Exhibit 10.2
Supplemental Agreement No. 2 (“SA-2”)
to
Purchase Agreement No. 3134
between
The Boeing Company
and
ATLAS AIR, INC
Relating to Boeing Model 747-8 Freighter Aircraft
     THIS SUPPLEMENTAL AGREEMENT, entered into as of the 1st day of March of
2010, by and between THE BOEING COMPANY (Boeing) and ATLAS AIR, INC. (Customer);
     WHEREAS, the parties hereto entered into Purchase Agreement No. 3134 dated
September 8, 2006 (the Purchase Agreement) relating to Boeing Model 747-8
Freighter aircraft (the Aircraft);
     WHEREAS, Boeing and Customer have mutually agreed to a [*] matters raised
by the Customer in its discussions with Boeing; AND
     WHEREAS, Boeing and Customer mutually agreed to the final configuration of
its 747-8 Freighter Aircraft (Options).
     NOW THEREFORE, in consideration of the mutual covenants herein contained,
the parties agree to amend the Purchase Agreement as follows:
1. Table of Contents, Articles, Tables and Exhibits:
     1.1 The “Table of Contents” to the Purchase Agreement is deleted in its
entirety and the new “Table of Contents” attached hereto and identified with an
“SA-2” legend is substituted in lieu thereof to reflect the changes made by this
SA-2.
     1.2 The “Table 1 to Purchase Agreement No. 3134, Aircraft Information Table
for the 747-8F Aircraft” (Table 1) is deleted in its entirety and the new “Table
1” attached hereto and identified with an “SA-2” legend is substituted in lieu
thereof to reflect the changes made in the [*], among other matters, resulting
from the 747-8 Freighter aircraft configuration definition for the Aircraft
effected by this SA-2.
     1.3 The “Table 2 to Purchase Agreement No. 3134, Option Aircraft Delivery,
Description, Price and Advancer Payments” (Table 2) is deleted in its entirety
and the new

     
P.A. No. 3134
SA-2, Page 1
BOEING PROPRIETARY

Supplemental Agreement 2, Page 1 of 43
 
 
[ * ]   Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed
separately with the Commission.

 

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Table 2” attached hereto and identified with an “SA-2” legend is substituted in
lieu thereof to reflect the [*], among other matters, and the revision of the
scheduled delivery period from the originally scheduled delivery period for the
option aircraft.
     1.4 The “Table 3 to Purchase Agreement No. 3134, Purchase Rights Aircraft
Information Table” (Table 3) is deleted in its entirety and the new “Table 3”
attached hereto and identified with an “SA-2” legend is substituted in lieu
thereof to reflect the revision of the scheduled delivery period from the
originally scheduled delivery period in the event of any Customer exercise of
its purchase rights.
     1.5 The Exhibit A to the Purchase Agreement entitled “Aircraft
Configuration between the Boeing Company and Atlas Air, Inc., (Exhibit A)” is
deleted in its entirety and the new “Exhibit A” attached hereto and identified
with an “SA-2” legend is substituted in lieu thereof to document Buyer’s
decisions for Options comprising the configuration of its 747-8 Freighter
Aircraft effected by this SA-2 (these Options being listed in the Attachment to
Exhibit A).
2. Letter Agreements:
     2.1 Letter Agreement 3134-01 to the Purchase Agreement entitled “Open
Configuration Matters,” is deleted in its entirety to reflect that the Customer
has defined the configuration of its 747-8 Freighter aircraft and the agreed
upon configuration is identified in a new Exhibit A incorporated herein by
reference by this SA-2.
     2.2 Letter Agreement 6-1162-ILK-0432 to the Purchase Agreement entitled
“747-8 Freighter Aircraft [*] Letter,” ([*] Letter) is incorporated herein by
reference to document the [*] terms mutually agreed to by the parties;
     2.3 Letter Agreement 6-1162-ILK-0214 to the Purchase Agreement entitled
“Right to Purchase Additional Aircraft,” (Purchase Rights Letter Agreement) is
deleted in its entirety and the new “Purchase Rights Letter Agreement” attached
hereto and identified with an “SA-2” legend is substituted in lieu thereof to
revise Article 2 to reflect the revision of the scheduled delivery period from
the originally scheduled delivery period in the event of any Customer exercise
of its purchase rights.
     2.4 Letter Agreement 6-1162-ILK-0215 to the Purchase Agreement entitled
“Option Aircraft,” (Option Aircraft Letter Agreement) is deleted in its entirety
and the new “Option Aircraft Letter Agreement” attached hereto and identified
with an “SA-2” legend is substituted in lieu thereof to revise:
2.4.1 [*]
2.4.2 Attachment to the Option Aircraft Letter Agreement to reflect revision of
the [*], among other matters, and the revision of the scheduled delivery period
from the originally scheduled delivery period for the option aircraft.
     2.5 Letter Agreement 6-1162-ILK-0436 to the Purchase Agreement entitled
“747-8 Freighter [*] is incorporated herein by reference to document the terms
and conditions relating to [*].

     
P.A. No. 3134
SA-2, Page 2
BOEING PROPRIETARY

Supplemental Agreement 2, Page 2 of 43

 

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     2.6 Letter Agreement 6-1162-ILK-0437 to the Purchase Agreement entitled
“[*] Escalation Alternatives” is incorporated herein by reference to document
the [*] escalation terms mutually agreed to by the parties;
The Agreement will be deemed to be supplemented to the extent herein provided as
of the date hereof and as so supplemented will continue in full force and
effect.
EXECUTED IN DUPLICATE as of the day and year first written above.

