CHAUTAUQUA AIRLINES REPUBLIC AIRLINE SHUTTLE AMERICA

Transcription

1 CHAUTAUQUA AIRLINES REPUBLIC AIRLINE SHUTTLE AMERICA TENTATIVE AGREEMENT FOR A COLLECTIVE BARGAINING AGREEMENT Teamsters Local 357 PROFESSIONAL FLIGHT DECK CREWMEMBERS

2 TABLE of CONTENTS ARTICLES PAGE 1 Recognition and Scope p. 1 2 Definition p. 5 3 Compensation p Scheduling p. 29 6A Reserves p Vacancies p Duration p. 71 NOTE: All other Articles in the existing Collective Bargaining Agreement ( CBA ) remain unchanged, except as specifically provided elsewhere in this Tentative Agreement. LETTERS OF AGREEMENT & MEMORANDUM OF UNDERSTANDING LOA Signing Bonus p. 73 LOA Q400 Aircraft Rates of Pay p. 74 LOA Driving to Training p. 76 LOA Co-Bases p. 77 LOA Hybrid Bases p. 78 LOA Electronic Flight Bags ( EFB ) Implementation p. 79 LOA FAR Part 117 p. 81 LOA CBA Implementation p. 83 MOU Grandfathered Management Pilots p. 85

3 A. National Mediation Board Certification ARTICLE 1 RECOGNITION AND SCOPE Pursuant to the certification by the National Mediation Board in Case No. R-6199, dated July 30, 1993, the Company hereby recognizes the International Brotherhood of Teamsters, Airline Division, as the duly designated and authorized representative of the Pilots in the employ of the Company for the purposes of the Railway Labor Act, as amended. B. Purpose of Agreement The purpose of this Agreement is in the mutual interest of the Company, the Union, and the Pilots in the employ of the Company to provide for the operation of the Company under methods which will further, to the fullest extent possible: the safety of air transportation, the efficiency of operation, and the continuation of employment of Pilots under conditions of reasonable working conditions and proper compensation, and maintain profitability of the carrier. It is recognized to be the duty of the Company, the Union, and the Pilots to cooperate fully for the attainment of these purposes. C. Sole Agreement D. Scope 1. This agreement shall supersede all existing or previously executed Agreements by and between the Company and the Union or any other labor organization or individual with respect to the rates of pay, rules, or working conditions specifically covered by the provisions of this Agreement in accordance with the provisions of the Railway Labor Act, as amended. Any and all subsequent agreements between the parties shall be reduced to writing, signed by their authorized representatives, and become a part of this Agreement. 2. Whenever the words "Pilot(s)", "employee(s)", or "crew member(s)" are used in this Agreement, they designate and refer to only such Pilots as covered by this Agreement. It is further recognized that whenever in this Agreement Pilots or jobs are referred to in either the masculine or feminine gender, it shall be understood to mean both male and female Pilots. It is further understood that there shall be no discrimination by either party against any Pilot who is now, or may become, subject to the terms of this Agreement because of age, race, sex, color, religion, national origin, handicap or disability. 1. This Agreement covers the Company, any Subsidiary of the Company, the Company s Parent, any Subsidiary of the Company s Parent, any future airline certificate(s) created as a Subsidiary of the Company or of the Company s Parent, and, subject to paragraph H of this Article, any future airline acquired as a Subsidiary of the Company or the Company s Parent. 2. Except as otherwise provided in this Agreement, all present and future flying (including that international flying which originates or terminates within the United States or its possessions) and all charters, ferry flights (not including ferry flights of newly-acquired aircraft prior to being placed in revenue service), training flights, test flights, (except test flights assigned to management), or other utilization of aircraft by or for the Company, the Company s Parent or any Subsidiary of the Company or Subsidiary of the Company s Parent shall be performed by Pilots on the Republic Airways Pilots System Seniority List in accordance with the terms and conditions of this Agreement or any other applicable agreement between the Company, the Company s Parent or any Subsidiary of the Company s Parent and the International Brotherhood of Teamsters, Airline Division. 3. The Company, Subsidiary of the Company, the Company s Parent or Subsidiary of the Parent shall not establish any new airline (alter ego or otherwise) or acquire a Controlling Interest in any carrier whether directly or through the Parent or another Subsidiary of the Parent, and maintain it as a separate carrier. A Controlling Interest or Control means the ownership of an equity interest representing more than fifty percent (50%) of the outstanding capital stock of an entity or voting securities representing more than fifty percent (50%) of the total voting power of outstanding securities then entitled to vote generally in the election of such entity s board of directors or other governing body.

