Audit of Costs, Operations and Service Levels. Operator shall maintain complete and accurate books and records to support and document all revenues, costs and expenses related to the Aircraft and its Delta Connection Program operations hereunder in accordance with GAAP. Delta’s in-house finance staff and any independent consultants selected by Delta shall be entitled, following reasonable notice to Operator, to audit and inspect Operator’s books and records with respect to services provided hereunder, the service levels achieved, and the determination of charges due pursuant to this Agreement for the purpose of (i) prospectively adjusting the Base Rate Costs in connection with any annual review pursuant to Section 3(J) hereof or (ii) auditing Base Compensation or Incentive Compensation due or paid hereunder, the Margin Cap Margin, and the Actual Margin. Any such audit will be conducted during regular business hours and be paid for by Delta unless such audit determines that Operator owes Delta in excess of [***], then Operator shall pay Delta the costs and expenses incurred by Delta in connection with such audit.
Audit of Costs, Operations and Service Levels. The Pinnacle Parties shall maintain complete and accurate books and records to support and document all revenues, costs and expenses related to the Aircraft and the Regional Airline Services provided hereunder, in accordance with GAAP and in accordance with the accounting policies and procedures used by the Parties to develop the payment rates set forth in Exhibit A, Attachment D (as amended or reset from time to time) and the Direct Expenses. Delta’s in-house finance staff and any independent consultants selected by Delta shall be entitled, following reasonable notice to Pinnacle, to audit and inspect the respective books and records of the Pinnacle parties relevant to the services provided hereunder, the service levels achieved, and the determination of charges due pursuant to this Agreement for the sole purposes of (i) prospectively adjusting the Aircraft Month Rates, Block Hour Rates, and Cycle Rates in connection with any rate reset pursuant to Exhibit A hereof and/or (ii) auditing any Direct Expenses or incentive compensation due or paid hereunder. Any such audit will be conducted during regular business hours and be paid for by Delta unless such audit determines that one or more Pinnacle Party owes Delta in excess of $500,000, in which case Pinnacle shall pay Delta the costs and expenses incurred by Delta in connection with such audit.
Audit of Costs, Operations and Service Levels. Operator shall maintain complete and accurate books and records to support and document all revenues, costs and expenses related to the Aircraft and its Delta Connection operations hereunder, in accordance with generally accepted accounting principles consistently applied and in accordance with the accounting policies and procedures used by the parties to develop the Direct Costs. Delta’s in-house finance staff and any independent consultants selected by Delta shall be entitled, following reasonable notice to Operator, to audit and inspect Operator’s books and records relevant to the services provided hereunder, the service levels achieved, and the determination of charges due pursuant to this Agreement for the sole purposes of (1) prospectively adjusting the Base Rate Amount in connection with any annual review pursuant to Section 3.B. hereof and/or (2) auditing Reimbursable Costs, Pass Through Costs, or incentive compensation due or paid hereunder. Any such audit will be conducted during regular business hours and be paid for by Delta unless such audit determines that Operator owes Delta in excess of $500,000, in which case Operator shall pay Delta the costs and expenses incurred by Delta in connection with such audit.
Audit of Costs, Operations and Service Levels. Operator shall maintain complete and accurate books and records to support and document all revenues, costs and expenses related to the Aircraft and its Delta Connection operations hereunder, in accordance with generally accepted accounting principles consistently applied and in accordance with the accounting policies and procedures used by the parties to develop the Direct Costs. Delta’s in-house finance staff and any independent consultants selected by Delta shall be entitled, following reasonable notice to Operator, to audit and inspect Operator’s books and records with respect to services provided hereunder, the service levels achieved, and the determination of charges due pursuant to this Agreement for the purpose of (i) prospectively adjusting the Base Rate Amount in connection with any annual review pursuant to Section 3(H) hereof or (ii) auditing Reimbursable Costs, Pass Through Costs, Other Reimbursable Costs, any Mxxx-up or incentive compensation due or paid hereunder, the Margin Cap and Fuel Burn Penalty Payment. Any such audit will be conducted during regular business hours and be paid for by Delta unless such audit determines that Operator owes Delta in excess * Confidential Treatment Requested of $1,000,000, then Operator shall pay Delta the costs and expenses incurred by Delta in connection with such audit.
