of the Goods is finally prohibited, P&WC will, at its option (i) procure the right for sale or use, (ii) modify or replace the Goods to avoid infringement or (iii)
take back the Goods and refund the price (less a reasonable allowance for use or damage). The Customer will hold P&WC harmless against any claim of patent infringement arising out of compliance with a design or specification furnished by
Customer. 

  

	 	13.3	 	The Services and remedies provided by P&WC under this Agreement are accepted by the Customer in lieu of all other warranties expressed, implied or any obligation or liability of
P&WC in contract or in tort whether or not arising out of negligence. The Customer’s remedies with respect to the warranties set forth in this Section 13.0 in relation to the Services provided hereunder are expressly limited to those set
out in this Agreement, to the exclusion of any and all other remedies including, without limitation, indirect, incidental or consequential damages. Indirect, incidental or consequential damages include, without limitation, economic loss, loss or
damage to any property or person or any other exemplary, punitive or similar damages, as well as expenses incurred external to the Engines as a result of any of the Services provided hereunder. 

  

	 	13.4	 	Notwithstanding the foregoing, P&WC will indemnify and hold Customer harmless in the event that a third party holds Customer liable for damages (including reasonable
attorneys’ fees) caused directly by the provision of any Service P&WC has provided to Customer; provided, however, that P&WC shall not be responsible for any indirect, incidental or consequential damages incurred by the Customer or any
such third parties including, without limitation, economic loss, loss or damage to any property or person and any other exemplary, punitive or similar damages. 

  

	14.0	 	NON-DISCLOSURE 

  

	 	14.1	 	Save and except for disclosures (i) required to be made pursuant to applicable statute or government regulation or (ii) to be made pursuant to any bona fide request from a
Party’s lenders or insurance carriers or potential lenders or insurance carriers, 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	14

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	 	 	provided such lenders or insurance carriers execute prior to disclosure, a non-disclosure agreement in form and substance satisfactory to the other Party, acting reasonably, neither
Party shall disclose without the prior written approval of the other Party, any information regarding terms and conditions of this Agreement to any third party, nor advertise or release any publicity concerning this Agreement. The provisions of this
paragraph shall survive termination of this Agreement. The Parties acknowledge that should any lender or insurance carrier refuse to execute the required non-disclosure agreement, the Parties shall diligently make other mutually agreeable
arrangements relative to the disclosure of this Agreement and its content. 

  

	 	14.2	 	P&WC reserves the right to disclose the terms and conditions of this Agreement to any of its affiliates on a “need to know” basis. 

  

	15.0	 	TERMINATION 

  

	 	15.1	 	In the event that either Party is in default of any provision of this Agreement and remains in default for a period of fifteen (15) days after receipt of written notice thereof from
the other, such other Party may, without prejudice to any rights and remedies otherwise provided under this Agreement or by law, suspend the Services under this Agreement from the date of the written notice for default and terminate this Agreement
by notice at any time after the fifteen (15) day period, subject to any accrued obligations existing at the date of termination. 

  

	 	15.2	 	P&WC shall have the right, but not the obligation, to terminate this Agreement, without further notice or delay to the Customer, in the event that the Customer’s accrued
financial obligations to P&WC under this Agreement exceed the guarantee provided by RACC under the RACC Backstop Agreement. 

  

	 	15.3	 	Either Party (the “Terminating Party”) may terminate this Agreement for any reason, provided the Terminating Party: 

  

	 	15.3.1	 	is not in default under this Agreement; 

  

	 	15.3.2	 	provides the other Party (and RACC) with a three (3) month prior written notice of termination; and 

  

	 	15.3.3	 	complies with the provisions of this Article 15.0, including, without limitation, sections 15.4 to 15.6, as applicable to the Terminating Party. 

  
 Without limiting the generality of the foregoing, should the Terminating
Party be the Customer, it shall not have the right to exercise the termination option provided under this paragraph (i) if it is in default under the terms of any agreement it may have executed with RACC relative to the Aircraft, including, without
limitation, the payment of all sums due to RACC thereunder or (ii) if it still has outstanding indebtedness to RACC, unless RACC consents to such termination in writing. 
  

	 	15.4	 	Upon termination of the Agreement by P&WC under Section 15.1 or 15.2 above or upon termination of the Agreement by any Party pursuant to Section 15.3 or 15.9, P&WC shall,
within 30 days of the date of termination, provide the balance of Customer’s FMP® account, with relevant documentation as deemed appropriate by P&WC, which shall be calculated as follows: 

  

	 	1.	 	The aggregate amount of monthly payments received from Customer under the Agreement covering the period from the date of inception of this Agreement forward

  

			
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 Less 
  

	 	2.	 	The aggregate amount of all services provided by P&WC under the Agreement, valued at the event cost established below, and as adjusted from time to time as contemplated in this
Agreement. 

  

			
	 Item

	 	 Event Cost

	Gas Generator Overhaul	 	XXXXX
	Power Section Overhaul	 	XXXXX
	HSI Component Refurbishment	 	XXXXX
	BUER	 	XXXXX
	LCF Components	 	P&WC Price List 501 less XXXXX1

  

	 	15.5	 	In the event that the balance of Customer’s FMP® account determined pursuant to Section 15.4 is positive (monthly payments received exceed aggregate amount of services provided under the Agreement
from the date of the Agreement forward), P&WC shall, within 60 days from the date of the termination notice, reimburse 100% of the positive balance to the Customer, less any amounts due to P&WC by Customer under any other agreement with
P&WC, including, without limitation, any negative reserve under any other agreement between P&WC and Customer. 

  

	 	15.6	 	In the event that the balance of Customer’s FMP® account determined pursuant to Section 15.4 is negative (monthly payments received are less than the aggregate amount of services provided under the
Agreement from the date of the Agreement forward), the Customer shall, within 60 days from the date of termination notice, pay to P&WC 100% of the negative FMP® balance. 

  

	 	15.7	 	Except in the case of a termination for convenience under Section 15.3, any payment made to a Party pursuant to Sections 15.5 or 15.6, as the case may be, shall be without prejudice
to any of such Party’s rights to claim actual damages pursuant to this Agreement or at law, provided such Party is not the party in default hereunder. 

  

	 	15.8	 	Should the Customer be indebted to P&WC upon the occurrence or by reason of a default under this Agreement (the “Customer’s Debt”) and that the Customer does not,
for any reason whatsoever, pay the Customer’s Debt at the earliest of (i) the prescribed delay(s) to effect such payment or (ii) thirty (30) days from the date of such default, P&WC shall have the right to apply any sums that P&WC may
have received from the Customer, whether under the terms of this Agreement or any other agreement(s) executed with the Customer, as a reduction to the Customer’s Debt, without further notice or delay to the Customer. 

 

	 	15.9	 	Either Party may terminate this Agreement at any time by written notice to the other if the other Party becomes insolvent or performs or permits any act of bankruptcy, liquidation,
or if a receiver, trustee or custodian is appointed of the other Party or a substantial part of the other Party’s property. 

  

	 	15.10	 	In the event that an Engine is damaged by accident and deemed by P&WC to be 

	1	 	Material omitted pursuant to a request for confidential treatment. Omitted material has been filed separately. 

  

			
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	 	 	beyond economical Repair, or deemed by P&WC not to be recoverable due to theft or loss, or is transferred to a third party by sale or otherwise, performance of all obligations
of the Parties under this Agreement, except for the Customer’s obligation to make any payment due to P&WC hereunder, for such Engine shall be completed up to the date of such event and shall cease thereafter. 

  

	16.0	 	EXPORT CONTROLS 

  

	 	16.1	 	This Agreement is subject to Canadian, U.S. or other country’s export control regulations. 

  

	 	16.2	 	P&WC: 

  

	 	•	 	will apply and pay for any necessary export permit/license required for shipment from a Designated Facility to the Customer’s location as required; 

  

	 	•	 	cannot be held responsible for the issuance, or renewal of export license/permits; 

  

	 	16.3	 	Customer: 

  

	 	•	 	will apply and pay for any necessary export license/permit required for shipment from Customer’s facility to a P&WC location as required; 

  

	 	•	 	cannot be held responsible for the issuance or renewal of export license/permits. 

  

	 	Note:	 	Neither Party will be held responsible for cost(s)/expenses incurred by either Party should export license/permit not be issued and/or renewed by a government authority.

