BEFORE THE DEPARTMENT OF TRANSPORTATION | WASHINGTON, D.C.

ESSENTIAL AIR SERVICE AT Chadron, Nebraska

UNDER 49 U.S.C. § 41731 ET SEQ. BY ORDER 2020-11-8 | DOT-OST-2000-8322

Proposal to Provide Subsidized Correspondence with regard to this document should be By Order 2020-11-8, the Department addressed to: requested proposals from carriers Stan Little interested in providing Essential Air CHAIRMAN & CEO Service to Chadron, Nebraska. Pursuant 101 North Riverside Drive; Suite 211 to that Order, Express Pompano Beach, Florida 33062 LLC (“Southern”) cordially submits this (901) 672-7820 proposal. iFlySouthern.com

America’s Most Reliable Commuter Airline Southern Airways Express hereby offers a proposal to become the air service provider at the Chadron Municipal Airport. The proposal is for a period of two years. The Southern Story

In less than eight years, Southern Airways for acquisition. On February 29, 2016, Southern Express has become one of the largest acquired . Throughout that year, in America and a leader in Southern worked closely with those incumbent the field of Essential Air Service. Of the nearly EAS communities to facilitate rebranding and 200 daily flights operated by Southern, almost to renew the contracts for another bid cycle. half are contracted through the Essential Air In the process, Southern gained additional EAS Service program. Much of Southern’s success contracts in the region and also in the State of can be attributed to targeted expansion to gain Arkansas. scale and stability, industry-leading initiatives to With Southern’s Essential Air Service markets permanently solve the pilot shortage facing rural receiving near-perfect completion rates and communities, and the operation of the most passenger counts growing to record levels, reliable model of 9-seat aircraft in existence. the opportunity to make an acquisition and However, it is the close partnerships developed solidify the brand in the commuter marketplace through years of community networking and presented itself once again. in engagement that have led not only to countless Hawai‘i was very similar to Southern. Each airline mutually-beneficial cooperatives but also to the had roughly the same number of employees Essential Air Service regulatory compliance in and flew the same number of daily flights, but each community that Southern currently serves. what was most compatible with Southern was Southern’s first flight departed from Memphis, the synergy of the aircraft type. Both airlines Tennessee, in June of 2013. Launching with just operated the reliable, efficient, and proven two airplanes and three pilots, Southern would Cessna Caravan. The combination of the two grow to have a respected regional presence in companies in 2019 was a perfect fit. With this the Gulf South. Just a short time later, as the acquisition, Southern has become one of the airline was looking for an expansion opportunity, largest and most-respected commuter airlines in a commuter airline with Essential Air Service the country. contracts in the mid-Atlantic became available

Spring 2016: Southern doubles in size Winter 2017: Southern doubles in size Winter 2019: Southern doubles in size “Voted as the best Specialty & Leisure Airline in the USA”

— Trip Advisor, April 2019

SOUTHERN’S PROVEN MODEL versus the REALITIES OF CHADRON

For many years, Southern Airways subscribed to the business model that success in Essential Air Grand Caravan, Southern has demonstrated the Service communities comes from scale. A carrier ability to offer record-setting passenger counts generally cannot provide consistent and reliable across many of its cities. Southern’s Hawai‘i brand, service to only one or two cities in a regional Mokulele Airlines, has used the Pilatus PC-12 on footprint. It needs multiple aircraft, dozens of many specialty routes that required higher speed pilots, and full support services to be able to and pressurization. handle the daily issues that come from operating an airline. For Chadron, Southern is proposing all flights be operated on the KingAir 200. Chadron is a Through Southern’s acquisition of Mokulele community that should be served by a proven Airlines, Southern has learned how stand-alone a twin-engine aircraft, to better handle the high operations, like our route in Imperial, California, winds and extreme conditions of the Rocky can perform just as well as those in areas where Mountains and Great Plains. large scale has been obtained. Before COVID, at Imperial, we achieved a 99.6% reliability rate, with Like the Caravan, the Beechcraft KingAir has over 90% on-time performance—the best of any been a workhorse of the industry for over thirty airline in California! years. And unlike the Piaggio and Metroliner, it is The key to operating near-perfect completion still in production – making parts and expertise rates in stand-alone communities is the readily available. Both the Caravan and the KingAir availability of spare aircraft and reserve pilots are powered by the versatile and proven Pratt based in the community. Southern is committed & Whitney PT6A turbine engine, the engine of to having at least one spare aircraft based at choice for demanding, high-cycle/high-power Chadron to maintain the airline’s 99% system-wide applications. completion rate.

