Exhibit 10.52

 

*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND

FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 24B-2 OF THE

SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

 

AIRBUS A330/A350XWB PURCHASE AGREEMENT

 

Dated as of  31st January, 2008

 

between

 

Airbus S.A.S.,

 

and

 

Hawaiian Airlines, Inc.

 

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C O N T E N T S

 

0 -

DEFINITIONS

2

 

 

 

1 -

SALE AND PURCHASE

10

 

 

 

2 -

SPECIFICATION

10

 

 

 

2.1

SPECIFICATION

10

2.2

PROPULSION SYSTEMS

13

 

 

 

3 -

PRICE

13

 

 

 

3.1

BASE PRICE OF THE A330-200 AIRCRAFT

13

3.2

FINAL CONTRACT PRICE OF THE A330-200 AIRCRAFT

13

3.3

BASE PRICE OF THE A350XWB-800 AIRCRAFT

13

3.4

FINAL CONTRACT PRICE OF THE A350XWB-800 AIRCRAFT

14

 

 

 

4 -

PRICE REVISION

14

 

 

 

4.1

SELLER PRICE REVISION FORMULA

14

4.2

A330-200 PROPULSION SYSTEMS PRICE REVISION

14

 

 

 

5 -

PAYMENT TERMS

15

 

 

 

5.1

SELLER’S ACCOUNT

15

5.2

PREDELIVERY PAYMENTS

15

5.3

COMMITMENT FEE

16

5.4

PAYMENT OF BALANCE OF THE FINAL CONTRACT PRICE

17

5.5

TAXES

17

5.6

APPLICATION OF PAYMENTS

17

5.7

SETOFF PAYMENTS

18

5.8

OVERDUE PAYMENTS

18

5.9

PROPRIETARY INTEREST

18

5.10

PAYMENT IN FULL

18

 

 

 

6 -

MANUFACTURE PROCEDURE - INSPECTION

19

 

 

 

6.1

MANUFACTURE PROCEDURES

19

6.2

INSPECTION

19

6.3

REPRESENTATIVES OF THE BUYER

20

 

 

 

7 -

CERTIFICATION

20

 

 

 

7.1

TYPE CERTIFICATION

20

7.2

EXPORT CERTIFICATE OF AIRWORTHINESS

20

7.3

SPECIFICATION CHANGES BEFORE DELIVERY

20

7.4

SPECIFICATION CHANGES AFTER AIRCRAFT READY FOR DELIVERY

21

 

 

 

8 -

TECHNICAL ACCEPTANCE

21

 

 

 

8.1

TECHNICAL ACCEPTANCE PROCESS

21

8.2

BUYER’S ATTENDANCE

22

8.3

CERTIFICATE OF ACCEPTANCE

22

8.4

FINALITY OF ACCEPTANCE

22

8.5

AIRCRAFT UTILIZATION

23

 

 

 

9 -

DELIVERY

23

 

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9.1

DELIVERY SCHEDULE

23

9.2

DELIVERY PROCESS

24

9.3

FLYAWAY

24

 

 

 

10 -

EXCUSABLE DELAY AND TOTAL LOSS

25

 

 

 

10.1

SCOPE OF EXCUSABLE DELAY

25

10.2

CONSEQUENCES OF EXCUSABLE DELAY

25

10.3

TERMINATION ON EXCUSABLE DELAY

26

10.4

TOTAL LOSS, DESTRUCTION OR DAMAGE

26

10.5

REMEDIES

27

 

 

 

11 -

INEXCUSABLE DELAY

27

 

 

 

11.1

LIQUIDATED DAMAGES

27

11.2

RENEGOTIATION

27

11.3

TERMINATION

28

11.4

REMEDIES

28

 

 

 

12.

WARRANTIES AND SERVICE LIFE POLICY

28

 

 

 

12.1

WARRANTY

28

12.2

SERVICE LIFE POLICY

38

12.3

SUPPLIER WARRANTIES AND SERVICE LIFE POLICIES

41

12.4

INTERFACE COMMITMENT

42

12.5

EXCLUSIVITY OF WARRANTIES

43

12.6

DUPLICATE REMEDIES

45

12.7

TRANSFERABILITY

45

12.8

NEGOTIATED AGREEMENT

45

 

 

 

13 -

PATENT AND COPYRIGHT INDEMNITY

47

 

 

 

13.1

INDEMNITY

47

13.2

ADMINISTRATION OF PATENT AND COPYRIGHT INDEMNITY CLAIMS

48

 

 

 

14 -

TECHNICAL DATA AND SOFTWARE SERVICES

49

 

 

 

14.1

TECHNICAL DATA

49

14.2

AIRCRAFT IDENTIFICATION FOR TECHNICAL DATA

49

14.3

INTEGRATION OF EQUIPMENT DATA

50

14.4

DELIVERY OF TECHNICAL DATA

51

14.5

REVISION SERVICE FOR TECHNICAL DATA

51

14.6

SERVICE BULLETIN (SB) INCORPORATION FOR TECHNICAL DATA

51

14.7

TECHNICAL DATA FAMILIARIZATION

52

14.8

CUSTOMER ORIGINATED CHANGES (COC)

52

14.9

INTEGRATED SOFTWARE

52

14.10

ON-LINE SERVICES; CUSTOMER PORTAL

53

14.11

WARRANTY

53

14.12

PROPRIETARY RIGHTS

53

14.13

SOFTWARE SERVICES

54

14.14

GENERAL PROVISIONS

54

14.15

FUTURE DEVELOPMENTS IN TECHNICAL DATA

54

14.16

CONFIDENTIALITY

54

14.17

TRANSFERABILITY

55

 

 

 

15 -

SELLER REPRESENTATIVES

55

 

 

 

15.1

RESIDENT CUSTOMER SUPPORT REPRESENTATIVES

55

15.2

CUSTOMER SUPPORT DIRECTOR

56

15.3

BUYER’S SUPPORT

56

 

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15.4

TEMPORARY ASSIGNMENT AND WITHDRAWAL OF RESIDENT CUSTOMER SUPPORT REPRESENTATIVE

56

15.5

REPRESENTATIVES’ STATUS

56

 

 

 

16 -

TRAINING AND TRAINING AIDS

57

 

 

 

16.1

GENERAL

57

16.2

SCOPE

57

16.3

TRAINING ORGANIZATION / LOCATION

57

16.4

TRAINING COURSES

58

16.5

PREREQUISITES AND CONDITIONS

59

16.6

LOGISTICS

60

16.7

FLIGHT OPERATIONS TRAINING

62

16.8

MAINTENANCE TRAINING

63

16.9

SUPPLIER AND ENGINE MANUFACTURER TRAINING

64

16.10

TRAINING AIDS FOR THE BUYER’S TRAINING ORGANIZATION

64

 

 

 

17 -

SUPPLIER PRODUCT SUPPORT

72

 

 

 

17.1

EQUIPMENT SUPPLIER PRODUCT SUPPORT AGREEMENTS

72

17.2

SUPPLIER COMPLIANCE

72

17.3

SUPPLIER PART REPAIR STATIONS

72

 

 

 

18 -

BUYER FURNISHED EQUIPMENT

73

 

 

 

18.1

ADMINISTRATION

73

18.2

REQUIREMENTS

74

18.3

BUYER’S OBLIGATION AND SELLER’S REMEDIES

74

18.4

TITLE AND RISK OF LOSS

75

18.5

DISPOSITION OF BFE FOLLOWING TERMINATION

75

 

 

 

19 -

INDEMNITIES AND INSURANCE

76

 

 

 

19.1

SELLER’S INDEMNITIES

76

19.2

BUYER’S INDEMNITIES

77

19.3

NOTICE AND DEFENSE OF CLAIMS

77

19.4

INSURANCE

77

 

 

 

20 -

ASSIGNMENTS AND TRANSFERS

78

 

 

 

20.1

ASSIGNMENTS BY BUYER

78

20.2

ASSIGNMENTS ON SALE, MERGER OR CONSOLIDATION

78

20.3

DESIGNATIONS BY SELLER

79

20.4

TRANSFER OF RIGHTS AND OBLIGATIONS UPON REORGANIZATION

79

20.5

CAPE TOWN CONVENTION

79

 

 

 

21 -

TERMINATION

80

 

 

 

21.1

TERMINATION EVENTS

80

21.2

REMEDIES IN EVENT OF TERMINATION

80

21.3

DEFINITIONS

80

21.4.

NOTICE OF TERMINATION EVENT

81

21.5

INFORMATION COVENANTS

81

 

 

 

22 -

MISCELLANEOUS PROVISIONS

83

 

 

 

22.1

DATA RETRIEVAL

83

22.2

NOTICES

83

22.3

WAIVER

84

22.4

INTERNATIONAL SUPPLY CONTRACT

84

22.5

CERTAIN REPRESENTATIONS OF THE PARTIES

84

22.6

INTERPRETATION AND LAW

85

22.7

WAIVER OF JURY TRIAL

86

 

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22.8

NO REPRESENTATIONS OUTSIDE OF THIS AGREEMENT

86

22.9

CONFIDENTIALITY

87

22.10

SEVERABILITY

87

22.11

ENTIRE AGREEMENT

88

22.12

INCONSISTENCIES

88

22.13

LANGUAGE

88

22.14

COUNTERPARTS

88

22.15

WAIVER OF CONSEQUENTIAL DAMAGES

88

 

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EXHIBITS

 

EXHIBIT A1

 

A330-200 STANDARD SPECIFICATION

 

 

 

EXHIBIT A2

 

ADD

 

 

 

EXHIBIT B1

 

FORM OF SPECIFICATION CHANGE NOTICE

 

 

 

EXHIBIT B2

 

FORM OF MANUFACTURER SPECIFICATION CHANGE NOTICE

 

 

 

EXHIBIT B3

 

A330-200 SPECIFICATION CHANGE NOTICES

 

 

 

EXHIBIT B4

 

A350XWB-800 SPECIFICATION CHANGE NOTICES

 

 

 

EXHIBIT C

 

SELLER SERVICE LIFE POLICY – ITEMS COVERED

 

 

 

EXHIBIT D

 

FORM OF CERTIFICATE OF ACCEPTANCE

 

 

 

EXHIBIT E

 

FORM OF BILL OF SALE

 

 

 

EXHIBIT F1

 

A330-200 TECHNICAL DATA INDEX

 

 

 

EXHIBIT F2

 

A350XWB TECHNICAL DATA INDEX

 

 

 

EXHIBIT G1

 

SELLER PRICE REVISION FORMULA

 

 

 

EXHIBIT G2

 

A330-200 PROPULSION SYSTEMS PRICE REVISION FORMULA

 

 

 

EXHIBIT H

 

GENERAL CONDITIONS OF LICENSING OF SOFTWARE

 

 

 

EXHIBIT I

 

GENERAL TERMS AND CONDITIONS TO AND USE OF THE SECURE AREA OF THE AIRBUSWORLD

 

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P U R C H A S E A G R E E M E N T

 

This agreement (“Agreement”) is made this thirty-first day of January 2008

 

between

 

AIRBUS S.A.S. organized and existing under the laws of the Republic of France,
having its registered office located at

 

1, rond-point Maurice Bellonte

31700 BLAGNAC

FRANCE

 

(hereinafter referred to as the “Seller”)

 

and

 

Hawaiian Airlines, Inc. a corporation, organized and existing under the laws of
the State of Delaware, United States of America, having its principal corporate
offices located at:

3375 Koapaka Street,

Ste. G-350

Honolulu, Hawaii, 96819

USA

 

(hereinafter referred to as the “Buyer”)

 

                                                WHEREAS the Buyer wishes to
purchase and the Seller is willing to sell up to six (6) Airbus A330-200 model
aircraft, and up to six (6) Airbus A350XWB-800 on the terms and conditions
herein provided,

 

NOW THEREFORE IT IS AGREED AS FOLLOWS:

 

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0 -                                   DEFINITIONS

 

For all purposes of this Agreement (defined below), except as otherwise
expressly provided or unless the context otherwise requires, the following terms
shall have the following meanings:

 

A330-200 Aircraft - any or all of the six (6) firm A330-200 aircraft for which
the delivery schedule is set forth in Clause 9.1.1 to be sold by the Seller and
purchased by the Buyer pursuant to this Agreement, together with all components,
equipment, parts and accessories installed in or on such aircraft and the
Propulsion Systems installed thereon upon delivery.

 

A330-200 Airframe – any A330-200 Aircraft, excluding the Propulsion Systems
thereof.

 

A330-200 Propulsion Systems - as set forth in Clause 2.2.

 

A330-200 Propulsion Systems Price Revision Formula - the Propulsion Systems
price revision formula set forth in Exhibit G-2 hereto.

 

A330-200 Propulsion Systems Reference Price - as set forth in Clause 3.1.3.

 

A330-200 Revision Service Period – as defined in Clause 14.5.

 

A330-200 Scheduled Delivery Quarter – as defined in Clause 9.1.1.

 

A330-200 Standard Specification - the A330-200 standard specification document
number G.000.02000, Issue 4.3, dated July, 13, 2006, published by the Seller, a
copy of which is annexed as Exhibit A1.

 

A330-200 Specification – the A330-200 Standard Specification as amended by the
SCNs set forth in the respective Exhibit B3 hereto and as may be further amended
or modified in accordance with this Agreement.

 

A330-200 Warranty Period – as defined in Clause 12.1.3.1.

 

A350XWB-800 Aircraft - any or all of the six (6) firm A350XWB-800 aircraft for
which the delivery schedule is set forth in Clause 9.1.1 to be sold by the
Seller and purchased by the Buyer pursuant to this Agreement, together with all
components, equipment, parts and accessories installed in or on such aircraft
and the A350XWB-800 Propulsion Systems installed thereon upon delivery.

 

A350XWB-800 Airframe –any A350XWB-800 Aircraft, excluding the Propulsion Systems
thereof, but including the nacelles and thrust reversers.

 

A350XWB-800 Propulsion Systems - as set forth in Clause 2.2.

 

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A350XWB-800 Revision Service Period – as defined in Clause 14.5.

 

A350XWB-800 Scheduled Delivery Quarter – as defined in Clause 9.1.1.

 

A350XWB-800 Standard Specification – as defined in Clause 2.1.

 

A350XWB-800 Specification – the A350XWB-800 Standard Specification as amended by
the SCNs set forth in the respective Exhibit B4 hereto and as may be further
amended or modified in accordance with this Agreement.

 

A350XWB-800 Aircraft Warranty Period – as defined in Clause 12.1.3.1.

 

ADD – the Seller’s reference document for the A350XWB model aircraft, the
aircraft description document V 000 XWB issue E dated as of September 10th,
2007, a copy of which is annexed as Exhibit A2.

 

Affiliate - with respect to any person or entity, any other person or entity
directly or indirectly controlling, controlled by or under common control with
such person or entity.

 

Agreement - this Airbus A330/A350XWB purchase agreement, including all exhibits
and appendixes attached hereto, as the same may be amended or modified and in
effect from time to time.

 

Airbus Advanced CBT – as is defined in Clause 16.10.1.

 

Airbus CBT Administrator Course – as defined in Clause 16.10.3.1.

 

Airbus CBT Technical Specification – as defined in Clause 16.10.3.1.

 

AircraftU – any or all of the A330-200 Aircraft, or the A350XWB-800 Aircraft, to
be sold by the Seller and purchased by the Buyer pursuant to this Agreement, as
applicable.

 

Aircraft Training Services - all on-aircraft training courses and training
support provided to the Buyer pursuant to this Agreement, including flight
training, line training, flight assistance, line assistance, and maintenance
support.

 

Airframe - the A330-200 Airframe or the A350XWB-800 Airframe, as applicable.

 

ANACS - Airbus North America Customer Services, Inc., a corporation organized
and existing under the laws of Delaware, having its registered office located at
198 Van Buren Street, Suite 300, Herndon, VA  20170, or any successor thereto.

 

AOG and Repair Guide – The AOG and repair guide published by the Seller and
revised from time to time.

 

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ATA Specification - recommended specifications developed by the Air Transport
Association of America reflecting consensus in the commercial aviation industry
on accepted means of communicating information, conducting business, performing
operations and adhering to accepted practices.

 

Aviation Authority - when used with respect to any jurisdiction, the government
entity that, under the laws of such jurisdiction, has control over civil
aviation or the registration, airworthiness or operation of civil aircraft in
such jurisdiction.

 

Aviation Authority Directive - a directive, issued by an Aviation Authority,
having legal force.

 

Balance of the Final Contract Price - the amount payable by the Buyer to the
Seller on the Delivery Date for an Aircraft after deducting from the Final
Contract Price for such Aircraft the amount of all Predelivery Payments received
by the Seller from the Buyer in respect of such Aircraft on or before the
Delivery Date for such Aircraft and not applied, pursuant to Clause 5.4, to any
other amount owed by the Buyer to the Seller.

 

Base Price - for any Aircraft, Airframe, SCNs or Propulsion Systems, as more
completely described in Clause 3.1 and 3.3.

 

BFE – as defined in Clause 18.1.1.

 

BFE Data – as defined in Clause 14.3.2.1.

 

BFE Definition - as defined in Clause 18.1.1.

 

Bill of Sale – as defined in Clause 9.2.2.

 

Business Day - with respect to any action to be taken hereunder, a day other
than a Saturday, Sunday or other day designated as a holiday in Toulouse, France
or Honolulu, Hawaii, United States.

 

Buyer Furnished Equipment or BFE - for any Aircraft, all the items of equipment
that shall be furnished by the Buyer and installed in the Aircraft by the
Seller, as defined in the Specification.

 

Catalogue Items – as defined in Clause 2.1.6.

 

Cape Town Treaty - collectively the Convention and the Protocol, together with
the Regulations and Procedures for the International Registry, and all other
rules, amendments, supplements, and revisions thereto.

 

CDF Date – as defined in Clause 2.1.6.

 

Certificate – as defined in Clause 16.4.4.

 

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Certificate of Acceptance – as defined in Clause 8.3.

 

Change in Law – as defined in Clause 7.3.1.

 

COC Data – as defined in Clause 14.8.

 

Commitment Fee - each of the commitment fee amounts described in Clause 5.3.

 

Convention - the Convention on International Interests in Mobile Equipment
signed in Cape Town, South Africa on November 16, 2001, as ratified by the
United States.

 

CS Catalog – as defined in Clause 14.5.

 

Confidential Information  – as defined in Clause 22.9.

 

Contractual Definition Freeze or CDF – as defined in Clause 2.1.6.

 

Customer Originated Changes or COC - as defined in Clause 14.8.

 

Customization Milestones Chart  - as defined in Clause 2.1.6.

 

Delivery - the transfer of title to an Aircraft from the Seller to the Buyer in
accordance with Clause 9.

 

Delivery Date - the date on which Delivery occurs.

 

Delivery Location - the facilities of the Seller at the location of final
assembly of the Aircraft, which is currently at Airbus France S.A.S works in
Toulouse, France.

 

Development Changes - as defined in Clause 2.1.3.

 

DGAC - the Direction Générale de l’Aviation Civile of France or any successor
thereto.

 

EASA - European Aviation Safety Agency or any successor thereto.

 

Engineering Support Services – as defined in Clause 15.6.

 

Excusable Delay - as defined in Clause 10.1.

 

Export Certificate of Airworthiness - an export certificate of airworthiness
issued by the Aviation Authority of the Delivery Location.

 

FAA - the U.S. Federal Aviation Administration, or any successor thereto.

 

Federal Aviation Regulations – regulations issued by the FAA from time to time.

 

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Final Contract Price - the Final Contract Price of the A330-200 Aircraft or the
Final Contract Price of the A350XWB-800 Aircraft, as applicable.

 

Final Contract Price of the A330-200 Aircraft – as defined in Clause 3.2.

 

Final Contract Price of the A350XWB-800 Aircraft – as defined in Clause 3.4.

 

FSN – as defined in Clause 14.2.

 

General Conditions – as defined in Clause 14.9.2.

 

Goods and Services  – any goods, excluding Aircraft, and services that may be
purchased by the Buyer from the Seller or its designee.

 

GTC – as defined in Clause 14.10.1.

 

Holdings –Hawaiian Holdings, Inc., a Delaware corporation.

 

Indemnitee – as defined in Clause 19.3.

 

Indemnitor – as defined in Clause 19.3.

 

Inexcusable Delay - as defined in Clause 11.1.

 

In-house Warranty Repair- as defined in Clause 12.1.8.

 

In-house Warranty Labor Rate - as defined in Clause 12.1.8(v)(b).

 

Interface Problem - as defined in Clause 12.4.1.

 

International Registry – as defined in the Cape Town Treaty.

 

LIBOR - the London Interbank Offered Rate for each stated interest period,
determined on the basis of the offered rates for six-month deposits in US
dollars, appearing on the Reuters Screen LIBO Page as of 11:00 a.m., London
time, on the day that is two (2) days (other than a Business Day on which
banking institutions are authorized to close in London) before the first day of
an interest period. If at least two (2) such offered rates appear on the Reuters
Screen LIBO Page, the rate for that interest period shall be the arithmetic mean
of such offered rates rounded to the nearest one-hundred thousandth of a basis
point . If only one (1) offered rate appears, the rate for that interest period
shall be “LIBOR” as quoted by the bank listed on the Reuters Screen LIBO Page.

 

License – as defined in Clause 16.10.4.1.

 

Losses – as defined in Clause 19.1.

 

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Manufacturer Specification Change Notice or MSCN -as defined in Clause 2.1.4.

 

MRO – as defined in Clause 14.16.

 

MSN – as defined in Clause 12.1.7(v)(i).

 

Non-Catalogue Items – as defined in Clause 2.1.6.

 

Open Choice Date – as defined in Clause 2.1.6.

 

Options Catalogue – as defined in Clause 2.1.6.

 

Other Indebtedness – as defined in Clause 21.5(c).

 

PEP – as defined in Clause 14.13.1.

 

Predelivery Payment - any of the payments made in accordance with Clause 5.2.

 

Predelivery Payment Reference Price - as defined in Clause 5.2.2.

 

Propulsions Systems – either or both the A330-200 Propulsion Systems or the
A350XWB-800 Propulsion Systems.

 

Protocol - the Protocol to the Convention on International Interests in Mobile
Equipment on Matters Specific to Aircraft Equipment signed in Cape Town, South
Africa on November 16, 2001, as ratified by the United States.

 

Ready for Delivery – with respect to any Aircraft, when (i) the Technical
Acceptance Process has been successfully completed for an Aircraft and (ii) the
Export Certificate of Airworthiness has been issued for such Aircraft.

 

Regulations and Procedures for the International Registry - the Regulations and
Procedures for the International Registry issued, from time to time, pursuant to
Article 17(2)(d) of the Convention and Article XVIII of the Protocol.

 

Reuters Screen LIBOR Page – the display designated as page “LIBO” on the Reuters
Monitor Money Rates Service (or any successor to such page or service).

 

Revision Service Period – the A330-200 Revision Service Period or the
A350XWB-800 Revision Service Period, as applicable.

 

Scheduled Delivery Month - as defined in Clause 9.1.1.

 

Scheduled Delivery Quarter – means the A330-200 Scheduled Delivery Quarter or
the A350XWB Scheduled Delivery Quarter, as applicable.

 

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SEC – as defined in Clause 21.5(a).

 

Secure Area – as defined in Clause 14.10.1.

 

Seller Price Revision Formula - the price revision formula set forth in
Exhibit G1.

 

Seller’s Representatives - the representatives of the Seller referral to in
Clause 15.

 

Seller’s Service Bulletin – a Service Bulletin issued by the Seller.

 

Seller’s Training Center – as defined in Clause 16.3.1.

 

Service Bulletin – as defined in the Federal Aviation Regulations.

 

Service Life Policy - as defined in Clause 12.2.

 

SFE – means Seller furnished equipment.

 

Software Services – as defined in Clause 14.

 

Specification - the applicable Specification for the relevant Aircraft (A330-200
Specification for the A330-200 Aircraft, or A350XWB-800 Specification for the
A350XWB-800 Aircraft).

 

Specification Change Notice or SCN - as defined in Clause 2.1.2.

 

Standard Specification - the A330-200 Standard Specification, or the A350XWB-800
Standard Specification, as applicable.

 

Successor – as defined in Clause 20.4.

 

SUPPLIER - ANY SUPPLIER OF SUPPLIER PARTS.

 

Supplier Part - any component, equipment, accessory or part installed in an
Aircraft at the time of Delivery thereof, not including the Propulsion Systems
or Buyer Furnished Equipment, for which there exists a Supplier Product Support
Agreement.

 

Supplier Product Support Agreement - an agreement between the Seller and a
Supplier containing, among other things, enforceable and transferable warranties
(and in the case of landing gear suppliers, service life policies for selected
structural landing gear elements).

 

Taxes – as defined in Clause 5.5.3.

 

Technical Acceptance Flight – as defined in Clause 8.1.2.

 

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Technical Acceptance Process  – as defined in Clause 8.1.1.

 

Technical Data - as defined in Clause 14 and Exhibit F.

 

Total Loss - as defined in Clause 10.4

 

Training Conference - as defined in Clause 16.4.1.

 

Training Course Catalog – as defined in Clause 16.4.1.

 

Type Certificate - as defined in Clause 7.1

 

VAT – as defined in Clause 5.5.1.

 

Warranted Part - as defined in Clause 12.1.1.

 

Warranty Claim - as defined in Clause 12.1.7(v).

 

Warranty Period – means the A330-200 Aircraft Warranty Period or the A350XWB-800
Aircraft Warranty Period, as applicable.

 

The terms “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Agreement, and not a particular Clause thereof. The definition of
a singular in this Clause 0 shall apply to plurals of the same words.

 

Except as provided in Clause 22.6.4, references in this Agreement to an exhibit,
schedule, article, section, subsection or clause refer to the appropriate
exhibit or schedule to, or article, section, subsection or clause in this
Agreement.

 

Each agreement defined in this Clause 0 shall include all appendixes, exhibits
and schedules thereto. If the prior written consent of any person is required
hereunder for an amendment, restatement, supplement or other modification to any
such agreement and the consent of each such person is obtained, references in
this Agreement to such agreement shall be to such agreement as so amended,
restated, supplemented or modified. References in this Agreement to any statute
shall be to such statute as amended or modified and in effect at the time any
such reference is operative.

 

The term “including” when used in this Agreement means “among other things”
except when used in the computation of time periods.

 

Technical and trade terms not otherwise defined herein shall have the meanings
assigned to them as generally accepted in the aircraft manufacturing industry.

 

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1 -                            SALE AND PURCHASE

 

The Seller shall sell and deliver to the Buyer, and the Buyer shall purchase and
take delivery of the Aircraft from the Seller, subject to the terms and
conditions in this Agreement.

 

2 -                            SPECIFICATION

 

2.1                           SPECIFICATION

 

The Aircraft shall be manufactured in accordance with the Specification.

 

At the date of signature of this Agreement, the design development of the
A350XWB-800 Aircraft is under finalization and the aircraft definition
corresponding to the Base Price of the A350XWB-800 Aircraft fitted with Trent
XWB74 engines at 74,000 lbs thrust, set forth in Clause 3 of this Agreement, is
contained in the ADD.

 

The ADD shall be superseded at no additional cost by an initial standard
specification the “A350XWB-800 Standard Specification”. Subject to the Seller’s
certification, industrial and commercial constraints, some equipment currently
set forth in the ADD may be replaced by equipment with equivalent functions.

 

Notwithstanding the foregoing paragraph, if certain items which are BFE in the
ADD are converted into SFE items in the A350XWB-800 Standard Specification, the
costs of such items and their incorporation into the A350XWB-800 Standard
Specification shall be chargeable to the Buyer.

 

[...***...]

 

In addition, any evolution of the Propulsion Systems as set forth in the ADD
that is reflected in the A350XWB-800 Standard Specification may result in
additional cost to the Buyer.

 

2.1.1                        Specification Amendment

 

The Seller and Buyer understand and agree that the applicable Specifications may
be amended following signature of this Agreement in accordance with the terms of
this Clause 2.

 

2.1.2                        Specification Change Notice

 

Each Specification may be amended by written agreement between the Seller and
Buyer in a SCN. Each SCN shall be substantially in the form set out in
Exhibit B1

 

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and shall set out such SCN’s scope of implementation and shall also set forth,
in detail, the particular change to be made to the Specification and the effect,
if any, of such change on design, performance, weight, or Scheduled Delivery
Month of the Aircraft affected thereby, interchangeability or replaceability
requirements of the Specification. A SCN may result in an adjustment of the Base
Price of the Aircraft, which adjustment if any, shall be specified in the SCN.

 

2.1.3                        Development Changes

 

The Specification may also be amended to incorporate changes deemed necessary by
the Seller to improve the Aircraft, prevent delay or ensure compliance with this
Agreement (“Development Changes”), as set forth hereunder.

 

2.1.4                        Manufacturer Specification Changes Notices

 

The Specification may be amended by the Seller through a Manufacturer
Specification Change Notice (“MSCN”), which shall be substantially in the form
set out in Exhibit B2 hereto and shall set out in detail the particular change
to be made to the Specification and the effect, if any, of such change on
performance, weight, Base Price, Delivery Date of the Aircraft affected thereby
and interchangeability or replaceability requirements under the Specification.

 

Except when the MSCN is necessitated by an Aviation Authority Directive or by
equipment obsolescence, in which case the MSCN shall be accomplished without
requiring the Buyer’s consent, if the MSCN adversely affects the performance,
weight, Base Price, Delivery Date of the Aircraft affected thereby or the
interchangeability or replaceability requirements under the Specification, the
Seller shall notify the Buyer of a reasonable period of time during which the
Buyer must accept or reject such MSCN. If the Buyer does not notify the Seller
of the rejection of the MSCN within such period, the MSCN shall be deemed
accepted by the Buyer and the corresponding modification shall be accomplished.

 

2.1.5                        In the event of the Seller revising the
Specification to incorporate Development Changes which have no adverse effect on
any of the elements as set forth in 2.1.4 above, such revision shall be
performed by the Seller without the Buyer’s consent. In such cases, the Seller
shall provide to the Buyer the details of all changes in a digital format and on
a regular basis.

 

2.1.6                        Customization Milestones Chart

 

No later than fifteen months before the first A330-200 Aircraft Delivery with
regard to the A330-200 Aircraft and within a reasonable period with regard to
the A350XWB-800 Aircraft, the Seller shall provide the Buyer with a
customization milestones chart (the “Customization Milestones Chart”) setting
out how far in advance of the Scheduled Delivery Month of the Aircraft an SCN
must be executed in order to integrate into the Specification any items
requested by the

 

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Buyer from the Seller’s catalogue of Specification change options (the “Options
Catalogue”). All such items requested by the Buyer must be by the date of
implementation of the SCN certified for incorporation into the Aircraft.

 

Included on the Customization Milestones Chart shall be the date by which the
contractual definition of the Aircraft must be finalized and all relevant SCNs
executed (the “Contractual Definition Freeze” or “CDF”), in order to assure
delivery of the Aircraft in the Scheduled Delivery Month. Such date shall be
referred to as the “CDF Date.”

 

With respect to the A350XWB-800 Aircraft only, the Customization Milestones
Chart shall include a date (the “Open Choice Date”) by which the Buyer must
notify the Seller of its intent to include Non-Catalogue Items, as is further
described in Clause 2.1.7. Following the Open Choice date, if the Buyer has not
notified the Seller of its intentions, the Buyer shall be limited to selection
of items in the Options Catalogue (“Catalogue Items”).

 

2.1.7                        Non-Catalogue Items Customization

 

With respect to the A350XWB-800 Aircraft, the Buyer shall be entitled to submit
to the Seller a request for items outside the scope of the Options Catalogue
(“Non-Catalogue Items”). Seller’s acceptance of such items for incorporation
into the Aircraft is subject to and conditioned on all of the following:

 

(A)                          such item is capable of successful interface, both
with relevant systems in the Aircraft and with other options selected by the
Buyer, whether Catalogue Items or Non-Catalogue Items;

 

(B)                           if requested by the Buyer, or deemed necessary by
the Seller, a feasibility study is performed by the Seller and the results of
such study, in the Seller’s reasonable judgment, establish that incorporation of
such non-catalogue Item is feasible and shall have no adverse impact on the
Seller’s industrial planning;

 

(C)                           all BFE required for the Non-Catalogue Item shall
comply with the requirements of Clause 18 and

 

(D)                          the Buyer and the Seller agree on a cost to be
charged to the Buyer for the item that reflects the additional effort and
expense incurred by the Seller in accommodating the Buyer’s request for such
item.

 

2.1.8                        Contractual Definition Freeze

 

With respect to the A350XWB-800 Aircraft only, if the Buyer elects to include
Non-Catalogue Items in the A350XWB-800 Specification, the Customization
Milestones Chart shall contain an additional, earlier date, by which all SCNs

 

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relating to Non-Catalogue Items must be executed, in order to assure delivery of
the Aircraft in the Scheduled Delivery Month.

 

2.2                           PROPULSION SYSTEMS

 

The A330-200 Aircraft shall be equipped with a set of Rolls-Royce Trent 772B EP
engines, including standard equipment, nacelles and thrust reversers (the
“A330-200 Propulsion Systems”).

 

The A350XWB-800 Aircraft shall be equipped with a set of Rolls-Royce Trent XWB74
engines, including standard equipment (the “A350XWB-800 Propulsion Systems”).

 

3 -                            PRICE

 

3.1                           BASE PRICE OF THE A330-200 AIRCRAFT

 

3.1.1                        A330-200 Aircraft

 

The Base Price of each A330-200 Aircraft is the sum of:

 

[...***...]

 

3.1.2                        Base Price of the Airframe for the A330-200
Aircraft

 

The Base Price of the Airframe for the A330-200 Aircraft is the sum of

 

[...***...]

 

3.1.3                        Base Price of the A330-200 Propulsion Systems

 

The Base Price of the A330-200 Propulsion Systems, [...***...]

 

3.2                           FINAL CONTRACT PRICE OF THE A330-200 AIRCRAFT

 

Final Contract Price of an A330-200 Aircraft shall be the sum of:

 

[...***...]

 

3.3                           BASE PRICE OF THE A350XWB-800 AIRCRAFT

 

3.3.1                        A350XWB-800 Aircraft

 

The Base Price of the A350XWB-800 Aircraft is the sum of [...***...]

 

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3.4                           FINAL CONTRACT PRICE OF THE A350XWB-800 AIRCRAFT

 

The Final Contract Price of an A350XWB-800 Aircraft shall be the sum of:

 

[...***...]

 

4 -                            PRICE REVISION

 

4.1                           SELLER PRICE REVISION FORMULA

 

The Base Price of the Airframe and of the SCNs relating to the Airframe for the
A330-200 Aircraft are subject to revision up to and including the Delivery Date
in accordance with the Seller Price Revision Formula.

 

The Base Price of the Aircraft and of the SCNs for the A350XWB-800 Aircraft are
subject to revision up to and including the Delivery Date in accordance with the
Seller Price Revision Formula.

 

4.2                           A330-200 PROPULSION SYSTEMS PRICE REVISION

 

4.2.1                        The A330-200 Propulsion Systems Reference Price and
the Base Price of the SCNs related to the A330-200 Propulsion Systems are
subject to revision in accordance with the A330-200 Propulsion Systems Price
Revision Formula up to and including the Delivery Date.

 

4.2.2                        The A330-200 Propulsion Systems Reference Price,
the prices of the related equipment and the A330-200 Propulsion Systems Price
Revision Formula are based on information received from the manufacturer of the
A330-200 Propulsions Systems and are subject to amendment by the manufacturer of
the A330-200 Propulsion Systems at any time prior to Delivery. If the
manufacturer of the A330-200 Propulsion Systems makes any such amendment, the
amendment will be deemed to be incorporated into this Agreement and the A330-200
Propulsion Systems Reference Price, the prices of the related equipment and the
A330-200 Propulsion Systems Price Revision Formula will be adjusted accordingly.
The Seller agrees to notify the Buyer as soon as the Seller receives notice of
any such amendment from the manufacturer of the A330-200 Propulsion Systems.

 

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5 -                            PAYMENT TERMS

 

5.1                           SELLER’S ACCOUNT

 

The Buyer shall pay the Predelivery Payments, the Balance of the Final Contract
Price and any other amount due hereunder in immediately available funds in
United States dollars to: AIRBUS S.A.S., [...***...] or to such other US Dollar
account as may be designated by the Seller.

 

5.2                           PREDELIVERY PAYMENTS

 

5.2.1                        Predelivery Payments are nonrefundable (although
amounts equal to Predelivery Payments may be paid to the Buyer pursuant to
Clause 11.3) and shall be paid by the Buyer to the Seller for Aircraft. The
aggregate Predelivery Payment amount is twenty-five percent (25 %) of the
Predelivery Payment Reference Price calculated as set forth in Clause 5.2.2.

 

5.2.2                        The Predelivery Payment Reference Price for an
Aircraft to be delivered in calendar year T is “A” in the formula below:

 

A =         Pb (1 + 0.04N)

 

where

 

A =         the Predelivery Payment Reference Price for an Aircraft to be
delivered in calendar year T.

 

Pb =        the Base Price of the Aircraft as defined in Clause 3 above.

 

N  =         (T –2007).

 

T  =         the year of delivery of the relevant Aircraft.

 

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5.2.3                        Predelivery Payments shall be paid according to the
following schedule:

 

Payment Date

 

Percentage of Predelivery
Payment Reference Price

 

1st Payment

 

On signature of this Agreement

 

5% (less Commitment Fee)

 

 

 

 

 

 

 

 

 

No later than the first Business Day of each of the following months:

 

 

 

 

 

 

 

 

 

2ndPayment

 

-The thirty-sixth (36th) month before the Scheduled Delivery Month of each
Aircraft as set forth in this Agreement

 

5%

 

 

 

 

 

 

 

3rd Payment

 

-The twenty-fourth (24th)month before the Scheduled Delivery Month of each
Aircraft as set forth in this Agreement

 

5%

 

 

 

 

 

 

 

4th Payment

 

-The eighteenth (18th) month before the Scheduled Delivery Month of each
Aircraft as set forth in this Agreement

 

5%

 

 

 

 

 

 

 

5th Payment

 

-The twelfth (12th) month before the Scheduled Delivery Month of each Aircraft
as set forth in this Agreement

 

5%

 

 

 

 

 

 

 

TOTAL PAYMENT PRIOR TO DELIVERY

 

25%

 

 

All Predelivery Payments that are past due pursuant to this clause 5.2.3 on
signature of this Agreement shall be paid at signature of this Agreement.

 

5.2.4                        The Seller shall be entitled to hold and use any
Predelivery Payment as absolute owner thereof, subject only to the obligation
(subject to the provisions of Clause 5.6) to deduct an amount equal to
Predelivery Payments from the Final Contract Price, when calculating the Balance
of the Final Contract Price. The Seller shall be under no obligation to
segregate any Predelivery Payment, or any amount equal thereto, from the
Seller’s funds generally.

 

5.3                           COMMITMENT FEE

 

The Seller acknowledges that it has received from the Buyer the sum of
[...***...]. The Commitment Fee paid with respect to an Aircraft shall be
credited without interest against the first Predelivery Payment for such
Aircraft.

 

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5.4                           PAYMENT OF BALANCE OF THE FINAL CONTRACT PRICE

 

Concurrent with the Delivery of each Aircraft, the Buyer shall pay to the Seller
the Balance of the Final Contract Price for such Aircraft. The Seller’s receipt
of the full amount of all Predelivery Payments and of the Balance of the Final
Contract Price, including any amounts due under Clause 5.8, are a condition
precedent to the Seller’s obligation to deliver such Aircraft to the Buyer.

 

5.5                           TAXES

 

5.5.1                        The amounts stated in this Agreement to be payable
by the Buyer are exclusive of value added tax (“VAT”) chargeable under the laws
of any jurisdiction and accordingly the Buyer shall pay any VAT chargeable with
respect to any Aircraft, component, accessory, equipment or part delivered or
furnished under this Agreement.

 

5.5.2                        Except as provided in Clause 5.5.1, the Seller
shall pay all Taxes, levied, assessed, charged or collected, on or prior to
Delivery of any Aircraft, for or in connection with the manufacture, assembly,
sale and delivery to the Buyer under this Agreement of such Aircraft or any
parts, instructions or data installed thereon or incorporated therein (except
Buyer Furnished Equipment referred to in Clause 18).

 

5.5.3                        The Buyer shall pay all Taxes not assumed by the
Seller under Clause 5.5.2, including, but not limited to any duties or taxes due
upon or in relation to the importation of the Aircraft into the Buyer’s country
and/or any withholding taxes or deductions levied or required in the Buyer’s
country with respect to the payment to the Seller of any amount due from the
Buyer hereunder.

 

“Taxes” means any present or future tax, stamp or other taxes, levies, imposts,
duties, charges, fees, deductions or withholdings, now or hereafter imposed,
levied, collected, withheld or assessed by any governmental authority or any
political subdivision or taxing authority thereof or therein.

 

5.6                           APPLICATION OF PAYMENTS

 

Notwithstanding any other rights the Seller may have at contract or at law, the
Buyer and the Seller hereby agree that should any amount (whether under this
Agreement or under any other agreement between the Buyer and the Seller and
whether at the stated maturity of such amount, by acceleration or otherwise)
become due and payable by the Buyer or its Affiliates, and not be paid in full
in immediately available funds on the date due, then the Seller shall have the
right to debit and apply, in whole or in part, the Predelivery Payments paid to
the Seller by the Buyer against such unpaid amount. The Seller shall promptly
notify the

 

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Buyer in writing after such debiting and application, and the Buyer shall
immediately pay to the Seller the amount required to comply with Clause 5.2.3.

 

5.7                           SETOFF PAYMENTS

 

Notwithstanding anything to the contrary contained herein, before being required
to make any payments to the Buyer, the Seller will have the right to deduct from
any such payments an amount equal to any other amounts the Buyer or any of its
Affiliates owes to the Seller or any Affiliate thereof under any agreement
between them.

 

5.8                           OVERDUE PAYMENTS

 

5.8.1                        If any payment due the Seller is not received by
the Seller on the date or dates due, the Seller will have the right to claim
from the Buyer, and the Buyer will promptly pay to the Seller on receipt of such
claim, interest at the rate of one and one-half percent (1.5%) per month on the
amount of such overdue payment, to be calculated from and including the due date
of such payment to (but excluding) the date such payment is received by the
Seller. The Seller’s right to receive such interest will be in addition to any
other rights of the Seller hereunder or at law.

 

5.8.2                        If any Predelivery Payment is not received within
ten (10) calendar days of the date on which it is due in accordance with the
schedule set forth in Clause 5.2.3, the Seller shall be under no obligation to
deliver any Aircraft remaining to be delivered under this Agreement within such
Aircraft’s Scheduled Delivery Month. Upon receipt of full payment of all
Predelivery Payments that are ten (10) or more days late, together with interest
on such Predelivery Payments in accordance with Clause 5.8.1, the Seller shall
provide the Buyer with new Scheduled Delivery Months for the affected Aircraft,
subject to the Seller’s commercial and industrial constraints.

 

5.9                           PROPRIETARY INTEREST

 

Notwithstanding any provision of law to the contrary, the Buyer shall not, by
virtue of anything contained in this Agreement (including, without limitation,
any Commitment Fee or Predelivery Payments hereunder, or any designation or
identification by the Seller of a particular Aircraft as an Aircraft to which
any of the provisions of this Agreement refers) acquire any proprietary,
insurable or other interest whatsoever in any Aircraft before Delivery of and
payment for such Aircraft, as provided in this Agreement.

