PERMITTED ACTIVITIES

1.1 Permitted Operations An Airline may conduct an Air Transportation Business at one or more of the Regional Airports in common with others, but only to the extent of and in accordance with certificates issued by the U.S. Department of Transportation, Federal Airline Administration, and in accordance with federal law. An "Air Transportation Business" shall mean the carriage by aircraft of persons or property as a common carrier for compensation or hire and the activities related thereto. 1.2 Use of Facilities An Airline, its employees, passengers, guests, customers, agents, and invitees shall have the right (in common with other duly authorized users) to use all facilities, improvements, equipment, and services, which have been or may hereafter be designated by the Authority for common use at a Regional Airport, at such times, manner and for such purposes as the Authority may permit, subject to all rules and regulations as may be promulgated by the Authority from time to time for the Regional Airports (the "Airport Rules and Regulations"). 1.3 Fees and Charges An Airline's right to conduct operations at any Regional Airport is conditioned upon timely payment of all fees and charges applicable to its operations at all of the Regional Airports, and to its compliance with the Terms and Conditions and Airport Rules and Regulations. 1.4 Ground-handling Services A. An Airline may self-handle using its own personnel to the extent permitted by applicable federal law. B. If an Airline does not exercise its right to self-handle as provided in Section 1.4(A), then the Airline shall obtain any necessary ground-handling services from a company authorized by the Authority to provide ground-handling services at the Regional Airports. {A0081207.2}