  

	17.0	 	GENERAL TERMS 

  

	 	17.1	 	All notices required to be given pursuant to this Agreement shall be in writing and shall be considered as duly delivered when sent by registered mail to the other Party at the
address stated on the face page of this Agreement (in the case of the Customer, to the attention of the President) or such other address as either Party shall advise the other in writing. 

  

	 	17.2	 	Neither Party may assign this Agreement in whole or in part without the written consent of the other. 

  

	 	17.3	 	This Agreement with its Annexes constitutes the sole and entire Agreement between the Parties with regard to the subject matter hereof and supersedes all other contracts, agreements
or understandings including, without limitation, Customer’s purchase orders or P&WC’s acknowledgment thereof. 

  

	 	17.4	 	This Agreement shall be governed and interpreted in accordance with the laws in force in the State of New York. 

  

	 	17.5	 	No modification of this Agreement shall be binding unless agreed to by a written instrument executed by duly authorized representatives of both Parties. 

  

	 	17.6	 	Recourses are cumulative and not alternative. Singular includes the plural. 

  

	 	17.7	 	Any concession, latitude or waiver allowed by either Party to the other at any time shall not prevent such party from subsequently enforcing its rights and shall not be deemed a
waiver of any subsequent breach. 

  

			
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 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
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	 	17.8	 	The Parties have requested this Agreement, including all of its Annexes, to be drawn in the English language. 

  

	 	17.9	 	Each of the parties has been given the opportunity to review this Agreement with legal counsel. 

  

	 	17.10	 	This Agreement is the result of negotiation between all parties hereto. Accordingly, no provision of this Agreement shall be interpreted for or against any party hereto on the basis
that such party was the draftsman of such provision, and no presumption or burden of proof shall arise disfavoring or favoring any party by virtue of the authorship of any of the provisions of this Agreement. 

  

	 	17.11	 	Each of the parties hereto represents to the other that (a) it has full power, authority and legal right to enter into and perform this Agreement, (b) the execution, delivery and
performance of this Agreement has been duly authorized by all necessary action on each party’s part, does not require any approvals or consents except such approvals and consents as have heretofore been duly obtained or which are specifically
enumerated herein to which this Agreement is subject, and (c) this Agreement does not contravene any law binding on either of the parties or contravene any agreement to which either of the parties hereto is a party or by which it is bound, or any
law, governmental rule, regulation or order. Upon request, each of the parties will provide the other party with documentary evidence of its authority to enter into this Agreement. 

  

	 	17.12	 	The provisions of this Agreement shall be severable, and if any provision shall be invalid, illegal or incapable of being enforced by reason of any rule of law, administrative
order, judicial decision or public policy, all other provisions contained herein shall, nevertheless, remain in full force and effect. 

  

	 	17.13	 	The captions or headings in this Agreement are made for convenience and general reference only and shall not be construed to describe, define or limit the scope or intent of the
provisions of this Agreement. 

  

	 	17.14	 	This Agreement may be executed in several counterparts, each of which, when so executed, shall be deemed to be an original, and such counterparts shall, together, constitute and be
one and the same instrument. 

  

	 	17.15	 	All annexes and exhibits referred to in this Agreement and attached hereto are by this reference incorporated as an integral part of this Agreement, subject to the terms and
conditions set forth herein. 

  

			
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	  	18

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX A - ENGINE LIST 
  
 60 Engines and 2 Spares 
  
 Fleet Engine serial numbers covered by this Agreement: 
  

							
	Gas Generator	  	Power Section
				
	 Serial Number

	  	 TTSN\TCSN\TSO\TSHSI

	  	 Serial Number

	  	 TTSN/TCSN\TSO

	 114333
	  	 16,934\21,417\16,906\4,843
	  	 PS0076
	  	 15,511\19,288\15,511

	 PS0068
	  	 13,143\15,365\13,116\7,374
	  	 114224
	  	 22,033\24,793\12,545

	 114034
	  	 20,139\26,630\12,050\2,465
	  	 PS066
	  	 15,112\17,857\15,112

	 114220
	  	 21,925\21,484\14,922\7,282
	  	 114225
	  	 16,649\17,725\8,200

	 PS0090*
	  	 12,514\15,088\0\0
	  	 PS0095*
	  	 13,226\14,652\0

	 114224*
	  	 20,503\23,906\11,016\0
	  	 114457*
	  	 15,655\18,511\4,917

	 PS0077
	  	 15,630\16,495\15,630\4,764
	  	 PS0031
	  	 15,194\19,194\15,194

	 114305
	  	 12,646\20,551\675\4,865
	  	 PS0093
	  	 14,368\17,626\14,368

	 PS0079
	  	 15,698\19,328\15,698\3,181
	  	 114333*
	  	 13,913\18,021\289

	 114179*
	  	 17,879\24,479\10,178\104
	  	 114177
	  	 22,006\29,276\14,880

	 PS0059
	  	 13,137\15,438\13,137\1,545
	  	 114463
	  	 17,462\21,857\6,083

	 114381
	  	 17,003\18,207\17,003\2,353
	  	 114268
	  	 19,972\26,652\13,693

	 114266
	  	 19,262\26,538\12,238\2,372
	  	 114443
	  	 16,188\17,428\16,188

	 PS0060
	  	 13,976\15,822\13,976\2,372
	  	 PS0079
	  	 15,244\18,698\15,244

	 114393
	  	 15,626\18,522\15,626\4,878
	  	 114340
	  	 19,165\25,799\12,489

	 PS0049
	  	 13,681\15,738\2,721\698
	  	 114223
	  	 21,586\23,754\5,349

	 PS0012
	  	 14,171\16,071\14,171\109
	  	 PS0017
	  	 16,163\19,576\16,163

	 PS0076
	  	 15,780\19,024\15,780\7,095
	  	 114305
	  	 16,704\24,793\4,747

	 114380
	  	 16,330\21,496\16,309\1,244
	  	 114380
	  	 16,314\21,437\16,293

	 PS0001*
	  	 12,859\16,224\104\104
	  	 114406*
	  	 15,447\18,332\104

	 114462
	  	 17,650\18,801\5,866\2,656
	  	 114202
	  	 22,251\26,025\14,224

	 114376
	  	 13,199\14,171\13,178\6,482
	  	 114376
	  	 13,199\14,177\13,177

	 114265
	  	 18,477\22,143\7,413\5,385
	  	 114265
	  	 18,477\22,139\7,413

	 114357
	  	 17,623\17,710\5,789\1,056
	  	 114426
	  	 17,159\20,002\5,912

	 	  	 	  	 114462
	  	 16,290\17,365\16,290

	 PS0056*
	  	 11,908\14,114\120\120
	  	 114124
	  	 21,409\28,044\13,725

	 114426
	  	 TBD
	  	 PS0014
	  	 TBD

	 114460
	  	 17,410\20,421\5,686\5,717
	  	 114218
	  	 21,327\24,123\15,373

	 PS0082
	  	 12,213\14,824\812\812
	  	 PS0082
	  	 13,035\15,835\812

	 114443
	  	 16,980\17,848\16,980\2,082
	  	 PS0077
	  	 15,258\16,997\15,258

	 114444
	  	 16,742\19,823\16,742\1,088
	  	 114234
	  	 22,078\24,794\5,674

	 PS0072
	  	 14,629\19,069\14,629\1,609
	  	 114460
	  	 17,573\20,571\5,875

	 114464
	  	 16,563\17,876\4,637\1,748
	  	 PS0060
	  	 15,081\17,734\4,709

	 114463
	  	 16,564\20,018\4,637\2,195
	  	 PS0084*
	  	 13,962\17,492\104

	 114218*
	  	 19,404\22,660\466\466
	  	 114260
	  	 20,411\27,76313,038

	 114112
	  	 23,990\29,971\6,332\1,047
	  	 114220
	  	 22,117\21,635\15,126

	 PS0031
	  	 14,854\19,076\14,854\2,714
	  	 114267
	  	 20,105\20\703\9,640

	 114441
	  	 15,155\18,606\15,155\2,714
	  	 114357
	  	 17,102\17,622\5,116

	 114409
	  	 17,327\21,584\5,9495,519
	  	 114304
	  	 18,016\23,316\6,040

	 PS0078
	  	 12,271\13,466\12,271\6,097
	  	 	  	 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	19