 

5.10                         PAYMENT IN FULL

 

The Buyer’s obligation to make payments to the Seller hereunder shall not be
affected by and shall be determined without regard to any setoff, counterclaim,
recoupment, defense or other right that the Buyer may have against the Seller or

 

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any other person and all such payments shall be made without deduction or
withholding of any kind. The Buyer shall ensure that the sums received by the
Seller under this Agreement shall be equal to the full amounts expressed to be
due to the Seller hereunder, without deduction or withholding on account of and
free from any and all taxes, levies, imposts, duties or charges of whatever
nature, except that if the Buyer is compelled by law to make any such deduction
or withholding the Buyer shall pay such additional amounts to the Seller as
may be necessary so that the net amount received by the Seller after such
deduction or withholding shall equal the amounts that would have been received
in the absence of such deduction or withholding.

 

6 -                            MANUFACTURE PROCEDURE - INSPECTION

 

6.1                           MANUFACTURE PROCEDURES

 

The Airframe shall be manufactured in accordance with the requirements of the
laws of the jurisdiction of incorporation of the Seller and of its relevant
Affiliates and subcontractors as enforced by the Aviation Authority of such
jurisdiction.

 

6.2                           INSPECTION

 

6.2.1                        All work to be carried out on the Aircraft and all
materials and parts thereof shall be open to inspection during business hours by
duly authorized representatives of the Buyer or its designee at the respective
works of the relevant manufacture facility of the Seller or the Affiliates of
the Seller and, if possible, at the works of their respective subcontractors;
provided that Seller shall use commercially reasonable efforts to secure Buyer’s
access to Seller’s and its Affiliates’ respective subcontractors. These
representatives shall have access to such relevant technical data as are
reasonably necessary for this purpose (except that, if access to any part of the
respective works where construction is in progress or materials or parts are
stored is restricted for security reasons, the Seller or its Affiliates or its
subcontractors shall be allowed a reasonable time to make the items available
for inspection elsewhere). The actual detailed inspection of the Aircraft,
materials and parts thereof shall take place only in the presence of the
relevant inspection department personnel or other authorized personnel of
Seller, its Affiliates, or their subcontractors. The procedures for such
inspections shall be agreed on by the parties acting reasonably before any
inspection.

 

6.2.2                        All inspections, examinations and discussions with
the Seller’s, its Affiliate’s or their respective subcontractors’ engineering or
other personnel by the Buyer and its representatives shall be performed in such
a manner as not to delay or hinder either the work to be carried out on the
Aircraft or the proper performance of this Agreement.

 

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6.3                           REPRESENTATIVES OF THE BUYER

 

For the purposes of Clause 6.2, starting at a mutually agreed date until
Delivery of the last Aircraft, the Seller shall furnish free-of-charge suitable
space and office equipment in or conveniently located with respect to the
Delivery Location for the use of not more than four (4) representatives of the
Buyer during the aforementioned period. The Seller shall provide access to
electronic mail, facsimile and a telephone free of charge.

 

7 -                            CERTIFICATION

 

Except as set forth in this Clause 7, the Seller shall not be required to obtain
any certificate or approval with respect to the Aircraft.

 

7.1                           TYPE CERTIFICATION

 

The A330-200 Aircraft have been, the A350XWB-800 Aircraft shall have been, prior
to Delivery, type certificated under EASA procedures for joint certification in
the transport category. The Seller shall obtain or cause to be obtained an FAA
type certificate (the “Type Certificate”) for the A330-200 Aircraft and the
A350XWB-800 Aircraft prior to Delivery to allow the issuance of the Export
Certificate of Airworthiness.

 

7.2                           EXPORT CERTIFICATE OF AIRWORTHINESS

 

Subject to the provisions of Clause 7.3, the Aircraft shall be delivered to the
Buyer with an Export Certificate of Airworthiness issued by the DGAC and in a
condition enabling the Buyer (or an eligible person under then applicable law)
to obtain at the time of Delivery a Standard Airworthiness Certificate and a
Certificate of Sanitary Construction. However, the Seller shall have no
obligation to make and shall not be responsible for any costs of alterations or
modifications to such Aircraft to enable such Aircraft to meet FAA or U.S.
Department of Transportation requirements for specific operation on the Buyer’s
routes, except as may be provided for in this Agreement, whether before, at or
after Delivery of any Aircraft.

[...***...]

 

7.3                           SPECIFICATION CHANGES BEFORE DELIVERY

 

7.3.1                        If, any time before the date on which the Aircraft
is Ready for Delivery, any law, rule or regulation is enacted, promulgated,
becomes effective and/or an interpretation of any law, rule or regulation is
issued by the EASA or the FAA that requires any change to the Specification for
the purposes of obtaining the Export Certificate of Airworthiness  (a “Change in
Law”), the Seller shall make the required modification and the parties hereto
shall sign an SCN.

 

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7.3.2                        The Seller shall as far as practicable, but at its
sole discretion and without prejudice to Clause 7.3.3 (ii), take into account
the information available to it concerning any proposed law, rule or regulation
or interpretation that could become a Change in Law, in order to minimize the
costs of changes to the Specification as a result of such proposed law,
regulation or interpretation becoming effective before the applicable Aircraft
is Ready for Delivery.

 

7.3.3                        The cost of implementing the required modifications
referred to in Clause 7.3.1 will be:

 

 (i)                   for the account of the Seller if a Change in Law became
effective before the date of this Agreement, and

 

(ii)                   shared equally by the Seller and the Buyer if Change in
Law becomes effective after the date of this Agreement but before the Aircraft
is Ready for Delivery.

 

7.3.4                        Notwithstanding the provisions of Clause 7.3.3, if
a Change in Law relates to an item of BFE or to the Propulsion Systems
(including engine accessories, quick engine change units or thrust reversers)
the costs related thereto shall be borne in accordance with such arrangements as
may be made separately between the Buyer and the manufacturer of the BFE or the
Propulsion Systems, as applicable, and the Seller shall have no obligation with
respect thereto.

 

7.4                           SPECIFICATION CHANGES AFTER AIRCRAFT READY FOR
DELIVERY

 

Nothing in Clause 7.3 shall require the Seller to make any changes or
modifications to, or to make any payments or take any other action with respect
to, any Aircraft that is Ready for Delivery before the compliance date of any
law or regulation referred to in Clause 7.3.

 

8 -                            TECHNICAL ACCEPTANCE

 

8.1                           TECHNICAL ACCEPTANCE PROCESS

 

8.1.1                        Prior to Delivery, the Aircraft shall undergo a
technical acceptance process developed by the Seller (the “Technical Acceptance
Process”). Successful completion of the Technical Acceptance Process shall
demonstrate the satisfactory functioning of the Aircraft and shall be deemed to
demonstrate compliance with the Specification. Should the Aircraft fail to
complete the Technical Acceptance Process satisfactorily, the Seller shall
without hindrance from the Buyer be entitled to carry out any necessary changes
and, as soon as practicable thereafter, resubmit the Aircraft to the Technical
Acceptance Process to the extent necessary to demonstrate full compliance with
the requirements of the Technical Acceptance Process.

 

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8.1.2                        The Technical Acceptance Process shall

 

(i)                            Commence on a date no sooner than 10 days
following the date of the notice provided by the Seller to the Buyer in
accordance with Clause 9.1.2,

 

(ii)                           take place at the Delivery Location,

 

(iii)                          be carried out by the personnel of the Seller,
and

 

(iv)                          include a technical acceptance flight (the
“Technical Acceptance Flight”) that shall not exceed three (3) hours.

 

8.2                           BUYER’S ATTENDANCE

 

8.2.1                        The Buyer is entitled to attend and observe the
Technical Acceptance Process.

 

8.2.2                        If the Buyer attends the Technical Acceptance
Process, the Buyer

 

(i)                            shall comply with the reasonable requirements of
the Seller, with the intention of completing the Technical Acceptance Process
within seven (7) Business Days, and

 

(ii)                           may have a maximum of four (4) of its
representatives (no more than three (3) of whom shall have access to the cockpit
at any one time) accompany the Seller’s representatives on the Technical
Acceptance Flight, during which the Buyer’s representatives shall comply with
the instructions of the Seller’s representatives.

 

8.2.3                        If the Buyer does not attend or fails to cooperate
in the Technical Acceptance Process, the Seller shall be entitled to complete
the Technical Acceptance Process in compliance with Clause 8.1 without the
Buyer’s attendance, and the Buyer will be deemed to have accepted that the
Technical Acceptance Process has been completed, in all respects.

 

8.3                           CERTIFICATE OF ACCEPTANCE

 

Upon successful completion of the Technical Acceptance Process, the Buyer shall,
on or before the Delivery Date, sign and deliver to the Seller a certificate of
acceptance in respect of the Aircraft in the form of Exhibit D (the “Certificate
of Acceptance”).

 

8.4                           FINALITY OF ACCEPTANCE

 

The Buyer’s signature of the Certificate of Acceptance for the Aircraft shall
constitute waiver by the Buyer of any right it may have under the
Uniform Commercial Code as adopted by the State of New York or otherwise to
revoke acceptance of the Aircraft for any reason, whether known or unknown to
the Buyer at the time of acceptance.

 

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8.5                           AIRCRAFT UTILIZATION

 

The Seller shall, without payment or other liability, be entitled to use the
Aircraft before Delivery to obtain the certificates required under Clause 7.
Such use will not limit the Buyer’s obligation to accept Delivery hereunder.

 

The Seller will be authorized to use the Aircraft for up to a maximum of twenty
(20) hours for any other purpose without specific agreement of the Buyer.

 

9 -                            DELIVERY

 

9.1                           DELIVERY SCHEDULE

 

9.1.1                        Subject to Clauses 2, 7, 8, 10 and 18, the Seller
shall have the A330-200 Aircraft Ready for Delivery at the Delivery Location
within the following quarters (each an “A330-200 Scheduled Delivery Quarter”):

 

Aircraft N°1

 

2nd Quarter 2012

 

Aircraft N°2

 

3rd Quarter 2012

 

Aircraft N°3

 

1st Quarter 2013

 

Aircraft N°4

 

2nd Quarter 2013

 

Aircraft N°5

 

2nd Quarter 2013

 

Aircraft N°6

 

1st Quarter 2014

 

 

Subject to Clauses 2, 7, 8, 10 and 18, the Seller shall have the A350XWB-800
Aircraft Ready for Delivery at the Delivery Location within the following
quarters (each an “A350XWB-800 Scheduled Delivery Quarter”):

 

Aircraft N°1

 

2nd Quarter 2017

 

Aircraft N°2

 

3rd Quarter 2017

 

Aircraft N°3

 

2nd Quarter 2018

 

Aircraft N°4

 

3rd Quarter 2018

 

Aircraft N°5

 

2nd Quarter 2019

 

Aircraft N°6

 

3rd Quarter 2020

 

 

9.1.2                        The Seller shall communicate to the Buyer the
scheduled delivery month of each Aircraft (each a “Scheduled Delivery Month”)
thirty (30) months before the first day of the Scheduled Delivery Quarter of the
respective Aircraft. Subject to the then industrial and commercial constraints
of the Seller, the Seller shall communicate to the Buyer the Scheduled Delivery
Month of the respective Aircraft as close as possible to the Buyer’s request
within the Scheduled Delivery Quarter. The Seller shall give the Buyer at least
thirty (30) days’ written notice of the anticipated date on which the Aircraft
shall be Ready for Delivery. Such notice shall also include the starting date
and the planned

 

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schedule of the Technical Acceptance Process set forth in Clause 8. Thereafter
the Seller shall notify the Buyer of any change to such dates.

 

9.2                           DELIVERY PROCESS

 

9.2.1                        The Buyer shall send its representatives to the
Delivery Location to take Delivery within seven (7) days after the date on which
the Aircraft is Ready for Delivery.

 

9.2.2                        The Seller shall transfer title to the Aircraft to
the Buyer free and clear of all encumbrances (except for any liens or
encumbrances created by or on behalf of the Buyer) provided that the Balance of
the Final Contract Price has been paid by the Buyer pursuant to Clause 5.4 and
that the Certificate of Acceptance has been signed and delivered to the Seller
pursuant to Clause 8.3. The Seller shall provide the Buyer with a bill of sale
in the form of Exhibit E (the “Bill of Sale”) and/or such other documentation
confirming transfer of title and receipt of the Final Contract Price as
may reasonably be requested by the Buyer. Title to  and risk of loss of or
damage to the Aircraft shall pass to the Buyer contemporaneously with the
delivery by the Seller to the Buyer of such Bill of Sale.

 

9.2.3                        If the Buyer fails to (i) deliver the signed
Certificate of Acceptance to the Seller on or before the Delivery Date, or
(ii) pay the Balance of the Final Contract Price for the Aircraft to the Seller
on the Delivery Date, then the Buyer shall be deemed to have rejected Delivery
wrongfully when the Aircraft was duly tendered to the Buyer hereunder. If such a
deemed rejection arises, the Seller shall retain title to the Aircraft and the
Buyer shall indemnify and hold the Seller harmless against any and all costs
(including but not limited to any parking, storage, and insurance costs) and
consequences resulting from the Buyer’s rejection, it being understood that the
Seller will be under no duty to the Buyer to store, park, or otherwise protect
the Aircraft. These rights of the Seller shall be in addition to the Seller’s
other rights and remedies in this Agreement.

 

9.3                           FLYAWAY

 

9.3.1                        The Buyer and the Seller shall cooperate to obtain
any licenses that may be required by the relevant Aviation Authority for the
purpose of exporting or importing the Aircraft.

 

9.3.2                        All expenses of, or connected with, flying the
Aircraft from the Delivery Location after Delivery shall be borne by the Buyer.
The Buyer shall make direct arrangements with the supplying companies for the
fuel and oil required for all post-Delivery flights.

 

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10 -

 

EXCUSABLE DELAY AND TOTAL LOSS

 

 

 

10.1

 

SCOPE OF EXCUSABLE DELAY

 

 

 

 

 

Neither the Seller nor any Affiliate of the Seller, will be responsible for or
be deemed to be in default on account of delays in delivery or failure to
deliver or otherwise in the performance of this Agreement or any part hereof due
to causes reasonably beyond the Seller’s, or any Affiliate’s control or not
occasioned by the Seller’s, fault or negligence (“Excusable Delay”), including,
but not limited to: (i) acts of God or the public enemy, natural disasters,
fires, floods, storms beyond ordinary strength, explosions or earthquakes;
epidemics or quarantine restrictions; serious accidents; total or constructive
total loss; any law, decision, regulation, directive or other act (whether or
not having the force of law) of any government or of the Council of the European
Community or the Commission of the European Community or of any national,
Federal, State, municipal or other governmental department, commission, board,
bureau, agency, court or instrumentality, domestic or foreign; governmental
priorities, regulations or orders affecting allocation of materials, facilities
or a completed Aircraft; war, civil war or warlike operations, terrorism,
insurrection or riots; failure of transportation; strikes or labor troubles
causing cessation, slow down or interruption of work; delay in obtaining any
airworthiness or type certification; inability after due and timely diligence to
procure materials, accessories, equipment or parts; general hindrance in
transportation; or failure of a subcontractor or Supplier to furnish materials,
components, accessories, equipment or parts; (ii) any delay caused directly or
indirectly by the action or inaction of the Buyer; and (iii) delay in delivery
or otherwise in the performance of this Agreement by the Seller due in whole or
in part to any delay in or failure of the delivery of, or any other event or
circumstance relating to, the Propulsion Systems or Buyer Furnished Equipment.

 

 

 

10.2

 

CONSEQUENCES OF EXCUSABLE DELAY

 

 

 

10.2.1

 

If an Excusable Delay occurs the Seller will

 

 

 

(i)

 

notify the Buyer of such Excusable Delay as soon as practicable after becoming
aware of the same;

 

 

 

(ii)

 

not be deemed to be in default in the performance of its obligations hereunder
as a result of such Excusable Delay;

 

 

 

(iii)

 

not be responsible for any damages arising from or in connection with such
Excusable Delay suffered or incurred by the Buyer;

 

 

 

(iv)

 

as soon as practicable after the removal of the cause of such Excusable Delay
resume performance of its obligations under this Agreement and in particular
will notify the Buyer of the revised Scheduled Delivery Month.

 

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10.3

 

Termination on Excusable Delay

 

 

 

10.3.1

 

If any Delivery is delayed as a result of an Excusable Delay for a period of
more than twelve (12) months after the last day of the Scheduled Delivery Month,
then either party may terminate this Agreement with respect to the affected
Aircraft, by giving written notice to the other party within thirty (30) days
after the expiration of such twelve (12) month period. However, the Buyer will
not be entitled to terminate this Agreement pursuant to this Clause 10.3.1 if
the Excusable Delay is caused directly or indirectly by the action or inaction
of the Buyer.

 

 

 

10.3.2

 

If the Seller advises the Buyer in its notice of a revised Scheduled Delivery
Month pursuant to Clause 10.2.1(iv) that there will be a delay in Delivery of an
Aircraft of more than twelve (12) months after the last day of the Scheduled
Delivery Month, then either party may terminate this Agreement with respect to
the affected Aircraft. Termination will be made by giving written notice to the
other party within thirty (30) days after the Buyer’s receipt of the notice of a
revised Scheduled Delivery Month. However, the Buyer will not be entitled to
terminate this Agreement pursuant to this Clause 10.3.2 if the Excusable Delay
is caused directly or indirectly by the action or inaction of the Buyer.

 

 

 

10.3.3

 

If this Agreement is not terminated under the terms of Clause 10.3.1 or 10.3.2,
then the Seller will be entitled to reschedule Delivery. The Seller will notify
the Buyer of the new Scheduled Delivery Month after the thirty (30) day period
referred to in Clause 10.3.1 or 10.3.2, and this new Scheduled Delivery Month
will be deemed to be an amendment to the applicable Scheduled Delivery Month in
Clause 9.1.1.

 

 

 

10.4

 

TOTAL LOSS, DESTRUCTION OR DAMAGE

 

 

 

 

 

If, prior to Delivery, any Aircraft is lost, destroyed or in the reasonable
opinion of the Seller is damaged beyond economic repair (“Total Loss”), the
Seller will notify the Buyer to this effect within thirty (30) days of such
occurrence. The Seller will include in said notification (or as soon after the
issue of the notice as such information becomes available to the Seller) the
earliest date consistent with the Seller’s other commitments and production
capabilities that an aircraft to replace the Aircraft may be delivered to the
Buyer and the Scheduled Delivery Month will be extended as specified in the
Seller’s notice to accommodate the delivery of the replacement aircraft;
provided, however, that if the Scheduled Delivery Month is extended to a month
that is later than twelve (12) months after the last day of the original
Scheduled Delivery Month then this Agreement will terminate with respect to said
Aircraft unless:

 

 

 

(i)

 

the Buyer notifies the Seller within thirty (30) days of the date of receipt of
the Seller’s notice that it desires the Seller to provide a replacement aircraft
during the month quoted in the Seller’s notice; and

 

 

 

(ii)

 

the parties execute an amendment to this Agreement recording the change in the
Scheduled Delivery Month.

 

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Nothing herein will require the Seller to manufacture and deliver a replacement
aircraft if such manufacture would require the reactivation of its production
line for the model or series of aircraft that includes the Aircraft. Any
termination pursuant to this Clause 10.4 as to a particular Aircraft will
discharge the obligations and liabilities of the parties hereunder with respect
to such Aircraft.

 

 

 

10.5

 

REMEDIES

 

 

 

 

 

THIS CLAUSE 10 SETS FORTH THE SOLE AND EXCLUSIVE REMEDY OF THE BUYER FOR DELAYS
IN DELIVERY OR FAILURE TO DELIVER, OTHER THAN SUCH DELAYS AS ARE COVERED BY
CLAUSE 11, AND THE BUYER HEREBY WAIVES ALL RIGHTS TO WHICH IT WOULD OTHERWISE BE
ENTITLED IN RESPECT THEREOF, INCLUDING, WITHOUT LIMITATION, ANY RIGHTS TO
INCIDENTAL AND CONSEQUENTIAL DAMAGES OR SPECIFIC PERFORMANCE. THE BUYER WILL NOT
BE ENTITLED TO CLAIM THE REMEDIES AND RECEIVE THE BENEFITS PROVIDED IN THIS
CLAUSE 10 WHERE THE DELAY REFERRED TO IN THIS CLAUSE 10 IS CAUSED BY THE
NEGLIGENCE OR FAULT OF THE BUYER OR ITS REPRESENTATIVES.

 

 

 

11 -

 

INEXCUSABLE DELAY

 

 

 

11.1

 

LIQUIDATED DAMAGES

 

 

 

 

 

Should an Aircraft not be Ready for Delivery after the last day of the Scheduled
Delivery Month (as such month may be changed pursuant to Clauses 2, 7 or 10) and
such delay is not as a result of an Excusable Delay or Total Loss, then such
delay will be termed an “Inexcusable Delay.” In the event of an Inexcusable
Delay, the Buyer will have the right to claim, and the Seller will pay the Buyer
liquidated damages of [...***...] for each day of delay in the Delivery
[...***...]

 

 

 

 

 

In no event will the amount of liquidated damages exceed the total of
[...***...].

 

 

 

 

 

The Buyer’s right to liquidated damages in respect of an Aircraft is conditioned
on the Buyer’s submitting a written claim for liquidated damages to the Seller
not later than thirty (30) days after the last day of the Scheduled Delivery
Month.

 

 

 

11.2

 

RENEGOTIATION

 

 

 

 

 

If, as a result of an Inexcusable Delay, Delivery does not occur within six
(6) months after the last day of the Scheduled Delivery Month the Buyer will
have the right, exercisable by written notice to the Seller given between
fifteen (15) days and thirty (30) days after lapse of such six (6) month period,
to require from the Seller a renegotiation of the Scheduled Delivery Month for
the affected

 

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Aircraft. Unless otherwise agreed between the Seller and the Buyer during such
renegotiation, the said renegotiation will not prejudice Buyer’s right to
receive liquidated damages in accordance with Clause 11.1.

 

 

 

11.3

 

TERMINATION

 

 

 

 

 

If, as a result of an Inexcusable Delay, Delivery does not occur within twelve
(12) months after the last day of the Scheduled Delivery Month and the parties
have not renegotiated the Delivery Date pursuant to Clause 11.2, then both
parties will have the right exercisable by written notice to the other party,
given between one (1) and sixty (60) days after the lapse of such twelve (12)
month period, to terminate this Agreement in respect of the affected Aircraft.
In the event of termination, neither party will have any claim against the
other, except that the Seller will pay to the Buyer any amounts due pursuant to
Clause 11.1 and will pay the Buyer an amount equal to the Predelivery Payments
received from the Buyer hereunder in respect of the Aircraft as to which this
Agreement has been terminated.

 

 

 

11.4

 

REMEDIES

 

 

 

 

 

THIS CLAUSE 11 SETS FORTH THE SOLE AND EXCLUSIVE REMEDY OF THE BUYER FOR DELAYS
IN DELIVERY OR FAILURE TO DELIVER, OTHER THAN SUCH DELAYS AS ARE COVERED BY
CLAUSE 10, AND THE BUYER HEREBY WAIVES ALL RIGHTS TO WHICH IT WOULD OTHERWISE BE
ENTITLED IN RESPECT THEREOF, INCLUDING WITHOUT LIMITATION ANY RIGHTS TO
INCIDENTAL AND CONSEQUENTIAL DAMAGES OR SPECIFIC PERFORMANCE. THE BUYER WILL NOT
BE ENTITLED TO CLAIM THE REMEDIES AND RECEIVE THE BENEFITS PROVIDED IN THIS
CLAUSE 11 WHERE THE DELAY REFERRED TO IN THIS CLAUSE 11 IS CAUSED BY THE
NEGLIGENCE OR FAULT OF THE BUYER OR ITS REPRESENTATIVES.

 

 

 

12.

 

WARRANTIES AND SERVICE LIFE POLICY

 

 

 

12.1

 

WARRANTY

 

 

 

12.1.1

 

Nature of Warranty

 

 

 

 

 

Subject to the limitations and conditions hereinafter provided, and except as
provided in Clause 12.1.2, the Seller warrants to the Buyer that Aircraft and
each Warranted Part will at the time of Delivery to the Buyer be free from
defects:

 

 

 

(i)

 

in material,

 

 

 

(ii)

 

in workmanship, including, without limitation, processes of manufacture,

 

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(iii)

 

in design (including, without limitation, selection of materials) having regard
to the state of the art at the date of such design, and

 

 

 

(iv)

 

arising from failure to conform to the Specification, except as to those
portions of the Specification that are expressly stated in the Specification to
be estimates or approximations or design aims.

 

 

 

 

 

For the purposes of this Agreement, the term “Warranted Part” will mean any
Seller proprietary component, equipment, software, or part, that (a) is
installed on an Aircraft at Delivery, (b) is manufactured to the detail design
of the Seller or a subcontractor of the Seller and (c) bears a manufacturers
part number at the time of Delivery.

 

 

 

12.1.2

 

Exclusions

 

 

 

 

 

The warranties set forth in Clause 12.1.1 will not apply to Buyer Furnished
Equipment, Propulsion Systems, or to any component, accessory, equipment or part
purchased by the Buyer that is not a Warranted Part, provided, however, that:

 

 

 

(i)

 

any defect in the Seller’s workmanship in respect of the installation of such
items in the Aircraft, including any failure by the Seller to conform to the
installation instructions of the manufacturers of such items that invalidates
any applicable warranty from such manufacturers, will constitute a defect in
workmanship for the purpose of this Clause 12.1 and be covered by the warranty
set forth in Clause 12.1.1(ii), and

 

 

 

(ii)

 

any defect inherent in the Seller’s design of the installation, considering the
state of the art at the date of such design, that impairs the use of such items
will constitute a defect in design for the purposes of this Clause 12.1 and be
covered by the warranty set forth in Clause 12.1.1(iii).

 

 

 

12.1.3

 

Warranty Periods

 

 

 

 

 

The warranties described in Clauses 12.1.1 and 12.1.2 hereinabove will be
limited to those defects that become apparent within [***] (each the “Warranty
Period”).

 

 

 

12.1.4

 

Limitations of Warranty

 

 

 

12.1.4.1

 

The Buyer’s remedy and the Seller’s obligation and liability under Clauses
12.1.1 and 12.1.2 are limited to, at the Seller’s expense and option, the
repair, replacement or correction (to include, in the case of software, supply
of a comparable product with equivalent function) of any defective Warranted
Part. The Seller may elect to effect such repair, replacement or correction by
supplying modification kits designed to rectify the defect or by furnishing a
credit to the Buyer for the future purchase of goods and services (not including
Aircraft) equal

 

 

 

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to the price at which the Buyer is then entitled to acquire a replacement for
the defective Warranted Part.

 

 

 

12.1.4.2

 

If the Seller corrects a defect covered by Clause 12.1.1(iii) that becomes
apparent within the Warranty Period, on the Buyer’s written request the Seller
will correct any such defect of the same type in any Aircraft that has not
already been delivered to the Buyer. The Seller will not be responsible for, nor
deemed to be in default on account of any delay in Delivery of any Aircraft or
otherwise, in respect of performance of this Agreement, due to the Seller’s
undertaking to make such correction. Alternatively, the Buyer and the Seller may
agree to deliver such Aircraft with subsequent correction of the defect by the
Buyer at the Seller’s expense, or the Buyer may elect to accept Delivery and
thereafter file a Warranty Claim as though the defect had become apparent
immediately after Delivery of such Aircraft.

 

 

 

12.1.5

 

Cost of Inspection

 

 

 

12.1.5.1

 

In addition to the remedies set forth in Clauses 12.1.4.1 and 12.1.4.2, the
Seller will reimburse the direct labor costs incurred by the Buyer in performing
inspections of the Aircraft that are conducted:

 

 

 

(i)

 

to determine whether a defect exists in any Warranted Part within the Warranty
Period or

 

 

 

(ii)

 

pending the Seller’s provision of a corrective technical solution.

 

 

 

12.1.5.2

 

The Seller’s liability under Clause 12.1.5.1 is subject to the following
conditions:

 

 

 

(i)

 

Such inspections are not otherwise recommended in a Seller Service Bulletin to
be performed within the Warranty Period;

 

 

 

(ii)

 

Such inspections are not performed in lieu of corrective action that has been
provided by the Seller prior to the dates of such inspection;

 

 

 

(iii)

 

the labor rate for the reimbursements will be the In-house Warranty Labor Rate,
and

 

 

 

(iv)

 

the hours used to determine such reimbursement will not exceed the Seller’s
estimate of the hours required for such inspections.

 

 

 

12.1.6

 

Warranty Claim Requirements

 

 

 

 

 

The Buyer’s remedy and the Seller’s obligation and liability under this Clause
12.1 with respect to each claimed defect are subject to the following
conditions:

 

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(i)

 

the defect has become apparent within the Warranty Period,

 

 

 

(ii)

 

the Buyer has submitted to the Seller evidence reasonably satisfactory to the
Seller that (i) the claimed defect is due to a matter covered under the
provisions of this Clause 12, and (ii) that such defect did not result from any
act or omission of the Buyer, including but not limited to, any failure to
operate and maintain the affected Aircraft or part thereof in accordance with
the standards set forth in Clause 12.1.11 or from any act or omission of any
third party;

 

 

 

(iii)

 

the Buyer returns the Warranted Part claimed to be defective to the repair
facilities designated by the Seller as soon as practicable, unless the Buyer
elects to repair a defective Warranted Part in accordance with the provisions of
Clause 12.1.8; and

 

 

 

(iv)

 

the Seller’s receives a Warranty Claim complying with the provisions of Clause
12.1.7(v).

 

 

 

12.1.7

 

Warranty Administration

 

 

 

 

 

The warranties set forth in this Clause 12.1 will be administered as hereinafter
provided:

 

 

 

(i)

 

Claim Determination

 

 

 

 

 

Determination by the Seller as to whether any claimed defect in any Warranted
Part is a valid Warranty Claim will be made by the Seller and will be based on
claim details, reports from the Seller’s regional representative, historical
data logs, inspections, tests, findings during repair, defect analysis and other
relevant documents and information.

 

 

 

(ii)

 

Transportation Costs

 

 

 

 

 

The cost of transporting a Warranted Part claimed to be defective to the
facilities designated by the Seller will be borne by the Buyer.

 

 

 

(iii)

 

On-Aircraft Work by the Seller

 

 

 

 

 

If either (a) the Seller determines that a defect subject to this Clause 12.1
requires the dispatch by the Seller of a Seller’s working team to the Buyer’s
facilities, to repair or correct such defect through implementation of one or
more Seller’s Service Bulletins, or (b) the Seller accepts the return of an
Aircraft to perform or have performed a repair or correction, then, the labor
costs for such on-Aircraft work will be borne by the Seller at the In-House
Warranty Labor Rate.

 

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On-Aircraft work by the Seller will be undertaken only if, in the Seller’s
opinion, the work requires the Seller’s technical expertise. In such case, the
Seller and the Buyer will agree on a schedule and place for the work to be
performed.

 

 

 

(iv)

 

Return of an aircraft

 

 

 

 

 

If the Buyer desires to return an Aircraft to the Seller for consideration of a
Warranty Claim, the Buyer will notify the Seller of its intention to do so, and
the Seller will, prior to such return, have the right to inspect such Aircraft,
and without prejudice to the Seller’s rights hereunder, to repair such Aircraft
either at the Buyer’s facilities or at another place acceptable to the Seller.
Delivery of any Aircraft by the Buyer to the Seller and return of such Aircraft
to the Buyer’s facilities will be at the Buyer’s expense.

 

 

 

(v)

 

Warranty Claim Substantiation

 

 

 

 

 

For each claim under this Clause 12.1 the Buyer will give written notice (a
“Warranty Claim”) to the Seller that contains at least the data listed below
with respect to an Aircraft or Warranted Part, as applicable.  The Buyer will
deliver the Warranty Claim within ninety (90) days of discovering each defect
giving rise to a claim by the Buyer under this Clause 12.

 

 

 

 

 

The minimum data to be supplied are as follows:

 

 

 

(a)

 

Description of the defect and any action taken,

 

 

 

(b)

 

Date of incident and/or removal,

 

 

 

(c)

 

Description of the Warranted Part claimed to be defective.

 

 

 

(d)

 

Part number,

 

 

 

(e)

 

Serial number (if applicable),

 

 

 

(f)

 

Position on Aircraft, according to Catalog Sequence Number of the Illustrated
Parts Catalog, Component Maintenance Manual or Structural Repair Manual as
applicable,

 

 

 

(g)

 

Total flying hours or calendar times, as applicable, at the date of appearance
of a defect,

 

 

 

(h)

 

Time since last shop visit at the date of appearance of defect,

 

 

 

(i)

 

Manufacturer’s serial number or “MSN” of the Aircraft and/or its registration
number,

 

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(j)

 

Aircraft total flying hours and/or number of landings at the date of appearance
of defect,

 

 

 

(k)

 

Claim number,

 

 

 

(l)

 

Date of claim and

 

 

 

(m)

 

Date of Delivery of an Aircraft to the Buyer.

 

 

 

 

 

Warranty Claims are to be addressed as follows:

 

 

 

 

 

AIRBUS

 

 

CUSTOMER SERVICES DIRECTORATE

 

 

WARRANTY ADMINISTRATION

 

 

ROND-POINT MAURICE BELLONTE

 

 

B.P. 33

 

 

F-31707 BLAGNAC CEDEX

 

 

FRANCE

 

 

 

(vi)

 

Replacements

 

 

 

 

 

Replaced components, equipment, accessories or parts will become the Seller’s
property.

 

 

 

 

 

Title to and risk of loss of any Aircraft, component, accessory, equipment or
part returned by the Buyer to the Seller will at all times remain with the
Buyer, except that (i) when the Seller has possession of a returned Aircraft,
component, accessory, equipment or part to which the Buyer has title, the Seller
will have such responsibility therefor as is chargeable by law to a bailee for
hire, but the Seller will not be liable for loss of use, and (ii) title to and
risk of loss of a returned component, accessory, equipment or part will pass to
the Seller on shipment by the Seller to the Buyer of any item furnished by the
Seller to the Buyer as a replacement therefor. Upon the Seller’s shipment to the
Buyer of any replacement component, accessory, equipment or part provided by the
Seller pursuant to this Clause 12.1, title to and risk of loss of such
replacement component, accessory, equipment or part will pass to the Buyer.

 

 

 

(vii)

 

Rejection

 

 

 

 

 

The Seller will provide reasonable written substantiation in case of rejection
of a Warranty Claim. The Buyer will pay to the Seller reasonable inspection and
test charges incurred by the Seller in connection with the investigation and
processing of a rejected Warranty Claim.

 

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(viii)

 

Inspection

 

 

 

 

 

The Seller will have the right to inspect the affected Aircraft and documents
and other records relating thereto in the event of any claim under this Clause
12.1.

 

 

 

12.1.8

 

In-house Warranty

 

 

 

(i)

 

Authorization

 

 

 

 

 

The Buyer is hereby authorized to repair Warranted Parts, subject to the terms
of this Clause 12.1.8 (“In-house Warranty Repair”). When the estimated cost of
an In-house Warranty Repair exceeds $ 15,000 (fifteen thousand US Dollars), the
Buyer will notify the Resident Customer Support Representative, of its decision
to perform any in-house repairs before such repairs are commenced. The Buyer’s
notice will include sufficient detail regarding the defect, estimated labor
hours and material to allow the Seller to ascertain the reasonableness of the
estimate. The Seller will use reasonable efforts to ensure a prompt response and
will not unreasonably withhold authorization.

 

 

 

(ii)

 

Conditions of Authorization

 

 

 

 

 

The Buyer will be entitled to the benefits under this Clause 12.1.8 for repair
of Warranted Parts:

 

 

 

a.

 

if the Buyer complies with the terms of Clause 12.1.8(i);

 

 

 

b.

 

if adequate facilities and qualified personnel are available to the Buyer.

 

 

 

c.

 

provided that repairs are to be performed in accordance with the Seller’s
written instructions set forth in applicable Technical Data; and

 

 

 

d.

 

only to the extent specified by the Seller, or, in the absence of the Seller’s
specifying, to the extent reasonably necessary to correct the defect, in
accordance with the standards set forth in Clause 12.1.11.

 

 

 

(iii)

 

Seller’s Rights

 

 

 

 

 

The Seller will have the right to require the return to Seller of any Warranted
Part, or any part removed therefrom, that is claimed to be defective, if, in the
Seller’s judgment, the nature of the claimed defect requires technical
investigation. Such delivery will be subject to the provisions of Clause
12.1.7(ii).

 

 

 

 

 

The Seller will have the right to have a representative present during the
disassembly, inspection and testing of any Warranted Part claimed to be
defective.

 

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(iv)                                                                             
In-house Warranty Claim Substantiation

 

Claims for In-house Warranty Repair credit must be submitted to the Seller no
later than six (6) months following completion of such In-House Warrranty Repair
and will comply with the requirements for Warranty Claims under Clause
12.1.6(v) and in addition will include:

 

(a)                                              a report of technical findings
with respect to the defect,

 

(b)                                             for parts required to remedy the
defect:

 

 

 

·

part numbers,

 

 

·

serial numbers (if applicable),

 

 

·

description of the parts,

 

 

·

quantity of parts,

 

 

·

unit price of parts,

 

 

·

copies of related Seller’s or third party’s invoices (if applicable),

 

 

·

total price of parts

 

(c)                                              detailed number of labor hours,

 

(d)                                             In-house Warranty Labor Rate,
and

 

(e)                                              total claim value.

 

(v)                                                                                
Credit

 

                                                                                               
The Buyer’s sole remedy, and the Seller’s sole obligation and liability, in
respect of In-house Warranty Repair claims, will be a credit to the Buyer’s
account.  Such credit will be equal to the sum of the direct labor cost expended
in performing such repair, plus the direct cost of materials incorporated in the
repair.  Such costs will be determined as set forth below.

 

(a)                                              To determine direct labor
costs, only the manhours spent on removal from the Aircraft disassembly,
inspection, repair, reassembly, and final inspection and test of the Warranted
Part, and reinstallation thereof on the Aircraft will be counted.  The hours
required for maintenance work  concurrently being carried out on the Aircraft or
Warranted Part will not be included.

 

(b)                                                                                
The hours counted as set forth in Clause 12.1.8 (v)(a) above will be multiplied
by the In-house Labor Rate, which is deemed to represent the Buyer’s composite
average hourly labor rate (excluding all fringe benefits, premium time
allowances, social security charges, business taxes and similar items) paid to
the Buyer’s employees or to a third party that the Buyer has authorized to
perform the repair, whose jobs, in both cases, are directly related to the
performance of the repair. This labor rate is [...***...] at economic conditions
prevailing in January 2007 (the “In-house Warranty Labor Rate”).

 

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The In-house Warranty Labor Rate is subject to adjustment annually by
multiplying it by the ratio ECIn/ECIb.  For the purposes of this Clause
12.1.8(v) only, ECIn is equal to the Labor Index defined in the Seller Price
Revision Formula.

 

(c)                                              Direct material costs are
determined by the prices at which the Buyer acquired such material, excluding
any parts and materials used for overhaul furnished free of charge by the
Seller.

 

(vi)                                                                             
Limitation on Credit

 

                                                                                               
The Buyer will in no event be credited for repair costs (labor or material) for
any Warranted Part if such repair costs exceed in the aggregate sixty-five
percent (65%) of the Seller’s then-current catalog price for a replacement of
such defective Warranted Part provided such replacement part is available for
purchase.

 

                                                                                               
The Seller will substantiate such Seller costs in writing on reasonable request
by the Buyer.

 

(vii)                                                                          
Scrapped Material

 

                                                                                               
The Buyer may, with the agreement of the Seller’s Resident Customer Support
Representative, scrap any defective Warranted Parts that are beyond economic
repair and not required for technical evaluation.

 

                                                                                               
If the Buyer does not obtain the agreement of the Seller’s Resident Customer
Support Representative to scrap a Warranted Part immediately, the Buyer will
retain such Warranted Part and any defective part removed from a Warranted
Part during repair for a period of either one hundred and twenty (120) days
after the date of completion of repair or sixty (60) days after submission of a
claim for In-house Warranty Repair credit relating thereto, whichever is
longer.  Such parts will be returned to the Seller  within thirty (30) days of
receipt of the Seller’s request therefor, made within such retention periods.

 

                                                                                               
A record of scrapped Warranted Parts, certified by an authorized representative
of the Buyer, will be kept in the Buyer’s file for at least the duration of the
Warranty Period.

 

(viii)                                                                       
DISCLAIMER OF SELLER LIABILITY FOR BUYER’S REPAIR

 

                                                                                               
THE SELLER WILL NOT BE LIABLE FOR, AND THE BUYER WILL INDEMNIFY THE SELLER
AGAINST, THE CLAIMS OF ANY THIRD PARTIES FOR LOSSES DUE TO ANY DEFECT,
NONCONFORMANCE OR PROBLEM OF ANY KIND, ARISING OUT OF OR IN CONNECTION WITH ANY
REPAIR OF WARRANTED PARTS UNDERTAKEN BY THE BUYER

 

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UNDER THIS CLAUSE 12.1.8 OR ANY OTHER ACTIONS UNDERTAKEN BY THE BUYER UNDER THIS
CLAUSE 12.1.8, WHETHER SUCH CLAIM IS ASSERTED IN CONTRACT OR IN TORT, OR IS
PREMISED ON ALLEGED, ACTUAL, IMPUTED, ORDINARY OR INTENTIONAL ACTS OR OMISSIONS
OF THE BUYER OR THE SELLER.

 

12.1.9                                                                  Warranty
Transferability

 

                                                                                               
Notwithstanding the provisions of Clause 20.1, the warranties provided for in
this Clause 12.1 for any Warranted Part will accrue to the benefit of any
airline in revenue service other than the Buyer, if the Warranted Part enters
into the possession of any such airline as a result of a pooling agreement
between such airline and the Buyer, in accordance with the terms and subject to
the limitations and exclusions of the foregoing warranties and to applicable
laws or regulations.

 

12.1.10                                                            Warranty for
Corrected, Replacement or Repaired Warranted Parts

 

Whenever any Warranted Part that contains a defect for which the Seller is
liable under this Clause 12.1 has been corrected, repaired or replaced pursuant
to the terms hereof, the period of the Seller’s warranty with respect to such
corrected, repaired or replacement Warranted Part, will be the remaining portion
of the original warranty in respect of such corrected, repaired or replaced
Warranted Part or twelve (12) months, whichever is longer.  If a defect is
attributable to a defective repair or replacement by the Buyer, a Warranty Claim
with respect to such defect will be rejected, notwithstanding any subsequent
correction or repair, and will immediately terminate the remaining warranties
under this Clause 12.1 in respect of the affected Warranted Part.

 

12.1.11                                                            Good Airline
Operation - Normal Wear and Tear

 

The Buyer’s rights under this Clause 12.1 are subject to the Aircraft and each
component, equipment, accessory and part thereof being maintained, overhauled,
repaired and operated in accordance with good commercial airline practice, all
technical documentation and any other instructions issued by the Seller, the
Suppliers or the manufacturer of the Propulsion Systems and all applicable
rules, regulations and directives of the relevant Aviation Authorities.