4 4. The Company will not transfer aircraft, or operating authority to its Parent, a Subsidiary of the Parent, or to a Subsidiary of the Company for the purpose of evading the terms of this Agreement. The Company will also not establish a third party leasing device to evade the terms of this Agreement. E. Foreign Bases The Company shall not establish a Pilot Base outside of the 48 Contiguous United States and the District of Columbia without providing advance, written notice to and bargaining with the Union at least sixty (60) days prior to any bid establishing such Base. If the Company and the Union cannot reach agreement on the terms and conditions of the foreign base operation within sixty (60) days, Crewmembers assigned to such Base shall be covered by all terms of this Agreement and the dispute shall be handled in accordance with the procedures set forth in Article 21 (New Aircraft) of this agreement. In any proceeding related to the enforcement of the obligations of this paragraph, the Company will not raise non-applicability of the Railway Labor Act as a defense. Disputes concerning Crewmembers based at foreign Bases shall be heard by the System Board of Adjustment, as set forth in this Agreement, and the decision of the System Board in such cases shall be enforceable in any court of competent jurisdiction in the United States to the same extent and in the same manner as other cases arising out of interpretation and application of this Agreement. F. Furlough Protection 1. No Pilot on the Republic Airways Pilots Seniority List as of the date of signing of this Agreement shall be furloughed, except as may be otherwise provided in Article 1.F.2., below. 2. The Company shall be excused from compliance with the provisions of Article 1.F.1., above to the extent that a circumstance over which the Company does not have control is the cause of such noncompliance. The term circumstance over which the Company does not have control means a natural disaster, a work stoppage by a union-represented employee group at the Company or at an Air Carrier whose designator code the Company utilizes in holding out its services to the public, grounding of a substantial number of the Company s aircraft by a government agency or by voluntary action of the Company for safety reasons in lieu thereof; reduction in flying operations because of suppliers being unable to provide sufficient critical materials for the Company s operations, revocation of the Company s operating certificate(s), war, terrorism or national emergency, the Company being unable to retain or obtain sufficient aircraft to utilize all Pilots protected from furlough or as a result of adverse economic, market or business conditions which may directly impact the Company s operations. G. Sale/Transfer/Lease of Companies Aircraft The Company or any Subsidiary of the Company, Republic Airways Holdings, Inc. (the Parent) or any Subsidiaries of Republic Airways Holdings, Inc. may not sell, lease or transfer an aircraft to another Air Carrier or entity for the purpose of evading the terms of this agreement. The Company, Republic Airways Holdings, Inc. (the Parent) or any Subsidiaries of Republic Airways Holdings, Inc. may sell, lease or transfer an aircraft to another Air Carrier or entity when the Company no longer requires such aircraft for its operation. H. Successorship and Mergers 1. This Agreement including the rates of pay, rules and working conditions set forth in this Agreement shall be binding upon any successor or assign of the Company unless and until changed in accordance with the provisions of the Railway Labor Act, as amended. For purposes of this paragraph, a Successor or assign shall be defined as an entity which acquires all or substantially all of the assets or equity of a Company through a single transaction or multi-step related transaction which closes within a twelve (12) month period. 2. No contract or other legally binding commitment involving the transfer of ownership or control pursuant to a Successorship transaction, whether by sale, transfer or lease of the Company, Parent or Subsidiary of the Parent, or substantially all of the assets of any individual entity will be signed or otherwise entered into unless it is agreed as a material and irrevocable condition of entering into, concluding and implementing such transaction that this Agreement including the rates of pay, rules and working conditions set forth in this Agreement will be assumed by the successor employer and the successor employer shall employ the employees on the then current Republic Airways Pilots System Seniority List in accordance with the provisions of this Agreement. The Company shall give notice of the existence of this Agreement to any purchaser, transferee, lessee, or assignee of the operation covered by this Agreement or any substantial part thereof. Such notice shall be in writing

5 with a copy to the Union, at the time the seller, transferor, or lessor executes a definitive agreement with respect to a transaction as herein described. 3. In the event of a merger of airline operations between the Company and another Air Carrier, the Company will require, as a condition of any such operational merger, that provisions be included requiring that the surviving carrier shall employ all employees on the Republic Airways Pilots System Seniority List in accordance with the statutory status quo consisting of the rates of pay, rules and working conditions set forth in this Agreement, and to provide for fair and equitable integration of the pre-merger Pilots seniority lists in accordance with Sections 3 and 13 of the Allegheny Mohawk LPPs. 4. Integration of the pilot groups shall not occur until the pilot seniority lists are merged pursuant to procedures as described in H.3 above. 5. The following additional requirements shall be applicable in the event of a merger, purchase or acquisition involving the Company, regardless of the identity of the surviving carrier or whether formerly separate operations are to be integrated. a. Unless and until any operational merger is finally effectuated, the Union will continue to be recognized as the representative of the pre-merger Company Pilots, so long as such recognition is consistent with the Railway Labor Act and any applicable rulings or orders of the National Mediation Board. Recognition of a post-merger representative shall be governed by the Railway Labor Act and by any applicable rulings or orders of the National Mediation Board. b. Subject to applicable securities and other laws and regulations, the Company will review with the Union the details concerning the Company s compliance with the obligations of H.2, H.3 and H.5.a above and matters directly impacting the Pilot group of any material agreements for Successorship transactions in a timely manner reasonably in advance of, but in any event no later than seven days prior to, the execution of any agreement governing the Successorship transaction, provided that no financial or other confidential business information need be disclosed unless suitable arrangements are made for protecting the confidentiality and use of such information. The Company shall provide the Union with a copy of the executed agreement, with financial and other confidential terms not directly impacting the Pilot group redacted to the extent those terms are redacted in filings pursuant to securities and other laws and regulations, no later than seven days following the execution of the Agreement, regardless of whether the agreement will be effective at a later date or that its effectiveness is subject to a condition subsequent to the execution of the agreement. c. The operations of the Company and those of the other Air Carrier shall be kept separate unless and until the processes described in this Section H are completed and the seniority lists of the two pilot groups are integrated in accordance with Sections 3 and 13 of the Allegheny-Mohawk Labor Protective Provisions. During such time of separate operations aircraft and pilots shall not be interchanged without the Union s written consent. d. Until the processes described in paragraph c above are completed, no flight deck crew member covered by this Agreement shall be reduced in status or pay category as an effect of the merger, purchase or acquisition. e. During the period o separate operations Pilots on the Republic Airways Pilots System Seniority List prior to the merger, purchase, or acquisition shall operate all aircraft on hand at the Company, all aircraft on firm order to the Company and all aircraft acquired by the Company other than as a result of the transaction after public announcement of the acquisition in accordance with this Agreement, provided however that nothing herein shall be construed to prevent fleet reductions which are attributable to economic or other reasons and conditions not related to the transaction, or the retirement of existing aircraft in the normal course of business. f. The Company or surviving carrier, if different than the Company, shall meet promptly with the Union upon request to negotiate the implementation of the requirements of this Article.

6 I. Dry/Wet Lease 1. The Company will not enter into any wet lease agreement with or for any other carrier or entities (government, military or commercial) without mutual agreement with the Union. a. No Pilot within the bargaining unit will be reduced in status or lose any income or employee benefits while discussions are taking place or during the period of the wet lease. b. The Union will not disagree to a wet lease solely due to grounding of Company aircraft due to a force majeure event, i.e., governmental action or an act of nature, so long as the Company acts with due diligence to remedy the event. 2. The Company will give the Union at least thirty days notice prior to the effective date of the dry lease of Company aircraft to another Air Carrier or entity pursuant to Section G. At the request of the Union it may review the actual dry lease documents, subject to appropriate confidentiality agreements. J. Expedited Board of Adjustment Procedures The Company agrees to arbitrate any grievance filed by the Union alleging a violation of this Article 1 on an expedited basis directly before the System Board of Adjustment sitting with a neutral arbitrator mutually acceptable to both parties. If a mutually agreed upon arbitrator cannot be selected within three days of the filing, an arbitrator will be selected pursuant to Article 18 (Resolution of Disputes) of this Agreement. The dispute shall be heard no later than 30 days following the submission to the system board (subject to the availability of the arbitrator), and shall be decided no later than 30 days following submission, unless the parties agree otherwise in writing. The Union shall be entitled, upon request, to information reasonably necessary to determine compliance with this section. If necessary, appropriate undertakings for confidentiality will be made by the parties for the provision of such information. The Company shall produce such information within two weeks of the request, unless the parties agree that additional time is necessary. K. Definitions used in Article 1 1. Air Carrier means any Entity which undertakes directly or by lease, or other arrangement, to engage in Air Transportation. 2. Air Transportation and Flying mean interstate, overseas, or foreign Air Transportation or the transportation of mail by aircraft, including wet leases for other carriers or Entities, or contracting for other carriers or Entities (government, military or commercial). 3. Company means Chautauqua Airlines, Inc., Republic Airlines and Shuttle America, Inc. or any other Subsidiary of the Parent or any future airline certificate created or acquired as a Subsidiary of the Parent. 4. Entity means a natural person, corporation, association, partnership, trust or any other form for conducting business. 5. Parent means Republic Airways Holdings, Inc. or any successor of the Parent. 6. Subsidiary means any entity that is controlled by the Company or the Parent as defined above in this Article.

