Document:

exhibit10_62g.htm

    
       

      
        	
                EXHIBIT
      10.62(g)

              

      

       

    

     

     

    INVESTMENT
AGREEMENT

     

    This
Investment Agreement (this “Agreement”) is made
as of June 23, 2009, by and among TPG Midwest US V, LLC and TPG Midwest
International V, LLC (each, a “Purchaser” and,
together, the “Purchasers”), and
Republic Airways Holdings Inc., a Delaware corporation (the “Company”).

     

    WHEREAS,
each of the Purchasers and the Company is a “Lender” (including under any
related promissory note) under the Amended and Restated Senior Secured Credit
Agreement (the “Credit
Agreement”), dated as of September 3, 2008, among Midwest Airlines, Inc.,
a Wisconsin corporation (“Midwest”), Midwest
Air Group, a Wisconsin corporation (“MAG”), each of the
subsidiaries of Midwest from time to time party thereto, each of the Purchasers,
the Company, Wells Fargo Bank Northwest, National Association, as administrative
agent and as collateral agent, as amended by Amendment No. 1 to Amended and
Restated Credit Agreement, dated as of October 28, 2008, Amendment No. 2 to
Amended and Restated Credit Agreement, dated as of January 28, 2009 and
Amendment No. 3 to Amended and Restated Credit Agreement, dated as of June 2,
2009, and as further amended, modified or supplemented from time to
time;

     

    WHEREAS,
the Purchasers desire to assign to the Company, and the Company desires to
acquire from the Purchasers, all of the Purchasers’ rights and obligations in
their capacities as “Lenders” under the Credit Agreement; and

     

    WHEREAS,
concurrently with the execution of this Agreement, the Company, Midwest Air
Group, Inc., a Wisconsin corporation (“MAG”), and RJET
Acquisition, Inc., a Delaware corporation and a wholly owned subsidiary of the
Company, are entering into an Agreement and Plan of Merger, dated as of the date
hereof (the “Merger
Agreement”), pursuant to which, and on the terms and subject to the
conditions of which, the Company will acquire MAG.

     

    NOW,
THEREFORE, in consideration of the foregoing and the respective representations,
warranties, mutual covenants and agreements set forth herein, the parties hereto
agree as follows:

     

    SECTION
1. TRANSACTIONS;
CLOSING

     

      1.1 Agreement to Purchase and
Sell.  Upon
the basis of the representations, warranties and covenants, and on the terms and
subject to the conditions set forth in this Agreement, at the Closing (as
defined below), the Purchasers shall assign to the Company, pursuant to Section
12.07(b) of the Credit Agreement, all of each Purchaser’s rights and obligations
in its capacity as a “Lender” under the Credit Agreement, in exchange
for:

     

    (a)  an
amount in cash equal to the sum of (i) Six Million Dollars ($6,000,000.00), plus
(ii) accrued and unpaid interest through the Closing Date (as defined below) on
the Term Loans extended by the Purchasers under the Credit Agreement, plus (iii)
any Cure Payments (as defined in the Agreement, dated as of June 2, 2009 (the
“Indemnity Agreement”), among
the Company, TPG Partners V, L.P. (“TPG Fund”) and each
of the Purchasers) for which TPG Fund has indemnified the Company, and actually
paid, under the Indemnity Agreement (the sum of clauses (i), (ii) and (iii), the
“Cash Consideration”);
and

     

    (b) a
convertible note issued by the Company, having a principal amount of Twenty-Five
Million Dollars ($25,000,000.00), in the form attached as Annex A hereto (the
“Convertible
Note”).

     

            1.2 Closing.  The
closing (the “Closing”) of the
transactions contemplated by this Agreement shall be held at the offices of
Skadden, Arps, Slate, Meagher & Flom LLP, 300 South Grand Avenue, Suite
3400, Los Angeles, California 90071, concurrently with the closing of the
transactions contemplated by the Merger Agreement (the date of the Closing under
this Agreement is hereinafter referred to as the “Closing
Date”).

     

            1.3 Deliverables.  At
the Closing:

     

    (a) the
Purchasers shall deliver or cause to be delivered to the Company:

     

                    (i) an
Assignment and Assumption, substantially in the form of Exhibit C to the Credit
Agreement, duly executed by the Purchasers and the Company, evidencing the
assignment of all of each Purchaser’s rights and obligations in its capacity as
a “Lender” under the Credit Agreement to the Company, and the assumption by the
Company of all of each Purchaser’s rights and obligations in its capacity as a
“Lender” under the Credit Agreement;

     

                    (ii) a copy of
the letter agreement attached as Annex B hereto,
executed by the Purchasers and TPG Fund, terminating the Indemnity Agreement;
and

     

                    (iii) a
resignation of Midwest Air Partners, LLC as a manager of Midwest SPV (as defined
in Section 4.3
hereof).

     

    (b) the
Company shall deliver or cause to be delivered to the Purchasers:

     

                    (i) the Cash
Consideration, by wire transfer of immediately available funds to an account
designated by the Purchasers,

     

                    (ii) the
Convertible Note executed by the Company, and

     

                    (iii) a copy of
the letter agreement attached as Annex B hereto,
executed by the Company, terminating the Indemnity Agreement.

     

    SECTION
2. REPRESENTATIONS AND
WARRANTIES OF
THE COMPANY

     

    Except as
set forth in the Company’s required reports, proxy statements, forms, and other
documents filed with the Securities and Exchange Commission (the “SEC”) since January
1, 2006 (excluding, in each case, any disclosures set forth in any “forward
looking statements” within the meaning of the Securities Act of 1933, as amended
(the “Securities
Act”), or the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or in
the correspondingly identified schedule attached hereto, the Company hereby
represents and warrants to the Purchasers, as of the Closing Date (except to the
extent expressly made only as of a specified date in which case as of such
date), as follows:

     

    2.1 Incorporation and
Organization.  The
Company (a) is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware; (b) has the requisite
corporate power and authority to conduct, operate and carry on its business and
operations as currently conducted, and to manage, use, control, own, lease and
operate its properties and assets; and (c) is duly qualified or licensed to do
business as a foreign corporation and is in good standing in every jurisdiction
in which such qualification or licensing is required, except where the failure
to be so qualified or licensed and in good standing, individually or in the
aggregate, would not reasonably be expected to have a material adverse effect on
the business, condition (financial or otherwise), operations, assets or
liabilities of the Company and its subsidiaries, taken as a whole (a “Material Adverse
Effect”).

     

    2.2 Issuance and Delivery of
the Convertible
Note.  The
Convertible Note has been duly authorized and executed by the Company and, when
issued and delivered to and paid for by the Purchasers in accordance with the
terms of this Agreement, (a) shall be free and clear of all liens, security
interests, options, claims, encumbrances and restrictions (collectively, “Liens”), (b) assuming
accuracy of the Purchasers’ representations in Section 3.3 hereof,
shall have been issued in compliance with all applicable federal and state
securities laws and (c) shall be a valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, subject, as to
enforcement, to (i) applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and (ii) general principles of
equity.  The shares of the Company’s common stock, par value $.001 per
share (“Common
Stock”), issuable upon conversion of the Convertible Note (the “Conversion Shares”)
have been duly authorized and reserved for issuance and, when issued upon
conversion of the Convertible Note in accordance with the terms thereof, will be
validly issued, fully paid and nonassessable, and not subject to any preemptive
or similar rights.

     

    2.3 Capital
Structure.  The
authorized capital stock of the Company consists of 150,000,000 shares of Common
Stock, and 5,000,000 shares of preferred stock, par value $.001 per share
(“Preferred
Stock”)  As of June 1, 2009, (i) 34,448,683 shares of Common
Stock were issued and outstanding (not including 9,332,433 shares of Common
Stock held in treasury), and no shares of Preferred Stock were issued and
outstanding, and (ii) 4,845,271 shares of Common Stock were reserved for
issuance upon exercise of outstanding options to purchase shares of Common Stock
and 2,334,729 shares of Common Stock reserved for future issuance under the
Company’s existing stock plans.  There are no outstanding securities,
options, warrants, calls, rights, contracts, commitments, agreements,
arrangements or understandings to which the Company or any of its subsidiaries
is a party, or by which any of them is bound, obligating the Company or any of
its subsidiaries to issue, deliver or sell, or cause to be issued, delivered or
sold, shares of capital stock or other securities of the Company or any of its
subsidiaries, or any securities convertible into or exercisable or exchangeable
for any shares of capital stock or other securities of the Company or any of its
subsidiaries, or obligating the Company or any of its subsidiaries to issue,
grant, extend or enter into any such security, option, warrant, call, right,
contract, commitment, agreement, arrangement or understanding.  There
are no contracts, commitments, agreements, arrangements or understandings to
which the Company or any of its subsidiaries is a party, or by which any of them
is bound, granting to any person the right to require the Company to file a
registration statement under the Securities Act with respect to any securities
of the Company or requiring the Company to include such securities with the
Conversion Shares registered pursuant to any registration
statement.

     

    2.4 Subsidiaries.  Each
of the subsidiaries of the Company (a) is duly organized, validly existing and
in good standing under the laws of its jurisdiction of organization; (b) has the
requisite power and authority to conduct, operate and carry on its business and
operations as currently conducted, and to manage, use, control, own, lease and
operate its properties and assets; and (c) is duly qualified or licensed to do
business and is in good standing in every jurisdiction in which such
qualification or licensing is required, except where the failure to be so
qualified or licensed and in good standing, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse
Effect.  All of the outstanding shares of capital stock of, other
securities of or other interests in, each of the Company’s subsidiaries are
owned by the Company, directly or indirectly through one or more of the
Company’s subsidiaries.

     

    2.5 Authorization; Validity of
Agreement; Company Action.  The
Company has the requisite corporate power and authority to execute and deliver
this Agreement, to perform its obligations under this Agreement and to
consummate the transactions contemplated by this Agreement.  The
execution and delivery by the Company of this Agreement and the consummation by
the Company of the transactions contemplated by this Agreement have been duly
authorized by, and this Agreement and each of the transactions contemplated by
this Agreement have been validly approved by, the requisite vote of the
Company’s Board of Directors (the “Board”).  No
other corporate action or proceeding on the part of the Company is necessary for
the execution and delivery by the Company of this Agreement, the performance by
the Company of its obligations under this Agreement or the consummation by the
Company of the transactions contemplated by the this Agreement.  This
Agreement has been duly executed and delivered by the Company and, assuming due
authorization, execution and delivery of this Agreement by the Purchasers, is a
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, subject, as to enforcement, to (a) applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws now or
hereinafter in effect affecting creditors’ rights generally and (b) general
principles of equity.

     

    2.6 Consents and
Approvals.  Assuming
the accuracy of the representations of the Purchasers set forth in Section 3 hereof, no
registration (including any registration under the Securities Act) or filing
with, or any notification to, or any approval, permission, consent,
ratification, waiver, authorization, order, finding of suitability, permit,
license, franchise, exemption, certification or similar instrument or document
(each, an “Authorization”) of or
from, any court, arbitral tribunal, arbitrator, administrative or regulatory
agency or commission or other governmental or regulatory authority, agency or
governing body, domestic or foreign, including any national securities exchange
or national quotation system (each, a “Governmental
Entity”), or any other person, or under any statute, law, ordinance,
rule, regulation or agency requirement of or listing agreement with any
Governmental Entity (each, a “Law”), on the part of
the Company or any of its subsidiaries is required in connection with the
execution or delivery by the Company of this Agreement, the performance by the
Company of its obligations under this Agreement or the consummation by the
Company of the transactions contemplated by this Agreement, except for such
filings as will be required to be made in connection with the consummation of
the transactions contemplated by the Merger Agreement and any additional listing
application that may be required in respect of the Conversion
Shares.

     

    2.7 No
Conflict.  The
execution and delivery by the Company of this Agreement does not, and the
performance by the Company of its obligations under this Agreement or the
consummation by the Company of any of the transactions contemplated by this
Agreement will not, (a) conflict with, or result in or constitute any violation
or breach of or default under, or give rise (either with or without due notice
or the passage of time or both or the happening or occurrence of any other event
(including through the action or inaction of any person)) to any right of
termination, amendment, cancellation or acceleration or any obligation to pay or
repay with respect to, or result in the loss of any benefit under, any provision
of (i) the certificate of incorporation, bylaws or similar organizational
documents of the Company or any of its subsidiaries or (ii) any indenture, loan
agreement, mortgage, guarantee, other indebtedness, lease or other agreement,
contract, instrument, obligation, understanding or arrangement to which the
Company or any of its subsidiaries is a party, or by which the Company or any of
its subsidiaries may be bound, or to which any of the respective properties or
assets of the Company or any of its subsidiaries may be subject; (b) conflict
with, or result in or constitute any violation of, any award, decision,
judgment, decree, injunction, writ, order, subpoena, ruling, verdict or
arbitration award entered, issued, made or rendered by any federal, state, local
or foreign government or any other Governmental Entity (each an “Order”), or any Law,
applicable to the Company or any of its subsidiaries, or to any of their
respective properties or assets; (c) result in the creation or imposition of (or
the obligation to create or impose) any Liens on any of the properties or assets
of the Company or any of its subsidiaries; or (d) conflict with, or result in or
constitute any violation of, or result in the termination, suspension or
revocation of, any Authorization applicable to the Company or any of its
subsidiaries, or to any of their respective properties or assets, or result in
any other impairment of the rights of the holder of any such Authorization,
except in the case of clauses (a)(ii), (b), (c) and (d), where such conflict,
violation, breach, default, termination, amendment, cancellation, acceleration,
obligation to repay or loss of benefit, individually or in the aggregate, would
not reasonably be expected to have a Material Adverse Effect.

     

    2.8 Authorizations; Compliance
with Law.  Each
of the Company and its subsidiaries has such Authorizations of, and has made all
registrations and filings with and notices to, all Governmental Entities as are
necessary to manage, use, control, own, lease and operate its properties and
assets and to conduct, operate and carry on its business and operations as
currently conducted, except where the failure to have any such Authorization or
to make any such registration, filing or notice, individually or in the
aggregate, would not reasonably be expected to have a Material Adverse Effect.
Each of the Company and its subsidiaries is in compliance with all Laws and
Orders applicable to the Company or any of its subsidiaries, or to any of their
respective properties or assets, or to any Shares, except where the failure to
be in compliance, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect.

     

    2.9 No
Solicitation.  Neither
the Company nor any of its subsidiaries or affiliates, nor any person acting on
its or their behalf, (a) has engaged in any form of general solicitation or
general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Convertible Note or (b) has,
directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security, under any circumstances that would require
registration of the Convertible Note under the Securities Act, nor will the
Company or any of its subsidiaries or affiliates take any action or steps that
would require registration of any of the Convertible Note under the Securities
Act.  Assuming the accuracy of the representations and warranties of
the Purchasers in Section 3 of this
Agreement, the offer and sale of the Convertible Note by the Company to the
Purchasers pursuant to this Agreement will be exempt from the registration
requirements of the Securities Act.

     

    2.10 Investment Company
Act.  The
Company is not and, after giving effect to the transactions contemplated by this
Agreement, will not be an “investment company” within the meaning of the
Investment Company Act of 1940, as amended.

     

    2.11 Sufficient
Funds.  The
Company has, and will have at the Closing, sufficient immediately available
funds in cash to pay the Cash Consideration and all costs and expenses incurred
by the Company in connection with the execution and delivery of this Agreement
and the transactions contemplated hereby, including fees of legal
counsel.

     

    SECTION
3. REPRESENTATIONS AND
WARRANTIES OF THE PURCHASERS

     

    The
Purchasers hereby, jointly and severally, represent and warrant to the Company,
as of the Closing Date, that:

     

    3.1 Authority.  Each
of the Purchasers has the requisite limited liability company power and
authority to execute and deliver this Agreement, to perform its obligations
under this Agreement and to consummate the transactions contemplated by this
Agreement.  Each of the Purchasers has taken all requisite action to,
and no other action or proceeding on the part of the Purchasers is necessary
for, the execution and delivery by the Purchasers of this Agreement, the
performance by the Purchasers of their obligations under this Agreement or the
consummation by the Purchasers of the transactions contemplated by this
Agreement.  This Agreement has been duly executed and delivered by the
Purchasers and, assuming due authorization, execution and delivery of this
Agreement by the Company, is a valid and binding obligation of the Purchasers
and is enforceable by the Company against the Purchasers in accordance with its
terms, subject, as to enforcement, to (a) applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws now or hereinafter in effect
affecting creditors’ rights generally and (b) general principles of
equity.

     

    3.2 Consents and
Approvals.  No
Authorization of or from any Governmental Entity or any other person on the part
of the Purchasers is required in connection with the execution or delivery by
the Purchasers of this Agreement, the performance by the Purchasers of their
obligations under this Agreement or consummation by the Purchasers of the
transactions contemplated by this Agreement.

     

    3.3 Ownership of Securities;
Purpose of
Investment.  The
Purchasers are acquiring the Convertible Note and the Conversion Shares solely
for the purpose of investment and not with a view to, or for sale in connection
with, any distribution thereof in violation of the Securities Act and applicable
state securities or “blue sky laws.”  Each Purchaser is an “accredited
investor” as such term is defined in Regulation D of the Securities
Act.  Each Purchaser has sufficient knowledge and experience in
financial and business matters so as to be capable of evaluating the merits and
risks of its investment in the Convertible Note and the Conversion Shares, and
each Purchaser is capable of bearing the economic risks of such investment,
including a complete loss of its investment.  Each Purchaser has been
given the opportunity to ask questions of and receive answers from the Company
regarding the Company, the Convertible Note, the Conversion Shares and other
related matters.  Each Purchaser has been furnished with all
information it deems necessary or desirable to evaluate the merits and risks of
the acquisition of the Convertible Note and the Conversion Shares and that the
Company has made available to the Purchasers or its agents all documents and
information relating to an investment in the Convertible Note and the Conversion
Shares requested by or on behalf of the Purchasers.  In evaluating the
suitability of an investment in the Convertible Note and the Conversion Shares
and in making the investment, the Purchasers have not relied upon any
representations or warranties of any person by or on behalf of any of the
Company other than those representations and warranties that are expressly set
forth in this Agreement, whether oral or written.

     

    SECTION
4. ADDITIONAL
AGREEMENTS

     

    4.1 Board
Representation.  After
the Closing, for so long as the Purchasers and their affiliates (collectively,
the “TPG
Entities”) in the aggregate beneficially hold at least 50% of the
principal amount of the Convertible Note or beneficially own at least 50% of the
Conversion Shares:

     

    (a) The TPG
Entities shall have the collective right to designate one person for nomination
for election to the Board (such designee, a “Holder Director”),
and the Company shall use its reasonable best efforts to cause the election of
such person to the Board, including by (i) nominating such individual to be
elected as a director as provided herein, (ii) including such nomination and
other required information regarding such individual in the Company’s proxy
statement for its annual meeting of stockholders and (iii) soliciting or causing
the solicitation of proxies in connection with the election of such individual
as a director.  The Company shall take all necessary or desirable
actions as may be required under applicable law or regulatory requirements to
cause the individual designated by the TPG Entities as the initial Holder
Director to be appointed or elected to the Board as soon as practicable but not
later than ten (10) business days after the date hereof.