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

							
	 PS0094
	  	 15,490\19,477\15,490\3,811
	  	 114266
	  	 19,588\27,141\12,564

	 PS0095
	  	 15,490\16,589\15,489\675
	  	 PS0078
	  	 15,605\16,531\15,605

	 PS0084
	  	 12,406\16,384\12,406\481
	  	 PS0011
	  	 11,991\15,483\11,991

	 PS0120
	  	 13,558\14,501\13,532\6,777
	  	 114421
	  	 17,177\21,181\6,384

	 114395
	  	 18,266\21,726\6,6,4062,311
	  	 	  	 
	 PS0014
	  	 16,683\18,687\16,683\2,805
	  	 PS0075
	  	 14,364\17,482\14,364

	 114271*
	  	 18,095\23,166\6,149\7,241
	  	 114061*
	  	 22,700\29,820\2,716

	 PS0092
	  	 15,604\18,079\15,604\2,186
	  	 	  	 
	 PS0048
	  	 16,465\20,253\16,442\6,263
	  	 PS0048
	  	 19,457\20,245\16,435

	 114429
	  	 17,586\22,226\5,474\6,641
	  	 PS0056
	  	 16,280\18,363\16,280

	 PS0055
	  	 16,404\20,463\16,384\6,268
	  	 114448
	  	 16,507\17,952\16,507

	 114445
	  	 17,072\17,359\17,051\1,512
	  	 114235
	  	 21,308\23,394\11,354

	 114232
	  	 21,241\22,333\10,936\6,384
	  	 114464
	  	 17,564\18,606\5,914

	 114193
	  	 21,483\26,462\13,400\2,653
	  	 114409
	  	 17,744\21,573\6,843

	 114448*
	  	 16,996\17,258\16,996\1,350
	  	 114238*
	  	 21,511\26,179\13,242

	 PS0011
	  	 15,809\18,238\15,781\3,945
	  	 114113
	  	 22,728\28,502\14,801

	 114267
	  	 19,031\19,354\8,566\3,365
	  	 114338
	  	 18,901\25,132\12,424

	 PS0075*
	  	 15,783\19,355\15,783\3,302
	  	 114274
	  	 17,437\23,807\5,605

	 PS0017
	  	 14,640\17,845\558\1,771
	  	 PS0068
	  	 14,857\17,219\14,857

	 114458
	  	 15,916\17,583\15,916\1,727
	  	 114445
	  	 16,864\17,423\16,864

	 PS0093*
	  	 16,009\17,718\15,978\1,810
	  	 114232*
	  	 20,772\21,173\10,493

	 	  	 	  	 114441*
	  	 16,427\19,702\16,396

	 	  	 	  	 114271*
	  	 UNK\UNK\6,492

	 PS0018*
	  	 16,400\17,838\0\0
	  	 	  	 
	 114377*
	  	 UNK\UNK\3,333\3,333
	  	 PS0018*
	  	 13,362\14,910\0

	 	  	 	  	 114046*
	  	 12,499\14,943\0

  
 where: 
  

					
	 TSN
	  	=	  	 Time Since New

	 TSO
	  	=	  	 Time Since Overhaul

	 TSHSI
	  	=	  	 Time Since Hot Section Inspection

	 CSN
	  	=	  	 Cycle Since New

	 CSO
	  	=	  	 Cycle Since Overhaul

	 CSHSI
	  	=	  	 Cycle Since Hot Section Inspection

  
 Note: The information contained in
this Annex was presented to P&WC by the Customer and is valid as of November 10, 2003 or December 10, 2003 where indicated with an asterisk (*) beside the engine serial number. Customer acknowledges that P&WC relied upon such information in
entering into this Agreement and in determining the Hourly Rate. 
  
 Any
discrepancies found by P&WC will be the sole responsibility of Customer and may result in an adjustment of the Hourly Rate by P&WC or the exercise of such other recourse as P&WC has under the Agreement. 
  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	20

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX B - LCF, HSI and FUEL NOZZLE KIT COMPONENTS 
  

	A.	 	LCF COMPONENTS 

  

	1.	 	The following LCF Components are covered under this Agreement. The scope of services shall be subject to Annex C. 

  

			
	 Rotor, Compressor, 1st Stage
 Rotor, Compressor, 2nd Stage
 Rotor,
Compressor, 3rd Stage
 Rotor, Compressor, 4th Stage
 Compressor Rotor Shaft
	 	 Compressor Impeller
 Compressor Turbine Disk
 Disk, Power Turbine, 1st Stage
 Disk, Power Turbine, 2nd Stage

  

	B.	 	HSI COMPONENTS 

  

	1.	 	The following HSI Components are covered under this Agreement. The scope of services shall be subject to Annex C. 

  

			
	 Small Exit Duct Assembly
 CT Vane Ring
 CT Disk and Blades
 Shroud Housing Retaining Bolts
 CT Shroud Segments
 Combustion Chamber, outer liner
 Combustion Chamber, inner liner
 1st Stage PT Vane
	 	 #2 Bearing Cover Flange
 #2 Bearing Cover Locating Plate
 CT Shroud Housing
 Sealing Ring(s),
 PT Stator Housing

  
 The Designated Facility for HSI
Components refurbishment shall, at the inception of this Agreement, be Customer. However, the Parties acknowledge and agree that should P&WC, for any commercially reasonable motive during the term of this Agreement, to designate a new Designated
Facility for the provision of such services, the Hourly Rate may be increased to consider any labor-related incremental costs that P&WC may have to incur as a result thereof. 
  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	21

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX C - SCOPE OF SERVICES 
  

	1.0	 	GENERAL 

  

	 	1.1	 	Annex C further defines the extent of Engine Maintenance Services to be provided by P&WC under this Agreement. The requirements for Engine induction and restoration are defined
in the applicable Service Centre Specification. P&WC shall provide the Customer with a copy of such specification upon request by Customer. 

  

	 	1.2	 	An HSI or HSI Repair shall be performed when indicated by ECTM® by borescope inspection, hard time intervals or as determined by P&WC in conjunction with Customer to optimize shop visit scheduling. P&WC
reserves the right to determine if an HSI or HSI Repair is required. 

  

	 	1.3	 	Unscheduled replacement of any Accessory by a serviceable unit as a consequence of confirmed failure due to another Component or Engine induced malfunction is covered under this
Agreement 

  

	 	1.4	 	Costs related to the incorporation of service bulletins applicable to components under this Agreement covered through commercial support programs, at time of Engine Module scheduled
shop visits or as described in the commercial support program notification and minimum service bulletin(s) will be covered under the terms of this Agreement. 

  

	 	1.5	 	P&WC may from time to time, offer the option to exchange Engines for convenient purpose. Finalization of such exchange would require mutual agreement from both Parties and would
be subject to Customer, or if the Customer does not own the Engine, the owner of the Engine to enter into a P&WC Engine Exchange Agreement which shall effect the transfer of title of the Engines. 

  

	2.0	 	FUEL NOZZLE KIT REFURBISHMENT 

  

	 	2.1	 	Fuel nozzle refurbishment costs are included in the TCP® coverage at Overhaul of the gas generator module only. It excludes all costs associated with fuel nozzle restoration outside the gas generator
scheduled Overhaul visit. 

  

	 	2.2	 	The Customer agrees to the fuel nozzle restoration interval stipulated in Annex E. 

  

	3.0	 	HSI 

  

	 	3.1	 	An HSI or HSI repair will be performed in accordance with the PT6A Engine Maintenance Manual inspection criteria. Repairs may use in-service inspection criteria as deemed
applicable. 

  

	 	3.2	 	HSI Components coverage includes the cost to Repair or replace (if unserviceable or non-repairable per the Engine Maintenance Manual), as the case may be, the HSI Components listed
in Annex B, part B, at a Designated Facility. 

  

	 	3.3	 	Customer shall keep, for the duration of this Agreement, a minimum of three (3) P&WC HSI kits in relation to the HSI Components in inventory. 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	22

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	3.4	 	Customer shall provide the Designated Facility and the CFR with the following information at time of HSI: 

  

	 	3.4.1	 	Reason for Removal; 

  

	 	3.4.2	 	CT Disk serial number, LCF card, and Trim Weight Locations; 

  

	 	3.4.3	 	Engine serial numbers, TSN, CSN, TSO, CSO, TSHSI and CSHSI. 

  

	4.0	 	ACCESSORY WORKSCOPE 

  

	 	4.1	 	This Agreement covers those costs associated with the Accessories listed below, as follows: 

  

	 	4.2	 	Accessories removed for BUR (Field Level Maintenance) are not covered under the terms of this Agreement. 

  

	 	4.3	 	Accessories that are unserviceable when received with the Engine at shop visit are not covered under the terms of this Agreement. 