7 ARTICLE 2 DEFINITIONS Active Status A Pilot on the payroll of the Company and subject to work Assignment as a Pilot, or on Paid Day Off (PDO). Any Pilot who is on an approved leave of absence or furlough is not on Active Status. Age-60 Rule The FAR that sets forth the crewing of Pilots when one is 60 or more years of age. Agreement - This Collective Bargaining Agreement between the Company and the Union, and all supplements and Letters of Agreements ( LOAs ) between the Company and the Union. Air Carrier Any entity that undertakes directly or by lease or other arrangement to engage in air transportation. Aircraft See Equipment Type. Aircraft Program Designees ( APD ) - Company Check Airmen certified by the FAA to perform FAA certification Checkrides in lieu of a FAA Inspector. Airport Standby A defined Duty Period during which a Pilot is required by the Company to be at an Airport for a possible Assignment. Assignment (Duty Assignment) Any requirement to perform work or be Available for the Company. Attempt A Segment during which the aircraft brake is released for the purpose of flight but returns prior to completing the flight. Available A Pilot on Company time, Duty or who is not on a leave of absence or otherwise absent from a Day(s) of scheduled Duty, other than paid Vacation or paid Sick Time. Award Displacement Removal of a Pilot from his Trip Pairing for the purpose of completing required OE, minimum experience requirements, or Age-60 Rule. Base (Domicile, Home Base) An airport where Pilots are stationed from which a Pilot s Duty Assignments are calculated to begin and end. Base Month - The designated calendar month in which a Pilot is scheduled to fulfill his annual regulatory qualification requirement, plus ( grace ) or minus ( early ) one month. Base Realignment The movement of flying, other than Month-to-Month changes in the Marketing Schedules, in a Position(s) from one Existing Base(s) to another Existing Base(s) without any increase or decrease in the total number of Positions. Bid - The Displacement Bid, Standing Bid, Monthly Line Bid, Vacation Bid, or other Bid where Pilots may assert their preferences, as set forth in the Agreement. Bid Period (Month) - The period starting from the first day of, to and including the last day of each calendar month of the year, except that for Pilot scheduling and pay purposes, January, February, and March will each be considered a 30-day month through the addition of January 31 and March 1 to the month of February. Leap year results in February being a 31-day month. Bid Schedule (Schedule) - A Pilot s Monthly Schedule, which may consist of scheduled Pairings, training, Reserve Days, contractual Days Off and other Known Absences. Block-In Block-In occurs when the Aircraft comes to rest, the parking brake is set and the main cabin door is opened, with no intent for further Aircraft movement. Block-Out Block-Out occurs when the main cabin door is closed and the parking brake is released, with the intent for Aircraft movement. Block-to-Block (Block-Out to Block-In) The elapsed time between Block-Out and Block-In. Bridge Course (as used in Article 7 for Captain or First Officer) Training for a Pilot moving from one Certificate to another on the same Equipment in the same Status.

8 Buffer - A limitation used by the Company in Pairing construction, Line Construction, SAP, Trip Trades, assignment of Open Time, and other transactions to prevent exceeding FAR limitations. Calendar Day (Day) - Midnight to 2359 Local Domicile Time (LDT). Captain A Pilot who is in command and who is responsible for the manipulation of, or who manipulates, the flight controls of an Aircraft while under way, including takeoffs and landings of such Aircraft, and who is qualified to serve and holds a currently effective airmen s certificate or type rating authorizing him to serve as such a Pilot. Carryover Pairing - A Trip Pairing that begins in one Bid Period and ends in the next Bid Period. Certificate Air Carrier Operating Certificate issued by the FAA and the DOT. Charter An offline or online revenue passenger flight that is not a regularly scheduled flight. Extra Sections are not considered Charter Flights. Chautauqua Pilots System Seniority List When this term appears in the Agreement, it has been replaced by the Republic Airways Pilots System Seniority List. Check Airman - A Pilot who is designated by the Company and authorized by the FAA to administer a Check Event. Check Event (Check, Checkride, Checking) - Any proficiency Check, line Check, oral examination, or other testing or Checking required by the FAA to qualify, re-qualify or maintain qualification to operate an Aircraft. Co-Base - Two or more airports served by the Company located in the same metropolitan area. Establishment of a Co- Base requires mutual agreement of the Company and the Union. Company Check Airman Any Pilot who is designated at the sole discretion of the Company and authorized by the FAA to instruct, train, conduct proficiency Checks and line Checks, but who does not occupy a management position. Such Pilot is considered a Line Pilot and is covered by the Agreement. Composite Line A Bid Schedule utilizing Pairings not assigned to Regular Lines that may consist of Pairings, Reserve Days, Days Off and Known Absences. Consolidation Block Time required by FAR Consolidation means the FAR term Consolidation of Knowledge and Skills. Credit Hour (Credit, Credit Time) - The hourly unit by which Pilots will be compensated as set forth in the Agreement. Credit Window The total of a Pilot s Scheduled Credit Hours and Virtual Credit in a Bid Period. Date of Hire A Pilot s first day of initial ground school training by the Company, as set forth in Article 9 (Seniority), unless otherwise mutually agreed between the Company and the Union. Day See Calendar Day. Day Off A Day free from all Duty required by the Company. Deadhead - Pilots flying, as a non-operating crewmember, or taking surface transportation to or from a flight or operational Assignment at the Company's direction. Default Monthly Bid The method by which a Pilot asserts a preference for a monthly Schedule in lieu of engaging in the Bid process for that Month. Displacement Occurs when a Pilot no longer has the Seniority to hold his Position at his Base due to Base closure, elimination of Equipment Type within his Base, removal of Aircraft from his Base, or resulting from a more Senior Pilot from another Base or Position taking his Position. Distance Learning Any training, including computer-based training, required by the Company to be performed by the Pilot away from a Company provided training facility. Domestic The forty-eight (48) contiguous United States of America and the District of Columbia.