     

    (b) In the
event that a vacancy is created at any time by the death, disability,
retirement, resignation or removal (with or without cause) of a Holder Director,
the TPG Entities shall have the collective right to designate a replacement to
fill such vacancy, and the Company shall take all necessary or desirable actions
as may be required under applicable law to cause the individual designated by
the TPG Entities to be appointed or elected.  The Company shall not
take any action to cause the removal of a Holder Director without cause unless
it is directed to do so by the TPG Entities, and if the Company is so directed,
the Company shall take all necessary or desirable actions to effect such removal
and to elect a replacement Holder Director as provided in the immediately
preceding sentence.

     

    (c) In
respect of any newly proposed Holder Director (other than the initial Holder
Director), the TPG Entities shall notify the Company of the proposed Holder
Director, in writing, a reasonable time in advance of the mailing of any proxy
statement, information statement or registration statement in which any Board
nominee or Board member of the Company would be named, together with all
information concerning such nominee reasonably requested by the Company and
necessary in order for the Company to comply with applicable disclosure
rules.

     

    (d) The
Company agrees to reimburse each Holder Director for all reasonable and
documented out-of-pocket expenses incurred in connection with the performance of
his or her duties as a Holder Director, including reasonable and documented
out-of-pocket expenses incurred in attending meetings of the Board or any
committee thereof, and each Holder Director shall be entitled to indemnification
arrangements and director and officer insurance coverage equivalent to such
arrangements and insurance coverage applicable to all non-employee
directors of the Company or to which all non-employee directors of the Company
are entitled or receive.

     

    (e) All
obligations of the Company pursuant to this Section 4.1 relating
to a Holder Director shall terminate immediately, and the TPG Entities shall
cause the Holder Director to resign promptly from the Board (and the Company
shall be entitled to take all action to remove the Holder Director from the
Board), when the TPG Entities in the aggregate both (i) beneficially hold less
than 50% of the principal amount of the Convertible Note and (ii)
beneficially own less than 50% of the Conversion Shares.  Without
prejudice to the foregoing, at any such time, the Purchasers shall cause the
Holder Director not to vote or exercise any other rights or powers of office
during the period pending resignation.  Any vacancy created by such
resignation may be filled by the Board or the stockholders of the Company in
accordance with the Company’s certificate of incorporation and bylaws and
applicable law.

     

    4.2 Registration
Rights.

     

    (a) The
Company shall prepare and file or cause to be prepared and filed with the SEC,
on or before the first anniversary of the Closing Date (the “Filing Deadline
Date”), a registration statement for an offering to be made on a delayed
or continuous basis pursuant to Rule 415 of the Securities Act (a “Shelf Registration
Statement”) registering the resale from time to time by Holders (as
defined below) of Registrable Securities (as defined below) (the “Initial Shelf Registration
Statement”).  The
Initial Shelf Registration Statement shall be on Form S-3 or another appropriate
form permitting registration of such Registrable Securities for resale by the
Holders in accordance with the methods of distribution elected by the Holders
and set forth in the Initial Shelf Registration Statement.  The
Company shall use its reasonable best efforts to cause the Initial Shelf
Registration Statement to be declared effective under the Securities Act on or
before the date that is one-hundred and twenty (120) days after the Filing
Deadline Date (the “Effectiveness Deadline
Date”), and to keep the Initial Shelf Registration Statement continuously
effective under the Securities Act (including using its reasonable best efforts
to obtain the prompt withdrawal of any order suspending the effectiveness
thereof and as promptly as is practicable amending the Shelf Registration
Statement in a manner reasonably expected to obtain the withdrawal of such order
suspending the effectiveness thereof, or filing and using its reasonable best
efforts to cause to become effective as promptly as is practicable after such
filing, an additional Shelf Registration Statement covering all of the
Registrable Securities) until the date that all Registrable Securities have
ceased to be Registrable Securities (the “Effectiveness
Period”).  At the time the Initial Shelf Registration Statement
is declared effective, each Holder shall be named as a selling securityholder in
the Initial Shelf Registration Statement and the related prospectus in such a
manner as to permit such Holder to deliver such prospectus to purchasers of
Registrable Securities in accordance with applicable law.  The Company
shall use its reasonable best efforts to ensure that none of the Company’s
securityholders (other than the Holders of Registrable Securities) shall
have the right to include any of the Company’s securities in the Shelf
Registration Statement.  The Company shall supplement and amend the
Shelf Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such
Shelf Registration Statement, if required by the Securities Act or as necessary
to name a Holder as a selling securityholder.

     

    (b) The
rights of each Holder to registration of Registrable Securities pursuant to
Section 4.2(a)
may be assigned by any of the Holders, in whole or in part, to any transferee or
assignee of Registrable Securities; provided, however, the
transferor shall, within ten (10) days after such transfer, furnish to the
Company written notice of the name and address of such transferee or assignee
and the number and type of Registrable Securities that are being
assigned.

     

    (c) All
expenses incurred in connection with any Shelf Registration Statement or
registered offering covering the Registrable Securities, including without
limitation, reasonable legal fees of counsel selected by the Company, reasonable
accounting fees, registration filing fees and additional listing
fees,  will be borne collectively by each Holder named as selling
securityholder, pro rata based on the number of Registrable Securities
registered by such Holder.

     

    (d) For the
purposes of this Section 4.2, the
following definitions apply: (i) “Holder” means either
of the Purchasers or their respective assigns; (ii) “Registrable
Securities” means the Conversion Shares and any securities into or for
which such Conversion Shares have been converted or exchanged or into which the
Convertible Note may be converted, and any security issued with respect thereto
upon any stock dividend, split or similar event until, in the case of any such
security, the earliest of: (A) the date on which such security has been
registered under the Securities Act and disposed of pursuant to an effective
registration statement; (B) the date on which such security may be sold or
transferred by the Holder thereof under Rule 144 under the Securities Act
without any volume restrictions; and (C) the date on which such security ceases
to be outstanding (whether as a result of repurchase and cancellation,
conversion or otherwise).

     

    4.3 Midwest SPV Upside
Payments;
Payments under the KfW Guaranty after
Conversion.

     

    (a) After the
Closing, in the event that the Company receives any distributions from Midwest
SPV (as defined in the KfW Settlement Agreement (as defined below)) pursuant to
Section III.(D)(4) of the KfW Settlement Agreement, exclusive of any repayments
of any Republic Cure Amount (as defined below) (any such distribution, an “SPV Distribution”),
then, for each such SPV Distribution, promptly (and in any event within five (5)
business days) after the receipt by the Company of such SPV Distribution) (a)
the Company shall notify the Purchasers of the amount of such SPV Distribution
so received and the cumulative amount of all SPV Distributions received and (b)
the Company shall pay the Purchasers in cash to an account designated by the
Purchasers: (i) for the first $1,500,000 of SPV Distributions, dollar for dollar
for such SPV Distributions, and (ii) to the extent that the aggregate SPV
Distributions exceed $1,500,000, by an amount equal to one half of the aggregate
SPV Distributions in excess of $1,500,000. The term “Republic Cure Amount”
shall have the meaning ascribed to such term in the Settlement Agreement and
Release, dated as of June 12, 2009, among Skyway Airlines, Inc. (as
successor to Astral Aviation, Inc., doing business under the name Midwest
Connect), a Delaware corporation, MAG, the Company, KfW (formerly known as
Kreditanstalt Für Wiederaufbau), an organization organized under the laws of
Germany (“KfW”), and Midwest
SPV, as in effect as of the date hereof (without giving effect to any amendment,
waiver, restatement or other modification of, or supplement or addition to, such
agreement without the consent of the Purchasers in accordance with Section 4.5
hereof (such consent not to be unreasonably withheld)) (the “KfW Settlement
Agreement”).

     

    (b) If, after
the Closing, the Company is required to make, and actually makes, a payment to
KfW under the KfW Guaranty (as defined in Section 4.5 below) of any of the
Guaranteed Obligations (as defined in the KfW Guaranty), but the Convertible
Note is no longer outstanding or the outstanding principal amount of the
Convertible Note has been reduced to zero pursuant to Section 2(f) thereof, then
promptly (and in any event within five (5) business days) after the receipt by
the Purchasers of a notice from the Company that it has made such a payment, the
Purchasers shall pay to the Company in cash (to the extent such payment has not
been paid or satisfied pursuant to Section 2(f) of the Convertible Note): (i)
for the first $1,500,000 paid by the Company pursuant to the terms of the KfW
Guaranty, dollar for dollar for such payment, and (ii) to the extent that the
aggregate payments so made by the Company exceed $1,500,000, by an amount equal
to one half of the aggregate payments so made by the Company in excess of
$1,500,000.  For the avoidance of doubt, in determining whether the
$1,500,000 threshold has been met, all payments paid by the Company pursuant to
the terms of the KfW Guaranty, including any such payment that has
been reimbursed or satisfied pursuant to Section 2(f) of the Convertible
Note, shall be taken into account.

     

    4.4 Consent.  Each
of the parties hereto, in its capacity as a “Lender” under the Credit Agreement,
hereby consents to the transactions contemplated by the Merger
Agreement.

     

    4.5 No
Modification

     

    4.6 .  From
the date hereof until the Closing Date, the Company shall not agree or consent
to or execute any amendment, waiver, restatement or other modification of, or
supplement or addition to, the KfW Guaranty (as defined below) or the KfW
Settlement Agreement, in each case without the prior written consent of the
Purchasers (such consent not to be unreasonably withheld).  “KfW Guaranty” means
the Guarantee Agreement, to be dated as of the Effective Date (as defined in the
KfW Settlement Agreement), between Payor and KfW, in the form attached as
Exhibit K to the KfW Settlement Agreement as of the date hereof (without giving
effect to any amendment, waiver, restatement or other modification of, or
supplement or addition to, such form without the consent of the Purchasers in
accordance with this Section 4.5 (such consent
not to be unreasonably withheld)).

     

    4.7 TPG Payment of Company
Expenses.  The TPG Entities shall pay or reimburse the Company
for legal fees in excess of $400,000 incurred by the Company in connection with
the negotiation and preparation of this Agreement, the Merger Agreement and the
Convertible Note in accordance with Section 8.5 of the Merger
Agreement.

     

    SECTION
5. CONDITIONS

     

    5.1 Conditions to the
Parties’
Obligations.  The respective obligations of each of the parties
to this Agreement to effect the Closing shall be subject to the satisfaction (or
waiver by the party entitled to make such a waiver) of all of the conditions to
the Closing set forth in Section 6 of the Merger Agreement (other than the
condition set forth in Section 6.1(a) of the Merger Agreement).

     

    5.2 Conditions to the
Purchasers’
Obligations.  The obligation of the Purchasers to effect the
Closing is subject to satisfaction of the following conditions precedent, unless
waived by the Purchasers:

     

    (a) Representations and
Warranties;
Covenants.  The representations and warranties of the Company
set forth in Section 2 hereof
which are not qualified by materiality or by a Material Adverse Effect shall be
true and correct in all material respects and the representations and warranties
of the Company set forth in Section 2 hereof
which are qualified by materiality or by a Material Adverse Effect shall have
been true and correct on as of the date hereof and shall be true and correct at
the time immediately prior to the Closing as if made on the Closing Date (except
where such representation and warranty speaks by its terms of a different date,
in which case it shall be true and correct as of such date).  The
Company shall have performed in all material respects all obligations and
complied with all agreements, undertakings, covenants and conditions required to
be performed by it under this Agreement at or prior to the
Closing.  The Company shall have delivered to the Purchasers at the
Closing a certificate dated the Closing Date and signed by an officer of the
Company to the effect that the conditions set forth in this Section 5.2(a) have
been satisfied.

     

    (b) Holder
Director.  The Company shall have taken all actions to cause
the Holder Director to be appointed to the Board effective as of the
Closing.

     

    5.3 Conditions to the
Company’s
Obligations.  The obligation of the Company to effect the
Closing is subject to satisfaction of the following condition precedent, unless
waived by the Company:

     

    (a) Representations and
Warranties;
Covenants.  The representations and warranties of the
Purchasers set forth in Section 3 hereof which are
not qualified by materiality shall be true and correct in all material respects
and the representations and warranties of the Purchasers set forth in Section 3 hereof which are
qualified by materiality shall have been true and correct on as of the date
hereof and shall be true and correct at the time immediately prior to the
Closing as if made on the Closing Date (except where such representation and
warranty speaks by its terms of a different date, in which case it shall be true
and correct as of such date).  The Purchasers shall have performed in
all material respects all obligations and complied with all agreements,
undertakings, covenants and conditions required to be performed by
them under this Agreement at or prior to the Closing.  The
Purchasers shall have delivered to the Company at the Closing a certificate
dated the Closing Date and signed by an officer of the Purchasers to the effect
that the conditions set forth in this Section 5.3(a) have
been satisfied.

     

    SECTION
6. MISCELLANEOUS

     

    6.1 Termination.  If
the Merger Agreement is terminated pursuant to Article 7 thereof  at
any time prior to the Closing, then upon such termination, this Agreement shall
immediately and automatically terminate without any action by the parties hereto
and shall be of no further force or effect, with no liability of any party to
the other parties, except that this Article 6 shall
survive the termination of this Agreement indefinitely; provided, however, nothing
herein shall relieve any party from liability for any intentional or willful
breach of this Agreement or the Merger Agreement.

     

    6.2 Non-Survival of Representations and
Warranties; Survival of Covenants.  None of the representations
and warranties in Section 2 or 3 of this Agreement
or in any agreement, instrument or document delivered pursuant to this Agreement
shall survive the Closing.  The covenants set forth in Section 4 of this
Agreement shall survive the Closing for the periods specified therein or, if no
period is specified therein, indefinitely.

     

    6.3 Notices

     

    .  Unless
otherwise provided, any notice required or permitted by this Agreement shall be
in writing and shall be deemed sufficient upon delivery, when delivered
personally or by overnight courier or sent by facsimile or electronic mail, or
48 hours after being deposited in the U.S. mail, as certified or registered
mail, with postage prepaid, and addressed as follows (or at such other address
for a party as shall be specified by like notice):

     

     

    
      	
               
      

            	
               (i)

            	
              in
      the case of any of the Purchasers,
to:

            

    

     

    
      	
               
      

            	
              c/o
      TPG Capital, L.P.

            

    

    
      	
               
      

            	
              301
      Commerce Street, Suite 3300

            

    

    
      	
               
      

            	
              Fort
      Worth, TX  76102

            

    

    
      	
               
      

            	
              Attention:  Clive
      Bode

            

    

    
      	
               

            	
              Telephone
      No.: (817) 871-4651

            

    

    
      	
               

            	
              Facsimile
      No.:  (817) 871-4010

            

    

     

    
      	
               
      

            	
              with
      a copy to:

            

    

     

    
      	
               
      

            	
              Skadden,
      Arps, Slate, Meagher & Flom LLP

            

    

    
      	
               
      

            	
              300
      South Grand Avenue

            

    

    
      	
               
      

            	
              Los
      Angeles, California 90071

            

    

    
      	
               
      

            	
              Attention:  Nicholas
      P. Saggese and Rick C. Madden

            

    

    
      	
               
      

            	
              Telephone
      No.:  (213) 687-5550 and (213)
  687-5379

            

    

    
      	
               
      

            	
              Facsimile
      No.:  (213) 621-5550 and (213)
  621-5379

            

    

     

    
      	
               
      

            	
              (ii)

            	
              in
      the case of the Company, to:

            

    

     

    Republic
Airways Holdings Inc.

    8909
Purdue Road, Suite 300

    Indianapolis,
IN 46268

    Attention:
President

    Telephone
No.:  (317) 484-6047

     

    Facsimile
No.:  (317) 484-4547

     

    with a copy to:

    

    Fulbright
& Jaworski L.L.P.

    666 Fifth
Avenue

    New York,
New York 10103

    Attention:
Gregg J. Berman

    Telephone
No.:  (212) 318-3388

    Facsimile
No.: (212) 318-3400

    

    6.4 Amendments and
Waivers.  Any
term of this Agreement may be amended or waived only with the written consent of
the Company and the Purchasers.

     

    6.5 Interpretation.  When
a reference is made in this Agreement to Sections, paragraphs, clauses or
Exhibits, such reference shall be to a Section, paragraph, clause or Exhibit to
this Agreement unless otherwise indicated.  The words “include,”
“includes,” and “including” when used herein shall be deemed in each case to be
followed by the words “without limitation.”  The table of contents and
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this
Agreement.  This Agreement has been negotiated by the respective
parties hereto and their attorneys and the language hereof will not be construed
for or against any party.  The phrases “the date of this Agreement,”
“the date hereof,” and terms of similar import, unless the context otherwise
requires, shall be deemed to refer to June 23, 2009.  The words
“hereof,” “herein,” “herewith,”  “hereby” and “hereunder” and words of
similar import shall, unless otherwise stated, be construed to refer to this
Agreement as a whole and not to any particular provision of this
Agreement.

     

    6.6 Fee and
Expenses

     

    (a) .  Each
party shall pay all costs and expenses incurred by it in connection with the
execution and delivery of this Agreement and the transactions contemplated
hereby, including fees of legal counsel, except as specified in Section 4.2(c) hereof
with respect to registration expenses.

     

    6.7 Further
Assurances.  Each
party to this Agreement shall do and perform or cause to be done and performed
all such further acts and things and shall execute and deliver all such
agreements, certificates, instruments and documents as the other party hereto
may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

     

    6.8 No Third Party
Beneficiaries.  Nothing
contained in this Agreement, expressed or implied, is intended to confer upon
any person other than the parties hereto and their respective permitted
successors and assigns any benefit right or remedies, except that the provisions
of Section 4.2
shall inure to the benefit of the persons to whom the registration rights
conferred by this Agreement have been transferred in compliance with Section 4.2(b)
hereof.

     

    6.9 Assignment.  This
Agreement shall not be assignable by operation of law (other than in connection
with a merger, consolidation or similar transaction) or otherwise (any attempted
assignment in contravention hereof being null and void); provided that each
Purchaser may assign all or part of its rights and obligations under this
Agreement (a) to one or more affiliates, but only if the transferee agrees in
writing for the benefit of the Company (with a copy thereof to be furnished to
the Company) to be bound by the terms of this Agreement (any such transferee
shall be included in the term “Purchaser”), and (b) as provided in Section
4.2.

     

    6.10 Entire
Agreement.  This
Agreement and all other documents required to be delivered pursuant hereto
constitute the entire agreement among the parties with respect to the subject
matter hereof and supersede all prior documents, agreements and understandings,
both written and verbal, among the parties with respect to the subject matter
hereof and the transactions contemplated hereby.

