APG-GA WORLD PROGRAM COMMERCIALIZATION PLAN JAMES W. FOSTER, CHIEF OPERATING OFFICER JANUARY 16, 2008 For your information, this Commercialization Plan summarizes the commercialization efforts to date, discusses new initiatives and lays out a cost/revenue budget for 2008 to accomplish the tasks required. Commercial Plan goals for 2008 include: 1) REFINE THE APG-GA VISION STATEMENT 2) FORMALIZE EXISTING ORGANIZATIONAL STRUCTURES 3) RAISE THE PROFILE OF THE APG-GLOBAL ASSOCIATES BRAND 4) CREATE A COMMERCIAL FUND 5) MAKE PARTICIPATION IN THE WORLD PROGRAM MANDATORY FOR ALL 6) CONVERT GUARANTY FUND ASSETS TO THE COMMERCIAL FUND 7) REVISE THE SPLIT OF APG-GA PRODUCT REMUNERATION 8) INCREASE TRAINING LEVELS FOR PRODUCT MANAGERS AND ASSOCIATES 9) ACHIEVE OUR FINANCIAL GOALS IN 2008 OF COMMISSIONS OF Euros 16,915,693 1.) REFINE THE VISION STATEMENT OF THE ORGANIZATION A.) APG GLOBAL ASSOCIATES STRATEGIC POSITIONING A 16 YEAR JOURNEY Founded in 1991 by seven visionary GSA partners from Europe and North Africa who were willing to share and benefit from each other’s expertise to increase their business opportunities, the APG Global Associates (APG-GA) has become the world’s leading network for Airline Distribution Financial Services with 82 APG Global Associates and Service Partners; present in 112 countries and enjoying client relationships with over 240 airlines. FOCUS While some APG-GA members also operate in related market fields such as Destination Management and other elements of Tourism Marketing (representation of Hotels, Rental Cars and the like), the primary focus of the group is, and remains, the Airline Business. VISION “The World’s Leading Network for Airline Services” is the Vision statement adopted and approved at the 15th Annual General Meeting in Geneva in March 2006. It is proposed that we add the word Airline “Distribution and Financial” Services to our “Vision” statement - in recognition of the launch in 2008 of the APG Interline Electronic Ticketing program, (APG IET) - adding to our already impressive list of distribution and financial services related products. The new vision statement then reads: “The world’s leading network for Airline Distribution and Financial Services with 82 APG Global Associates and Service Partners; present in 112 countries; enjoying client relationships with over 240 airlines.” Each word of the new Vision statement is important: The World’s: Operating locally in our respective territories, we collectively contribute to a global “best practices” presence. Leading: The hallmark of the organization has and will continue to be the commercial deployment of innovative new solutions to worldwide Airline Distribution and Financial management problems. Network : While each member operates independently in his or her respective countries, each of us are integral parts of the APG-GA’s worldwide coverage. For Airline Distribution and Financial Services: APG-GA’s focus market sector is the Airline Industry. Keeping this tight focus will allow us to develop a suite of cohesive, complementary business offerings for our target audience - without distractions. Products not directly connected to the Airline Business will be undertaken to complement solutions for our airline clients. 82 Global Associates and Service Partners: In all our communications, whether signatures on our emails, letters, press releases, interviews or advertising we should consistently state the size of our worldwide Global Associate and Service Partner network. Present in 112 countries: In all our communications, we should publicize our worldwide coverage that no one else in our business sector can match. Client relationships with over 240 Airlines: In all our communications, we should let our audience know how many airlines with whom we already work. The Secretary General is responsible to periodically update the number of Global Associates and Service Partners, country coverage and airline penetration. 