ABOUT THE SOUTHERN AIRCRAFT Having multiple models of aircraft allows for Southern to customize the flight solutions based on the needs of the community. With the Cessna Southern Solves The National Pilot Shortage

Entire aircraft fleets have been retired in the past decade, and many American carriers have ceased operations as a direct and proximate result of not being able to recruit and retain adequate numbers of crew FACEBOOK.COM/IFLYSOUTHERN members. INSTAGRAM.COM/FLYSOUTHERN Southern recognized this issue early and began taking steps to position itself to stay ahead of the competition. PINTEREST.COM/IFLYSOUTHERN

Southern’s Chairman served as a member of the TWITTER.COM/IFLYSOUTHERN Department of Transportation Working Group to study YOUTUBE.COM/USER/IFLYSOUTHERN ways to address these issues and to help alleviate the problems related to rural air service.

Since that time, Southern has implemented groundbreaking programs to recruit and retain quality pilots, including the Southern Senior Pilot Leadership Program and the Southern Airways Pilot Cadet Program. In addition, Southern has a full-time recruiting staff dedicated to bringing the “best and the brightest” to Southern Airways. The pilot corps numbers are among the best in the industry and promise a very positive 2020 and beyond.

As demonstrated by Southern’s industry-leading controllable completion rates, since November of 2017, Southern has rarely cancelled a flight due to crew availability. Southern’s Spokes-singer Sonny McFly performs Though the Covid-19 crisis has likely put the pilot the airline’s jingle in its television and radio shortage on hold for several months, there’s little commercials as well entertaining at live doubt that it will return. Fortunately, Southern has events in communities served by Southern already invested in a permanent solution. Southern Airways By the Numbers IN THE GULF: Destin, Fla. El Dorado, Ark. 218 Daily Departures Harrison, Ark, Hot Springs, Ark. 30,000 Monthly Passengers Key West, Fla. Nashville, Tenn. 490 Employees Tampa, Fla. 200 Pilots 35 Aircraft IN CALIFORNIA: Imperial/El Centro

IN HAWAI‘I:

Hana Kapalua 37 Kalaupapa Lāna‘i City Amazing Destinations Molokai Waimea-Kohala Kona

IN THE MID-ATLANTIC: 10 HUB/FOCUS CITIES:

Altoona, Penn. Baltimore New York City

Bradford, Penn. Dallas Memphis

DuBois, Penn. Honolulu Nantucket

Lancaster, Penn. Kahului Palm Beach

Morgantown, W.Va. Los Angeles Pittsburgh

IN NEW ENGLAND

Boston/Norwood, Mass

Hyannis, Mass.

New Bedford, Mass. Morgantown, W.Va. Providence, R.I.

IN NEW YORK

East Hampton

Montauk

Shelter Island ALL MAJOR DISTRIBUTION CHANNELS Southern invests a considerable portion of its marketing budget to promote its service to traditional travel agents and to internet shoppers who purchase tickets through online travel agencies.

MAJOR GLOBAL MAJOR ONLINE TRAVEL DISTRIBUTION SYSTEMS: AGENCY WEBSITES: Sabre Expedia Amadeus Travelocity Worldspan Orbitz Galileo Kayak Travelport Priceline Apollo Cheaptickets

Lancaster, Penn. Southern’s interline partner, . In spring 2018, Southern Airways became an interline partner of American Airlines. This means that traveling from the hometown airport to any American Airlines destination now tops any other air travel option.