     

    6.11 Severability.  If
any provision of this Agreement is held to be illegal, invalid or unenforceable
under present or future laws, then, if possible, such illegal, invalid or
unenforceable provision will be modified to such extent as is necessary to
comply with such present or future laws and such modification shall not affect
any other provision hereof; provided that if such
provision may not be so modified such illegality, invalidity or unenforceability
will not affect any other provision, but this Agreement will be reformed,
construed and enforced as if such invalid, illegal or unenforceable provision
had never been contained herein.

     

    6.12 Governing
Law.  The
terms of this Agreement shall be construed in accordance with the laws of the
State of New York applicable to contracts made and to be performed in the State
of New York, including Sections 5-1401 and 5-1402 of the New York General
Obligations Law and Rule 327(b) of the New York Civil Practice Law and
Rules.  Any action against the Company or any Purchaser, including any
action for provisional or conservatory measures or action to enforce any
judgment entered by any court in respect of any thereof, may be brought in any
federal or state court of competent jurisdiction located in the Borough of
Manhattan in the State of New York, and each of the Company and each Purchaser
irrevocably consents to the jurisdiction and venue in the United States District
Court for the Southern District of New York and in the courts hearing appeals
therefrom unless no federal subject matter jurisdiction exists, in which event,
each of the Company and each Purchaser irrevocably consents to jurisdiction and
venue in the Supreme Court of the State of New York, New York County, and in the
courts hearing appeals therefrom.  Each of the Company and each
Purchaser hereby irrevocably waives, and agrees not to assert, by way of motion,
as a defense, counterclaim or otherwise, in any action or proceeding with
respect to this Agreement, any claim that it is not personally subject to the
jurisdiction of the above-named courts for any reason other than the failure to
serve process in accordance with this Agreement, that it or its property is
exempt or immune from jurisdiction of any such court or from any legal process
commenced in such courts (whether through service of notice, attachment prior to
judgment, attachment in aid of execution of judgment, execution of judgment or
otherwise), and to the fullest extent permitted by applicable law, that the
suit, action or proceeding in any such court is brought in an inconvenient
forum, that the venue of such suit, action or proceeding is improper, or that
this Note, or the subject matter hereof or thereof, may not be enforced in or by
such courts and further irrevocably waives, to the fullest extent permitted by
applicable law, the benefit of any defense that would hinder, fetter or delay
the levy, execution or collection of any amount to which such person is entitled
pursuant to the final judgment of any court having jurisdiction.  Each
of the Company and each Purchaser expressly acknowledges that the foregoing
waiver is intended to be irrevocable under the laws of the State of New York and
of the United States of America.  EACH OF THE COMPANY AND EACH
PURCHASER HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

     

    6.13 Injunctive
Relief.  The
Company agrees that the Purchasers’ remedies at law in the event of any default
or threatened default by the Company in the performance of or compliance with
any of the terms of this Agreement are not and will not be adequate to the
fullest extent permitted by law, and that such terms may be specifically
enforced by a decree for the specific performance of any agreement contained
herein or by an injunction against a violation of any of the terms hereof or
otherwise without the Purchasers having to prove actual damage or post any bond
or other security.

     

    6.14 Counterparts.  This
Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to each
of the other parties, it being understood that all parties need not sign the
same counterpart.

     

     

    [Signature Pages
Follow]

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

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

     

     

    
      
        	 	
                TPG
      MIDWEST US V, LLC

              	 
	 	 	 
	 	
                By:
      TPG Advisors V, Inc.

              
	 	
                Its:
      Managing Member

              
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Clive
      Bode	 
	 	 	Name:
      Clive Bode	 
	 	 	Title:
      Vice President	 
	 	 	 	 

      

    

     

     

     

    
      
        	 	
                TPG
      MIDWEST INTERNATIONAL V, LLC

              	 
	 	 	 	 
	 	By:
      TPG GenPar V.L.P.
	 	Its:
      Managing Member
	 	By:
      TPG Advisors V, Inc.
	 	Its:
      General Partner
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Clive
      Bode	 
	 	 	Name:
      Clive Bode 	 
	 	 	Title:
      Vice President 	 
	 	 	 	 

      

    

     

     

     

    
      
        	 	REPUBLIC AIRWAYS HOLDINGS
      INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Bryan
      Bedford	 
	 	 	Name:
      Bryan Bedford 	 
	 	 	Title:
       President & CEO	 
	 	 	 	 

      

    

     

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
    

     

     

    Annex A

    

     

    
      NEITHER
THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAS BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES
ACT”).  NO SALE OF THIS NOTE MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT RELATED THERETO OR, IF REQUESTED
BY THE COMPANY, AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE
COMPANY OR OTHER EVIDENCE THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT.

       

      CONVERTIBLE
NOTE

       

      
        	
                $25,000,000.00

              	
                [__],
      2009 (the “Issue Date”)1

              
	 
      	
                Indianapolis,
      Indiana

              

      

      

      FOR VALUE
RECEIVED, Republic Airways Holdings Inc., a Delaware corporation (“Payor”), promises to
pay to the order of the holders identified on the signature pages hereto under
the caption “Holders” or their respective assigns (each a “Holder”), in
accordance with their respective Pro Rata Shares (as defined in Section 14
hereof), the principal amount of $25,000,000.00 (Twenty-Five Million Dollars)
(subject to reduction pursuant to Section 2(f) hereof), and interest on the
outstanding principal amount at the rate of 8% per annum (computed on the basis
of a 360-day year of twelve 30-day months), in the manner and at the times set
forth in this Convertible Note (this “Note”).  Interest
shall accrue from and including the Issue Date and continue to accrue on the
outstanding principal amount until paid in full or until this Note is converted
in full in accordance with Section 2 hereof.  Accrued interest shall
be payable monthly in arrears on the [     ]
of each month (or if any such day is not a business day (as defined in Section
14 hereof), on the next succeeding business day).  Interest and
principal shall be payable at such address or by wire transfer to such account
as each Holder shall specify by written notice or in the absence of such notice
at the address set forth for such Holder in the Note Register (as defined in
Section 8(d) hereof).  Certain terms used herein have the respective
meanings set forth in Section 14 hereof.

       

      As a
condition to the issuance of this Note, each of TPG Midwest US V, LLC and TPG
Midwest International V, LLC (each, a “TPG Entity”) has
assigned to Payor, all of each such TPG Entity’s rights and obligations in its
capacity as a “Lender” (including under any related note thereunder) under the
Amended and Restated Senior Secured Credit Agreement (the “Credit Agreement”),
dated as of September 3, 2008, among Midwest Airlines, Inc., a Wisconsin
corporation (“Midwest”), Midwest
Air Group, Inc., a Wisconsin corporation (“MAG”), each of the
subsidiaries of Midwest from time to time party thereto, each lender from time
to time party thereto, Wells Fargo Bank Northwest, National Association, as
administrative agent and as collateral agent, as amended by Amendment No. 1 to
Amended and Restated Credit Agreement, dated as of October 28, 2008, Amendment
No. 2 to Amended and Restated Credit Agreement, dated as of January 28, 2009,
and Amendment No. 3 to Amended and Restated Credit Agreement, dated as of June
3, 2009, and as further amended, modified or supplemented from time to
time.  Such assignment by the TPG Entities has been made pursuant to
Section 12.07(b) of the Credit Agreement.

       

      This Note
has been executed and delivered pursuant to and in accordance with the terms of
the Investment Agreement, dated as of June 23, 2009 (as it may be amended,
supplemented or otherwise modified from time to time, the “Investment
Agreement”), by and among the TPG Entities and Payor.

       

      1. Payments.

       

      (a) Form of
Payment.  All payments of interest and principal shall be in
lawful money of the United States of America in immediately available
funds.  All payments shall be applied first to accrued interest, and
thereafter to principal.

       

      (b) Scheduled
Payment.  The unpaid principal amount and all accrued and
unpaid interest shall be due and payable on [     ],
20142 (the “Maturity Date”) unless all of the
principal amount of and accrued and unpaid interest on this Note has been
converted earlier pursuant to Section 2 hereof.

       

      (c) Prepayment.  Principal
of and accrued and unpaid interest on this Note may be prepaid, in whole or in
part, but only to the extent this Note has not been converted pursuant to
Section 2 hereof prior to such prepayment.  At least ten (10) business
days prior to any such prepayment, Payor shall deliver to each Holder written
notice thereof, specifying the amount of the principal of and accrued and unpaid
interest on this Note to be prepaid and the date of such prepayment. Each such
prepayment shall be allocated among the Holders of this Note in accordance with
their respective Pro Rata Shares.  For the avoidance of doubt, each
Holder shall have the right to convert all, or from time to time any portion, of
the outstanding principal amount of and accrued and unpaid interest on this Note
held by such Holder, including any principal and accrued interest to be so
prepaid, pursuant to Section 2 prior to such prepayment.  Payor shall
maintain a record in the Note Register showing the principal amount of and
accrued and unpaid interest on this Note prepaid and the date of each
prepayment.

       

      2. Conversion.

       

      (a) Holder Voluntary
Conversion.  Prior to and continuing to and including the
Maturity Date, each Holder may, in its sole discretion, elect to convert (the
“Conversion”)
all, or from time to time any portion, of the outstanding principal amount of
and accrued and unpaid interest on this Note held by such Holder (any such
amount of principal and interest being converted, a “Conversion Amount”)
into such number of shares of Payor’s common stock, par value $.001 per share
(the “Common
Stock”) (or cash, securities and/or other assets as provided in Section 3
hereof), as is obtained by multiplying (A) each $1,000 of the Conversion
Amount by (B) the Conversion Rate then in effect (the “Conversion
Shares”).

       

      (b) Issuance of Conversion Shares Upon
Voluntary Conversion.  To convert all or any portion of the
principal amount of and accrued and unpaid interest on this Note into shares of
Common Stock pursuant to Section 2(a), a Holder shall deliver to Payor the
original or facsimile of the form entitled “Voluntary Conversion Notice”
attached as Exhibit
A to this Note, duly completed and manually signed (the “Voluntary Conversion
Notice”), specifying the Conversion Amount and, if required by Section
2(c) hereof, this Note in its original form duly endorsed for cancellation (or
an affidavit in a form reasonably satisfactory to Payor that the original copy
of this Note has been lost or destroyed).  Payor shall, as soon as
practicable thereafter (but in any event within three (3) business days), issue
and deliver to such Holder a certificate or certificates, registered in such
name or names and denomination or denominations as such Holder has specified,
for the Conversion Shares or, if Payor’s transfer agent is participating in The
Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program, upon the request of such Holder, credit the
Conversion Shares to such Holder’s or its designee’s balance account with DTC
through its Deposit Withdrawal Agent Commission system (in each case, bearing
such legends as are required by the Securities Act).  The conversion
of the Conversion Amount pursuant to Section 2(a) shall be deemed to have been
made on the date that Payor actually receives the Voluntary Conversion Notice
(each such date, a “Conversion Date”),
and such Holder shall be treated for all purposes as the record holder of the
Conversion Shares as of the Conversion Date; provided, however, that if
Payor shall fail to issue and deliver to such Holder the Conversion Shares or to
credit the Conversion Shares to such Holder’s or its designee’s balance account
with DTC, as applicable, within three (3) business days after receipt of the
Voluntary Conversion Notice in accordance with this paragraph, the principal
amount of this Note that such Holder specified to be converted shall continue to
bear interest from and including the Conversion Date at a rate equal to the rate
borne by this Note, the accrued and unpaid interest that such Holder specified
to be converted shall remain outstanding and the Conversion Amount shall remain
convertible, in each case until the Conversion Shares are issued in respect of
the Conversion Amount or such Holder shall have been paid the Conversion Amount
in full.

       

      (c) Book Entry.  Upon
conversion of this Note, a Holder shall not be required to physically surrender
this Note to Payor unless (i) the entire principal amount of and all accrued and
unpaid interest on this Note is being converted or (ii) less than the entire
principal amount of and accrued and unpaid interest on this Note is being
converted and the Required Holders have provided Payor with prior written notice
(which notice may be included in the Voluntary Conversion Notice) requesting
reissuance of the unconverted portion of his Note upon physical
surrender.  Payor shall maintain a record in the Note Register showing
the principal amount of and accrued and unpaid interest on this Note converted
and the date of each conversion.

       

      (d) Fractional
Shares.  Payor shall not issue fractional shares of Common
Stock upon any Conversion but, instead, the number
of shares of Common Stock to be issued upon each Conversion shall be rounded up
to the nearest whole share.

       

      (e) Effect of
Conversion.  Upon conversion of the entire principal amount of
and all accrued and unpaid interest on this Note pursuant to the terms of this
Section 2, Payor shall be forever released from all of its obligations and
liabilities under this Note other than the obligation to issue the certificates
representing the Conversion Shares or credit the Conversion Shares to each
Holder’s or its designee’s balance account with DTC, as applicable, pursuant to
Section 2(b).

       

      (f) Adjustment to Note Principal Amount.
To the extent that Payor is required to make, and actually makes, a
payment to KfW under the KfW Guaranty of any of the Guaranteeed Obligations (as
defined in the KfW Guaranty), then promptly (and in any event within five (5)
business days) after the receipt by the Holders of a notice from Payor that
Payor has made such a payment, at the option of the Holders, pursuant to notice
to Payor, either (x) the principal amount of this Note shall be decreased by, or
(y) the Holders shall pay Payor in cash (or some combination of (x) and (y)):
(i) for the first $1,500,000 paid by Payor pursuant to the terms of the KfW
Guaranty, dollar for dollar for such payment, and (ii) to the extent that the
aggregate payments so made by Payor exceed $1,500,000, by an amount equal to one
half of the aggregate payments so made by Payor in excess of
$1,500,000.

       

      3. Adjustments to Conversion
Rate.  The Conversion Rate shall be subject to adjustment from
time to time as set forth in this Section 3.  Payor shall give each
Holder notice of any event described below which requires an adjustment pursuant
to this Section 3 in accordance with the notice provisions set forth in Section
13 hereof.

       

      (a) Certain Corporate
Events.  Upon the consummation of any merger, consolidation,
business combination, tender or exchange offer, spin-off, sale of assets,
reclassification, recapitalization or other transaction or event pursuant to or
as a result of which holders of Common Stock are entitled to receive cash,
securities or other assets with respect to or in exchange for shares of Common
Stock (a “Corporate
Event”), and as a condition to the consummation of each such Corporate
Event, upon the basis and the terms and in the manner provided in this Note,
this Note shall be, and the successor or purchasing person, as the case may be,
if other than Payor, shall execute and deliver to each Holder an agreement in
form and substance reasonably satisfactory to the Required Holders, providing
(in addition to any provisions required by the Investment Agreement) that this
Note shall be convertible into the number or amount of the cash, securities
and/or other assets to which a holder of a number of shares of Common Stock
issuable upon conversion of this Note in full immediately prior thereto
(including the right of a stockholder to elect the type of consideration it
shall receive upon a Corporate Event) would have been entitled upon the
consummation of such Corporate Event. Such agreement also shall provide for
adjustments (subsequent to such Corporate Event) as nearly equivalent as
possible to the adjustments provided for elsewhere in this Section 3, and to the
extent any Registrable Securities (as defined in the Investment Agreement)
remain outstanding, shall make the provisions of Section 4(b) of the Investment
Agreement applicable to any other securities included in the consideration
referred in this Section 3(a).  In determining the kind and amount of
cash, securities and/or other assets receivable upon conversion of this Note
following the consummation of such Corporate Event, if the holders of Common
Stock have the right to elect the kind or amount of consideration receivable
upon consummation of such Corporate Event, then each Holder shall have the right
to make a similar election upon conversion of this Note with respect to the kind
and amount of cash, securities and/or other assets which Holder shall receive
upon conversion of this Note.  The provisions of this Section 3(a)
shall apply similarly and equally to successive Corporate Events unless or until
this Note is converted in full or repaid in full.

       

      (b) Stock Dividends, Subdivisions and
Combinations. If at any time Payor shall:

       

                      (i) make or
issue, or set a record date for the holders of Common Stock for the purpose of
entitling them to receive, a dividend payable in, or other distribution of,
shares of Common Stock,

       

      (ii) subdivide
or reclassify outstanding shares of Common Stock into a larger number of shares
of Common Stock, or

       

      (iii) combine
or reclassify outstanding shares of Common Stock into a smaller number of shares
of Common Stock,

       

      then the
Conversion Rate shall be adjusted to equal the product of (A) the Conversion
Rate as of the record date for such dividend or distribution or the effective
date of such subdivision, combination or reclassification, as applicable,
multiplied by (B) a fraction (1) the numerator of which shall be the number of
shares of Common Stock outstanding, after giving effect to such dividend,
distribution, subdivision, combination or reclassification, as applicable, and
(2) the denominator of which shall be the number of shares of Common Stock
outstanding as of such record date or date of such dividend or distribution,
before giving effect to such dividend, distribution, subdivision, combination or
reclassification, as applicable.

       

      (c) Certain Other Distributions.
If at any time Payor shall make or issue, or set a record date for the holders
of the Common Stock for the purpose of entitling them to receive, any dividend
or other distribution of:

       

                      (i) any
evidences of indebtedness, any shares of capital stock or any other securities
or property of any nature whatsoever of any person (other than cash or Common
Stock under Section 3(b)), or

       

                      (ii) any
warrants or other rights to subscribe for or purchase any evidences of
indebtedness, any shares of capital stock or any other securities or property of
any nature whatsoever of any person (other than cash or Common Stock under
Section 3(b)),

       

      then the
Conversion Rate shall be adjusted to equal the product of (A) the Conversion
Rate as of such record date or date of such dividend or distribution multiplied
by (B) a fraction (1) the numerator of which shall be the Per Share Market Value
of Common Stock as of such record date or date of such dividend or distribution
and (2) the denominator of which shall be such Per Share Market Value minus the
amount allocable to one share of Common Stock of any such cash so distributable
and of the Fair Market Value of any and all such evidences of indebtedness,
shares of stock, other securities or property or warrants or other subscription
or purchase rights so distributable.  A reclassification of the Common
Stock (other than a change in par value, or from par value to no par value or
from no par value to par value) into shares of Common Stock and shares of any
other class of stock shall be deemed a distribution by Payor to the holders of
the Common Stock of such shares of such other class of stock within the meaning
of this Section 3(c) and, if the outstanding shares of Common Stock shall be
changed into a larger or smaller number of shares of Common Stock as a part of
such reclassification, such change shall be deemed a subdivision, combination or
reclassification, as the case may be, of the outstanding shares of Common Stock
within the meaning of Section 3(b).