2.) FORMALIZE ORGANIZATIONAL STRUCTURES A long standing goal of the APG-GA has been to formally commercialize the organization, instituting clear lines of authority, duties and responsibilities. A.) The APG-GA ORGANIZATION The APG-GA is made up of: A governing body: Board of Directors A central Head Office: President, Chief Operating Officer and Secretary General Regional Vice Presidents: Board members from the Americas, Europe, Middle East and Africa, Asia Product Managers: A member, one for each APG-GA product General Assembly: Individual members and APG World Program participants B.)MANAGERIAL – CREATION OF THE COO POSITION Due to the increased complexity of the APG-GA organization and its product line, at Board Meeting #64 on November 26, 2007, Jim Foster, the USA Country Member, was named Chief Operating Officer (COO) of APG-Global Associates. In general, in the COO role, he will assist the President in managing the network and “commercializing” both existing and new products to be launched. Specific COO Responsibilities include but are not limited to: Ensure a flow of coordinated new APG-GA products to market Integrate new and existing products into a cohesive APG-GA business offering Nominate to the Board of Directors and supervise, once appointed, Product Managers for all approved APG-GA products Commercially supervise the appointed Regional Vice Presidents who are in charge of Market Development in their areas Propose and obligate the Commercial Budget The APG-GA Board of Directors in Board Meeting #64 has approved this action. C.)VALIDATE VERTICAL AND HORIZONTAL MANAGEMENT STRUCTURES To implement the APG-GA vision and strategic positioning requires that we be well organized both vertically, that is, working through the Board members who have been appointed as Regional Vice Presidents and are responsible for overall business development in their geographical areas; and horizontally through Product Managers responsible along “product lines” worldwide. D.) DELINEATE CLEAR REPORTING LINES, DUTIES AND RESPONSIBILITES Regional Vice Presidents – Americas, Europe, Asia and Middle East/Africa Reports to: President, “dotted line” product responsibility to COO Responsible for: Members of the Board of Directors, Regional Vice Presidents are responsible for geographical market development in the Americas, Europe, Asia and Middle East/Africa respectively, and results across all APG-GA products. Duties: In concert with the COO and Product Managers, evaluate and assemble the most appropriate product mix to market and sell in the geographical regions. Take personal charge of the execution of the sales program in the area. Product Managers Report to: COO Responsible for: Individual product sales worldwide Duties: Become an expert in your product Complete the Product Contacts Sheet for the World Program Manual Formulate remuneration splits for the membership, submit it to Board of Directors for approval Generate collateral sales material as appropriate, in the APG-GA livery: – Complete a product SWOT Analysis – Perform a Features/Benefit analysis – why this product is/will be attractive and to whom – Suggested sales strategies – Draft sample sales approaches for the membership – Generate Power Point Presentations explaining product in the approved APG-GA format – Formulate Frequently Asked Questions (FAQs) for members – what questions will our own people have? – Formulate Frequently Asked Questions (FAQs) for the clients use – likely a completely different set of questions from member FAQs. The Product Managers are: General Sales and Services Agency (GSSA) Services – Richard Burgess IBCS and IWCS Variable Cost Access to BSPs – Emilie Biggerstaff ARC ASP Coordination Program (AACP)- Variable cost access to ARC – Achma Asokan APG IET - Interline E-Ticketing on a Pay As You Earn Basis – Majbritt Leenaert LCC, Legacy and Hybrid Model Seat Inventory Systems – Owen Murphy Airline Passenger Insurance Program – Leon Perelman ATPCO Fare Filing Services – Josh Wald Market Revenue Mapping – Michel DeVos 3.) RAISE THE PROFILE OF THE APG-GLOBAL ASSOCIATES BRAND A.) CONTINUE PRINT ADVERTISING CAMPAIGN IN AIRLINE BUSINESS MAGAZINE The organization embarked upon a print advertising campaign with the world’s leading airline publication, Airline Business, committing to a series of full page advertisements from September 2007 through August 2008. It is our intent to continue this campaign throughout 2008 to reinforce our message and more widely publicize an increasing number of the APG-GA network members and products. The current ad, signed off on by various members, will run through August 2008 at which time we will redesign the advertisement copy and layout. B.) EXTEND THE AIRLINE BUSINESS RELATIONSHIP IN 2008 One of the ancillary benefits of being the World