  

	 	4.4	 	The following defines the Accessory workscope to be performed by P&WC, at time of Engine/Module shop visit for Repair, HSI or Overhaul. 

  

							
	 	  	Repair

	  	HSI

	  	Overhaul

	 Bleed Valve
	  	FC	  	FC	  	O/H
	 Chip Detector
	  	FC	  	FC	  	O/H
	 Flow Divider/Dump Valve
	  	V	  	V	  	O/H
	 Fuel Nozzle set
	  	C/FC&R	  	C/FC&R	  	O/H
	 Oil Filter
	  	C&I	  	C&I	  	O/H
	 T-5 Harness
	  	FC	  	FC	  	O/H
	 T-5 Thermocouples
	  	FC	  	FC	  	O/H
	 T1 Trim Stick
	  	FC	  	FC	  	O/H
	 Propellor Governor Unit
	  	V	  	V	  	O/H
	 Fuel Control Unit
	  	V	  	V	  	O/H
	 Fuel Pump
	  	V	  	V	  	O/H
	 Thermostatic By-Pass & Check Valve
	  	V	  	V	  	O/H
	 Oil-to-Fuel Heater
	  	V	  	V	  	O/H
	 Ignition Exciter
	  	V	  	V	  	O/H

  
 Codes:

  

			
	 V:
	  	 Visually inspect

	 C&I:
	  	 Clean and Inspect, reinstall if serviceable

	 FC:
	  	 Functional/Bench check

	 C/FC&R:
	  	 Clean, Functionally Check and Repair deviating Nozzles as necessary

	 O/H:
	  	 Per Overhaul Manual Instructions

  

	5.0	 	LCF HARDWARE 

  

	 	5.1	 	P&WC will replace an LCF Component listed in Annex B which is accessible at time of shop visit, if the cycles remaining on the subject Component is insufficient to reach the
next scheduled engine shop visit or HSI interval that will permit access to that LCF Component. At its option, P&WC may elect to install serviceable LCF Components. 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	23

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	5.2	 	LCF Components removed by P&WC will be returned to Customer. 

  

	6.0	 	ENGINE MODULE – SCHEDULE VISIT (BASIC WORKSCOPE) 

  

	 	6.1	 	Gas Generator Module 

  
 Overhaul Manual – (Basic module (AGB/Compressor Assembly) 
  

	 	•	Liners/PT Vane Ring 

  

	 	•	Bleed Valve/Trim Stick/Ignition plugs & cables 

  
 Maintenance Manual 
  

	 	•	Hot Section Kit 

  

	 	•	Fuel Nozzles/ Flow Divider 

  
 Customized “minimum SB” list mandatory parts replacement 
  

	 	•	#1 bearing 

  

	 	•	#2 bearing (every second overhaul) 

  
 Test per Overhaul Manual 
  

	 	•	GLA first stage PT Vane Ring 

  

	 	•	Slave accessories 

  

	 	6.2	 	Power Section Module 

  
 Overhaul Manual – (Basic module (PT Assembly/ Exhaust / RGB) 
  

	 	•	T-5 probes & harness 

  

	 	•	Chip detector 

  
 Customized “minimum SB” list mandatory parts replacement 
  

	 	•	#4 bearing 

  

	 	•	#3 bearing (every second overhaul) 

  

	 	•	First stage planet & sun gear 

  

	 	•	Oil Pressure jet, # 3 & 4 bearing 

  

	 	•	PT Blades, second stage 

  
 Test per Overhaul Manual 
  

	 	•	Slave first stage PT Vane Ring 

  

	 	•	Slave Accessories 

  

	 	6.3	 	Hot Section Inspection 

  
 Maintenance Manual – (Basic module) 
  

	 	•	CT disk balancing assembly 

  

	 	•	CT vane assembly 

  
 Customized “minimum SB” list mandatory parts replacement 
  

	 	•	CT disk (if cycles > 6000) 

  
 Matching 
  

	 	•	SCTI-B-002 or +/-.03 from last test cell run class 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	24

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX D - SUPPORT SPARE ENGINES 
  

	1.0	 	GLA SPARES  

  

	 	1.1	 	Customer shall have the obligation, for purposes of spare engine support, to provide, at any given moment during the term of this Agreement, not less than two (2) GLA Spares.
Customer acknowledges and agrees that the GLA Spares constitute fundamental components of the TCP®. 

  

	 	1.2	 	The GLA Spares shall be made available by Customer to support the TCP® without any restrictions or limitations whatsoever regarding the projected operation and time of use under this Agreement. 

  

	2.0	 	RACC LOANERS 

  

	 	2.1	 	RACC shall have the obligation to provide, at any given moment during the term of this Agreement, the RACC Loaners. RACC acknowledges and agrees that the RACC Loaners constitute
fundamental components of the TCP®.

  

	 	2.2	 	The RACC Loaners shall be made available by RACC, at no additional cost (but subject to section 4.2 of this Annex), to support the TCP® without any restrictions or limitations whatsoever regarding the projected operation
and time of use under this Agreement. 

  

	 	2.3	 	For each RACC Loaner, Customer shall execute a bailment agreement in a form acceptable to RACC and which will incorporate, as a minimum, the requirements provided in this Annex D.

  

	3.0	 	P&WC SPARES 

  

	 	3.1	 	P&WC reserves the right to provide P&WC support spare engines (through P&WCL) at any time during the term of this Agreement, at no additional cost and at its entire
discretion (the “P&WC Spare(s)”). The Customer will be required to execute P&WCL’s standard rental engine agreement prior to the release of such P&WC Spares by P&WCL attached as Schedule 1 to this Annex D.

  

	4.0	 	GENERAL 

  

	 	4.1	 	Use of Spare Engines. The Spare Engines usage shall be monitored by the CFR, with prior notice to Customer, in such a way as to provide for optimal spare engine support
during the term of this Agreement. 

  

	 	4.2	 	Payment Obligation. The Customer shall be obligated to pay to P&WC the Hourly Rate for usage of the Spare Engines. Such amounts collected by P&WC shall be held for
the benefit of the TCP®. Spare Engine support for
events not covered by this Agreement shall be supplied to the Customer at the published P&WCL Rental Rate applicable at such an event. 

  

	 	4.3	 	Shipment of Engine. The Customer shall ship the Engine or Engine Module requiring Engine Maintenance Services covered hereunder to the Designated Facility within five (5)
working days from the actual removal date. 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	25

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

	 	4.4	 	Application of P&WCL Rental Rate. In the event that the five (5) working day period is exceeded and Customer has a Spare Engine installed, then the published P&WCL
Rental Rate shall apply until such time Engine is shipped. 

  

	 	4.5	 	Customer Hold. In the event that the Customer (i) has a Spare Engine installed and; (ii) has its Engine put on a 7-day window Customer Hold status by P&WC;
(iii) and such Customer Hold status affects the execution of Engine Maintenance Services covered herein, then the published P&WCL Rental Rate shall automatically apply in relation to Customer’s use of the Spare Engine
(notwithstanding the rate quoted in the rental or bailment agreement, as applicable) until such time as Customer has remedied the Customer Hold situation under this Agreement. 

  

	 	4.6	 	Removal of Spare Engines. Spare Engines may remain on wing unless decided otherwise by the CFR. 

  

	 	4.7	 	Maintenance of Spare Engines. Spare Engines shall be maintained by Customer using the same maintenance practices and inspection intervals as the Engines covered under this
Agreement and Annex E. However, Spare Engines will be subject to a basic Time Before Overhaul (TBO) threshold inspection interval and shall be removed from service prior to the threshold inspection interval published in the applicable service
bulletins or maintenance manual. 

  

	 	4.8	 	Prohibition. Customer shall use the Spare Engines as whole units and shall not separate same into modules unless it has obtained the prior approval of P&WC.

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	26

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX E - MAINTENANCE TASKS, INTERVALS AND OPERATIONAL GUIDELINES 
  

	1.0	 	ENGINE MAINTENANCE CONDITIONS 

  
 The Customer shall operate and maintain the Engines and components in accordance with the Aircraft Flight Manual, Pilot’s Operating Handbook, the
applicable Engine Maintenance Manual, recommended Service Bulletins, and any other instructions and recommendations issued by P&WC. In addition, the following maintenance tasks are or will be performed at the indicated intervals for each such
Engine (it being understood, however, that the Overhaul intervals set forth below shall not be applicable for an Engine subject to the Transition Plan until the initial Overhaul under the Transition Plan is completed: 
  

	 	Note 1:	 	The tasks and intervals below may be supplemented, adjusted, or removed at any time at the CFR or P&WC’s discretion to improve engine reliability or cost control.