       

      (d) Other Provisions applicable to
Adjustments under this Section. The following provisions shall be
applicable to the making of adjustments of the Conversion Rate then in effect
provided for in this Section 3:

       

                      (i) Timing of
Adjustments. The adjustments required by this Section 3 shall be made
whenever and as often as any specified event requiring an adjustment shall
occur, except that any adjustment in the Conversion Rate may be postponed
(except in the case of a subdivision, combination or reclassification of shares
of the Common Stock, as provided for in Section 3(b)) up to but not beyond the
Conversion Date if such adjustment either by itself or with other adjustments
not previously made adds or subtracts less than one-half percent (0.5%) of the
Conversion Rate immediately prior to the making of such adjustment; provided, however, that Payor
upon request of a Holder shall deliver to such Holder a due bill or other
appropriate instrument evidencing such Holder’s right to receive such additional
shares, upon the occurrence of the event requiring such adjustment. Any
adjustment representing a change of less than such minimum amount (except as
aforesaid) which is postponed shall be carried forward and made on the earlier
of (A) as soon as such adjustment, together with other adjustments required by
this Section 3 and not previously made, would result in a minimum adjustment and
(B) on the Conversion Date. For the purpose of any adjustment, any specified
event shall be deemed to have occurred at the close of business on the date of
its occurrence.

       

                      (ii) Fractional Interests.
In computing adjustments under this Section 3, fractional interests in Common
Stock shall be taken into account to the nearest one one-hundredth (1/100th) of
a share and calculations of dollar amounts shall be made to the nearest
one-tenth (1/10th) of a cent.

       

                      (iii) When Adjustment Not
Required. If Payor shall take a record of the holders of its Common Stock
for the purpose of entitling them to receive a dividend or distribution or
subscription or purchase rights and shall, thereafter and before the
distribution to stockholders thereof, legally abandon its plan to pay or deliver
such dividend, distribution, subscription or purchase rights, prior to vesting
any rights to any stockholders, then thereafter no adjustment shall be required
by reason of the taking of such record and any such adjustment previously made
in respect thereof shall be rescinded and annulled.

       

                      (iv) Adjustment for Unspecified
Actions.  If Payor takes any action affecting the Common Stock,
other than actions described in this Section 3, which would materially and
adversely affect the conversion rights of a Holder, then the Conversion Rate
shall be adjusted for such Holder’s benefit, to the extent permitted by law, in
such manner, and at such time, as the Board after consultation with such Holder
shall reasonably determine to be equitable in the circumstances.

       

                      (v) Proceedings Prior to Any
Action Requiring Adjustment.  As a condition precedent to the
taking of any action which would require an adjustment pursuant to this Section
3, Payor shall take any action which is necessary, including obtaining
regulatory, Securities and Exchange Commission (“SEC”), Nasdaq Global
Market System (or any other applicable securities exchange or market), Financial
Industry Regulatory Authority or stockholder approvals or exemptions, in order
that Payor may thereafter validly and legally issue as fully paid and
nonassessable all shares of Common Stock, cash and other securities or assets,
as applicable, that a Holder is entitled to receive upon conversion of this Note
pursuant to and after giving effect to the adjustments set forth in this Section
3.

       

      (e) Form of Note after
Adjustments. Except as provided in Section 3(a) hereof, the form of this
Note need not be changed because of any adjustments in the Conversion Rate or
the number and kind of securities purchasable upon the conversion of this
Note.

       

      4. Events of
Default.  Payor shall give each Holder prompt (within 24 hours)
written notice of any event that is or with notice or passage of time or both
would be an Event of Default hereunder.  The occurrence of any one or
more of the following events (herein called “Events of Default”)
shall constitute a default hereunder:

       

      (a) Payor
defaults in the payment of any principal under this Note when due;
or

       

      (b) Payor
defaults in the payment of any interest or (other than as specified in Section
4(a) or 4(d)) any other obligation involving the payment of money under this
Note and such default continues for more than five (5) business days after the
due date thereof; or

       

      (c) Payor
fails to convert this Note in accordance with Section 2(b) hereof within three
(3) business days after the receipt of the Voluntary Conversion Notice;
or

       

      (d) Payor
fails to provide timely notice of any Designated Event in accordance with
Section 7 hereof or Payor fails to pay, within three (3) business days after the
receipt of the Designated Event Repurchase Notice, the Designated Event Purchase
Price in accordance with Section 7 hereof; or

       

      (e) Payor
fails to observe, comply with or perform any other covenant or agreement
contained in this Note and such failure is not curable (it being understood that
a failure to observe, comply with or perform Section 8(a) hereof shall be deemed
to be not curable) or, if curable, is not cured within five (5) business days
after such failure; or

       

      (f) a default
occurs (after giving effect to any waivers, amendments, applicable grace periods
or any extension of any maturity date) in Payor’s or any Significant
Subsidiary’s indebtedness (other than this Note, which default is addressed by
clauses (a) through (e) above) with an aggregate amount outstanding of Ten
Million Dollars ($10,000,000) or more (1) resulting from the failure to pay
principal of or interest on such indebtedness, or (2) if as a result of such
default, the maturity of such indebtedness has been accelerated prior to its
stated maturity; or

       

      (g) one or
more judgments in an aggregate amount of Ten Million Dollars ($10,000,000) or
more shall have been rendered against Payor or any of its subsidiaries and
remain undischarged, unpaid or unstayed for a period of sixty (60) days after
such judgment or judgments become final and nonappealable; or

       

      (h) Payor or
any Significant Subsidiary shall make an assignment for the benefit of
creditors, or shall fail to pay its debts as they become due or shall admit in
writing its inability to pay its debts as they become due, or shall file a
voluntary petition in bankruptcy, or shall file any petition or answer seeking
for itself any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any present or future
bankruptcy or other statute, law or regulation, or shall seek or consent to or
acquiesce in the appointment of any trustee, receiver, custodian, sequestrator,
liquidator or similar official of Payor, any Significant Subsidiary or of all or
any substantial part (i.e., 33-1/3% or more) of the properties of Payor or any
Significant Subsidiary; or Payor or any Significant Subsidiary or its directors
shall take any action initiating the dissolution or liquidation of Payor or any
Significant Subsidiary, or Payor or any Significant Subsidiary or its directors
shall take any action for the purpose of effecting any of the foregoing;
or

       

      (i) sixty
(60) days shall have elapsed after the commencement of an action by or against
Payor or any Significant Subsidiary seeking, or after the entry of an order or
decree by a court of competent jurisdiction ordering or granting relief against
Payor or any Significant Subsidiary with respect to, the reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any present or future bankruptcy or other statute, law or
regulation or the appointment of any trustee, receiver, custodian, sequestrator,
liquidator or similar official of Payor, any Significant Subsidiary or of all or
any substantial part (i.e., 33-1/3% or more) of the properties of Payor or any
Significant Subsidiary, without such action, order or decree, as applicable,
being dismissed or all orders or proceedings thereunder affecting the operations
or the business of Payor or any Significant Subsidiary being stayed; or a stay
of any such order or proceedings shall thereafter be set aside and the action
setting it aside shall not be timely appealed; or Payor or any Significant
Subsidiary shall file any answer admitting or not contesting the material
allegations of a petition filed against Payor or any Significant Subsidiary in
any such proceedings or fail to respond to such petition in a timely and
appropriate manner; or the court in which such proceedings are pending shall
enter a decree or order granting the relief sought in any such proceedings;
or

       

      (j) sixty
(60) days shall have elapsed after the appointment, without the consent or
acquiescence of Payor or any Significant Subsidiary, of any trustee, receiver,
custodian, sequestrator, liquidator or similar official of Payor, any
Significant Subsidiary or of all or any substantial part (i.e., 33-1/3% or more)
of the properties of Payor or any Significant Subsidiary without such
appointment being vacated;

       

      provided, that the
references to “subsidiaries” or “Significant Subsidiaries” in clauses (f), (g),
(h), (i) and (j) of this Section 4 shall not include (x) MAG and its
subsidiaries as of the date hereof, (y) Mokulele Flight Service, Inc. and
its subsidiaries as of the date hereof and (z) Frontier Airlines Holdings, Inc.
and its subsidiaries as of the date hereof.

       

      5. Remedies.

       

      (a) Acceleration.  Upon
the occurrence of an Event of Default described in clause (a), (b), (c), (d),
(e), (f) or (g) of Section 4 hereof and during the continuance thereof, the
Required Holders shall have the right by notice to Payor to accelerate the
payment of the principal amount and accrued interest hereon by Payor and any
other amounts owing hereunder so that all such amounts are immediately due and
payable without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived by the Payor.  Upon the
occurrence of an Event of Default described in clause (h), (i) or (j) of Section
4 hereof, without any action on the part of any Holder, the principal amount,
accrued interest and any other amounts owing under this Note shall become
immediately due and payable without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived by the
Payor.  Upon an acceleration hereof, each Holder may enforce this Note
by exercise of the rights and remedies granted to it by applicable law
(including, without limiting any other rights, the right to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Holder or its
affiliates to or for the credit or the account of the Payor against any of and
all the obligations of Payor now or hereafter existing under this Note,
irrespective of whether or not such Holder shall have made any demand under this
Note and although such obligations may be unmatured).  No course of
dealing and no delay on the part of any Holder in exercising any right, power or
remedy shall operate as a waiver thereof or otherwise prejudice such Holder’s
rights, powers or remedies.  The rights and remedies of each Holder
under this Note shall be cumulative.  No right, power or remedy
conferred by this Note upon any Holder shall be exclusive of any other right,
power or remedy referred to herein or now or hereafter available at law, in
equity, by statute or otherwise.  Payor shall pay all fees (including
attorneys’ fees), expenses and court costs incurred by each Holder for any claim
or controversy arising out of or relating to this Note, including (i) in
investigating any event which could be an Event of Default and (ii) in
connection with the protection or enforcement of any of such Holder’s rights in
connection with this Note or the collection of any amounts due under this
Note.

       

      (b) Default
Interest.  Every amount overdue under this Note shall bear
interest from and after the date on which such amount first became overdue at an
annual rate of ten percent (10%) per annum (the “Default Interest
Rate”).  Such interest on overdue amounts under this Note shall
be payable on demand and shall accrue and be compounded annually until the
obligation of Payor with respect to the payment of such interest has been
discharged (whether before or after judgment).

       

      6. Enforcement.  Payor
hereby waives demand, notice, presentment, protest and notice of
dishonor.  All payments by Payor under this Note shall be made without
set-off, defense or counterclaim and be free and clear and without any deduction
or withholding for any taxes or fees of any nature whatever, unless the
obligation to make such deduction or withholding is imposed by law.

       

      7. Repurchase of Securities at Option of
the Holder Upon A Designated Event.

       

      (a)  In
the event that a Designated Event shall occur, then each Holder shall have the
right, at such Holder’s option, to require Payor to repurchase, and upon the
exercise of such right Payor shall repurchase, all or a portion of the principal
amount of this Note held by such Holder at a purchase price equal to 100% of the
principal amount of this Note plus accrued and unpaid interest to, but
excluding, the repurchase date (the “Designated Event Repurchase
Price”).  On or before the fifth (5th)
business day after the occurrence of a Designated Event, Payor shall give to
each Holder notice (the “Designated Event
Notice”) of the occurrence of the Designated Event and of the repurchase
right set forth herein arising as a result thereof.

       

      (b) To
exercise its repurchase right pursuant to Section 7(a), a Holder shall deliver
to Payor the original or facsimile of the form entitled “Designated Event
Repurchase Notice” attached as Exhibit B to this
Note, duly completed and manually signed (the “Designated Event Repurchase
Notice”), specifying the principal amount and accrued and unpaid interest
to be so repurchased and, if required by Section 7(c) hereof, this Note in its
original form duly endorsed for cancellation (or an affidavit in a form
reasonably satisfactory to Payor that the original copy of this Note has been
lost or destroyed).  Payor shall, as soon as practicable thereafter
(but in any event within three (3) business days), pay to such Holder cash in
the amount of the Designated Event Repurchase Price with respect to the
principal amount and accrued and unpaid interest to be so repurchased by wire
transfer to such account as such Holder shall specify by written notice or in
the absence of such notice at the address set forth for such Holder in the Note
Register.

       

      (c) Upon
repurchase of this Note, a Holder shall not be required to physically surrender
this Note to Payor unless (i) the entire principal amount of and all accrued and
unpaid interest on this Note is being repurchased or (ii) less than the entire
principal amount of and accrued and unpaid interest on this Note is being
repurchased and the Required Holders have provided Payor with prior written
notice (which notice may be included in the Designated Event Repurchase Notice)
requesting reissuance of the portion of his Note not being repurchased upon
physical surrender.  Payor shall maintain a record in the Note
Register showing the principal amount of and accrued and unpaid interest on this
Note repurchased and the date of each repurchase.

       

      8. Other Covenants and
Agreements.

       

      (a) Merger, Consolidation and Sale of
Assets.  Payor shall not, in a single transaction or series of
related transactions, consolidate or merge with or into or effect a share
exchange with (whether or not Payor is the surviving corporation), or sell,
assign, transfer, lease, convey or otherwise dispose of all or substantially all
of its properties or assets to, any person as an entirety or substantially as an
entirety unless:

       

                      (i) either
(A) Payor shall be the surviving corporation, or (B) the person formed by or
surviving any such consolidation, merger or share exchange (if other than Payor)
or the person which acquires by sale, assignment, transfer, lease, conveyance or
other disposition the properties and assets of Payor (1) shall be a corporation
organized and validly existing under the laws of the United States or any State
thereof or the District of Columbia and (2) shall expressly assume, by agreement
in form reasonably satisfactory to the Required Holders, executed and delivered
to each Holder, the due and punctual payment of the principal of and interest on
this Note and the performance of every covenant of this Note on the part of
Payor to be performed or observed, including, without limitation, the rights of
holders to cause the repurchase of all or any portion of this Note upon a
Designated Event in accordance with Section 7 hereof, the conversion rights in
accordance with Section 2 hereof, the adjustments to the Conversion Rate set
forth in Section 3 hereof and the rights set forth in Section 4 of the
Investment Agreement, in addition to any provisions required by Section 3(a)
hereof; and

       

      (ii) immediately
after giving effect to such transaction no default under this Note and no Event
of Default shall have occurred and be continuing.

       

      For
purposes of this Section 8(a), the transfer (by lease, assignment, sale or
otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of one or more subsidiaries of
Payor, the capital stock of which individually or in the aggregate constitutes
all or substantially all of the properties and assets of Payor, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
Payor.

       

      Upon any
such consolidation, merger, share exchange, sale, assignment, conveyance, lease,
transfer or other disposition in accordance with this Section 8(a), the
successor person formed by such consolidation or share exchange or into which
Payor is merged or to which such sale, assignment, conveyance, lease, transfer
or other disposition is made will succeed to, and be substituted for, and may
exercise every right and power of, Payor under this Note with the same effect as
if such successor had been named as Payor herein, and thereafter (except in the
case of a lease) the predecessor corporation will be relieved of all further
obligations and covenants under this Note.

       

      This
Section 8(a) does not affect the obligations of Payor (including without
limitation any successor to Payor) under Section 7.

       

      (b) Reservation of Conversion
Shares.  Payor shall at all times reserve and keep available
out of its authorized but unissued shares of Common Stock (and any other
securities which the Holders shall be entitled to receive upon the conversion of
this Note), solely for the purpose of issuance upon the conversion of this Note,
such number and type of Conversion Shares issuable upon full conversion of this
Note.  All Conversion Shares shall, when issued, be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens and
charges.  Payor shall not take any action which would cause the number
of authorized but unissued shares of Common Stock (or any other securities which
the Holders shall be entitled to receive upon the conversion of this Note) to be
less than the number of such shares required to be reserved hereunder for
issuance upon conversion of this Note.

       

      Payor
shall take all such actions as may be necessary to assure that all Conversion
Shares may be so issued on each applicable Conversion Date without violation of
any applicable law or governmental regulation or any requirements of any
domestic securities exchange upon which shares of Common Stock may be listed
(except for official notice of issuance which shall be immediately delivered by
Payor upon each such issuance).  If any Conversion Shares required to
be reserved for issuance upon conversion of this Note or as otherwise provided
hereunder require registration or qualification with any governmental authority
under any federal or state law before such shares may be so issued, Payor shall
cause such shares to be duly registered or qualified.  So long as
shares of Common Stock are listed on the Nasdaq Global Market System or listed
or quoted on any other securities exchange or market, Payor shall, at its
expense, list or cause to have quoted thereon, maintain and increase when
necessary such listing or quotation, of, all Conversion Shares from time to time
issued upon conversion of this Note or as otherwise provided hereunder, and, to
the extent permissible under the applicable securities exchange rules, all
unissued Conversion Shares which are at any time issuable hereunder, so long as
any shares of Common Stock shall be so listed or quoted.  Payor shall
also so list or cause to have quoted on each securities exchange or market, and
shall maintain such listing or quotation of, any other securities which the
Holders shall be entitled to receive upon the conversion of this Note if at the
time any securities of the same class shall be listed or quoted on such
securities exchange or market by Payor.

       

      (c) Certain
Actions.  Payor shall not by any action, including amending the
certificate of incorporation or the bylaws of Payor, or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other action, avoid or seek to avoid the observance or
performance of any of the terms of this Note, but shall at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of each Holder
against dilution (to the extent specifically provided herein) or
impairment.

       

      (d) Note
Register.  Payor shall cause to be kept at its principal
executive office a register (the “Note Register”) in
which Payor shall maintain a record of the Pro Rata Share of each Holder and
shall provide for the registration of this Note, the conversion, repurchase and
prepayment of all or any portion of this Note, and the transfer of this Note or
any interest in this Note.  The Note Register shall be in written form
or in any form capable of being converted into written form within a reasonably
prompt period of time. Payor is hereby appointed “Note Registrar” for
the purpose of registering Notes and transfers of Notes as herein
provided.

       

      Upon
surrender for registration of transfer of this Note to the Note Registrar, Payor
shall execute and deliver, in the name of the designated transferee or
transferees, one or more new Notes of any authorized denominations and of a like
aggregate principal amount and bearing such restrictive legends as may be
required by this Note.  This Note may be exchanged for other Notes of
any authorized denominations and of a like aggregate principal amount, upon
surrender of this Note at the principal executive office of Payor. Whenever this
Note is so surrendered for exchange (including pursuant to Section 2(c)(ii) or
Section 7(c)(ii) hereof), Payor shall execute the Note or Notes which the
Holder(s) making the exchange is or are entitled to receive bearing registration
numbers not contemporaneously outstanding. All Notes so issued upon any
registration of transfer or exchange of this Note shall be the valid obligations
of Payor, evidencing the same debt, and entitled to the same benefits, as the
Note or Notes surrendered upon such registration of transfer or
exchange.  No service charge shall be made to any Holder for any
registration of, transfer or exchange, repurchase or conversion of this Note or
any interest therein.

       

      (e) Existence.  Payor
shall, and shall cause each Significant Subsidiary to, do or cause to be done
all things necessary to preserve and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business.