Air Transport Forum host and advertising in Airline Business is the relationship that we have built with their editorial staff, especially Mark Piling the magazine’s editor. This has resulted in invitations to Airline Business hosted conferences in the United States and this year in Kuala Lumpur where they jointly sponsor a conference with the UATP card (who has also become an APG-GA client as a result of the relationship). We will work this year to extend the Airline Business relationship, positioning ourselves to appear and speak at their conferences around the world and becoming their “spokes body” for our business sector (outsourced Airline Distribution and Financial services). We will push them to write a story on APG-GA products in general for Airline Business and new products specifically as one of our commercial goals. C.) ATTEND, EXHIBIT, SPEAK AT AIRLINE INDUSTRY CONFERENCES AND FORUMS Many of our members individually will attend tourism trade shows like WTM, ITB, BIT and FITUR and the like, reflecting the organization’s General Sales Agency and “Representation” roots. However, as our business has evolved from a primarily GSA/tourism marketing operation into outsourced Airline Distribution and Financial Services for small/medium size airlines, the conferences and forums attended by CEO/CMO/CFOs of our target carriers afford us more opportunity to place our products. Accordingly, the APG-GA and our management group will focus on attending, speaking and exhibiting at those airline related forums and conferences worldwide. The Conference/Forum schedule for 2008 is as follows: 1.) APG Annual General Meeting – Geneva, IATA Headquarters – March 1, 2 and 3 2.) ATAF – Association of Regional and Long Haul Airlines from French speaking countries – Monaco – March 14-15 (Attendee, Speaker) 3.) CASMA – Computerized Airline Sales and Marketing Association – Panama City, Panama – April 7-9 (Attendee, Speaker, Exhibitor) CASMA, which meets twice per year, is a forum for distribution professionals worldwide. 4.) AIRLINE DISTRIBUTION Conference sponsored by UATP and Airline Business – Kuala LumpurApril 22-24 (Attendee, Speaker, Exhibitor) 5.) US Regional Airline Association – Indianapolis, Indiana USA- May 5-8 6.) AEA Presidents Meeting – Brussels – May TBA (Attendee, Exhibitor) 7.) IATA Annual General Meeting – Istanbul – June 1-3 (Attendee, Exhibitor) 8.) National Business Travel Association (NBTA) Annual Meeting – Los Angeles – July 27-30 – (Attendee) The NBTA brings together the CMO and CSOs of all the US carriers for 3 days. (Attendee) 9.) Pacific Leisure Group Annual Meeting – Bangkok – 29-31 August (Attendee, Speaker) 10.) APG General Meeting – Istanbul – Mid September TBA (Attendee, Speaker) 11.) Interline Sales and Marketing Conference (ISMC) – Nassau, Bahamas – September 27-29 ISMC brings together the Interline Managers of 40-50 international airlines annually. (Attendee, Speaker, Exhibitor) 12.) AASA – AIRLINE ASSOCIATION OF SOUTHERN AFRICA -Johannesburg – October TBA (Attendee, Speaker, Exhibitor) AASA is the trade organization for the English speaking airlines of Southern Africa. 13.) AACO – ARAB AIR CARRIERS ASSOCIATION - Middle East – October TBA (Attendee, Speaker, Exhibitor) 14.) CASMA – Autumn meeting, venue and dates to be advised 15.) ALTA – ASSOCIATION OF LATIN AMERICAN AIRLINES Cancun – Early November TBA (Attendee, Speaker, Exhibitor) 16.) APG - World Air Transport Forum – Paris – November TBA (Attendee, Moderator, Exhibitor) 17.) AAPA – ASSOCIATION OF ASIA PACIFIC AIRLINES - Asia – November TBA (Attendee, Speaker, Exhibitor) 18.) AFRAA – AFRICAN AIRLINE ASSOCIATION - Ouagadougou, Burkina Faso – Early DecemberTBA (Attendee, Speaker, Exhibitor) D.) INSTITUTE COMPLEMENTARY PUBLIC RELATIONS PROGRAM IN AVIATION/TRADE PRESS A monthly print advertisement in Airline Business is insufficient to give the desired exposure to the APG-GA. Clearly, it is necessary to add a complementary Public Relations campaign to “flesh out” our business case in appropriate media. Accordingly, we have contracted with Alison Cryer of Representation Plus, an Allied Member of the APG-GA, to carry out that campaign. We will distribute monthly press releases on new contracts, products and APG-GA developments to the airline and travel trade media worldwide – including travel and airline correspondents of the national