9 Domicile See Base. Downbid A Bid for Equipment with a lower Pay Rate than the Pilot s current Equipment, in the same Status. Downgrade Changing Status from Captain to First Officer. Drug Testing Approved testing for the improper use of alcohol, controlled or prohibited substances, as required by the DOT, FAA or Company. Dry Lease An agreement with another Air Carrier in which the Company provides Aircraft to the other Air Carrier. Duty A requirement to perform work or be Available to perform work for the Company. Duty Assignment see Assignment. Duty Day - A Calendar Day in which a Duty Period begins or ends, including any Calendar Day scheduled for training or other Company directed business. Duty Period - The elapsed time from when a Pilot is required to Report for Duty or the actual Report time, whichever is later, until when the Pilot is Released from Duty. Equipment Type (Aircraft, Equipment) The make and model of Aircraft. For purposes of the Agreement, Aircraft with a common type rating, e.g., EMB 135, EMB 140 and EMB 145 shall be considered a single Equipment Type, although they represent three different Aircraft. Existing Base A Base existing on the effective date of the Agreement or, in the case of a New Base, 12-months after the effective date of the first Captain Vacancy Award at the New Base. Extra Section One or more Segments added to the Company s flight schedule beyond the original planned flight schedule. Fatigue A physiological state of reduced mental or physical performance capability resulting from lack of sleep or increased physical activity that can reduce a Pilot s alertness and ability to safely operate an Aircraft or perform safetyrelated duties. Fill-in Pilot A qualified Pilot filling in as either Captain or First Officer during a Simulator Event. Final Award (Final Bid Award) The Schedule awarded to the Pilot after Line Construction is complete. First Officer A Pilot who is second-in-command and who is responsible for the manipulation of, or who manipulates, the flight controls of an Aircraft while under way, including takeoffs and landings of such Aircraft, and who is qualified to serve and holds a currently effective airman s certificate or type rating authorizing him to serve as such a Pilot. Flight Duty Period ( FDP ) A period of time that begins when a Pilot is required to Report for Duty with the intention of conducting a flight, a series of flights, or positioning or ferrying flights, and ends when the Aircraft is parked after the last flight and there is no intention for further Aircraft movement by the same Pilot. An FDP includes the duties performed by the Pilot on behalf of the Company that occur before a Segment or between Segments without a required intervening Rest Period. Flight Pay - PCH plus other Credits (e.g., training, sick leave, home study, customs). Flight Time See Block-to-Block. Full Course (as used in Article 7 for Captain or First Officer) Training for a Pilot moving from one Certificate to another in addition to required Transition Training. Ground Time The time an aircraft spends on the ground, Block-In to Block-Out, between Segments. Hardship Transfer The joint approval by the Company and the Union for a Pilot to vacate his Position and/or Base for extenuating personal circumstances. Home of Record the geographic location designated by a Pilot for transportation purposes.

10 Home Study See Distance Learning. Hot Reserve See Airport Standby. Hub The following airports are so designated: CLT, DCA, DEN, DTW, EWR, IAD, IAH, JFK, LGA, MSP, ORD and PHL. This list may be amended from time-to-time by mutual agreement between the Company and the Union. Immediate Family Member - The employee, spouse, dependent children (including legally adopted) under age 21, and parents of the employee. Initial Award (Initial Bid Award) A Schedule consisting of known Trip Pairings, training days, Reserve Days, Days Off and Known Absences. Instructor Pilot - A Pilot who conducts training for the Company. International - Any point or geographic area outside of the forty-eight (48) contiguous states and the District of Columbia. Junior Having less Seniority than another Pilot(s). Known Absence - any planned leave, Vacation, Training, Simulator Event or other event listed in paragraph E.8.a.ii of Article 6 (Scheduling) used in Line Construction Leg See Segment Legacy Republic Pilot A Pilot on the Seniority List prior to the seniority integration arbitration of November 5, Line Any of a Regular Line, Reserve Line, Composite Line or SDP Line. Line Bid A Pilot asserting his preferences for creating his Schedule for the next month. Line Construction The process of building Trip Pairings, Reserve Days, Days Off, Known Absences and Pre- Awarded Assignments (e.g.training) into a Pilot s Schedule. Line Pilot - A Pilot who is not a Management Pilot, as described in the Agreement, and who is covered by the Agreement. Line Value - The time value of a Pilot s Final Bid Award consisting of scheduled Block Time or actual Flight Time, whichever is greater, inclusive of the value of any Assignments to training, to include paid sick/vacation leave and other Known Absences that may be adjusted for Trip trades, Trip drops or Trip adds. Lineholder A Pilot who is awarded a Regular Line, Composite Line or SDP Line. Lock (Seat Lock) A restriction on a Pilot s ability to Bid to fly another Equipment Type or change Certificates, triggered by specific Training Events. Long Call Reserve ( LCR ) LCR is an Assignment wherein a Pilot is subject to be contactable by the Company during his RCP.. Longevity - The period of time a Pilot has actively served as a Pilot with the Company. Longevity commences on the Pilot s first day of initial ground school training, as specified in Article 9 (Seniority). Maintenance Base A location where the Company has facilities to regularly perform maintenance on Company Aircraft. Marketing Schedule The scheduled flying for the Company to perform, as provided by the Company s partners in advance of each Bid Period. Management Pilot A Pilot designated by the Company to be responsible for managing Pilots and administering Company policy. Month - See Bid Period.