DESTINATIONS

NEWFOUNDLAND PRINCE GEORGE ST. JOHN’S

EDMONTON 8:30 A.M. BRITISH COLUMBIA 3 A.M. AK 4 A.M. ALBERTA SASKATOON MANITOBA FAIRBANKS COMOX SASKATCHEWAN ONTARIO CANADA VANCOUVER KELOWNA CALGARY NEW ABBOTSFORD QUEBEC CITY BELLINGHAM BRUNSWICK REGINA ANCHORAGE VICTORIA QUEBEC JUNEAU WINNIPEG SEATTLE/TACOMA WA KETCHIKAN SPOKANE THUNDER BAY NOVA ME SCOTIA GULF YAKIMA MONTREAL BANGOR OF ALASKA PASCO PORTLAND MISSOULA ND BURLINGTON (SERVICE BEGINS OTTAWA MT MARQUETTE PORTLAND JUNE 7TH) BISMARCK FARGO MN VT BILLINGS NH BOZEMAN NY MANCHESTER EUGENE REDMOND CENTRAL WATERTOWN WI WISCONSIN TRAVERSE CITY TORONTO OR MINNEAPOLIS/ SYRACUSE BOSTON ID ROCHESTER ALBANY MA ST PAUL GREEN BAY MI HAMILTON PROVIDENCE APPLETON MARTHA’S VINEYARD MEDFORD BUFFALO ITHACA CT RI NANTUCKET SD NEW HAVEN KLAMATH FALLS BOISE SUN VALLEY ROCHESTER LA CROSSE FLINT HARTFORD/SPRINGFIELD PACIFIC OCEAN RAPID CITY ERIE NEWBURGH WHITE PLAINS/WESTCHESTER COUNTY KAUAI/LIHUE JACKSON HOLE SIOUX FALLS GRAND RAPIDS SCRANTON NEWARK ISLIP 8 A.M. MADISON MILWAUKEE DETROIT SIOUX CITY IA LANSING WILLIAMSPORT ALLENTOWN NEW YORK CITY WY KALAMAZOO CLEVELAND STATE COLLEGE OAHU/HONOLULU WATERLOO DUBUQUE NJ TOLEDO AKRON/CANTON PA PHILADELPHIA CHICAGO SOUTH BEND CEDAR RAPIDS/IOWA CITY (SERVICE BEGINS HARRISBURG MAUI/KAHULUI JUNE 7TH) OH PITTSBURGH BALTIMORE RENO DES MOINES NV NE MOLINE/ FT WAYNE SALT LAKE CITY PEORIA IN COLUMBUS MD DE OMAHA QUAD CITIES WASHINGTON DC SANTA ROSA SACRAMENTO BLOOMINGTON DAYTON HILO HAYDEN/STEAMBOAT GRAND ISLAND SALISBURY – OCEAN CITY OAKLAND MAMMOTH LAKES SPRINGS KIRKSVILLE QUINCY INDIANAPOLIS WV HAWAII/ IL CHARLOTTESVILLE SAN FRANCISCO CHAMPAIGN/ CINCINNATI HUNTINGTON KONA HI SPRINGFIELD URBANA SAN JOSE/SILICON VALLEY UT CHARLESTON RICHMOND VAIL DENVER KANSAS CITY LOUISVILLE VA NEWPORT NEWS/ WILLIAMSBURG GRAND JUNCTION ASPEN MANHATTAN ST LOUIS LYNCHBURG NORFOLK /VIRGINIA BEACH SAINT COLUMBIA EVANSVILLE LEXINGTON ROANOKE MONTEREY FRESNO GEORGE GUNNISON/CRESTED BUTTE COLORADO OWENSBORO GREENSBORO/ SPRINGS MARION 2 A.M. MONTROSE/TELLURIDE KS FORT LEONARD WOOD MO HIGH POINT/ CA WINSTON-SALEM GREENVILLE CO GARDEN CITY CAPE GIRARDEAU KY SAN LUIS OBISPO DURANGO WICHITA SPRINGFIELD/ TRI-CITIES LAS VEGAS BRANSON RALEIGH/DURHAM BERMUDA BAKERSFIELD JOPLIN KNOXVILLE ASHEVILLE NC NEW BERN 7 A.M. NASHVILLE FAYETTEVILLE

E SANTA BARBARA FAYETTEVILLE/ CHARLOTTE JACKSONVILLE BENTONVILLE/ TN GREENVILLE/ BURBANK FLAGSTAFF/ SANTA FE STILLWATER TULSA CHATTANOOGA TI M N.W. ARKANSAS SPARTANBURG WILMINGTON GRAND CANYON LOS ANGELES ALBUQUERQUE AIRPORT MEMPHIS ONTARIO OK FT SMITH COLUMBIA FLORENCE LONG BEACH AZ OKLAHOMA CITY HUNTSVILLE/ PALM SPRINGS AMARILLO SANTA ANA/ LITTLE ROCK DECATUR ATLANTA MYRTLE BEACH ND AR D ORANGE COUNTY/ LAWTON/FT SILL BIRMINGHAM SC A AUGUSTA