                      ATLAS AIR, INC       THE BOEING COMPANY    
 
                   
By:
          By:        
 
 
 
         
 
   
 
  Mr. Lawrence B. Gibbons           [*]    
 
 
 
         
 
   
Its:
  Vice President, Procurement       Its:   Attorney in Fact    
 
 
 
         
 
   

     
P.A. No. 3134
SA-2, Page 3
BOEING PROPRIETARY

Supplemental Agreement 2, Page 3 of 43

 

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Table 1 to
Purchase Agreement No. 3134
Aircraft Information Table for the 747-8F Aircraft

                 
Airframe Model/MTOW:
    747-8F     970,000 pounds

Engine Model/Thrust:
  GENX-2B67   66,500 pounds

Airframe Price:
    [*]          
Optional Features:
    [*]          
 
             
Sub-Total of Airframe and Features:
    [*]          
Engine Price (Per Aircraft):
  $ 0          
 
             
Aircraft Basic Price (Excluding BFE/SPE):
    [*]          
 
             
Buyer Furnished Equipment (BFE) Estimate:
  $ 0          
Seller Purchased Equipment (SPE) Estimate:
  $ 0          
 
               
Refundable Deposit/Aircraft at Proposal Accept
    [*]          

              Detail Specification:   D019U022-C (10/24/2008)
Airframe Price Base Year/Escalation Formula:   [*]   [*] Engine Price Base
Year/Escalation Formula:   N/A   N/A
 
            Airframe Escalation Data:          
Base Year Index (ECI):
          [*]
Base Year Index (CPI):
          [*]

                                                                        [B]    
[D]                             [A]   4Q08   [C]   =                            
4Q08   Escalation   4Q08   [A]* [C] / [B]           Advance Payment Per Aircraft
(Amts. Due/Mos. Prior to Originally               Escalation   Factor  
Escalation   Adjusted       Escalation   Delivery): Contracted       Revised    
  Factor Using   Using   Factor Using   Escalation       Estimate Adv          
    Delivery       Delivery   Manufacturer Serial   [*]   [*]   [*]   Factor    
  Payment Base         Date   [*]   Month   Number   (Airframe)   (Airframe)  
(Airframe)   (Airframe)       Price Per A/P   [*]   [*]   [*]   [*] [*]   [*]  
[*]   37562   [*]   [*]   [*]   [*]   1   [*]   [*]   [*]   [*]   [*] [*]   [*]
  [*]   37563   [*]   [*]   [*]   [*]   2   [*]   [*]   [*]   [*]   [*] [*]  
[*]   [*]   37564   [*]   [*]   [*]   [*]   3   [*]   [*]   [*]   [*]   [*] [*]
  [*]   [*]   37565   [*]   [*]   [*]   [*]   4   [*]   [*]   [*]   [*]   [*]
[*]   [*]   [*]   37566   [*]   [*]   [*]   [*]   5   [*]   [*]   [*]   [*]  
[*] [*]   [*]   [*]   37567   [*]   [*]   [*]   [*]   6   [*]   [*]   [*]   [*]
  [*] [*]   [*]   [*]   37561   [*]   [*]   [*]   [*]   7   [*]   [*]   [*]  
[*]   [*] [*]   [*]   [*]   37568   [*]   [*]   [*]   [*]   8   [*]   [*]   [*]
  [*]   [*] [*]   [*]   [*]   37569   [*]   [*]   [*]   [*]   9   [*]   [*]  
[*]   [*]   [*] [*]   [*]   [*]   37570   [*]   [*]   [*]   [*]   10   [*]   [*]
  [*]   [*]   [*] [*]   [*]   [*]   37571   [*]   [*]   [*]   [*]   11   [*]  
[*]   [*]   [*]   [*] [*]   [*]   [*]   37572   [*]   [*]   [*]   [*]   12   [*]
  [*]   [*]   [*]   [*]

         
P.A. No. 3134, APR 53109
  SA-2, Page 4   Table 1, Page 1
 
  BOEING PROPRIETARY    

Supplemental Agreement 2, Page 4 of 43

 

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Table 2 to
Purchase Agreement No. 3134
Option Aircraft Delivery, Description, Price and Advance Payment

                 
Airframe Model/MTOW:
    747-8F     970,000 pounds
Engine Model/Thrust:
  GENX-2B67   66,500 pounds
Airframe Price:
    [*]          
Optional Features:
    [*]          
 
             
Sub-Total of Airframe and Features:
    [*]          
Engine Price (Per Aircraft):
  $ 0          
 
             
Aircraft Basic Price (Excluding BFE/SPE):
    [*]          
 
             
Buyer Furnished Equipment (BFE) Estimate:
  $ 0          
Seller Purchased Equipment (SPE) Estimate:
  $ 0            
Refundable Deposit/Aircraft at Proposal Accept:
    [*]          

              Detail Specification:   D019U022-C (10/24/2008)
Airframe Price Base Year/Escalation Formula:   [*]   [*] Engine Price Base
Year/Escalation Formula:   N/A   N/A
 
            Airframe Escalation Data:          
Base Year Index (ECI):
          [*]
Base Year Index (CPI):
          [*]

                                              4Q08       Advance Payment Per
Aircraft (Amts. Due/Mos. Prior to             Escalation   Escalation  
Delivery): Originally           Factor Using   Estimate Adv                
Contracted   Number of   Revised Option   [*]   Payment Base                
Delivery Date   Aircraft   Month   (Airframe)   Price Per A/P   [*]   [*]   [*]
  [*] [*]   [*]   [*]   [*]   [*]   [*]   [*]   [*]   [*]

             
P.A. No. 3134, APR 53112
  SA-2, Page 5   Table 2, Page 1
 
  BOEING PROPRIETARY        

Supplemental Agreement 2, Page 5 of 43

 

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Table of Available Purchase Rights for Aircraft with delivery to occur
from [*] through [*], inclusive:

              Purchase     Rights Description   Available
Purchase Rights at September 8, 2006
    [*]  
 
       
SA-2 Activity:
       
 
       
Liquidation of Purchase Right
    (0 )
 
       
Conversion of Purchase Right into Option
    (0 )
 
       
 
       
Remaining Purchase Rights at SA-2 Effective Date
    [*]  
 
       

     
P.A. 3134
   
TLS
SA-2, Table of Contents, Page i
BOEING PROPRIETARY

Supplemental Agreement 2, Page 6 of 43

 

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TABLE OF CONTENTS

                  SA ARTICLES       NUMBER
1. 
  Quantity, Model and Description    
2. 
  Delivery Schedule    
3. 
  Price    
4. 
  Payment    
5. 
  Miscellaneous    
 
       
TABLE
       
 
       
1. 
  Aircraft Information Table   SA-2
 
       
2. 
  Option Aircraft Information Table   SA-2
 
       
3. 
  Purchase Rights Aircraft Information Table   SA-2
 
       
EXHIBIT
       
 
       
A.
  Aircraft Configuration   SA-2
 
       
B.
  Aircraft Delivery Requirements and Responsibilities    
 
       
SUPPLEMENTAL EXHIBITS
       
 
       
AE1.
  Escalation Adjustment/Airframe and Optional Features    
 
       
CS1.
  Customer Support Variables    
 
       
EE1
  Engine Escalation/Engine Warranty and Patent Indemnity    
 
       
SLP1.
  Product Assurance — First-Look Inspection Program and Service Life Policy
Components    
 