11 Monthly Guarantee ( MMG ) - The minimum pay hours per Pilot in a Month, as set forth in Article 3 (Compensation). Multiple Operations Training Compliance Program ( MOTCP ) An FAA approved program that allows Pilots to fly the same Equipment Type on multiple Certificates without a Training Event(s). New Base A Base not existing on the effective date of the Agreement, as per Article 7 (Vacancies). New Hire A Company employee newly hired as a Pilot and placed on the Seniority List as of his Date of Hire. Operating Experience ( OE ) Operating Experience required by the FARs. Old Sick Bank Sick time accrued prior to December 5, On Call See Available. Open Time Trips not Assigned to a Pilot(s) during Line Construction or SAP. Operational Check Flight A type of flight for which Pilots do not require specialized training designed to evaluate if an aircraft can be returned to active service after maintenance action. Operational Necessity Actions taken by the Company after careful planning and analysis and not arbitrarily or capriciously. Examples of such reasons shall include, but are not limited to, the following: (1) to avoid a potential flight delay; (2) to avoid a potential flight cancellation; and (3) to fulfill FAA regulatory requirements. Paid Day Off ( PDO ) Hours accumulated by the Pilot and used according to Article 8 (Paid Days Off) Pay Credit Hour ( PCH ) The Credit earned by a Pilot for Trip Pairings and Duty in accordance with Article 3 (Compensation) of the Agreement. Personal Communication Device ( PCD ) Cell phone, pager, Blackberry, electronic tablet, etc., at a Pilot s discretion. PDO Sick Bank PDO time that has been designated by a Pilot to be used for Sick time and is allowed to be carried over from year to year, as provided for in the Agreement. Per Diem - The expense allowance a Pilot receives from the Company for incidental expenses, (e.g. meals, tips). Pilot - A Company employee whose name appears on the Seniority List. Plus-up Leg(s) added to a Pilot s Schedule but otherwise leaves the Schedule unchanged. Position The combination of a Pilot s Status and Equipment. Pre-Awards Virtual Credits or Carryover Pairings placed on a Pilot s Schedule for the next Bid Period. Preferential Bid System ( PBS ) A system that constructs monthly Schedules for Pilots based on each individual s preferences and Seniority. Probationary Period A Pilot s first 12 months of active service (exclusive of furlough or leave of absence) with the Company commencing with his Date of Hire. If a Pilot Upgrades to Captain during his Probationary Period, such Probationary Period will end upon completion of the Upgrade Checkride and OE. Reassignment (Reschedule, Reroute) Any change by the Company to a Pilot s original scheduled Assignment. Recurrent Training Periodic training and Checking required by the FAA (e.g., Distance Learning, ground school, Simulator Events, operating procedures and knowledge) for a Pilot to maintain qualification in his Position. Regular Line - A Pilot's monthly Bid Schedule consisting of Trip Pairings, Days Off, Known Absences and Pre-Awarded Assignments. Release Time (Release) The time when a Pilot is released from Company Duty.

12 Remain Overnight ( RON ) (Layover, Overnight) RON is when a Pilot remains at a location overnight from one Duty Period to the next. Report Time (Report) - The time a Pilot is scheduled to Report for Duty or the time he actually Reports for Duty, whichever is later. Republic Airways Pilots System Seniority List see Seniority List. Reserve Availability Period ( RAP ) A Duty Period during which the Company requires a Pilot on SCR to be Available to receive an Assignment for a FDP. Reserve Contact Period ( RCP ) An Assigned period during which a Pilot on LCR must be contactable by the Company. Reserve Day A Day containing a RAP, RCP or Airport Standby. Reserve Line - A Schedule which consists of Reserve Days, Days Off, Known Absences and Pre-Awarded Assignments. Reserve Pilot A Pilot on a Reserve Day and subject to Assignment. Rest Period - The period of time between the end of a Pilot s Duty Period as defined in Article 23 (Hours of Service) and the Report Time of his next Trip, training or other Company directed business. A Reserve Pilot is not considered to be at Rest while On Call. Schedule Adjustment Period ( SAP ) The period during which a Pilot may change his Initial Award. SAP Transaction Any change to a Pilot s Initial Award within SAP. SAP Bid Form designated form within FLiCA whereby a Pilot inputs any desired SAP Transactions. Schedule - See Bid Schedule. Scheduled Block Time - The scheduled time contained in a Pairing that delineates Block-to-Block times of flight Segments. Scheduled Credit Hour - the Block Hours plus Deadhead Credits of Pairings used in Line Construction SDP Line A Line constructed of SDP Pairings, Days Off, Known Absences and Pre-Awarded Assignments. Segment (Leg) A flight from one airport to another airport. Segment Time The average of historic enroute (Block-to-Block) times between city pairs (airports) by Equipment Type, as determined pursuant to Article 3 (Compensation). Self-Notify The process by which a Pilot accepts an Assignment from the Company without direct contact from the Company. Senior - Having more Seniority than another Pilot(s). Seniority A Pilot s relative position on the Seniority List. Seniority Date See Date of Hire. Seniority List (Republic Airways Pilots System Seniority List) The list of Pilots in the employ of the Company arranged in Seniority order. Short Call Reserve ( SCR ) A period of time during which a Pilot is Assigned to a RAP. Simulator Event Any training or Checking, such as, but not limited to, Recurrent or AQP events, using an FAAapproved flight simulator. Sleep Opportunity A Rest Period of at least 10 hours, of which 8 hours are of uninterrupted sleep.

13 Slide The process by which a Pilot may move the start date of his Vacation. Split Duty Period ( SDP ) - An SDP is an FDP that has a scheduled break in Duty that is less than a required Rest Period. Standing Bid - The method by which a Pilot asserts his preference for Vacancies or future Vacancies. Status Captain or First Officer. Supervisory Pilot see Management Pilot. Time Away From Base ( TAFB ) - The elapsed time a Pilot is on a Trip Pairing. Training (Training Event) Initial, Upgrade, or Transition Training, including ground school, Simulator Events, and OE. Transition Course (Captain or First Officer) Training for a Pilot moving from one Equipment Type to another on the same Certificate. Training Equivalents The number of Training Events available to Pilots changing Certificates or Downbidding to Equipment, for equal or lower pay, as per Article 7 (Vacancies). Transition Training (Transition) See Transition Course. Trip Pairing (Trip, Pairing) - A flight, or series of flights or Assignments that are paired together and begin and end at the Pilot s Base. Trip Time - See Time Away From Base. Trip Value The total PCH of a Trip. Turn Time The time spent from Block-In at an airport to the subsequent Block-Out at the same airport. Unstacking The process during Line Construction whereby the Company forces a Trip Pairing onto a Pilot s Schedule and overrides his preferences in order to reduce uncovered Trips. Upgrade Changing Status from First Officer to Captain. Vacancy An unfilled Position at a Base. Vacation An awarded block of 7 Days Off. Vacation Bank The balance of a Pilot s accrued PDOs, as per Article 8 (Paid Days Off). Vacation Day - A Day Off free of all Duty, as a result of an awarded Vacation. Virtual Credit A placeholder with certain Credit Hours for Known Absences, as provided in the Agreement, used in Line Construction, which counts towards the Credit Window. Wet Lease An agreement with another carrier in which the Company provides an aircraft and crew to the other carrier.