  

	 	Note 2:	 	Unless otherwise specified below, all Engine maintenance tasks and intervals listed in the applicable aircraft and Engine Maintenance Manual are to be performed.

  
 Engine Model: PT6A-67D 
  

					
	 	  	TASKS	  	INTERVAL
			
	 	  	GENERAL	  	 
	1	  	 Gas Generator – Overhaul
 Power Section – Overhaul
	  	 12,000 cy
 12,000 cy

	2	  	 Hot Section Inspection interval
	  	6000 cy or based on ECTM® and borescope inspection
			
	 	  	ECTM (Ref. SIL Gen –055 )	  	ECTM V Version - latest revision
	 	  	 Manual Data
	  	 Daily data collection

	1	  	 Trend alert
	  	 D ITT = 15oC, D Ng = 1%

	2	  	 Forward data to DAC
	  	 Customer / weekly basis

	3	  	 Maintenance actions recorded in ECTM data
	  	 Customer / Done by qualified personnel as required

	*D :	 	Delta 

  

					
	 	  	PROPELLER	  	 
	1	  	 Dynamic balance
	  	 1000 hrs max.

	2	  	 Check primary blade angle
	  	 1000 hrs max.

	3	  	Inspect slip rings & brush block assembly, clean as necessary, inspect de-icing leads & de-icing mats	  	 50 hrs max.

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	27

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

					
	 	  	TASKS	  	INTERVAL
			
	 	  	CLEANING	  	 
	1	  	 Compressor wash (water)
	  	 N/A

	2	  	 Turbine wash (water )
	  	 N/A

	3	  	 Engine external wash
	  	 N/A

	4	  	 Performance recovery wash (cleaning agent)
	  	 N/A

			
	 	  	FUEL SYSTEM	  	 
	1	  	 Fuel nozzle inspection*
	  	 650 hrs

	2	  	 Fuel pump filters replacement
	  	 600 hrs

	3	  	 Inspect gas generator. Case drain valves
	  	 At fuel nozzle inspection

	*	 	P&WC reserves the right to adjust this interval should hot section condition trends show evidence that the fuel nozzles and flow divider have been run beyond the optimum removal
interval. 

  

					
	 	  	BORESCOPE INSPECTION	  	By qualified personnel
	1	  	Hot section inspection	  	At fuel nozzle replacement
	2	  	Compressor inlet	  	At fuel nozzle replacement
	3	  	Oil, scavenge pump, Inlet screen	  	1000 hrs
			
	 	  	IGNITION	  	 
	1	  	Inspect ignitors and excitor box	  	200 hrs.
	2	  	Replace ignitors	  	GLA Maintenance Program
	3	  	Visual inspection of ignition cables	  	When ignitors are replaced
			
	 	  	AIR	  	 
	1	  	Bleed valve operational check	  	1000 hrs max and if trend dictates
	2	  	P3 filter check	  	400 hrs max.
	3	  	P3 filter replacement	  	1000 hrs max.
			
	 	  	INDICATION	  	 
	1	  	ITT and Torque verification	  	1000 hrs max. or if ECTM® dictates

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	28

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

					
	 	  	TASKS	  	INTERVAL
			
	 	  	OIL	  	 
	1	  	Main oil filter inspection	  	200 hrs max.
	2	  	Main oil filter replacement	  	1000 hrs max.
	3	  	Oil filter patch check	  	At main oil filter replacement
	4	  	Chip detector - open circuit check	  	50 hrs max.
	5	  	Chip detector - continuity check (including wiring harness / terminals if fitted)	  	600 hrs
			
	 	  	ACCESSORIES	  	 
	1	  	Propeller Governor – inspect per SB 14236	  	1000 hrs.
	2	  	Fuel Heater - inspect per Maint. Man	  	1000 hrs.
			
	 	  	POWER TURBINE BLADES	  	 
	1	  	PRE SB 14172 with more than 1500 hrs	  	200 hrs.
	2	  	POST SB 14172 with more than 4000 hrs	  	200 hrs.
			
	 	  	OPERATIONAL GUIDELINES	  	 
	1	  	Use of MTOP (Maximum Take-Off Power)	  	Not to be used unless required.
	2	  	Reduced Take-off, climb and cruise power	  	Recommended unless conditions dictate otherwise
	3	  	Reverse propeller operation	  	Not recommended unless situation dictates otherwise. Disking (flat pitch) is recommended to minimize FOD.
	4	  	Inertial separator	  	Recommended for ground operations to minimize FOD except for high power ground performance check.
	5	  	Deep cycling battery program	  	Per OEM recommendations.
	6	  	Single Engine run (if use)	  	Record abbreviated cycles
	7	  	Starting	  	 GPU is recommended.
 During start cycle, obtain max.
stabilized Ng speed prior fuel induction.

	8	  	Engine Cooldown	  	Two minutes at minimum obtainable ITT at Ground Idle prior to shutdown.

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	29

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX F - MISSION PROFILE AND OPERATING ENVIRONMENT 
  

	1.0	 	OPERATOR PROFILE 

  

	 	1.1	 	The Hourly Rate is based on the Operator Profile declared by Customer. Any modifications to the Operator Profile or changes in geographical or operating environment must be reported
promptly to P&WC and may result in an adjustment to the Hourly Rate referenced in this Agreement. 

  

	 	1.2	 	The Operator Profile under this Agreement is for Engines used in the regional airline flight profile submitted by Customer as indicated below and which are operated within the
limitations specified in the applicable section of the aircraft flight manual. 

  

	 	1.3	 	The Fleet under this Agreement shall consist of 60 installed Engines and two (2) spares as referenced in Annex “A”. 

  

	 	1.3.1	 	annual utilization of each engine module of 2047 Engine Operating Hours + /-5%; 

  

	 	1.3.2	 	annual average cycle ratio of 1.05 cycle/hour +/- 5%; 

  

	 	1.3.3	 	Overhaul interval achieved at 12,000 cycles for gas generator and power section modules; 

  

	 	1.3.4	 	HSI initial interval set at 6,000 cycles for the hot section, interval subject to adjustment based on ETCM® and borescope inspection results. 

  

	2.0	 	OPERATING ENVIRONMENT 

  

							
	 Hub:
	  	 Cheyenne, WY
	  	 Route Structure:
	  	 Mid-West, USA
 South-West, USA

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	30

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX G - MONTHLY REPORT FORM 
  
 TCP® Agreement Number: 03-1907    Report for the month of: Date 
  
 INSTALLED ENGINES AT MONTHS END 
  

																													
	 Aircraft Information

	  	Engine Status at month end

	  	 	  	Engine Monthly
Utilisation

	 A/C
Tail #

	  	A/C
S/N

	  	A/C
Hours
this
month

	  	A/C
Cycles
this
month

	  	Engine
Position

	  	Engine
S/N

	  	TSN
Month
end

	  	CSN
Month
End

	  	TSO

	  	TCSO

	  	TSHSI

	  	CSHSI

	  	or

	  	EFH
Flown
This
Month

	  	Cycles
this
Month

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	Total for
Fleet	  	Note: When reporting for the first time please complete all fields	  	 	  	Total for
Active
	 	  	 	  	Hours	  	Cycles	  	TSN & CSN mandatory for following months	  	 	  	Hours	  	Cycles
	 	  	 	  	0	  	0	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	0	  	0

  
 REMOVAL & INSTALLATION - ENGINE
ACTIVITY THIS MONTH 
  

																							
	A/C
Tail
#	  	A/C
S/N

	  	Engine
S/N

	  	Engine
Position

	  	Remove

	  	Installed

	  	Date

	  	TSN
remove or
Install

	  	CSN
remove or
Install

	  	Cause
for
Removal

	  	EFH this
month
removed
engine

	  	Cycles this
month
removed
engine

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	Note: Please check appropriate column “Removed” or “Installed” and complete required information	  	Total for
Removed
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	Hours	  	Cycles
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	0	  	0

  
 SPARE ENGINE STATUS 

 

															
	 Engine S/N

	 	 TSN

	 	 CSN

	  	TSO

	  	TCSO

	  	TSHSI

	  	CSHSI

	  	Location

	 	 	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	  	 	  	 	  	 	  	 	  	 

  

	
	 Signature:

	 Date:

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	31

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX H - WIRE TRANSFER INSTRUCTIONS 
  
 In the event that a wire transfer requires to be made, please instruct your bank to pay as
follows for payments crediting our account at the Bank of Montreal in Canada. 
  
