Please, please continue to try to explain it to me in simple terms because these are the legal terms. Do you guys read any of this stuff or just go by what you make up on your own.

These are the facts and the legal contract, not what I wrote or made up.

Key commercial terms of the agreement include:
1. Under the Airline Service Agreement (“ASA”), Midwest will purchase all capacity at predetermined rates and will directly pay or reimburse Republic for industry standard pass-through costs.

2. The first aircraft will be placed into service on October 1, 2008 and the last aircraft on November 15, 2008.

3. The agreement has a term of ten years. However, at Midwest’s option, and at any time prior to June 1, 2010, Midwest can elect to convert the ASA into a long term aircraft lease. The 12 E170’s would be leased from Republic for the remaining duration of the ASA and operated on the Midwest Airlines operating certificate.

4. All fuel will be purchased directly by Midwest and will not be charged back to Republic.

5. Republic made a one year term loan to Midwest in the amount of $15.0 million, with an additional loan commitment of $10.0 million, based on the achievement of certain milestones.
6. The loan(s) is collateralized by all of Midwest’s unencumbered assets and generally be senior to other lender’s security position.

As part of the financing agreement, Republic has entered into an airline services agreement with Midwest to operate 12 Embraer 170 jets under the Midwest Connect brand. Republic will operate the 76-seat Embraer 170s until Midwest can transition the fleet under its own FAA operating certificate. The new Embraer 170 service will be introduced into Midwest Connect’s schedule throughout the fall, beginning October 1.

The airline said it plans to continue negotiating with the unions representing its pilots and flight attendants on concessions necessary to align its labor costs to the marketplace, in order to meet one of the final goals of its restructuring plan. It also said that the airline services agreement with Republic would result in additional furloughs for Midwest pilots, flight attendants and maintenance staff until Midwest can operate the Embraer 170 fleet on its own FAA operating certificate. The airline said it expected this process, which includes training for its flight crews and maintenance staff, would take eight months to a year.