       
LETTER AGREEMENTS
       
 
       
3134-01 
  Open Configuration Matters: NO LONGER APPLICABLE   N/A
 
       
3134-02 
  Spare Parts Initial Provisioning    
 
       
RESTRICTED LETTER
       
AGREEMENTS
       
 
       
6-1162-ILK-0203
  747-8 Freighter Special Matters Letter    
 
       
6-1162-ILK-0204
  747-8 Freighter Performance Retention Commitment    
 
       
6-1162-ILK-0205
  Airworthiness Directive Cost Participation Program    
 
       
6-1162-ILK-0206
  Maintenance Cost Protection Program    

     
P.A. 3134
   
TLS
SA-2, Table of Contents, Page ii
BOEING PROPRIETARY

Supplemental Agreement 2, Page 7 of 43

 

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Supplemental Agreement No. 2 to
Purchase Agreement No. 3134
TABLE OF CONTENTS, continued

          RESTRICTED LETTER       SA AGREEMENTS, continued       NUMBER
6-1162-ILK-0207
  Special Matters relating to [*]    
 
       
6-1162-ILK-0208R1
  Promotional Support Agreement   SA-1
 
       
6-1162-ILK-0209
  Aircraft Performance Guarantees    
 
       
6-1162-ILK-0210
  Remedy for Deviation from Block Fuel Guarantees    
 
       
6-1162-ILK-0211
  Demonstration Flight Waiver    
 
       
6-1162-ILK-0214R1
  Right to Purchase Additional Aircraft   SA-2
 
       
6-1162-ILK-0215R1
  Option Aircraft   SA-2
 
       
6-1162-ILK-0216
  Service Reliability Guarantee    
 
       
6-1162-ILK-432#
  747-8 Freighter Aircraft [*]   SA-2
 
       
6-1162-ILK-0436*
  747-8 Freighter [*]   SA-2
 
       
6-1162-ILK-0437
  [*] Escalation Alternatives   SA-2

 

#   Letter Agreements after 6-1162-ILK-0216 and preceding 6-1162-ILK-0432 are
not used in this Purchase Agreement   *   Letter Agreements 6-1162-ILK-0433;
6-1162-ILK-0434; 6-1162-ILK-0435, inclusive, are not used in this Purchase
Agreement

     
P.A. 3134
   
TLS
SA-2, Table of Contents, Page ii
BOEING PROPRIETARY

Supplemental Agreement 2, Page 8 of 43

 

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AIRCRAFT CONFIGURATION
between
THE BOEING COMPANY
and
ATLAS AIR, INC.
Exhibit A to Purchase Agreement Number 3134

         
P.A. No. 3134
      SA-2
 
  BOEING PROPRIETARY    

Supplemental Agreement 2, Page 9 of 43

 

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Exhibit A to
Purchase Agreement No. 3134
Page 2
AIRCRAFT CONFIGURATION
Dated as of the Effective Date of SA-2
relating to
BOEING MODEL 747-8 FREIGHTER (747-8 F) AIRCRAFT
The Customer Airplane Description is based on Boeing 747-8 Freighter
Configuration Specification D019U022, Revision C, dated October 24, 2008
(Baseline Specification), or later version then released, and the options
accepted by Customer as more fully discussed in the Attachment to this Exhibit A
(Options). As soon as practicable, Boeing will furnish Customer with copies of
747-8 Freighter Detail Specification D019U0022TLS48F-1, which is the Baseline
Specification revised to include these Customer selected Options.
The Aircraft Basic Price reflects and includes all effects of such Options.

         
P.A. No. 3134
      SA-2, Exhibit A, Page 2
 
  BOEING PROPRIETARY    

Supplemental Agreement 2, Page 10 of 43

 

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Attachment A of Exhibit A to Purchase Agreement No. 3134, Page 1

                  2005 Dollars Configuration       12 Aircraft Item Number  
Title   Price Per A/C
0110-000031
  MAJOR MODEL 747 AIRPLANE   IB
0110B750B14
  MINOR MODEL 747-8F AIRPLANE   IB
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
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  [*]   [*]
[*]
  [*]   [*]
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  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
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  [*]   [*]
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  [*]   [*]
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  [*]   [*]
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  [*]   [*]
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  [*]   [*]
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  [*]   [*]
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  [*]   [*]
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  [*]   [*]
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  [*]   [*]
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  [*]   [*]

         
P.A. No. 3134
    SA-2, Exhibit A, Attachment A, Page 1 BOEING PROPRIETARY

Supplemental Agreement 2, Page 11 of 43

 

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Attachment A of Exhibit A to Purchase Agreement No. 3134, Page 2

                      2005 Dollars Configuration       12 Aircraft Item Number  
Title   Price Per A/C
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
           
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
[*]
  [*]   [*]
7200C483C62
  GENX PROPULSION SYSTEM   IB
7200C483C63
  GENX ENGINES — 2B67 RATING   IB  
OPTIONS: 45
  TOTAL:   [*]

         
P.A. No. 3134
    SA-2, Exhibit A, Attachment A, Page 2 BOEING PROPRIETARY

Supplemental Agreement 2, Page 12 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
The Boeing Company
P.O. Box 3707
Seattle, WA 98124-2207
6-1162-ILK-0432
Atlas Air, Inc.
2000 Westchester Avenue
Purchase, NY 10577-2543

         
Subject:
  747-8 Freighter Aircraft [*] Letter
 
       
References:
  1)    Purchase Agreement No. 3134 (the Purchase Agreement) between The Boeing
Company (Boeing) and Atlas Air, Inc. (Customer) relating to Model 747-ADVF
aircraft consisting of twelve (12) firm Boeing Model 747-8 Freighter Aircraft,
one (1) option to purchase Boeing Model 747-8 Freighter Aircraft and thirteen
(13) rights to purchase Boeing Model 747-8 Freighter Aircraft, collectively
(Aircraft)
 
       
 
  2)    Letter agreement 6-1162-ILK-00427 entitled, “Agreement to Reschedule the
Delivery Months for Aircraft Contracted for [*]” (Reschedule Agreement); and
 
       
 
  3)    Letter agreement 6-1162-ILK-0436 entitled, “747-8 Freighter [*]”

This letter agreement ([*] Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this [*] Agreement have the same
meaning as in the Purchase Agreement. Boeing and Customer hereby agree as
follows:

1   Affected Aircraft

  1.1   Scope.

                   This [*] Agreement is limited to the [*] under the Purchase
Agreement and [*] with respect to the Affected Aircraft defined below in
Article 1.2 (Affected Aircraft).