 US DOLLAR PAYMENT ROUTING - INTERNATIONAL AND CANADIAN CUSTOMER 
  

					
	 Pay through:
	 	 Bank of Montreal
	 	 
	 	 	 International Banking, Head Office
	 	 
	 	 	 Montreal, Quebec
	 	 
	 	 	 Swift Address:
	 	 XXXXX1

			
	 Account with Institution:
	 	 BANK OF MONTREAL
	 	 
	 	 	 Rue St-Charles Ouest,
	 	 
	 	 	 Longueuil, Quebec
	 	 
	 	 	 Branch Transit Number:
	 	 XXXXX1

			
	 Beneficiary:
	 	 Pratt & Whitney Canada Corp.
	 	 
	 	 	 Longueuil, Quebec, Canada
	 	 

  
 US DOLLAR PAYMENT ROUTING - US
CUSTOMER (ONLY) 
  

					
	 Pay through:
	 	 Harris Bank International Corporation, New York, N.Y

	 (Destination Bank)
	 	 Swift Code:
	 	 XXXXX1

	 	 	 FEDWIRE ABA #:
	 	 XXXXX1

	 	 	 Or, CHIPS Participant ABA #:
	 	 XXXXX1

			
	 Beneficiary’s Bank
	 	 Bank of Montreal
	 	 
	 	 	 International Banking H.O. Montreal

	 	 	 Swift Code:
	 	 XXXXX1

	 	 	 Account Number:
	 	 XXXXX1

	 	 	 Or, CHIPS UID:
	 	 XXXXX1

	 	 	 (if CHIPS Network used)
	 	 
			
	 Beneficiary:
	 	 XXXXX1
	 	 
	 	 	 Pratt & Whitney Canada Corp.
	 	 
	 	 	 Longueuil, Quebec, Canada
	 	 

  

	NOTE:	 	PLEASE INCLUDE ALL INVOICE NUMBERS ON WIRE TRANSFERS AND FAX ALL PAYMENT DETAILS TO (450) 647- 7227. 

	1	 	Material omitted pursuant to a request for confidential treatment. Omitted material has been filed separately. 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	32

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX I – DAC SERVICES 
  

	1.	 	P&WC agrees to: 

  

	 	a)	 	provide access to the TurbineTrackerTM system for review of fleet data; 

  

	 	b)	 	provide User and Maintainer On-The-Job-Training (OJT). Training will also be available via CD-ROM and DAC’s facility; 

  

	 	c)	 	have the data received from TurbineTrackerTM analyzed at P&WC’s approved DAC; 

  

	 	d)	 	have the DAC provide to the Customer recommendations based on data received; and 

  

	 	e)	 	provide to Customer through the DAC, a regular report outlining fleet condition status. 

  

	2.	 	CUSTOMER agrees to: 

  

	 	a)	 	on a weekly basis, provide manual data to the DAC. Should Customer fail to provide the data, Customer’s Hourly Rate will be subject to a 5% upward rate adjustment; and

  

	 	b)	 	be registered with the P&WC approved DAC and act upon recommendation(s) received from the DAC and / or P&WC based on trend shift(s) and/or other usage information.

  
 The Parties acknowledge that the foregoing
Annex I is subject to the provisions of Section 11.0 hereof. 
  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	33

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 ANNEX J- WARRANTY 
  

	1.	 	P&WC warrants that Engine Overhaul and Repair services will comply with applicable P&WC specifications and conform generally with standards of good workmanship in the
industry. P&WC further warrants that, at time of delivery, new and used serviceable replacement parts will be free from defects in material and manufacture. Details concerning this warranty are found below. 

  

	 	1.1	 	Exclusive Remedy 

  
 P&WC will provide the following remedy in the event of an unplanned engine removal that results from defects in the parts or services provided, and,
that occurs within the applicable period of warranty coverage: 
  

	 	•	Correct the defective condition and any damage to the engine resulting from that condition; 

  

	 	•	Reimburse reasonable removal and installation charges; 

  

	 	•	Reimburse reasonable shipping charges; 

  

	 	•	Waive the daily rate applicable to any P&WC rental engine leased to replace the Customer’s damaged engine (normal hourly operating charges will still apply).

  

	 	1.2	 	Coverage Periods 

  
  
 All warranty claims must be made within the maximum operating hours after delivery and the maximum time after delivery as
indicated in the table below. During this time, warranty coverage is fully transferable to another lawful commercial operators of the aircraft. 
  

					
	 Category of Engine Work

	 	 Operating Hours

	 	 Time after
 Delivery

	 Engine Overhaul
 (Comprehensive Coverage)
	 	1,000 hours	 	1 year
	 Engine Overhaul
 (Workmanship Coverage)
	 	Full TBO (prorated after 1,000 hrs)	 	No Limit
	Tested Engine Repairs	 	500 hours	 	1 year
	 Untested Engine Repairs
 (including HSI)
	 	500 hours	 	90 Days

  

	 	1.3	 	Two separate levels of warranty coverage are provided with respect to engine overhaul work: i) the Comprehensive coverage, and ii) the Full TBO Workmanship coverage.

  
 Comprehensive Warranty Coverage. The
comprehensive warranty coverage remains in effect from the time of delivery for 1,000 operating hours or 1 year, whichever sooner occurs. During this time, the Customer enjoys full coverage against the malfunction or failure of the engine for causes
other than those provided in the Exclusions and Limitations section below. This coverage extends not only to defects in material and workmanship, but also to the failure of component engine parts that are inspected and replaced at Overhaul. This
coverage also extends to Customer-supplied parts, but only if those parts are either in new condition, or are accompanied by a Pratt & Whitney Canada Service Centre Network overhaul tag. 
  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	34

 EXHIBIT 10.26 - CONFIDENTIAL TREATMENT 
  
 Great Lakes Aviation 
 PTA-67D TCP® # 03-1907 

  

 Full TBO Workmanship. After the expiration of the comprehensive coverage, the workmanship
coverage remains in effect on a prorated basis until the conclusion of the TBO interval, as published from time to time by P&WC. During this time, the Customer is protected against defects in workmanship in the Overhaul Services performed by a
Pratt & Whitney Canada Service Centre. The Customer will be assessed a prorated portion of the cost of Repair and incidental charges. The applicable assessment is based on the percentage of the remaining TBO consumed at the time of the warranty
claim. The operation of the workmanship warranty is illustrated in the chart below: 
  

	 	1.4	 	COMMERCIAL OVERHAUL WARRANTY COVERAGE 

  
 [GRAPHIC APPEARS HERE] 
  

	 	1.5	 	Exclusions and Limitations 

  
 Pratt & Whitney Canada Service Centres’ warranties described above will be void in the following circumstances: 
  

	 	14.6.1	 	If the engine is subjected to improper preservation, storage, installation, operation, or maintenance; 

  

	 	14.6.2	 	If the engine has been operated or maintained in a manner not in compliance with the instructions of P&WC or the aircraft manufacturer; 

  

	 	14.6.3	 	If the engine has been subjected to abuse, misuse, or neglect, or has been damaged by foreign object, electrical arcing, corrosion, erosion, accident, or any other factor not within
the control of P&WC; or, 

  

	 	14.6.4	 	If the engine has been repaired or altered at any facility other than those of the Pratt & Whitney Canada Service Centre Network. 

  

			
	 The disclosure of this document is subject to the restrictions of Article 14.0 contained herein
	  	35Group A Engine Overhaul Note executed on December 31, 2003

 EXHIBIT 10.27 
  
 RACC 
 GROUP A ENGINE OVERHAUL NOTE

  

  
 Raytheon Aircraft Credit Corporation 
  

  
 1. Restructuring Agreement.
Reference is hereby made to (i) that certain Restructuring Agreement (as amended and in effect from time to time, the “Restructuring Agreement”), dated as of December 31, 2002, by and between Great Lakes Aviation, Ltd., an Iowa
corporation (the “Debtor”), and Raytheon Aircraft Credit Corporation, a Kansas corporation (“RACC”) and (ii) that certain forbearance extension letter dated as of December 11, 2003 (the “Forbearance Letter”), by and
between the Debtor and RACC. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Restructuring Agreement. 
  