       

      (f) Stay, Extension and Usury
Laws.  Payor covenants (to the extent that it may lawfully do
so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or
usury law or other law which would prohibit or forgive Payor from paying all or
any portion of the principal of or interest (including interest at the Default
Interest Rate) on this Note as contemplated herein, wherever enacted, now or at
any time hereafter in force, or which may affect the covenants or the
performance of this Note, and Payor (to the extent it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not, by resort to any such law, hinder, delay or impede the execution of
any power herein granted to the Holders, but will suffer and permit the
execution of every such power as though no such law had been
enacted.

       

      (g) Mutilated, Destroyed, Lost or Stolen
Notes. Upon receipt of an affidavit reasonably satisfactory to Payor of
the ownership of and the loss, theft, destruction or mutilation of this Note
and, in the case of any such mutilation, upon surrender and cancellation of this
Note, Payor shall make and deliver, in lieu of such lost, stolen, destroyed or
mutilated Note, a new Note of like tenor and convertible into the same number of
shares of Common Stock.

       

      (h) Payment of Taxes.

       

                      (i) Stamp
Taxes.  Payor shall pay or discharge, or cause to be paid or
discharged, before the same may become delinquent, all stamp taxes and other
duties, if any, which may be imposed by the United States or any political
subdivision thereof or therein in connection with the issuance, transfer or
conversion of this Note.  The issuance of Conversion Shares shall be
made without charge to any Holder for any issue or transfer tax or other expense
in respect of the issuance of such certificates, all of which taxes and expenses
shall be paid by Payor.

       

                      (ii) Withholding
Taxes.  Payor shall exclude and withhold from each payment due
under any Note any and all withholding taxes applicable thereto to the extent
required by law.  Each Holder (or successor or permitted assign)
hereby agrees to provide to Payor two properly completed and executed copies of
the certificates and/or U.S. Treasury Forms (such as Forms W-9, W-8BEN, W-8ECI,
W-8IMY, or any successor forms thereto) that are required for Payor to determine
whether or to what extent United States federal income withholding taxes apply
to payments to such Holder (or successor or permitted assign)
hereunder.

       

      (i) KfW Guaranty.  Payor
shall not agree or consent to or execute any amendment, waiver, restatement or
other modification of, or supplement or addition to, the KfW Guaranty or the KfW
Settlement Agreement, in each case without the prior written consent of the
Required Holders.

       

      9. Governing Law.  The
terms of this Note shall be construed in accordance with the laws of the State
of New York applicable to contracts made and to be performed in the State of New
York, including Sections 5-1401 and 5-1402 of the New York General Obligations
Law and Rule 327(b) of the New York Civil Practice Law and Rules.  Any
action against Payor or any Holder, including any action for provisional or
conservatory measures or action to enforce any judgment entered by any court in
respect of any thereof, may be brought in any federal or state court of
competent jurisdiction located in the Borough of Manhattan in the State of New
York, and each of Payor and each Holder irrevocably consents to the jurisdiction
and venue in the United States District Court for the Southern District of New
York and in the courts hearing appeals therefrom unless no federal subject
matter jurisdiction exists, in which event, each of Payor and each Holder
irrevocably consents to jurisdiction and venue in the Supreme Court of the State
of New York, New York County, and in the courts hearing appeals
therefrom.  Each of Payor and each Holder hereby irrevocably waives,
and agrees not to assert, by way of motion, as a defense, counterclaim or
otherwise, in any action or proceeding with respect to this Note, any claim that
it is not personally subject to the jurisdiction of the above-named courts for
any reason other than the failure to serve process in accordance with this Note,
that it or its property is exempt or immune from jurisdiction of any such court
or from any legal process commenced in such courts (whether through service of
notice, attachment prior to judgment, attachment in aid of execution of
judgment, execution of judgment or otherwise), and to the fullest extent
permitted by applicable law, that the suit, action or proceeding in any such
court is brought in an inconvenient forum, that the venue of such suit, action
or proceeding is improper, or that this Note, or the subject matter hereof or
thereof, may not be enforced in or by such courts and further irrevocably
waives, to the fullest extent permitted by applicable law, the benefit of any
defense that would hinder, fetter or delay the levy, execution or collection of
any amount to which such person is entitled pursuant to the final judgment of
any court having jurisdiction.  Each of Payor and each Holder
expressly acknowledges that the foregoing waiver is intended to be irrevocable
under the laws of the State of New York and of the United States of
America.  EACH OF PAYOR AND EACH HOLDER HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATED TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

       

      10. Amendments and
Waivers.  Any term of this Note may be amended or waived only
with the written consent of Payor and the Required Holders; provided that no such
amendment or waiver shall, without the consent of each Holder:  (a)
extend the fixed maturity of this Note; (b) reduce the rate or extend the time
for payment of interest on this Note; (c) reduce the principal amount of this
Note; (d) reduce any amount payable on repurchase of this Note; (e) impair the
right of any Holder to institute suit for the payment of this Note; (f) make the
principal of this Note or interest on this Note payable in any coin or currency
other than that provided in this Note; (g) change the obligation of Payor to
repurchase this Note upon a Designated Event in a manner adverse to the Holders;
(h) affect the right of a Holder to convert this Note; or (i) reduce the
percentage of Notes, the holders of which are required to consent to any
amendment or waiver or otherwise modify any of the provisions of this Section
10, except to increase any such percentage or to provide that certain other
provisions of this Note cannot be modified or waived without the consent of each
Holder. 

       

      11. Assignment.  This
Note shall bind Payor and each Holder and their respective successors and
permitted assigns.  The obligations of Payor under this Note shall not
be sold, assigned, encumbered or otherwise disposed of or transferred (whether
for or without consideration, whether voluntarily or involuntarily or by
operation of law, except in accordance with Section 8(a) hereof) without the
prior written consent of the Required Holders.  This Note may be sold,
assigned, encumbered, conveyed or otherwise disposed of or transferred (whether
for or without consideration, whether voluntarily or involuntarily or by
operation of law), in whole or in part, by any Holder without the consent of
Payor; provided, however, that such
Holder shall provide Payor with notice that such transfer has been made within
five (5) business days after the making of such transfer.

       

      12. Injunctive
Relief.  Payor agrees that a Holder’s remedies at law in the
event of any default or threatened default by Payor in the performance of or
compliance with any of the terms of this Note are not and will not be adequate
to the fullest extent permitted by law, and that such terms may be specifically
enforced by a decree for the specific performance of any agreement contained
herein or by an injunction against a violation of any of the terms hereof or
otherwise without such Holder having to prove actual damage or post any bond or
other security.

       

      13. Notices.  Unless
otherwise provided, any notice required or permitted by this Agreement shall be
in writing and shall be deemed sufficient upon delivery, when delivered
personally or by overnight courier or sent by facsimile or electronic mail, or
48 hours after being deposited in the U.S. mail, as certified or registered
mail, with postage prepaid, and addressed to the party to be notified at such
address set forth on the signature page hereto below such person’s signature, in
the Note Register or as otherwise furnished to Payor in writing by the
Holder.

       

      Whenever
the Conversion Rate shall be adjusted pursuant to Section 3 hereof (for purposes
of this Section 13, each an “adjustment”), Payor
shall cause its Chief Financial Officer to prepare and execute a certificate
setting forth, in reasonable detail, the event requiring the adjustment, the
amount of the adjustment, the method by which such adjustment was calculated
(including a description of the basis on which the Board made any determination
hereunder), and the Conversion Rate after giving effect to such adjustment, and
shall cause copies of such certificate to be delivered to each Holder promptly
(and in no event later than five (5) business days) after each event giving rise
to an adjustment.

       

      14. Definitions.  For
the purposes of this Note, the following terms have the following
meanings:

       

      (a)  “business day” means
any day except a Saturday, Sunday or other day on which commercial banking
institutions in the State of Indiana or the State of New York are required or
authorized by applicable law or executive order to be closed.

       

      (b) “Change in Control”
means the occurrence of one or more of the following events

       

                      (i) any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) is or becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act) of shares representing more than 50% of the
combined voting power of the then outstanding Voting Stock of
Payor;

       

                      (ii) Payor
consolidates with or merges into any other person, any other person merges into
Payor, or Payor effects a share exchange, and, in the case of any such
transaction, the outstanding Common Stock is reclassified into or exchanged for
any other property or securities, unless the stockholders of Payor immediately
before such transaction own, directly or indirectly immediately following such
transaction, a majority of the combined voting power of the then outstanding
Voting Stock of the person resulting from such transaction;

       

                      (iii) Payor, or
Payor and its subsidiaries taken as a whole, sells, assigns, transfers, leases,
conveys or otherwise disposes of all or substantially all of the properties or
assets of Payor, or of Payor and its subsidiaries taken as a whole, as
applicable;

       

      (iv) any time
the Continuing Directors do not constitute a majority of the Board (or, if
applicable, the board of directors of a successor corporation to Payor);
or

       

                      (v) Payor
undertakes a liquidation, dissolution or winding up.

       

      (c) “Continuing Directors”
means, as of any date of determination, any member of the Board who (i) was a
member of the Board on the Issue Date or (ii) was nominated for election or
elected to the Board with the approval of a majority of the Continuing Directors
who were members of the Board at the time of such nomination or
election.

       

      (d) “Conversion Rate”
means 100 shares of Common Stock per $1,000, subject to adjustment as provided
in Section 3 hereof.

       

      (e) “Designated Event”
means the occurrence of any of the following:

       

                      (i) any
transaction or event (whether by means of a Corporate Event or otherwise) in
connection with which 50% or more of the then outstanding shares of Common Stock
are exchanged for, converted into or constitute solely the right to receive
consideration that is not at least 90% shares of common stock that are listed
on, or immediately after the transaction or event will be listed on, a United
States national securities exchange;

       

      (ii) a Change
in Control; or

       

                      (iii) the
Common Stock (or other securities into which this Note is then convertible) is
not listed on the Nasdaq Global Market System or any other United States
national securities exchange.

       

      (f) “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder, as in effect from time to time.

       

      (g) “Fair Market Value”
means, with respect to any security or other property, the fair market value of
such security or other property, as determined by the Board acting in good
faith, assuming a willing buyer and a willing seller, provided that no minority
or illiquidity discount shall be taken into account and no consideration shall
be given to any restrictions on transfer, or to the existence or absence of, or
any limitations on, voting rights.

       

      (h) The words
“include,”
“includes” or
“including”
shall be deemed to be followed by the words “without limitation.”

       

      (i) “KfW” means KfW
(formerly known as Kreditanstalt Für Wiederaufbau), an organization organized
under the laws of Germany.

       

      (j) “KfW Guaranty” means
the Guarantee Agreement, dated as of [      ],
2009, between Payor and KfW, as in effect on the date hereof (without giving
effect to any amendment, waiver, restatement or other modification of, or
supplement or addition to, such form without the consent of the Holders in
accordance with Section 8(i) hereof).

       

      (k) “KfW Settlement
Agreement” means the Settlement Agreement and Release, dated as of June
12, 2009, among Skyway Airlines, Inc. (as successor to Astral Aviation, Inc.,
doing business under the name Midwest Connect), a Delaware corporation, MAG,
Payor, KfW and a new special purpose entity that is an indirect subsidiary of
MAG, as in effect on the date hereof (without giving effect to any amendment,
waiver, restatement or other modification of, or supplement or addition to, such
agreement without the consent of the Holders in accordance with Section 8(i)
hereof).

       

      (l) “Per Share Market
Value” means on any particular date (i) the last sale price per share of
the Common Stock on such date on the Nasdaq Global Market System or another
registered national stock exchange on which the Common Stock is then listed, or
if there is no such price on such date, then the closing bid price or last sale
price, as applicable, on such exchange or quotation system on the date nearest
preceding such date, or (ii) if the Common Stock is not then listed on the
Nasdaq Global Market System or any registered national stock exchange, the
closing bid price or last sale price, as applicable, for a share of Common Stock
in the over-the-counter market, as reported by the OTC Bulletin Board or by the
National Quotation Bureau Incorporated (or similar organization or agency
succeeding to its functions of reporting prices) at the close of business on
such date, or (iii) if the Common Stock is not then reported by the OTC Bulletin
Board or the National Quotation Bureau Incorporated (or similar organization or
agency succeeding to its functions of reporting prices), then the average of the
“Pink Sheet” quotes for the five (5) Trading Days preceding such date of
determination, or (iv) if the Common Stock is not then publicly traded the Fair
Market Value of a share of Common Stock; provided, that all
determinations of the Per Share Market Value shall be appropriately adjusted for
any stock dividends, stock splits or other similar transactions during such
period.

       

      (m) “Pro Rata Share”
means, with respect to a Holder at any time, a fraction (expressed as a
percentage carried out to the ninth decimal place), the numerator of which is
the aggregate outstanding principal amount of this Note owing to such Holder and
the denominator of which is the total aggregate outstanding principal amount of
this Note.

       

      (n) “person” means an
individual, corporation, limited liability company, partnership, joint stock
company, trust, unincorporated organization, joint venture or other entity of
whatever nature.

       

      (o) “Required Holders”
means (i) as used in Section 4 hereof, the holders of at least 25% in aggregate
outstanding principal amount of this Note; and (ii) otherwise, the holders of a
majority in aggregate outstanding principal amount of this Note.

       

      (p) “Significant
Subsidiary” has the meaning ascribed to such term in Rule 1-02(w) of
Regulation S-X of the SEC (17 CFR Part 210).

       

      (q) “Trading Day” means
(i) a day on which the Common Stock is traded on the Nasdaq Global Market
System, or (ii) if the Common Stock is not traded on the Nasdaq Global Market
System, a day on which the Common Stock is quoted in the over-the-counter market
as reported by the OTC Bulletin Board or by the National Quotation Bureau
Incorporated (or any similar organization or agency succeeding its functions of
reporting prices); provided, however, that in the
event that the Common Stock is not listed or quoted as set forth in (i) or (ii)
hereof, then Trading Day shall mean any business day.

       

      (r) “Voting Stock” of a
person means all classes of capital stock of such person then outstanding and
normally entitled to vote in the election of directors.

       

      15. Captions. The section,
paragraph and clause captions herein are for convenience of reference only, do
not constitute part of this Note and will not be deemed to limit or otherwise
affect any of the provisions hereof.

       

      16. Severability. If any provision
of this Note or the application thereof to any person (including the officers
and directors of the parties hereto) or circumstance is determined by a court of
competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof, or the application of such provision to persons or
circumstances other than those as to which it has been held invalid or
unenforceable, will remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to Payor or any Holder. Upon such determination, Payor and
the Holders shall negotiate in good faith in an effort to agree upon a suitable
and equitable substitute provision to effect the original intent of Payor and
the Holders.

       

      [Remainder of this Page Intentionally
Left Blank]

       

      

        

      

        
        1To be the
Closing Date under the Investment Agreement to which this Note is attached as an
Exhibit.

      

        
        
          	
                  2

                	
                  To
      be the fifth anniversary of the Issue
Date.

                

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

         

      

      IN WITNESS WHEREOF, Payor and
the Holders set forth below have caused this Note to be duly executed as of the
date first written above.

       

      REPUBLIC
AIRWAYS HOLDINGS INC.

       

      

      By:__________________________________

      Name:

      Title:

       

      Address:
8909 Purdue Road

      Suite
300

      Indianapolis,
IN  46268

      Attention:
President and Chief Executive Officer

      

      

      ACKNOWLEDGED
AND AGREED:

       

      HOLDERS:

       

      TPG
MIDWEST US V, LLC

       

      

      By:__________________________________

      Name:

      Title:

       

      Address:
[_____]

      [_____]

      [_____]

      Attention:
[_____]

      

      

      TPG
MIDWEST INTERNATIONAL V, LLC

       

      

      By:__________________________________

      Name:

      Title:

       

      Address:
[_____]

      [_____]

      [_____]

      Attention:
[_____]

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        Annex
B

         

         

        REPUBLIC
AIRWAYS HOLDINGS INC.

        8909
Purdue Road, Suite 300

        Indianapolis,
IN 46268

         

         

        __________,
20091

         

         

        TPG
Partners V, L.P.

        TPG
Midwest US V, LLC

        TPG
Midwest International V, LLC

         

        RE:
Termination of Indemnity Agreement

         

         

        Ladies
and Gentlemen:

         

         

            Reference is
made to the Agreement, dated as of June 2, 2009 (the “Indemnity Agreement”),
among Republic Airways Holdings Inc., a Delaware corporation (“Republic”), TPG
Partners V, L.P. (“TPG Fund”), TPG Midwest US V, LLC (“TPG US”), and TPG Midwest
International V, LLC (“TPG International”).

         

         

            Each of
Republic, TPG Fund, TPG US and TPG International hereby agrees that, as of the
date hereof, the Indemnity Agreement and all of the parties’ rights and
obligations thereunder are hereby terminated and are of no further force and
effect, and none of the parties hereto shall have any liabilities or obligations
to, or rights against, any other party hereto with respect to or under the
Indemnity Agreement.

         

         

            This letter
agreement shall be construed in accordance and governed by the laws of the State
of New York, without regard to the principles of conflicts of law. This letter
agreement may be executed in one or more counterparts and by the different
parties hereto on separate counterparts, each of which, when executed, shall
constitute one and the same agreement.

         

         

        [signature
page follows]

         

         

         

        

         

        
          	
                  1

                	
                  To
      be dated as of the Closing Date of the Investment Agreement to which this
      letter is an Annex.

                

        

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        The
parties have executed this letter agreement as of the date first above written
intending to be legally bound hereby.

         

        
          	 
      	
                  REPUBLIC
      AIRWAYS HOLDINGS INC.

                	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      Bryan Bedford

                	 
      
	 
      	 
      	
                  Name:
      Bryan Bedford

                	 
      
	 
      	 
      	
                  Title:
      President & CEO

                	 
      
	 
      	 
      	 
      	 
      

        

         

        

         

        
          	 
      	
                  TPG
      PARTNERS V, L.P.,

                	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  By:
      TPG GenPar V, L.P.,

                	 
      
	 
      	
                  Its:
      Managing Member

                	 
      
	 
      	
                  By:
      TPG Advisors V, Inc.

                	 
      
	 
      	
                  Its:
      General Partner

                	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      Clive Bode

                	 
      
	 
      	 
      	
                  Name:
      Clive Bode

                	 
      
	 
      	 
      	
                  Title:
      Vice President

                	 
      
	 
      	 
      	 
      	 
      

        

         

        
          
            	 	

                    TPG
      MIDWEST US V, LLC

                  	 
	 	 	 
	 	By:
      TPG Advisors V, Inc.	 
	 	Its:
      Managing Member	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ Clive
      Bode	 
	 	 	Name: Clive
      Bode 	 
	 	 	Title:
      Vice President 	 
	 	 	 	 

          

        

         

        
          
            	 	

                    TPG
      MIDWEST INTERNATIONAL V, LLC

                  	 
	 	 	 
	 	By:
      TPG GenPar V.L.P.	 
	 	Its:
      Managing Member	 
	 	By:
      TPG Advisors V, Inc.	 
	 	Its:
      General Partner	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ Clive
      Bode	 
	 	 	Name:
      Clive Bode 	 
	 	 	Title:
      Vice President 	 
	 	 	 	 

          

        

         

        

         

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
A

       

       

      VOLUNTARY CONVERSION
NOTICE

       

      
        	
                TO:

              	
                REPUBLIC
      AIRWAYS HOLDINGS INC.