1.2     Affected Aircraft.         The Affected Aircraft are:

  1.2.1   the Aircraft identified in Supplemental Agreement No. 2 to the
Purchase Agreement (SA 2), Table 1 to Purchase Agreement No. 3134, Aircraft
Information Table for the 747-8F Aircraft with an “SA-2” legend (Table 1) (such
aircraft being referred to as Table 1 Aircraft); and

     
Purchase Agreement 3134
  SA-2
TLS 747-8 Freighter [*] Letter
    BOEING PROPRIETARY

Supplemental Agreement 2, Page 13 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0432
Page 2

  1.2.2   any Substitute Aircraft defined in Article 17 of Letter Agreement
6-1162-ILK-0203 entitled “Special Matters Letter: 747-8 Freighter Aircraft.”

2   [*]

[*]

  2.1   [*]

[*]

  2.1.1   [*]     2.1.2   [*]     2.1.3   [*]

     
Purchase Agreement 3134
  SA-2
TLS 747-8 Freighter [*] Letter
    BOEING PROPRIETARY

Supplemental Agreement 2, Page 14 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0432
Page 3

  2.2   [*]

  2.2.1   [*]

[*]

  2.2.2   [*]

[*]

3   [*]

  3.1   [*]

[*]

  3.2   [*]

[*]

     
Purchase Agreement 3134
  SA-2
TLS 747-8 Freighter [*] Letter
   
BOEING PROPRIETARY

Supplemental Agreement 2, Page 15 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0432
Page 4

  3.3   [*]

[*]

4   [*]

[*]

  4.1   [*]

[*]

     
Purchase Agreement 3134
  SA-2
TLS 747-8 Freighter [*] Letter
    BOEING PROPRIETARY

Supplemental Agreement 2, Page 16 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0432
Page 5
5 [*]
[*]
[*]

                    [*]   [*]   [*] [*]   [*]   [*]           [*]   [*]   [*]  
        [*]   [*]   [*]           [*]   [*]   [*]           [*]   [*]   [*]

[*]

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*] Letter    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 17 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0432
Page 6
6 [*]
[*]
7. [*]
[*]
8. Assignment.
This [*] Agreement cannot be assigned, in whole or in part, without the prior
written consent of Boeing.
9. Conflicts.
In the event of a conflict between the terms of this [*] Agreement and the terms
of the Purchase Agreement, the terms of this [*] Agreement shall control.
10. Confidential Treatment.
Customer understands that certain commercial and financial information contained
in this [*] Agreement is considered by Boeing as confidential. Customer agrees
that it

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*] Letter    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 18 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0432
Page 7
will treat this [*] Agreement and the information contained herein as
confidential and will not, without the prior written consent of Boeing, disclose
this [*] Agreement or any information contained herein to any other person or
entity. In the event that Customer in good faith concludes (based upon an
opinion of counsel) that disclosure of information contained in this [*]
Agreement may be required by applicable law or governmental regulations,
Customer shall advise Boeing in writing prior to such disclosure, if possible,
or, if not possible, then promptly upon receiving such order or upon identifying
such need to comply, in order to enable Boeing to take whatever steps it deems
necessary to protect its interests in this regard, and Customer will, in any
event, disclose only that portion of the information which it is legally
required to disclose and Customer will use its reasonable endeavors to protect
the confidentiality of such information to the widest extent possible in the
circumstances. The parties acknowledge and agree that information contained in
this [*] Agreement may be disclosed to Customer’s existing lenders (PDP Lenders)
under the Facility Agreement dated January 30, 2008 (PDP Credit Facility) among
Customer, Norddeutsche Landesbank Girozentrale, and Bank of Utah, as security
trustee (Security Trustee) subject to the existing confidentiality agreement
with the PDP Lender.
Very truly yours,
THE BOEING COMPANY

         
By:
       
 
       
 
       
 
  [*]    
 
       
Its:
  ATTORNEY IN FACT    

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*] Letter    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 19 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0432
Page 8
Accepted and agreed to this 1stday of March of 2010.
ATLAS AIR, INC.

               
 
       
By:
  Mr. Lawrence B. Gibbons    
 
       
 
       
Its:
  Vice President, Procurement    

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*] Letter    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 20 of 43

 

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Attachment 1 to [*] Agreement 6-1162-ILK-0432
[*], Page 1 OF 1

                                                                               
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      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*] Letter    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 21 of 43

 

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Attachment 1 to [*] Agreement 6-1162-ILK-0432
[*], Page 2

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*   - Excludes the aircraft delivering in [*] and [*] of [*] for which the [*].

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*] Letter    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 22 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
The Boeing Company
P.O. Box 3707
Seattle, WA 98124-2207
6-1162-ILK-0214R1
Atlas Air, Inc.
2000 Westchester Avenue
Purchase, NY 10577-2543

          Subject:   Right to Purchase Additional Aircraft
 
       
References:
  (a)   Purchase Agreement No. 3134 (the Purchase Agreement) between The Boeing
Company (Boeing) and Atlas Air, Inc. (Customer) relating to Model 747-8
Freighter aircraft; and
 
       
 
  (b)   Special Matters Letter: 747-8 Freighter Aircraft, Letter Agreement
6-1162-ILK-0203 (the Special Matters Letter).

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All capitalized terms used but not defined in this Letter Agreement
have the same meaning as in the Purchase Agreement. The Special Matters Letter
contains the business considerations which may be applicable to aircraft
acquired through the exercise of a purchase right. The predecessor of this
Letter Agreement (Letter Agreement 6-1162-ILK-0214, dated September 8, 2006) is
deleted in its entirety and this Letter Agreement bearing the “SA-2” legend is
substituted in lieu thereof to effect the revisions in bold-faced text in
Articles 2.0 and 8.1 herein.
1.0 Right to Purchase Incremental Aircraft.
          Subject to the terms and conditions contained herein, in addition to
the Aircraft described in Table 1 to the Purchase Agreement as of the date of
execution of this Letter Agreement, Customer will have the right to purchase
(Purchase Right) thirteen (13) additional Boeing Model 747-8 Freighter aircraft
on the terms and conditions described in this Letter Agreement (Purchase Rights
Aircraft).
2.0 Delivery.
          The Purchase Rights Aircraft are offered subject to available position
for delivery during the period [*] through [*].