 2. Promise to Pay. FOR VALUE RECEIVED, the undersigned hereby absolutely and unconditionally promises to pay to the order of RACC, at its
place of business at 101 S. Webb Street, Suite 300, Wichita, Kansas 67207 (together with its successors and assigns hereinafter referred to as “RACC”), in lawful money of the United States of America and in immediately available funds, the
principal sum of TWO MILLION TWO HUNDRED AND FIFTY THOUSAND DOLLARS ($2,250,000.00) (as such amount may be adjusted in accordance with the provisions of Section 3 of the Forbearance Letter, the “Principal Sum”). All payments made pursuant
to this promissory note (this “Promissory Note”) will be made free and clear of, and without deduction for, withholding, setoff, recoupment or counterclaim of any kind. 
  
 3. Interest Rate. In addition to Debtor’s payment of the Principal Sum, Debtor shall pay interest to RACC on the
outstanding Principal Sum at the rate per annum equal to LIBOR plus four hundred (400) basis points. Interest on this Promissory Note shall be payable in cash monthly in arrears commencing on the earlier of: (1) last day of the month during which
the final Group A Aircraft is returned to RACC pursuant to paragraph 3 of the Forbearance Letter (the “Repayment Commencement Date”) or (2) April 30, 2004. The annual rate of interest applicable hereunder from time to time, as specified
above, is referred to herein as the “Interest Rate.” All interest shall be calculated on the basis of a 360-day year and actual days outstanding. Notwithstanding anything set forth in this Promissory Note to the contrary, in 

 no event shall the rate of interest payable pursuant to this Section 3 be higher than the maximum amount permitted under
applicable law. “LIBOR” shall mean the rate of interest determined by RACC at which Dollar deposits for ninety (90) days are offered based on information provided in The Wall Street Journal on the second business day prior to the
date of the issuance of this Promissory Note or the first day of January, April, July and October, as applicable, provided, however, that if the rate described above does not appear in The Wall Street Journal on any applicable interest
determination date, LIBOR shall be the rate determined by RACC in good faith based on the offered rates for deposits in Dollars for ninety (90) days that are then offered by major banks in the London interbank market. LIBOR shall be adjusted on the
first business day of each calendar quarter to reflect any increase or decrease in LIBOR as of that date. 
  
 4. Late Payment Charge. While an Event of Default (as defined below) is continuing, Debtor agrees to pay to RACC interest on the unpaid principal
balance hereunder or other amounts payable hereunder (compounded monthly and payable on demand in respect of overdue amounts) at a rate per annum which is equal to LIBOR plus six hundred basis points (the “Default Interest Rate”) until
such Event of Default has been cured or waived in writing by RACC (after as well as before judgment). 
  
 5. Repayment. The Principal Sum shall be paid to RACC in sixty (60) equal monthly payments at the end of each month commencing on the earlier of :
(1) the last day of the month during which the final Group A Aircraft is returned to RACC pursuant to paragraph 3 of the Forbearance Letter (the “Repayment Commencement Date”) or (2) April 30, 2004, provided, however, that in the event
that the Principal Sum is adjusted in accordance with Section 3 of the Forbearance Letter, the remaining monthly payments after such adjustment shall be adjusted accordingly on an equal basis. All amounts of principal and interest not repaid by
Debtor prior to the last day of the month that is sixty (60) months after the Repayment Commencement Date (the “Due Date”) shall be paid in full on the Due Date. 
  
 6. Taxes. All payments (whether of principal, interest or otherwise) made by Debtor to RACC pursuant to this
Promissory Note will be free and clear of and without deduction for any taxes, levies, duties, charges, fees or withholdings of any nature, provided, however, that taxes based on the net income of RACC are specifically excluded from the provisions
of this Section 6. If Debtor is required by law to make any such deduction or withholding, the sum due from Debtor will be increased to the extent necessary to ensure that RACC receives a sum equal to what it would have received had no such
deduction or withholding been required. Within thirty (30) days after Debtor has made any payment from which it is required by law to make any deduction or withholding, Debtor will deliver to RACC a receipt issued by the applicable tax or other
authority evidencing the deduction or withholding. 
  

 2 

 7. Prepayment. The Debtor may prepay this obligation in part or in full at any time without any
premium or penalty. Any partial prepayment shall be applied to the installments of principal in inverse order of maturity and in accordance with Section 11(C) of the Restructuring Agreement. 
  
 8. Covenants. Debtor covenants and agrees that, until the payment and
satisfaction in full of all the obligations of and amounts owed by Debtor under this Promissory Note, Debtor will: 
  
 (a) furnish RACC with such financial information with respect to Debtor or the collateral described in the Security Agreements and in
Section 13 of the Restructuring Agreement (the “Collateral”) as RACC may reasonably request; 
  
 (b) keep true and accurate books of account with respect to the Collateral and to permit RACC or its designated representatives to inspect
the Collateral and the Aircraft and to examine and be advised as to such records upon the request of RACC; 
  
 (c) comply with any law, treaty, rule, regulation or determination of an arbitrator, court, or other governmental authority, in each case
applicable to or binding upon Debtor or affecting any of its property; 
  
 (d) notify RACC promptly in writing of (i) the occurrence of any Default or Event of Default, (ii) any change of name or address of Debtor, (iii) any threatened or pending litigation or similar proceeding affecting
Debtor or any material change in any such litigation or proceeding previously reported and (iv) any claims of any nature against the Collateral or the Aircraft; and 
  
 (e) cooperate with RACC, take such action, execute such documents, and provide such information as RACC may
from time to time request in order further to effect the transactions contemplated by and the purposes of this Promissory Note and the other Transaction Documents. 
  
 9. Security Agreement. The payment and performance of all of the Obligations due RACC by Debtor under this Promissory
Note, and any renewals, extensions or changes hereof, including all such Obligations that would become due but for the operation of the automatic stay pursuant to section 362(a) of the Federal Bankruptcy Code and the operation of sections 502(b) and
506(b) of the Federal Bankruptcy Code and including, without limitation, post-petition interest (collectively, the “Obligations”), shall be secured by the Corporate Security Documents, the Group B Security Documents and any other
collateral security now or hereafter granted to RACC by the Debtor. 
  

 3 

 10. Purpose of Loan; Usury. Debtor warrants and represents to RACC that this loan is for business
and commercial purposes and not for personal, family, household or agricultural purposes. It is agreed, notwithstanding any provision to the contrary in any of the Transaction Documents, in no event will this Promissory Note require the payment of
interest or charges in excess of the maximum amount permitted by applicable law (the “Maximum Rate”) and the payment of obligations of Debtor under this Promissory Note are hereby limited accordingly. If under any circumstances, whether by
reason of advancement or acceleration of the maturity of the unpaid principal balance hereof or otherwise, the aggregate amounts paid on this Promissory Note shall include amounts which by law are deemed interest and would exceed the Maximum Rate,
Debtor stipulates that payment and collection of such excess amounts shall have been and will be deemed to have been the result of a mistake on the part of both Debtor and RACC, and RACC shall promptly credit such excess (to the extent only of such
payments in excess of the Maximum Rate) against the unpaid principal balance hereof and any portion of such excess payments not capable of being so credited shall be refunded to Debtor. 
  
 11. Waiver. The Debtor hereby waives presentment, demand for payment, notice of non-payment, notice of dishonor, and
all other notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Promissory Note, protest and impairment of collateral, as well as diligence in collecting this Promissory Note or enforcing any of
the security therefor, and consents to all extensions, deferrals, partial payments and refinancings hereof before or after maturity. 
  