              

      

       

      
        	
                 
      

              	
                Re:

              	
                $25,000,000
      Convertible Note dated [        ],
      2009, issued by Republic Airways Holdings Inc. to TPG Midwest US V, LLP
      and TPG Midwest International V, LLP or their respective assigns (the
      “Note”)

              

      

      

      Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the Note.

       

      The
undersigned registered Holder of $  aggregate
principal amount of the Note hereby exercises the option to convert all of the
aggregate outstanding principal amount of and accrued and unpaid interest of the
Note held by such Holder, or the portion thereof below designated, in accordance
with the terms of Section 2(a) of the Note, and directs that the Conversion
Shares issuable and deliverable upon such conversion be issued and delivered to
the undersigned registered Holder unless a different name has been indicated
below.

       

      Dated:  _________________________                                                              

       

      Dollar
Amount of Principal and Accrued Interest

      to be
Converted if Less than All Held by Such Holder:

      _______________________________

       

      

       

                                           
                                     

      Name of
Registered Holder (please type or print)

       

      

      Signature
of Registered Holder

      

      Fill
in the information below for the person in whose name the registration of the
Conversion Shares is to be made, if to be made other than in the name of the
registered Holder (please type or print):

       

      ______________________________

      (Name)

       

      ______________________________

      (Street
Address)

       

      ______________________________

      (City,
State and Zip Code)

       

      ______________________________

      (Social
Security or Other Taxpayer Identification Number)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Exhibit
B

       

       

      DESIGNATED EVENT REPURCHASE
NOTICE

       

      
        	
                TO:

              	
                REPUBLIC
      AIRWAYS HOLDINGS INC.

              

      

       

      
        	
                 
      

              	
                Re:

              	
                $25,000,000
      Convertible Note dated [        ],
      2009, issued by Republic Airways Holdings Inc. to TPG Midwest US V, LLP
      and TPG Midwest International V, LLP or their respective assigns (the
      “Note”)

              

      

      

      Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the Note.

       

      The
undersigned registered Holder of $  aggregate
principal amount of the Note hereby acknowledges receipt of a Designated Event
Notice from Payor regarding the right of Holders to elect to require Payor to
repurchase all or a portion of the principal amount of the Note held by such
Holder and requests and instructs Payor to repay the entire principal amount of
the Note held by such Holder, or the portion thereof below designated, in cash,
in accordance with the terms of Section 7 of the Note, at the price of 100% of
such principal amount, together with accrued and unpaid interest to, but
excluding, the Designated Event Repurchase Date, to the undersigned registered
Holder unless a different name has been indicated below.

       

      Dated:   _____________________________                                                             

       

      Dollar
Amount of Principal to be Repurchased

      if Less
than All Held by Such Holder:

      ___________________________________

       

      
 

      Name of
Registered Holder (please type or print)

       

      

      Signature
of Registered Holder

       

      

      Fill
in the information below for the person to whom the Designated Event Purchase
Price is to be paid, if to be paid other than to the registered Holder (please
type or print):

       

      ______________________________

      (Name)

       

      ______________________________

      (Street
Address)

       

      ______________________________

      (City,
State and Zip Code)

       

      ______________________________

      (Social
Security or Other Taxpayer Identification Number)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Exhibit
C

       

      ASSIGNMENT

       

      
        	
                TO:

              	
                REPUBLIC
      AIRWAYS HOLDINGS INC.

              

      

       

      
        	
                 
      

              	
                Re:

              	
                $25,000,000
      Convertible Note dated [        ],
      2009, issued by Republic Airways Holdings Inc. to TPG Midwest US V, LLP
      and TPG Midwest International V, LLP or their respective assigns (the
      “Note”)

              

      

      

      Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the Note.

       

      For value
received, the undersigned registered Holder of $  aggregate
principal amount of the Note hereby sell(s), assign(s) and/or transfer(s) to the
person designated below the entire principal amount of the Note held by such
Holder, or the portion thereof below designated, and hereby irrevocably
constitutes and appoints the Secretary or Assistant Secretary of Payor as
attorney, with full power of substitution and re-substitution, to transfer such
principal amount of the Note on the Note Register.

      
        

         

        

      

      
        Dollar
Amount of Principal Sold, Assigned and/or

         

        Transferred
if Less than All Held by Such Holder:

         

        __________________________

         

        

         

        

      

      
        

         

        Fill in
the information below for the person to whom such principal amount is to be
sold, assigned and/or transferred (please type or print):

         

        __________________________

      

      
        (Name)

        ______________________________

        (Street
Address)

        ______________________________

        (City,
State and Zip Code)

         

        

      

      
        ______________________________

        (Social
Security or Other Taxpayer Identification Number)

      

      
        

         

        

      

      [signature page
follows]

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      In
connection with such sale, assignment and/or transfer, the undersigned confirms
that such principal amount of the Note is being sold, assigned and/or
transferred:

       

      
        	
                 
      

              	
                �

              	
                To
      Payor or any subsidiary thereof; or

              

      

       

      
        	
                 
      

              	
                �

              	
                To
      a “qualified institutional buyer” in compliance with Rule 144A under the
      Securities Act of 1933, as amended;
or

              

      

       

      
        	
                 
      

              	
                �

              	
                Pursuant
      to the exemption from registration provided by Rule 144 under the
      Securities Act of 1933, as amended, or another exemption (specify
      exemption:                                                                                                                     );
      or

              

      

       

      
        	
                 
      

              	
                �

              	
                Pursuant
      to a registration statement that has been declared effective under the
      Securities Act of 1933, as amended, and which continues to be effective at
      the time of such transfer.

              

      

       

      

       

      

       

      Dated:
______________________                                                                           

       

      

       

       

      

      Name of
Registered Holder (please type or print)

       

      

      Signature
of Registered Holder

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      [signature page to Convertible Note
Assignment]20-F

Exhibit 4.4 

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

GOOGLE SERVICES AGREEMENT

This Google Services Agreement (“GSA”) is entered into by and between Google Ireland Limited, a company incorporated under the laws of Ireland whose principal place of business is at Gordon House, Barrow Street, Dublin 4 (“Google”)  and Incredimail, Ltd whose registered office is at 4 Hanechoshet st. Tel Aviv, Israel (“Customer”).

This GSA shall be effective from the GSA Effective Date. Each Order Form shall be governed by this
  GSA and shall become effective on the Order Form Effective Date.

	INTRODUCTION
	 

	(A)	Google supplies a range of search and advertising related services.
	 	 
	(B) 	Google and Customer have agreed that Google will provide certain of these services to Customer.
		 
	(C) 	The Services ordered by Customer are identified on one or more separately stated Order Forms.
		 
	(D) 	This GSA together with the terms and conditions of any applicable Order Form(s) state the terms and
conditions under which Google will supply and Customer may use the Services.
		 

	AGREED TERMS
	 

	1.	Definitions
	 	 
	1.1 	In this GSA and any Order Form(s) the following words and phrases shall have the following meanings:
		 

	 	“Above-the-fold”  means visible to any End User at a minimum resolution of 800 by 600 pixels without scrolling within
a Site page as viewed through an Internet browser application considered among the top two (2) most
widely used from time to time;
		 

	 	“Ad”  means: (a) in the context of the AdSense for Content Services, a content targeted and/or site
targeted hyperlinked text and/or image based advertisement and (b) in the context of the Adsense
for Search Services, a keyword targeted hyperlinked text and/or image based advertisement and, for
the avoidance of doubt, in the case of both (a) and (b) image based advertisements may include moving
image based and/or video based and/or interactive advertisements, and text based advertisements may
include interactive advertisements;
		 
	 	“AdSense for Content Set”  means a set of one or more Ads provided by Google as part of the AdSense for Content Services in accordance
with the applicable Agreement;
		 
	 	“AdSense for Content Services”  means the provision of content targeted and/or site targeted hyperlinked advertisements in accordance
with the applicable Agreement;
		 

- 1 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	 	“AdSense for Content Site”  means the web site(s) located at the URL(s) stated in the applicable Order Form or as otherwise agreed

between the parties in writing from time to time;
		 
	 	“AdSense for Search Set”  means a set of one or more Ads provided by Google as part of the AdSense for Search Services in accordance
with the applicable Agreement;
		 

	 	“AdSense for Search Services”  means the provision of keyword targeted hyperlinked advertisements in accordance with the applicable
Agreement;
		 
	 	“AdSense for Search Site”  means the web site(s) located at the URL(s) stated in the applicable Order Form or as otherwise agreed

between the parties in writing from time to time;
		 
	 	“Advertising Results Set”  means an AdSense for Content Set and/or an AdSense for Search Set (as applicable);
		 
	 	“AFC Ads”  means Qualifying Ads provided by Google to Customer under an Agreement through the AdSense for Content
Services.
		 
	 	“AFS Ads”  means Qualifying Ads provided by Google to Customer under an Agreement through the AdSense for Search
Services.
		 
	 	“AFC Revenues”  for any period during the Services Term means ad revenues that are recognised by Google in such period
and attributed to AFC Ads displayed on the AdSense for Content Site in such period in accordance
with the requirements of this Agreement;
		 
	 	“AFS Revenues”  for any period during the Services Term means ad revenues that are recognised by Google in such period
and attributed to AFS Ads displayed on the AdSense for Search Site in such period in accordance with
the requirements of this Agreement;
		 
	 	“Agreement”  has the meaning stated in clause 2.4 of this GSA;
		 
	 	“Beta Features”  means any features which are identified by Google as “Beta” or unsupported in Google’s
technical documentation from time to time;
		 
	 	“Brand Features”  means the trade names, trademarks, service marks, logos, domain names and other distinctive brand features
of each party as owned by such party from time to time;
		 
	 	“Client Application”  means any application, plug-in, helper, component or other executable code that runs on user’s
computer (examples of Client Applications include those that provide instant messaging, chat, email,
data, file viewing, media playing, file sharing, games, internet navigation, search and/or other
services);
		 
	 	“Client ID(s)”  means a unique alphanumeric code or codes provided by Google to Customer (and which may be modified
by Google from time to time) to be used by Customer in accordance with the applicable Google Data
Protocol in order to identify each Query or Request;
		 
	 	“Customer Client Application”  means the Client Application(s) (if any) approved for the purpose of accessing one or more of the Services
as stated in the applicable Order Form;
	 	 
	 	“Customer Content”  means any editorial, text, graphic, audiovisual and other content that is served to End Users of the Site [***] and that is not provided by Google;

- 2 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

		 
	 	“Destination Page”  means a web page which may be accessed by clicking on any portion of an Advertising Results Set or
on any Websearch Results;
		 
	 	“End Users”  means individual human end users of the Site [***] accessing the Site [***]
by non-automated means;
		 
	 	“Google Data Protocol(s)”  means the Google data protocol(s) applicable to the Services being supplied by Google to Customer in
accordance with the applicable Agreement as notified to Customer by Google prior to the Launch Date
for those Services and any revised versions of such protocol(s) that may be notified to Customer
by Google from time to time following such Launch Date;
		 
	 	“GSA Effective Date”  means 1 July 2008;
		 
	 	“Intellectual Property Rights”  means all copyright; moral rights; patent rights; trade or service marks; design right; semiconductor
topography rights; rights in or relating to databases; rights in or relating to confidential information;
rights in relation to domain names; privacy or publicity rights and any other intellectual property
rights (registered or unregistered) throughout the world; including all rights of reversion and rights
to any applications and pending registrations and the right to sue for and recover damages for past
infringements;
		 
	 	“Invalidating Act”  means any of the actions in clauses 5.1(h) and 5.1(i) of this GSA;
		 
	 	“Launch Date”  means the date on which Google notifies Customer in accordance with clause 3.5(b) that Customer may
put its implementation of the applicable Services (as approved by Google) into live use;
		 
	 	“NDA”  means the non disclosure agreement entered into by the parties the effective date of which is stated
on the Order Form(s);
		 
	 	“Net AdSense for Content Revenues”  means for any period during the Services Term AFC Revenues for such period minus: [***]
		 
	 	“Net AdSense for Search Revenues”  means for any period during the Services Term AFS Revenues for such period minus: [***]
		 
	 	“Net  AdSense Revenues”  means Net AdSense for Content Revenues and Net AdSense for Search Revenues;
		 
	 	“Non-Qualifying Advertising Results”  means:
		 
	 	[***]
		 
	 	“Order Form”  means a fully executed Google order form which incorporates this GSA;

- 3 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	 	“Order Form Effective Date”  means the effective date of the applicable Order Form as stated on that Order Form or, if no date is
stated, the later of the two signature dates at the foot of that Order Form;
		 
	 	“Qualifying Ads”  means Ads (excluding Non-Qualifying Advertising Results) displayed on the AdSense for Content Site
or AdSense for Search Site (as applicable) in accordance with the applicable Agreement(s);
		 
	 	“Query”  means a search query entered on the Site or through [***] approved by Google for such purpose (if any)
by an End User by way of a  search box or other similar means implemented in accordance with the Agreement which is transmitted
by Customer to Google in order to obtain Websearch Results;
		 
	 	“Request” means a request for an AdSense for Content Set generated by an End User accessing a web page
on the AdSense for Content Site on which the Customer has implemented the AdSense for Content Services
in accordance with the applicable Google Data Protocol;
		 
	 	“Services”  means the AdSense for Search Services, AdSense for Content Services and/or WebSearch Services (as applicable);
		 
	 	“Services Term”  means the term stated in clause 2.5;
		 
	 	“Site”  means the AdSense for Search Site, AdSense for Content Site and/or WebSearch Site (as applicable);
		 
	 	“Valid Query”  means [***]
		 
	 	“Valid Request”  means: [***]
		 
	 	“Websearch Results Page”  means any Site page which contains any WebSearch Result(s);
		 
	 	“WebSearch Result”  means a web search result provided by Google to Customer as part of the WebSearch Services in accordance
with the applicable Agreement;
		 
	 	“WebSearch Result Set”  means a set of one or more (but no more than ten) web search results provided by Google to Customer
as part of the WebSearch Services in accordance with the applicable Agreement;
		 
	 	“WebSearch Services”  means the provision of Web search results in accordance with the applicable Agreement; and
		 
	 	“WebSearch Site”  means the web site(s) located at the URL(s) stated in the applicable Order Form or as otherwise agreed
between the parties in writing from time to time.
		 

	1.2 	The headings to the clauses of this GSA and any Order Forms are for ease of reference only and shall
not affect the interpretation or construction of this GSA and/or any Agreement.

- 4 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	1.3 	Reference to any statute or statutory provision includes a reference to that statute or statutory provision
as from time to time amended, extended or re-enacted.
		 
	2. 	Order Forms and Services Terms
		 

	2.1 	This GSA contains general terms relating to the provision by Google from time to time of Services.
Google shall provide such Services in accordance with this GSA as the parties shall agree from time
to time.
		 
	2.2 	Before Google provides any such Services, Google and Customer will in each case first agree in relation
to such Services:
		 

	 	(a)	exactly what Services are
to be supplied;
			 
	 	(b)	any other relevant details;
			 
	 	in each case all of this information will be included in an Order Form.
			 

	2.3 	If any Order Form conflicts with the provisions of this GSA then the provisions of that Order Form
will take precedence in relation to the Services to be supplied in accordance with that Order Form,
In the event of conflicting Order Forms, any subsequent Order Form shall take precedence over any
prior conflicting Order Form.
		 
	2.4 	Each agreed Order Form will form a separate agreement (an “Agreement”)  between Customer and Google on the terms contained in the Order Form and in this GSA. Each Agreement
will be separately terminable by either party in accordance with clause 14.
		 
	2.5 	For each Agreement entered into between Google and Customer, the term of such Agreement shall commence
on the Order Form Effective Date and shall continue for the period of the applicable Initial Services
Term and, if renewed in accordance with this clause, for the applicable renewal period, unless earlier
terminated as provided in this GSA or the applicable Order Form. An Agreement may be renewed at the
end of the applicable Initial Services Term only upon mutual written agreement of the parties. If
an Agreement is not renewed, then it will automatically expire at the end of the applicable Initial
Services Term.
		 
	3. 	Services
		 
	3.1	General
		 

	(a) 	Implementation of the Services on the Site is conditional upon the Site being wholly owned and operated
exclusively by Customer. Customer may modify or add additional URLs to those comprising the Site
with Google’s prior written consent.
		 
	(b) 	Certain Services may include Beta Features. Customer acknowledges and agrees that Beta Features are
provided “as is” and any use of them shall be solely at Customer’s own risk. Google
reserves the right, in its sole discretion, to include or cease providing Beta Features as part of
any Services at any time.
		 
	3.2	Websearch Services (if ordered)
		 
	(a)	Google shall, from the Launch Date:

-5 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

		 	 
		(i) 	for each Valid Query received by it, where available transmit to Customer a set of up to [***] Websearch
Results;
			 

		(ii) 	if ‘Language Restrict’ is enabled by Customer in accordance with the instructions provided
by Google in the applicable Google Data Protocol, assist Customer in limiting Websearch Results to
web pages in the language(s) specified on the Order Form;
			 

		(iii) 	if ‘Country Restrict’ is enabled by Customer in accordance with the instructions provided
by Google in the applicable Google Data Protocol, assist Customer in limiting Websearch Results to
web pages served from the country(ies) specified on the Order Form; and
			 
		(iv) 	if ‘Safe Search’ is enabled by Customer [***]
			 
		(v) 	within [***] of the end of each month during the Services Term, provide Customer with WebSearch Services
usage reports in the form generally made available at that time or as otherwise may be provided online.
			 
	(b)	Customer acknowledges and agrees that:

		 	 
		(i) 	it is Customer’s responsibility to enable the ‘Language Restrict’, ‘Country Restrict’ [***] features in accordance with the instructions provided by Google in the applicable Google Data
Protocol; and
			 
		(ii) 	Google does not commit that all Websearch Results will be limited to the languages and/or countries
specified [***].
			 
	(c)	Customer shall, from the Launch Date:
			 

		(i) 	send all Queries received by Customer from End Users (without editing, modifying, appending additional
search terms to or filtering such Queries individually or in the aggregate) to Google in accordance
with the applicable Google Data Protocol and otherwise in compliance with the requirements stated
in the Agreement for processing by Google;
			 

		(ii) 	implement on the Site a search box which, provided this has been agreed in advance by Google, together
with each Websearch Results Page shall conspicuously display a text and/or graphic module, in a form
provided by Google from time to time, that unambiguously indicates that the Websearch Results are
provided by Google;
			 
		(iii)	display the Websearch Results on the applicable Site; and
			 

		(iv) 	ensure that each Websearch Results Page is [***] in the form set out in the applicable Exhibit(s) to
the applicable Order Form, unless otherwise agreed in writing between the parties.
			 