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0214 R1, Page 1
Purchase_ Rights    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 23 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0214R1
Page 2
3.0 Notice of Exercise and Payment of Deposit.
          Customer shall give written notice to Boeing (Notice of Exercise) of
its desire to exercise a Purchase Right. Such notice shall be accompanied by
payment by electronic transfer to the account specified below of Boeing’s then
standard proposal deposit for 747-8 Freighter aircraft (Deposit) for each
Purchase Rights Aircraft subject to the Notice of Exercise. The Deposit will be
applied against the first advance payment due for each such Purchase Rights
Aircraft.
[*]
At the time of its receipt of each Notice of Exercise and related Deposit(s),
Boeing will advise Customer as to the availability of the delivery month(s)
requested.
4.0 [*]
          [*]
5.0 Configuration.
          5.1 Subject to the provisions of Article 5.2, below, the configuration
for the Purchase Rights Aircraft will be the detail specification for Boeing
Model 747-8 Freighter aircraft at the revision level in effect at the time of
the Notice of Exercise. Such detail specification will be revised to include
          (i) changes applicable to such detail specification that are developed
by Boeing between the date of the Notice of Exercise and the signing of the
definitive agreement to purchase the Purchase Rights Aircraft,
          (ii) changes required to obtain required regulatory certificates, and
          (iii) other changes as mutually agreed.
          5.2 Boeing reserves the right to configure the Purchase Rights
Aircraft starting from a different configuration specification, provided that it
can achieve the same configuration which would result pursuant to the provisions
of Article 5.1.

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0214R1, Page 2
Purchase_ Rights    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 24 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0214R1
Page 3
6.0 Price.
          The Aircraft Price of each Purchase Rights Aircraft shall be
determined in accordance with the provisions of the Purchase Agreement using [*]
at the time of signing of the definitive agreement [*], except that the airframe
price for such Purchase Rights Aircraft shall be the sum of
(i) the price quoted for such airframe (including engine) in Table 1 to the
Purchase Agreement at the date of signing of this Letter Agreement and
(ii) [*] associated with any changes to the airframe from that described in the
detail specification identified in Table 1 to the Purchase Agreement at the date
of signing of the Letter Agreement after giving effect to all credit memos.
          Advance payments are required for each Purchase Rights Aircraft. The
remainder of the Aircraft Price will be due at delivery of each Purchase Rights
Aircraft. The methodology used to estimate the Advance Payment Base Prices will
be that specified in the Purchase Agreement at the date of signing of this
Letter Agreement, and the escalation indices used to estimate the Advance
Payment Base Prices will be adjusted to Boeing’s then current forecasts for such
elements as of the date of signing of the definitive agreement for the Purchase
Rights Aircraft and shall be escalated in the same manner as the Airframe Price
as described in Supplemental Exhibit AE-1 and in conformance with the terms and
conditions of paragraph 19 of the Special Matters Letter.
7.0 Definitive Purchase Agreement.
          Following Customer’s exercise of a Purchase Right in accordance with
the terms and conditions stated herein and Boeing’s identification of an
available delivery position acceptable to Customer, the parties will sign a
definitive agreement for the purchase of such Purchase Rights Aircraft within 60
calendar days of such exercise. Such definitive agreement will include the
provisions then contained in the Purchase Agreement as modified to reflect the
provisions of this Letter Agreement and any additional mutually agreed terms and
conditions.
8.0 General Expiration of Rights.
          8.1 Each Purchase Right shall expire at the time of execution of the
purchase agreement for the applicable Purchase Rights Aircraft, or, if no such
purchase agreement is executed, at 11:59 pm (Seattle time) on [*].

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0214R1, Page 3
Purchase_ Rights    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 25 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0214R1
Page 4
9.0 Assignment.
     The Purchase Rights described in this Letter Agreement cannot be assigned,
in whole or in part, without the prior written consent of Boeing.
10.0 Confidential Treatment.
     Customer understands that certain commercial and financial information
contained in this Letter Agreement is considered by Boeing as confidential.
Customer agrees that it will treat this Letter Agreement and the information
contained herein as confidential and will not, without the prior written consent
of Boeing, disclose this Letter Agreement or any information contained herein to
any other person or entity. In the event that Customer in good faith concludes
(based upon an opinion of counsel) that disclosure of information contained in
this Letter Agreement may be required by applicable law or governmental
regulations, Customer shall advise Boeing in writing prior to such disclosure,
if possible, or, if not possible, then promptly upon receiving such order or
upon identifying such need to comply, in order to enable Boeing to take whatever
steps it deems necessary to protect its interests in this regard, and Customer
will, in any event, disclose only that portion of the information which it is
legally required to disclose and Customer will use its reasonable endeavors to
protect the confidentiality of such information to the widest extent possible in
the circumstances.
Very truly yours,
THE BOEING COMPANY

         
By:
       
 
       
 
       
 
  [*]    
 
       
Its:
  Attorney-In-Fact    

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0214R1, Page 4
Purchase_ Rights    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 26 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0214R1
Page 5
ACCEPTED AND AGREED TO this 1st date of March of 2010.
ATLAS AIR, INC.

               
 
       
By:
  Mr. Lawrence B. Gibbons    
 
       
 
       
Its:
  Vice President, Procurement    

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0214R1, Page 5
Purchase_ Rights    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 27 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
The Boeing Company
P.O. Box 3707
Seattle, WA 98124-2207
6-1162-ILK-0215R1
Atlas Air, Inc.
2000 Westchester Avenue
Purchase, NY 10577-2543

          Subject:   Option Aircraft
 
       
Reference:
  (a)   Purchase Agreement 3134 (the Purchase Agreement) between The Boeing
Company (Boeing) and Atlas Air, Inc. (Customer) relating to Model 747-8
Freighter aircraft (the Aircraft); and
 
       
 
  (b)   Special Matters Letter: 747-8 Freighter Aircraft, Letter Agreement
6-1162-ILK-0203 (the Special Matters Letter).