14 ARTICLE 3 COMPENSATION A. Pay Scales 1. A Pilot will be paid for his total Flight Pay based on Position and Longevity, in accordance with the hourly rates established in Tables 3.1 through 3.6 commencing with the effective date of this Agreement. A Pilot s total Flight Pay will be the sum of his Pay Credit Hours ( PCH ), as provided in this Article 3, and other Credits, as provided in this Agreement. 2. A Pilot who holds the status of Captain will be paid the applicable Captain rate for all Flight Pay, unless the Pilot incurs actual Flight Time in a higher paid Captain Position, in which case the Pilot will be paid that higher applicable rate for the PCH accrued flying in the higher paid position. B. Signing Bonus Pilots employed by Chautauqua Airlines, Republic Airline and Shuttle America, shall each receive a Signing Bonus in accordance with LOA 03-01, as attached. C. Pay Credit Hours ( PCH ) 1. A Pilot shall earn PCH for a Trip Pairing, which shall be the greater of the following, calculated on a daily basis: a. On a Segment by Segment basis, one PCH for one hour (1:1) of the scheduled or actual Block Time flown, whichever is greater; or, b. 4 PCH for a one Day Trip or each Day a Reserve Pilot is called into work, or for each day a Pilot works on a Day Off (if not restored); or, c. 5 PCH for each Calendar Day on Airport Standby; or, d. 1 PCH for every 2 hours 30 minutes, or portion thereof (1:2.5), of Duty per Duty Period. 2. A Pilot shall earn 1 PCH for every 4 hours and 12 minutes or portion thereof (1:4.2), of Time Away from Base ( TAFB ) while on a Trip Pairing, calculated from the Report Time at the beginning of the Trip Pairing to the Release Time at end of the end of Trip Pairing. 3. The final PCH value of a Trip Pairing shall be the PCH earned in paragraph 3.C,1. or 3.C.2, whichever is greater. 4. In addition to the PCH determined in paragraph 3.C.3, a Pilot who has additional flying added, either voluntarily or involuntarily, to a scheduled Trip Pairing will receive PCH for the value of that additional Assignment, as provided in paragraph 3.C.1.a., independent of the PCH value of the originally scheduled Trip Pairing. Flying that is substituted for a cancellation or through reassignment or rescheduling, as provided in paragraph 3.D., is not considered additional flying for the purposes of this paragraph. (Refer to Appendix 1, Examples 1-5 and Example 11, pertaining to PCH calculation.) D. Cancellation/Removal/Reassignment Pay 1. A Lineholder who is available for Duty and has a Trip Pairing, or portion thereof, cancelled will receive PCH in an amount equal to the scheduled or actual PCH for that Trip Pairing, whichever is greater. For the purposes of paragraph 3.D., scheduled includes all Trip Pairings for which a Lineholder is responsible, regardless of the method by which he is assigned or awarded the Trip Pairings. Once a Trip Pairing is assigned, it is part of a Lineholder s schedule. For purposes of paragraph 3.D., available means the Pilot is not on a Leave of Absence or otherwise absent from a day(s) of scheduled Duty. 2. If the Company removes flying from a Lineholder s schedule to be performed by another Pilot, the Lineholder who had his flying removed will not lose the accumulated PCH from other flying within that

15 Trip Pairing if he was in position to perform such flying. In position is defined as Blocked-In from a preceding flight at least 20 minutes prior to departure of the flight from which the Pilot was removed. 3. If a Lineholder is available for a scheduled Trip Pairing and is Rescheduled or Reassigned, he will receive the value of his originally scheduled Trip Pairing, the Rescheduled/Reassignment or the PCH accumulated during his Assignment, whichever is greater, on a daily basis. 4. A Reserve Pilot who reports for an Assignment shall be compensated the greater of 4 PCH per day, or the actual PCH for the Assignment. 5. If a Pilot calls Fatigue and the Fatigue Risk Management Program determines his condition was due to operational factors, he shall be considered to have been available, as provided in paragraph 3.D., except that if the Pilot is Assigned additional flying and reports Fatigue prior to commencing such additional flying, he shall not be considered to have been available for that portion of the Trip. (Refer to Appendix 1, Examples 6-10, for examples of Cancellation/Removal/Reassignment Pay calculation.) E. Premium Pay Monthly Flight Pay in excess of 87 Hours (the greater of scheduled or actual flight and deadhead time only) will be paid at 125% of a Pilot s applicable hourly rate. F. Deadhead Pay G. Taxi Pay 1. When a Pilot is required to Deadhead, he will be credited with 75% of the scheduled Block Time of the Deadhead. If no Block Time is established, then the actual time will be used for air transportation. 2. If required to Deadhead via surface transportation, he shall be credited with 50% of driving time based upon AAA mileage at 50 MPH. 3. A day consisting solely of Deadhead to or from a flight or training Assignment shall be considered a work Day and credited PCH in accordance with Article 3.C. A Pilot reporting for or performing a taxi movement that does not involve flying shall receive the greater of the following: minutes of PCH; or, minutes of PCH at Hub Airports. H. Customs Pay A Pilot who clears Customs during an overnight Assignment will receive 18 minutes of Flight Pay. There shall be one such Credit per overnight.. I. Check Airmen Pay This paragraph 3.I. replaces paragraph E. of Article 16 (Check Airmen) of this Agreement. Check Airmen shall be paid the following in addition to the rates listed in the applicable Tables attached to this Article 3 for all time spent performing Check Airmen duties, as provided in paragraph 3.I.5: 1. Line Check Airman $20.00 per hour; 2. Proficiency Check Airman $21.00 per hour; 3. APD/FAA Observation Designee $22.00 per hour. 4. The rates specified in paragraphs 3.I.1. through 3.I.3. shall be increased by 1% on each anniversary of the effective date of this Agreement prior to and also on the Amendable Date.