 

The Seller’s liability under this Clause 12.1 will not extend to normal wear and
tear or to

 

(i)                                                                                    
any Aircraft or component, equipment, accessory or part thereof that has been
repaired, altered or modified after Delivery in a manner other than that
approved by the Seller;

 

(ii)                                                                                 
any Aircraft or component, equipment, accessory or part thereof that has been
operated in a damaged state; or

 

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(iii)

 

any component, equipment, accessory or part from which the trademark, trade
name, part or serial number or other identification marks have been removed.

 

 

 

12.2

 

SERVICE LIFE POLICY

 

 

 

12.2.1

 

Scope and Definitions

 

 

 

 

 

In addition to the warranties set forth in Clause 12.1, the Seller agrees that
should a Failure occur in any Item (as these terms are defined below), then,
subject to the general conditions and limitations set forth in Clause 12.2.4,
the provisions of this Clause 12.2 will apply.

 

 

 

 

 

For the purposes of this Clause 12.2:

 

 

 

(i)

 

“Item” means any of the Seller components, equipment, accessories or parts
listed in Exhibit C that are installed on an Aircraft at any time during the
period of effectiveness of the Service Life Policy specified in Clause 12.2.2.

 

 

 

(ii)

 

“Failure” means any breakage of, or defect in, an Item that materially impairs
the utility or safety of the Item, provided that any such breakage of, or defect
in, such Item can reasonably be expected to occur on a fleetwide basis and did
not result from any breakage or defect in any other Aircraft part or component
or from any other extrinsic force.

 

 

 

 

 

The Seller’s obligations under this Clause 12.1.2 are referred to as the
“Service Life Policy.”

 

 

 

12.2.2

 

Periods and Seller’s Undertaking

 

 

 

 

 

Subject to the general conditions and limitations set forth in Clause 12.2.4,
the Seller agrees that if a Failure occurs in an Item [...***...] the Seller
will, at its discretion, as promptly as practicable and for a price that
reflects the Seller’s financial participation as hereinafter provided, either:

 

 

 

(i)

 

design and furnish to the Buyer a correction for such Item and provide any parts
required for such correction (including Seller designed standard parts but
excluding industry standard parts), or

 

 

 

(ii)

 

replace such Item.

 

 

 

12.2.3

 

Seller’s Participation in the Cost

 

 

 

 

 

Any part or Item or part that the Seller is required to furnish to the Buyer
under this Service Life Policy will be furnished to the Buyer at the Seller’s
current sales

 

 

 

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price therefor, less the Seller’s financial participation, which will be
determined in accordance with the following formula:

 

 

P =

 C  (N  -  T)

 

 

N

 

 

 

 

 

where

 

 

 

 

 

P:

financial participation of the Seller,

 

 

 

 

C:

the Seller’s then current sales price for the required Item or required Seller
designed parts,

 

 

 

 

and

 

 

 

 

(i)

T:

total flying time in hours of the Aircraft since Delivery of the Aircraft in
which the Item subject to a Failure was originally installed,

 

and

 

 

 

 

 

N:

[...***...]

 

 

 

 

or

 

 

 

 

(ii)

T:

total number of flight cycles since Delivery that have been accumulated by the
Aircraft in which the Item subject to a Failure was originally installed,

 

and

 

 

 

 

 

N:

[...***...]

 

 

 

 

or,

 

 

 

 

(iii)

T:

total time in months since Delivery of the Aircraft in which the Item subject to
a Failure was originally installed,

 

and

 

 

 

 

 

N:

[...***...]

 

 

 

 

whichever of the foregoing clauses (i), (ii) and (iii) yields the lowest ratio
of:

 

 

N  -  T

               

 N

 

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12.2.4                                                                  General
Conditions and Limitations

 

12.2.4.1                                                         Notwithstanding
any provision of this Clause 12.2, during the Warranty Period, all Items will be
covered by the provisions of Clause 12.1 of this Agreement and not by the
provisions of this Clause 12.2.

 

12.2.4.2                                                         The Buyer’s
remedies and the Seller’s obligations and liabilities under this Service Life
Policy are subject to the following conditions:

 

(i)                                                                                    
The Buyer maintains log books and other historical records with respect to each
Item adequate to enable the Seller to determine whether the alleged Failure is
covered by this Service Life Policy and, if so, to define the portion of the
cost to be borne by the Seller in accordance with Clause 12.2.3.

 

(ii)                                                                                 
The Buyer keeps the Seller informed of any significant incidents relating to an
Aircraft, howsoever occurring or recorded.

 

(iii)                                                                              
The Buyer complies with the conditions of Clause 12.1.11.

 

(iv)                                                                             
The Buyer implements specific structural inspection programs for monitoring
purposes as may be established from time to time by the  Seller.  Such programs
will be, to the extent possible, compatible with the Buyer’s operational
requirements and will be carried out at the Buyer’s expense, reports relating
thereto to be regularly furnished to the Seller.

 

(v)                                                                                
The Buyer reports in writing any breakage or defect to the Seller within sixty
(60) days after any breakage or defect in an Item becomes apparent, whether or
not the breakage or defect can reasonably be expected to occur in any other
Aircraft, and the Buyer provides the Seller with sufficient detail about the
breakage or defect to enable the Seller to determine whether said breakage or
defect is subject to this Service Life Policy.

 

12.2.4.3                                                         Except as
otherwise provided in this Clause 12.2, any claim under this Service Life Policy
will be administered as provided in, and will be subject to the terms and
conditions of, Clause 12.1.6.

 

12.2.4.4                                                         If the Seller
has issued a service bulletin modification applicable to an Aircraft, the
purpose of which is to avoid a Failure, the Seller may elect to supply the
necessary modification kit free of charge or under a pro rata formula
established by the Seller.  If such a kit is so offered to the Buyer, then, in
respect of such Failure and any Failures that could ensue therefrom, the
validity of the Seller’s commitment under this Clause 12.2 will be subject to
the Buyer’s incorporating such modification in the relevant Aircraft, within a
reasonable time, in accordance with the Seller’s instructions.

 

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12.2.4.5                                                         THIS SERVICE
LIFE POLICY IS NEITHER A WARRANTY, PERFORMANCE GUARANTEE, NOR AN AGREEMENT TO
MODIFY ANY AIRCRAFT OR AIRFRAME COMPONENTS TO CONFORM TO NEW DEVELOPMENTS
OCCURRING IN THE STATE OF AIRFRAME DESIGN AND MANUFACTURING ART.  THE SELLER’S
OBLIGATION UNDER THIS CLAUSE 12.2 IS TO MAKE ONLY THOSE CORRECTIONS TO THE ITEMS
OR FURNISH REPLACEMENTS THEREFOR AS PROVIDED IN THIS CLAUSE 12.2. THE BUYER’S
SOLE REMEDY AND RELIEF FOR THE NONPERFORMANCE OF ANY OBLIGATION OR LIABILITY OF
THE SELLER ARISING UNDER OR BY VIRTUE OF THIS SERVICE LIFE POLICY WILL BE IN A
CREDIT FOR GOODS AND SERVICES, LIMITED TO THE AMOUNT THE BUYER REASONABLY
EXPENDS IN PROCURING A CORRECTION OR REPLACEMENT FOR ANY ITEM THAT IS THE
SUBJECT OF A FAILURE COVERED BY THIS SERVICE LIFE POLICY AND TO WHICH SUCH
NONPERFORMANCE IS RELATED, LESS THE AMOUNT THAT THE BUYER OTHERWISE WOULD HAVE
BEEN REQUIRED TO PAY UNDER THIS CLAUSE 12.2 IN RESPECT OF SUCH CORRECTED OR
REPLACEMENT ITEM.  WITHOUT LIMITING THE EXCLUSIVITY OF WARRANTIES AND GENERAL
LIMITATIONS OF LIABILITY PROVISIONS SET FORTH IN CLAUSE 12.5, THE BUYER HEREBY
WAIVES, RELEASES AND RENOUNCES ALL CLAIMS TO ANY FURTHER DIRECT, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS AND ALL OTHER RIGHTS, CLAIMS
AND REMEDIES, ARISING UNDER OR BY VIRTUE OF THIS SERVICE LIFE POLICY.

 

12.3                                                                                
SUPPLIER WARRANTIES AND SERVICE LIFE POLICIES

 

12.3.1                                                                  Seller’s
Support

 

Before Delivery of the first Aircraft of each type, the Seller will provide the
Buyer with the warranties and service life policies that the Seller has obtained
pursuant to the Supplier Product Support Agreements for each respective Aircraft
type.

 

12.3.2                                                                 
Supplier’s Default

 

12.3.2.1                                                          If any
Supplier under any warranty referred to in Clause 12.3.1 defaults in the
performance of any material obligation under such warranty with respect to a
Supplier Part and the Buyer submits reasonable evidence, within a reasonable
time, that such default has occurred, then Clause 12.1 of this Agreement will
apply to the extent it would have applied had such Supplier Part been a
Warranted Part, to the extent the Seller can reasonably perform said Supplier’s
obligations, except that the Supplier’s warranty period indicated in the
Supplier Product Support Agreements will apply.

 

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12.3.2.2                                                         If any Supplier
under any Supplier service life policy referred to in to Clause 12.3.1 defaults
in the performance of any material obligation under such service life policy,
and (i) the Buyer has used its best reasonable efforts to enforce its rights
under such service life policy, and (ii) the Buyer submits within reasonable
time to the Seller reasonable evidence that such default has occurred, then
Clause 12.2 of this Agreement will apply to the extent the same would have
applied had such component, equipment, accessory or part been listed in
Exhibit C hereto, to the extent that the Seller can reasonably perform said
Supplier’s service life policy.

 

12.3.2.3                                                         At the Seller’s
request, the Buyer will assign to the Seller, and the Seller will be subrogated
to, all of the Buyer’s rights against the relevant Supplier with respect to, and
arising by reason of, such default and the Buyer will provide reasonable
assistance to enable the Seller to enforce the rights so assigned.

 

12.4                                                                          
INTERFACE COMMITMENT

 

12.4.1                                                                 
Interface Problem

 

If the Buyer experiences any technical problem in the operation of an Aircraft
or its systems due to a malfunction, the cause of which, after due and
reasonable investigation, is not readily identifiable by the Buyer, but which
the Buyer reasonably believes to be attributable to the design characteristics
of one or more components of the Aircraft (an “Interface Problem”), the Seller
will, if requested by the Buyer, and without additional charge to the Buyer,
except for transportation of the Seller’s or its designee’s personnel to the
Buyer’s facilities, promptly conduct or have conducted an investigation and
analysis of such problem to determine, if possible, the cause or causes of the
problem and to recommend such corrective action as may be feasible.  The Buyer
will furnish to the Seller all data and information in the Buyer’s possession
relevant to the Interface Problem and will cooperate with the Seller in the
conduct of the Seller’s investigations and such tests as may be required. At the
conclusion of such investigation the Seller will promptly advise the Buyer in
writing of the Seller’s opinion as to the cause or causes of the Interface
Problem and the Seller’s recommendations as to corrective action.

 

12.4.2                                                                  Seller’s
Responsibility

 

If the Seller determines that the Interface Problem is primarily attributable to
the design of a Warranted Part, the Seller will, if requested by the Buyer,
correct the design of such Warranted Part pursuant to the terms and conditions
of Clause 12.1.

 

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12.4.3                                                                 
Supplier’s Responsibility

 

If the Seller determines that the Interface Problem is primarily attributable to
the design of any Supplier Part, the Seller will at the Buyer’s request,
reasonably assist the Buyer in processing any warranty claim the Buyer may have
against the manufacturer of such Supplier Part.

 

12.4.4                                                                  Joint
Responsibility

 

If the Seller determines that the Interface Problem is attributable partially to
the design of a Warranted Part and partially to the design of any Supplier Part,
the Seller will, if requested by the Buyer, seek a solution to the Interface
Problem through cooperative efforts of the Seller and any Supplier involved. 
The Seller will promptly advise the Buyer of any corrective action proposed by
the Seller and any such Supplier.  Such proposal will be consistent with any
then existing obligations of the Seller hereunder and of any such Supplier to
the Buyer.  Such corrective action, unless reasonably rejected by the Buyer,
will constitute full satisfaction of any claim the Buyer may have against either
the Seller or any such Supplier with respect to such Interface Problem.

 

12.4.5                                                                  General

 

12.4.5.1                                                         All requests
under this Clause 12.4 will be directed both to the Seller and to the affected
Suppliers.

 

12.4.5.2                                                         Except as
specifically set forth in this Clause 12.4, this Clause 12.4 will not be deemed
to impose on the Seller any obligations not expressly set forth elsewhere in
this Agreement.

 

12.4.5.3                                                         All reports,
recommendations, data and other documents furnished by the Seller to the Buyer
pursuant to this Clause 12.4 will be deemed to be delivered under this Agreement
and will be subject to the terms, covenants and conditions set forth in this
Clause 12 and in Clause 22.9.

 

12.5                                                                          
EXCLUSIVITY OF WARRANTIES

 

THIS CLAUSE 12 SETS FORTH THE EXCLUSIVE WARRANTIES, EXCLUSIVE LIABILITIES AND
EXCLUSIVE OBLIGATIONS OF THE SELLER, AND THE EXCLUSIVE REMEDIES AVAILABLE TO THE
BUYER, WHETHER UNDER THIS AGREEMENT OR OTHERWISE, ARISING FROM ANY DEFECT OR
NONCONFORMITY OR PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT, EQUIPMENT,
ACCESSORY, PART, SOFTWARE, DATA OR SERVICE DELIVERED BY THE SELLER UNDER THIS
AGREEMENT.

 

THE BUYER RECOGNIZES THAT THE RIGHTS, WARRANTIES AND REMEDIES IN THIS CLAUSE 12
ARE ADEQUATE AND SUFFICIENT TO PROTECT THE BUYER FROM ANY DEFECT OR
NONCONFORMITY OR

 

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PROBLEM OF ANY KIND IN THE GOODS AND SERVICES SUPPLIED UNDER THIS AGREEMENT. 
THE BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER WARRANTIES,
OBLIGATIONS, GUARANTEES AND LIABILITIES OF THE SELLER AND ALL OTHER RIGHTS,
CLAIMS AND REMEDIES OF THE BUYER AGAINST THE SELLER, WHETHER EXPRESS OR IMPLIED
BY CONTRACT, TORT, OR STATUTORY LAW OR OTHERWISE, WITH RESPECT TO ANY
NONCONFORMITY OR DEFECT OR PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT,
EQUIPMENT, ACCESSORY, PART, SOFTWARE, DATA OR SERVICE DELIVERED BY THE SELLER
UNDER THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO:

 

(1)                                                                                 
ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR ANY GENERAL OR
PARTICULAR PURPOSE;

 

(2)                                                                                 
ANY IMPLIED OR EXPRESS WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF
DEALING OR USAGE OF TRADE;

 

(3)                                                                                 
ANY RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

 

(4)                                                                                 
ANY RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF LIABILITY, HOWEVER
ALLEGED, INCLUDING, BUT NOT LIMITED TO, ACTIONS AND/OR CLAIMS FOR NEGLIGENCE,
GROSS NEGLIGENCE, INTENTIONAL ACTS, WILLFUL DISREGARD, IMPLIED WARRANTY, PRODUCT
LIABILITY, STRICT LIABILITY OR FAILURE TO WARN;

 

(5)                                                                                 
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER THE UNIFORM COMMERCIAL CODE OR ANY
OTHER STATE OR FEDERAL STATUTE;

 

(6)                                                                                 
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER ANY REGULATIONS OR STANDARDS IMPOSED BY
ANY INTERNATIONAL, NATIONAL, STATE OR LOCAL STATUTE OR AGENCY;

 

(7)                                                                                 
ANY RIGHT, CLAIM OR REMEDY TO RECOVER OR BE COMPENSATED FOR:

 

(a)                                  LOSS OF USE OR REPLACEMENT OF ANY AIRCRAFT,
COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED UNDER THIS AGREEMENT;

 

(b)                                 LOSS OF, OR DAMAGE OF ANY KIND TO, ANY
AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED UNDER THIS AGREEMENT;

 

(c)                                  LOSS OF PROFITS AND/OR REVENUES;

 

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(d)                                 ANY OTHER INCIDENTAL OR CONSEQUENTIAL
DAMAGE.

 

THE WARRANTIES AND SERVICE LIFE POLICY PROVIDED BY THIS AGREEMENT WILL NOT BE
EXTENDED, ALTERED OR VARIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED BY THE SELLER
AND THE BUYER.  IN THE EVENT THAT ANY PROVISION OF THIS CLAUSE 12 SHOULD FOR ANY
REASON BE HELD UNLAWFUL, OR OTHERWISE UNENFORCEABLE, THE REMAINDER OF THIS
CLAUSE 12 WILL REMAIN IN FULL FORCE AND EFFECT.

 

FOR THE PURPOSE OF THIS CLAUSE 12.5, “SELLER” WILL BE UNDERSTOOD TO INCLUDE THE
SELLER, ITS AFFILIATES AND SUPPLIERS.

 

12.6                                                                          
DUPLICATE REMEDIES

 

The remedies provided to the Buyer under Clause 12.1 and Clause 12.2 as to any
defect in respect of the Aircraft or any part thereof are mutually exclusive and
not cumulative.  The Buyer will be entitled to the remedy that provides the
maximum benefit to it, as the Buyer may elect, pursuant to the terms and
conditions of this Clause 12 for any particular defect for which remedies are
provided under this Clause 12; provided, however, that the Buyer will not be
entitled to elect a remedy under both Clause 12.1 and Clause 12.2 for the same
defect.  The Buyer’s rights and remedies herein for the nonperformance of any
obligations or liabilities of the Seller arising under these warranties will be
in monetary damages limited to the amount the Buyer expends in procuring a
correction or replacement for any covered part subject to a defect or
nonperformance covered by this Clause 12, and the Buyer will not have any right
to require specific performance by the Seller.

 

12.7                                                                          
TRANSFERABILITY

 

The Buyer’s rights under this Clause 12 may not be assigned, sold, transferred,
novated or otherwise alienated by operation of law or otherwise, without the
Seller’s prior written consent.  Any assignment, sale, transfer or novation in
violation of this Clause 12.7 will, as to the Aircraft involved, immediately
void the rights and warranties of the Buyer under this Clause 12 and any and all
other warranties that might arise under or be implied in law, or otherwise.

 

12.8                                                                          
NEGOTIATED AGREEMENT

 

                                                                                               
The Parties each acknowledge that:

 

(i)                                                                                    
the Specification has been agreed upon after careful consideration by the Buyer
using its judgment as a professional operator of, and maintenance provider with
respect to, aircraft used in public transportation and as such is a professional
within the same industry as the Seller;

 

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(ii)                           this Agreement, and in particular this Clause 12,
has been the subject of discussion and negotiation and is fully understood  by
the Buyer; and

 

(iii)                          the price of the Aircraft and the other mutual
agreements of the Buyer set forth in this Agreement were arrived at in
consideration of, inter alia, the provisions of this Clause 12, specifically
including the Exclusivity of Warranties set forth in Clause 12.5.

 

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APPENDIX A TO CLAUSE 16

 

13 -                                         PATENT AND COPYRIGHT INDEMNITY

 

13.1                        INDEMNITY

 

13.1.1                      Subject to the provisions of Clause 13.2.3, the
Seller will indemnify the Buyer from and against any damages, costs and expenses
including reasonable legal costs (excluding damages, costs, expenses, loss of
profits and other liabilities in respect of or resulting from loss of use of the
Aircraft) resulting from any infringement or claim of infringement by the
Airframe or any part or software installed therein at Delivery of

 

(i)                            any British, French, German, Spanish or U.S.
patent; and

 

(ii)                           any patent issued under the laws of any other
country in which the Buyer may lawfully operate the Aircraft, provided that from
the time of design of such Airframe or any part or software installed therein at
Delivery and until infringement claims are resolved, the country of the patent
and the flag country of the Aircraft are both parties to:

 

(1)               the Chicago Convention on International Civil Aviation of
December 7, 1944, and are each fully entitled to all benefits of Article 27
thereof, or,

 

(2)               the International Convention for the Protection of Industrial
Property of March 20, 1883 (the “Paris Convention”); and

 

(iii)                          in respect of computer software installed on the
Aircraft, any copyright, provided that the Seller’s obligation to indemnify will
be limited to infringements in countries which, at the time of design, are
members of The Berne Union and recognize computer software as a “work” under the
Berne Convention.

 

13.1.2                      Clause 13.1.1 will not apply to

 

(i)                            Buyer Furnished Equipment;

 

(ii)                           the Propulsion Systems;

 

(iii)                          Supplier Parts; or

 

(iv)                          software not developed by the Seller.

 

13.1.3                      If the Buyer, due to circumstances contemplated in
Clause 13.1.1, is prevented from using the Aircraft (whether by a valid judgment
of a court of competent jurisdiction or by a settlement arrived at among the
claimant, the Seller and the Buyer), the Seller will at its expense either

 

(i)                            procure for the Buyer the right to use the
affected Airframe, part or software free of charge; or

 

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(ii)                           replace the infringing part or software as soon
as possible with a non-infringing substitute.

 

13.2                         Administration of Patent and Copyright Indemnity
Claims

 

13.2.1                      If the Buyer receives a written claim or a suit is
threatened or begun against the Buyer for infringement of a patent or copyright
referred to in Clause 13.1, the Buyer will

 

(i)                            forthwith notify the Seller, giving particulars
thereof;

 

(ii)                           furnish to the Seller all data, papers and
records within the Buyer’s control or possession relating to such patent or
claim;

 

(iii)                          refrain from admitting any liability or making
any payment, or assuming any expenses, damages, costs or royalties, or otherwise
acting in a manner prejudicial to the defense or denial of the suit or claim, it
being agreed that nothing in this Clause 13.2.1(iii) will prevent the Buyer from
paying the sums that may be required to obtain the release of the Aircraft,
provided that payment is accompanied by a denial of liability and is made
without prejudice;

 

(iv)                          fully cooperate with, and render all assistance
to, the Seller as may be pertinent to the defense or denial of the suit or
claim; and

 

(v)                           act to mitigate damages and/or to reduce the
amount of royalties that may be payable, and act to minimize costs and expenses.

 

13.2.2                      The Seller will be entitled either in its own name
or on behalf of the Buyer to conduct negotiations with the party or parties
alleging infringement and may assume and conduct the defense or settlement of
any suit or claim in the manner that, in the Seller’s opinion, it deems proper.

 

13.2.3                      The Seller’s liability hereunder will be conditioned
on the strict and timely compliance by the Buyer with the terms of this Clause
13 and is in lieu of any other liability to the Buyer, whether express or
implied, which the Seller might incur at law as a result of any infringement or
claim of infringement of any patent or copyright.

 

THE INDEMNITY PROVIDED IN THIS CLAUSE 13 AND THE OBLIGATIONS AND LIABILITIES OF
THE SELLER UNDER THIS CLAUSE 13 ARE EXCLUSIVE AND IN SUBSTITUTION FOR, AND THE
BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER INDEMNITIES, WARRANTIES,
OBLIGATIONS, GUARANTEES AND LIABILITIES ON THE PART OF THE SELLER AND RIGHTS,
CLAIMS AND REMEDIES OF THE BUYER AGAINST THE SELLER, EXPRESS OR IMPLIED, ARISING
BY LAW OR OTHERWISE (INCLUDING WITHOUT

 

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LIMITATION ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY ARISING FROM OR
WITH RESPECT TO LOSS OF USE OR REVENUE OR CONSEQUENTIAL DAMAGES), WITH RESPECT
TO ANY ACTUAL OR ALLEGED PATENT INFRINGEMENT OR THE LIKE BY ANY AIRFRAME,
PART OR SOFTWARE INSTALLED THEREIN AT DELIVERY, OR THE USE OR SALE THEREOF,
PROVIDED THAT, IN THE EVENT THAT ANY OF THE AFORESAID PROVISIONS SHOULD FOR ANY
REASON BE HELD UNLAWFUL OR OTHERWISE INEFFECTIVE, THE REMAINDER OF THIS CLAUSE
WILL REMAIN IN FULL FORCE AND EFFECT.  THIS INDEMNITY AGAINST PATENT AND
COPYRIGHT INFRINGEMENTS WILL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT BY A
WRITTEN INSTRUMENT SIGNED BY THE SELLER AND THE BUYER.

 

14 -                          TECHNICAL DATA AND SOFTWARE SERVICES

 

This Clause sets forth the terms and conditions for the supply of technical data
(“Technical Data”) and software services (“Software Services”).

 

14.1                         Technical Data

 

14.1.1                      The Technical Data shall be supplied in the English
language using aeronautical terminology in common use.

 

14.1.2                      Range, form, type, format, ATA/non-ATA compliance,
revision and quantity and delivery schedule of the Technical Data for the
A330-200 Aircraft to be provided are covered in Exhibit F1.

 

Range, type, format, ATA/non-ATA compliance, revision and quantity and delivery
schedule of the Technical Data for the A350XWB-800 Aircraft to be provided are
covered in Exhibit F2.

 

14.1.3                      The Buyer shall not receive credit or compensation
for any partially used or unused Technical Data provided pursuant to this Clause
14.

 

14.2                         Aircraft Identification for Technical Data

 

For those Technical Data that are customized to the Buyer’s Aircraft, the Buyer
agrees to the allocation of fleet serial numbers (the “FSNs”) in the form of
block of numbers selected in the range from 001 to 999.

 

The sequence shall be interrupted only if two (2) or more different Propulsion
Systems or different Aircraft models are selected.

 

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The Buyer shall indicate to the Seller the FSNs corresponding to the Aircraft as
listed in Clause 9.1.1 of this Agreement within forty-five (45) days after
execution of this Agreement.  The allocation of FSNs to such Aircraft shall not
constitute any proprietary, insurable or other interest of the Buyer in any
Aircraft before delivery of and payment for Aircraft as provided in this
Agreement.

 

The Technical Data that may be customized are:

 

·                  Aircraft Maintenance Manual

·                  Illustrated Parts Catalog

·                  Trouble Shooting Manual

·                  Aircraft Wiring Manual

·                  Aircraft Schematics Manual

·                  Aircraft Wiring Lists

 

14.3                         Integration of Equipment Data

 

14.3.1                      Supplier Equipment

 

To the extent necessary for the understanding of the affected systems,
information, including revisions, relating to Supplier equipment that is
installed on the Aircraft at Delivery shall be introduced free of charge into
the customized Technical Data.

 

14.3.2                      Buyer Furnished Equipment

 

14.3.2.1                   The Seller shall introduce Buyer Furnished Equipment
data for BFE which is installed on the Aircraft by the Seller (“BFE Data”) into
the customized Technical Data at no additional charge to the Buyer for the
initial issue of the Technical Data supplied at or before Delivery of the first
Aircraft of each type, provided such data is provided in accordance with the
conditions set forth in Clauses 14.3.2.2 through 14.3.2.4.

 

14.3.2.2                   The Buyer shall supply the BFE Data to the Seller, in
English compliant with the then applicable revision of ATA i2200 iSpecification
2200 (iSpec 2200) Information Standards for Aviation Maintenance, at least six
(6) months before the Scheduled Delivery Month of the first Aircraft of each
type.

 

14.3.2.3                   The Buyer and the Seller shall enter into a separate
agreement addressing the time frame, media and format in which BFE Data shall be
provided to the Seller to facilitate the process of BFE Data integration in an
efficient, expeditious and economic manner.

 

14.3.2.4                   Such agreement shall specify that the BFE Data shall
be delivered in digital format (SGML) and/or in Portable Document Format (PDF).

 

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14.3.2.5                   All costs related to the delivery to the Seller of
the applicable BFE Data shall be borne by the Buyer.

 

14.4                         DELIVERY OF TECHNICAL DATA

 

14.4.1                      Except as set forth in Exhibits F, all Technical
Data shall be delivered online through the relevant services on the Seller’s
customer portal AirbusWorld.

 

14.4.2                      The Technical Data and corresponding revisions to be
supplied by the Seller in a format other than on-line shall be sent to two
(2) addresses only, and only upon explicit request from the Buyer, to cover some
specific back-up requirements.

 

14.4.3                      Offline Technical Data and revisions shall be packed
and shipped by the quickest transportation methods reasonably available.
Shipment shall be Delivery Duty Unpaid (DDU) as defined in Incoterms 2000
published by the International Chamber of Commerce, Toulouse, France, and/or
Delivery Duty Unpaid (DDU) Hamburg, Germany.

 

14.4.4                    The Technical Data shall be delivered according to a
mutually agreed schedule, designed to correspond to Aircraft deliveries. The
Buyer shall provide no less than forty (40) days’ notice to the Seller if a
change is requested to the delivery schedule for the Technical Data.

 

14.4.5                      The Buyer shall be responsible for the coordination
with and satisfaction of local Aviation Authorities’ requirements for Technical
Data.

 

14.5                         REVISION SERVICE FOR TECHNICAL DATA

 

                                                                                               
Unless otherwise specifically stated, revision service for the A330-200 Aircraft
Technical Data shall be [...***...] (the “A330-200 Revision Service Period”).
Thereafter, revision service shall be provided in accordance with the terms and
conditions found in the Seller’s then current Customer Services Catalog (the “CS
Catalog”).

 

Unless otherwise specifically stated, revision service for the A350XWB-800
Aircraft Technical Data shall be [...***...] (the “A350XWB-800 Revision Service
Period”). Thereafter, revision service shall be provided in accordance with the
terms and conditions found in the Seller’s then current CS Catalog.

 

14.6                         SERVICE BULLETIN (SB) INCORPORATION FOR TECHNICAL
DATA

 

During the Revision Service Period and upon the Buyer’s request for
incorporation of Seller’s Service Bulletin information into the Technical Data,
such information shall be incorporated into the Technical Data for the Buyer’s
Aircraft, provided that the Buyer notifies the Seller of its intention to
accomplish a

 

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Service Bulletin through the relevant AirbusWorld on-line Service Bulletin
reporting application, within two years after issuance of the applicable Service
Bulletin. The split effectivity for the corresponding Service Bulletin shall
remain in the Technical Data until notification from the Buyer that embodiment
has been completed on all the Buyer’s Aircraft for Technical Data relating to
maintenance only.  For Technical Data designated as “Operational” in Exhibit F,
either the pre or post (but not both) Service Bulletin status shall be shown.

 

14.7                                                                          
TECHNICAL DATA FAMILIARIZATION

 

Upon request by the Buyer, the Seller shall provide one (1) week of Technical
Data familiarization training, at the Seller’s or Buyer’s facility. Such
training shall be conducted in the English language.  If such training is
conducted at the Buyer’s facilities, the Buyer shall reimburse the Seller for
business class air transportation and reasonable living expenses of the
representative(s) of Seller conducting the familiarization training.

 

14.8                                                                          
CUSTOMER ORIGINATED CHANGES (COC)

 

Upon the Buyer’s request, Buyer-originated data (“COC Data”) may be incorporated
into any of the Technical Data eligible for such incorporation as defined in the
Seller’s then current CS Catalog.

 

COC Data shall be developed and introduced by the Buyer according to the methods
and tools for achieving such introduction and the conditions set forth in the CS
Catalog. The Buyer shall ensure that any COC Data is in compliance with the
requirements of its local Aviation Authorities.

 

Incorporation of any COC Data shall be at the Buyer’s sole risk, and the Buyer
shall indemnify the Seller against any liability whatsoever with respect to the
contents, effect of incorporations or costs attributable to incorporation of
COCs.

 

14.9                                                                          
INTEGRATED SOFTWARE

 

14.9.1                                                                 The
Technical Data domains listed below shall be provided on DVD (for the A330-200
Aircraft Technical Data) or online (for the A350XWB-800 Aircraft) and shall
include integrated software covering the following domains:

 

·                  Maintenance

·                  Planning

·                  Repair

·                  Workshop

·                  Associated Data

·                  Engineering

 

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APPENDIX A TO CLAUSE 16

 

14.9.2                                                          The licensing
conditions for the use of the integrated software shall be as set forth in the
General Conditions of Licensing of Software (the “General Conditions”) published
in the then-current CS Catalog, as may be modified with respect to any
particular software by any specific license or agreement to be entered into
between the Buyer on the one hand and the Seller or an Affiliate of the Seller
on the other hand. The General Conditions current as of the date of this
Agreement is set forth in Exhibit H to this Agreement.

 

14.9.3                                                          The license to
use the integrated software shall be granted free of charge for the Aircraft for
a period equal to the Revision Service Period. At the end of the Revision
Service Period, the yearly revision service for the integrated software and the
associated license fee shall be provided to the Buyer at the standard commercial
conditions set forth in the Seller’s then current CS Catalog.

 

14.10                                                                    
ON-LINE SERVICES; CUSTOMER PORTAL

 

14.10.1                                                    The Buyer shall be
provided with access to the Secure Area of AirbusWorld, (“Secure Area”) through
which a variety of on-line products and services related to the Aircraft,
including Technical Data, are available, pursuant to the General Terms and
Conditions of Access to and Use of Secure Area of AirbusWorld (the “GTC”)
published in the then-current CS Catalog. A copy of the GTC current as of the
date of this Agreement is attached as Exhibit I.

 

14.10.2                                                    The Seller reserves
the right to suppress any formats of Technical Data otherwise accessible
on-line.

 

14.10.3                                                    Access to the Secure
Area shall be at no cost for the duration of the Revision Service Period. Such
access shall be granted for a maximum of twelve (12) of the Buyer’s users
(including one Buyer Administrator) for the Technical Data related to the
Aircraft delivered under this Agreement.

 

14.11                                                             Warranty

 

The provisions of Clause 12 and in particular of Clause 12.5 (EXCLUSIVITY OF
WARRANTIES AND GENERAL LIMITATIONS OF LIABILITY), shall apply to the provision
of Technical Data under this Clause 14.

 

14.12                                                             Proprietary
Rights

 

14.12.1                                                    All proprietary
rights, including but not limited to patent, design and copyrights, relating to
Technical Data shall remain with the Seller. All Technical Data are supplied to
the Buyer for the sole use of the Buyer, who undertakes not to divulge the
contents thereof to any third party save as permitted herein or otherwise
pursuant to any governmental or legal requirement imposed on the Buyer.

 

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14.12.2                    These proprietary rights shall also apply to any
translation into a language or languages or media that may have been performed
or caused to be performed by the Buyer.

 

14.13                       SOFTWARE SERVICES

 

14.13.1                    Performance Engineer’s Program  or PEP

 

In addition to Technical Data, the Seller will provide to the Buyer the
Performance Engineer’s Programs (“PEP”) under the General Conditions. Use of the
PEP will be limited to one (1) copy installed on one (1) computer.  PEP is
intended for use on ground only and will not be installed on an Aircraft.

 

14.13.2                    The license for use of PEP shall be granted free of
charge for a period equal to the Revision Service Period.  At the expiration of
such period, the Buyer shall be entitled to continue to use the PEP but the
Buyer shall be charged for all revisions, in accordance with the terms and
conditions of the then-current CS Catalog.

 

14.14                       GENERAL PROVISIONS

 

14.15                       FUTURE DEVELOPMENTS IN TECHNICAL DATA

 

The Seller shall implement and the Buyer shall accept any new technological
development applicable to the Technical Data that the Seller in its sole
discretion deems to be beneficial and economical for the production and
transmission of data and documents.

 

14.16                       Confidentiality

 

The Technical Data, the Software Services and their content are designated as
confidential.  All such Technical Data and Software Services are supplied to the
Buyer for the sole use of the Buyer who undertakes not to disclose the contents
thereof to any third party without the prior written consent of the Seller as
permitted therein or otherwise pursuant to any government or legal requirement
imposed upon the Buyer.

 

If the Seller authorizes the disclosure of any of the Technical Data to third
parties, either under this Agreement or otherwise, the Buyer shall assure that
such third party agrees to be bound by the same conditions as the Buyer with
respect to the confidentiality of the Technical Data and/or Software Services.

 

If the Buyer intends to designate a maintenance and repair organization (an
“MRO”) to perform the maintenance of the Aircraft, the Buyer shall notify the
Seller of such intention prior to any disclosure of this Clause and/or the
Technical Data and/or the Software Services to the selected MRO and shall cause
such MRO to enter into a confidentiality agreement with the Seller and, in the
case of Software Services, appropriate licensing conditions, and to commit to
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Technical Data and Software Services solely for the purpose of maintaining the
Buyer’s Aircraft.

 

14.17                       TRANSFERABILITY

 

Buyer’s rights under this Clause 14 will not be assigned, sold, transferred,
novated or otherwise alienated by operation of law or otherwise, without the
Seller’s prior written consent.  Any unauthorized assignment, sale, transfer,
novation, or other alienation of the Buyer’s rights under this Clause 14 will,
as to the particular Aircraft involved, immediately void this Clause 14 in its
entirety.

 

15 -                         SELLER REPRESENTATIVES

 

The Seller shall provide or cause to be provided at no charge to the Buyer the
services described in this Clause 15, at the Buyer’s main base or at other
locations to be mutually agreed.

 

15.1                         RESIDENT CUSTOMER SUPPORT REPRESENTATIVES

 

15.1.1                      The Seller shall cause ANACS to provide free of
charge one (1) representative to act in an advisory capacity at the Buyer’s main
base or at such other locations (“Seller’s Representative”) as the Buyer and
Seller may agree.

 

(i)                            The Seller shall provide such Seller’s
Representative for a period beginning no later than two weeks before the
scheduled delivery month of the first Aircraft [...***...]

 

15.1.2                      The Seller shall provide to the Buyer an annual
written account of the consumed months and any remaining balance of months. 
Such account shall be deemed approved by the Buyer unless the Seller receives
written objection from the Buyer within thirty (30) days of receipt of such
account.

 

15.1.3                      Should the Buyer request additional services that
exceed the amounts set forth in Clause 15.1.1(ii), the Seller may provide
additional service subject to the terms and conditions agreed by the Buyer and
the Seller at the time of such request.

 

15.1.4                      The Seller shall cause similar services to be
provided by the representatives of the Propulsion System manufacturer and by
representatives of the Suppliers when necessary and applicable.

 

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15.2                         CUSTOMER SUPPORT DIRECTOR

 

The Seller shall cause ANACS to assign the services of one (1) Customer Support
Director based in Herndon, Virginia, to liaise between the Seller and the Buyer
on product support matters after signature of this Agreement for as long as the
Buyer operates at least one (1) Aircraft.

 

15.3                         BUYER’S SUPPORT

 

15.3.1                      From the date of arrival of the first Seller’s
Representative and for the duration of the assignment, the Buyer shall provide,
free of charge, suitable office space, office equipment and facilities including
telephone, email, internet and facsimile connections for the sole use of the
Seller’s Representative in or conveniently near the Buyer’s maintenance
facilities.

 

15.3.2                      The Buyer shall provide at no charge to the Seller

 

(i)                            reimbursement for airline tickets in business
class, confirmed and guaranteed between the locations mentioned above in Clause
15.1.1 and the international airport nearest Toulouse, France, that is on the
Buyer’s network, for the Sellers’ Representative, for travel at the beginning
and end of the applicable assignment; and

 

(ii)                           when said Seller’s Representative is assigned
away from the locations mentioned above in Clause 15.1.1 at the Buyer’s request,
reimbursement for transportation on coach class basis between said locations and
the place of assignment.

 

15.3.3                      The parties shall give each other all necessary
reasonable assistance with general administrative functions specific to their
respective countries and procurement of the documents necessary to live and work
there.

 

15.4                         TEMPORARY ASSIGNMENT AND WITHDRAWAL OF RESIDENT
CUSTOMER SUPPORT REPRESENTATIVE

 

The Seller shall have the right upon written notice to and communication with
the Buyer to transfer or recall any Seller’s Representative on a temporary or
permanent basis if, in the Seller’s reasonable opinion, conditions are dangerous
to the Seller’s Representative’s safety or health or prevent the fulfillment of
such Seller’s Representative’s contractual tasks. The man-days during which any
Seller’s Representative is absent from the Buyer’s facility pursuant to this
Clause 15 shall not be deducted from the total to which the Buyer is entitled
under Clause 15.

 

15.5                         REPRESENTATIVES’ STATUS

 

In providing the above technical service, the Seller’s employees, including all
Seller’s Representative and the Customer Support Director, are deemed to be

 

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acting in an advisory capacity only and at no time shall they be deemed to be
acting, either directly or indirectly, as the Buyer’s employees or agents.

 

16 -                          TRAINING AND TRAINING AIDS

 

16.1                         GENERAL

 

This Clause sets forth the terms and conditions for the supply of training and
training aids for the Buyer’s personnel to support the Aircraft operation.

 

16.2                         SCOPE

 

16.2.1                      The range and quantity of training and training aids
to be provided free of charge under this Agreement are covered in Appendix A to
this Clause 16. The Seller shall arrange availability of such training and
training aids in relation to the delivery schedule for the Aircraft set forth in
Clause 9.1.1.

 

16.2.2                      The contractual training courses, defined in
Appendix A to this Clause 16, shall be provided up to two (2) years after
Delivery of the last Aircraft.

 

16.2.3                      In the event that the Buyer should use none or only
part of the training or training aids to be provided pursuant to this Clause, no
compensation or credit of any sort shall be provided.

 

16.3                         TRAINING ORGANIZATION / LOCATION

 

16.3.1                      The Seller will provide the training at the Airbus
Training Center in Miami, Florida (the “Seller’s Training Center”) and/or at an
affiliated training center in Blagnac, France.

 

16.3.2                      If unavailability of facilities or scheduling
difficulties make training by the Seller impractical at the training centers
referenced in Clause 16.3.1, the Seller shall ensure that the Buyer is provided
the training support described in this Clause 16 at a location other than those
named in Clause 16.3.1.

 

16.3.3.1                   Upon the Buyer’s request the Seller may also provide
certain training at a location other than the Seller’s Training Centers,
including one of the Buyer’s bases, if and when practicable for the Seller,
under terms and conditions to be mutually agreed upon. In this event, all
additional charges listed in Clause 16.6.2 shall be borne by the Buyer.

 

16.3.3.2                   If the Buyer requests an Airbus approved course at a
location as indicated in Clause16.3.3.1, the Buyer shall assure that the
training facilities are approved prior to the performance of such training. The
Buyer shall, as necessary and in due time prior to the performance of such
training, provide access to the training facilities set forth in

 

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Clause 16.3.3.1 to the Seller’s and the Aviation Authority’s representatives for
approval of such facilities.

 

16.4                         TRAINING COURSES

 

16.4.1                      Training courses, as well as the minimum and maximum
numbers of trainees per course provided for the Buyer’s personnel, are defined
in the applicable training course catalog published by the Seller (the “Training
Course Catalog”) and shall be scheduled by Seller during a training conference
(the “Training Conference”)  that shall be held as soon as practicable after
signature of this Agreement and no later than nine (9) months prior to delivery
of the first Aircraft. The training courses provided under this Clause 16 shall
be scheduled to accommodate the delivery schedule set forth in Clause 9 and
shall be available to the Buyer for up to two (2) years following Delivery of
the last Aircraft.

 

16.4.2                    The following terms shall apply when training is
performed by ANACS:

 

(i)                            Subject to 16.4.2(ii) below, training courses
shall be standard Airbus courses as described in the applicable Training Course
Catalog valid at the time of execution of the course. ANACS shall be responsible
for all training course syllabi, training personnel, training aids and training
equipment (not to include aircraft) necessary for the organization of the
training courses, all of which shall, if applicable, be approved by the Buyer’s
Aviation Authority.