	(d) 	In the event that Customer uses any Websearch Results in a manner inconsistent with this clause 3.2,
Google shall have the right to suspend Customer’s right to use the relevant Websearch Services
(or any part of them) with immediate effect until such time as, in Google’s reasonable opinion.
Customer has taken all necessary steps to rectify such inconsistent use.

- 6 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

		 	 
	3.3 	AdSense for Search (if ordered)
			 
	(a)	Google shall, from the Launch Date:
		

		 	 
		(i) 	for each Valid Query received by it, where available, provide to Customer an Adsense for Search Set
comprising at least the minimum number of Ads stated in the applicable Order Form for display on
the AdSense for Search Site;
			 

		(ii) 	 [***] 
		 	 
		(iii) 	within [***] of the end of each calendar month during the Services Term, provide Customer with AdSense
for Search revenue reports in the form generally made available at that time or as otherwise may
be provided online.
			 
	(b)	Customer shall, from the Launch Date:
			 

		(i) 	for any and all Queries received by Customer from End Users, (without editing, modifying, appending
additional search terms to or filtering such Queries individually or in the aggregate) send such
Queries to Google in accordance with the applicable Google Data Protocol;
			 

		(ii)	[***]
			 
		(iii)	[***]

		 	 
		(iv) 	ensure that no AdSense for Search Sets requests sent by Customer to Google contain information that
is or may be personally identifiable;
			 

		(v) 	display each AdSense for Search Set to End Users on the relevant Site page and ensure that each Site
page containing any AdSense for Search Set(s) shall conform to the specifications stated in the applicable
Order Form;
			 
		(vi) 	ensure that its implementation of the AdSense for Search Services is in all material respects in the
form set out in the applicable Exhibit(s) to the applicable Order Form, unless otherwise agreed in
writing between the parties;
			 
		(vii) 	unambiguously mark each AdSense for Search Set as “Sponsored Links” or other equivalent designation
indicating that the Ad(s) contained in the AdSense for Search Set are linked advertisements, and
distinct from search results;
			 
		(viii) 	place on each Site page on which an AdSense for Search Set is displayed a link in the form provided
by Google from time to time that contains the Google logo, text [***] such link to be placed Above-the-Fold
and in accordance with the specifications stated in the applicable Order Form;
			 
		(ix) 	not hinder, truncate or obstruct in any way the display of the full text of any Ad as provided by Google
(including without limitation through the use of pop-ups, pop-unders or similar graphical units).

- 7 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

		 
	(c)	Customer shall:
		 	 
		(i) 	not set up, configure or implement the Site(s) or any successor Sites in such a way that they include [***] 
			 
		(ii) 	implement the AdSense for Search Services in such a way that all search queries submitted by End Users
via the Site(s) are sent to Google by the applicable Google Data Protocol so as to generate a request
for AdSense for Search Set in accordance with the Agreement.
			 
	3.4	AdSense for Content (if ordered)
	 	
	(a)	Google shall, from the Launch Date:
	 	

		(i) 	for each Valid Request received by it in accordance with the applicable Google Data Protocol, where available provide an AdSense for Content Set to Customer for display on the AdSense for Content Site;
			 
		(ii)	[***]

		 	 
		(iii) 	within [***] of the end of each month after the Launch Date during the Services Term, provide Customer
with AdSense for Content revenue reports in the form generally made available at that time or as
otherwise may be provided online.
			 
	(b)	Customer shall, from the Launch Date:

		 	 
		(i) 	ensure that the AdSense for Content Services are implemented on the AdSense for Content Site in accordance
with the applicable Google Data Protocol and Google’s technical requirements and specifications
as notified to Customer from time to time so that each time an End User accesses a web page on the
AdSense for Content Site this will generate a Valid Request to Google;
			 
		(ii) 	ensure that each AdSense for Content Set conforms to the specifications stated in the applicable Order
Form and that its implementation of the AdSense for Content Services is in all material respects
in the form set out in the applicable Exhibit(s) to the applicable Order Form, unless otherwise agreed
in writing between the parties;
			 
		(iii) 	in the event that the AdSense for Content Site requires user authentication [***];
			 
		(iv) 	ensure that no AdSense for Content Sets are displayed on any Site pages which contain web search results,
private email, newsletters or community content (including, but not limited to, message boards),
consist of slide show pages or gallery pages or chat pages, consist primarily of other advertising,
are personal web pages, registration pages, “thank you” or error pages, exist behind password
protected areas, contain pornographic, obscene or excessively profane content or content intended
to advocate or advance computer hacking or cracking, gambling, illegal activity, drug paraphernalia,
hate, violence or racial or ethnic intolerance or which Google has otherwise notified Customer are
pages of a type on which the display of AdSense for Content Sets is not allowed.

- 8 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

		 	 
	(c)	Customer shall not:
		 	 
		(i) 	Implement the AdSense for Content Services on the AdSense for Content Site in such a way that more
than [***] is generated per page view, unless agreed in writing in advance by Google;
			 
		(ii) 	display more than [***] AdSense for Content Set per web page on the AdSense for Content Site, unless
agreed in writing in advance by Google;
			 
		(iii) 	edit, modify or disable its AdSense for Content Services implementation (or any portion thereof) at
any time;
			 
		(iv) 	minimise, edit or remove any AdSense for Content Set(s) or any Ad(s) contained in such AdSense for
Content Set(s) from display unless approved in writing in advance by Google; or
			 
		(v) 	hinder, truncate or obstruct in any way the display of the full text of any Ad as provided by Google
(including without limitation through the use of pop-ups, pop-unders or similar graphical units);
			 

	(d) 	Customer shall keep Google informed of all planned material changes to the design and content of the
AdSense for Content Site and as early in the process as is feasible identify to Google any additional
advertising inventory in any newly created area of the AdSense for Content Site. Customer and Google
shall cooperate in identifying those portions, if any, of the additional inventory on which Customer
would seek to implement AdSense for Content Services.
		 
	3 5	Implementation  of Services
		 

	(a) 	For each Agreement, the parties will each use their reasonable endeavours to assist each other in implementation
of the Services on the Site and to ensure that the Launch Date is reached in an estimated time frame
of [***] from the Order Form Effective Date or such other longer time frame as agreed between the
parties in writing. Customer acknowledges that in order for such estimated time frame to be met Customer
will have to ensure that it complies with all Google’s technical requirements in relation to
such implementation.
		 
	(b) 	For each Agreement, once Google’s technical and account management personnel are satisfied that
Customer has properly implemented the Services on the Site in accordance with Google’s technical
and branding requirements and otherwise in accordance with the Agreement and have approved the implementation
(such approval not to be unreasonably withheld or delayed), then Google will notify Customer that
it may put its implementation of the Services (as approved by Google) into live use. This notification
will be by way of e-mail or such other means as Google shall reasonably decide. Customer will not
put its implementation of the Services into live use until it has received this notification from Google.
		 
	(c) 	Google grants to Customer a non-exclusive and non-sublicensable licence during the applicable Services
Term to use the applicable Google Data Protocol(s) as supplied to Customer by Google solely for the
purpose of implementing the applicable Services and transmitting Queries and other required information
to Google in accordance with Google’s technical requirements as notified to Customer from time
to time.
		 
	(d) 	Unless otherwise agreed between the parties in writing, Customer’s implementation of the applicable
Services shall be in all material respects in the form set out in the applicable Exhibit(s) to the
applicable Order Form(s). Customer will not make any material changes to the implementation of the
Services without Google’s prior written agreement. Material changes to the implementation will
include (but not be limited to) [***]

- 9 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	(e) 	Customer shall ensure that all Services are implemented in accordance with the applicable Google Data
Protocol(s) and in accordance with Google’s technical requirements for such Services as notified
to Customer from time to time. Once the Services have been implemented, Customer will not make any
changes which might affect the implementation of the Services on the Site [***] prior written notice
to Google.
		 
	(f) 	Customer will use Client IDs as instructed by Google and will provide such information to Google as
Google may reasonably request with respect to the use and application of any Client IDs.
		 
	(g) 	Google shall have the right to modify any Google Data Protocol(s) and/or technical specifications at
any time in its sole reasonable discretion. Where applicable, Customer shall implement such modifications
no later than [***] after receipt thereof.
		 
	(h) 	For each Agreement, during the applicable Services Term, the parties shall meet (or, if agreed, hold
a conference call) at such times and dates as agreed from time to time to discuss service performance [***]
		 
	4. 	Support Services
		 

	 	For each Agreement, Google shall provide technical support services to Customer during the applicable
Services Term in accordance with Google’s support guidelines in effect from time to time. Prior
to making any support request to Google, Customer shall first use its best endeavours to fix any
error, bug, malfunction, or network connectivity defect on its own without any escalation to Google.
Thereafter, the ‘Technical Contact’ indicated on the applicable Order Form may submit a request
for support via email to, or such other email address that Google may provide with advance notice
from time to time.
		 
	 	Customer shall provide support services to End Users at its own expense. Google shall not be responsible
for providing any End User support services.
		 
	5.	Customer’s Obligations
		 
	5.1	Customer shall not, and shall not allow any third party to:
		 

	(a) 	edit, modify, truncate, add content to, change the order of the information contained in or filter
any Websearch Results and/or Advertising Results Set without Google’s prior written consent, [***]
		 
	(b)	frame:
		 

	 	(i)	any Site page containing any
Advertising Results Set and/or any Websearch Results; 
			 
	 	(ii)	any Destination Page; and/or 
			 
	 	(iii)	any Websearch Results;
			 

	(c) 	[***]
		 

	(d) 	display any Websearch Results and/or Advertising Results Sets to any third parties other than End Users;

- 10 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	(e) 	enter into any arrangement or agreement under which any third party pays Customer fees or shares in
any revenue payments and/or royalties for any Websearch Results and/or Advertising Results Sets displayed
on the Site;
		 
	(f) 	display any Websearch Results and/or Advertising Results Sets in pop-up, pop-under, exit windows, expanding
buttons, or animation or other similar methods;
		 
	(g) 	minimise, remove or otherwise inhibit the full and complete display of any Site page which includes
any Websearch Results and/or Advertising Results Sets and/or Ads, and the corresponding Destination
Pages accessed by clicking on any portions thereof;
		 

	(h) 	directly or indirectly generate impressions of or clicks on Advertising Results Sets through any automated,
deceptive, fraudulent or other invalid means (including, but not limited to, click spam, query spam,
robots, macro programs, and internet agents);
			 

	(i) 	encourage or require End Users or other persons, either with or without their knowledge, to generate
impressions of or to click on Advertising Results Sets through offering incentives or any other methods
that are manipulative, deceptive, malicious or fraudulent;
		 

	(j) 	provide End Users with access to any Websearch Results and/or Advertising Results Sets through any
Client Application (except to the extent that such access is provided through a Customer Client Application
in accordance with the terms of the applicable Agreement) or otherwise provide End Users with access
to any Websearch Results and/or Advertising Results Sets other than by displaying such Websearch
Results and/or Advertising Results Sets on a page on the Site in accordance with the applicable Agreement(s);
or
		 

	(k) 	implement any click tracking or other monitoring of clicks on Advertising Results Sets or Advertising
Results.
		 
	5.2 	Customer shall ensure that neither the Site nor the Customer Client Application (if any) contains any
pornographic, hate-related, violent or otherwise offensive content or contains any other material,
products or services that violate or encourage conduct that would violate any criminal laws, any
other applicable laws, or any third party rights.
		 
	5.3 	Customer shall not, and shall not allow any third party to:
		 

	(a) 	modify, adapt, translate, prepare derivative works from or decompile, reverse engineer, disassemble
or otherwise attempt to derive source code from (except to the extent allowed by law) any Services,
the Google Data Protocol(s), or any other Google technology, content, data, routines, algorithms,
methods, ideas design, user interface techniques, software, materials and/or documentation;
		 
	(b) 	remove, deface, obscure, or alter Google’s copyright notice, trademarks or other proprietary rights
notices affixed to or provided or displayed as part of any Services, the Google Data Protocol(s),
or any other Google technology, software, materials and/or documentation;
		 
	(c) 	“crawl”, “spider”, index or in any non-transitory manner store or cache information
obtained from the Services (including, but not limited to, Websearch Results and/or Advertising Results
Sets, or any part, copy or derivative thereof);

- 11 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	(d) 	transfer, sell, lease, syndicate, sub-syndicate, lend, or use for co-branding, timesharing, service
bureau or other unauthorised purposes any Services or access thereto (including, but not limited
to Websearch Results and/or Advertising Results Sets, or any part, copy or derivative thereof);
		 
	(e) 	directly or indirectly access, launch and/or activate the Services through or from any software application
or means other than the Site or the Customer Client Application (if any);
		 
	(f) 	engage in any action or practice that in Google’s reasonable opinion reflects poorly on Google
or otherwise disparages or devalues Google’s reputation or goodwill; or
		 
	(g) 	create or attempt to create a substitute service or product through use of any of the Services or proprietary
information related to them.
		 

	5.4 	Customer shall not place anything on the Site that in any way implies that Google is responsible for
the contents of any Websearch Results or Advertising Results Sets provided by it or for any web sites
accessed via such Websearch Results or Advertising Results Sets.
		 
	5.5 	Customer shall ensure that there is no use of or access to the Services through the Site or the Customer
Client Application (if any) which is not in compliance with the terms of the Agreement or not otherwise
approved by Google, [***] 
		 
	5.6 	Google may send uncompensated test Queries to the Site or the Customer Client Application (if any)
or make uncompensated clicks on any Advertising Results Sets displayed on the Site at any time to
verify Customer’s compliance with any requirements contained in the applicable Agreement(s).
		 
	6.	[***]
		 
	6. 1	[***]
		 
	7.	Intellectual Property Rights
		 

	7.1 	Google shall own all right, title and interest, including without limitation all Intellectual Property
Rights, relating to the Services (and any derivative works or enhancements thereof), including but
not limited to, all software, technology, information, content, materials, guidelines, documentation,
and the Google Data Protocol(s). Customer shall not acquire any right, title, or interest therein,
except for the limited use rights expressly set forth in the Agreement. Any rights not expressly
granted herein are deemed withheld.
		 
	7.2 	Customer, its licensors, or other applicable third party providers shall own all Intellectual Property
Rights in and to Customer Content. Google shall not acquire any right, title or interest in or to
Customer Content, except as provided in this GSA and/or any applicable Order Form.
		 
	8.	Trade mark licence
		 

	8.1 	Each party shall own all right, title and interest, including without limitation all Intellectual Property
Rights, relating to its Brand Features.

- 12 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	8.2 	For each Agreement Google hereby grants to Customer a non-exclusive and non-sublicensable licence during the applicable Services Term to display the Google
name and logo and such other of the Google Brand Features as expressly authorised by Google in the
applicable Agreement on the applicable Site solely for the purposes of fulfilling Customer’s
obligations to Google as stated in the applicable Agreement and provided that all such use by Customer
is in accordance with the agreed implementation of the Site as set out in the applicable Order Form
(or as varied by agreement in writing between the parties from time to time) and Google’s reasonable
instructions from time to time.
		 
	8.3 	Customer shall ensure that: a) all use by Customer of the Google Brand Features; and b) Customer’s
implementation of the Services, including but not limited to each Websearch Results Page and each
page on which AdSense for Search Sets or AdSense for Content Sets are displayed, complies with Google’s
then current Google Branding Guidelines and any content contained or referenced therein, which may
be found at the following URL: (or such other URL Google may provide from time to time.
		 
	8.4 	Customer hereby grants to Google a non-exclusive and non-sublicensable licence during the term of this
GSA to include Customer’s name and logo in presentations, marketing materials and customer lists
(including, but not limited to, in customer lists posted on Google’s web sites and in screen
shots of Customer’s implementation of the Services).
		 
	8.5 	Except as stated in this GSA and/or any applicable Order Forms, neither party acquires any right, title
or interest in or to the other party’s Brand Features. All use by Google of Customer Brand Features
(including any goodwill associated therewith) shall inure to the benefit of Customer and all use
by Customer of Google Brand Features (including any goodwill associated therewith) shall inure to
the benefit of Google. No party shall challenge or assist others to challenge the Brand Features
of the other party (except to protect such party’s rights with respect to its own Brand Features)
or the registration thereof by the other party, nor shall either party attempt to register any Brand
Features or domain names that are confusingly similar to those of the other party.
		 
	8.5 	Either party may revoke the licence granted by it to the other under clause 8.2 or 8.3 above (as applicable)
at any time [***] 
		 
	8.6 	Subject to clause 13, neither party will issue any press release regarding the existence or content
of this GSA or any Agreement without the other party’s prior written approval.
		 
	9.	Payment
		 
	The fees and payment terms for all Services shall be as set out in this clause 9 unless expressly stated otherwise in the applicable Order Form.
		 
	9.1	Search Services (if ordered)
		 
	[***]
		 

	9.2 	AdSense for Search Services (if ordered) and/or AdSense for Content Services (if ordered)
	 

	 	Google shall pay to Customer [***]

- 13 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	9.3	All AdSense Services (if ordered)
	 	 
	[***]
		 
	9.4 	All Services
		 

	(a) 	All payments under the Agreement are exclusive of taxes imposed by any governmental entity. [***]
		 
	(b) 	Google’s obligation to pay Customer shall commence on the Launch Date.
		 
	(c) 	All payments due to Google or to Customer shall be in the currency specified in the applicable Order
Form.
		 
	(d) 	Payments to Google shall be made by telegraphic transfer to the account notified to Customer by Google
for that purpose.
		 
	(e) 	Payments to Customer (if by telegraphic transfer) shall be made to the account notified to Google by
Customer for that purpose. Customer acknowledges that Google may, at its option, set off any payment
obligations to Customer it may incur under any Agreement against any fees owed and not yet paid by
Customer under that Agreement and/or any other Agreement(s) and/or any other agreements between Google
and Customer, in addition to any other rights and remedies Google may have. [***] In addition,
Google reserves the right to withhold and offset against its payment obligations under any Agreement,
or to require Customer to repay to Google within [***] of request for such repayment, any amounts
which Google may have previously overpaid to Customer in relation to any Agreement.
		 
	10.	Warranties
		 

	10.1 	Each party warrants to the other that it has full power and authority to enter into this GSA and any
applicable Agreement(s).
		 
	10.2 	Google warrants to Customer that it will provide the Services with reasonable care and skill.
		 
	10.3 	Customer warrants to Google that:
		 

		(a) 	it shall only use information provided by Google (including Websearch Results and/or Advertising Results
Sets) in a manner that complies with applicable laws; and
			 
		(b) 	it will use reasonable care and skill in complying with its obligations under this GSA and any Agreement(s).
			 

	10.4 	Google does not warrant that the Services (or any of them) will meet all of Customer’s requirements
or that performance of the Services (or any of them) will be uninterrupted, virus-free, secure or
error-free.