newspapers. Additionally, we will follow up by telephone calls and emails to set up interviews on the release depending on its content. Additionally, we will lobby “feature writers” to include the APG-GA and/or our local partner in their forthcoming features; and “business media” to cover the group when we discuss the airline world - aiming to become a global “spokes body” or authority for them and to handle all media enquiries on the airline business. E.) REINFORCING THE APG-GA IMAGE APG GLOBAL ASSOCIATES IMAGE All of us have worked, some for decades, to build our own corporate brand in our respective countries. On the other hand, all of us have joined the APG-GA to capitalize on the strength of a global brand without giving up our own identity and ownership prerogatives. Each of us therefore should consider incorporating the APG Global Associates brand into our outward facing identification in our home markets. The APG trademark, owned by Jean Louis Baroux is available free of charge to members in good standing. Many of our members have taken advantage of this facility including Ognian Blagoev in Bulgaria (APG Bulgaria), Josh Wald in CPH (APG Nordic) and the undersigned (as APG-USA) in the United States. After all, if one is paying dues to be in a global organization you should take advantage of the time, expense and energy that has gone into what has evolved into a handsome corporate style. The APG-GA’s image should be conveyed in a professional, coherent and attractive way and implemented by each associate. ELEMENTS: 1.) APG-Global Associates Website www.apg-ga.com utilizes unique colors and design to reflect our global outlook and give credence to the strength of the network. Each associate has a page to describe its organization, its services and its customers with a common News and Information screen to highlight the most recent successes of the Network. Associates are responsible to forward to the head office the latest news concerning new customers or services. If you don’t know how to update your corporate data in the website, Leon Perelman has the requisite sign in code and password for you. Each Product Manager is responsible to provide input and make changes to the Product Section, in concert with the Secretary General. 2.) APG Global Associates Handbook With the same design theme as the website, the Handbook is issued annually and is the primary physical collateral piece for distribution at client meetings, conferences and other commercial occasions. Please ensure that you have given Leng Tan a suitable digital picture. 3. APG Global Associates Business Cards and Stationery APG-GA Business Cards and stationery carrying through our design theme are available for purchase. Alternatively, the specifications for the business cards are available from Leon Perelman for local production. 4.) APG Global Associates signage APG Global Associates “kakemono” signs are being made available for each associate to be displayed in your office or during commercial gatherings. 5.) APG Global Associates “Giveaways” Branded promotional materials and gifts such as pens, watches, T-Shirts, baseball caps and USB keys can be made available to you upon request to Leon Perelman. These are high quality items to be used personally or for “giveaways” for customers and prospects. 4.) CREATION OF A COMMERCIAL FUND Over the past seven years, the APG-Global Associates network and product lines have grown exponentially - from nine members and a single product, to sixty two members, twenty service suppliers and nearly a dozen products marketed under the banner of the APG-GA World Program (WP). To generate financial resources to further develop the World Program (WP), a Commercial Fund is being created by levying a small revenue share of certain WP products sold; said fund to be administered by an APG GA Commercial Fund Steering Committee made up of five WP members in good standing (Board and non-Board members) that meets twice annually at the AGMs to approve Commercial Fund expenditures. Such approved expenditures shall include but are not limited to: direct remuneration; payment for exhibitions, printing, travel, meals and lodging; advertising, public relations, APG-GA regional meetings and the like. The commercial fund will receive Euros 341,225 in 2008 to amortize the cost of the commercialization. All nine Master Contract Holders of existing APG-GA products and the Board of Directors at Meeting #65 have approved the creation of the Commercial Fund. 5.) MAKE PARTICIPATION IN THE WORLD PROGRAM MANDATORY WITH ALL NEW JOINING FEES TO ACCRUE TO THE COMMERCIAL FUND Presently, 28 APG-GA members have joined the World Program as Regular or Gold Members, having paid varying one time amounts from Euros 1,000 to 4,000 to join, depending on their market size (Small or large BSPs) and participation levels (Regular or Gold). Due to contractual responsibilities inherent in the APG stable of products, existing and future APG-GA members must become members of the World Program within 90 days. Further, it is proposed that the joining fees to be members of the APG-GA as either a Country or Allied member will continue to accrue to the APG-GA General Fund and the joining fees for the World Program going forward will accrue to the Commercial Fund. All nine Master Contract Holders of existing APG-GA products and the Board of Directors at Board Meeting #65 have approved directing future WP Joining Fees to the Commercial Fund. 6.) CONVERSION OF GUARANTY FUND ASSETS TO THE COMMERCIAL FUND BIG, a component product of the WP, made provision for a Guaranty Fund (administered by the Board of Directors of the APG GA) for the purpose of giving a financial security (Letter of Credit or Bank Guarantee) instrument to airline clients of the BIG Program, if necessary. To date, no such financial instrument has been delivered to any airline, and the APG-GA now has nearly Euros 10,000 in this account which, unless obligated, will be taxed in France as income. It was proposed and approved that this Guaranty Fund be abolished and the existing funds be transferred to the proposed Commercial Fund. Further, the percentage of revenues formerly allocated to the Guaranty Fund, going forward, is redirected to the Commercial Fund. The rationale for this action is that pledging LOCs or Bank Guarantees to airlines is passé unless reciprocal, given the history of airline bankruptcies. Moreover, with IATA and ARC now permitting GSAs to remit their sales via the BSP and ARC respectively the exposure for an airline is greatly reduced. Lastly, to levy all BIG members for the Guaranty Fund payment when a carrier who receives a Guaranty instrument may not benefit all BIG participants to the same degree is arbitrary. As the Guaranty Fund was administered by the Board of Directors, the decision to abolish the fund was put to the Board at Meeting #65 and approved. 7.) REVISE THE SPLIT OF APG-GA PRODUCT REMUNERATION A major funding component of the commercialization plan was to seek the agreement of all APG-GA product Master Contract Holders to a new split of APG-GA product remuneration to be paid to the members. All nine stakeholders agreed to do so and it is embodied in Addendum 5 of the World Program Contract which is at Attachment 1 to this Commercialization Plan. 8.) TRAINING FOR PRODUCT MANAGERS AND ASSOCIATES Product Managers The COO is committed to work individually with each of the product managers to ensure uniformity in design and approach to their product. Each product manager is required to: – Complete a product SWOT Analysis – Perform a Features/Benefit analysis – why this product is/will be attractive and to whom – Suggested sales strategies – Draft sample sales approaches for the membership – Generate Power Point Presentations explaining product in the approved APG-GA format – Formulate Frequently Asked Questions (FAQs) for members – what questions will our own people have? – Formulate Frequently Asked Questions (FAQs) for the clients use – likely a completely different set of questions from member FAQs. – The COO will meet with all the product managers twice yearly for a one day training session at the APG meetings. APG-GA Associates Training Primary APG-GA product training has traditionally occurred in plenary session at the twice yearly AGMs. Most recently, at the Cannes AGM in October we trained in parallel rotating small groups (not more than 15 people). The feedback was that the latter approach was much better as people were reluctant to ask questions/seek clarification in a large group, but would do so in a small group, which is the way we will train henceforth. However, the real key to gaining greater product knowledge on the part of our associates is to come to the twice yearly meetings and interact with their APG-GA colleagues. Therefore, it behooves us to be as “inclusive” as possible in scheduling those meetings (as we have done with the March meeting this year) so that no one has an excuse as to why they could not make it. In addition, the COO is committed to conducting training classes in the “off quarters” in the respective regions to reach all the members. Accordingly, the COO will be going to Europe to participate in training in January. Asia, Latin America and Africa will be slated for regional meetings at times/venues to be advised. ACHIEVING OUR FINANCIAL GOALS – BUDGET (See attachment 2) Our financial goal for 2008 is to generate commission revenues of Euros 16, 915, 693 Sincerely, James W. Foster Chief Operating Officer APG Global Associates ATTACHMENT 1 WORLD PROGRAM CONTRACT ADDENDUM 5 This addendum 5 sets out below the New Split of Product Remuneration effective January 1, 2008 and will replace the former Split of Remuneration which will no longer be valid after December 31, 2007. Definitions: ACTING PARTNER: an APG GA member who has joined the APG World Program and who is obligated to deliver a product contracted for by a Contracting Partner ADMINISTRATION & FINANCE: an APG GA member who has been approved by the Board of APG GA to receive all payments related to an APG-GA product and who coordinates their re-distribution amongst the members according to the rules of the World Program AIRLINE PASSENGER INSURANCE (API): An insurance product developed by APG and a major European insurance company; with cover paid for by a client airline to indemnify its passengers in the event of the client carriers’ bankruptcy or cessation of services. COMMERCIAL COORDINATOR: an APG GA member who has been approved by the Board of APG GA and who coordinates all commercial actions taken by the members of APG GA on the referred product/service. Should the performance of the commercial coordinator be insufficient, with no significant results shown within 60 days after a written remark send by registered mail from APG, the position can irrefutably be reassigned and confirmed by a notification sent by APG through registered mail. COMMERCIAL FUND: a fund created by a revenue share of certain products sold, to be administered by APG GA Commercial Fund Steering Committee, for the purpose of giving commercial resources for the development of the World Program CONTRACTING PARTNER: an APG GA member who has joined the APG World Program and who sells any of the products for any area. In order to be registered for the sharing of the profit, he has to physically sign the contract, even if only as a witness. FARE FILING SERVICE: A product which introduces published and/or negotiated fares into the GDS via ATPCO on behalf of an airline. GENERAL SALES AGENCY: BIG – APG’s GSA program GUARANTY FUND: a fund created by a share of the BIG program that is administered by APG GA for the purpose of giving a financial security (Letter of Credit or Bank Guarantee) to airline clients of the BIG Program INTERLINE E TICKETING PROGRAM: APG IET – APG Interline E Ticketing – A product which will enable airlines to retain and expand their interline agreements through an electronic ticketing hub set up in coordination with Heli Air Monaco and managed by APG DS INVENTORY SYSTEM SOLUTIONS: A multiple array of airline inventory system solutions. MARKET REVENUE MAPPING – APG MAP – APG Market Analysis Program – This program plots airline sales data by travel agency onto geographic maps to assist airline sales representatives with revenue target selection. MASTER CONTRACT HOLDER: The developer and implementer or introducer of an approved product/service within the APG GA network. He is responsible for the maintenance of the said product/service TRADE MARK: commission to be paid for the use of the APG trade mark which belongs to Jean-Louis BAROUX and is administrated by JLB Conseil VARIABLE COST ACCESS TO ARC: ARC ASP Coordinator Program (AACP) – A variable cost Area Settlement Program similar to IBCS but related to the USA only VARIABLE COST ACCESS TO BSP: IBCS/IWCS – IATA BSP Consolidator System / IATA Weblink Consolidator System – A variable cost Area Settlement Program for the 80 IATA BSPs worldwide. Split of Commissions by Product Product: General Sales Agency – BIG Program This decision has to be approved by the Board of APG GA General basis