 

(ii)                           Where ANACS agrees to perform training using
Buyer’s standard courses, Buyer shall be responsible for (a) taking all steps
necessary to assure approval by applicable Aviation Authorities of such training
(including any needed approvals of specific ANACS instructors) and (b) the costs
of instructor hours spent preparing for being qualified for use of Buyer’s
standard courses.

 

(iii)                          The training curricula and the training equipment
used for flight crew, cabin crew and maintenance training shall not be fully
customized but shall be configured in order to obtain the relevant Aviation
Authority’s approval and to support the Seller’s training programs.

 

(iv)                          Training data and documentation necessary for
training detailed in Appendix A to this Clause 16 shall be free-of-charge and
shall not be revised. Training data and documentation shall be marked “FOR
TRAINING ONLY” and as such shall be supplied for the sole and express purpose of
training.

 

(v)                           Upon the request of the Buyer and at no charge to
the Buyer, the Seller shall collect and pack for consolidated shipment to the
Buyer’s facility, all training data and documentation of the Buyer’s trainees
attending training at the Seller’s Training Center. This training data and
documentation shall be delivered Free Carrier (FCA) as defined by Incoterms 2000
of the International Chamber of

 

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Commerce published January 2000, the airport nearest to the location where the
training takes place. It is understood that title to and risk of loss of the
training data and documentation shall pass to the Buyer upon delivery.

 

16.4.3.1                   If the Buyer decides to cancel fully or partially or
reschedule, a training course, a minimum advance notification of at least sixty
(60) calendar days prior to the relevant training course start date is required.

 

16.4.3.2                   If such notification is received by the Seller or
ANACS less than sixty (60) but no more than thirty (30) calendar days prior to
such training, a cancellation fee corresponding to fifty percent (50%) of such
training shall be, as applicable, either deducted from the training allowance
set forth in Appendix A or invoiced at the price corresponding to such training
in the Seller’s then current Training Course Catalog

 

16.4.3.3                   If such notification is received by the Seller in
less than thirty (30) calendar days prior to such training, a cancellation fee
corresponding to one hundred (100%) of such training shall be, as applicable,
either deducted from the training allowance set forth in Appendix A or invoiced
at the price corresponding to such training in the Seller’s then current
Training Course Catalog.

 

16.4.4                      When ANACS performs the training courses, ANACS
shall deliver to the trainees a certificate of completion or recognition (each a
“Certificate”) at the end of any such training course, as applicable.  Such
Certificate shall not represent authority or qualification by any official
Aviation Authority but may be presented to such officials in order to obtain
relevant formal qualification.

 

If training is provided by a training provider other than ANACS that is selected
by the Seller, the Seller shall cause such training provider to deliver a
Certificate at the end of any such training course. Such Certificate shall not
represent authority or qualification by any official Aviation Authority but may
be presented to such officials in order to obtain relevant formal qualification.

 

16.5                         PREREQUISITES AND CONDITIONS

 

16.5.1                      Training shall be conducted in English and all
training aids are written in English using common aeronautical terminology.
Trainees must have the prerequisite experience specified in Appendix B to this
Clause 16.

 

All training courses conducted pursuant to this Clause 16 are “Standard
Transition Training Courses” and not “Ab Initio Training Courses.”

 

The Buyer shall be responsible for the selection of the trainees and for any
liability with respect to the entry knowledge level of the trainees.

 

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16.5.2.1                   The Buyer shall provide the Seller with an attendance
list of the trainees for each course with the validated qualification of each
trainee. The Seller reserves the right to verify the trainees’ proficiency and
previous professional experience. The Seller shall in no case warrant or
otherwise be held liable for any trainee’s performance as a result of any
training services provided.

 

16.5.2.2                   The Buyer shall also complete and provide to the
Seller the “Airbus Pre-Training Survey” detailing the trainees’ associated
background at the time of reservation of the training course and in no event any
later than sixty (60) calendar days prior to the start of the training course. 
If the Buyer makes a change to the identity of any trainee on the attendance
list pursuant to Clause 16.5.2.1 the Buyer shall promptly inform the Seller
thereof and no later than five (5) Business Days prior to the start of the
training course, send to the Seller an updated Airbus Pre-Training Survey
reflecting such change. Except as provided in the foregoing sentence, the notice
provisions in Clause 16.4.3.1 and 16.4.3.2 apply for changes.

 

16.5.3                      Upon the Buyer’s request, the Seller may be
consulted to direct the above mentioned trainee(s) through a relevant entry
level training program, which shall be at the Buyer’s charge, and, if necessary,
to coordinate with competent outside organizations for this purpose. Such
consultation shall be held during the Training Conference or at such other time
requested by the Buyer during the period described in Clause 16.2.2. If the
Seller should determine that a trainee lacks the required entry level training,
such trainee shall, following consultation with the Buyer, be withdrawn from the
program or be directed to an appropriate entry level training program, which
shall be at the Buyer’s expense.  Upon such withdrawal, the Seller shall deduct
the corresponding allowance from the total allowance for the applicable training
in accordance with the provisions set forth in Clause 16.4.3.2.

 

16.5.4                      The Seller shall in no case warrant or otherwise be
held liable for any trainee’s performance as a result of any training provided
hereunder.

 

16.6                         LOGISTICS

 

16.6.1                      Trainees

 

16.6.1.1                   When training is done at the Airbus Training Center
in Miami, Florida, the Seller shall provide a free-of-charge rental car for all
of the Buyer’s trainees for the duration of the training course on the basis of
one (1) rental car per four (4) maintenance, operations and cabin attendant
trainees and one (1) rental car per each flight crew.  The Seller shall provide
rental cars with unlimited mileage, and the Buyer shall pay for gas, and fines,
if any. However, the Buyer shall indemnify and hold the Seller harmless from and
against all liabilities, claims, damages, costs and expenses for any injury to
or death of any of the Buyer’s trainees occasioned during the course of such
transportation.

 

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16.6.1.2                   When training is done at the Airbus Training Center
in Blagnac, France, the Seller shall provide free local transportation by bus
for the Buyer’s trainees to and from designated pick up points and the training
center.

 

16.6.1.3                   Living expenses for the Buyer’s trainees are to be
borne by the Buyer.

 

16.6.1.4                   The Buyer shall be responsible for any
authorizations, permits and/or visas necessary for the Buyer’s trainees to
attend the training courses.  Rescheduling or cancellation of training courses
due to a Buyer’s trainee’s failure to obtain such authorizations, permits and/or
visas shall be subject to the provisions set forth in Clauses 16.4.3.1, 16.4.3.2
and 16.4.3.3. The Seller shall reasonably assist Buyer with such authorizations,
permits, and/or visas.

 

16.6.2                      Training at External Location

 

16.6.2.1                   If at the Buyer’s request, training is provided by
the Seller’s instructors at any location other than the Seller’s training
centers, the Buyer shall reimburse the Seller for all the expenses, as provided
below in Clauses 16.6.2.2, 16.6.2.3, 16.6.2.4 and 16.6.2.5 related to the
assignment of such instructors and their performance of the duties as aforesaid.

 

16.6.2.2                   Living Expenses for the Seller’s Instructors

 

Living expenses for the Seller’s Instructors, covering the entire period from
day of assignment to day of return to the Seller’s base, shall include but shall
not be limited to lodging, food and local transportation to and from the place
of lodging and the training course location. The Buyer shall reimburse the
Seller for such reasonable expenses.

 

16.6.2.3                   The Buyer shall reimburse the Seller for the
transportation costs of the Seller’s instructors in confirmed business class, to
and from the Buyer’s designated training site and the Seller’s training center.

 

16.6.2.4                   The Buyer shall reimburse the Seller for the cost of
shipping the training material needed to conduct such courses.

 

16.6.2.5                   The Buyer shall be solely liable for any and all
cancellation or delay in the performance of the training outside of the Seller’s
training centers that is associated with the transportation provided under
Clause 16.6.2.3 and shall indemnify and hold the Seller harmless from such delay
and any consequences arising there from. The Seller shall not be liable to the
Buyer for any delay or cancellation.

 

16.6.2.6                   Training Equipment Availability

 

Training equipment necessary for course performance at any course location other
than the Seller’s training centers or the facilities of the training provider
selected by

 

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the Seller shall be provided by the Buyer in accordance with the Seller’s
specifications.

 

16.7                         FLIGHT OPERATIONS TRAINING

 

16.7.1                      Flight Crew Training Course

 

16.7.1.1                   The Seller shall perform a flight crew training
course program as defined in Appendix A to this Clause 16, for the Buyer’s
flight crews.  A flight crew shall consist of two (2) crew members who shall be
either captains or first officers. Except for in-flight training, for which the
Buyer’s customized Flight Crew Operating Manual shall be used, the training
manual used for all flight crew training courses shall be the Seller’s Flight
Crew Operating Manual. If the Seller agrees to use the Buyer’s Flight Crew
Operating Manual for other flight crew training, the Buyer shall be responsible
for obtaining any necessary approvals required by applicable Aviation
Authorities and for any costs associated therewith, including time spent by any
ANACS instructor to achieve such approvals.

 

16.7.1.2                   The Buyer shall provide mutually agreed spare parts
as required to support said in-flight training and shall provide evidence of
insurance coverage in line with Clause 19.

 

16.7.1.3                   The Buyer shall use its delivered Aircraft for any
required in-flight training and shall pay all costs associated with such use. 
This training shall not exceed one (1) session of forty-five (45) minutes per
pilot.

 

16.7.1.4                   In all cases, the Buyer shall bear the expenses of
fuel, oil and landing fees.

 

16.7.2                      Flight Crew Line Initial Operating Experience

 

16.7.2.1                   In order to assist the Buyer with initial operating
experience after delivery of the first Aircraft, the Seller shall provide to the
Buyer pilot instructor(s) as set forth in Appendix A to this Clause 16. The
maximum number of Seller’s pilot instructors present at the Buyer’s site at one
time shall be limited to two (2).

 

16.7.2.2                   In addition to the number of pilots specified in
Paragraph 1.2 of Appendix A attached hereto, the Seller may provide pilot
instructors, at the Buyer’s expense, upon conditions to be mutually agreed.

 

16.7.2.3                   Prior to any flight training to be performed by the
Seller on the Buyer’s Aircraft, the Buyer shall provide to the Seller a copy of
the certificate of insurance as specified in Clause 19.

 

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16.7.3                      Instructor Cabin Attendants’ Familiarization Course

 

The Seller shall provide cabin attendants training in accordance with Appendix A
to this Clause 16.  The instructor cabin attendants’ course, when incorporating
the features of the Aircraft, shall be given no earlier than (2) weeks before
the scheduled Delivery Date of the first Aircraft of each type.

 

16.7.4                      Performance/Operations Course

 

The Seller shall provide performance/operations training for the Buyer’s
personnel as defined in Appendix A to this Clause 16.

 

The available courses are listed in the Seller’s applicable Training Course
Catalog.

 

16.7.5                      Airbus Pilot Instructor Course (APIC)

 

The Seller shall provide transition Airbus Pilot Instructor course(s) (APIC) for
the Buyer’s flight crew instructors, as defined in Appendix A to this Clause 16.

 

This course provides the Buyer’s pilots and/or instructors with the training in
both flight-instruction and synthetic-instruction required in order to enable
them to instruct on Airbus aircraft.

 

16.8                         MAINTENANCE TRAINING

 

The Seller shall provide maintenance training for the Buyer’s ground personnel
as defined in Appendix A to this Clause 16.

 

The available courses are listed in the applicable Training Course Catalog.

 

16.8.1                      Line Maintenance Initial Operating Experience
Training

 

In order to assist the Buyer during the entry into service of the Aircraft, the
Seller shall provide to the Buyer maintenance instructor(s) at the Buyer’s base
as defined in Appendix A to this Clause 16. The maximum number of instructors to
be assigned to Buyer’s base at one time shall be three (3).

 

16.8.1.1                   This line maintenance initial operating experience
training shall cover training in handling and servicing of Aircraft, flight crew
and maintenance coordination, use of Technical Data and/or any other activities
which may be deemed necessary after delivery of the first Aircraft.

 

16.8.1.2                   The Buyer shall reimburse the expenses for said
instructor(s) in accordance with Clause 16.6.2. Additional maintenance
instructors can be provided at the Buyer’s expense.

 

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16.9                         SUPPLIER AND ENGINE MANUFACTURER TRAINING

 

Upon the Buyer’s request, the Seller shall provide to the Buyer a list of the
courses provided by major Suppliers and the applicable Propulsions Systems
manufacturer relating to their products.

 

16.10                       TRAINING AIDS FOR THE BUYER’S TRAINING ORGANIZATION

 

16.10.1                    The Seller shall provide to the Buyer the Airbus
Advanced Computer Based Training (“Airbus Advanced CBT”).  The Airbus Advanced
CBT shall be subject to Buyer’s execution of appropriate agreements for the
license and use of Airbus Advanced CBT.  The detailed description of the Airbus
Advanced CBT and related training aids shall be provided at the Training
Conference.

 

16.10.2                    The Seller shall deliver the Airbus Advanced CBT and
training aids, at a date to be mutually agreed during the Training Conference.

 

The items supplied to the Buyer pursuant to Clause 16.10.1 shall be delivered
FCA Toulouse, Blagnac Airport. Title to and risk of loss of said items shall
pass to the Buyer upon delivery thereof.

 

16.10.3                    Installation of the Airbus Advanced CBT

 

16.10.3.1                 Before the initial delivery of the Airbus Advanced CBT
system, the Seller shall provide to up to six (6) trainees of the Buyer, at the
Buyer’s facilities, a training course, the “Airbus CBT Administrator Course”,
enabling the Buyer to load and use the Airbus Advanced CBT system either on
stand-alone workstations or by way of the Buyer’s server. To conduct the course,
the Buyer shall ensure that the workstations and/or servers, as applicable,
shall be ready for use and shall comply with the latest Airbus CBT Workstation
Technical Specification or Airbus CBT Server Technical Specification, as
applicable (collectively, the “Airbus CBT Technical Specification”).

 

16.10.3.2.                The Airbus Advanced CBT System shall be installed by
the Buyer’s personnel who have completed the Airbus CBT Administrator Course.
The Seller shall be held harmless from any injury to person and/or damage to
property caused by or in any way connected with the handling and/or installation
of the Airbus CBT by the Buyer’s personnel.

 

Upon the Buyer’s request and subject to conditions to be quoted by the Seller,
the Seller may assist the Buyer with the initial installation of the Airbus CBT
System at the Buyer’s facilities. Such assistance shall follow notification in
writing that the various components, which shall be in accordance with the
specifications defined in the Airbus CBT Technical Specification, are ready for
installation and available at the Buyer’s facilities.

 

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16.10.4

 

Airbus Advanced CBT License

 

 

 

16.10.4.1

 

The use of the Airbus Advanced CBT System a shall be subject to license
conditions defined in License For Use Of Airbus Computer Based Training,
attached as Appendix C to this Clause 16 (, (hereinafter the “License”).

 

 

 

 

 

Supply of sets of CBT Courseware, in excess of those indicated in Appendix A, as
well as any extension to the License, shall be subject to terms and conditions
to be mutually agreed.

 

 

 

16.10.5

 

Proprietary Rights

 

 

 

 

 

The Seller’s training data and documentation, including the Airbus Advanced CBT
System and other training aids are proprietary to Seller and/or its Affiliates
and the Buyer agrees not to disclose the content of any courseware,
documentation or other information relating thereto, in whole or in part, to any
third party without the prior written consent of the Seller.

 

 

 

16.10.6

 

Transferability

 

 

 

 

 

The Buyer’s rights under this Clause 16 will not be assigned, sold, transferred,
novated or otherwise alienated by operation of law or otherwise without the
Seller’s prior written consent thereto, which will not be unreasonably withheld.
Any unauthorized assignment, sale, transfer or other alienation of the Buyer’s
rights in violation of this Clause 16.10.7 will immediately be void and of no
effect.

 

TRAINING ALLOWANCES

 

[...***...]

 

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APPENDIX B TO CLAUSE 16

 

MINIMUM RECOMMENDED QUALIFICATION

 

IN RELATION TO TRAINING REQUIREMENTS

 

(Standard Transition Courses)

 

The prerequisites listed below are the minimum recommended requirements
specified for Airbus training. If the appropriate Aviation Authority or the
specific airline policy of the trainee demand greater or additional
requirements, such requirements shall be considered as prerequisites.

 

·                      

CAPTAIN prerequisites

 

 

·                      

Fluent in English

·                      

1500 hours minimum flying experience as pilot

·                      

1000 hours experience on FAR/JAR 25 aircraft

·                      

200 hours experience as airline, corporate pilot or military pilot

·                      

Must have flown transport type aircraft, as flying pilot, within the last 12
months.

 

·                      

FIRST OFFICER prerequisites

 

 

·                      

Fluent in English

·                      

500 hours minimum flying experience as pilot of fixed wing aircraft

·                      

300 hours experience on FAR/JAR 25 aircraft

·                      

200 hours flying experience as airline pilot or a corporate pilot or military
pilot

·                      

Must have flown transport type aircraft, as flying pilot, within the last 12
months.

·                      

For both CAPTAIN and FIRST OFFICER, if one or several of the above criteria are
not met, the trainee must follow

 

(i)                                                                                    
an adapted course or

 

(ii)                                                                                 
an Entry Level Training  (ELT) program before entering the regular or the
adapted course.

 

                                                                                               
Such course(s), if required, shall be at the Buyer’s expense.

 

·                      

FIRST TYPE RATING COURSE prerequisites

 

 

 

This course is designed for Ab initio pilots who do not hold an aircraft type
rating on their pilot license.

 

 

·                      

Valid and current commercial pilot license

·                      

Valid and current instrument rating on multi engine aircraft

·                      

ATPL written examination

 

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·                      

Fluent in English

·                      

220 hours flying experience as a pilot

·                      

100 hours flying experience as pilot-in-command (PIC)

·                      

25 hours experience on multi-engine aircraft (up to 10 hours can be completed in
a simulator

·                      

 

 

In addition to the above conditions and in accordance with the Airbus Training
Policy, a pilot applying for a first type rating must have followed a program
equivalent to the “Airbus Entry Level Training (ELT) program” (combined MCC and
Jet familiarization course).  Such course, if required, shall be at the Buyer’s
expense.

 

 

·                      

CCQ ADDITIONAL prerequisites

 

 

·                      

Captain or First officer prerequisites as applicable

·                      

Be qualified and current on the base aircraft type

·                      

150 hours minimum and 3 months minimum of operations on the base aircraft type

 

 

 

APIC COURSE Additional prerequisites

 

 

·                      

Captain or First Officer prerequisites as applicable

·                      

Knowledge, experience and skill suitable to an airline flight instructor

 

 

·                       

PERFORMANCE AND OPERATIONS prerequisites

 

 

·                      

Fluent in English

 

All other prerequisites, depending upon type of training course selected, shall
be provided by Seller to the Buyer during the Training Conference

 

 

·                      

MAINTENANCE PERSONNEL prerequisites

 

 

(i)

For all Maintenance courses:

 

 

 

Trainees must be fluent  in English and have technical experience in the line
and/or base maintenance of commercial jet aircraft

 

 

(ii)

For Aircraft Rigging Courses:

 

 

 

In addition to the Maintenance Personnel prerequisites in (i) above, trainees
must be qualified as line or line and base mechanic on one type of Airbus family
aircraft.

 

 

(iii)

For Maintenance Initial Operating Experience Courses:

 

 

 

In addition to the Maintenance Personnel prerequisites listed in (i) and
(ii) above, trainees must be qualified as line or line and base mechanic on the
Aircraft type.

 

 

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APPENDIX C TO CLAUSE 16

 

LICENSE FOR USE OF AIRBUS ADVANCED COMPUTER BASED TRAINING

 

1.

 

GRANT

 

 

 

 

 

The Seller grants the Buyer the right, pursuant to the terms and conditions
herein, to use the Airbus Advanced CBT System for the term (defined in Clause 4
below) of this license (the “License”).

 

 

 

2.

 

DEFINITIONS

 

 

 

2.1

 

For the purpose of this Appendix C to Clause 16, the following definitions shall
apply:

 

 

 

2.1.1

 

“Airbus CBT Courseware” means the programmed instructions that provide flight
crew and maintenance training.

 

 

 

2.1.2

 

“Airbus CBT Software” means the system software that permits the use of the
Airbus CBT Courseware.

 

 

 

2.1.3

 

“Airbus Advanced CBT System” means the combination of the Airbus CBT Software
and the Airbus CBT Courseware.

 

 

 

2.1.4

 

“Student/Instructor Mode” means the mode that allows the user to run the Airbus
CBT Courseware.

 

 

 

2.1.5

 

“Airbus CBT Training “ means the training enabling the Buyer to load and use the
Airbus Advanced CBT System.

 

 

 

2.1.6

 

“User Guide” means the documentation, which may be in electronic format designed
to assist the Buyer to use the Airbus Advanced CBT System.

 

 

 

2.2

 

For the purpose of clarification, it is hereby stated that all related hardware
required for the operation of the Airbus Advanced CBT System is not part of the
Airbus Advanced CBT System and shall be procured under the sole responsibility
of the Buyer.

 

 

 

3.

 

COPIES

 

 

 

3.1

 

The Buyer shall be permitted to copy the Airbus CBT Software for back-up and
archiving purposes and for loading of the Airbus CBT Software exclusively on the
Buyer’s workstations. In such cases, the Buyer shall advise the Seller in
writing stating the number and purpose of any copies made. Any other copying is
strictly prohibited.

 

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3.2

 

The Buyer shall be permitted to copy the Airbus CBT Courseware exclusively on
the Buyer’s workstations for sole purpose of the Buyer’s internal training. In
such cases, the Buyer shall advise the Seller in writing stating the number and
purpose of any copies made. Any other copying is strictly prohibited.

 

 

 

3.3

 

The Buyer agrees to reproduce the copyright and other notices as they appear on
or within the original media on any copies that the Buyer makes of the Airbus
CBT Software or the Airbus CBT Courseware. The Seller shall not provide revision
service for any copies generated.

 

 

 

4.

 

TERM

 

 

 

 

 

The rights under this License shall be granted to the Buyer for as long as the
Buyer operates the aircraft model to which the Airbus CBT Software and the
Airbus CBT courseware apply. When the Buyer stops operating said Aircraft model,
the Buyer shall return the Airbus Advanced CBT System and any copies thereof to
the Seller, accompanied by a note certifying that the Buyer has returned all
existing copies.

 

 

 

5.

 

PERSONAL ON-SITE LICENSE

 

 

 

5.1

 

The License granted herein is personal to the Buyer for use of the Airbus
Advanced CBT System within the Buyer’s premises only, and is nontransferable and
nonexclusive.

 

 

 

5.2.1

 

The Buyer may not (i) distribute or sublicense any portion of the Airbus
Advanced CBT System, (ii) modify or prepare derivative works from the Airbus CBT
Software, (iii) publicly display visual output of the Airbus CBT Software, or
(iv) transmit the Airbus CBT Software electronically by any means.

 

 

 

5.2.2

 

The Buyer shall use the Airbus Advanced CBT System exclusively in the technical
environment defined in the User Guide.

 

 

 

 

 

Notwithstanding the above, the right to use the Airbus Advanced CBT System on
the Buyer’s internal network installation is granted to the Buyer subject to the
Buyer strictly complying with the conditions of use and the confidentiality
commitments set forth in this Airbus CBT License.

 

 

 

6.

 

CONDITIONS OF USE

 

 

 

6.1

 

Use of the Airbus CBT Software

 

 

 

 

 

For the student delivery mode, the Buyer shall use the Airbus CBT Software for
the exclusive purpose of

 

 

 

(i)

 

including students on the roster for one or several courses syllabi in order to
follow students’ progression,

 

 

 

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(ii)

 

rearranging course syllabi or creating new ones using available courseware
modules, it being understood that the Seller disclaims any responsibility
regarding any course(s) that may be modified or rearranged by the Buyer.

 

 

 

6.2

 

Use of the Airbus CBT Courseware

 

 

 

 

 

The Buyer shall use the Airbus CBT Courseware for the exclusive purpose of
performing training instructions for its personnel, or for third party personnel
contracted to perform work on the Aircraft on behalf of the Buyer. Such training
shall be performed at the Buyer’s facility or at a subcontractor’s facility
provided it is conducted by the Buyer’s personnel.

 

 

 

7

 

PROPRIETARY RIGHTS AND NONDISCLOSURE

 

 

 

 

 

The Airbus CBT Software and Airbus CBT Courseware, the copyrights and any and
all other author rights, intellectual, commercial or industrial proprietary
rights of whatever nature in the Airbus CBT Software and Airbus CBT Courseware
are and shall remain with the Seller or its suppliers, as the case may be. The
Airbus CBT Software and Airbus CBT Courseware and their contents are designated
as confidential. The Buyer shall not take any commercial advantage by copy or
presentation to third parties of the Airbus CBT Software, the documentation, the
Airbus CBT Courseware, and/or any rearrangement, modification or copy thereof.

 

 

 

 

 

The Buyer acknowledges the Seller’s proprietary rights in the Airbus Advanced
CBT System and undertakes not to disclose the Airbus CBT Software or Airbus CBT
Courseware or parts thereof or their contents to any third party without the
prior written consent of the Seller. Insofar as it is necessary to disclose
aspects of the Airbus CBT Software and Airbus CBT Courseware to the Buyer’s
personnel, such disclosure is permitted only for the purpose for which the
Airbus CBT Software and Airbus CBT Courseware are supplied to the Buyer under
the License.

 

 

 

8.

 

LIMITED WARRANTY

 

 

 

8.1

 

The Seller warrants that the Airbus Advanced CBT System is prepared in
accordance with the state of the art at the date of its development. Should the
Airbus Advanced CBT System be found to contain any nonconformity or defect, the
Buyer shall notify the Seller promptly thereof and the sole and exclusive
liability of the Seller under this Clause 8.1 of the Airbus CBT License shall be
to correct the same at its own expense.

 

 

 

8.2

 

EXCLUSIVITY OF LIABILITY

 

 

 

 

 

THE WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE SELLER AND REMEDIES OF THE
BUYER SET FORTH IN THIS LICENSE AND IN THE PATENT AND COPYRIGHT INDEMNITY SET
FORTH IN CLAUSE 13

 

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OF THE AGREEMENT ARE EXCLUSIVE AND IN SUBSTITUTION FOR, AND THE BUYER HEREBY
WAIVES, RELEASES AND RENOUNCES, ALL OTHER WARRANTIES, OBLIGATIONS AND
LIABILITIES OF THE SELLER AND RIGHTS, CLAIMS AND REMEDIES OF THE BUYER AGAINST
THE SELLER, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE WITH RESPECT TO ANY
NONCONFORMITY OR DEFECT IN AIRBUS ADVANCED CBT SYSTEM DELIVERED UNDER THIS
LICENSE INCLUDING BUT NOT LIMITED TO:  APPENDIX C TO CLAUSE 16

 

ANY WARRANTY AGAINST HIDDEN DEFECTS;

 

ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

 

ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR
USAGE OF TRADE;

 

ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY, WHETHER CONTRACTUAL OR IN
TORT AND WHETHER OR NOT ARISING FROM THE SELLER’S NEGLIGENCE, ACTUAL OR IMPUTED;
AND

 

ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OR DAMAGE TO ANY
AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART THEREOF.

 

THE SELLER SHALL HAVE NO OBLIGATION OR LIABILITY, HOWSOEVER ARISING, FOR LOSS OF
USE, REVENUE OR PROFIT OR FOR ANY OTHER DIRECT, INCIDENTAL, OR CONSEQUENTIAL
DAMAGES WITH RESPECT TO ANY NONCONFORMITY OR DEFECT IN THE AIRBUS ADVANCED CBT
SYSTEM DELIVERED UNDER THIS LICENSE.

 

FOR THE PURPOSES OF THIS CLAUSE 8.2, THE “SELLER” SHALL INCLUDE THE SELLER AND
ITS AFFILIATES.

 

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17 -

 

SUPPLIER PRODUCT SUPPORT

 

 

 

17.1

 

EQUIPMENT SUPPLIER PRODUCT SUPPORT AGREEMENTS

 

 

 

17.1.1

 

The Seller shall at no charge to the Buyer transfer to the Buyer the Supplier
Product Support Agreements transferable to the Buyer from Suppliers of seller
furnished equipment listed in the Specification. These agreements are based on
the “World Airlines and Suppliers Guide” and include Supplier commitments
contained in the Supplier Product Support Agreements, which include the
following:

 

 

 

(i)

 

Technical data and manuals required to operate, maintain, service and overhaul
the Supplier items that shall (a) be prepared in accordance with the provisions
of the applicable ATA Specification in accordance with Clause 14, (b) include
revision service, and (c) be published in the English language.

 

 

 

(ii)

 

Warranties and guarantees, including Suppliers’ standard warranties, and in the
case of Suppliers of landing gear, service life policies for selected landing
gear structures,

 

 

 

(iii)

 

Training to ensure efficient operation, maintenance and overhaul of the
Suppliers’ items for the Buyer’s instructors, shop and line service personnel,

 

 

 

(iv)

 

Spares data in compliance with ATA Specification 200 or 2000, initial
provisioning recommendations, spares and logistics service, including routine
and emergency deliveries, and

 

 

 

(v)

 

Technical service to assist the Buyer with maintenance, overhaul, repair,
operation and inspection of Supplier items as well as required tooling and
spares provisioning.

 

 

 

17.2

 

SUPPLIER COMPLIANCE

 

 

 

 

 

The Seller shall monitor Supplier compliance with support commitments defined in
the Supplier Product Support Agreements.

 

 

 

17.3

 

SUPPLIER PART REPAIR STATIONS

 

 

 

 

 

The Seller has developed with the Suppliers a comprehensive network of repair
stations in the United States of America and Canada for those Supplier Parts
originating from outside these countries. As a result, most Supplier Parts are
repairable in the United States and Canada. The repair stations in the network
are listed in the AOG and Repair Guide.

 

 

 

 

 

Supplier Parts that have to be forwarded to a repair station for repair shall be
sent back to the Buyer with proper tagging as required by the FAA.

 

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18 -

 

BUYER FURNISHED EQUIPMENT

 

 

 

18.1

 

ADMINISTRATION

 

 

 

18.1.1

 

Without additional charge, the Seller shall install the Buyer Furnished
Equipment (“BFE”) budgeted in accordance with the Specification, provided that
the BFE is included in the Airbus BFE Catalog of Approved Suppliers by Products
valid at the time the BFE is ordered.

 

 

 

 

 

The Seller shall advise the Buyer of the dates by which, in the planned release
of engineering for the Aircraft, the Seller requires a written detailed
engineering definition, (the “BFE Definition”). The BFE Definition shall include
the dimensions and weight of BFE, the information related to its certification
and information necessary for the installation and operation thereof. The Buyer
shall furnish such BFE Definition by the dates specified. Thereafter, no
information, dimensions or weights shall be revised except by an SCN executed in
accordance with Clause 2.

 

 

 

 

 

The Seller shall also provide the Buyer in due time with a schedule of dates and
shipping addresses for delivery of BFE, including, additional spare BFE (if such
spare BFE has been requested by the Seller) in order to permit installation of
the BFE in the Aircraft and delivery of the Aircraft in accordance with the
delivery schedule. The Buyer shall provide the BFE by such dates in a
serviceable condition, to allow performance of any assembly, test, or acceptance
process in accordance with the Seller’s industrial schedule.

 

 

 

 

 

The Buyer shall also arrange, when requested by the Seller, at the Seller’s
facilities in Toulouse, France or Hamburg, Germany as applicable and needed,
adequate field service, including support from BFE suppliers to act in a
technical advisory capacity to the Seller in the installation, calibration and
possible repair of any BFE.

 

 

 

18.1.2

 

The BFE shall be imported into France or into Germany by the Buyer under a
suspensive customs system (“Régime de l’entrepôt industriel pour fabrication
coordonnée” or “Zollverschluss”) without application of any French or German tax
or customs duty, and shall be Delivered Duty Unpaid (DDU) (as defined in
Incoterms 2000:ICC Official Rules for the Interpretation of Trade Terms,
published by the International Chamber of Commerce), to

 

 

 

 

 

AIRBUS FRANCE S.A.S.

 

 

316 Route de Bayonne

 

 

31300 TOULOUSE

 

 

FRANCE

 

 

 

 

 

or

 

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AIRBUS DEUTSCHLAND GMBH

 

 

Division Hamburger Flugzeugbau

 

 

Kreetslag 10

 

 

21129 HAMBURG

 

 

GERMANY

 

 

 

18.1.3

 

If the Buyer requests the Seller to supply directly certain items that are
considered BFE according to the Specification, and if such request is notified
to the Seller in due time in order not to affect the Delivery Date of the
Aircraft, the Seller may agree to order such items under the terms of a separate
agreement entered into between the Buyer and the relevant BFE Supplier subject
to the execution of an SCN reflecting the effect on price, escalation
adjustment, and any other conditions hereof. In such case the Seller shall be
entitled to the payment of a reasonable handling charge and shall bear no
liability in respect of delay and product support commitments for such items.

 

 

 

18.2

 

REQUIREMENTS

 

 

 

 

 

The Buyer hereby warrants that BFE shall (i) be manufactured by a qualified
supplier in accordance with the provisions of Clause 18.1.1, (ii) meet the
requirements of the applicable Specification, (iii) comply with applicable
requirements incorporated by reference to the Type Certificate and listed in the
Type Certificate Data Sheet, and (iv) be approved by the applicable Aviation
Authority delivering the Export Certificate of Airworthiness and by the Buyer’s
Aviation Authority for installation and use on the Aircraft at the time of
Delivery of such Aircraft. The Seller shall be entitled to refuse any item of
BFE that it reasonably considers incompatible with the Specification, the BFE
Definition or the certification requirements.

 

 

 

18.3

 

BUYER’S OBLIGATION AND SELLER’S REMEDIES

 

 

 

18.3.1

 

Any delay or failure in

 

 

 

(i)

 

furnishing the BFE in serviceable condition at the requested delivery date,

 

 

 

(ii)

 

complying with the warranty in Clause 18.2 or in providing the BFE Definition or
field service support mentioned in Clause 18.1.1, or

 

 

 

(iii)

 

in obtaining any required approval for such equipment under the above mentioned
Aviation Authority’s regulations may delay the performance of any act to be
performed by the Seller and cause the Final Contract Price of the Aircraft to be
adjusted in accordance with the updated delivery schedule, and result in
additional costs to be incurred by the Seller. Any

 

 

 

 

 

 

 

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costs the Seller incurs that are attributable to the delay or failure described
above, such as storage, taxes, insurance and costs of out-of sequence
installation shall be borne by the Buyer.

 

 

 

18.3.2

 

In addition to the consequences outlined in Clause 18.3.1, in the event of a
delay or failure described in Clause 18.3.1,

 

 

 

(i)

 

To the extent necessary to make the affected Aircraft Ready for Delivery, the
Seller may select, purchase and install equipment similar to the BFE at issue,
in which event the Final Contract Price of the affected Aircraft shall also be
increased by the purchase price of such equipment, and the Buyer shall be
responsible for the reasonable costs and expenses incurred by the Seller for
handling charges, transportation, insurance, packaging and, if required and not
already provided for in the price of the Aircraft, for adjustment and
calibration; or

 

 

 

(ii)

 

if the BFE is delayed more than thirty (30) days beyond, or unapproved within
thirty (30) days of the date specified in Clause 18.1.1, then the Seller may
deliver or the Buyer may elect to have the Aircraft delivered without the
installation of such equipment, notwithstanding the terms of Clause 7.2 insofar
as such terms may otherwise have applied, whereon the Seller shall be relieved
of all obligations to install such equipment.

 

 

 

18.4

 

TITLE AND RISK OF LOSS

 

 

 

 

 

Title to and risk of loss of BFE shall at all times remain with the Buyer,
except that risk of loss (limited to cost of replacement of said BFE and
excluding in particular loss of use) shall be with the Seller for as long as the
BFE is in the care, custody and control of the Seller.

 

 

 

18.5

 

DISPOSITION OF BFE FOLLOWING TERMINATION

 

 

 

18.5.1

 

If a termination of this Agreement pursuant to the provisions of Clause 21
occurs with respect to an Aircraft in which all or any part of the BFE has been
installed prior to the date of such termination, the Seller shall be entitled,
but not required, to remove all items of BFE that can be removed without damage
to the Aircraft and to undertake commercially reasonable efforts to facilitate
the sale of such items of BFE to other customers, retaining and applying the
proceeds of such sales to reduce Seller’s damages resulting from the
termination.

 

 

 

18.5.2

 

The Buyer shall cooperate with the Seller in facilitating the sale of BFE
pursuant to Clause 18.5.1 and shall be responsible for all reasonable costs
incurred by the Seller in removing and facilitating the sale of such BFE. The
Buyer shall reimburse the Seller for all such costs within five (5) Business
Days of receiving documentation of such costs from the Seller.

 

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18.5.3

 

The Seller shall notify the Buyer as to those items of BFE not sold by the
Seller pursuant to Clause 18.5.1 above and, at the Seller’s request, the Buyer
shall undertake to remove such items from the Seller’ facility within thirty
(30) days of the date of such notice. The Buyer shall have no claim against the
Seller for damage or destruction of any item of BFE removed from the Aircraft
and not removed from Seller’s facility within such period.

 

 

 

18.5.4

 

The Buyer shall have no claim against the Seller for damage to or destruction of
any item of BFE damaged or destroyed in the process of being deinstalled from
the Aircraft, provided that the Seller shall use reasonable care in such
deinstallation.

 

 

 

18.5.5

 

The Buyer shall grant title to the Seller for any BFE items that cannot be
removed from the Aircraft without causing damage to the Aircraft or rendering
any system in the Aircraft unusable.

 

 

 

19 -

 

INDEMNITIES AND INSURANCE

 

 

 

 

 

The Seller and the Buyer shall each be liable for Losses (as defined below)
arising from the acts or omissions of their respective directors, officers,
agents or employees occurring during or incidental to such party’s exercise of
its rights and performance of its obligations under this Agreement, except as
provided in Clauses 19.1 and 19.2.

 

 

 

19.1

 

SELLER’S INDEMNITIES

 

 

 

 

 

The Seller shall, except in the case of gross negligence or willful misconduct
of the Buyer, its directors, officers, agents and/or employees, be solely liable
for and shall indemnify and hold the Buyer, its Affiliates and each of their
respective directors, officers, agents, employees and insurers harmless against
all losses, liabilities, claims, damages, costs and expenses, including court
costs and reasonable attorneys’ fees (“Losses”), arising from:

 

 

 

(a)

 

claims for injuries to, or death of, the Seller’s directors, officers, agents or
employees, or loss of, or damage to, property of the Seller or its employees
when such Losses occur during or are incidental to either party’s exercise of
any right or performance of any obligation under this Agreement, and

 

 

 

(b)

 

claims for injuries to, or death of, third parties, or loss of, or damage to,
property of third parties, occurring during or incidental to (i) the Buyer’s
exercise of its rights under Clause 6 and (ii) the flights during the Technical
Acceptance Process.

 

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19.2

 

BUYER’S INDEMNITIES

 

 

 

 

 

The Buyer shall, except in the case of gross negligence or willful misconduct of
the Seller, its directors, officers, agents and/or employees, be solely liable
for and shall indemnify and hold the Seller, its Affiliates, its subcontractors,
and each of their respective directors, officers, agents, employees and
insurers, harmless against all Losses arising from:

 

 

 

(a)

 

claims for injuries to, or death of, the Buyer’s directors, officers, agents or
employees, or loss of, or damage to, property of the Buyer or its employees,
when such Losses occur during or are incidental to either party’s exercise of
any right or performance of any obligation under this Agreement, and

 

 

 

(b)

 

claims for injuries to, or death of, third parties, or loss of, or damage to,
property of third parties, occurring during or incidental to (i) the provision
of Seller Representatives services under Clause 15 or (ii) the provision of
Aircraft Training Services to the Buyer.

 

 

 

19.3

 

NOTICE AND DEFENSE OF CLAIMS

 

 

 

 

 

If any claim is made or suit is brought against a party or entity entitled to
indemnification under this Clause 19 (the “Indemnitee”) for damages for which
liability has been assumed by the other party under this Clause 19 (the
“Indemnitor”), the Indemnitee shall promptly give notice to the Indemnitor and
the Indemnitor (unless otherwise requested by the Indemnitee) shall assume and
conduct the defense, or settlement, of such claim or suit, as the Indemnitor
shall deem prudent. Notice of the claim or suit shall be accompanied by all
information pertinent to the matter as is reasonably available to the Indemnitee
and shall be followed by such cooperation by the Indemnitee as the Indemnitor or
its counsel may reasonably request, at the expense of the Indemnitor.

 

 

 

 

 

If the Indemnitor fails or refuses to assume the defense of any claim or suit
notified to it under this Clause 19, the Indemnitee shall have the right to
proceed with the defense or settlement of the claim or suit as it deems prudent
and shall have a claim against the Indemnitor for any judgments, settlements,
costs or expenses, including reasonable attorneys’ fees. Further, in such event,
the Indemnitor shall be deemed to have waived any objection or defense to the
Indemnitee’s claim based on the reasonableness of any settlement.

 

 

 

19.4

 

INSURANCE

 

 

 

 

 

For all Aircraft Training Services, to the extent of the Buyer’s undertaking set
forth in Clause 19.2, the Buyer shall:

 

 

 

(a)

 

cause the Seller, its Affiliates, its subcontractors and each of their
respective directors, officers, agents and employees to be named as additional
insured under the Buyer’s Aviation Legal Liability insurance policies, including
War Risks and Allied Perils (such insurance to include the AVN 52E Extended
Coverage

 

 

 

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Endorsement or any further Endorsement replacing AVN 52E as may be available as
well as any excess coverage in respect of War and Allied Perils Third Parties
Legal Liabilities Insurance or War Risks insurance as may be obtained by the
Buyer from the US Government pursuant to Chapter 443 insurance as amended from
time to time), and

 

 

 

(b)

 

with respect to the Buyer’s Hull All Risks and Hull War Risks insurances and
Allied Perils, cause the insurers of the Buyer’s hull insurance policies to
waive all rights of subrogation against the Seller, its Affiliates, its
subcontractors and each of their respective directors, officers, agents,
employees and insurers.

 

 

 

 

 

Any applicable deductible shall be borne by the Buyer. The Buyer shall furnish
to the Seller, not less than
seven (7) working days prior to the start of any Aircraft Training Services,
certificates of insurance, in English, evidencing the limits of liability cover
and period of insurance coverage in a form acceptable to the Seller from the
Buyer’s insurance broker(s), certifying that such policies have been endorsed as
follows:

 

 

 

(i)

 

under the Aviation Legal Liability Insurances, the Buyer’s policies are primary
and non-contributory to any insurance maintained by the Seller,

 

 

 

(ii)

 

such insurance can only be cancelled or materially altered by the giving of not
less than thirty (30) days (but seven (7) days or such lesser period as may be
customarily available in respect of War Risks and Allied Perils) prior written
notice thereof to the Seller, and

 

 

 

(iii)

 

under any such cover, all rights of subrogation against the Seller, its
Affiliates, its subcontractors and each of their respective directors, officers,
agents, employees and insurers have been waived.

 

 

 

20 -

 

ASSIGNMENTS AND TRANSFERS

 

 

 

20.1

 

ASSIGNMENTS BY BUYER

 

 

 

 

 

Except as hereinafter provided, the Buyer may not sell, assign or transfer its
rights or obligations under this Agreement to any person without the prior
written consent of the Seller.