This Letter Agreement amends the Purchase Agreement. All terms used but not
defined in this Letter Agreement have the same meaning as in the Purchase
Agreement. The Special Matters Letter contains the business considerations which
may be applicable to aircraft acquired through the exercise of an option. If
Customer exercises its option, Boeing agrees to manufacture and sell to Customer
additional Model 747-8 Freighter aircraft as Option Aircraft. The delivery
months, number of aircraft, Advance Payment Base Price per aircraft and advance
payment schedule are listed in the Attachment to this Letter Agreement. The
Airframe Price shown includes the Engine Price. The predecessor of this Letter
Agreement (Letter Agreement 6-1162-ILK-0215, dated September 8, 2006) is deleted
in its entirety and this Letter Agreement bearing the “SA-2” legend is
substituted in lieu thereof to effect the revisions in bold-faced text in
(i) Article 4.2 herein; and (ii) the delivery month as identified in the column
labeled “Revised Option Month” in the attachment to this Letter Agreement.
1.0 Aircraft Description and Changes.
     1.1 Aircraft Description: The Option Aircraft is described by the Detail
Specification listed in the Attachment.
     1.2 Changes: The Detail Specification will be revised to include:

  (i)   Changes applicable to the basic Model 747-8 Freighter aircraft which are
developed by Boeing between the date of the Detail Specification and the signing
of the definitive agreement to purchase the Option Aircraft;     (ii)   Changes
required to obtain required regulatory certificates; and     (iii)   Changes
mutually agreed upon.

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0215, Page 1 Option
Aircraft    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 28 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0215R1
Page 2
2.0 Price.
     2.1 The pricing elements of the Option Aircraft are listed in the
Attachment.
     2.2 Price Adjustments.
          2.2.1 Optional Features. The price for Optional Features selected for
the Option Aircraft will be adjusted to Boeing’s current prices as of the date
of execution of the definitive agreement for the Option Aircraft.
          2.2.2 Escalation Adjustments. The Airframe Price and the price of
Optional Features Option Aircraft will be escalated in the same manner as the
Airframe Price as described in Supplemental Exhibit AE-1 and in conformance with
the terms and conditions of paragraph 19 of the Special Matters Letter
Agreement.
          2.2.3 Base Price Adjustments. The Airframe Price of the Option
Aircraft shall be as set forth in the Attachment to this Letter Agreement.
3.0 Payment.
     3.1 Customer will pay a deposit to Boeing in the amount shown in the
Attachment for each Option Aircraft (Deposit), on the date of this Letter
Agreement. If Customer exercises an option, the Deposit will be credited against
the first advance payment due. If Customer does not exercise an option, Boeing
will retain the Deposit for that Option Aircraft.
     3.2 Following option exercise, advance payments in the amounts and at the
times listed in the Attachment will be payable for the Option Aircraft. The
remainder of the Aircraft Price for the Option Aircraft will be paid at the time
of delivery.
     3.3 Notwithstanding sub-paragraph 3.1 and 3.2 above, in accordance with
paragraph 18 of the Special Matters Letter, [*].
4.0 Option Exercise.
     4.1 Customer may exercise an option by giving written notice to Boeing on
or before the date [*] prior to the delivery dates listed in the Attachment
(Option Exercise Date).
     4.2 [*] at the effective date of Supplemental Agreement 2 to the Purchase
Agreement: If Boeing must make production decisions which are

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0215R1, Page 2
Option Aircraft    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 29 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0215R1
Page 3
dependent on Customer’s exercising an option earlier than the Option Exercise
Date, Boeing may accelerate the Option Exercise Date subject to Customer’s
agreement. If Boeing and Customer fail to agree to a revised Option Exercise
Date, either party may terminate the option and Boeing will refund to Customer,
without interest, any Deposit and advance payments received by Boeing with
respect to the terminated Option Aircraft. In the event of an exercise pursuant
to this Article 4.2:

  4.2.1   From the date of exercise by Customer pursuant to this Article 4.2
until the date of exercise set forth by Article 4.1 herein, Boeing shall credit
(as a reduction of interest that is otherwise payable by the Customer) the
Customer with interest at the Deferred Interest Rate set forth in Article 14.2
of the Special Matters Letter to accrue on the difference between

     4.2.1.1   [*] of the Advance Payment Base Price and        4.2.1.2   the
non-refundable Option Deposit;

  4.2.2   Notwithstanding any requirement set forth by the Special Matters
Letter, Customer shall have no requirement for advance payments until twenty
four months prior to the scheduled delivery month (provided by Boeing pursuant
to Article 4.3. herein) at which point advance payments in the amounts and at
the times listed in the Attachment will be payable for the Option Aircraft. Such
advance payment amounts are eligible for deferral pursuant to the Article 14 of
the Special Matters Letter. The remainder of the Aircraft Price for the Option
Aircraft will be paid at the time of delivery.

     4.3 Boeing shall provide Customer with the scheduled delivery month at the
time of option exercise pursuant to either Article 4.1 or 4.2 herein.
5.0 Contract Terms.
     Boeing and Customer will document the exercise of the option for the
purchase of an Option Aircraft, in accordance with the terms and conditions
contained in this Letter Agreement, in the Purchase Agreement, and any other
terms and conditions as may be agreed upon, by executing a Supplemental
Agreement with respect to the Purchase Agreement, within 30 days following
option exercise.

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0215R1, Page 3
Option Aircraft    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 30 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0215R1
Page 4
6.0 Confidential Treatment.
     Boeing and Customer understand that certain information contained in this
Letter Agreement, including any attachments hereto, is considered by both
parties to be confidential. Boeing and Customer agree that each party will treat
this Letter Agreement and the information contained herein as confidential and
will not, without the other party’s prior written consent, disclose this Letter
Agreement or any information contained herein to any other person. In the event
that Customer in good faith concludes (based upon an opinion of counsel) that
disclosure of information contained in this Letter Agreement may be required by
applicable law or governmental regulations, Customer shall advise Boeing in
writing prior to such disclosure, if possible, or, if not possible, then
promptly upon receiving such order or upon identifying such need to comply, in
order to enable Boeing to take whatever steps it deems necessary to protect its
interests in this regard, and Customer will, in any event, disclose only that
portion of the information which it is legally required to disclose and Customer
will use its reasonable endeavors to protect the confidentiality of such
information to the widest extent possible in the circumstances.
Very truly yours,
THE BOEING COMPANY

         
By
       
 
       
 
       
 
  [*]    
 
       
Its
  Attorney-In-Fact    

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0215R1, Page 4
Option Aircraft    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 31 of 43

 

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(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0215R1
Page 5
ACCEPTED AND AGREED TO this 1st date of March of 2010.
ATLAS AIR, INC.