16 5. The Check Airmen duties referred to in this paragraph 3.I. are: all oral examinations, knowledge validations, simulator and flight pre-briefings, simulator and flight post-briefings, Simulator Events, OE, Line Checks, Conference Calls, Standardization Rides, and any other Check Airmen Related duties. J. Minimum Monthly Guarantee (MMG) 1. A Pilot who is available for Duty for the full Month will be guaranteed a minimum of 75 hours of Flight Pay per Month. 2 A Pilot who is unavailable for part of a Month will have his MMG prorated (except for paid vacation or paid sick leave). K. Pay Procedures 1. A Pilots will be paid on a bi-monthly basis, i.e., 24 pay periods per year. 2. Pilots will be paid on the 15 th and the last day of each Month. If the 15 th or the last day of each Month falls on a Saturday or Sunday, Pilots will be paid on the preceding Friday. 3. The paycheck on the 15 th of the Month will pay ½ of the MMG, adjusted for the previous Month as follows: a. Per Diem and Expenses owed to the Pilot; b. Over MMG Flight Pay owed to the Pilot; c. Any other overages due to the Pilot; and, d. Any deductions from the previous Month. 4. The Paycheck on the last day of the Month will always be ½ of MMG. 5. A Pilot will be paid, at his option, by direct deposit into an account for that Pilot at a financial institution of the Pilot s choice. 6. The Company will make the Pilot s bi-monthly pay information available through the Human Resources secure website. 7. The current month s MMG will be pro-rated from the actual Longevity Date as defined in Article 9 (Seniority). All pay over MMG for the Month that the Longevity anniversary occurs in will be included in the paycheck on the 15 th of the following Month at the new rate. 8. Pay errors involving $100.00, or more, shall be reconciled within 5 working days after it is first brought to the Company s attention. Errors of less than $ will be reconciled in the next issued paycheck. a. When feasible, pay errors will be direct deposited into the same account(s) as the Pilot s normal paycheck if that is his method for receiving a paycheck, or otherwise by next-day delivery. b. The Company will reimburse the Pilot any overdraft fees, penalties, or return check fees, if due to the pay error. 9. If it is determined that a legitimate pay error of more than $ has not been resolved and paid, as provided in paragraph 3.K.8, the Company shall compensate the Pilot for the error amount plus $50.00 for the inconvenience, in addition to the other provisions in paragraph 3.K.8.

17 L. Timing Out 1. If a Pilot s flight schedule would cause him to be in violation of the FAA 100 hours in 672 hours regulation, the Company shall be allowed to adjust his schedule, but will pay him for Credits lost up to the 100-hour limitation. 2. If a Pilot s flight schedule would cause him to be in violation of the FAA 1000 hours in 365 days regulation, the Company shall be allowed to adjust his schedule, but will pay him for Credits lost up to the 1000 hour limitation. M. Training Pay 1. A Pilot who attends a day of recurrent training or checks will receive 4 hours of Flight Pay. 2. If the Company elects to use any method of training, such as Home Study, to comply with FAA requirements, a Pilot will be paid and credited with one hour of Flight Pay for every 2 hours of FAAapproved training credit earned in Home Study. 3. When the Company uses Distance Learning training, not covered by paragraph 3.N.2., a Pilot who successfully completes such training shall be paid $35.00 for events designated as less than 1 hour, and $50.00 for events up to 2 hours, and $25.00 for every hour, or portion thereof, thereafter. The Company and the Union Training Committee shall meet and confer on the appropriate time requirements for such training. The Company shall give due consideration to the Training Committee s recommendations. 4. A Pilot in Training will be paid no less than MMG, in accordance with paragraph 3.K. 5. Line Checks and OE will be paid in accordance with this Article. N. Segment Times 1. For the purposes of this Article, Segment Times will be determined using the average of historic enroute (Block-to-Block) times between city pairs by type of Equipment. 2. Scheduled Block Times will be reviewed by a joint Company/Union Scheduling Committee every 6 months using the prior 12 months to determine whether any adjustments are to be made. 3. Adjustments will be made only when the average varies from the established scheduled Block Time by 7.5% or more, plus or minus. 3. When a new route is established for which no segment time has been computed in accordance with paragraph 3.N., the initial Segment Time will be established based upon the marketing time for that Segment. After 120 days of operation, the scheduled Block Time will be reviewed. 5. Non-scheduled flights on routes where no established scheduled Block Time exists will be credited on the basis of actual (Block-to-Block) flight time. 6. Tests, Attempts, and Diverted flights will be paid on the basis of actual (Block-to-Block) flight time. 7. Data necessary for an accurate and complete review of Segment Times will be made available to the Company/Union Scheduling Committee. After the Union representatives have had an opportunity to review the data, the Company will meet with those representatives upon request, at a mutually agreeable time, to resolve any questions or disputes. Members of the Company/Union Scheduling Committee will not disclose any confidential or proprietary information provided pursuant to this paragraph.

18 O. Drug Testing 1. A Pilot will not be called in for Drug Testing on a scheduled Day Off. 2. Drug Testing during a scheduled day of work will count as Duty Time, and shall be credited in accordance with paragraph 3.C. 3. A Pilot s Duty Time will end 15 minutes after Drug Testing is complete, if accomplished at the airport, or 15 minutes after the Pilot is returned to the airport, if accomplished at an off-site facility. P. Early Report Time If a Pilot is requested to Report early, such Pilot will be paid at the rate of $20.00 per hour, or fraction thereof, prorated for all hours on Duty prior to his originally scheduled Report Time. Q. Holiday Pay A Pilot who is assigned to Flight Duty, Reserve Availability Period or Reserve Contact Period on any of the listed holidays will receive 4 hours of Flight Pay in addition to his MMG or Flight Pay accrued for that Month: R. Per Diem New Year s Day Easter Memorial Day Independence Day Labor Day Thanksgiving Day After Thanksgiving Christmas Paragraph B.1 of Article 4 (Expenses) shall be amended to read as follows: A Pilot will be paid a Per Diem allowance of $1.80 per hour of TAFB (fractions will be prorated) for Assignments commencing on the first full month following the effective date of this Agreement. Thereafter, Per Diem rates shall be increased by $0.10 on the second and fourth anniversaries of the effective on the date of this Agreement.