 

 

 

20.2

 

ASSIGNMENTS ON SALE, MERGER OR CONSOLIDATION

 

 

 

 

 

The Buyer shall be entitled to assign its rights under this Agreement at any
time due to a merger, consolidation or a sale of all or substantially all of its
assets, provided the Buyer first obtains the written consent of the Seller. The
Buyer shall provide the Seller with no less than 90 days notice if the Buyer
wishes the Seller to provide such consent. The Seller shall provide its consent
if

 

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(i)

 

the surviving or acquiring entity is organized and existing under the laws of
the United States;

 

 

 

(ii)

 

the surviving or acquiring entity has executed an assumption agreement, in form
and substance reasonably acceptable to the Seller, agreeing to assume all of the
Buyer’s obligations under this Agreement;

 

 

 

(iii)

 

at the time, and immediately following the consummation, of the merger,
consolidation or sale, no event of default exists or shall have occurred and be
continuing;

 

 

 

(iv)

 

there exists with respect to the surviving or acquiring entity no basis for a
Buyer Termination Event;

 

 

 

(v)

 

the surviving or acquiring entity, or a subsidiary of either, is an airline
holding an operating certificate issued by the FAA at the time, and immediately
following the consummation, of such sale, merger or consolidation; and

 

 

 

(vi)

 

following the sale, merger or consolidation, the surviving or acquiring entity
is in a financial condition at least equal to that of the Buyer at time of
execution of the Agreement.

 

 

 

20.3

 

DESIGNATIONS BY SELLER

 

 

 

 

 

The Seller may at any time by notice to the Buyer designate facilities or
personnel of ANACS or any Affiliate of the Seller at which or by whom the
services to be performed under this Agreement shall be performed.
Notwithstanding such designation, the Seller shall remain ultimately responsible
for fulfillment of all obligations undertaken by the Seller in this Agreement.

 

 

 

20.4

 

TRANSFER OF RIGHTS AND OBLIGATIONS UPON REORGANIZATION

 

 

 

 

 

In the event that the Seller is subject to a corporate restructuring having as
its object the transfer of, or succession by operation of law in, all or a
substantial part of its assets and liabilities, rights and obligations,
including those existing under this Agreement, to a person (the “Successor”)
that is an Affiliate of the Seller at the time of that restructuring, for the
purpose of the Successor carrying on the business carried on by the Seller at
the time of the restructuring, such restructuring shall be completed without
consent of the Buyer following notification by the Seller to the Buyer in
writing. The Buyer recognizes that succession of the Successor to the Agreement
by operation of law that is valid under the law pursuant to which that
succession occurs shall be binding upon the Buyer.

 

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20.5

 

Cape Town Convention

 

 

 

 

 

Regarding the Cape Town Treaty, the Buyer agrees that it will not and it will
not permit any lender or financier financing either Aircraft or Predelivery
Payments to register any interests in any undelivered Aircraft or in any
Propulsion Systems installed thereon at the International Registry in connection
with such financing.

 

 

 

21 -

 

TERMINATION

 

 

 

21.1

 

TERMINATION EVENTS

 

 

 

 

 

Each of the following will constitute a “Termination Event”

 

 

 

[***]

 

 

 

 

 

21.2

 

REMEDIES IN EVENT OF TERMINATION

 

 

 

 

 

If a Termination Event occurs, the Buyer will be in material breach of this
Agreement, and the Seller will have the right to resort to any remedy under
applicable law, and may, without limitation, by written notice to the Buyer,
immediately:

 

 

 

(1)

 

SUSPEND ITS PERFORMANCE UNDER THIS AGREEMENT WITH RESPECT TO ANY OR ALL
AIRCRAFT, (II) WITHOUT PREJUDICE TO SELLER’S OPTION TO EXERCISE ITS RIGHTS UNDER
CLAUSE 5.8.2, RESCHEDULE THE SCHEDULED DELIVERY MONTH OF ANY OR ALL AIRCRAFT
REMAINING TO BE DELIVERED UNDER THIS AGREEMENT, (III) RESCHEDULE THE DATE FOR
PERFORMANCE UNDER THIS AGREEMENT WITH RESPECT TO ANY OR ALL EQUIPMENT, SERVICES,
DATA AND OTHER ITEMS, AND/OR (IV) CANCEL OR TERMINATE THIS AGREEMENT (A
“TERMINATION”) WITH RESPECT TO ANY OR ALL AIRCRAFT, AND/OR EQUIPMENT, SERVICES,
DATA AND/OR OTHER ITEMS RELATED THERETO; AND

 

 

 

(2)

 

CLAIM AND RECEIVE PAYMENT FROM THE BUYER OF A SUM EQUAL TO SELLER’S ACTUAL
DAMAGES INCURRED BY SELLER’S EXERCISE OF THE REMEDIES SET FORTH IN CLAUSE 21.2
(1) (I), (II) OR (III) AND, IN THE CASE OF A TERMINATION UNDER CLAUSE 21.2
(1) (IV) ONLY, THE SELLER WILL, IN LIEU OF ACTUAL DAMAGES, BE ENTITLED TO
RECEIVE PAYMENT FROM THE BUYER, AS LIQUIDATED DAMAGES AND NOT AS A PENALTY, AN
AMOUNT EQUAL TO, FOR EACH AFFECTED AIRCRAFT (AS DEFINED BELOW), THE SUM OF:

 

 

 

[***]

 

 

 

 

 

21.3

 

DEFINITIONS

 

 

 

 

 

FOR PURPOSES OF THIS CLAUSE 21, THE TERMS “AFFECTED AIRCRAFT”, “APPLICABLE DATE
AND “ESCALATED PRICE” ARE DEFINED AS FOLLOWS:

 

 

 

(I)

 

“AFFECTED AIRCRAFT” – ANY OR ALL AIRCRAFT WITH RESPECT TO WHICH THE SELLER HAS
CANCELLED OR TERMINATED THIS AGREEMENT PURSUANT TO CLAUSE 21. 2 (1) (IV),

 

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(II)                                                                         
“APPLICABLE DATE” – FOR ANY AFFECTED AIRCRAFT THE DATE OF THE TERMINATION EVENT
SPECIFIED IN THE SELLER’S NOTICE AND DEMAND FOR PAYMENT OF LIQUIDATED DAMAGES
DELIVERED UNDER CLAUSE 21.2(3).

 

(III)                                                                      
“ESCALATED PRICE” - THE SUM OF (I) THE BASE PRICE OF THE AIRFRAME, (II) THE BASE
PRICE OF SCNS AND MSCNS ENTERED INTO AFTER THE DATE OF THIS AGREEMENT, AND
(III) THE PROPULSION SYSTEMS REFERENCE PRICE, ALL AS ESCALATED TO THE APPLICABLE
DATE IN ACCORDANCE WITH THE PROVISIONS OF CLAUSE 4.

 

21.4.                                                                       
NOTICE OF TERMINATION EVENT

 

PROMPTLY UPON BECOMING AWARE OF THE OCCURRENCE OF A TERMINATION EVENT BY THE
BUYER, THE BUYER WILL NOTIFY THE SELLER OF SUCH OCCURRENCE IN WRITING, PROVIDED,
THAT ANY FAILURE BY THE BUYER TO NOTIFY THE SELLER WILL NOT PREJUDICE THE
SELLER’S RIGHTS OR REMEDIES HEREUNDER.

 

21.5                                                                          
INFORMATION COVENANTS

 

The Buyer hereby covenants and agrees that, from the date of this Agreement
until no further Aircraft are to be delivered hereunder, the Buyer will furnish
or cause to be furnished to the Seller the following:

 

(a)                                                                                 
Annual Financial Statements.  As soon as available and in any event no later
than the date that the Buyer furnishes such annual statements to the Securities
and Exchange Commission or successor thereto (the “SEC”) (i) a copy of the SEC
Form 10-K filed by the Buyer with the SEC for such fiscal year, or, if no such
Form 10-K was filed by the Buyer for such a fiscal year, the consolidated
balance sheet of the Buyer and its Subsidiaries, as at the end of such fiscal
year and the related consolidated statements of operations, of common
stockholders’ equity (deficit) (in the case of the Buyer and its Subsidiaries)
and of cash flows for such fiscal year, setting forth comparative consolidated
figures as of the end of and for the preceding fiscal year, and examined by any
firm of independent public accountants of recognized standing selected by the
Buyer and reasonably acceptable to the Seller, whose opinion will not be
qualified as to the scope of audit or as to the status of the Buyer as a going
concern, and (ii) a certificate of such accounting firm stating that  its  audit
of the business of the Buyer was conducted in accordance with generally accepted
auditing standards.

 

(b)                                                                                
Quarterly Financial Statements.  As soon as available and in any event no later
than the date that the Buyer furnishes such quarterly statements to the
Securities and Exchange Commission or successor thereto, a copy of the SEC
Form 10-Q filed by the Buyer with the SEC for such quarterly period, or, if no
such Form 10-Q was filed by the Buyer with respect to any such quarterly period,
the consolidated balance sheet of the Buyer and its Subsidiaries, as at the end
of such quarterly period and the related consolidated statements of operations
for such quarterly period and for the  elapsed portion of the fiscal year ended
with the last

 

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day of such quarterly period and in each case setting forth comparative
consolidated figures as of the end of and for the related periods in the prior
fiscal year, all of which will be certified by an Authorized Officer of the
Buyer, subject to changes resulting from audit and normal year-end audit
adjustments.

 

(c)                                                                                 
Debt Rescheduling.  (i) Promptly upon the Buyer commencing negotiations with one
or more of its significant creditors with a view to general readjustment or
rescheduling of all or any material part of its indebtedness under circumstances
in which a reasonable business person, in the exercise of prudent business
judgment, would conclude that the Buyer would otherwise not be able to pay such
indebtedness as it falls due, notice of commencement of such negotiations, and
(ii) thereafter timely advice of the progress of such negotiations until such
negotiations are terminated or completed.

 

(d)                                                                                
Acceleration of other indebtedness.  Immediately upon knowledge by the Buyer
that the holder of any bond, debenture, promissory note or any similar evidence
of indebtedness of the Buyer or Affiliate thereof (“Other Indebtedness”) has
demanded payment, given notice or exercised its right to a remedy having the
effect of acceleration with respect to a claimed event of default under any
Other Indebtedness, where the impact of the acceleration is likely to have a
material adverse effect on the Buyer’s ability to perform its obligations under
or in connection with the transactions contemplated by this Agreement, notice of
the demand made, notice given or action taken by such holder and the nature and
status of the claimed event of default and what the action the Buyer is taking
with respect thereto.

 

(e)                                                                                 
Other Information.  Promptly upon transmission thereof, copies of any filings
and registrations with, and reports to, the SEC by the Buyer or any of its
Subsidiaries, and, with reasonable promptness, such other information or
documents (financial or otherwise) as the Seller may reasonably request from
time to time.

 

For the purposes of this Clause 21, (x) an “Authorized Officer” of the Buyer
will mean the Chief Executive Officer, the Chief Financial Officer or any Vice
President and above who reports directly or indirectly to the Chief Financial
Officer and (y) “Subsidiaries” will mean, as of any date of determination, those
companies owned by the Buyer whose financial results the Buyer is required to
include in its statements of consolidated operations and consolidated balance
sheets.

 

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22 -                                                                            
MISCELLANEOUS PROVISIONS

 

22.1                                                                          
DATA RETRIEVAL

 

                                                                                               
On the Seller’s reasonable request, the Buyer shall provide the Seller with all
the necessary data, as customarily compiled by the Buyer and pertaining to the
operation of the Aircraft, to assist the Seller in making an efficient and
coordinated survey of all reliability, maintenance, operational and cost data
with a view to improving the safety, availability and operational costs of the
Aircraft.

 

22.2                                                                          
NOTICES

 

                                                                                               
All notices and requests required or authorized hereunder shall be given in
writing either by personal delivery to a responsible officer of the party to
whom the same is given or by commercial courier, certified air mail (return
receipt requested) or facsimile at the addresses and numbers set forth below. 
The date on which any such notice or request is so personally delivered, or if
such notice or request is given by commercial courier, certified air mail or
facsimile, the date on which sent, shall be deemed to be the effective date of
such notice or request.

 

The Seller shall be addressed at:

 

1, rond-point Maurice Bellonte

31700 Blagnac, France

Attention:  Director – Contracts

 

Telephone: 33 05 61 30 40 12

Telecopy:   33 05 61 30 40 11

 

The Buyer shall be addressed at:

 

3375 Koapaka Street, Suite G-350

Honolulu, Hawaii 96819

USA

Attention: Executive Vice President and Chief Financial Officer

Attention: Executive Vice President and General Counsel

 

Telephone: (+1-808) 835-3700

Telecopy:  (+1-808) 835-3695

 

                                                                                               
From time to time, the party receiving the notice or request may designate
another address or another person.

 

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22.3

 

WAIVER

 

 

 

 

 

The failure of either party to enforce at any time any of the provisions of this
Agreement, to exercise any right herein provided or to require at any time
performance by the other party of any of the provisions hereof shall in no way
be construed to be a present or future waiver of such provisions nor in any way
to affect the validity of this Agreement or any part hereof or the right of the
other party thereafter to enforce each and every such provision. The express
waiver by either party of any provision, condition or requirement of this
Agreement shall not constitute a waiver of any future obligation to comply with
such provision, condition or requirement.

 

 

 

22.4

 

INTERNATIONAL SUPPLY CONTRACT

 

 

 

 

 

The Buyer and the Seller recognize that this Agreement is an international
supply contract which has been the subject of discussion and negotiation, that
all its terms and conditions are fully understood by the parties, and that the
Specification and price of the Aircraft and the other mutual agreements of the
parties set forth hereof were arrived at in consideration of, inter alia, all
the provisions hereof specifically including all waivers, releases and
remunerations by the Buyer set out herein.

 

 

 

22.5

 

CERTAIN REPRESENTATIONS OF THE PARTIES

 

 

 

22.5.1

 

Buyer’s Representations

 

 

 

 

 

The Buyer represents and warrants to the Seller:

 

 

 

(i)

 

the Buyer is a corporation organized and existing in good standing under the
laws of the State of Delaware and has the corporate power and authority to enter
into and perform its obligations under this Agreement;

 

 

 

(ii)

 

neither the execution and delivery by the Buyer of this Agreement, nor the
consummation of any of the transactions by the Buyer contemplated thereby, nor
the performance by the Buyer of the obligations thereunder, constitutes a breach
of any agreement to which the Buyer is a party or by which its assets are bound;

 

 

 

(iii)

 

this Agreement has been duly authorized, executed and delivered by the Buyer and
constitutes the legal, valid and binding obligation of the Buyer enforceable
against the Buyer in accordance with its terms.

 

 

 

22.5.2

 

Seller’s Representations

 

 

 

 

 

The Seller represents and warrants to the Buyer:

 

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(I)                            THE SELLER IS ORGANIZED AND EXISTING IN GOOD
STANDING UNDER THE LAWS OF THE REPUBLIC OF FRANCE AND HAS THE CORPORATE POWER
AND AUTHORITY TO ENTER INTO AND PERFORM ITS OBLIGATIONS UNDER THE AGREEMENT;

 

(II)                           NEITHER THE EXECUTION AND DELIVERY BY THE SELLER
OF THIS AGREEMENT, NOR THE CONSUMMATION OF ANY OF THE TRANSACTIONS BY THE SELLER
CONTEMPLATED THEREBY, NOR THE PERFORMANCE BY THE SELLER OF THE OBLIGATIONS THERE
UNDER, CONSTITUTES A BREACH OF ANY AGREEMENT TO WHICH THE SELLER IS A PARTY OR
BY WHICH ITS ASSETS ARE BOUND;

 

(III)                          THIS AGREEMENT HAS BEEN DULY AUTHORIZED, EXECUTED
AND DELIVERED BY THE SELLER AND CONSTITUTES THE LEGAL, VALID AND BINDING
OBLIGATION OF THE SELLER ENFORCEABLE AGAINST THE SELLER IN ACCORDANCE WITH ITS
TERMS.

 

22.6                         INTERPRETATION AND LAW

 

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND THE PERFORMANCE THEREOF
SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT GIVING EFFECT TO ITS CONFLICTS OF LAWS PROVISIONS THAT WOULD RESULT IN
THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

 

EACH OF THE SELLER AND THE BUYER (I) HEREBY IRREVOCABLY SUBMITS ITSELF TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, NEW YORK
COUNTY, OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK, IN EITHER CASE LOCATED IN THE BOROUGH OF MANHATTAN, FOR THE PURPOSES OF
ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, THE SUBJECT
MATTER HEREOF OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY BROUGHT BY ANY
PARTY OR PARTIES HERETO, AND (II) HEREBY WAIVES, AND AGREES NOT TO ASSERT, BY
WAY OF MOTION, AS A DEFENSE OR OTHERWISE, IN ANY SUCH SUIT, ACTION OR
PROCEEDING, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY DEFENSE BASED ON
SOVEREIGN OR OTHER IMMUNITY OR THAT THE SUIT, ACTION OR PROCEEDING WHICH IS
REFERRED TO IN CLAUSE (I) ABOVE IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE
VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER, OR THAT THIS AGREEMENT OR
THE SUBJECT MATTER HEREOF OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY MAY NOT
BE ENFORCED IN OR BY THESE COURTS.

 

THE PARTIES HEREBY ALSO AGREE THAT THE UNITED NATIONS CONVENTION ON CONTRACTS
FOR THE INTERNATIONAL SALE OF GOODS SHALL NOT APPLY TO THIS TRANSACTION.

 

22.6.1                      THE BUYER FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS
HEREBY DESIGNATES AND APPOINTS CT CORPORATION AS ITS LEGAL AGENT AND
ATTORNEY-IN-FACT UPON WHOM ALL PROCESSES AGAINST THE BUYER IN ANY SUIT, ACTION
OR PROCEEDING IN RESPECT OF ANY MATTER AS TO WHICH IT HAS SUBMITTED TO
JURISDICTION UNDER CLAUSE 22.6 MAY BE SERVED WITH THE SAME EFFECT AS IF THE
BUYER WERE A CORPORATION ORGANIZED UNDER THE LAWS OF THE STATE OF NEW YORK AND
HAD LAWFULLY BEEN SERVED WITH SUCH PROCESS IN SUCH STATE, IT

 

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being understood that such designation and appointments shall become effective
without further action on the part of  CT Corporation.

 

The Seller for itself and its successors and assigns hereby designates and
appoints CT Corporation as its legal agent and attorney-in-fact upon whom all
processes against the Seller in any suit, action or proceeding in respect of any
matter as to which it has submitted to jurisdiction under Clause 22.6 may be
served with the same effect as if the Seller were a corporation organized under
the laws of the State of New York and had lawfully been served with such process
in such state, it being understood that such designation and appointments shall
become effective without further action on the part of  CT Corporation.

 

22.6.2                      THE ASSUMPTIONS IN CLAUSE 22.6.1 MADE FOR THE
PURPOSE OF EFFECTING THE SERVICE OF PROCESS SHALL NOT AFFECT ANY ASSERTION OF
DIVERSITY BY EITHER PARTY HERETO INITIATING A PROCEEDING IN THE NEW YORK FEDERAL
COURTS OR SEEKING TRANSFER TO THE NEW YORK FEDERAL COURTS ON THE BASIS OF
DIVERSITY.

 

22.6.3                      SERVICE OF PROCESS IN ANY SUIT, ACTION OR PROCEEDING
IN RESPECT OF ANY MATTER AS TO WHICH THE SELLER OR THE BUYER HAS SUBMITTED TO
JURISDICTION UNDER CLAUSE 22.6 MAY BE MADE ON THE SELLER BY DELIVERY OF THE SAME
PERSONALLY OR BY DISPATCHING THE SAME VIA FEDERAL EXPRESS, UPS, OR SIMILAR
INTERNATIONAL AIR COURIER SERVICE PREPAID TO, CT CORPORATION, 111 EIGHTH AVENUE,
NEW YORK, NY  10011, AS AGENT FOR THE SELLER, IT BEING AGREED THAT SERVICE UPON
CT CORPORATION SHALL CONSTITUTE VALID SERVICE UPON THE SELLER OR BY ANY OTHER
METHOD AUTHORIZED BY THE LAWS OF THE STATE OF NEW YORK, AND (II) MAY BE MADE ON
THE BUYER BY DELIVERY OF THE SAME PERSONALLY OR BY DISPATCHING THE SAME BY
FEDERAL EXPRESS, UPS, OR SIMILAR INTERNATIONAL AIR COURIER SERVICE PREPAID,
RETURN RECEIPT REQUESTED TO:  CORPORATE SECRETARY, 3375 KOAPAKA STREET, STE.
G-350, HONOLULU, HAWAII, 96819, USA, OR BY ANY OTHER METHOD AUTHORIZED BY THE
LAWS OF THE STATE OF NEW YORK.

 

22.6.4                      HEADINGS

 

ALL HEADINGS IN THIS AGREEMENT ARE FOR CONVENIENCE OF REFERENCE ONLY AND DO NOT
CONSTITUTE A PART OF THIS AGREEMENT.

 

22.7                         WAIVER OF JURY TRIAL

 

EACH OF THE PARTIES HERETO WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY LITIGATION
ARISING OUT OF OR RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM OR
CROSS-CLAIM THEREIN.

 

22.8                         NO REPRESENTATIONS OUTSIDE OF THIS AGREEMENT

 

The parties declare that, prior to the execution of this Agreement, they, with
the advice of their respective counsel, apprised themselves of sufficient
relevant data

 

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in order that they might intelligently exercise their own judgments in deciding
whether to execute this Agreement and in deciding on the contents of this
Agreement. Each party further declares that its decision to execute this
Agreement is not predicated on or influenced by any declarations or
representations by any other person, party, or any predecessors in interest,
successors, assigns, officers, directors, employees, agents or attorneys of any
said person or party, except as set forth in this Agreement. This Agreement
resulted from negotiation involving counsel for all of the parties hereto and no
term herein shall be construed or interpreted against any party under the contra
proferentum or any related doctrine.

 

22.9                         CONFIDENTIALITY

 

Subject to any legal or governmental requirements of disclosure, including,
without limitation, disclosure by Holdings or the Buyer in its publicly filed
disclosure pursuant to mandatory provisions of the U.S. federal or state
securities laws and regulations promulgated thereunder or pursuant to mandatory
process or discovery requirements, the parties (which for this purpose shall
include their employees, advisors, and legal counsel) shall maintain the terms
and conditions of this Agreement and any reports or other data furnished
hereunder strictly confidential, including but not limited to, the Aircraft
pricing (the “Confidential Information”).  Without limiting the generality of
the foregoing, the Buyer shall use its commercially reasonable efforts to limit
the disclosure of the contents of this Agreement to the extent legally
permissible in (i) any filing required to be made by the Buyer with any
governmental agency or pursuant to mandatory directives of U.S. federal or state
securities laws and regulations promulgated thereunder and shall make such
applications as shall be necessary to implement the foregoing, and (ii) any
press release concerning the whole or any part of the contents and/or subject
matter hereof or of any future addendum hereto. With respect to any public
disclosure or filing, the Buyer agrees to submit to the Seller a copy of the
proposed document to be filed or disclosed and shall give the Seller a
reasonable period of time as is practicable under the circumstances in which to
review said document. The Buyer and the Seller shall consult with each other
prior to the making of any public disclosure or filing, permitted hereunder, of
this Agreement or the terms and conditions thereof.

 

The provisions of this Clause 22.9 shall survive any termination of this
Agreement.

 

22.10                       SEVERABILITY

 

If any provision of this Agreement should for any reason be held ineffective,
the remainder of this Agreement shall remain in full force and effect. To the
extent permitted by applicable law, each party hereto hereby waives any
provision of law that renders any provision of this Agreement prohibited or
unenforceable in any respect.

 

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22.11                       ENTIRE AGREEMENT

 

This Agreement contains the entire agreement between the parties with respect to
the subject matter hereof and thereof and supersedes any previous understanding,
commitments or representations whatsoever, whether oral or written, including,
but not limited to the A330-200 / A350XWB-800 term sheet reference N°5387.4
dated November 16th 2007. This Agreement shall not be amended or modified except
by an instrument in writing of even date herewith or subsequent hereto executed
by both parties or by their fully authorized representatives.

 

22.12                       INCONSISTENCIES

 

In the event of any inconsistency between the terms of this Agreement and the
terms contained in either (i) the Specification, or (ii) any other Exhibit, in
each such case the terms of this Agreement shall prevail over the terms of the
Specification or any other Exhibit.  For the purpose of this Clause 22.12, the
term Agreement shall not include the Specification or any other Exhibit hereto.

 

22.13                       LANGUAGE

 

All correspondence, documents and any other written matters in connection with
this Agreement shall be in English.

 

22.14                       COUNTERPARTS

 

This Agreement may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same instrument.

 

22.15                       WAIVER OF CONSEQUENTIAL DAMAGES

 

In no circumstances shall either party claim or receive incidental or
consequential damages under this Agreement.

 

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IN WITNESS WHEREOF, this Agreement was entered into as of the day and year first
above written.

 

 

 

AIRBUS, S.A.S.

 

 

 

 

By:

 

 

 

Title:

 

 

 

 

HAWAIIAN AIRLINES, INC.

 

 

 

By:

 

 

 

Title:

 

 

 

and

 

 

By:

 

 

 

Title:

 

 

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EXHIBIT A1

 

The A330-200 Standard Specification is contained in a separate folder.

 

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EXHIBIT A2

 

The ADD is contained in a separate folder.

 

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EXHIBIT B1

 

AIRBUS
SPECIFICATION CHANGE NOTICE
(SCN)

 

SCN No.
Issue
Dated
Page No.

 

TITLE

 

DESCRIPTION

 

EFFECT ON WEIGHT

Manufacturer’s Weight Empty Change:

 

Operational Weight Empty Change:

 

Allowable Payload Change:

 

REMARKS/REFERENCES

Response to RFC

 

SPECIFICATION CHANGED BY THIS SCN

 

THIS SCN REQUIRES PRIOR OR CONCURRENT ACCEPTANCE OF THE FOLLOWING SCN(s)

 

PRICE PER AIRCRAFT

 

US DOLLARS:

 

AT DELIVERY CONDITIONS:

 

This change will be effective on                   Aircraft
No.                    and subsequent provided approval is received
by                          .

 

BUYER APPROVAL

 

APPROVAL

 

SELLER

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

Title: (Authorized Finance Department Officer)

 

Date:

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

Title: (Authorized maintenance or flight operations officer)

 

 

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

 

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AIRBUS
SPECIFICATION CHANGE NOTICE
(SCN)

 

SCN No.
Issue
Dated
Page No.

 

 

SCOPE OF CHANGE  (FOR INFORMATION ONLY)

 

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EXHIBIT B2

 

AIRBUS

 

Airline

 

 

 

MANUFACTURER’S SPECIFICATION

 

MSCN Number

CHANGE NOTICE

 

Issue

 

 

Dated

(MSCN)

 

 

 

Title:

 

 

 

Description

 

 

 

Effect on weight

 

 

 

Manufacturer’s Weight Empty Change

:

 

Operational Weight Empty Change

:

 

Allowable Payload Change

:

 

 

 

Remarks / References

 

 

 

Specification changed by this MSCN

 

 

 

 

Price per aircraft

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US DOLLARS :

 

 

 

 

 

 

 

 

 

AT DELIVERY CONDITIONS :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This change will be effective on

AIRCRAFT N°

 

and subsequent.

 

 

 

 

 

Provided MSCN is not rejected by

 

 

 

 

 

 

 

 

 

Buyer Approval

 

Seller Approval

 

 

 

 

 

 

 

By     :

 

By    :

 

 

 

 

 

 

 

 

 

 

 

 

Date  :

 

Date  :

 

 

 

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EXHIBIT B2

 

AIRBUS

MANUFACTURER’S SPECIFICATION
CHANGE NOTICE

(MSCN)

 

Airline

MSCN Number
Issue
Dated

 

Specification repercussion:

After contractual agreement with respect to weight, performance, delivery, etc,
the indicated part of the specification wording will read as follows:

 

 

Price per aircraft

 

US DOLLARS :

 

AT DELIVERY CONDITIONS :

 

 

This change will be effective on

AIRCRAFT N°                                and subsequent.

 

 

Provided MSCN is not rejected by

 

 

 

Buyer Approval

Seller Approval

 

 

By     :

By    :

 

 

Date  :

Date  :

 

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EXHIBIT B2

 

AIRBUS

MANUFACTURER’S SPECIFICATION
CHANGE NOTICE

(MSCN)

 

Airline

MSCN Number
Issue
Dated

 

Scope of change (FOR INFORMATION ONLY)

 

 

Price per aircraft

 

US DOLLARS :

 

AT DELIVERY CONDITIONS :

 

 

This change will be effective on

AIRCRAFT N°                                and subsequent.

 

 

Provided MSCN is not rejected by

 

 

 

Buyer Approval

Seller Approval

 

 

By     :

By    :

 

 

Date  :

Date  :

 

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EXHIBIT B3

 

[...***...]

 

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EXHIBIT B4

 

[...***...]

 

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EXHIBIT C

 

SELLER SERVICE LIFE POLICY

 

[...***...]

 

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EXHIBIT D

 

Form of
CERTIFICATE OF ACCEPTANCE
for A330/A350XWB Aircraft

 

In accordance with the terms of that certain A330/A350XWB Purchase Agreement
dated as of                         , between [    ], (“Buyer”) and Airbus
S.A.S. (“Airbus”) (the “Purchase Agreement”), the acceptance inspections
relating to the Airbus [    ] aircraft, Manufacturer’s Serial Number:
          , U.S. Registration Number:              with two (2) [   ] series
propulsion systems installed thereon, serial nos.              (position #1) and
               (position #2) (the “Aircraft”), have taken place at Toulouse,
France, on the          day of                           ,         .

 

In view of said inspections having been carried out with satisfactory results,
and with any remaining discrepancies note separately, Buyer hereby approves the
Aircraft as being in conformity with the provisions of the Purchase Agreement.

 

This acceptance does not impair the rights of the Buyer that may be derived from
the warranties relating to the Aircraft set forth in the Purchase Agreement.

 

 

 

 

 

 

 

RECEIPT AND ACCEPTANCE OF THE ABOVE-DESCRIBED

 

 

 

 

 

 

AIRCRAFT ACKNOWLEDGED

 

 

 

 

 

 

 

 

 

 

 

 

 

HAWAIIAN AIRLINES INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Its:

 

 

 

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EXHIBIT E

 

BILL OF SALE for A330/A350XWB Aircraft

 

Know all persons by these presents that Airbus S.A.S. (“Airbus”), organized and
existing under the laws of the Republic of France, whose address is 1 rond-point
Maurice Bellonte, 31700 Blagnac, France, is the owner of the full legal and
beneficial title to the following airframe (the “Airframe”), the attached
propulsion systems as specified (the “Propulsion Systems”) and all appliances,
components, parts, instruments, accessories, furnishings, modules and other
equipment of any nature, excluding buyer furnished equipment, incorporated
therein, installed thereon or attached thereto on the date hereof (the “Parts”):

 

MANUFACTURER OF AIRFRAME:

 

MANUFACTURER OF PROPULSION
SYSTEMS:

 

 

 

 

 

 

 

AIRBUS

 

 

 

[      ]

 

 

 

 

 

 

 

 

 

MODEL:              [    ]

 

 

 

MODEL: [    ]

 

 

 

 

 

 

 

 

 

MANUFACTURER’S

 

 

 

SERIAL NUMBERS:

 

 

SERIAL NUMBER:

 

            [           ]

 

LH :

[           ]

 

 

 

 

 

RH :

[           ]

 

REGISTRATION NO:

 

[           ]

 

 

 

 

 

The Airframe, Engines and Parts are hereafter together referred to as the
aircraft (the “Aircraft”).

 

AIRBUS does this        day of                                sell, transfer and
deliver all of its above described rights, title and interest to the Aircraft to
the following company forever, said Aircraft to be the property thereof:

 

HAWAIIAN AIRLINES INC. (THE “BUYER”).

 

Airbus hereby warrants to the Buyer, its successors and assigns that it has on
the date hereof good and lawful right to sell, deliver and transfer title to the
Aircraft to the Buyer and that there is hereby conveyed to the Buyer on the date
hereof good, legal and valid title to the Aircraft, free and clear of all liens,
claims, charges, encumbrances and rights of others, other than those arising by
or through the Buyer and that the Seller will warrant and defend such title
forever against all claims and demands whatsoever.

 

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IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed by
its duly authorized representative this              day of
[                  ].

 

AIRBUS S.A.S.

By:

Title:

Signature:

Location:

 

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EXHIBIT F1

 

EXHIBIT F1

 

A330-200 TECHNICAL DATA INDEX

 

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TECHNICAL DATA INDEX

 

Where applicable data will be established in general compliance with ATA
Specification 2200 (iSpec2200), Information Standards for Aviation Maintenance

 

The following index identifies the Technical Data provided in support of the
Aircraft.

 

The explanation of the table is as follows:

 

NOMENCLATURE

 

Self-explanatory.

 

 

 

ABBREVIATED DESIGNATION (Abbr)

 

Self-explanatory.

 

 

 

AVAILABILITY (Avail)

 

 

 

Technical Data can be made available :

 

·      ON-LINE (ON) through the relevant service on Airbus|World,

 

and / or

 

·      OFF-LINE (OFF) through the most suitable means applicable to the size of
the concerned document  (e.g CD or DVD).

 

FORMAT (Form)

 

Following Technical Data formats may be used:

 

·      SGML - Standard Generalized Mark-up Language, which allows further data
processing by the Buyer.

 

·      XML – Extensible Mark-up Language, evolution of the SGML text format to
cope with WEB technology requirements.

 

XML data is used as basis for consultation using FOCT viewer (Flight Operations
Consultation Tool). XML data can be customized using Airbus customization tools
(FOSP, ADOC) or XML-based Airlines own editing tools.

 

·      CGM – Computer Graphics Metafile, format of the interactive graphics
associated with the XML and /or SGML text file delivery  .

 

·      PDF (PDF) - Portable Document Format allowing data consultation.

 

·      Advanced Consultation Tool -  refers to Technical Data Consultation
application that offers advanced consultation & navigation functionality
compared to PDF. Both browser software & Technical Data are packaged together.

 

·      P1 / P2 - refers to manuals printed on one side or both sides of the
sheet.

 

·      CD-P -  refers to CD-Rom including Portable Document Format (PDF) Data.

 

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***   Confidential Treatment Requested

 

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

 

TYPE

C

CUSTOMIZED. Refers to manuals that are applicable to an individual Airbus
customer/operator fleet or aircraft.

 

 

 

 

G

GENERIC. Refers to manuals that are applicable for all Airbus aircraft
types/models/series.

 

 

 

 

E

ENVELOPE. Refers to manuals that are applicable to a whole group of Airbus
customers for a specific aircraft type/model/series.

 

QUANTITY (Qty)

 

Self-explanatory for physical media.

 

 

 

DELIVERY (Deliv)

 

Delivery refers to scheduled delivery dates and is expressed in either the
number of corresponding days prior to first Aircraft delivery, or nil (0)
corresponding to the first delivery day.

 

 

 

 

 

The number of days indicated shall be rounded up to the next regular revision
release date.

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr

 

Avail

 

Form

 

Type

 

Qty

 

Deliv

 

Comments

OPERATIONAL MANUALS AND DATA

 

 

 

 

Flight Crew Operating Manual & Flight Crew Training Manual

 

FCOM

 

ON

 

XML

 

C

 

N/A

 

90

 

 

 

 

 

OFF

 

XML

 

C

 

1

 

 

 

 

 

FCTM

 

ON

 

XML

 

C

 

N/A

 

90

 

FCTM is a supplement to FCOM , a “Pilot’s guide” for use in training and in
operations

 

 

 

OFF

 

XML

 

C

 

1

 

90

 

 

Cabin Crew Operating Manual

 

CCOM

 

ON

 

XML

 

C

 

N/A

 

90

 

 

 

 

 

OFF

 

XML

 

C

 

1

 

90

 

 

Flight Manual

 

FM

 

ON

 

XML

 

C

 

N/A

 

0

 

 

 

 

 

OFF

 

XML

 

C

 

1

 

0

 

 

Master Minimum Equipment List

 

MMEL

 

ON

 

XML

 

C

 

N/A

 

180

 

XML to be used for issuing the Customer MEL

 

 

 

OFF

 

XML

 

C

 

1

 

180

 

 

Quick Reference Handbook

 

QRH

 

ON

 

XML

 

C

 

N/A

 

90

 

 

 

 

 

OFF

 

XML

 

C

 

1

 

90

 

 

Trim Sheet

 

TS

 

OFF

 

WordDoc

 

C

 

1

 

0

 

Office Automation format (.doc) for further processing by the Buyer

Weight and Balance Manual

 

WBM

 

ON

 

XML

 

C

 

N/A

 

0

 

 

 

 

 

OFF

 

XML

 

C

 

1

 

0

 

 

Performance Engineer’s Programs

 

PEP

 

ON

 

Performance Computation Tool

 

C

 

1

 

90

 

A collection of aircraft Performance software tools in a common interface.

 

 

 

OFF

 

Performance Computation Tool on CD

 

C

 

N/A

 

90

 

 

Performance Programs Manual

 

PPM

 

OFF

 

CD-P

 

C

 

1

 

90

 

Explains how to use the PEP & contains specific Data for engineers, which are
not contained in the FCOM

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr

 

Avail

 

Form

 

Type

 

Qty

 

Deliv

 

Comments

MAINTENANCE AND ASSOCIATED MANUALS

AirN@v / Maintenance , including :

Aircraft Maintenance Manual - AMM

Illustrated Parts Catalog (Airframe)- IPC

Trouble Shooting Manual - TSM

Aircraft Schematics Manual - ASM

Aircraft Wiring Lists - AWL

Aircraft Wiring Manual- AWM

Electrical Standard Practices Manual-ESPM

 

 

AirN@v

 

ON

 

Advanced Consultation Tool

 

C

 

N/A

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AirN@v

 

OFF

 

Advanced Consultation Tool on DVD

 

C

 

20

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AirN@v / Associated Data

Consumable Material List – CML
Standards Manual – SM
Electrical Standard Practices Manual - ESPM
Tooling Data – TD (*)

 

AirN@v

 

ON

 

Advanced Consultation Tool

 

G

 

N/A

 

360

 

Tooling Data invcludes the Tool and Equipment Manual (TEM), Support Equipment
Summary (SES) and Tool and Equipment Index (TEI) information.

 

AirN@v

 

OFF

 

Advanced Consultation Tool on DVD

 

G

 

20

 

360

 

 

Technical Follow-up

 

TFU

 

OFF

 

CD-P

 

E

 

20

 

90

 

TFU for Trouble shooting & maintenance, to be used with AirN@v

Aircraft Maintenance Manual

 

AMM

 

ON

 

PDF

 

C

 

N/A

 

90

 

 

 

AMM

 

OFF

 

CD-P

 

C

 

3

 

90

 

Fallback solution to AirN@v / Maintenance

 

AMM

 

OFF

 

SGML

 

C

 

1

 

180

 

SGML format delivery upon explicit request from the Buyer.  Graphics in CGM, in
general compliance with iSpec 2200

Aircraft Schematics Manual

 

ASM

 

ON

 

PDF

 

C

 

N/A

 

90

 

 

 

ASM

 

OFF

 

CD-P

 

C

 

3

 

90

 

Fallback solution to AirN@v / Maintenance :

 

ASM

 

OFF

 

SGML

 

C

 

1

 

180

 

SGML format delivery upon explicit request from the Buyer. Graphics in CGM, in
general compliance with iSpec 2200

Aircraft Wiring List

 

AWL

 

ON

 

PDF

 

C

 

N/A

 

90

 

 

 

AWL

 

OFF

 

CD-P

 

C

 

3

 

90

 

Fallback solution to AirN@v / Maintenance.  AWL PDF will be discontinued in 2009
after implementation of the AirN@v / Maintenance Technical Data Upgrade
programme.

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr

 

Avail

 

Form

 

Type

 

Qty

 

Deliv

 

Comments

 

 

AWL

 

OFF

 

SGML

 

C

 

1

 

180

 

SGML format delivery upon explicit request from the Buyer.

(Graphics in CGM, in general compliance with iSpec 2200 )

Aircraft Wiring Manual

 

AWM

 

ON

 

PDF

 

C

 

N/A

 

90

 

 

 

AWM

 

OFF

 

CD-P

 

C

 

3

 

90

 

Fallback solution to AirN@v / Maintenance 

 

AWM

 

OFF

 

SGML

 

C

 

1

 

180

 

SGML format delivery upon explicit request from the Buyer.

(Graphics in CGM, in general compliance with iSpec 2200 )

Consumable Material List

 

CML

 

OFF

 

SGML

 

G

 

1

 

180

 

SGML format delivery upon explicit request from the Buyer.

Ecam System Logic Data

 

 

ESLD

 

ON

 

PDF

 

E

 

N/A

 

90

 

 

 

ESLD

 

OFF

 

CD-P

 

E

 

5

 

90

 

 

Electrical Load Analysis

 

ELA

 

OFF

 

PDF/RTF/
Excel

 

C

 

1

 

+30

 

One ELA supplied for each Aircraft, delivered one month after Aircraft Delivery

PDF File + Office automation format RTF & Excel file delivered on one single CD
for ELA updating by the Buyer

Electrical  Standard Practices Manual

 

ESPM

 

OFF

 

SGML

 

G

 

1

 

90

 

SGML format delivery upon explicit request from the Buyer.

(Graphics in CGM, in general compliance with iSpec 2200 )

Electrical Standard Practices booklet

 

 

ESP

 

OFF

 

P2*

 

G

 

20

 

90

 

*Pocket size format booklets, which provide maintenance personnel with quick and
easy access for identifying of electrical equipment and required tooling

Flight Data Recording Parameter Library

 

FDRPL

 

OFF

 

Advanced Consultation Tool on CD

 

E

 

5

 

90

 

 

Illustrated Parts Catalog (Airframe)

 

 

IPC

 

ON

 

PDF

 

C

 

N/A

 

90

 

 

 

IPC

 

OFF

 

CD-P

 

C

 

3

 

90

 

Fallback solution to AirN@v / Maintenance

IPC PDF will be discontinued  in 2009 after implementation of  the AirN@v /
Maintenance  Technical Data  Upgrade programme.

 

IPC

 

OFF

 

SGML

 

C

 

1

 

180

 

SGML format delivery upon explicit request from the Buyer.

(Graphics in CGM, in general compliance with iSpec 2200 )

AirN@v / Planning , including

Maintenance Planning Document – MPD

 

 

AirN@v

 

 

AirN@v

 

ON

 

 

OFF

 

Advanced Consultation Tool

Advanced Consultation Tool on DVD 

 

E

 

 

E

 

N/A

 

 

5

 

360

 

 

360

 

The application also includes MPD data in PDF, MS Excel and TSDF / Text
Structured Data File formats +  SGML file for further processing by the Buyer
Life Limited Parts information is included in the Airworthiness Limitation
Section ( ALS ) of the SMD

 

 

 

 

 

 

 

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr

 

Avail

 

Form

 

Type

 

Qty

 

Deliv

 

Comments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Scheduled  Maintenance Data, including

Maintenance Review Board Report –MRBR

Airworthiness Limitation Section – ALS  

 

SMD

 

ON

 

PDF

 

E

 

NA

 

360

 

 

 

SMD

 

OFF

 

CD-P

 

E

 

5

 

360

 

 

Tool & Equipment Bulletins

 

TEB

 

OFF

 

P2

 

E

 

5

 

N/A

 

 

Tool and Equipment Drawings

 

TED

 

ON

 

Advanced Consultation Tool

 

E

 

N/A

 

360

 

On-line Consultation from Engineering Drawings Service

AirN@v / Engineering , including:

Airworthiness Directives / AD

Consignes de Navigabilite / CN ( French DGAC )

All Operator Telex / AOT

Operator Information Telex / OIT

Flight Operator Telex / FOT

Modification / MOD

Modification Proposal / MP

Service Bulletin / SB

Service Information Letter / SIL

Technical Follow-Up / TFU

Vendor Service Bulletin / VSB 

 

Enginerring Technical Data Service

 

AirN@v

 

ON

 

 

 

 

OFF

 

Advanced Consultation Tool

 

 

Advanced Consultation Tool  on DVD

 

C

 

 

 

 

C

 

N/A

 

 

 

 

5

 

90

 

 

 

 

90

 

Outstations with no On-Line connection to AirbusWorld to be supplied with one
DVD set

 

 

 

 

 

 

 

 

Trouble Shooting Manual

 

TSM

 

ON

 

PDF

 

C

 

N/A

 

90

 

 

 

TSM

 

OFF

 

CD-P

 

C

 

3

 

90

 

Fallback solution to AirN@v / Maintenance

 

TSM

 

OFF

 

SGML

 

C

 

1

 

180

 

SGML format delivery upon explicit request from the Buyer.

(Graphics in CGM, in general compliance  with iSpec 2200)

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr

 

Avail

 

Form

 

Type

 

Qty

 

Deliv

 

Comments

STRUCTURAL MANUALS

AirN@v / Repair , including:

Structural Repair Manual - SRM

Non Destructive Testing Manual - NTM

 

 

AirN@v

 

ON

 

Advanced Consultation Tool

 

E

 

N/A

 

90

 

 

 

 

 

OFF

 

Advanced Consultation Tool on DVD 

 

E

 

5

 

90

 

 

 

SRM

 

OFF

 

SGML

 

E

 

1

 

90

 

SGML format delivery upon explicit request from the Buyer.

(Graphics in CGM, in general compliance with iSpec 2200 )

Structural Repair Manual

 

SRM

 

ON

 

PDF

 

E

 

N/A

 

90

 

 

 

 

 

OFF

 

CD-P

 

E

 

5

 

90

 

Fallback solution to AirN@v- Repair

Non Destructive Testing Manual

 

NTM

 

ON

 

PDF

 

E

 

N/A

 

90

 

 

 

 

 

OFF

 

CD-P

 

E

 

5

 

90

 

Fallback solution to AirN@v- Repair

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr

 

Avail

 

Form

 

Type

 

Qty

 

Deliv

 

Comments

OVERHAUL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AirN@v / Workshop, including:

Component Maintenance Manual – Manufacturer

CMMM

Duct Fuel Pipe Repair Manual-  DFPRM

 

 

AirN@v

 

 

ON

 

Advanced Consultation Tool

 

E

 

N/A

 

180

 

 

 

 

 

OFF

 

Advanced Consultation Tool on DVD

 

E

 

5

 

180

 

 

Component Maintenance Manual – Manufacturer

CMMM

 

CMMM

 

ON

 

PDF

 

E

 

N/A

 

180

 

 

 

 

 

OFF

 

CD-P

 

E

 

5

 

180

 

Fallback solution to AirN@v / Workshop

Component Maintenance Manual – Vendor

 

 

CMMV

 

 

OFF

 

CD-P

 

E

 

1

 

180

 

PDF on CD  to be provided by Vendors. If more than one Airbus aircraft type in
operation with the Buyer, dispatch of the “common” CMMV only

 

CMMV

 

ON

 

PDF

 

E

 

N/A

 

180

 

Available from the “Supplier Technical  Documentation “ Service in AirbusWorld

Component Documentation Status

 

CDS

 

OFF

 

CD

 

C

 

1

 

180

 

Revised until 180 days after Aircraft Delivery

Component Evolution List

 

CEL

 

ON

 

PDF

 

G

 

N/A

 

—

 

 

 

CEL

 

OFF

 

CD-P

 

G

 

1

 

—

 

Delivered as follow-on for CDS.

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr

 

Avail

 

Form

 

Type

 

Qty

 

Deliv

 

Comments

ENGINEERING DOCUMENTS

 

 

 

 

 

 

 

 

Mechanical  Drawings

 

MD

 

ON

 

Advanced Consultation

Tool

 

C

 

N/A

 

0

 

On-line Consultation from Engineering Drawings Service

Note:  Repair drawings are supplied upon specific Buyer request. Buyer’s queries
shall be issued in connection with an approved document SB, SRM or RAS (Repair
Assessment Sheet)

Parts Usage (Effectivity)

 

PU

 

ON

 

Advanced Consultation

Tool

 

C

 

N/A

 

0

 

On-line Consultation from Engineering Drawings Service

Parts List

 

PL

 

ON

 

Advanced ConsultationTool

 

C

 

N/A

 

0

 

On-line Consultation from Engineering Drawings Service

Standards Manual

 

SM

 

OFF

 

SGML

 

G

 

1

 

180

 

SGML format delivery upon explicit request from the Buyer.

Process and Material Specification

 

PMS

 

ON

 

PDF

 

G

 

N/A

 

0

 

 

 

PMS

 

OFF

 

CD-P

 

G

 

1

 

0

 

 

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr

 

Avail

 

Form

 

Type

 

Qty

 

Deliv

 

Comments

MISCELLANEOUS PUBLICATIONS

 

 

 

 

 

 

 

 

Airplane Characteristics for Airport Planning- AC

Maintenance Facility Planning - MFP

 

 

AC/MFP

 

ON

 

PDF

 

E

 

N/A

 

360

 

Available On-Line from the  AirbusWorld

 

AC/ MFP

 

OFF

 

CD-P

 

E

 

5

 

360

 

AC, MFP are grouped on one single CD

Fallback solution to on-line AC / MFP 

ATA 100 Breakdown

 

ATAB

 

ON

 

PDF

 

E

 

N/A

 

360

 

  6 Digits ATA 100 Breakdown

 

 

 

OFF

 

CD-P

 

E

 

5

 

360

 

 

C@DETS /Technical Data Training Course Ware

Software

 

C@DETS

 

OFF

 

Advanced Consultation

Tool on CD

 

G

 

5

 

360

 

Training Course applicable to major  Maintenance , Material , Repair Technical
Data 

 

C@DETS

 

ON

 

PDF

 

G

 

NA

 

360

 

 

Aircraft Recovery Manual

 

ARM

 

ON

 

PDF

 

E

 

N/A

 

90

 

 

 

ARM

 

OFF

 

CD-P

 

E

 

1

 

90

 

 

Aircraft Rescue & Firefighting Chart

 

ARFC

 

ON

 

PDF

 

E

 

N/A

 

180

 

Available On-Line from AirbusWorld

Crash Crew Chart

 

CCC

 

OFF

 

P1

 

E

 

20

 

180

 

 

Cargo Loading System Manual

 

 

CLS

 

ON

 

PDF

 

E

 

N/A

 

180

 

 

 

CLS

 

OFF

 

CD-P

 

E

 

1

 

180

 

ONE CLS PER DELIVERED AIRCRAFT

 

List of Effective Technical Data

 

LETD

 

ON

 

PDF

 

C

 

N/A

 

90

 

The LETD provides, for each Technical Data, information about:

- Applicable issue and revision date,

- Shipping information with search functions by manual or delivery address
criteria,

-Tracking of shipments through the Carrier Website.

List of Radioactive and Hazardous Elements

 

LRE

 

ON

 

PDF

 

G

 

N/A

 

90

 

 

 

LRE

 

OFF

 

CD-P

 

G

 

1

 

90

 

 

Livestock Transportation Manual

 

LTM

 

ON

 

PDF 

 

E

 

N/A

 

90

 

 

 

LTM

 

OFF

 

CD-P

 

E

 

1

 

90

 

 

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr

 

Avail

 

Form

 

Type

 

Qty

 

Deliv

 

Comments

Service Bulletins

 

SB

 

ON

 

Advanced Consultation Tool

 

C

 

N/A

 

0

 

Full SB content and SB search functions available from the ETDS / Engineering
Technical Documentation Service in AirbusWorld

Note: SB cross reference Index available  from  AirN@v / Engineering  on DVD

 

SB

 

OFF

 

CD-P

 

C

 

1

 

0

 

One CD for every SB issued and/or revised 

Supplier Product Support Agreements 2000

 

SPSA

 

 

SPSA

 

ON

 

 

OFF

 

PDF

 

 

CD-P  

 

G

 

 

G

 

N/A

 

 

5

 

360

 

 

360

 

The SPSA contains all the GCP 2000 issue 04 Agreements signed by Airbus SFE
Suppliers.

The GCP 2000 is an Agreement signed by Airbus and its Suppliers which specifies:
Airbus Support Standards and the individual Supplier’s contractual support
commitments  

Transportability Manual

 

TM

 

OFF

 

CD-P

 

G

 

1

 

180

 

 

Vendor Information Manual

 

 

VIM

 

ON

 

Advanced Consultation Tool

 

G

 

N/A

 

360

 

 

 

VIM

 

OFF

 

Advanced Consultation Tool on CD

 

G

 

5

 

360

 

 

Ground Support Equipment Vendor Information Manual / GSE VIM

 

GSE VIM

 

ON

 

PDF

 

G

 

N/A

 

360

 

 

 

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

***   Confidential Treatment Requested

 

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

 

EXHIBIT F2

 

EXHIBIT F2

 

A350XWB-800 TECHNICAL DATA INDEX

 

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

***   Confidential Treatment Requested

 

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

 

TECHNICAL DATA INDEX

 

Where applicable, data will be established in general compliance with S1000D 
Specification jointly defined by the ASD (Aerospace and Defense Industries
Association of Europe), AIA (Aerospace Industries Association) and ATA (Air
Transport Association of America).

 

AVAILABILITY

 

Except as specifically otherwise set forth in this Exhibit F2, all Technical
Data shall be available on-line through the relevant Service on AirbusWorld.

 

Off-line Technical Data shall only be supplied upon express request from the
Buyer to cover some specific back-up needs.

 

The following index identifies the Technical Data provided in support of the
Aircraft.

 

NOMENCLATURE         Self-explanatory

 

ABBR.    Abbreviated designation of the relevant Technical Data

 

FORMATS:

 

ADVANCED CONSULTATION TOOL (A.C.T.)

Includes the relevant Technical Data and an advanced consultation and navigation
software to browse the data.

 

SPECIFIC FORMATS (Format)

Refers to Technical Data, which are neither located in an “Advanced Consultation
Tool” nor issued as XML raw data. Such Technical Data may be available as
either:

 

·             Portable Document Format (PDF), allowing data consultation, or

·             Office Automation Format, such as XLS and/or Rich Text Format
(Word RTF) or HyperText Markup Language (HTML), for consultation and information
update, or

·             Task Structure Data File (TSDF).

 

XML

 

1/ Maintenance, Planning, Structural, Overhaul, Engineering Data

 

S1000D compliant raw data, for data processing by the Buyer.

 

If XML has been selected by the Buyer in the present Exhibit F2, effective
delivery shall only take place at the time of explicit request from the Buyer

 

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

***   Confidential Treatment Requested

 

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

 

2/ Flight Operations Data

 

XML standard is yet to be defined . It will either be compliant with the future
ATA XML standard or conform to the ATA / ASD / AIA S1000D Specification.

 

TYPE

C

CUSTOMIZED. Refers to manuals that are applicable to an individual Airbus
customer/operator fleet or aircraft.

 

 

 

 

 

 

G

GENERIC. Refers to manuals that are applicable for all Airbus aircraft
types/models/series.

 

 

 

 

 

 

E

ENVELOPE. Refers to manuals that are applicable to a whole group of Airbus
customers for a specific aircraft type/model/series.

 

QTY/ QUANTITY

 

Self explanatory

 

 

 

DELIVERY (Deliv)

 

Delivery refers to scheduled delivery dates and is expressed in either the
number of corresponding days prior to first Aircraft Delivery or nil (0),
corresponding to the first aircraft Delivery Date.

 

 

 

 

 

The number of days indicated shall be rounded up to the next regular revision
release date.

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr.

 

XML

 

A.C.T.

 

Format

 

Type

 

Qty

 

Deliv

 

Comments

FLIGHT OPERATIONAL DATA

FLIGHT CREW OPERATING MANUAL / QUICK REFERENCE LEAFLET

 

FCOM

 

X

 

 

 

 

 

C

 

 

 

90

 

 

 

 

QRL

 

X

 

 

 

 

 

C

 

 

 

90

 

 

Flight Crew Training Manual

 

FCTM

 

X

 

 

 

 

 

C

 

 

 

90

 

 

Cabin Crew Operating Manual

 

CCOM

 

X

 

 

 

PDF

 

C

 

 

 

90

 

 

Flight Manual / Configuration Deviation List

 

FM/CDL

 

X

 

 

 

PDF

 

C

 

 

 

0

 

 

Master Minimum Equipment List

 

MMEL

 

X

 

 

 

PDF

 

C

 

 

 

180

 

 

Weight and Balance Manual

 

WBM

 

X

 

 

 

PDF

 

C

 

 

 

90 + 0

 

 

Trim Sheet

 

TS

 

 

 

 

 

Word RTF

 

C

 

 

 

90

 

Office Automation Format (.doc) for further processing by the Buyer

Performance Engineer’s Programs

 

PEP

 

 

 

Performance Computation Tool

 

 

 

C

 

 

 

90

 

A collection of aircraft performance software tools in a common interface. They
are complemented by OIS performance tools based on the same computation engine
as that included in the PEP

Performance Programs Manual

 

PPM

 

 

 

 

 

PDF

 

C

 

 

 

90

 

Explains how to use the PEP & contains specific data for engineers, which are
not contained in the FCOM

MAINTENANCE AND ASSOCIATED DATA

Aircraft Maintenance Manual

 

AMM

 

X

 

X

 

 

 

C

 

 

 

90

 

 

Aircraft Schematics Manual

 

ASM

 

X

 

X

 

 

 

C

 

 

 

90

 

 

Aircraft Wiring Lists

 

AWL

 

X

 

X

 

 

 

C

 

 

 

90

 

 

Aircraft Wiring Manual

 

AWM

 

X

 

X

 

 

 

C

 

 

 

90

 

 

Consumable Material List

 

CML

 

X

 

X

 

 

 

G

 

 

 

180

 

 

Electrical Load Analysis

 

ELA

 

 

 

PDF/RTF/ XLS

 

 

 

C

 

 

 

+30

 

Off-line delivery with each Aircraft, within 4 weeks from Aircraft Delivery
Date.

PDF file + Office Automation Format RTF & Excel file delivered on a single CD
for ELA updating by the Buyer

Electrical Standard Practices Manual

 

ESPM

 

X

 

X

 

 

 

G

 

 

 

90

 

 

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr.

 

XML

 

A.C.T.

 

Format

 

Type

 

Qty

 

Deliv

 

Comments

Electrical Standard Practices booklet

 

ESP

 

 

 

 

 

paper

 

G

 

 

 

90

 

This manual is Airbus generic and is supplied as a pocket-size format booklet.

It provides maintenance personnel with quick and easy access for identifying
electrical equipment and the required tooling

Illustrated Parts Catalog (Airframe)

 

AIPC

 

X

 

X

 

 

 

C

 

 

 

90

 

 

Illustrated Parts Catalog  (Powerplant)

 

PIPC

 

X*

 

X

 

 

 

C

 

 

 

90

 

* For XML raw data availibility, Powerplant supplier is to be contacted directly

List of Radioactive and Hazardous Elements

 

LRE

 

X

 

X

 

PDF

 

G

 

 

 

90

 

 

Maintenance Planning Document

 

MPD

 

X

 

X

 

PDF, XLS, TSDF

 

E

 

 

 

90

 

 

Maintenance Review Board Report

 

MRBR

 

 

 

 

 

PDF

 

E

 

 

 

360

 

MRB Report document includes the Certification Maintenance Requirements (CMR)
and Airworthiness Limitation Items (ALI) documents.

Tool and Equipment Drawings

 

TED

 

 

 

X

 

 

 

E

 

 

 

360

 

On-line consultation from the Tool & Equipment Drawings Service on AirbusWorld

Illustrated Tool and Equipment Manual         

 

TEM

 

X

 

X

 

 

 

E

 

 

 

360

 

 

Transportability Manual

 

TM

 

 

 

 

 

PDF

 

E

 

 

 

180

 

 

Trouble Shooting Manual

 

TSM

 

X

 

X

 

 

 

C

 

 

 

90

 

 

STRUCTURAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Structural Repair Manual

 

SRM

 

X

 

X

 

 

 

E

 

 

 

90

 

 

Nacelle Structural Repair Manual

 

NSRM

 

X*

 

X

 

 

 

E

 

 

 

90

 

For XML raw data availability, Nacelle Supplier is to be contacted directly

Nondestructive Testing Manual

 

NTM

 

X

 

X

 

 

 

N/A

 

 

 

90

 

 

OVERHAUL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cable Fabrication manual

 

CFM

 

 

 

 

 

PDF

 

 

 

 

 

 

 

 

Component Documentation Status

 

CDS

 

 

 

 

 

HTML

 

C

 

 

 

180

 

Tool enabling the Buyer to load Vendor Component  Maintenance Manual delivery
data. Revised until 180 days after Aircraft Delivery.

Component Evolution List

 

CEL

 

 

 

 

 

PDF

 

G

 

 

 

—

 

 

Component Maintenance Manual – Manufacturer

 

CMMM

 

X

 

X

 

PDF

 

E

 

 

 

180

 

 

Component Maintenance Manual – Vendor

 

CMMV

 

 

 

X

 

PDF

 

E

 

 

 

180

 

PDF: consultation from the Supplier Technical

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr.

 

XML

 

A.C.T.

 

Format

 

Type

 

Qty

 

Deliv

 

Comments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data On-Line Service on AirbusWorld

For XML raw data availibility, each CMMV Supplier is to be contacted directly

Duct & Fuel Pipe Repair Manual

 

DFPRM

 

X

 

X

 

 

 

E

 

 

 

180

 

 

ENGINEERING DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ENGINEERING Documents, included in one single advanced consultation tool:

 

 

 

 

 

 

 

 

 

 

 

 

 

90

 

On-line service offering advanced search and navigation functions allowing a
cross-reference between all document indexes and the capability to access AOT,
OIT, FOT, TFU, SIL & SB contents

Airworthiness Directives

 

AD

 

 

 

X

 

 

 

E

 

 

 

 

 

 

Consignes de Navigabilite (French DGAC)

 

CN

 

 

 

X

 

 

 

E

 

 

 

 

 

 

All Operator Telex

 

AOT

 

 

 

X

 

 

 

E

 

 

 

 

 

 

Operator Information Telex

 

OIT

 

 

 

X

 

 

 

E

 

 

 

 

 

 

Flight Operator Telex

 

FOT

 

 

 

X

 

 

 

E

 

 

 

 

 

 

Modification Proposal & Modification File

 

MP & MOD

 

 

 

X

 

 

 

E

 

 

 

 

 

 

Service Bulletin / SB

 

SB

 

X

 

X

 

 

 

C

 

 

 

 

 

 

Service Information Letter / SIL

 

SIL

 

 

 

X

 

 

 

E

 

 

 

 

 

 

Technical Follow-Up / TFU

 

TFU

 

 

 

X

 

 

 

E

 

 

 

 

 

 

Vendor Service Bulletin / VSB

 

VSB

 

X

 

X

 

 

 

E

 

 

 

 

 

For VSB in XML raw data availability, each CMM Supplier is to be contacted
directly.

Mechanical Drawings

 

MD

 

 

 

X

 

 

 

C

 

 

 

0

 

On-line consultation from Engineering Drawings Service

Parts Usage (Effectivity)

 

PU

 

 

 

X

 

 

 

C

 

 

 

0

 

On-line consultation from Engineering Drawings Service

Parts List

 

PL

 

 

 

X

 

 

 

C

 

 

 

0

 

On-line consultation from Engineering Drawings Service

Standards Manual

 

SM

 

X

 

X

 

 

 

G

 

 

 

90

 

 

Process and Material Specification

 

PMS

 

X

 

X

 

 

 

G

 

 

 

0

 

 

 

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

***   Confidential Treatment Requested

 

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

 

NOMENCLATURE

 

Abbr.

 

XML

 

A.C.T.

 

Format

 

Type

 

Qty

 

Deliv

 

Comments

MISCELLANEOUS TECHNICAL DATA

Aircraft Characteristics for Airport and Maintenance Facility Planning

 

AC/MFP

 

 

 

 

 

PDF

 

E

 

 

 

360

 

 

ATA 100 Index

 

ATI

 

 

 

 

 

PDF

 

E

 

 

 

360

 

6 Digits ATA 100 Index

C@DETS (Technical Data Training Software)

 

C@DETS

 

 

 

X

 

—

 

G

 

 

 

360

 

Training software applicable to customized & non-customized maintenance
Technical Data (AMM / TSM / IPC / AWM / SRM / NTM), and associated data (CML /
SM / TEM / PMS) & Aircraft drawings

Aircraft Recovery Manual

 

ARM

 

 

 

 

 

PDF

 

E

 

 

 

90

 

 

Aircraft Rescue & Firefighting Chart

 

ARFC

 

 

 

 

 

PDF

 

E

 

 

 

180

 

 

List of Effective Technical Data

 

LETD

 

 

 

 

 

PDF

 

C

 

 

 

90

 

 

Live Animal Transportation Calculation Tool

 

LATC

 

 

 

X

 

 

 

E

 

 

 

90

 

 

Supplier Product Support Agreements

 

SPSA

 

 

 

 

 

PDF

 

G

 

 

 

360

 

 

Vendor Information Manual

 

VIM

 

 

 

X

 

 

 

G

 

 

 

360

 

 

 

 

VIM/GSE

 

 

 

X

 

 

 

G

 

 

 

360

 

 

 

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

***   Confidential Treatment Requested

 

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

 

EXHIBIT G1

 

SELLER PRICE REVISION FORMULA

 

1                                                                                         
BASE PRICE

 

The Base Price of the Airframe and of the SCNs for the A330-200 Aircraft, and
the Base Price of Aircraft and of the SCNs for the A350XWB-800 Aircraft are as
quoted in the Agreement.

 

2                                                                                         
BASE PERIOD

 

The Base Prices enumerated in Paragraph 1 of this Exhibit G1 have been
established in accordance with the average economic conditions prevailing in
[...***...] and corresponding to a theoretical delivery in [...***...] as
defined by [...***...] and [...***...] index values indicated in Paragraph 4 of
this Exhibit G1.

 

These Base Prices are subject to adjustment for changes in economic conditions
as measured by data obtained from the US Department of Labor, Bureau of Labor
Statistics, and in accordance with the provisions of Paragraphs 4 and 5 of this
Exhibit G1.

 

[...***...] and [...***...] index values indicated in Paragraph 4 herein will
not be subject to any revision.

 

3                                                                                         
INDEXES

 

Labor Index: [...***...]

 

4                                                                                         
REVISION FORMULA

 

[...***...]

 

5                                                                                         
GENERAL PROVISIONS

 

5.1                                                                                
Roundings

 

The [...***...] average and the [...***...] average will be computed to the
first decimal. If the next succeeding place is five (5) or more, the preceding
decimal place shall be raised to the next higher figure.

 

Each quotient [...***...] shall be rounded to the nearest ten-thousandth (4
decimals). If the next succeeding place is five (5) or more, the preceding
decimal place shall be raised to the next higher figure.

 

The final factor will be rounded to the nearest ten-thousandth (4 decimals).

 

The final price will be rounded to the nearest whole number (0.5 or more rounded
to 1).

 

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

***   Confidential Treatment Requested

 

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

 

5.2                                                                              
Substitution of Indexes for Seller Price Revision Formula

 

If;

 

(i)                                                                                  
the United States Department of Labor substantially revises the methodology of
calculation of the labor index [...***...] or the material index [...***...] as
used in this Exhibit, or

 

(ii)                                                                               
the United States Department of Labor discontinues, either temporarily or
permanently, such labor index [...***...] or such material index [...***...], or

 

(iii)                                                                            
the data samples used to calculate such labor index [...***...] or such material
index [...***...]  are substantially changed;

 

the Seller will select a substitute index for inclusion in the Seller Price
Revision Formula (the “Substitute Index”).

 

The Substitute Index will reflect as closely as possible the actual variance of
the labor costs or of the material costs used in the calculation of the original
labor index [...***...] or material index [...***...] as the case may be.

 

As a result of the selection of the Substitute Index, the Seller will make an
appropriate adjustment to the Seller’s Price Revision Formula in this Exhibit G1
to combine the successive utilization of the original labor index [...***...] or
material index[...***...]  (as the case may be) and of the Substitute Index.

 

5.3                                                                             
Final Index Values

 

The index values as defined in paragraph 4 herein shall be considered final and
no further adjustment to the Base Prices as revised at Delivery of the Aircraft
shall be made after Aircraft Delivery for any subsequent changes in the
published index values.

 

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

***   Confidential Treatment Requested

 

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

 

EXHIBIT G2

 

ROLLS ROYCEPROPULSION SYSTEMS PRICE REVISION FORMULA

 

1                                                                                         
REFERENCE PRICE

 

The A330-200 Propulsion Systems Reference Price of the Rolls-Royce Trent 772B
Propulsions Systems is as quoted in Clause 3 to the Agreement.

 

This A330-200 Propulsion Systems Reference Price is subject to adjustment for
changes in economic conditions as measured by data obtained from the US
Department of Labor, Bureau of Labor Statistics, and in accordance with the
provisions of Paragraphs 4 and 5 of this Exhibit G2.

 

2                                                                                         
REFERENCE PERIOD

 

The above A330-200 Propulsion System Reference Price has been established in
accordance with the average economic conditions prevailing in [...***...] as
defined, according to ROLLS ROYCE, by the [...***...] index values indicated in
Paragraph 4 of this Exhibit G2.

 

3                                                                                         
INDEXES

 

Labor Index: [...***...]

 

Material Index: [...***...]

 

Energy Index: [...***...]

 

4                                                                                         
REVISION FORMULA

 

[...***...]

 

5                                                                                         
GENERAL PROVISIONS

 

5.1                                                                                
Roundings

 

The Labor and Material Index averages will be computed to the second decimal
place.

 

Each factor [...***...] will be calculated to the nearest ten-thousandth (4
decimals).

 

If the next succeeding place is five (5) or more the preceding decimal will be
raised to the next higher figure.

 

After final computation [...***...] will be rounded to the nearest whole number
(0.5 or more rounded to 1).

 

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

***   Confidential Treatment Requested

 

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

 

5.2                                                                             
Final Index Values

 

The revised A330-200 Propulsions Systems Reference Price as revised as of the
Aircraft Delivery will not be subject to any further adjustments in the indexes.

 

5.3                                                                             
Interruption of Index Publication

 

If the US Department of Labor substantially revises the methodology of
calculation or discontinues any of the indexes referred to hereabove, the Seller
will reflect the substitute for the revised or discontinued index selected by
ROLLS ROYCE, such substitute index to lead in application to the same adjustment
result, insofar as possible, as would have been achieved by continuing the use
of the original index as it may have fluctuated had it not been revised or
discontinued.

 

Appropriate revision of the formula will be made to accomplish this result.

 

5.4                                                                             
Annulment of Formula

 

Should the above escalation provisions become null and void by action of the
British Government, the Price will be adjusted due to increases in the costs of
labor, material and fuel which have occurred from the period represented by the
applicable A330-200 Propulsion Systems Reference Price Indexes to the
[...***...] prior to the month of Aircraft Delivery.

 

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

***  Confidential Treatment Requested

 

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

 

EXHIBIT G2

 

ROLLS ROYCEPROPULSION SYSTEMS PRICE REVISION FORMULA

 

1                                                                                      
REFERENCE PRICE

 

The A330-200 Propulsion Systems Reference Price of the Rolls-Royce Trent 772B
Propulsions Systems is as quoted in Clause 3 to the Agreement.

 

This A330-200 Propulsion Systems Reference Price is subject to adjustment for
changes in economic conditions as measured by data obtained from the US
Department of Labor, Bureau of Labor Statistics, and in accordance with the
provisions of Paragraphs 4 and 5 of this Exhibit G2.

 

2                                                                                      
REFERENCE PERIOD

 

The above A330-200 Propulsion System Reference Price has been established in
accordance with the average economic conditions prevailing in [...***...] as
defined, according to ROLLS ROYCE, by the [...***...] index values indicated in
Paragraph 4 of this Exhibit G2.

 

3                                                                                      
INDEXES

 

Labor Index: [...***...]

 

Material Index: [...***...]

 

Energy Index: [...***...]

 

4                                                                                      
REVISION FORMULA

 

[...***...]

 

5                                                                                      
GENERAL PROVISIONS

 

5.1                                                                             
Roundings

 

The Labor and Material Index averages will be computed to the second decimal
place.

 

Each factor [...***...] will be calculated to the nearest ten-thousandth (4
decimals).

 

If the next succeeding place is five (5) or more the preceding decimal will be
raised to the next higher figure.

 

After final computation [...***...] will be rounded to the nearest whole number
(0.5 or more rounded to 1).

 

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

***  Confidential Treatment Requested

 

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

 

5.2                                                                             
Final Index Values

 

The revised A330-200 Propulsions Systems Reference Price as revised as of the
Aircraft Delivery will not be subject to any further adjustments in the indexes.

 

5.3                                                                             
Interruption of Index Publication

 

If the US Department of Labor substantially revises the methodology of
calculation or discontinues any of the indexes referred to hereabove, the Seller
will reflect the substitute for the revised or discontinued index selected by
ROLLS ROYCE, such substitute index to lead in application to the same adjustment
result, insofar as possible, as would have been achieved by continuing the use
of the original index as it may have fluctuated had it not been revised or
discontinued.

 

Appropriate revision of the formula will be made to accomplish this result.

 

5.4                                                                             
Annulment of Formula

 

Should the above escalation provisions become null and void by action of the
British Government, the Price will be adjusted due to increases in the costs of
labor, material and fuel which have occurred from the period represented by the
applicable A330-200 Propulsion Systems Reference Price Indexes to the
[...***...] prior to the month of Aircraft Delivery.

 

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

***  Confidential Treatment Requested

 

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

 

EXHIBIT H

 

General Conditions of Licensing of Software

 

These General Conditions of Licensing of Software (the “General Conditions”)
will provide the conditions for the supply of software developed by and
proprietary to Airbus S.A.S (“Airbus”) and licensed to Airbus North America
Customer Services, Inc. (“ANACS”) for supply and license to any user (such user,
whether provided with the software on a chargeable or free of charge basis is
referred to hereinafter as the “Buyer”). These General Conditions will be
incorporated into any product-specific license agreement entered into between
the Buyer and ANACS and will apply to any software license granted to the Buyer
to the extent not in conflict with any such product-specific agreement that
post-dates execution of these General Conditions.

 

[...***...]

 

10.                                 MISCELLANEOUS

 

10.1                           Severability

 

If a court holds any provision of these General Conditions or any part thereof
to be illegal, invalid or unenforceable, the remaining provisions and remainder
of the relevant provision will remain in full force and effect and the parties
will amend these General Conditions to give effect to the remainder of the
clause to the maximum extent possible.

 

[...***...]

 

10.2                           No Waiver

 

The failure of either party to enforce at any time any obligations hereunder or
to require performance of the same by the other party shall in no way be
construed to be a present or future waiver of such obligation.

 

10.4                           Notices

 

All notices and requests required or authorized hereunder shall be given in
writing either by registered mail (return receipt requested) or by telefax. In
the case of any such notice or request being given by registered mail, the date
upon which the answerback is recorded by the addressee or, in case of a telefax,
the date upon which it is sent a correct confirmation printout, shall be deemed
to be the effective date of such notice or request.

 

10.5         Applicable Law

 

These General Conditions shall be governed by and construed in accordance with
the laws of the State of New York, without application of conflict of laws
principles, which could result in the application of the law of any other
jurisdiction. The United Nations Convention on the International Sale of Goods,
1988, shall not apply hereto.

 

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

***  Confidential Treatment Requested

 

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

 

EXHIBIT I

 

GENERAL TERMS AND CONDITIONS OF ACCESS TO AND USE OF THE SECURE AREA OF THE
AIRBUS WORLD/ONLINE SERVICES

 

These GENERAL TERMS AND CONDITIONS OF ACCESS TO AND USE OF THE SECURE AREA OF
THE AIRBUS WORLD/ONLINE SERVICES (the “GTC”) are entered into between the
Company (as identified below) and Airbus North America Customer Services, Inc,
(“ANACS”) on the date indicated below.

 

WHEREAS Airbus S.A.S. has developed and owns Secure AirbusWorld, described
below, by which authorized users may access a variety of products and services
on line and

 

WHEREAS Airbus S.A.S. has entered into an agreement with ANACS that grants ANACS
the right to access and use the Secure AirbusWorld and allows ANACS to enter
into agreements with third parties (such as the Company) for the provision of
the same rights to such third parties, and

 

WHEREAS ANACS and the Company wish to enter into such an agreement under the
terms and conditions set forth in this GTC,

 

NOW THEREFORE, the parties, wishing to be mutually bound, hereby agree as
follows:

 

[...***...]

 

ARTICLE 11: MISCELLANEOUS

 

11.1                           The Agreement is personal to the Parties and
neither Party may assign the Agreement to a third party without the express
consent of the other Party, except that ANACS may assign all or part of its
rights and/or obligations under the Agreement to any Affiliate.

 

11.2                           The Agreement represents the entire agreement
between the Parties with respect to access to the Secure AirbusWorld and use of
Secure AirbusWorld for the Services, and renders all other previous written and
oral agreements null and void.  The Agreement may not be modified except by
written amendment signed by both Parties.

 

11.3                           Any provision of the Agreement determined to be
unlawful or unenforceable under applicable law applied by any court of competent
jurisdiction shall, to the extent required by such law, be deemed severed from
the Agreement and rendered ineffective so far as is possible without modifying
the remaining provisions. Where, however, the provisions of any such applicable
law may be waived, they are hereby waived by the Parties hereto to the fullest
extent permitted by such law, with the result that the provisions of the
Agreement shall be a valid and binding and enforceable in accordance with their
terms. The Parties agree to replace, so far as practicable, any provision which
is prohibited, unlawful or unenforceable with another provision having
substantially the same effect (in its legal and commercial content) as the
replaced provision, but which is not prohibited, unlawful or unenforceable. The
invalidity in whole or in part of any provisions of the Agreement shall not void
or affect the validity of any other provision.

 

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

***  Confidential Treatment Requested

 

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

 

11.4                           The Agreement is entered into and shall be
governed by the law of the State of New York, without application of any
conflict of laws principles that could result in the application of the law of
any other jurisdiction.

 

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

***  Confidential Treatment Requested

 

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

 

[...***...]

 

AIRBUS NORTH AMERICA CUSTOMER SERVICES, INC.

 

Duly represented by

 

Name:

 

Title:

 

 

Signature:

Date:

 

The Company

 

Hawaiian Airlines, Inc. a Delaware corporation, having its principal corporate
offices located at 3375 Koapaka Street, Suite G350, Honolulu, HI 96819-1869.

 

Duly represented by

 

Name:

 

Title:

 

 

Signature:

Date:

 

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

***  Confidential Treatment Requested

 

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

 

*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

[...***...]

 

As of January 31 2008

 

Hawaiian Airlines, Inc.

3375 Koapaka Street

Honolulu, Hawaii  96819

 

 

Re: [...***...]

 

Ladies and Gentlemen:

 

Hawaiian Airlines, Inc. (“Buyer”), and Airbus S.A.S. (“Seller”) have entered
into an Airbus A330/A350XWB Purchase Agreement, of even date herewith, which
covers the firm order by Buyer of certain A330-200 and A350XWB-800 Aircraft (the
“Purchase Agreement”).

 

[...***...]

 

2. Termination

 

The commitments of Seller set forth herein are subject to the non-occurrence of
any of the events described in this paragraph 2. If any event described in
paragraph 2(a) occurs, this [...***...] Letter Agreement and the commitments of
Seller hereunder shall automatically terminate without notice of any kind,
without any liability whatever on the part of Seller and without prejudice to
any other rights or remedies that may be exercised by Seller. If any other event
described in paragraph 2 occurs, Seller shall be entitled at any time upon
notice to Buyer to terminate this [...***...] Letter Agreement and its
commitments hereunder without any liability whatever on the part of Seller:

 

(a)

(i)                             Buyer or any other party shall commence any
case, proceeding or other action with respect to a Buyer Party in any
jurisdiction, relating to bankruptcy, insolvency, reorganization or relief from
debtors or seeking a reorganization, arrangement, winding-up, liquidation,
dissolution or other relief with respect to its debts and, solely in the case of
any party other than Buyer commencing any such case, proceeding or other action,
such case, proceeding or other action is not dismissed within [...***...]; or

 

(ii)                          Buyer is unable generally to pay its debts as they
become due.

 

(b)                         Buyer defaults under any agreement entered into
between Buyer and Seller and/or any of their respective Affiliates [...***...]
where such default continues beyond the end of any applicable grace period.

 

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***  Confidential Treatment Requested

 

LA-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(c)                          Buyer shall consolidate with or merge into any
other entity (unless Buyer is the surviving entity) or sell, convey, lease or
otherwise transfer all or a substantial part of its assets to any entity, unless
the successor entity (that is, the entity formed by such consolidation, or into
which Buyer is merged or which acquires by sale, conveyance, lease or other
transfer a substantial part of the assets of Buyer) has a tangible net worth
immediately following such consolidation, merger, sale, conveyance, lease or
other transfer at least equal to the tangible net worth of Buyer, immediately
prior to such event, provided always that any such entity shall not in any way
be a competitor of Seller or any of its subsidiaries, affiliates or associated
companies and/or an operating lessor in the business of leasing aircraft;

 

(d)                         A Buyer Termination Event shall have occurred under
the Purchase Agreement between Buyer and the Seller.

 

[...***...]

 

4. Miscellaneous Provisions

 

(a)                                  Notices

 

All notices and requests required or authorized hereunder shall be given in
writing either by personal delivery to a responsible officer of the party to
whom the same is given or by commercial courier, certified air mail (return
receipt requested) or by facsimile to the addresses and numbers set forth below.
The date upon which any such notice or request is so personally delivered or
delivered by commercial courier, certified air mail, or if such notice or
request is given by facsimile, the date upon which sent, shall be deemed to be
the effective date of such notice or request.

 

Seller shall be addressed at:

 

1, rond-point Maurice Bellonte

31700 BLAGNAC, FRANCE

 

Attention: Director - Contracts

Telephone:                                    (33) 5 61 30 40 12

Fax:                           (33) 5 61 30 40 11

 

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***  Confidential Treatment Requested

 

LA-2

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

And Buyer shall be addressed at:

 

Hawaiian Airlines, Inc.

3375 Koapaka Street, Suite G-350

Honolulu, HI  96819

USA

 

Attention:

Executive Vice President and Chief Financial Officer

Attention:

Executive Vice President and General Counsel

Telephone:

(+1-808-835-3700)

Fax:

(+1-808-835-3695)

 

or to such other address or to such other person as the party receiving the
notice or request may designate and notify the other party from time to time.

 

(b)                                 Waiver

 

The failure of one party to enforce at any time any of the provisions of this
[...***...] Letter Agreement, or to exercise any right herein provided, or to
require at any time performance by any other party of any of the provisions
hereof, will in no way be construed to be a present or future waiver by the
other party of such provisions nor in any way to affect the validity of this
[...***...] Letter Agreement or any part hereof or the right of such party
thereafter to enforce each and every provision. The express waiver by a party
hereto of any provision, condition or requirement of this [...***...] Letter
Agreement shall not constitute a waiver of any future obligation to comply with
such provision, condition or requirement.

 

(c)                                  Interpretation and Law

 

THIS [...***...] LETTER AGREEMENT [...***...] WILL BE GOVERNED BY AND CONSTRUED,
AND THE PERFORMANCE THEREOF WILL BE DETERMINED, IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK WITHOUT APPLICATION OF ANY CONFLICT OF LAWS PROVISIONS
THAT COULD RESULT IN THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

 

Buyer and Seller (i) hereby irrevocably submits itself to the non-exclusive
jurisdiction of the courts of the State of New York, New York County, and to the
non-exclusive jurisdiction of the United States District Court for the Southern
District of New York, for the purposes of any suit, action or other proceeding
arising out of this [...***...] Letter Agreement, the subject matter hereof or
any of the transactions contemplated hereby, and (ii) hereby waives, and agrees
not to assert, by way of motion, as a defense, or otherwise, in any such suit,
action or proceeding, to the extent permitted by applicable law, any defense
based on sovereign or other immunity or that any suit, action or proceeding is
brought in an inconvenient forum, that the venue of such suit, action or
proceeding is

 

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*** Confidential Treatment Requested

 

LA-3

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

improper, or that this [...***...] Letter Agreement or the subject matter hereof
or any of the transactions contemplated hereby may not be enforced in or by such
courts.

 

[...***...]

 

(e)                                  Severability

 

In the event that any provision of this [...***...] Letter Agreement should for
any reason be held to be without effect, the remainder of this [...***...]
Letter Agreement shall remain in full force and effect. To the extent permitted
by applicable law, each party hereto hereby waives any provision of law that
renders any provision of this [...***...] Letter Agreement prohibited or
unenforceable in any respect.

 

(f)                                    Alterations to Contract

 

This [...***...] Letter Agreement contains the entire agreement between the
parties with respect to the subject matter hereof and supersedes any previous
understanding, commitments or representations whatsoever, oral or written. This
[...***...] Letter Agreement may not be varied except by an instrument in
writing of even date herewith or subsequent hereto made by both parties.

 

(g)                                 Language

 

All correspondence, documents and any other written matters in connection with
this [...***...] Letter Agreement shall be in English.

 

(h)                                 Headings

 

All headings in this [...***...] Letter Agreement are for convenience of
reference only and do not constitute a part of this [...***...] Letter
Agreement.

 

(i)                                     Counterparts

 

This [...***...] Letter Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute but one and the
same instrument.

 

(k)                                  Representations and Warranties

 

                                                The Buyer represents and
warrants to the Seller:

 

(i)                  the Buyer is a corporation organized and existing in good
standing under the laws of the State of Delaware and has the corporate power and
authority to enter into and perform its obligations under this [...***...]
Letter Agreement;

 

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LA-4

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(ii)

neither the execution and delivery by the Buyer of this [***] Letter Agreement,
nor the consummation of any of the transactions by the Buyer contemplated
hereby, nor the performance by the Buyer of the obligations hereunder,
constitutes a breach of any agreement to which the Buyer is a party or by which
its assets are bound;

 

 

(iii)

this [***] Letter Agreement has been duly authorized, executed and delivered by
the Buyer and constitutes the legal, valid and binding obligation of the Buyer
enforceable against the Buyer in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium and other
similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles.

 

The Seller represents and warrants to the Buyer:

 

(i)

the Seller is organized and existing in good standing under the laws of the
Republic of France and has the corporate power and authority to enter into and
perform its obligations under this [***] Letter Agreement;

 

 

(ii)

neither the execution and delivery by the Seller of this [***] Letter Agreement,
nor the consummation of any of the transactions by the Seller contemplated
thereby, nor the performance by the Seller of the obligations there under,
constitutes a breach of any agreement to which the Seller is a party or by which
its assets are bound;

 

 

(iii)

this [***] Letter Agreement has been duly authorized, executed and delivered by
the Seller and constitutes the legal, valid and binding obligation of the Seller
enforceable against the Seller in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium and other
similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles.

 

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*** Confidential Treatment Requested

 

LA-5

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below and return a copy
to Airbus S.A.S.

 

 

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

Accepted and Agreed:

 

HAWAIIAN AIRLINES, INC.

 

 

By:

 

 

 

Name:

 

Title:

 

 

By:

 

 

 

Name:

 

Title:

 

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*** Confidential Treatment Requested

 

LA-6

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

 

*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 1A

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.,

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement.  The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 1A  (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft.  Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement.  The terms “herein,” “hereof”
and “hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

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LA1A-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

CONTENTS

 

PARAGRAPHS

 

0 -

DEFINITIONS

 

 

 

 

1 -

GENERAL

 

 

 

 

2 -

INITIAL PROVISIONING

 

 

 

 

3 -

STORES

 

 

 

 

4 -

DELIVERY

 

 

 

 

5 -

PRICE

 

 

 

 

6 -

PAYMENT PROCEDURES AND CONDITIONS

 

 

 

 

7 -

TITLE

 

 

 

 

8 -

PACKAGING

 

 

 

 

9 -

DATA RETRIEVAL

 

 

 

 

10 -

BUY-BACK

 

 

 

 

11 -

WARRANTIES

 

 

 

 

12 -

LEASING

 

 

 

 

13 -

TERMINATION

 

 

 

 

14 -

ASSIGNMENT

 

 

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LA1A-2

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

0.

DEFINITIONS

 

 

 

Aircraft:

 

[...***...]

 

 

 

ANACS Spares Center:

 

as defined in 3.1

 

 

 

ASC:

 

as defined in 2.3.1

 

 

 

Expedite Service:

 

as defined in 4.2.3

 

 

 

Initial Provisioning Conference:

 

as defined in 2.5

 

 

 

Initial Provisioning Data:

 

as defined in 2.1

 

 

 

Initial Provisioning Period:

 

[...***...]

 

 

 

Leased Parts:

 

as defined in Clause 12

 

 

 

Lessor:

 

as defined in Clause 12

 

 

 

Lessee:

 

as defined in Clause 12

 

 

 

Lease:

 

as defined in Clause 12

 

 

 

Lease Term:

 

as defined in Clause 12

 

 

 

Leased Charges:

 

as defined in Clause 12

 

 

 

BER:

 

as defined in 12.1

 

 

 

Material:

 

as defined in 1.1

 

 

 

Material Support:

 

as defined in 1.1

 

 

 

MRO:

 

A MAINTENANCE AND REPAIR ORGANIZATION CERTIFIED UNDER PART 142 OF THE FEDERAL
AVIATION REGULATIONS

 

 

 

Preprovisioning Meeting:

 

as defined in 2.3.1

 

 

 

Term:

 

as defined in 1.2.3

 

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LA1A-3

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

1.                                                                                      
GENERAL

 

1.1                                                                                
Material

 

This Letter Agreement covers the terms and conditions for the services
(“Material Support”) offered by the Seller to the Buyer in respect of the
Aircraft spare parts listed below in Paragraphs 1.1(a) through
1.1(f) (“Material”) and is intended by the parties to be and will constitute an
agreement of conditional sale of all Material furnished to the Buyer by the
Seller pursuant hereto, except as to Material leased to the Buyer pursuant to
Paragraph 12 of this Letter Agreement.

 

The Material will comprise:

 

(a)                                                                                 
Seller Parts (defined as industrial proprietary components, equipment,
accessories or parts of the Seller manufactured to the detailed design of the
Seller or a subcontractor of it and bearing official part numbers of the Seller
or material for which the Seller has exclusive sales rights in the United
States).

 

(b)                                                                                
Supplier Parts classified as Repairable Line Maintenance Parts in accordance
with SPEC 2000.

 

(c)                                                                                 
Supplier Parts classified as Expendable Line Maintenance Parts in accordance
with SPEC 2000.

 

(d)                                                                                
Ground Support Equipment and Specific (To-Type) tools.

 

(e)                                                                                 
Hardware and standard material as a package.

 

(f)                                                                                   
Consumables and raw material as a package.

 

It is expressly understood that Seller Parts will not include parts manufactured
pursuant to a parts manufacturing authority.

 

Material covered under Paragraphs 1.1(e) and 1.1(f) is available only as a
package when supplied as part of the Initial Provisioning, as defined in
Paragraph 1.2 below.

 

1.2                                                                                                        
Scope of Material Support

 

1.2.1                        The Material Support to be provided by the Seller
hereunder covers the following:

 

(a)                                                                                 
all Material purchased by the Buyer from the Seller during the Initial
Provisioning Period  (the “Initial Provisioning”) and all items in Paragraphs
1.1(a) through 1.1(d) for purchases additional to the Initial Provisioning, and

 

(b)                                                                                
the Seller’s leasing of Seller Parts to the Buyer for the Buyer’s use on its
Aircraft in commercial air transport service as set forth in Paragraph 12 of
this Letter

 

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LA1A-4

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

Agreement.

 

1.2

Propulsion Systems, engine exchange kits, their accessories and parts, including
associated parts and spare parts therefore, are not covered under this Letter
Agreement and will be subject to direct negotiations between the Buyer and the
Propulsion Systems manufacturer(s).

 

 

1.2.3

[***] (the “Term”), the Seller will maintain or cause to be maintained such
stock of Seller Parts as the Seller deems reasonable based upon its reasonable
commercial judgment and historical statistical records and will furnish at
reasonable prices Seller Parts adequate to meet the Buyer’s needs for
maintenance of the Aircraft. Such Seller Parts will be sold and delivered in
accordance with Paragraphs 4 and 5 of this Letter Agreement, upon receipt of the
Buyer’s orders.

 

 

1.3

Purchase Source of Material

 

 

 

The Buyer agrees to purchase from the Seller’s designee, ANACS, the Seller Parts
required for the Buyer’s own needs during the Term, provided that the provisions
of this Paragraph 1.3 will not in any way prevent the Buyer from resorting to
the stocks of Seller Parts of other operators using the same aircraft type or
model or from purchasing Seller Parts from said operators or from distributors,
or from MROs, so long as said Seller Parts have been originally designed and
manufactured by the Seller.

 

 

1.4

Manufacture of Material by the Buyer

 

 

1.4.1

The provisions of Paragraph 1.3 of this Letter Agreement notwithstanding, the
Buyer may manufacture or have manufactured Seller Parts for its own use in the
following cases:

 

 

(a)

after expiration of the Term, provided that such time the Seller is out of stock
of a required Seller Part;

 

 

(b)

at any time, to the extent Seller Parts are needed to effect AOG repairs on any
Aircraft and are not available from the Seller within a lead time shorter than
or equal to the time in which the Buyer can procure said Seller Parts from
another source, provided the Buyer will sell or lease such Seller Parts only if
they are assembled in an Aircraft that is sold or leased;

 

 

(c)

at any time, if the Seller fails to fulfill its obligations with respect to any
Seller Parts pursuant to Paragraph 1.2 above within a reasonable period after
written notice thereof from the Buyer; and

 

 

(d)

at any time, if with respect to certain Seller Parts, the Seller has granted,
under the

 

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LA1A-5

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

 

Illustrated Parts Catalog supplied in accordance with this Letter Agreement, the
right of local manufacture of Seller Parts.

 

 

1.4.2

The rights granted to the Buyer in Paragraph 1.4.1 will not in any way be
construed as a license, nor will they in any way obligate the Buyer to pay any
license fee, royalty or obligation whatsoever, nor will they in any way be
construed to affect the rights of third parties.

 

 

1.4.3

If the Buyer manufactures or has manufactured any parts pursuant to Paragraph
1.4.1, such part and any use made of the manufactured parts shall be under the
sole liability of the Buyer and the consent given by the Seller will not be
construed as express or implicit approval of the Buyer or of the manufactured
parts.

 

 

 

It is the Buyer’s sole responsibility to ensure that such manufacturing is
performed in accordance with the relevant procedures and Aviation Authority
requirements.

 

 

 

EXCEPT IN THE CASE OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT ON THE PART OF THE
SELLER, THE SELLER WILL NOT BE LIABLE FOR, AND THE BUYER WILL INDEMNIFY THE
SELLER AGAINST, ANY CLAIMS FROM ANY THIRD PARTIES FOR LOSSES DUE TO ANY DEFECT
OR NON-CONFORMITY OF ANY KIND, ARISING OUT OF OR IN CONNECTION WITH ANY
MANUFACTURING OF ANY PART UNDERTAKEN BY THE BUYER, OR CAUSED TO BE UNDERTAKEN BY
THE BUYER, UNDER PARAGRAPH 1.4.1 OR ANY OTHER ACTIONS UNDERTAKEN BY THE BUYER
UNDER THIS LETTER AGREEMENT, WHETHER SUCH CLAIM IS ASSERTED IN CONTRACT OR IN
TORT, OR IS PREMISED ON ALLEGED, ACTUAL, IMPUTED, ORDINARY OR NEGLIGENT ACTS OR
OMISSIONS OF THE BUYER.

 

 

1.4.4

The Buyer will allocate, or cause to be allocated, its own part number to any
part manufactured, or caused to be manufactured, in accordance with Paragraph
1.4.1. The Buyer will not use, or cause to be used, the Airbus part number of
the Seller Part to which such manufactured part is equivalent.

 

 

1.4.5

The Buyer will not sell or loan any part manufactured under the provisions of
Paragraph 1.4.1 to any third party, except in connection with customary pooling
or interchange arrangements.

 

 

1.4.6

The Seller will provide the Buyer with all technical data reasonably necessary
to manufacture Seller Parts, in the event the Buyer is entitled to do so
pursuant to Paragraph 1.4.1 of this Letter Agreement. The confidentiality of,
and proprietary

 

 

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*** Confidential Treatment Requested

 

LA1A-6

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

rights to such technical data will be subject to the terms of Clauses 14.16 and
14.12, respectively, of the Agreement.

 

2.

INITIAL PROVISIONING

 

 

2.1

Seller-Supplied Data

 

 

 

The Seller will prepare and supply to the Buyer the following data:

 

 

(a)

Initial Provisioning Data - Seller

 

 

 

The Seller will provide the Buyer initial provisioning data generally in
accordance with the applicable ATA Specification (“Initial Provisioning Data”)
in a form, format and within a time period to be mutually agreed upon during the
Preprovisioning Meeting defined in Paragraph 2.3.1 below.

 

 

 

[...***...]

 

 

 

The Seller will ensure that Initial Provisioning Data are released to the Buyer
in time to allow evaluation thereof by the Buyer and on-time delivery of
Material that is ordered by the Buyer.

 

 

(b)

Supplementary Data

 

 

 

The Seller will provide the Buyer with Local Manufacture Tables (X-File), and
Ground Support Equipment and Specific to-type Tools (W-File) and a Pool Item
Candidate List (Y-File) as a part of the Initial Provisioning Data package.

 

 

(c)

Data for Standard Hardware

 

 

 

The Initial Provisioning Data provided to the Buyer shall include data for
hardware and standard material.

 

 

2.2.1

Supplier-Supplied Data

 

 

(a)

General

 

 

 

Suppliers will prepare and issue for their own products repair/overhaul Initial
Provisioning data in the English language for those Supplier components for
which the Buyer has elected to receive data.

 

 

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LA1A-7

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

Said data (initial issue and revisions) will be transmitted to the Buyer through
the Suppliers and/or the Seller. The Seller will not be responsible for the
substance, accuracy and quality of such data.

 

The Seller will  make reasonable efforts to supply Initial Provisioning Data to
the Buyer to allow evaluation thereof  by the Buyer and on-time delivery by the
Seller of the Material ordered by the Buyer.

 

(b)                                                                                              
Initial Provisioning Data – Supplier

 

Initial Provisioning Data for Supplier products provided for Clause
1.1(a) herein in the applicable ATA Specification will be furnished as mutually
agreed upon during the Preprovisioning Meeting, with free of charge revision
service assured up to the end of the Initial Provisioning Period.

 

2.3                                                                                              
Preprovisioning Meeting

 

2.3.1                                                                          
The Seller will organize a meeting (i) at the Airbus spares center in Hamburg,
Germany (“ASC”), or (ii) at ANACS, or (iii) at a place to be mutually agreed, in
order to formulate an acceptable schedule and working procedure to accomplish
the Initial Provisioning of Material (the “Preprovisioning Meeting”).

 

2.3.2                                                                      The
date of the Preprovisioning Meeting will be mutually agreed upon, but it will
take place no earlier than three (3) months after the Agreement will have taken
effect and no later than eighteen (18) months before delivery of the Buyer’s
first Aircraft.

 

2.4                                 Initial Provisioning Training

 

The Seller will furnish, at the Buyer’s request and at no charge to the Buyer,
training courses related to the Seller’s provisioning documents, purchase order
administration and handling at ASC. The areas covered in these training courses
are (i) familiarization of the Buyer with the provisioning; (ii) explanation of
the technical function as well as the technical and commercial Initial
Provisioning Data; and (iii) familiarization with the Seller’s purchase order
administration system.

 

2.5                                 Initial Provisioning Conference

 

The Seller will organize an Initial Provisioning conference at ASC or ANACS that
will include participation of major Suppliers, as agreed upon during the
Preprovisioning Meeting (the “Initial Provisioning Conference”).

 

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LA1A-8

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

                                              Such Initial Provisioning
Conference will take place no earlier than eight (8) weeks after Manufacturer
Serial Number allocation, Buyer Furnished Equipment selection or Contractual
Definition Freeze, whichever last occurs, if the first Aircraft is new, or if
the first Aircraft is used, no earlier than eight weeks after the supply by the
Buyer of the necessary data for the used Aircraft.

 

2.6                                 Initial Provisioning Data Compliance

 

2.6.1                                                                     
Initial Provisioning Data generated by the Seller and supplied to the Buyer will
comply with the latest configuration of the Aircraft to which such data relate,
as known three (3) months before the data are issued, with respect to the new
Aircraft.

 

                                                                                             
Initial Provisioning Data generated by the Seller and supplied to the Buyer with
respect to used Aircraft, will be based on the Buyer supply of the appropriate
documents for such Aircraft. To the extent possible the Seller will provide
reasonable assistance to the Buyer in accumulating the necessary data.

 

This provision will not cover Buyer modifications unknown to the Seller, or
modifications not agreed to by the Seller.

 

2.6.2                                                                     
During the Initial Provisioning Period, Material will conform with  the Initial
Provisioning Data transmitted by the Seller. Should the Seller default in this
obligation, it will immediately replace such parts and/or authorize return
shipment at no transportation cost to the Buyer. The Buyer will make reasonable
efforts to minimize such cost.  The Seller, in addition, will use its reasonable
efforts to cause Suppliers to provide a similar service for their items.

 

2.7                                 Delivery of Initial Provisioning Material

 

2.7.1                                                                     
Provided that orders are received by the Seller in accordance with the leadtime
published in the Seller’s Spare Parts Price Catalog, the Seller will deliver
Initial Provisioning Material in accordance with the Buyer’s orders, subject to
reasonable quantities.

 

2.7.2                                                                      The
Buyer, subject to the Seller’s agreement, may cancel or modify Initial
Provisioning orders placed with the Seller with no cancellation charge as
follows:

 

(a)                                                                               
Material having a lead times [...***...], not later than [...***...] before
scheduled delivery of said Material,

 

(b)                                                                              
Material with a lead-time [...***...], not later than [...***...] before
scheduled delivery of said Material,

 

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LA1A-9

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(c)                                                                               
Buyer-specific Material and Material described in Paragraphs 1.1(b) through
1.1(f), [...***...] before scheduled delivery of said Material.

 

2.7.3                                                                     
[...***...]

 

[...***...]

 

3.                                       STORES

 

3.1                                 ANACS Spares Center

 

The Seller has established a US store located near Dulles International Airport,
Washington, DC, known as the ANACS Spares Center - Washington (“ANACS Spares
Center”).  The ANACS Spares Center will be operated twenty-four (24) hours/day,
seven (7) days/week, all year for the handling of AOG and critical orders for
Seller Parts.

 

3.2                                 Material Support Center, Germany

 

The Seller has established a store of Seller Parts at ASC. ASC will be operated
twenty-four (24) hours per day, seven (7) days per week, twelve months a year.

 

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*** Confidential Treatment Requested

 

LA1A-10

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3.3                                 Other Points of Shipment

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

The Seller reserves the right to effect deliveries from distribution centers
other than the ANACS Spares Center or ASC and from any of the production
facilities of the Suppliers.

 

4.                                       DELIVERY

 

4.1                                 General

 

The Buyer’s purchase orders will be administered in accordance with ATA
Specification 2000, Chapter 3.

 

The provisions of Paragraph 4.2 of this Letter Agreement do not apply to Initial
Provisioning Data or Material as described in Paragraph 2 of this Letter
Agreement.

 

4.2                                 Lead Times

 

4.2.1                                                                      In
general, the lead times are (and, unless otherwise agreed, will at all times be)
in accordance with the definition in the “World Airline and Suppliers Guide”
(latest edition).

 

4.2.2                                                                     
Seller Parts described in Paragraph 1.1.(a) are published in the Seller’s Spare
Parts Price Catalog or on Airbus/Spares and will be dispatched within the lead
times quoted in such catalog. The lead times for Seller Parts described in
Paragraph 1.1 (a) which are not published in the Seller’s Spare Parts Price
Catalog are quoted upon request. Supplier Parts as described in Paragraph
1.1.(b) through 1.1(d), can be dispatched within the  supplier’s leadtime
augmented by the Seller’s own order and delivery processing time (such in-house
processing time not to exceed fifteen (15) days).

 

4.2.3                        Expedite Service

 

The Seller operates a twenty-four (24) hour-a-day, seven (7) day-a-week expedite
service to supply the relevant Seller Parts available in the Seller’s stock,
workshops and assembly line, including high-cost/long- lead-time items, to the
international airport nearest the location of such items (the “Expedite
Service”).

 

The Expedite Service is operated in accordance with the “World Airlines and
Suppliers Guide.”  Accordingly, the Seller will notify the Buyer of the action
taken to effect the Expedite Service as follows:

 

(a)                                                                               
four (4) hours after receipt of an AOG order,

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(b)                                                                              
twenty-four (24) hours after receipt of a critical order (imminent AOG or work
stoppage),

 

(c)                                                                               
seven (7) days after receipt of an expedite order from the Buyer.

 

The Seller and its subcontractors will deliver Seller Parts requested on
expedite basis against normal orders previously placed by the Buyer or upon
requests by telephone or facsimile by the Buyer’s representatives, such requests
to be confirmed by the Buyer’s subsequent order for such Seller Parts within a
reasonable time.

 

In the case of an AOG, the Seller shall make all commercially reasonable efforts
to assist the Buyer in obtaining the needed Seller Parts within the shortest
possible time.

 

4.3                                 Delivery Status

 

The Seller agrees to report to the Buyer the status of supplies against orders
on a monthly basis or on a mutually agreed timeframe.

 

4.4                                                                              
INTENTIONALLY DELETED

 

4.5                                 Shortages, Overshipments, Nonconformance in
Orders

 

4.5.1                                                                     
Within thirty (30) days after receipt of Material, the Buyer will advise the
Seller of any alleged shortages or overshipments with respect to such purchase
order and of all claimed nonconformance to specification of parts in such order.

 

4.5.2                                                                      If
the Buyer reports overshipments or nonconformance to the specifications within
such period, the Seller will, if such report is verified by the Seller, either
replace the Material concerned or credit the Buyer for Material returned. In
such case, transportation charges for the nonconforming or overshipments of
parts will be borne by the Seller.

 

The Buyer will endeavor to minimize such costs, particularly by using its own
airfreight system for transportation at no charge to the Seller.

 

4.6                                 Cessation of Deliveries

 

The Seller reserves the right to restrict, stop or otherwise suspend deliveries
if the Buyer fails to meet its obligations under Paragraphs 6 and 7, provided
that before stopping or suspending deliveries Seller has given five (5) Business
Days written notice to the Buyer of Seller’s intention to do so.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

5.                                       PRICE

 

5.1                                                                                
The Material prices will be:

 

[...***...]

 

5.2                                 Validity of Prices

 

5.2.1                                                                        The
Material prices are the Seller’s published prices in effect on the date of
receipt of the purchase order (subject to reasonable quantities and delivery
time) and will be expressed in US dollars. Payment will be made by the Buyer to
the Seller in US dollars.

 

5.2.2                                                                     
Prices of Seller Parts will be in accordance with the then current ANAC’s Spare
Parts Price Catalog and Repair Guide. Prices will be firm for each calendar
year, except that the Seller reserves the right to revise the prices of Seller
Parts during the course of the calendar year in the following cases:

 

·                  abnormal revision in manufacturing costs,

 

·                  abnormal revision in Seller’s purchase price of materials
(including significant variation of exchange rates),

 

·                  significant error in estimation or expression of any price.

 

5.2.3                                                                     
Prices of Material identified in Paragraphs 1.1(b) through 1.1(d)  will be
[...***...].

 

[...***...]

 

6.                                       PAYMENT PROCEDURES AND CONDITIONS

 

6.1                                 Intentionally deleted

 

6.2                                 Time and Means of Payment

 

Payment will be made by transfer of immediately available funds from the Buyer
to the Seller and, so long as the Buyer makes payments when due, will be payable

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

within thirty (30) days from the date of invoice. Such invoices will be
expressed in US Dollars.

 

6.3                                 Bank Accounts

 

The Buyer will make all payments hereunder in full without setoff, counterclaim,
deduction or withholding of any kind to the accounts listed below, unless
otherwise directed by the Seller:

 

(a)                                                                               
For wire transfer, in favor of Airbus North America Customer Services, Inc.:

 

[...***...]

 

(b)                                                                              
For direct deposit (lockbox), in favor of Airbus North America Customer
Services, Inc.:

 

Airbus North America Customer Services, Inc.:

PO Box 8500

Lock Box No. 4555

Philadelphia, PA 19178-4555

 

6.4                                 Taxes

 

All payments due the Seller hereunder will be made in full without setoff or
counterclaim and without deduction or withholding of any kind.  Consequently,
the Buyer will assure that the sums received by the Seller under this Letter
Agreement  are equal to the full amounts expressed to be due the Seller
hereunder, without deduction or withholding on account of and free from any and
all taxes, levies, imposts, dues or charges of whatever nature except that if
the Buyer is compelled by law to make any such deduction or withholding the
Buyer will pay such additional amounts as may be necessary in order that the net
amount received by the Seller after such deduction or withholding will equal the
amounts that would have been received in the absence of such deduction or
withholding.

 

6.5                                                                              
Except with respect to unpaid amounts of invoices that are subject to good faith
dispute by the Buyer, and provided that the Buyer has notified Seller of such
dispute no later than ten (10) days after the date of the invoice, if any
payment due the Seller is not received in accordance with the time period
provided above in Paragraph 6.2, the Seller will have the right to claim from
the Buyer and the Buyer will promptly pay to the Seller interest on the unpaid
amount [...***...] to be calculated from (and including) the due date to (but
excluding) the date

 

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LA1A-14

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

payment is received by the Seller.  The Seller’s claim to such interest will not
prejudice any other rights the Seller may have under this Letter Agreement or
applicable law.

 

[...***...]

 

7.                                                                                      
             TITLE

 

[...***...]

 

The Buyer will not permit the imposition on any Material for which it has not
paid in full any lien, debenture, security interest or other similar interest
charge or claim in favor of any third party, [...***...].

 

8.                                       PACKAGING

 

All Material will be packaged in accordance with the applicable ATA
Specification.

 

9.             DATA RETRIEVAL

 

The Buyer undertakes to provide periodically to the Seller, as the Seller may
reasonably request, during the Term, a quantitative list of the Material used
for maintenance and overhaul of the Aircraft.  The range and contents of this
list will be established by mutual agreement between the Seller and the Buyer.

 

10.                                 BUY-BACK

 

10.1                           Buy-Back of Material

 

The Seller agrees to buy back unused Seller Parts that may no longer be
incorporated in the Aircraft as a result of mandatory modifications required by
the Buyer’s or Seller’s Aviation Authorities, before Delivery of the first
A330-200 Aircraft to the Buyer subject to the following:

 

(a)                                                                               
the Seller Parts involved will be those which the Seller directs the Buyer to
scrap or dispose of and which cannot be reworked or repaired to satisfy the
revised standard;

 

(b)                                                                              
the Seller will grant the Buyer a credit equal to the purchase price paid by the
Buyer for any such parts, such credit being limited to quantities ordered in the
Initial Provisioning recommendation;

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(c)                                                                               
the Seller will use its reasonable efforts to obtain for the Buyer the same
protection from Suppliers.

 

10.2                           Buy-Back of Surplus Material

 

10.2.1                                                                     The
Seller agrees that at any time after [...***...] Delivery of the first A330-200
Aircraft to the Buyer, the Buyer will have the right to return to the Seller, at
a credit of [...***...]of the original purchase price paid by the Buyer, unused
and undamaged Material described in Paragraphs 1.1(a) and 1.1(b) originally
purchased from the Seller under the terms hereof, provided (i) that the selected
protection level does not exceed ninety-six percent (96%) with a turnaround time
of [...***...], (ii) that said Material does not exceed the provisioning
quantities recommended by the Seller in the Initial Provisioning
recommendations, does not have a limited shelf life nor contain any shelf-life
limited components with [...***...] of their shelf life remaining when returned
to the Seller, and (iii) that the Material is returned with the Seller’s
original documentation (or electronic copies of such documentation) and any such
documentation (including tags, certificates) required to identify, substantiate
the condition of and enable the resale of such Material.

 

10.2.2                                                                The
Seller’s agreement in writing is necessary before any Material in excess of the
Seller’s recommendation may be considered for buy-back.

 

10.2.3                                                                It is
expressly understood and agreed that the rights granted to the Buyer under this
Paragraph 10.2 will not apply to Material that may become obsolete at any time
or for any reason other than as set forth in Paragraph 10.1 above.

 

10.2.4                                                               
[...***...].

 

10.3                                                                         All
transportation costs for the return of obsolete and surplus Material under this
Paragraph 10, including any applicable insurance and customs duties or other
related expenditures, will be borne by the Seller.

 

10.4                                                                         The
Seller’s obligation to repurchase Material under this paragraph 10 is subject to
the Buyer’s compliance with the requirements set forth in Paragraph 9 of this
Letter Agreement.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

11.1                           WARRANTIES ON SELLER PARTS

 

11.1.1                                                                Nature of
Warranty

 

                                              Subject to the limitations and
conditions hereinafter provided, and except as provided in Paragraph 11.1.2, the
Seller warrants to the Buyer that each Seller Part will at the time of Delivery
to the Buyer be free from defects:

 

(i)                                                                                  
in material,

 

(ii)                                                                               
in workmanship, including, without limitation, processes of manufacture, and

 

(iii)                                                                            
arising from failure to conform to the Specification, except as to those
portions of the Specification that are expressly stated in the Specification to
be estimates or approximations or design aims.

 

11.1.2                                                               
[...***...]

 

11.1.3                                                                Warranty
Periods

 

                                                                                             
For new Seller Parts, the warranties described in Paragraph 11.1.1 will be
limited to those defects that become apparent within [...***...] after delivery
of the Seller Part.

 

                                                                                             
For used Seller Parts, the warranties described in Paragraph 11.1 will be
limited to those defects that become apparent within [...***...] after delivery
of the Seller Part, [...***...].

 

11.1.4                                                               
Limitations of Warranty

 

The Buyer’s remedy and the Seller’s obligation and liability under Paragraphs
11.1 are limited to, at the Seller’s expense and option acting in a commercially
reasonable manner, the repair, replacement or correction of, or the supply of
modification kits rectifying the defect to any defective Seller Part.

 

[...***...]

 

11.2                                              EXCLUSIVITY OF WARRANTIES

 

THIS PARAGRAPH 11 (INCLUDING ITS SUBPARTS) SETS FORTH THE EXCLUSIVE WARRANTIES,
EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF THE SELLER, AND THE EXCLUSIVE
REMEDIES AVAILABLE TO THE BUYER, WHETHER UNDER THIS LETTER AGREEMENT OR
OTHERWISE, ARISING FROM ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND IN
ANY SELLER PART DELIVERED BY THE SELLER UNDER THIS AGREEMENT.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

THE BUYER RECOGNIZES THAT THE RIGHTS, WARRANTIES AND REMEDIES IN THIS PARAGRAPH
11 ARE ADEQUATE AND SUFFICIENT TO PROTECT THE BUYER FROM ANY DEFECT OR
NONCONFORMITY OR PROBLEM OF ANY KIND IN THE SELLER PARTS SUPPLIED UNDER THIS
LETTER AGREEMENT.  THE BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER
WARRANTIES, OBLIGATIONS, GUARANTEES AND LIABILITIES OF THE SELLER AND ALL OTHER
RIGHTS, CLAIMS AND REMEDIES OF THE BUYER AGAINST THE SELLER AND ITS SUPPLIERS,
WHETHER EXPRESS OR IMPLIED BY CONTRACT, TORT, OR STATUTORY LAW OR OTHERWISE,
WITH RESPECT TO ANY NONCONFORMITY OR DEFECT OR PROBLEM OF ANY KIND IN ANY SELLER
PART DELIVERED BY THE SELLER UNDER THIS LETTER AGREEMENT, INCLUDING BUT NOT
LIMITED TO:

 

(8)                                                                                 
ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR ANY GENERAL OR
PARTICULAR PURPOSE;

 

(9)                                                                                 
ANY IMPLIED OR EXPRESS WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF
DEALING OR USAGE OF TRADE;

 

(10)                                                                           
ANY RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

 

(11)                                                                           
ANY RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF LIABILITY, HOWEVER
ALLEGED, INCLUDING, BUT NOT LIMITED TO, ACTIONS AND/OR CLAIMS FOR NEGLIGENCE,
IMPLIED WARRANTY, PRODUCT LIABILITY, STRICT LIABILITY OR FAILURE TO WARN;

 

(12)                                                                           
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER THE UNIFORM COMMERCIAL CODE OR ANY
OTHER STATE OR FEDERAL STATUTE;

 

(13)                                                                           
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER ANY REGULATIONS OR STANDARDS IMPOSED BY
ANY INTERNATIONAL, NATIONAL, STATE OR LOCAL STATUTE OR AGENCY;

 

(14)                                                                           
ANY RIGHT, CLAIM OR REMEDY TO RECOVER OR BE COMPENSATED FOR:

 

(15)                                                                           
LOSS OF USE OR REPLACEMENT OF ANY AIRCRAFT, OR PART PROVIDED UNDER THE AGREEMENT
DUE TO A DEFECT, NONCONFORMITY OR OTHER PROBLEM IN ANY SELLER PART;

 

(16)                                                                           
LOSS OF, OR DAMAGE OF ANY KIND TO, ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY
OR PART DUE TO A DEFECT, NONCONFORMITY OR OTHER PROBLEM IN ANY SELLER PART;

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(17)                                                                           
LOSS OF PROFITS AND/OR REVENUES;

 

(18)                                                                           
ANY OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGE.

 

(19)                                                                           
THE WARRANTIES PROVIDED BY THIS AGREEMENT WILL NOT BE EXTENDED, ALTERED OR
VARIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED BY THE SELLER AND THE BUYER.  IN
THE EVENT THAT ANY PROVISION OF THIS PARAGRAPH 11 SHOULD FOR ANY REASON BE HELD
UNLAWFUL, OR OTHERWISE UNENFORCEABLE, THE REMAINDER OF THIS PARAGRAPH 11 WILL
REMAIN IN FULL FORCE AND EFFECT.

 

                                                                                               
FOR THE PURPOSE OF PARAGRAPHS 11.1.2 AND 11.2, “SELLER” WILL BE UNDERSTOOD TO
INCLUDE THE SELLER, ITS AFFILIATES AND SUBCONTRACTORS.

 

11.3                           PATENT AND COPYRIGHT INDEMNITIES

 

The terms and conditions of Clause 13 of the Agreement shall apply to Seller
Parts purchased by the Buyer or replaced by the Seller under this Letter
Agreement.

 

11.4                           DUPLICATE REMEDIES

 

The remedies provided to the Buyer under this Paragraph 11 as to any part
thereof are independent but not cumulative nor duplicative.  The Buyer shall be
entitled to the remedy and/or remedies under Paragraph 11 that provides the
maximum but not duplicative benefit to it, as the Buyer may elect, pursuant to
the terms and conditions of this Paragraph 11 for any such particular defect for
which remedies are provided under this Paragraph 11; provided, however, that the
Buyer will not be entitled to elect a remedy under one part of this Paragraph 11
that constitutes a duplication of any remedy elected by it under any other part
hereof for the same defect unless such defects occur as separate incidents at
separate times.

 

11.5                           NEGOTIATED AGREEMENT

 

The Buyer and Seller agree that this Paragraph 11 has been the subject of
discussion and negotiation and is fully understood by the parties, and that the
price of the Aircraft and the other mutual agreements of the parties set forth
in the Agreement were arrived at in consideration of, inter alia, the
Exclusivity of Warranties and General Limitations of Liability provisions and
Duplicate Remedies provisions set forth in this Paragraph 11.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.                                 LEASING OF SPARE PARTS

 

12.1                           Applicable Terms

 

The terms and conditions of this Paragraph 12 will apply to the Lease of Seller
Parts listed in Appendix “A” to this Paragraph 12 (“Leased Parts”) and will form
a part of each lease of any Leased Part by the Buyer from the Seller after the
date hereof.  Except for the description of the Leased Part, the Lease Term, the
Leased Part delivery and return locations and the Lease Charges (defined below
in Paragraph 12.4), all other terms and conditions appearing on any order form
or other document pertaining to Leased Parts will be deemed inapplicable, and in
lieu thereof the terms and conditions of this Paragraph 12 will prevail.  For
purposes of this Paragraph 12, the term “Lessor” refers to the Seller and the
term “Lessee” refers to the Buyer.  Parts not included in Appendix “A” to this
Paragraph 12 may be supplied under a separate lease agreement between the Seller
and the Buyer, in accordance with the terms and conditions set forth in the then
current Airbus Proprietary Parts Repair Guide.

 

12.2                           Lease Procedure: Spare Parts Leased

 

At the Lessee’s request by telephone (to be confirmed promptly in writing),
facsimile, letter or other written instrument, the Lessor will lease Leased
Parts, which will be made available in accordance with Paragraph 4.2.3 , to the
Lessee as substitutes for parts withdrawn from an Aircraft for repair or
overhaul.  Each lease of Leased Parts will be evidenced by a lease document
(“Lease”) issued by the Lessor to the Lessee no later than seven (7) business
days after delivery of the Leased Part.

 

12.3                           Lease Term

 

12.3.1                                                                  The term
of the lease (“Lease Term”) will commence on the date of dispatch of the Leased
Part to the Lessee or its agent at the Lessor’s facility and will end on the
date of receipt at the Lessor’s facility of the Leased Part or exchanged part in
a serviceable condition. The Lease Term will not exceed thirty (30) days after
such date of dispatch, unless extended by written agreement between Lessor and
Lessee within such thirty (30)-day period, such agreement not to be unreasonably
withheld or delayed. Notwithstanding the foregoing, the Lease Term will end in
the event, and upon the date, of exercise of the Lessee’s option to either
purchase or exchange the Leased Part, as provided herein.

 

12.3.2                                                                  The
chargeable period to lease a part is a minimum of seven (7) days.  If shipment
of the Leased Part has been arranged and the Lessee cancels the lease order, the
minimum chargeable period of seven (7) days shall apply.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.4                           Lease Charges and Taxes

 

The Lessee will pay the Lessor (a) a daily rental charge for the Lease Term in
respect of each Leased Part equal to one-three-hundred-sixty-fifth (1/365) of
the Catalog Price of such Leased Part, as set forth in the Seller’s Spare Parts
Price List in effect on the date of commencement of the Lease Term, (b) any
reasonable and documented additional costs which may be incurred by the Lessor
as a direct result of such Lease, such as inspection, test, repair, overhaul and
repackaging costs as required to  place the Leased Part in satisfactory
condition for lease to a subsequent customer,  (c) all transportation and
insurance charges and (d) any taxes, charges or customs duties imposed upon the
Lessor or its property as a result of the lease, sale, delivery, storage or
transfer of any Leased Part (the “Lease Charges”).  All payments due hereunder
will be made in accordance with Paragraph 6 of this Letter Agreement. The
invoice is generated upon receipt of the Leased Part by the Lessor.

 

12.5                           Title

 

Title to each Leased Part will remain with the Lessor at all times unless the
Lessee  exercises its option to purchase in accordance with Paragraph 12.8 , in
which case title will pass to the Lessee in accordance with Paragraph 7.

 

12.6                           Maintenance, Storing, Repairing of the Leased
Part and Risk of Loss

 

(i)                                                                                    
The Lessee shall be liable for maintaining and storing the Leased Part in
accordance with all applicable rules of the relevant aviation authorities and
the technical documentation and other instructions issued by the Lessor.

 

(ii)                                                                                 
Except for normal wear and tear, each Leased Part will be returned to the 
Lessor in the same condition as when delivered to the Lessee.  However, the
Lessee will not without the Lessor’s prior written consent repair, modify or
alter any Leased Part.

 

 (iii)                                                                           
The Leased Part shall be repaired solely at repair stations approved by the
Lessor. If during the Lease Period any inspection, maintenance, rework and/or
repair is carried out to maintain the Leased Part serviceable, in accordance
with the standards of the Lessor, the Lessee shall provide details and
documentation about the scope of the work performed, including respective
inspection, work and test reports.

 

 (iv)                                                                          
All documentation required to enable the Leased Part to be put in commercial
service again by the Seller.

 

(v)                                                                                
The Leased Part must not be loaned to a third party.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(vi)                                                                             
Risk of loss or damage to each Leased Part will remain with the Lessee until
such Leased Part is redelivered to the Lessor at the return location specified
in the applicable Lease.  If a Leased Part is lost or damaged beyond repair, the
Lessee will be deemed to have exercised its option to purchase the part in
accordance with Paragraph 12.8 of this Letter Agreement, as of the date of such
loss or damage.

 

12.7                                                                          
Return of Leased Part

 

12.7.1                                                                 The
Lessee will return the Leased Part at the end of the Lease Term to:

 

                                                                             
                  AIRBUS North America Customer Services

                                                                             
                  Spares Center

                                                                                               
21780 FILIGREE COURT

                                                                             
                  Ashburn VA, 20147

 

                                                                             
                  or any other address in the United States indicated by the
Lessor.

 

12.7.2                                                                  The
return shipping document will indicate the reference of the Lease document and
the removal data, such as:

 

(i)                                                                                    
aircraft manufacturer serial number

 

(ii)                                                                                 
removal date

 

(iii)                                                                              
total flight hours and flight cycles for the period the Leased Part was
installed on the aircraft

 

(iv)                                                                             
documentation in accordance with Paragraph 12.6.

 

If the Lessee cannot provide the above mentioned data and documentation for the
Leased Part to be returned from Lease, lease charges [...***...] will be
invoiced. According to the Lessor’s quality standards, parts are not serviceable
without the maintenance history data outlined above and have to be scrapped on
site.

 

12.7.3                                                                  The
unserviceable or serviceable tag issued by the Lessee and the original Lessor
certification documents must be attached to the Leased Part.

 

12.7.4                                                                  Except
for normal wear and tear, each Leased Part shall be returned to the Lessor in
the same condition as when delivered to the Lessee. The Leased Part shall be
returned with the same painting as when delivered (Airbus grey or primary
paint). If the Lessee is not in a position to return the Leased Part in the same
serviceable condition, the Lessee has to contact the Lessor for instructions.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.7.5                                                                  The
Leased Part is to be returned in the same shipping container as that delivered
by the Lessor. The container must be in a serviceable condition, normal wear and
tear excepted.

 

12.7.6                                                                  The
return of an equivalent part different from the Leased Part delivered by the
Lessor is not allowed without previous written agreement of the Lessor.

 

12.8                           Option to Purchase

 

12.8.1                                                                The Lessee
may at its option, exercisable by written notice given to the Lessor, elect
during or at the end of the Lease Term to purchase the Leased  Part, in which
case the then current purchase price for such Leased Part as set forth in the
Seller’s Spare Parts Price List will be paid by the Lessee to the Lessor. The
pricing in the immediately preceding sentence will apply to new Leased Parts
only.  In the event the Leased Part is used, [...***...], will be paid by the
Lessee to the Lessor. Should the Lessee exercise such option, [...***...] of the
Lease rental charges already invoiced pursuant to Paragraph 12.4 (a) will be
credited to the Lessee against the said purchase price of the Leased Part.

 

Should the Lessee fail to return the Leased Part to the Lessor at the end of the
Lease Term, such failure will be deemed to be an election by the Lessee to
purchase the Leased Part.

 

12.8.2                                                                  In the
event of purchase, the Leased Part will be warranted in accordance with
Paragraph 11 of this Letter Agreement as though such Leased Part were a Seller
Part; provided, however, that (i) Seller will deduct from the warranty period
set forth in Paragraph 11.1.3 the amount of time the Buyer has used the Leased
Part pursuant to the Lease and (ii) in no event will such warranty period be
less than [...***...] from the date of purchase of such Leased Part. A warranty
granted under this Paragraph 12.8.2 will be in substitution for the warranty
granted under Paragraph 12.9 at the commencement of the Lease Term.

 

12.9                           Warranties on Leased Parts

 

12.9.1                  The Lessor warrants that each Leased Part will at the
time of delivery thereof:

 

(a)                                                                                 
conform to the applicable specification for such part,

 

(b)                                                                                
be free from defects in material and

 

(c)                                                                                 
be free from defects in workmanship, including without limitation processes of
manufacture.

 

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12.9.2                                                                 
Intentionally deleted

 

12.9.3                  Warranty and Notice Periods

 

The Lessee’s remedy and the Lessor’s obligation and liability under this
Paragraph 12.9, with respect to each defect, are conditioned upon (i) the defect
having become apparent to the Lessee within the Lease Term and (ii) the Lessor’s
warranty administrator having received written notice of the defect from the
Lessee within thirty (30) days after the defect became apparent to the Lessee.

 

12.9.4                                                                 
              Return and Proof

 

The Lessee’s remedy and the Lessor’s obligation and liability under this
Paragraph 12.9, with respect to each defect, are also conditioned upon:

 

(a)                                                                                 
the return by the Lessee as soon as practicable to the return location specified
in the applicable Lease, or such other place as may be mutually agreeable, of
the Leased Part claimed to be defective, and

 

(b)                                                                                
the submission by the Lessee to the Lessor’s warranty administrator of
reasonable proof that the claimed defect is due to a matter embraced within the
Lessor’s warranty under this Paragraph 12.9 and that such defect did not result
from any act or omission of the Lessee, including but not limited to any failure
to operate or maintain the Leased Part claimed to be defective or the Aircraft
in which it was installed in accordance with applicable governmental regulations
and the Lessor’s applicable written instructions.