               
 
       
By:
  Mr. Lawrence B. Gibbons    
 
       
 
       
Its:
  Vice President, Procurement    

Attachment

      P.A. No. 3134   SA-2, Letter Agreement No. 6-1162-ILK-0215R1, Page 5
Option Aircraft    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 32 of 43

 

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Attachment to
Letter Agreement No. 6-1162-ILK-0215R1
[*]

                 
Airframe Model/MTOW:
    747-8F     970,000 pounds
Engine Model/Thrust:
    GENX-2B67     66,500 pounds
Airframe Price:
    [*]          
Optional Features:
    [*]          
 
             
Sub-Total of Airframe and Features:
    [*]          
Engine Price (Per Aircraft):
  $ 0          
 
             
Aircraft Basic Price (Excluding BFE/SPE):
    [*]          
 
             
Buyer Furnished Equipment (BFE) Estimate:
  $ 0          
Seller Purchased Equipment (SPE) Estimate:
  $ 0          
 
               
Refundable Deposit/Aircraft at Proposal Accept:
    [*]          

          Detail Specification:   D019U022-C (10/24/2008)

Airframe Price Base Year/Escalation Formula:
  [*]   [*]
Engine Price Base Year/Escalation Formula:
   N/A   N/A

Airframe Escalation Data:

         
Base Year Index (ECI):
    [*]  
Base Year Index (CPI):
    [*]  

                                              4Q08       Advance Payment Per
Aircraft (Amts. Due/Mos. Prior to             Escalation   Escalation  
Delivery): Originally           Factor Using   Estimate Adv                
Contracted   Number of   Revised Option   [*]   Payment Base       Delivery Date
  Aircraft   Month   (Airframe)   Price Per A/P   [*]   [*]   [*]   [*]
[*]
  [*]   [*]   [*]   [*]   [*]   [*]   [*]   [*]

      P.A. No. 3134   SA-2, Attachment to Letter Agreement
No. 6-1162-ILK-0215R1, Page 1 Option_Aircraft    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 33 of 43

 

--------------------------------------------------------------------------------

 

(BOEING LOGO) [y84222y8422201.gif]
The Boeing Company
P.O. Box 3707
Seattle, WA 98124-2207
6-1162-ILK-0436
Atlas Air, Inc.
2000 Westchester Avenue
Purchase, NY 10577-2543

              Subject:   747-8 Freighter [*] in Relation to [*]
 
           
References:
  1)   Purchase Agreement No. 3134 (the Purchase Agreement) between The Boeing
Company (Boeing) and Atlas Air, Inc. (Customer) relating to Model 747-ADVF
aircraft consisting of twelve (12) firm Boeing Model 747-8 Freighter Aircraft,
one (1) option to purchase Boeing Model 747-8 Freighter Aircraft and thirteen
(13) rights to purchase Boeing Model 747-8 Freighter Aircraft, collectively
(Aircraft); and
 
           
 
  2)   Letter Agreement 6-1162-ILK-0432 entitled “747-8 Freighter Aircraft [*]
Letter” ([*] Agreement).

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement have the same
meaning as in the Purchase Agreement and the [*] Agreement, as applicable.
1 Scope.
This Letter Agreement is applicable exclusively to the following [*] Aircraft
(each a [*]):

          Month of Delivery per   Manufacturer     Table 1   Serial   [*]
(“Revised Delivery Month”)   Number   Reference [*]   [*]   [*]           [*]  
[*]   [*]           [*]   [*]   [*]           [*]   [*]   [*]

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*]    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 34 of 43

 

--------------------------------------------------------------------------------

 

(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0436
Page 2
[*]
2 [*]
[*]
3 [*]
[*]

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*]    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 35 of 43

 

--------------------------------------------------------------------------------

 

(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0436
Page 3
4 [*]
[*]
5 [*]
[*]
6 Assignment.
Notwithstanding any other provisions of the Purchase Agreement, the rights and
obligations described in this Letter Agreement are provided to Customer in
consideration of Customer becoming the operator of the [*] and cannot be
assigned, in whole or in part, without the prior written consent of Boeing.

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*]    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 36 of 43

 

--------------------------------------------------------------------------------

 

(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0436
Page 4
7 Conflicts.
In the event of a conflict among the terms of (i) this Letter Agreement,
(ii) the [*] Agreement and (iii) the Purchase Agreement, the provisions of this
Letter Agreement shall control.
8 Confidential Treatment.
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential. Customer
agrees that it will treat this Letter Agreement and the information contained
herein as confidential and will not, without the prior written consent of
Boeing, disclose this Letter Agreement or any information contained herein to
any other person or entity. In the event that Customer in good faith concludes
(based upon an opinion of counsel) that disclosure of information contained in
this Letter Agreement may be required by applicable law or governmental
regulations, Customer shall advise Boeing in writing prior to such disclosure,
if possible, or, if not possible, then promptly upon receiving such order or
upon identifying such need to comply, in order to enable Boeing to take whatever
steps it deems necessary to protect its interests in this regard, and Customer
will, in any event, disclose only that portion of the information which it is
legally required to disclose and Customer will use its reasonable endeavors to
protect the confidentiality of such information to the widest extent possible in
the circumstances. The parties acknowledge and agree that information contained
in this Letter Agreement may be disclosed to Customer’s existing lenders (PDP
Lenders) under the Facility Agreement dated January 30, 2008 among Customer,
Norddeutsche Landesbank Girozentrale, and Bank of Utah, as security trustee
subject to the existing confidentiality agreement with the PDP Lender.
Very truly yours,
THE BOEING COMPANY

         
By:
       
 
       
 
       
 
  [*]    
 
       
Its:
  ATTORNEY IN FACT    

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [*]    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 37 of 43

 

--------------------------------------------------------------------------------

 

(BOEING LOGO) [y84222y8422201.gif]
6-1162-ILK-0436
Page 5
Accepted and agreed to this 1st day of March of 2010.
ATLAS AIR, INC.