19 HOURLY PAY RATE TABLES: Table 3.1 E190 Captain: E190 CAPTAIN Longevity DOS DOS+1 DOS+2 DOS+3 DOS+4* 1 $71.06 $71.77 $72.49 $73.21 $ $73.26 $73.99 $74.73 $75.48 $ $75.53 $76.29 $77.05 $77.82 $ $77.88 $78.66 $79.44 $80.24 $ $80.29 $81.10 $81.91 $82.73 $ $82.78 $83.61 $84.45 $85.29 $ $85.35 $86.21 $87.07 $87.94 $ $88.00 $88.88 $89.77 $90.67 $ $90.73 $91.64 $92.55 $93.48 $ $93.54 $94.48 $95.42 $96.38 $ $96.44 $97.41 $98.38 $99.37 $ $99.44 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Table 3.2 E175>76 Seats Captain: E175>76 SEATS CAPTAIN Longevity DOS DOS+1 DOS+2 DOS+3 DOS+4* 1 $68.47 $68.47 $68.47 $68.47 $ $70.59 $70.59 $70.59 $70.59 $ $72.80 $72.80 $72.80 $72.80 $ $75.07 $75.07 $75.07 $75.07 $ $77.38 $77.38 $77.38 $77.38 $ $79.78 $79.78 $79.78 $79.78 $ $82.24 $82.24 $82.24 $82.24 $ $84.79 $84.79 $84.79 $84.79 $ $87.42 $87.42 $87.42 $87.42 $ $90.13 $90.13 $90.13 $90.13 $ $92.93 $92.93 $92.93 $92.93 $ $96.20 $96.20 $96.20 $96.20 $ $98.78 $98.78 $98.78 $98.78 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $122.48

20 Table 3.3 E170/175 Captain: E170/175 CAPTAIN Longevity DOS DOS+1 DOS+2 DOS+3 DOS+4* 1 $65.55 $66.21 $66.87 $67.54 $ $67.58 $68.26 $68.94 $69.63 $ $69.68 $70.38 $71.08 $71.79 $ $71.84 $72.56 $73.29 $74.02 $ $74.07 $74.81 $75.56 $76.31 $ $76.37 $77.13 $77.90 $78.68 $ $78.74 $79.52 $80.32 $81.12 $ $81.18 $81.99 $82.81 $83.64 $ $83.70 $84.53 $85.38 $86.23 $ $86.29 $87.16 $88.03 $88.91 $ $88.97 $89.86 $90.76 $91.67 $ $91.73 $92.65 $93.57 $94.51 $ $94.58 $95.52 $96.48 $97.44 $ $97.51 $98.49 $99.47 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Table 3.4 Q400 Captain: Q400 CAPTAIN Longevity DOS DOS+1 DOS+2 DOS+3 DOS+4* 1 $63.58 $64.21 $64.85 $65.50 $ $65.55 $66.20 $66.87 $67.53 $ $67.58 $68.26 $68.94 $69.63 $ $69.68 $70.37 $71.08 $71.79 $ $71.84 $72.56 $73.28 $74.02 $ $74.07 $74.81 $75.56 $76.31 $ $76.36 $77.13 $77.90 $78.68 $ $78.73 $79.52 $80.32 $81.12 $ $81.18 $81.99 $82.81 $83.64 $ $83.69 $84.53 $85.38 $86.23 $ $86.29 $87.15 $88.02 $88.90 $ $88.97 $89.86 $90.76 $91.66 $ $91.73 $92.64 $93.57 $94.51 $ $94.57 $95.52 $96.47 $97.44 $ $97.51 $98.48 $99.47 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $118.79

21 Table 3.5 E135/140/145 Captain: E135/140/145 CAPTAIN Longevity DOS DOS+1 DOS+2 DOS+3 DOS+4* 1 $61.53 $62.14 $62.76 $63.39 $ $63.44 $64.07 $64.71 $65.36 $ $65.40 $66.06 $66.72 $67.38 $ $67.43 $68.11 $68.79 $69.48 $ $69.52 $70.22 $70.92 $71.63 $ $71.68 $72.40 $73.12 $73.85 $ $73.90 $74.64 $75.39 $76.14 $ $76.20 $76.96 $77.73 $78.51 $ $78.56 $79.35 $80.14 $80.94 $ $81.00 $81.81 $82.62 $83.45 $ $83.51 $84.34 $85.19 $86.04 $ $86.10 $86.96 $87.83 $88.71 $ $88.77 $89.66 $90.55 $91.46 $ $91.52 $92.44 $93.36 $94.30 $ $94.36 $95.31 $96.26 $97.22 $ $97.29 $98.26 $99.25 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Table 3.6 E135/140/145, Q400, E170/175, E190 First Officer: E135/140/145, Q400, E170/175, E190 F/Os Longevity DOS DOS+1 DOS+2 DOS+3 DOS+4* 1 $26.00 $26.26 $26.52 $26.79 $ $36.00 $36.36 $36.72 $37.09 $ $39.34 $39.74 $40.13 $40.54 $ $40.56 $40.97 $41.38 $41.79 $ $41.82 $42.24 $42.66 $43.09 $ $43.12 $43.55 $43.99 $44.43 $ $44.46 $44.90 $45.35 $45.80 $ $45.84 $46.29 $46.76 $47.23 $ $47.26 $47.73 $48.21 $48.69 $49.42 * DOS+4 Rates shall apply on the Amendable Date if before effective date of a subsequent Agreement.

22 APPENDIX 1: EXAMPLES PERTAINING TO ARTICLE 3 (COMPENSATION) Example 1: Example 2: Example 3: Example 4: Example 5: Example 6: Example 7: Example 8: Example 9: Example 10: Example 11: Example 12: Calculating PCH Trip that Pays Out on Duty Rig Trip that pays out on Trip Rig 1-Day Trip Normal Operations pay calculation Cancellation protection calculation Cancellation with Plus-Up 1 calculation Cancellation with Plus-Up 2 calculation Reassignment with Plus-Up calculation Multiple Reassignment calculation Calculating PCH Flow Chart Calculation Pay/Line Value calculation

23 Example 1: Calculating PCH: Example 2: Trip that Pays Out on Duty Rig:

24 Example 3: Trip that Pays Out on Trip Rig: Example 4: 1-Day Trip (Pays Out On Minimum Day):

25 Example 5: Normal Operations Pay Calculation: Example 6: Cancellation Protection Calculation:

26 Example 7: Cancellation with Plus-Up 1 Calculation: Example 8: Cancellation with Plus-Up 2 Calculation:

27 Example 9: Reassignment with Plus-Up Calculation:

28 Example 10: Multiple Reassignment Calculation: