Under the ACMI Service Agreement, ABX Air provides air cargo transportation services to DHL on a cost plus basis. Under the Hub and Line-Haul Services Agreement, ABX Air provides staff to conduct package handling, package sorting and airport facilities and equipment maintenance services for DHL, also on a cost plus basis. The expenses incurred under these Agreements are generally marked-up by 1.75% (the base mark-up) and included in revenues. Both Agreements also allow ABX Air to earn incremental mark-up above the 1.75% base mark-up (up to an additional 1.60% under the ACMI agreement and an additional 2.10% under the Hub Services agreement) from the achievement of certain cost-related and service goals specified in the two agreements. Fuel, rent, interest on the promissory note to DHL, and ramp and landing fees incurred under the ACMI agreement are the most significant cost items reimbursed without mark-up.

On November 10, 2008, DHL and ABX Air amended the ACMI Service Agreement and the Hub and Line-Haul Services Agreement to provide for specific base and incremental mark-up amounts for the fourth quarter of 2008 and the first quarter of 2009. The amount of base and incremental mark-up is patterned from the actual mark-ups that ABX Air earned in 2007. For the fourth quarter of 2008, DHL will pay ABX Air $7.0 million in mark-ups under the ACMI Service Agreement, and $4.5 million in mark-ups under the Hub and Line-Haul Services Agreement. The total mark-up payments to ABX Air will be $11.5 million for the fourth quarter of 2008, or six percent more than the $10.8 million in mark-ups that ABX Air earned in the fourth quarter of 2007. For the first quarter of 2009, DHL will pay ABX Air $5.6 million or $3.6 million in mark-ups under the ACMI Service Agreement, and $2.0 million in mark-ups under the Hub and Line-Haul Services Agreement.   The markups in the first quarter of 2009 will include amounts for service and cost incentives that in prior years were recorded in the fourth quarter.