T JOHN WAYNE AIRPORT NM SAN DIEGO CHARLESTON American Airlines, PHOENIX/ WICHITA FALLS AR PACIFIC OCEAN YUMA SCOTTSDALE MS AL GA HILTON HEAD American Eagle®, TE S ROSWELL LUBBOCK NORTH TEXARKANA SAVANNAH and/or TUCSON MONTGOMERY DALLAS/FT WORTH SHREVEPORT MERIDIAN ATLANTIC American Airlines Shuttle

ND IC A LONGVIEW JACKSON MONROE EL PASO MIDLAND/ ABILENE OCEAN ODESSA TYLER LAUREL/ JACKSONVILLE

NES I WACO LA PENSACOLA Codeshare SAN ANGELO HATTIESBURG TALLAHASSEE KILLEEN/FT HOOD ALEXANDRIA MOBILE FORT WALTON BEACH service with COLLEGE BATON ROUGE GULFPORT GAINESVILLE DAYTONA BEACH LAFAYETTE PANAMA CITY oneworld

IM E Z O STATION/ TX AUSTIN LAKE CHARLES NEW ORLEANS (SERVICE BEGINS T BRYAN ORLANDO HERMOSILLO JUNE 7TH) alliance partner* BEAUMONT/ MELBOURNE HOUSTON PORT ARTHUR TAMPA MARSH FL HARBOUR CANCÚN SAN ANTONIO Codeshare GRAND CAYMAN CHIHUAHUA SARASOTA/BRADENTON FREEPORT LEÓN-GUANAJUATO COZUMEL service with WEST PALM QUERETARO FT MYERS BEACH TURKS & FORT LAUDERDALE/HOLLYWOOD non-oneworld CAICOS ISallianceLANDS partner* LAREDO CORPUS CHRISTI MIAMI NASSAU MORELIA ELEUTHERA MEXICO CITY PUEBLA MEXICO BAHAMAS SAN SALVADOR oneworld MCALLEN GULF OF KEY WEST GEORGE BELIZE CITY TOWN alliance PROVIDENCIALES IXTAPA/ZIHUATANEJO TORREÓN MONTERREY BROWNSVILLE MEXICO destinations* MEXICO BELIZE ROATÁN HAVANA VARADERO PUERTO R SAN PEDRO SULA CUBA SANTA CLARA Admirals Club PUNTA GUATEMALA HONDURAS MAZATLÁN PUERTO PLATA CANA SAN JOSÉ CAP-HAÏTIEN GUATEMALA CITY DEL CABO/ ZACATECAS CAMAGÜEY HOLGUÍN SeasonalSANTIAG OAmerican TEGUCIGALPA CASA DE CAMPO/ LOS CABOS HAITI Airlines cities LA ROMANA SAN SALVADOR SAN LUIS POTOSÍ SANTO DOMINGO PORT-AU-PRINCE EL SALVADOR NICARAGUA AGUASCALIENTES CANCÚN DOMINICAN MERIDA Destinations are subject to change. MANAGUA GRAND CAYMAN REPUBLIC LEÓN-GUANAJUATO COZUMEL MONTEGO BAY KINGSTON * For details, see theone world section 5 A.M. 6 A.M. PACIFIC OCEAN PUERTO GUADALAJARA QUERETARO on page 132. LIBERIA VALLARTA JAMAICA 4 A.M. 5 A.M. 6 A.M. Go to aa.com/visitcuba for information on MORELIA American’s new routes to Cuba. MANZANILLO MEXICO CITY PUEBLA

IXTAPA/ZIHUATANEJO

SOUTHERN’S ADDITIONAL INTERLINE PARTNERS Mid-Atlantic

Bradford O‘ahu Moloka‘i Boston/Norwood Ho‘olehua Dubois New Kalaupapa Providence Bedford Maui Hyannis Altoona Honolulu Kapalua Kahului Pittsburgh Lancaster Nantucket

Lāna‘i City Hāna New England Lāna‘i Waimea- Baltimore Kohala Morgantown

Kailua-Kona TAILWIND Hawai‘i TRAVEL FASTER Shelter Island Montauk Hawai‘i Island Manhattan East Hampton New York Seaplane