               
 
       
By:
  Mr. Lawrence B. Gibbons    
 
       
 
       
Its:
  Vice President, Procurement    

      Purchase Agreement 3134   SA-2 TLS 747-8 Freighter [ * ]    

BOEING PROPRIETARY
Supplemental Agreement 2, Page 38 of 43

 

--------------------------------------------------------------------------------

 

(BOEING LOGO) [y84222y8422201.gif]
The Boeing Company
P.O. Box 3707
Seattle, WA 98124-2207
6-1162-ILK-0437
Atlas Air, Inc.
2000 Westchester Avenue
Purchase, NY 10577-2543

              Subject:   [*] Escalation Alternatives
 
           
References:
  1)   Purchase Agreement No. 3134 (the Purchase Agreement) between The Boeing
Company (Boeing) and Atlas Air, Inc. (Customer) relating to Model 747-ADVF
aircraft consisting of twelve (12) firm Boeing Model 747-8 Freighter Aircraft,
one (1) option to purchase Boeing Model 747-8 Freighter Aircraft and thirteen
(13) rights to purchase Boeing Model 747-8 Freighter Aircraft, collectively
(Aircraft); and
 
           
 
  2)   Letter Agreement 6-1162-ILK-0432 entitled “747-8 Freighter Aircraft [*]
Letter” ([*] Agreement).

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement have the same
meaning as in the Purchase Agreement and the [*] Agreement, as applicable.
1. Definitions.
          1.1 “[*]” shall mean a [*] placed on the [*] for the [*] as set forth
in Attachment 1 to this Letter Agreement.
          1.2 “Airframe Escalation Adjustment” is defined as the price
adjustment to the [*] and the [*] resulting from the calculation using the
economic price formula contained in Supplemental Exhibit AE1 to the Purchase
Agreement.
          1.3 “Eligible Aircraft” means any [*].
          1.4 “Escalation Period” means the period commencing on the effective
date of this Letter Agreement and ending on the earlier to occur of the
(a) actual delivery date of each Eligible Aircraft or (b) [*].
          1.5 “Original Option Aircraft” shall mean the Aircraft specified in
Letter Agreement Number 6-1162-ILK-0215R1 entitled “Option Aircraft” as of the
date of this Letter Agreement.
P.A. No. 3134
[*] Escalation Alternatives
BOEING PROPRIETARY
Supplemental Agreement 2, Page 39 of 43

 

--------------------------------------------------------------------------------

 

(BOEING LOGO) [y84222y8422201.gif]
Atlas Air, Inc.
6-1162-ILK-0437 Page 2
          1.6 “Purchase Rights Aircraft” shall mean the Aircraft specified in
Letter Agreement Number 6-1162-ILK-0214R1 entitled “Right to Purchase Additional
Aircraft” as of the date of this Letter Agreement.
          1.7 “Table 1 Aircraft” shall mean the [*] Aircraft identified in the
following table:

      Month of [*] per Article   Manufacturer Serial [*] of the [*] Agreement  
Number [*]   [*] [*]   [*] [*]   [*] [*]   [*] [*]   [*] [*]   [*] [*]   [*] [*]
  [*] [*]   [*] [*]   [*] [*]   [*] [*]   [*]

2. Scope.
This Letter Agreement applies only to Eligible Aircraft. Notwithstanding any
provision of the Purchase Agreement to the contrary, the parties agree that the
Airframe Escalation Adjustment during the Escalation Period for each Eligible
Aircraft shall be determined in accordance with this Letter Agreement.
3. [*]
          3.1 The [*] shall apply to the Aircraft specified in Articles 3.1.1
and 3.1.2 as follows:
          3.1.1 Table 1 Aircraft and Original Option Aircraft. Attachment 1
specifies the escalation factors corresponding to the [*] applicable to Eligible
Aircraft from among [*].
          3.1.2 Purchase Rights Aircraft. Tables analogous to Attachment 1
containing escalation factors corresponding to the [*] using the [*]
P.A. No. 3134
[ * ]  Escalation Alternatives
BOEING PROPRIETARY
Supplemental Agreement 2, Page 40 of 43

 

--------------------------------------------------------------------------------

 

(BOEING LOGO) [y84222y8422201.gif]
Atlas Air, Inc.
6-1162-ILK-0437 Page 3
          3.3 Escalation after Escalation Period for Aircraft which Elected [*].
For those aircraft for which Customer has [*], if an aircraft has not [*] within
the [*], the [*] will be calculated in accordance with the provisions of the
Standard Escalation Formula or the Standard Escalation Formula, as set forth
below [*] and [*] for the Purchase Rights Aircraft as described in 3.1.2 above),
whichever is less.

    [*]

          Where:

    [*]

4. Confidential Treatment.
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential. Customer
agrees that it will treat this Letter Agreement and the information contained
herein as confidential and will not, without the prior written consent of
Boeing, disclose this Letter Agreement or any information contained herein to
any other person or entity. In the event that Customer in good faith concludes
(based upon an opinion of counsel) that disclosure of information contained in
this Letter Agreement may be required by applicable law or governmental
regulations, Customer shall advise Boeing in writing prior to such disclosure,
if possible, or, if
[*] Escalation Alternatives
BOEING PROPRIETARY
Supplemental Agreement 2, Page 41 of 43

 

--------------------------------------------------------------------------------

 

(BOEING LOGO) [y84222y8422201.gif]
Atlas Air, Inc.
6-1162-ILK-0437 Page 4
not possible, then promptly upon receiving such order or upon identifying such
need to comply, in order to enable Boeing to take whatever steps it deems
necessary to protect its interests in this regard, and Customer will, in any
event, disclose only that portion of the information which it is legally
required to disclose and Customer will use its reasonable endeavors to protect
the confidentiality of such information to the widest extent possible in the
circumstances. The parties acknowledge and agree that information contained in
this Letter Agreement may be disclosed to Customer’s existing lenders (PDP
Lenders) under the Facility Agreement dated January 30, 2008 among Customer,
Norddeutsche Landesbank Girozentrale, and Bank of Utah, as security trustee
subject to the existing confidentiality agreement with the PDP Lender.
Very truly yours,
THE BOEING COMPANY

         
By:
       
 
       
 
       
 
  [*]    
 
       
Its:
  ATTORNEY IN FACT    

Accepted and agreed to this 1st day of March of 2010.
ATLAS AIR, INC.

               
 
       
By:
  Mr. Lawrence B. Gibbons    
 
       
 
       
Its:
  Vice President, Procurement    

P.A. No. 3134
[*] Escalation Alternatives
BOEING PROPRIETARY
Supplemental Agreement 2, Page 42 of 43

 

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Atlas Air, Inc.
Attachment 1 to 6-1162-ILK-0437 Page 1 of 1
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P.A. No. 3134
[*] Escalation Alternatives
BOEING PROPRIETARY [*]
Supplemental Agreement 2, Page 43 of 43