- 14 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	10.5 	No conditions, warranties or other terms apply to any Services or to any other goods or services supplied
by Google under this GSA and/or any Agreement(s) except to the extent that they are expressly set
out in this GSA and/or the applicable Agreement(s). Subject to clause 12.1, no implied conditions,
warranties or other terms apply (including any implied terms as to satisfactory quality, fitness
for purpose or conformance with description).
		 
	10.6 	Google will not be liable for any breach of warranty under this GSA or any Agreement(s) to the extent
that the breach of warranty concerned results from a failure by Customer to fulfil its obligations
under this GSA or any Agreement(s).
		 
	11.	Indemnities
		 

	11.1 	Google shall defend, or at its option settle, any court proceedings brought by a third party against
Customer based upon or otherwise arising out of a claim that [***]
		 
	11.2 	In no event shall Google have any obligations or liability under this clause 11 arising from:
		 

		(a) 	use of any Beta Features;
		 	 
		(b) 	use of the Services or Google Brand Features in a modified form or in combination with materials not
furnished by Google, or
			 
		[***]
		

		 
	11.3 	Google, in its sole and reasonable discretion, reserves the right to terminate Customer’s continued
use of any Services or Google Brand Features which are alleged or believed by Google to infringe
any third party’s Intellectual Property Rights.
		

		11.4 	Customer shall defend, or at its option settle, any court proceedings brought against Google by a third
party based upon or otherwise arising out of:
			 

		(a) 	the Customer Content, Site, [***] (if any) and/or Customer Brand Features infringe any copyright,
trade secret or trademark of such third party;
			 
		(b) 	Google’s use of any Customer Content in compliance with this GSA and/or the applicable Agreement(s);
and/or
			 
		(c) 	Customer’s use of the Services in any manner inconsistent with or in breach of this GSA and/or
any applicable Agreement(s).
			 

	11.5 	Indemnification under this clause 11 shall be limited to payment by the indemnifying party of all damages
and costs finally awarded for such claim, or settlement costs approved in writing by the indemnifying
party.
		 
	11.6 	The indemnification obligations under this clause 11 shall exist only if the party seeking indemnification:
		 

	 	(a) 	promptly notifies the indemnifying
party of such claim;

- 15 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

		 	 
		(b) 	provides the indemnifying party with reasonable information, assistance and cooperation in defending
the lawsuit or proceeding; and
			 
		(c) 	gives the indemnifying party full control and sole authority over the defence and settlement of such
claim. The indemnified party may appoint its own supervising counsel of its choice at its own expense.
			 

	11.7 	The indemnifying party shall only reimburse the indemnified party for expenses incurred by the indemnified
party with the indemnifying party’s prior written approval.
		 
	11.8 	This clause 11 states the parties’ entire liability and exclusive remedy with respect to infringement
of a third party’s intellectual Property Rights.
		 
	12.	 Limitation of Liability
		 
	12.1	Nothing in this GSA or any Agreement shall exclude or limit either party’s liability for:
		 

		(a) 	death or personal injury resulting from the negligence of either party or their servants, agents or
employees;
			 

	 	(b)	fraud or fraudulent misrepresentation;
			 
	 	(c)	breach of any implied condition
as to title or quiet enjoyment;
			 
	 	(d)	misuse of confidential information,
			 

	12.2 	Save to the extent that this GSA or any Agreement expressly states otherwise, nothing in this GSA or
any Agreement shall exclude or limit either party’s liability for breach of [***]
		 

	12.3 	Subject to clauses 12.1 and 12.2 but notwithstanding clause 12.4 and 12.5, neither party shall be liable
in contract, tort (including, without limitation, negligence, pre-contract or other representations
(other than fraudulent misrepresentation) or otherwise arising out of or in connection with this
GSA and/or any Agreement for:
		 

		(a) 	any economic losses (including, without limitation: loss of revenues, profits, contracts, data, business,
anticipated savings or cost of substitute services);
			 

	 	(b)	any loss of goodwill or reputation;
or
			 
	 	(c)	any special, indirect or consequential
losses;
			 
	 	in any case, whether or not such losses were within the contemplation of the parties at the date of
this GSA and/or the applicable Agreement, suffered or incurred by that party arising out of or in
connection with the provisions of, or any matter under, this GSA and/or the applicable Agreement.

- 16 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	12.4 	Subject to clauses 12.1, 12.2 and 12.3, each party’s total liability  in relation to all events or series of connected events occurring in any given calendar year arising
from or in connection with any particular Agreement and in relation to anything which the party concerned
may have done or not done in connection with such Agreement (whether the liability arises because
of breach of contract, negligence or for any other reason and including any liability that arises
or exists by reason of the unenforceability or invalidity of any term of any Agreement) shall be
limited to:
		 

		[***]
	 

	12.5 	Subject to clauses 12.1, 12.2 and 12.3, each party’s total aggregate liability  arising from or in connection with any particular Agreement and in relation to anything which the
party concerned may have done or not done in connection with such Agreement (whether the liability
arises because of breach of contract, negligence or for any other reason and including any liability
that arises or exists by reason of the unenforceability or invalidity of any term of any Agreement)
shall be limited to:
		 
		[***]
		 
	13. 	Confidentiality

	 	 
	13.1 	Subject to clause 13.2 below, disclosure of confidential and/or proprietary information pursuant to
this GSA and/or any Agreement (including the existence and content of this GSA and/or any Agreement)
shall be governed by the NDA which is hereby incorporated into this GSA and each Agreement by reference.
In the event of any conflict between the NDA and this GSA or any applicable Order Form, the provisions
of this GSA or the applicable Order Form will take precedence.
		 
	13.2 	Customer understands and agrees that, notwithstanding anything to the contrary in the NDA, [***] Such
disclosure of information shall be subject to the terms of the Google Privacy Policy located at,
or such other URL as Google may provide from time to time, and shall not include “personally
identifying information,” as described in such Google Privacy Policy.
		 
	14.	Term and Termination
		 

	14.1 	This GSA shall commence on the GSA Effective Date and remain in force until it terminates or expires
in accordance with its terms.
		 
	14.2 	Either party may suspend performance and/or terminate any Agreement, in whole or in part, with immediate
effect, if the other party:
		 

		(a) 	is in material breach of the Agreement
where the breach is incapable of remedy; or
			 

		(b) 	is in material breach of the Agreement where the breach is capable of remedy and fails to remedy that
breach within [***] after receiving written notice of such breach.
			 

	14.3 	Either party may suspend performance and/or terminate this GSA (and all Agreements entered into in
accordance with it) with immediate effect, if:

- 17 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

		 	 
		(a) 	a meeting of creditors of the other party is held or an arrangement or composition with or for the
benefit of its creditors (including a voluntary arrangement as defined in the Insolvency Act 1986)
is proposed by or in relation to the other party;
			 
		(b) 	a chargeholder, receiver, administrative receiver or other similar person takes possession of or is
appointed over or any distress, execution or other process is levied or enforced (and is not discharged
within [***] ) on the whole or a material part of the assets of the other party;
			 
		(c) 	the other party ceases to carry on business or is deemed to be unable to pay its debts within the meaning
of section 123 Insolvency Act 1986;
			 
		(d) 	the other party or its directors or the holder of a qualifying floating charge gives notice of their
intention to appoint, or makes an application to the court for the appointment of, an administrator;
			 
		(e) 	a petition is presented (and is not discharged within [***] ) or a resolution is passed or an order is
made for the administration or the winding-up, bankruptcy or dissolution of the other party; or
			 
		(f) 	an event analogous to any of the above happens to the other party in any jurisdiction in which it is
incorporated or resident or in which it carries on business or has assets.
			 

	14.4 	Google may terminate this GSA (and all Agreements entered into in accordance with it) immediately upon
written notice, if:
		 

		(a) 	[***] Google may terminate this GSA (and all Agreements entered into in accordance with it) immediately
upon notice if such breach is incapable of remedy or where such breach is capable of remedy, where
Customer fails to remedy such breach within [***] after receiving written notice of such breach; or
			 
		(b) 	[***]
			 
	14.5	Upon the expiration or termination of this GSA for any reason:
			 

	 	(a)	all rights and licences granted
by each party shall cease immediately; and
			 

		(b) 	each party shall (at the other party’s option) promptly return to the other party, or destroy
and certify the destruction of, all Confidential Information of the other party.
			 

	14.6 	The termination or expiration of an individual Agreement shall not have the effect of terminating any
other Agreement or this GSA unless expressly agreed to by the parties in writing. If an Agreement
(but not this GSA) terminates or expires, all rights and licences granted by Google to Customer relating
to the applicable Services and all other rights and licences granted by Google to Customer in relation
to the applicable Services as stated in such Agreement, if any, shall cease immediately. Termination
or expiration of all Agreements shall result in the expiration of this GSA on the same date on which
the last Agreement terminates or expires.

- 18 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	14.7 	Termination or expiration of this GSA or any Agreement, in part or in whole, shall not: a) limit either
party from pursuing other remedies available to it, or b) affect the accrued rights and obligations
of either party as at the date of such termination or expiry (including without limitation any obligation
to pay fees that have accrued under any Agreement prior to the date of termination or expiry).
		 
	15.	General
		 

	15.1 	Any notices required to be given under this GSA and/or any Agreement shall be in English and in writing
and:
		 

		(a) 	if to Customer, sent to the address/fax number identified for legal notices on the applicable Order
Form;
			 
		(b) 	if to Google, marked for the attention of the Google Legal Department and sent to the following address/fax
number:
			 

	 	[***] 
		 

		(c) 	in either case, sent to such other address/fax number as either party may designate from time to time
in accordance with this clause.
			 

	 	Notices shall be deemed to have been duly served if hand delivered; sent by facsimile (with the original
forwarded by first class post or special delivery); by special delivery within the United Kingdom
and outside the United Kingdom by recorded airmail post; in each case correctly addressed in accordance
with this clause. Any notice pursuant to this clause shall be deemed to have been served:
		 

		(a) 	if hand delivered at the time of delivery by posting through the letter box of the correct addressee
in accordance with this clause;
			 
		(b) 	if sent by facsimile one hour after transmission during business hours at its destination or 24 hours
after transmission if not within business hours but in each case subject to proof by the sender that
it holds an acknowledgement confirming receipt of the transmitted notice in readable form; and
			 
		(c) 	if sent by post 48 hours after posting (excluding Sundays or any applicable bank or public holidays
in the country of posting) if posted to an address within the country of posting and seven days after
posting (excluding Sundays or any applicable bank or public holidays in the country of posting) if
posted to an address outside the country of posting.
			 

	15.2 	Customer shall not assign or otherwise transfer its rights or delegate its obligations under this GSA
and/or any Agreement(s), in whole or in part, without the prior written consent of Google.
		 
	15.3 	[***]

- 19 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	15.4 	Nothing in this GSA or any Order Form(s) shall create or confer any rights or other benefits whether
pursuant to the Contracts (Rights of Third Parties) Act 1999 or otherwise in favour of any person
other than the parties to this GSA and the Order Form(s), except that this clause shall not operate
so as to restrict or limit the rights of any lawful assignee under this GSA or any Agreement to exercise
the rights and benefits conferred on him by his assignor.
		 
	15.5 	Nothing in this GSA or any Order Form shall be construed as creating a partnership or joint venture
of any kind between the parties or as constituting either party as the agent of the other party for
any purpose whatsoever and neither party shall have the authority or power to bind the other party
or to contract in the name of or create a liability against the other party in any way or for any
purpose.
		 
	15.6 	Neither party shall be liable for failure to perform or delay in performing any obligation under this
GSA and/or any Agreement(s) if the failure or delay is caused by any circumstances beyond its reasonable
control, including but not limited to acts of god, war, terrorism, civil commotion, acts of government,
court order, changes to any applicable laws, internet or telecommunications disturbances, industrial
dispute or any failure or delay by the other party to fulfil its obligations under this GSA and/or
any Agreement(s). If such delay or failure continues for at least 30 days, the party not subject
to the force majeure shall be entitled to terminate the applicable Agreement(s) or, at that party’s
discretion, this GSA and all Agreements by notice in writing to the other with immediate effect.
		 
	15.7 	Google reserves the right to suspend or terminate the provision of any Services or parts of any Services
or to vary any Services or parts of Services and/or the manner in which these are provided at any
time in order to comply with any applicable law.
		 
	15.8 	The failure to exercise or delay in exercising a right or remedy under this GSA and/or any Agreement
shall not constitute a waiver of the right or remedy or a waiver of any other rights or remedies
and no single or partial exercise of any right or remedy under this GSA and/or any Agreement shall
prevent any further exercise of the right or remedy or the exercise of any other right or remedy.
The rights and remedies contained in this GSA and any Agreement(s) are cumulative and not exclusive
of any rights or remedies provided by law.
		 
	15.9	The invalidity, illegality or unenforceability of any provision (or part of a provision) of this GSA
and/or any Order Form shall not affect or impact the continuation in force of the remainder of the
provision (where applicable) and this GSA or the applicable Order Form.
		 
	15.10	Subject to clause 12.1(b), this GSA and any Order Form(s) represent the entire terms agreed between
the parties in relation to their subject matter and supersedes all previous contracts or arrangements
or any kind between the parties relating to their subject matter. Each party acknowledges and agrees
that, in entering into this GSA and any Order Form(s) it has not relied on any statement, representation,
assurance or warranty of any person (whether a party to this GSA or not) other than as expressly
set out in this GSA or any Order Form. This GSA and any Order Form(s) may be executed in counterparts,
including facsimile counterparts.
		 
	15.11	Where this GSA and/or any Order Form(s) refer to agreements or approvals to be in writing, at Google’s
sole discretion, this may (where appropriate) include e-mail.

- 20 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	 	 
	15.12 	This GSA and any Order Form(s) shall be governed by and construed in accordance with English law and
the parties hereby submit to the exclusive jurisdiction of the English courts in respect of any dispute
or matter arising out of or connected with this GSA and/or any Order Form(s). If this GSA or any
Order Form is translated into any other language and if there is a discrepancy in interpretation
between the English text and the text of such other language, the English text will govern.
		 
		Signed by the parties on the dates shown below. 
		 

	 	 	 
	Google Ireland Limited:	 	Customer: Incredimail Limited 
	 	 	 
	By:  /s/ John Herlihy
 ________________________________________ 	 	By:  /s/ Ofer Adler   /s/ Yacov Kaufman
 ____________________________________________ 
	 	 	 
	Print Name: John Herlihy
 ________________________________	 	Print Name: Ofer Adler    Yacov Kaufman
  ____________________________________
	 	 	 
	Title: Director
 ______________________________________ 	 	Title: CEO, CFO
 __________________________________________ 
	 	 	 
	Date: 30 June 2008
 ______________________________________ 	 	Date: June 29, 2008
 __________________________________________ 

- 21 -

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

				
				
				
				
			
		 	Google SPD rep: [***] 
	Google Services 	Google SPD director: [***] 
	Agreement 	Google sales engineer: [***] 
	ORDER FORM 	Google legal contact: [***] 

Google Ireland Limited

Gordon House

Barrow Street

Dublin 4

Ireland

Tel: 353 1 436 1000

Fax: 353 1 436 1001 

	  
	CUSTOMER (FULL LEGAL NAME): IncrediMail  	GSA Effective Date: 1 July 2008 	NDA Effective Date: 26 March 2008 
	   	corporate contact information: 	technical contact information: 	legal notices to: 
	attention: 	Ofer Adler  	Yuval Hamudut	Yacov Kaufman
	title: 	CEO	CTO	CFO
	
address, city, area,

 postal code, country: 
	
 Or Towers B second floor

4 Hanechoshet St Ramat Hachayal

Tel Aviv 69710, Israel
	
Or Towers B second floor

4 Hanechoshet St Ramat Hachayal

Tel Aviv 69710, Israel
	
Or Towers B second floor

4 Hanechoshet St Ramat Hachayal

Tel Aviv 69710, Israel

	phone: 	+972 3 7696103	+972 3 7696106	+972 3 7696157
	fax: 	+972 3 6474601	+972 3 6474601	+972 3 6445502
	email: 	ofer@incredimail.com	yuval@incredimail.com	yacov@incredimail.com
	Order Form Effective Date: 1 July 2008 	Initial Services Term: 12 months from the Effective Date  

	SEARCH SERVICES

	SEARCH SERVICES 	non-refundable annual service
 and support fee 	monthly search fee minimum
 payment 	search fees
(for all Queries) 

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

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

	ADSENSE SERVICES

	ADSENSE FOR SEARCH 	
Net AdSense for Search

Revenues percentage (%) to

 Customer 
	specifications 
	AdSense for Search Site:

Mystart.incredimail.com 	 	Ads/Results Page min[***]

Above-the-fold: [***] AdWords Link location:

[***]AdWords Link size: as shown in Exhibit [B] 

	optional AdSense for Search features: 	AdSafe 	Placement Targeting 
	(check the applicable boxes) 	level: [***] 	[***] (as shown in exhibits) 

	
Payment
Information Details  
	
currency:
 Dollars 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

GSA Order Form Terms
and Conditions  

“GSA” means the
‘Google Services Agreement’ entered into between Google and Customer with the
‘GSA Effective Date’ stated on this Order Form above.  

	1  	This
Order Form (including any special terms and conditions stated in it) shall be governed by
and incorporates by reference the GSA and all defined terms used in this Order Form have
the same meaning as in the GSA unless this Order Form expressly states otherwise. 

	2  	In
the event of any conflict between any special terms and conditions set out in this Order
Form and the GSA, the special terms and conditions set out in this Order Form will take
precedence. 

	3  	Unless
otherwise agreed between the parties in writing, Customer’s implementation of the
applicable Services shall be in all material respects in the form set out in Exhibits A,
B and C to this Order Form and shall comply in all material respects with the
specifications set out in Exhibits A, B, C and D to this Order Form. 

	4  	Linking
to Google Sites: Customer may implement the links shown as "Images", "Video" and
"News" in Exhibit A provided always that: 

	 	a. 	such
links shall link directly to such services (of the same name) as are
                    provided from time to time by Google in the territory of the End User
making the                     request (“Links”); 

	 	b. 	Customer
shall not edit, modify, append or filter, add to or alter End User
                    queries sent via the Links; and 

	 	 	[***]
[***]

	5  	Client
Applications:  

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

This Order Form may be executed in
counterparts, including facsimile counterparts.  

	Google Ireland Limited:

By: /s/ John Herlihy
——————————————

Print name: John Herlihy
Title: Director
Date: June 30, 2008	Incredimail Ltd:

By: /s/ Ofer Adler    /s/ Yacov Kaufman
——————————————

Print name: Ofer Adler,  Yacov Kaufman
Title:   CEO, CFO
Date: June 29, 2008

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

EXHIBIT A
[***]
(4 pages) 

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

EXHIBIT B
[***]
(1 page) 

PORTIONS OF THIS EXHIBIT WERE OMITTED
AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934; [***] DENOTES OMISSIONS. 

EXHIBIT C
[***]
(2 pages)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]