Harrison/ Branson

Hot Nashville Springs Memphis

Los Angeles El Dorado Dallas/ Route Map Ft. Worth Imperial Destin Now serving 37 cities with over West Palm 200 daily departures! Beach California Tampa MAP KEY

Gulf Weekend Key West Consistency in the Marketplace

Southern has been one of the EAS CONTROLLABLE COMPLETION top-performing EAS airlines in JULY 2019 - JUNE 2020 the country with controllable completion rates setting the industry standard. Further, 100 100% 99.7% 100% 100% 100% 100% 100% 100% Southern does not compare 99.5% 99.6% 98.1% 98.54% it’s on-time performance 95 against other commuter airlines. Instead, Southern 90 compares its operational statistics against the biggest 85 and best in the industry. Both airlines operated by Southern 80 Airways Corporation have been industry leaders in these categories.

JAN 2020 JULY 2019 SEPT 2019 NOV 2019 MAR 2020 MAY 2020

Hot off the Press!

ALL ABOUT CHRISTMAS IN HAWAIIAN PENNSYLVANIA COFFEE

Southern was recently HAVE A HOLLY DOLLY CHRISTMAS featured in the international

NOV/DEC 2020 magazine Airliner World!

Southern’s new in-flight magazine, Cloud 9, hits the skies November 2020!

DOWNLOAD OUR APP PRIOR TO TAKE-OFF FOR MORE ARTICLES & DESTINATION TRAVEL RESOURCES Airport Information | Ground Transportation | Hotels Restaurants | Shopping | Points of Interest

Did you know? Despite having multiple proposals for regional jet service, every Arkansas city selected to stay with Southern for another two years! 2016- SOUTHERN SEES SIX CONSECUTIVE 2017-SOUTHERN RECORD-SETTING MONTHS IN DUBOIS 2018-SOUTHERN JULY 2019-DECEMBER 2019 2019-SOUTHERN 2020-SOUTHERN EAS CONTROLLABLE COMPLETION JULY 2019 - JUNE 2020

DUBOIS, PA 2019 Highest passenger counts in eight years.

TOTAL ALTOONA PASSENGERS 2014-2019

8000

7000

ADDITIONAL ACCOMPLISHMENTS 6000

HARRISON, AR 2018, Over 10,000 passengers for only the third 5000

time in the last two decades. 4000

3000 BRADFORD, PA 2016 & 2019; Respectively, the two best enplanement years in the last eleven. 2000

1000 MORGANTOWN, WV Eight consecutive months of record-setting 0 passenger counts for Southern. (July 2019 - February 2020). 2015 2016 2017 2018 2019 ALTOONA, PA EL DORADO, AR 2019, The second-highest number of passengers Highest passenger count per departure in the last 15 years. since 2011. LANCASTER, PA Fiscal Year 2019, The lowest subsidy-per- passenger in five years.

HOT SPRINGS, AR 2019; Highest passenger count on record.

Becoming the Best Small Airline in America

Southern Airways is the fastest growing airline hubs and the terminating flight into the EAS in America. This explosive rate-of-growth is communities every day. attributed to many factors. Below are a few of the improvements that Southern has made over • Southern upgraded the Sun Air piston-driven the past few years that has positioned the airline fleet to an all-turbine fleet featuring the to become “The Best Small Airline In America.” roomy and reliable Cessna Caravan.

• Southern secured interlined agreements • Southern implemented online check-in. with American Airlines and Condor Airlines. • Southern has upgraded all outdated arrival Interline tickets are available for purchase on and departure boards at the hometown iFlySouthern.com. Southern’s interline with airports to digital monitors that are updated went live on November 7, 2019. throughout the day with fight status • Southern innovated one of the most robust information. pilot recruiting programs in the country. As • In Fiscal Year 2019, Southern brought all of its a result of two full years of pilot recruiting, EAS airports into subsidy compliance. training, and retention Southern is now poised to provide reliable service well into • Southern joined TSA PreCheck. the next decade. • Southern pioneered a passenger intercept • Southern developed SIREN, a proprietary data collection and reporting system to software program that automatically updates provide the local airports and their governing passengers of delays by text, email, and voice. boards with passenger demographic data, including passengers’ home ZIP codes and • Southern moved its crew-basing away from final destinations. the hubs, an involved process that included the recruiting of new pilots wishing to live in • Southern increased its call center and smaller communities. Now completed, this customer service center to 24 hours per day. move guarantees the originating flight to the