 12. Events of Default; Acceleration. If any of the following events (each an “Event of Default”) shall occur: 
  
 (a) Debtor shall fail to pay any principal of interest on
this Promissory Note or any other sum due under this Promissory Note, any Transaction Document, or any other note or other agreement between Debtor and RACC whether the same becomes due and such failure shall continue for ten (10) days beyond the
due date of such payment; 
  
 (b) Debtor shall
fail to perform any term, covenant or agreement contained in any of the Transaction Documents and such failure shall continue for thirty (30) days after written notice; 
  
 (c) any representation or warranty of Debtor in any of the Transaction Documents or in any certificate or
notice given in connection therewith shall have been false or misleading in any material respect at the time made or deemed to have been made; 
  

 4 

 (d) Debtor shall be in default under any agreement or agreements evidencing (i) any other
debt and similar monetary obligations (including, without limitation, capitalized leases, synthetic leases or securitization transactions) (collectively, “Indebtedness”) owing to RACC or any of its affiliates, or (ii) any other
Indebtedness in excess of $100,000.00 in aggregate principal amount, or shall fail to pay any such Indebtedness when due or within any applicable period of grace; 
  
 (e) any of the Transaction Documents shall cease to be in full force and effect; 
  
 (f) Debtor (i) shall make an assignment for the benefit of
creditors; (ii) shall be adjudicated bankrupt or insolvent; (iii) shall seek the appointment of, or be the subject of an order appointing, a trustee, liquidator or receiver as to all or part of its assets, (iv) shall commence, approve or consent to,
any case or proceeding under any bankruptcy, reorganization or similar law and, in the case of an involuntary case or proceeding, such ease or proceeding is not dismissed within forty-five (45) days following the commencement thereof, or (v) shall
be the subject of an order for relief in an involuntary case under federal bankruptcy law; 
  
 (g) Debtor shall be unable to pay its debts as they mature; 
  
 (h) there shall remain undischarged for more than thirty (30) days any final judgment or execution action
against Debtor that, together with other outstanding claims and execution actions against Debtor, respectively, exceeds $100,000.00 in the aggregate; 
  
 (i) to the extent not covered by insurance, any of the Aircraft shall have been lost, stolen or confiscated or shall have incurred
substantial damage or have been destroyed to such an extent that the repair thereof is impracticable (as determined solely by RACC); or 
  
 j) Debtor (i) sells, transfers or disposes of all or substantially all of its respective stock, assets or property, (ii) becomes the
subject of, or engages in, a leveraged buy-out, or (iii) terminates its existence by merger, reorganization or consolidation. 
  
 THEN, or at any time thereafter: 
  
 (1) In the case of any Event of Default under clauses (f) or (g), the entire unpaid principal amount of this Promissory Note and all other
amounts payable hereunder shall automatically become forthwith due and payable, without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by Debtor; and 
  

 5 

 (2) In the case of any Event of Default other than under clauses (f) or (g), RACC may, by
written notice to Debtor, declare the unpaid principal amount of this Promissory Note and all other amounts payable hereunder, to be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are
hereby expressly waived by Debtor. 
  
 In addition to and without
in any way limiting the foregoing, upon the occurrence of an Event of Default or at any time thereafter, RACC may employ all remedies allowed by law, including, without limitation, those available to a secured party under the Uniform Commercial
Code. No remedy herein conferred upon RACC is intended to be exclusive of any other remedy and each and every remedy shall be cumulative and in addition to every other remedy hereunder, now or hereafter existing at law or in equity or otherwise.

  
 13. Obligations Absolute. Debtor’s payment and
performance obligations under this Promissory Note and the other Transaction Documents are absolute and unconditional. Any claim that Debtor may now or hereafter have against RACC or any affiliate thereof arising out of or in connection with the
Aircraft, any of the other Collateral or any other matter shall not affect or excuse the unconditional obligation of Debtor to make any payment required to be made to RACC under the Transaction Documents, and shall not be used or asserted as a
defense to payment of such obligation or as set-off, counterclaim or deduction against such payment. RACC shall have no obligation or responsibility with respect to any dispute that may arise between Debtor and any such foregoing person, and no such
dispute shall prevent RACC from taking such action as it may deem appropriate in order to preserve, protect or enforce its rights hereunder. 
  
 14. Debtor’s Agreement to Pay Enforcement Costs, Etc. Debtor further agrees to pay to RACC, on demand, all costs and expenses (including court
costs and legal expenses) incurred or expended by RACC in connection with the Obligations, this Promissory Note and the enforcement hereof, together with interest on amounts recoverable under this Section 14 from the time when such amounts become
due until payment, whether before or after judgment, at the Default Interest Rate, provided that if such interest exceeds the maximum amount permitted to be paid under applicable law, then such interest shall be reduced to such maximum permitted
amount. 
  
 15. Waiver of Default. No waiver by RACC of any
default shall be effective unless in writing, nor operate as a waiver of any other default or of the same default in the future. 
  

 6 

 16. Change of Address. Debtor will notify RACC in writing of any change of address from that shown
herein within ten (10) days of such change. 
  
 17. GOVERNING
LAW AND CHOICE OF FORUM. THIS PROMISSORY NOTE WAS MADE AND ENTERED INTO IN THE STATE OF KANSAS AND THE LAW GOVERNING THIS TRANSACTION SHALL BE THAT OF THE STATE OF KANSAS AS IT MAY FROM TIME TO TIME EXIST. THE PARTIES AGREE THAT ANY LEGAL PROCEEDING
BASED UPON THE PROVISIONS OF THIS PROMISSORY NOTE SHALL BE BROUGHT EXCLUSIVELY IN EITHER THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS AT WICHITA, KANSAS, OR IN THE EIGHTEENTH JUDICIAL DISTRICT COURT OF SEDGWICK COUNTY, KANSAS, TO THE
EXCLUSION OF ALL OTHER COURTS AND TRIBUNALS. NOTWITHSTANDING THE ABOVE, IN THE EVENT AN EVENT OF DEFAULT SHOULD OCCUR, RACC (AT ITS SOLE OPTION) MAY INSTITUTE LEGAL PROCEEDINGS IN ANY JURISDICTION AS MAY BE APPROPRIATE IN ORDER FOR RACC TO OBTAIN
POSSESSION OF THE COLLATERAL OR OTHERWISE REALIZE UPON ITS SECURITY. THE PARTIES HEREBY CONSENT AND AGREE TO E SUBJECT TO THE JURISDICTION OF THE AFORESAID COURTS IN SUCH PROCEEDINGS. 
  
 18. WAIVER OF RIGHT TO JURY TRIAL. ALL PARTIES TO THIS AGREEMENT HEREBY VOLUNTARILY, KNOWINGLY AND IRREVOCABLY WAIVE ANY
CONSTITUTIONAL OR OTHER RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN THE EVENT OF LITIGATION CONCERNING THIS PROMISSORY NOTE. 
  
 19. Damages. To the extent that any party hereto is subject to liability for any breach under this Promissory Note, the liability of such party
shall be limited to the actual and direct monetary damages caused by such breach. In no event shall any party hereto be liable for indirect, special, consequential, multiple or punitive damages, or any damage deemed to be of an indirect or
consequential nature arising out of or related to its performance hereunder, whether based upon breach of contract, warranty, negligence and whether grounded in tort, contract, civil law or other theories of liability, including strict liability. To
the extent that this limitation of liability conflicts with any other provision(s) in this Promissory Note, said provision(s) shall be regarded as amended to whatever extent required to make such provision(s) consistent with this Section 19.

  
 20. Enforceability. The unenforceability of any
provision hereof shall not affect the validity of any other provision hereof. 
  
 21. Binding Agreement. All obligations of Debtor hereunder shall bind the heirs, agents and attorneys-in-fact, successors and assigns of Debtor. 
  

 7 

 All rights of RACC hereunder shall inure to the benefit of its successors and assigns. 
  
 22. Assignment. RACC may transfer or assign all or any part of its
interest in this Promissory Note without the consent of Debtor or any other party. Debtor shall not sell, assign, transfer, encumber or convey any of its interests in the Collateral or in this Promissory Note without the prior written consent of
RACC. 
  
 23. Entire Agreement. The Transaction Documents
constitute the entire agreement between and among the parties with respect to the subject matter hereof. There are no verbal understandings, agreements, representations or warranties not expressly set forth herein. This Promissory Note shall not be
changed orally, but only by writing signed by the parties hereto. 
  
 (The remainder of this page is intentionally left blank.] 
  

 8 

 DEBTOR HEREIN ACKNOWLEDGES THAT IT HAS READ AND FULLY UNDERSTANDS ALL OF THE TERMS AND CONDITIONS OF THIS PROMISSORY
NOTE. BY EXECUT1ON HEREOF, THE UNDERSIGNED HEREBY CERTIFIES THAT HE/SHE IS DULY AUTHORIZED TO EXECUTE THIS PROMISSORY NOTE IN THE CAPACITY STATED BELOW. 
  
 Executed this 31st day of December, 2003. 
  

							
	 Debtor:
	 	 Great Lakes Aviation, Ltd.

			
	 	 	 /s/ Charles R. Howell, IV

	 	 CEO

	 	 	 (signature)
	 	 (title)

		
	 Address:
	 	 1022 Airport Parkway

	 	 	 Cheyenne, Wyoming 82001

  

 9

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