Okaloosa County BOCC — November 15, 2016 — REPUBLIC AIRLINE-AFFILIATE PERMIT AGREEMENT

\/Pé.%’)m DESTIN-FORT WALTON BEACH AIRPORT SIGNATORY AIRLINE AFFILIATE PERMIT AGREEMENT This Signatory Airline Affiliate Permit Agreement ("Permit") is made and entered into as of this day of 2016, by and between Okaloosa County, Florida ("County"), a political subdivision of the State of Florida, American Airlines, Inc. ("Airline") corporation organized and existing under the State of Delaware and Republic Airlin ;s ("Affiliate"), a corporation organized, existing and doing business under and by virtue of the laws of the State of Indiana. WITNESSETH WHEREAS, County has entered into an Airline Operating Agreement and Terminal Building Lease ("Use Agreement") with Airline for the nonexclusive use of facilities, space, and certain flying facilities of Eglin Air Force Base at the Destin-Fort Walton Beach Airport ("Airport") and for the payment of certain Airport rentals, fees and charges; and WHEREAS, Airline is engaged in the business of commercial transportation by air of persons, property and mail to and from the Airport, hereinafter referred to as Airline's "Air Transportation Business"; said Air Transportation Business being operated at the Airport pursuant to Airline's Use Agreement; and WHEREAS, pursuant to Section 2.02 of the Use Agreement, Airline is authorized to conduct its Air Transportation Business, or any part thereof, at the Airport, by and through another air transportation company or contractor; and WHEREAS, Airline and Affiliate are parties to certain aircraft wet lease, code-sharing, affiliation and/or other agreements (collectively "Operating Agreements"), under which Affiliate operates flying services for Airline into and out of the Airport as Republic Airlines, Inc.; and WHEREAS, under the Operating Agreements, Affiliate provides flying services on behalf of Airline transporting Airline's passengers and their baggage to and from the Airport and Airline provides ground services and facilities to handle Affiliate's aircraft and load and unload Airline's passengers and their baggage through Airline's Leased Premises under Airline's Use Agreement, including, but not limited to, Airline's ticket-counter, holdroom and baggage-claim space and facilities; and WHEREAS, Affiliate does not currently have either a lease or use agreement with County for the use of premises in the Terminal Building or the use of Eglin Air Force Base flying facilities, which authorizes it to independently operate into and out of the Airport; and WHEREAS, Airline has designated Affiliate, pursuant to the terms of Section 1.04 of its Use Agreement, as an affiliate or affiliated airline, as defined in Section 1.01 of said Use Agreement, in order to enable Affiliate to operate flying services for and on behalf of Airline pursuant to Section 2.02 of said Use Agreement; and Mam WHEREAS, Airline has requested County to issue this Permit to Affiliate to recognize its right to use the Airport to conduct flying services for and on behalf of Airline pursuant to Section 2.02 of Airline's Use Agreement and additionally to authorize Affiliate, with respect to Affiliate's flying services conducted on behalf of Airline, to provide and fulfill the obligations of indemnity and insurance to County in lieu of Airline's obligations under Sections 13.01, 16.12, and 13.02 of its Use Agreement; NOW, THEREFORE, in consideration of the covenants, terms and obligations set forth herein, the parties agree as follows: L Airline and Affiliate hereby acknowledge and agree that pursuant to and in accordance with the Operating Agreements heretofore entered into between the parties and pursuant to Section 2.02 of Airline's Use Agreement that Airline has authorized Affiliate to certain "flying services" for and on behalf of Airline. County hereby acknowledges and agrees that pursuant to and in accordance with Section 2.02 of the Use Agreement, Affiliate has the right to use the Airport to provide the subject flying services for and on behalf of Airline