No Commuter Airline Cares

More About College Sports Southern Airways CEO Stan Little lost a bet to Harrison, Ark. airport manager Judy McCutcheon on the Ole Miss/Arkansas Football game. Hogs won. than Southern Airways… Southern offered $5 tickets the next week! and we want to operate flights from Chadron to Lincoln for all the big games! Roll Tide: Southern flies fans to Tuscaloosa on game day. 2021 Home Football Schedule

9/11 Buffalo 10/2 Ohio State 10/9 Northwestern Gator fans and ‘Nole fans shared a plane to the annual 10/30 Michigan in-state rivalry game. 11/6 Iowa 11/13 SE Louisiana 11/20 Wisconsin

POTENTIAL BASKETBALL FLIGHTS: Iowa | Purdue | Michigan | Illinois | Wisconsin Mississippi State fans ringing cowbells on the Southern Airways MD-80 charter to Miami for the Orange Bowl!

ENPLANEMENT INITIATIVES Southern Airways has developed a number of proprietary business development and enplanement initiatives that can be customized to each marketplace. Many of these COMMUNITY programs have already been launched across the Southern system. Full implementation of the Initiative Suite will happen in early 2019 in all Southern Airways markets.

Fueling the Local Economy

Southern is committed to being a good airport partner and an asset to not just the aviation community, but to the entire area as a whole. To this extent, Southern pledges to purchase as much competitively priced fuel in its hometown airports as weight and balance restrictions allow.

From a finance prospective, Southern’s obligation as the EAS provider must be to operate as cost effectively as possible in an effort to manage the subsidy. If while doing so, Southern can also purchase fuel in the out-stations, then both the airline, and the local community benefit.

AS THE FOLLOWING BIDS ARE BEING REVIEWED, PLEASE CONSIDER:

Southern’s commitment to reliable service and long-term sustainability is evidenced by its commitments to the hometown airports. Through solving problems related to the National Pilot Shortage, creating interline partnerships, and providing consistent executive level “boots on the ground,” Southern’s developed a strong platform for growth in all of its communities.

Southern Airways Express believes that its proposal will provide an unsurpassed level of service, grow enplanements, seamlessly connect passengers to the world’s transportation infrastructure, and provide the local community with a sustainable airline partner for both the local passengers and the visitors traveling to the community. Southern further believes that it is the right partner to deliver the above benefits while also maintaining compliance with all Department of Transportation requirements for continued participation in the Essential Air Service program.

We respectfully submit this bid, which is consistent to the service the community currently receives.

R. Stan Little Jr.

Chairman & Chief Executive Officer Southern Airways Express, LLC

SCHEDULE:

Upon the community’s selection of the perferred option, Southern will work with local officials to develop an optimized flight schedule.

STATUS VENDOR VENDOR PROJECTED SPEND Proposed Local Newspaper Newspaper $3,000 Proposed Television Cable/Broadcast $4,000 Proposed Local Radio Radio $5,000 Proposed Enhanced Digital Digital $3,000 Proposed Community Sponsorships Chamber, CVB, Etc $6,000 Proposed Customer Appreciation Live Airport Event $4,000 Party

Total $25,000

(Southern is committed to $25,000 of annual advertising spend until enplanement goals are met.) Chadron Proposal

KINGAIR 200 CDR Weekly Round Trips

CDR-DEN 12

Total 12

Operating Revenues

CDR-DEN $372,000

AIA-DEN $0

Total Operating Revenues $372,000

Operating Expenses

Flying Operations $1,013,890

Fuel and Into Plane $574,560

Maintenance $521,188

Aircraft $465,000

Indirect $386,996

Total Operating Expenses $2,961,635

Operating Loss $2,589,635

Profit Element (5%) $148,082

COMPENSATION REQUIRED $2,737,716

Compensation per Pax $456

Compensation per Departure $2,226

Annual Seats 11,070

Annual Passengers 6,000

Load Factor 54%

Departures 1,230

Average Fare $62

Completion Factor 98.50%

Compensation Required Year 1 $2,737,716

Compensation Required Year 2 $2,806,159