of remuneration: Assumes a 5 % overriding commission Contracting Partner: any APG GA member Acting Partner: any APG GA member - 0,5 % –3,5 % for Regular WP Members 3,85 % for Gold WP Members Commercial coordination: APG UK - 0,175 % Administration & Finance: APG DS - 0,175 % Trade Mark: JLB Conseil - 0,15 % Commercial Fund: APG-GA -0,15% or 0,5% General basis of remuneration: 100% of earnings Contracting Partner: any APG GA member Acting Partner: any APG GA member - 10 % – 70 % for the Regular WP Members - 77 % % for the Gold WP Members Commercial coordination: APG UK - 3,5 % Administration & Finance: APG DS - 3,5 % Trade Mark: JLB Conseil -3% Commercial Fund: APG-GA -3% or 10% Product: Variable cost access to BSP – IBCS/IWCS General basis of remuneration: 3 % on the net turnover issued Contracting Partner: any APG GA member - 0,3 % Acting Partner: any APG GA Country member or IBCS Coordinator – 1,8% for the Members in Latin America - 2 % for the other Members Commercial coordination: APG USA - 0,2 % APG Argentina - 0,2 % for Latin America Administration & Finance: APG DS - 0,5 % General basis of remuneration: 100 % of earnings Contracting Partner: any APG GA member - 10 % Acting Partner: any APG GA Country member or IBCS Coordinator – 60 % for the Members in Latin America - 67 % for the other Members Commercial coordination: APG USA - 6,67 % APG Argentina Administration & Finance: APG DS - 6,67 % for Latin America - 16,67 % Product: Fare filing services – ATPCO/GDS General basis of remuneration: 100 % of earnings Contracting Partner: any APG GA member - 10% Acting Partner: APG DS - 83% Commercial coordination: APG Nordic - 5% Commercial Fund: APG GA - 2% Product: Variable cost access to ARC – AACP General basis of remuneration: 3 % on the net sales issued through the ARC; 12% of ARC Joining Fee; 10% of incremental joining fee if within 18 months of initial joining. Master Contract holder: APG USA - 2,40 % Contracting Partner: Any APG GA member - 0,30%plus half of ARC Joining fee commissions Trade Mark: JLB Conseil - 0,30 % General basis of remuneration: 100 % of earnings Master Contract holder: APG USA - 80% Contracting Partner: Any APG GA member - 10 % plus half of ARC Joining fee commission Trade Mark: JLB Conseil - 10 % Product: Interline E Ticketing program – APG IET General basis of remuneration: 9 % on interline sales issued on YO plate Master Contract holder: APG France - 4,14 % Contracting Partner: Any APG GA member - 0,90 % Acting Partner: Any APG Country member or IBCS Coordinator - 0,90 % Commercial coordination: APG USA - 0,18 % Administration & Finance: APG DS - 2,25 % Trade Mark: JLB Conseil - 0,45 % Commercial Fund: APG GA - 0,18 % General basis of remuneration: 100 % of earnings Master Contract holder: APG France - 46 % Contracting Partner: Any APG GA member - 10 % Acting Partner: Any APG Country member or IBCS Coordinator - 10 % Commercial coordination: APG USA -2% Administration & Finance: APG DS - 25 % Trade Mark: JLB Conseil -5% Commercial Fund: APG GA -2% Product: Market Revenue Mapping – APG MAP General basis of remuneration: 100 % of earnings Master Contract holder: APG France - 30 % Contracting Partner: Any APG GA member - 30 % Commercial Coordination: APG Belgium - 10 % Administration & Finance: APG DS Trade Mark: JLB Conseil - 10 % - 10 % Commercial Fund: APG GA - 10 % Product: Airline Passenger Insurance – API General basis of remuneration: 100 % of earnings Master Contract holder: APG France - 30 % Contracting Partner: Any APG GA member - 30 % Commercial Coordination: EuroLow Cost (LP) - 10 % Administration & Finance: APG DS Trade Mark: JLB Conseil Commercial Fund: APG GA - 10 % - 10 % - 10 % Product: Inventory System Solutions – AEROPACK by TTI General basis of remuneration: 100 % of earnings Master Contract holder: APG France- 30 % Contracting Partner: Any APG GA member Commercial Coordination: APG Eastern Africa - 30 % 10 % Administration & Finance: APG DS Trade Mark: JLB Conseil Commercial Fund: APG GA 10 % 10 % 10 % Application This scheme of remuneration will apply from January 1, 2008 and will remain the same until a new addendum will be signed to modify the split of remuneration. It will be valid with the signature of at least all the Master Contract Holders which are the alone able to split the remuneration that they have generated. Issued in Paris on the 1st of January 2008