 

12.9.5                                                                 
                 Limitation of Warranty

 

The Lessee’s remedy and the Lessor’s obligation and liability under this
Paragraph 12.9 with respect to each defect are limited to the repair of such
defect in the Leased Part in which the defect appears, or, as mutually agreed,
to the replacement of such Leased Part with a similar part free from defect.

 

Any replacement part furnished under this Paragraph 12.9.5 will for the purposes
of this Letter Agreement be deemed to be the Leased Part so replaced.

 

12.9.6                  Suspension and Transportation Costs

 

12.9.6.1                                                         If a Leased
Part is found to be defective and is covered by this warranty, the Lease Term
and the Lessee’s obligation to pay rental charges as provided in Paragraph
12.4(a) of this Letter Agreement will be suspended from the date on which the
Lessee notifies the Lessor of such defect until the date on which the Lessor has
repaired, corrected or replaced the defective Leased Part, provided,

 

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however, that the Lessee has withdrawn such defective Leased Part from use,
promptly after giving such notice to the Lessor.  If the defective Leased
Part is replaced, such replacement will be deemed to no longer be a Leased
Part under the Lease as of the date on which such part was received by the
Lessor at the return location specified in the applicable Lease.

 

If a Leased Part is found to be defective on first use by the Lessee and is
covered by this warranty, rental charges as provided in Paragraph 12.4(a) will
not accrue and will not be payable by the Lessee until the date on which the
Lessor has repaired, corrected or replaced the defective Leased Part.

 

12.9.6.2                                                       All
transportation and insurance costs associated with the return of the defective
Leased Part to the Lessor and the return of the repaired, corrected or
replacement part to the Lessee will be borne by the Lessor.

 

12.9.7                  Wear and Tear

 

Normal wear and tear and the need for regular maintenance and overhaul will not
constitute a defect or nonconformance under this Paragraph 12.9.

 

12.9.8.                                                              
                  EXCLUSIVITY OF WARRANTIES

 

PARAGRAPH 12.9 (INCLUDING ITS SUBPARTS) SETS FORTH THE EXCLUSIVE WARRANTIES,
EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF THE SELLER, AND THE EXCLUSIVE
REMEDIES AVAILABLE TO THE BUYER, WHETHER UNDER THIS LETTER AGREEMENT OR
OTHERWISE, ARISING FROM ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND IN
ANY LEASED PART.

 

THE BUYER RECOGNIZES THAT THE RIGHTS, WARRANTIES AND REMEDIES IN PARAGRAPH 12.9
ARE ADEQUATE AND SUFFICIENT TO PROTECT THE BUYER FROM ANY DEFECT OR
NONCONFORMITY OR PROBLEM OF ANY KIND IN THE LEASED PARTS.  THE BUYER HEREBY
WAIVES, RELEASES AND RENOUNCES ALL OTHER WARRANTIES, OBLIGATIONS, GUARANTEES AND
LIABILITIES OF THE SELLER AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF THE BUYER
AGAINST THE SELLER, WHETHER EXPRESS OR IMPLIED BY CONTRACT, TORT, OR STATUTORY
LAW OR OTHERWISE, WITH RESPECT TO ANY NONCONFORMITY OR DEFECT OR PROBLEM OF ANY
KIND IN ANY LEASED PART, INCLUDING BUT NOT LIMITED TO:

 

(1)                                                                                 
ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR ANY GENERAL OR
PARTICULAR PURPOSE;

 

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(2)                                                                                 
ANY IMPLIED OR EXPRESS WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF
DEALING OR USAGE OF TRADE;

 

(3)                                                                                 
ANY RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

 

(4)                                                                                 
ANY RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF LIABILITY, HOWEVER
ALLEGED, INCLUDING, BUT NOT LIMITED TO, ACTIONS AND/OR CLAIMS FOR NEGLIGENCE, ,
IMPLIED WARRANTY, PRODUCT LIABILITY, STRICT LIABILITY OR FAILURE TO WARN;

 

(5)                                                                                 
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER THE UNIFORM COMMERCIAL CODE OR ANY
OTHER STATE OR FEDERAL STATUTE;

 

(6)                                                                                 
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER ANY REGULATIONS OR STANDARDS IMPOSED BY
ANY INTERNATIONAL, NATIONAL, STATE OR LOCAL STATUTE OR AGENCY;

 

(7)                                                                                 
ANY RIGHT, CLAIM OR REMEDY TO RECOVER OR BE COMPENSATED FOR:

 

(a)                                                          LOSS OF USE OR
REPLACEMENT OF ANY AIRCRAFT, OR LEASED;

 

(b)                                                         LOSS OF, OR DAMAGE
OF ANY KIND TO, ANY AIRCRAFT OR LEASED PART;

 

(c)                                                          LOSS OF PROFITS
AND/OR REVENUES;

 

(d)                                                         ANY OTHER INCIDENTAL
OR CONSEQUENTIAL DAMAGE.

 

                                                                                               
THE WARRANTIES PROVIDED BY THIS LETTER AGREEMENT WILL NOT BE EXTENDED, ALTERED
OR VARIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED BY THE SELLER AND THE BUYER.  IN
THE EVENT THAT ANY PROVISION OF THIS PARAGRAPH 12.9.8 SHOULD FOR ANY REASON BE
HELD UNLAWFUL, OR OTHERWISE UNENFORCEABLE, THE REMAINDER OF THIS PARAGRAPH
12.9.8 WILL REMAIN IN FULL FORCE AND EFFECT.

 

                                                                                               
FOR THE PURPOSE OF THIS PARAGRAPH 12.9.8, “SELLER” WILL BE UNDERSTOOD TO INCLUDE
THE SELLER, ITS AFFILIATES AND SUBCONTRACTORS.

 

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12.9.9                                                                 
DUPLICATE REMEDIES

 

The remedies provided to the Buyer under this Paragraph 12 as to any part
thereof are independent but not cumulative nor duplicative.  The Buyer shall be
entitled to the remedy and/or remedies under Paragraph 12 that provides the
maximum but not duplicative benefit to it, as the Buyer may elect, pursuant to
the terms and conditions of this Paragraph 12 for any such particular defect for
which remedies are provided under this Paragraph 12; provided, however, that the
Buyer will not be entitled to elect a remedy under one part of this Paragraph 12
that constitutes a duplication of any remedy elected by it under any other part
hereof for the same defect unless such defects occur as separate incidents at
separate times.

 

12.10.                  NEGOTIATED AGREEMENT

 

The Buyer and Seller agree that this Paragraph 12 has been the subject of
discussion and negotiation and is fully understood by the parties, and that the
price of the Aircraft and the other mutual agreements of the parties set forth
in this Letter Agreement were arrived at in consideration of, inter alia, the
Exclusivity of Warranties and General Limitations of Liability provisions and
Duplicate Remedies provisions set forth in Paragraph 12.

 

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APPENDIX “A” TO PARAGRAPH 12

 

SELLER PARTS AVAILBLE TO LEASE

 

 

AILERONS

 

AUXILIARY POWER UNIT (APU) DOORS

 

CARGO DOORS

 

PASSENGER DOORS

 

ELEVATORS

 

FLAPS

 

LANDING GEAR DOORS

 

RUDDER

 

TAIL CONE

 

WING SLATS

 

SPOILERS

 

AIRBRAKES

 

WING TIPS

 

WINGLETS

 

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13.           TERMINATION

 

Any termination under Clauses 10, 11 or 21 of the Agreement or under the Letter
Agreements thereto will discharge all obligations and liabilities of the parties
hereunder with respect to such undelivered Material, services, data or other
items to be purchased hereunder that are applicable to those Aircraft as to
which the Agreement has been terminated. Termination under this Paragraph 13
notwithstanding, new and unused Material in excess of the Buyer’s requirements
due to such Aircraft cancellation will be repurchased by the Seller as provided
in Paragraph 10.2.

 

14.           ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller [...***...] or as may otherwise be permitted under Clause 20.2 of
the Agreement and any attempted assignment or transfer in contravention of the
provisions of this Paragraph 14 will be void and of no force or effect.

 

15.           COUNTERPARTS

 

This Letter Agreement may be signed in any number of separate counterparts. 
Each counterpart, when signed and delivered (including counterparts delivered by
facsimile transmission) will be an original, and the counterparts together will
constitute one and the same instrument.

 

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If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below and return a copy
to the Seller.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S

 

 

 

 

 

By:

 

 

 

 

Its:

 

 

Accepted and Agreed

 

HAWAIIAN AIRLINES, INC.

 

By:

 

 

 

Its:

 

 

 

and

 

By:

 

 

 

Its:

 

 

 

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 1B

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.,

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement.  The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 1B  (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft.  Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement.  The terms “herein,” “hereof”
and “hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

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CONTENTS

 

PARAGRAPHS

 

0 -

 

DEFINITIONS

 

 

 

1 -

 

GENERAL

 

 

 

2 -

 

INITIAL PROVISIONING

 

 

 

3 -

 

STORES

 

 

 

4 -

 

DELIVERY

 

 

 

5 -

 

PRICE

 

 

 

6 -

 

PAYMENT PROCEDURES AND CONDITIONS

 

 

 

7 -

 

TITLE

 

 

 

8 -

 

PACKAGING

 

 

 

9 -

 

DATA RETRIEVAL

 

 

 

10 -

 

BUY-BACK

 

 

 

11 -

 

WARRANTIES

 

 

 

12 -

 

LEASING

 

 

 

13 -

 

TERMINATION

 

 

 

14 -

 

ASSIGNMENT

 

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0.

 

DEFINITIONS

Aircraft:

 

[...***...]

 

 

 

ANACS Spares Center:

 

as defined in 3.1

 

 

 

ASC:

 

as defined in 2.3.1

 

 

 

Expedite Service:

 

as defined in 4.2.3

 

 

 

Initial Provisioning Conference:

 

as defined in 2.5

 

 

 

Initial Provisioning Data:

 

as defined in 2.1

 

 

 

Initial Provisioning Period:

 

[...***...]

 

 

 

Leased Parts:

 

as defined in Clause 12

 

 

 

Lessor:

 

as defined in Clause 12

 

 

 

Lessee:

 

as defined in Clause 12

 

 

 

Lease:

 

as defined in Clause 12

 

 

 

Lease Term:

 

as defined in Clause 12

 

 

 

Leased Charges:

 

as defined in Clause 12

 

 

 

BER:

 

as defined in 12.1

 

 

 

Material:

 

as defined in 1.1

 

 

 

Material Support:

 

as defined in 1.1

 

 

 

MRO:

 

A MAINTENANCE AND REPAIR ORGANIZATION CERTIFIED UNDER PART 142 OF THE FEDERAL
AVIATION REGULATIONS

 

 

 

Preprovisioning Meeting:

 

as defined in 2.3.1

 

 

 

Term:

 

as defined in 1.2.3

 

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1.                                       GENERAL

 

1.1                                 Material

 

This Letter Agreement covers the terms and conditions for the services
(“Material Support”) offered by the Seller to the Buyer in respect of the
Aircraft spare parts listed below in Paragraphs 1.1(a) through
1.1(f) (“Material”) and is intended by the parties to be and will constitute an
agreement of conditional sale of all Material furnished to the Buyer by the
Seller pursuant hereto, except as to Material leased to the Buyer pursuant to
Paragraph 12 of this Letter Agreement.

 

The Material will comprise:

 

(d)                                                                                
Seller Parts (defined as industrial proprietary components, equipment,
accessories or parts of the Seller manufactured to the detailed design of the
Seller or a subcontractor of it and bearing official part numbers of the Seller
or material for which the Seller has exclusive sales rights in the United
States).

 

(e)                                                                                 
Supplier Parts classified as Repairable Line Maintenance Parts in accordance
with SPEC 2000.

 

(f)                                                                                   
Supplier Parts classified as Expendable Line Maintenance Parts in accordance
with SPEC 2000.

 

(d)                                                                                
Ground Support Equipment and Specific (To-Type) tools.

 

(e)                                                                                 
Hardware and standard material as a package.

 

(f)                                                                                   
Consumables and raw material as a package.

 

It is expressly understood that Seller Parts will not include parts manufactured
pursuant to a parts manufacturing authority.

 

Material covered under Paragraphs 1.1(e) and 1.1(f) is available only as a
package when supplied as part of the Initial Provisioning, as defined in
Paragraph 1.2 below.

 

1.2                                 Scope of Material Support

 

1.2.1                        The Material Support to be provided by the Seller
hereunder covers the following:

 

(c)                                                                                 
all Material purchased by the Buyer from the Seller during the Initial
Provisioning Period  (the “Initial Provisioning”) and all items in Paragraphs
1.1(a) through 1.1(d) for purchases additional to the Initial Provisioning, and

 

(d)                                                                                
the Seller’s leasing of Seller Parts to the Buyer for the Buyer’s use on its
Aircraft in commercial air transport service as set forth in Paragraph 12 of
this Letter Agreement.

 

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1.2.2                        Propulsion Systems, engine exchange kits, their
accessories and parts, including associated parts and spare parts therefore, are
not covered under this Letter Agreement and will be subject to direct
negotiations between the Buyer and the Propulsion Systems manufacturer(s).

 

1.2.3                                                                       
[...***...] (the “Term”), the Seller will maintain or cause to be maintained
such stock of Seller Parts as the Seller deems reasonable based upon its
reasonable commercial judgment and historical statistical records and will
furnish at reasonable prices Seller Parts adequate to meet the Buyer’s needs for
maintenance of the Aircraft.  Such Seller Parts will be sold and delivered in
accordance with Paragraphs 4 and 5 of this Letter Agreement, upon receipt of the
Buyer’s orders.

 

1.3                                 Purchase Source of Material

 

The Buyer agrees to purchase from the Seller’s designee, ANACS, the Seller Parts
required for the Buyer’s own needs during the Term, provided that the provisions
of this Paragraph 1.3 will not in any way prevent the Buyer from resorting to
the stocks of Seller Parts of other operators using the same aircraft type or
model or from purchasing Seller Parts from said operators or from distributors,
or from MROs, so long as said Seller Parts have been originally designed and
manufactured by the Seller.

 

1.4                                 Manufacture of Material by the Buyer

 

1.4.1                                                                        The
provisions of Paragraph 1.3 of this Letter Agreement notwithstanding, the Buyer
may manufacture or have manufactured Seller Parts for its own use in the
following cases:

 

(e)                                                                                 
after expiration of the Term, provided that such time the Seller is out of

 

                                                                                               
stock of a required Seller Part;

 

(f)                                                                                   
at any time, to the extent Seller Parts are needed to effect AOG repairs on any
Aircraft and are not available from the Seller within a lead time shorter than
or equal to the time in which the Buyer can procure said Seller Parts from
another source, provided the Buyer will sell or lease such Seller Parts only if
they are assembled in an Aircraft that is sold or leased;

 

(g)                                                                                
at any time, if  the Seller fails to fulfill its obligations with respect to any
Seller Parts pursuant to Paragraph 1.2 above within a reasonable period after
written notice thereof from the Buyer; and

 

(h)                                                                                
at any time, if with respect to certain Seller Parts, the Seller has granted,
under the Illustrated Parts Catalog supplied in accordance with this Letter
Agreement, the

 

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right of local manufacture of Seller Parts.

 

1.4.2                        The rights granted to the Buyer in Paragraph 1.4.1
will not in any way be construed as a license, nor will they in any way obligate
the Buyer to pay any license fee, royalty or obligation whatsoever, nor will
they in any way be construed to affect the rights of third parties.

 

1.4.3                                                                        If
the Buyer manufactures or has manufactured any parts pursuant to Paragraph
1.4.1, such part and any use made of the manufactured parts shall be under the
sole liability of the Buyer and the consent given by the Seller will not be
construed as express or implicit approval of the Buyer or of the manufactured
parts.

 

                                                                                               
It is the Buyer’s sole responsibility to ensure that such manufacturing is
performed in accordance with the relevant procedures and Aviation Authority
requirements.

 

                                                                                               
EXCEPT IN THE CASE OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT ON THE PART OF THE
SELLER, THE SELLER WILL NOT BE LIABLE FOR, AND THE BUYER WILL INDEMNIFY THE
SELLER AGAINST, ANY CLAIMS FROM ANY THIRD PARTIES FOR LOSSES DUE TO ANY DEFECT
OR NON-CONFORMITY OF ANY KIND, ARISING OUT OF OR IN CONNECTION WITH ANY
MANUFACTURING OF ANY PART UNDERTAKEN BY THE BUYER, OR CAUSED TO BE UNDERTAKEN BY
THE BUYER, UNDER PARAGRAPH 1.4.1 OR ANY OTHER ACTIONS UNDERTAKEN BY THE BUYER
UNDER THIS LETTER AGREEMENT, WHETHER SUCH CLAIM IS ASSERTED IN CONTRACT OR IN
TORT, OR IS PREMISED ON ALLEGED, ACTUAL, IMPUTED, ORDINARY OR NEGLIGENT ACTS OR
OMISSIONS OF THE BUYER.

 

1.4.4                                                                        The
Buyer will allocate, or cause to be allocated, its own part number to any part
manufactured, or caused to be manufactured, in accordance with Paragraph 1.4.1. 
The Buyer will not use, or cause to be used, the Airbus part number of the
Seller Part to which such manufactured part is equivalent.

 

1.4.5                                                                        The
Buyer will not sell or loan any part manufactured under the provisions of
Paragraph 1.4.1 to any third party, except in connection with customary pooling
or interchange arrangements.

 

1.4.6                                                                        The
Seller will provide the Buyer with all technical data reasonably necessary to
manufacture Seller Parts, in the event the Buyer is entitled to do so pursuant
to Paragraph 1.4.1 of this Letter Agreement.  The confidentiality of, and
proprietary rights to such technical data will be subject to the terms of
Clauses 14.16 and 14.12, respectively, of the Agreement.

 

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2.             INITIAL PROVISIONING

 

2.1                                 Seller-Supplied Data

 

The Seller will prepare and supply to the Buyer the following data:

 

(a)                                                                                 
Initial Provisioning Data - Seller

 

The Seller will provide the Buyer initial provisioning data generally in
accordance with the applicable ATA Specification  (“Initial Provisioning Data”)
in a form, format and within a time period to be mutually agreed upon during the
Preprovisioning Meeting defined in Paragraph 2.3.1 below.

 

A free of charge revision service will be effected every ninety (90) days, up to
the end of the Initial Provisioning Period.

 

[...***...]

 

(b)                                                                                
Supplementary Data

 

The Seller will provide the Buyer with Local Manufacture Tables (X-File), and
Ground Support Equipment and Specific to-type Tools (W-File) and a Pool Item
Candidate List (Y-File) as a part of the Initial Provisioning Data package.

 

(c)                                                                                                                                 
Data for Standard Hardware

 

The Initial Provisioning Data provided to the Buyer shall include data for
hardware and standard material.

 

2.2.1                        Supplier-Supplied Data

 

 (a)                                                                                                                              
General

 

Suppliers will prepare and issue for their own products repair/overhaul Initial
Provisioning data in the English language for those Supplier components for
which the Buyer has elected to receive data.

 

Said data (initial issue and revisions) will be transmitted to the Buyer through
the Suppliers and/or the Seller. The Seller will not be responsible for the
substance, accuracy and quality of such data.

 

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The Seller will  make reasonable efforts to supply Initial Provisioning Data to
the Buyer to allow evaluation thereof  by the Buyer and on-time delivery by the
Seller of the Material ordered by the Buyer.

 

(b)                                                                                                                                
Initial Provisioning Data — Supplier

 

Initial Provisioning Data for Supplier products provided for Clause
1.1(a) herein in the applicable ATA Specification will be furnished as mutually
agreed upon during the Preprovisioning Meeting, with free of charge revision
service assured up to the end of the Initial Provisioning Period.

 

2.3                                                                                                                                
Preprovisioning Meeting

 

2.3.1                                                                        The
Seller will organize a meeting (i) at the Airbus spares center in Hamburg,
Germany (“ASC”), or (ii) at ANACS, or (iii) at a place to be mutually agreed, in
order to formulate an acceptable schedule and working procedure to accomplish
the Initial Provisioning of Material (the “Preprovisioning Meeting”).

 

2.3.3                                                                        The
date of the Preprovisioning Meeting will be mutually agreed upon, but it will
take place no earlier than three (3) months after the Agreement will have taken
effect and no later than eighteen (18) months before delivery of the Buyer’s
first Aircraft.

 

2.4                                 Initial Provisioning Training

 

The Seller will furnish, at the Buyer’s request and at no charge to the Buyer,
training courses related to the Seller’s provisioning documents, purchase order
administration and handling at ASC. The areas covered in these training courses
are (i) familiarization of the Buyer with the provisioning; (ii) explanation of
the technical function as well as the technical and commercial Initial
Provisioning Data; and (iii) familiarization with the Seller’s purchase order
administration system.

 

2.5                                 Initial Provisioning Conference

 

The Seller will organize an Initial Provisioning conference at ASC or ANACS that
will include participation of major Suppliers, as agreed upon during the
Preprovisioning Meeting (the “Initial Provisioning Conference”).

 

Such Initial Provisioning Conference will take place no earlier than eight
(8) weeks after Manufacturer Serial Number allocation, Buyer Furnished Equipment
selection or Contractual Definition Freeze, whichever last occurs, if the first
Aircraft is new, or if the first Aircraft is used, no earlier than eight weeks
after the supply by the Buyer of the necessary data for the used Aircraft.

 

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2.6                                 Initial Provisioning Data Compliance

 

2.6.1                                                                       
Initial Provisioning Data generated by the Seller and supplied to the Buyer will
comply with the latest configuration of the Aircraft to which such data relate,
as known three (3) months before the data are issued, with respect to the new
Aircraft.

 

Initial Provisioning Data generated by the Seller and supplied to the Buyer with
respect to used Aircraft, will be based on the Buyer supply of the appropriate
documents for such Aircraft. To the extent possible the Seller will provide
reasonable assistance to the Buyer in accumulating the necessary data.

 

This provision will not cover Buyer modifications unknown to the Seller, or
modifications not agreed to by the Seller.

 

2.6.2                                                                       
During the Initial Provisioning Period, Material will conform with  the Initial
Provisioning Data transmitted by the Seller. Should the Seller default in this
obligation, it will immediately replace such parts and/or authorize return
shipment at no transportation cost to the Buyer. The Buyer will make reasonable
efforts to minimize such cost.  The Seller, in addition, will use its reasonable
efforts to cause Suppliers to provide a similar service for their items.

 

2.7                                 Delivery of Initial Provisioning Material

 

2.7.1                                                                       
Provided that orders are received by the Seller in accordance with the leadtime
published in the Seller’s Spare Parts Price Catalog, the Seller will deliver
Initial Provisioning Material in accordance with the Buyer’s orders, subject to
reasonable quantities.

 

2.7.2                                                                                                                       
The Buyer, subject to the Seller’s agreement, may cancel or modify Initial
Provisioning orders placed with the Seller with no cancellation charge as
follows:

 

(a)                                                                                                                                 
Material having a lead times [...***...], not later than [...***...] before
scheduled delivery of said Material,

 

(b)                                                                                                                                
Material with a lead-[...***...], not later than [...***...] before scheduled
delivery of said Material,

 

(c)                                                                                                                                 
Buyer-specific Material and Material described in Paragraphs 1.1(b) through
1.1(f), [...***...] before scheduled delivery of said Material.

 

2.7.3                                                                       
[...***...]

 

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2.8                                                                            
[...***...]

 

3.                                       STORES

 

3.1                                 ANACS Spares Center

 

The Seller has established a US store located near Dulles International Airport,
Washington, DC, known as the ANACS Spares Center - Washington (“ANACS Spares
Center”).  The ANACS Spares Center will be operated twenty-four (24) hours/day,
seven (7) days/week, all year for the handling of AOG and critical orders for
Seller Parts.

 

3.2                                 Material Support Center, Germany

 

The Seller has established a store of Seller Parts at ASC. ASC will be operated
twenty-four (24) hours per day, seven (7) days per week, twelve months a year.

 

3.3                                 Other Points of Shipment

 

The Seller reserves the right to effect deliveries from distribution centers
other than the ANACS Spares Center or ASC and from any of the production
facilities of the Suppliers.

 

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4.                                       DELIVERY

 

4.1                                 General

 

The Buyer’s purchase orders will be administered in accordance with ATA
Specification 2000, Chapter 3.

 

The provisions of Paragraph 4.2 of this Letter Agreement do not apply to Initial
Provisioning Data or Material as described in Paragraph 2 of this Letter
Agreement.

 

4.2                                 Lead Times

 

4.2.1                                                                        In
general, the lead times are (and, unless otherwise agreed, will at all times be)
in accordance with the definition in the “World Airline and Suppliers Guide”
(latest edition).

 

4.2.2                                                                       
Seller Parts described in Paragraph 1.1.(a) are published in the Seller’s Spare
Parts Price Catalog or on Airbus/Spares and will be dispatched within the lead
times quoted in such catalog. The lead times for Seller Parts described in
Paragraph 1.1 (a) which are not published in the Seller’s Spare Parts Price
Catalog are quoted upon request. Supplier Parts as described in Paragraph
1.1.(b) through 1.1(d), can be dispatched within the  supplier’s leadtime
augmented by the Seller’s own order and delivery processing time (such in-house
processing time not to exceed fifteen (15) days).

 

4.2.3                        Expedite Service

 

The Seller operates a twenty-four (24) hour-a-day, seven (7) day-a-week expedite
service to supply the relevant Seller Parts available in the Seller’s stock,
workshops and assembly line, including high-cost/long- lead-time items, to the
international airport nearest the location of such items (the “Expedite
Service”).

 

The Expedite Service is operated in accordance with the “World Airlines and
Suppliers Guide.”  Accordingly, the Seller will notify the Buyer of the action
taken to effect the Expedite Service as follows:

 

(a)                                                                                 
four (4) hours after receipt of an AOG order,

 

(b)                                                                                
twenty-four (24) hours after receipt of a critical order (imminent AOG or work
stoppage),

 

(c)                                                                                 
seven (7) days after receipt of an expedite order from the Buyer.

 

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The Seller and its subcontractors will deliver Seller Parts requested on
expedite basis against normal orders previously placed by the Buyer or upon
requests by telephone or facsimile by the Buyer’s representatives, such requests
to be confirmed by the Buyer’s subsequent order for such Seller Parts within a
reasonable time.

 

In the case of an AOG, the Seller shall make all commercially reasonable efforts
to assist the Buyer in obtaining the needed Seller Parts within the shortest
possible time.

 

4.3                                 Delivery Status

 

The Seller agrees to report to the Buyer the status of supplies against orders
on a monthly basis or on a mutually agreed timeframe.

 

4.4                                                                                
INTENTIONALLY DELETED

 

4.5                                 Shortages, Overshipments, Nonconformance in
Orders

 

4.5.1                                                                       
Within thirty (30) days after receipt of Material, the Buyer will advise the
Seller of any alleged shortages or overshipments with respect to such purchase
order and of all claimed nonconformance to specification of parts in such order.

 

4.5.2                                                                        If
the Buyer reports overshipments or nonconformance to the specifications within
such period, the Seller will, if such report is verified by the Seller, either
replace the Material concerned or credit the Buyer for Material returned. In
such case, transportation charges for the nonconforming or overshipments of
parts will be borne by the Seller.

 

The Buyer will endeavor to minimize such costs, particularly by using its own
airfreight system for transportation at no charge to the Seller.

 

4.6                                 Cessation of Deliveries

 

The Seller reserves the right to restrict, stop or otherwise suspend deliveries
if the Buyer fails to meet its obligations under Paragraphs 6 and 7, provided
that before stopping or suspending deliveries Seller has given five (5) Business
Days written notice to the Buyer of Seller’s intention to do so.

 

5.                                       PRICE

 

5.1                                 The Material prices will be:

 

[...***...]

 

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5.2                                 Validity of Prices

 

5.2.1                                                                        The
Material prices are the Seller’s published prices in effect on the date of
receipt of the purchase order (subject to reasonable quantities and delivery
time) and will be expressed in US dollars. Payment will be made by the Buyer to
the Seller in US dollars.

 

5.2.3                                                                       
Prices of Seller Parts will be in accordance with the then current ANAC’s Spare
Parts Price Catalog and Repair Guide. Prices will be firm for each calendar
year, except that the Seller reserves the right to revise the prices of Seller
Parts during the course of the calendar year in the following cases:

 

·                  abnormal revision in manufacturing costs,

 

·                  abnormal revision in Seller’s purchase price of materials
(including significant variation of exchange rates),

 

·                  significant error in estimation or expression of any price.

 

5.2.3                                                                       
Prices of Material identified in Paragraphs 1.1(b) through 1.1(d)  will be
[...***...].

 

5.2.4                                                                       
[...***...].

 

5.2.5                                                                       
[...***...].

 

6.                                       PAYMENT PROCEDURES AND CONDITIONS

 

6.1                                 Intentionally deleted

 

6.2                                 Time and Means of Payment

 

Payment will be made by transfer of immediately available funds from the Buyer
to the Seller and, so long as the Buyer makes payments when due, will be payable
within thirty (30) days from the date of invoice. Such invoices will be
expressed in US Dollars.

 

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6.3                                 Bank Accounts

 

The Buyer will make all payments hereunder in full without setoff, counterclaim,
deduction or withholding of any kind to the accounts listed below, unless
otherwise directed by the Seller:

 

(a)                                                                                 
For wire transfer, in favor of Airbus North America Customer Services, Inc.:

 

[...***...]

 

(b)                                                                                
For direct deposit (lockbox), in favor of Airbus North America Customer
Services, Inc.:

 

Airbus North America Customer Services, Inc.:

PO Box 8500

Lock Box No. 4555

Philadelphia, PA 19178-4555

 

6.4                                 Taxes

 

All payments due the Seller hereunder will be made in full without setoff or
counterclaim and without deduction or withholding of any kind.  Consequently,
the Buyer will assure that the sums received by the Seller under this Letter
Agreement  are equal to the full amounts expressed to be due the Seller
hereunder, without deduction or withholding on account of and free from any and
all taxes, levies, imposts, dues or charges of whatever nature except that if
the Buyer is compelled by law to make any such deduction or withholding the
Buyer will pay such additional amounts as may be necessary in order that the net
amount received by the Seller after such deduction or withholding will equal the
amounts that would have been received in the absence of such deduction or
withholding.

 

6.5                                                                                
Except with respect to unpaid amounts of invoices that are subject to good faith
dispute by the Buyer, and provided that the Buyer has notified Seller of such
dispute no later than ten (10) days after the date of the invoice, if any
payment due the Seller is not received in accordance with the time period
provided above in Paragraph 6.2, the Seller will have the right to claim from
the Buyer and the Buyer will promptly pay to the Seller interest on the unpaid
amount [...***...] to be calculated from (and including) the due date to (but
excluding) the date payment is received by the Seller.  The Seller’s claim to
such interest will not prejudice any other rights the Seller may have under this
Letter Agreement or applicable law.

 

[...***...]

 

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7.                                       TITLE

[...***...]

 

The Buyer will not permit the imposition on any Material for which it has not
paid in full any lien, debenture, security interest or other similar interest
charge or claim in favor of any third party, [...***...].

 

8.                                       PACKAGING

 

All Material will be packaged in accordance with the applicable ATA
Specification.

 

9.                                                                                                                                      
DATA RETRIEVAL

 

The Buyer undertakes to provide periodically to the Seller, as the Seller may
reasonably request, during the Term, a quantitative list of the Material used
for maintenance and overhaul of the Aircraft.  The range and contents of this
list will be established by mutual agreement between the Seller and the Buyer.

 

10.                                 BUY-BACK

 

10.1                           Buy-Back of Material

 

The Seller agrees to buy back unused Seller Parts that may no longer be
incorporated in the Aircraft as a result of mandatory modifications required by
the Buyer’s or Seller’s Aviation Authorities, before Delivery of the first
A350XWB-800 Aircraft to the Buyer subject to the following:

 

(a)                                                                                 
the Seller Parts involved will be those which the Seller directs the Buyer to
scrap or dispose of and which cannot be reworked or repaired to satisfy the
revised standard;

 

(b)                                                                                
the Seller will grant the Buyer a credit equal to the purchase price paid by the
Buyer for any such parts, such credit being limited to quantities ordered in the
Initial Provisioning recommendation;

 

(c)                                                                                 
the Seller will use its reasonable efforts to obtain for the Buyer the same
protection from Suppliers.

 

10.2                                         Buy-Back of Surplus Material

 

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10.2.1                                                                  The
Seller agrees that at any time after [...***...] Delivery of the first
A350XWB-800 Aircraft to the Buyer, the Buyer will have the right to return to
the Seller, at a credit of [...***...] the original purchase price paid by the
Buyer, unused and undamaged Material described in Paragraphs 1.1(a) and
1.1(b) originally purchased from the Seller under the terms hereof, provided
(i) that the selected protection level does not exceed ninety-six percent (96%)
with a turnaround time of [...***...], (ii) that said Material does not exceed
the provisioning quantities recommended by the Seller in the Initial
Provisioning recommendations, does not have a limited shelf life nor contain any
shelf-life limited components with [...***...] of their shelf life remaining
when returned to the Seller, and (iii) that the Material is returned with the
Seller’s original documentation (or electronic copies of such documentation) and
any such documentation (including tags, certificates) required to identify,
substantiate the condition of and enable the resale of such Material.

 

10.2.2                                                                  The
Seller’s agreement in writing is necessary before any Material in excess of the
Seller’s recommendation may be considered for buy-back.

 

10.2.3                                                                  It is
expressly understood and agreed that the rights granted to the Buyer under this
Paragraph 10.2 will not apply to Material that may become obsolete at any time
or for any reason other than as set forth in Paragraph 10.1 above.

 

10.2.4                                                                 
[...***...].

 

10.3                                                                          
All transportation costs for the return of obsolete and surplus Material under
this Paragraph 10, including any applicable insurance and customs duties or
other related expenditures, will be borne by the Seller.

 

10.4                                                                          
The Seller’s obligation to repurchase Material under this paragraph 10 is
subject to the Buyer’s compliance with the requirements set forth in Paragraph 9
of this Letter Agreement.

 

11.1                           WARRANTIES ON SELLER PARTS

 

11.1.1                                                                  Nature
of Warranty

 

Subject to the limitations and conditions hereinafter provided, and except as
provided in Paragraph 11.1.2, the Seller warrants to the Buyer that each Seller
Part will at the time of Delivery to the Buyer be free from defects:

 

(i)                                                                                    
in material,

 

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(ii)                                                                                 
in workmanship, including, without limitation, processes of manufacture, and

 

(iii)                                                                              
arising from failure to conform to the Specification, except as to those
portions of the Specification that are expressly stated in the Specification to
be estimates or approximations or design aims.

 

11.1.2                                                                 
[...***...]

 

11.1.3                                                                  Warranty
Periods

 

For new Seller Parts, the warranties described in Paragraph 11.1.1 will be
limited to those defects that become apparent within [...***...] after delivery
of the Seller Part.

 

For used Seller Parts, the warranties described in Paragraph 11.1 will be
limited to those defects that become apparent within [...***...] after delivery
of the Seller Part, [...***...].

 

11.1.4                                                                 
Limitations of Warranty

 

The Buyer’s remedy and the Seller’s obligation and liability under Paragraphs
11.1 are limited to, at the Seller’s expense and option acting in a commercially
reasonable manner, the repair, replacement or correction of, or the supply of
modification kits rectifying the defect to any defective Seller Part.

 

[...***...]

 

11.2                                                                                                                          
EXCLUSIVITY OF WARRANTIES

 

THIS PARAGRAPH 11 (INCLUDING ITS SUBPARTS) SETS FORTH THE EXCLUSIVE WARRANTIES,
EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF THE SELLER, AND THE EXCLUSIVE
REMEDIES AVAILABLE TO THE BUYER, WHETHER UNDER THIS LETTER AGREEMENT OR
OTHERWISE, ARISING FROM ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND IN
ANY SELLER PART DELIVERED BY THE SELLER UNDER THIS AGREEMENT.

 

THE BUYER RECOGNIZES THAT THE RIGHTS, WARRANTIES AND REMEDIES IN THIS PARAGRAPH
11 ARE ADEQUATE AND SUFFICIENT TO PROTECT THE BUYER FROM ANY DEFECT OR
NONCONFORMITY OR PROBLEM OF ANY KIND IN THE SELLER PARTS SUPPLIED UNDER THIS
LETTER AGREEMENT.  THE BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER
WARRANTIES, OBLIGATIONS, GUARANTEES AND LIABILITIES OF THE SELLER AND ALL OTHER

 

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RIGHTS, CLAIMS AND REMEDIES OF THE BUYER AGAINST THE SELLER AND ITS SUPPLIERS,
WHETHER EXPRESS OR IMPLIED BY CONTRACT, TORT, OR STATUTORY LAW OR OTHERWISE,
WITH RESPECT TO ANY NONCONFORMITY OR DEFECT OR PROBLEM OF ANY KIND IN ANY SELLER
PART DELIVERED BY THE SELLER UNDER THIS LETTER AGREEMENT, INCLUDING BUT NOT
LIMITED TO:

 

(15)                                                                           
ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR ANY GENERAL OR
PARTICULAR PURPOSE;

 

(16)                                                                           
ANY IMPLIED OR EXPRESS WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF
DEALING OR USAGE OF TRADE;

 

(17)                                                                           
ANY RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

 

(18)                                                                           
ANY RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF LIABILITY, HOWEVER
ALLEGED, INCLUDING, BUT NOT LIMITED TO, ACTIONS AND/OR CLAIMS FOR NEGLIGENCE,
IMPLIED WARRANTY, PRODUCT LIABILITY, STRICT LIABILITY OR FAILURE TO WARN;

 

(19)                                                                           
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER THE UNIFORM COMMERCIAL CODE OR ANY
OTHER STATE OR FEDERAL STATUTE;

 

(20)                                                                           
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER ANY REGULATIONS OR STANDARDS IMPOSED BY
ANY INTERNATIONAL, NATIONAL, STATE OR LOCAL STATUTE OR AGENCY;

 

(21)                                                                           
ANY RIGHT, CLAIM OR REMEDY TO RECOVER OR BE COMPENSATED FOR:

 

(22)                                                                           
LOSS OF USE OR REPLACEMENT OF ANY AIRCRAFT, OR PART PROVIDED UNDER THE AGREEMENT
DUE TO A DEFECT, NONCONFORMITY OR OTHER PROBLEM IN ANY SELLER PART;

 

(23)                                                                           
LOSS OF, OR DAMAGE OF ANY KIND TO, ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY
OR PART DUE TO A DEFECT, NONCONFORMITY OR OTHER PROBLEM IN ANY SELLER PART;

 

(24)                                                                           
LOSS OF PROFITS AND/OR REVENUES;

 

(25)                                                                           
ANY OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGE.

 

(26)                                                                           
THE WARRANTIES PROVIDED BY THIS AGREEMENT WILL NOT BE EXTENDED, ALTERED OR
VARIED EXCEPT BY A WRITTEN

 

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INSTRUMENT SIGNED BY THE SELLER AND THE BUYER.  IN THE EVENT THAT ANY PROVISION
OF THIS PARAGRAPH 11 SHOULD FOR ANY REASON BE HELD UNLAWFUL, OR OTHERWISE
UNENFORCEABLE, THE REMAINDER OF THIS PARAGRAPH 11 WILL REMAIN IN FULL FORCE AND
EFFECT.

 

FOR THE PURPOSE OF PARAGRAPHS 11.1.2 AND 11.2, “SELLER” WILL BE UNDERSTOOD TO
INCLUDE THE SELLER, ITS AFFILIATES AND SUBCONTRACTORS.

 

11.3                           PATENT AND COPYRIGHT INDEMNITIES

 

The terms and conditions of Clause 13 of the Agreement shall apply to Seller
Parts purchased by the Buyer or replaced by the Seller under this Letter
Agreement.

 

11.4                           DUPLICATE REMEDIES

 

The remedies provided to the Buyer under this Paragraph 11 as to any part
thereof are independent but not cumulative nor duplicative.  The Buyer shall be
entitled to the remedy and/or remedies under Paragraph 11 that provides the
maximum but not duplicative benefit to it, as the Buyer may elect, pursuant to
the terms and conditions of this Paragraph 11 for any such particular defect for
which remedies are provided under this Paragraph 11; provided, however, that the
Buyer will not be entitled to elect a remedy under one part of this Paragraph 11
that constitutes a duplication of any remedy elected by it under any other part
hereof for the same defect unless such defects occur as separate incidents at
separate times.

 

11.5                           NEGOTIATED AGREEMENT

 

The Buyer and Seller agree that this Paragraph 11 has been the subject of
discussion and negotiation and is fully understood by the parties, and that the
price of the Aircraft and the other mutual agreements of the parties set forth
in the Agreement were arrived at in consideration of, inter alia, the
Exclusivity of Warranties and General Limitations of Liability provisions and
Duplicate Remedies provisions set forth in this Paragraph 11.

 

12.                                                                                                                                
LEASING OF SPARE PARTS

 

12.1                           Applicable Terms

 

The terms and conditions of this Paragraph 12 will apply to the Lease of Seller
Parts listed in Appendix “A” to this Paragraph 12 (“Leased Parts”) and will form
a part of each lease of any Leased Part by the Buyer from the Seller after the
date

 

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hereof.  Except for the description of the Leased Part, the Lease Term, the
Leased Part delivery and return locations and the Lease Charges (defined below
in Paragraph 12.4), all other terms and conditions appearing on any order form
or other document pertaining to Leased Parts will be deemed inapplicable, and in
lieu thereof the terms and conditions of this Paragraph 12 will prevail.  For
purposes of this Paragraph 12, the term “Lessor” refers to the Seller and the
term “Lessee” refers to the Buyer.  Parts not included in Appendix “A” to this
Paragraph 12 may be supplied under a separate lease agreement between the Seller
and the Buyer, in accordance with the terms and conditions set forth in the then
current Airbus Proprietary Parts Repair Guide.

 

12.2                           Lease Procedure: Spare Parts Leased

 

At the Lessee’s request by telephone (to be confirmed promptly in writing),
facsimile, letter or other written instrument, the Lessor will lease Leased
Parts, which will be made available in accordance with Paragraph 4.2.3 , to the
Lessee as substitutes for parts withdrawn from an Aircraft for repair or
overhaul.  Each lease of Leased Parts will be evidenced by a lease document
(“Lease”) issued by the Lessor to the Lessee no later than seven (7) business
days after delivery of the Leased Part.

 

12.3                           Lease Term

 

12.3.1                                                                 
       The term of the lease (“Lease Term”) will commence on the date of
dispatch of the Leased Part to the Lessee or its agent at the Lessor’s facility
and will end on the date of receipt at the Lessor’s facility of the Leased
Part or exchanged part in a serviceable condition. The Lease Term will not
exceed thirty (30) days after such date of dispatch, unless extended by written
agreement between Lessor and Lessee within such thirty (30)-day period, such
agreement not to be unreasonably withheld or delayed. Notwithstanding the
foregoing, the Lease Term will end in the event, and upon the date, of exercise
of the Lessee’s option to either purchase or exchange the Leased Part, as
provided herein.

 

12.3.2                                                                 
       The chargeable period to lease a part is a minimum of seven (7) days.  If
shipment of the Leased Part has been arranged and the Lessee cancels the lease
order, the minimum chargeable period of seven (7) days shall apply.

 

12.4                           Lease Charges and Taxes

 

The Lessee will pay the Lessor (a) a daily rental charge for the Lease Term in
respect of each Leased Part equal to one-three-hundred-sixty-fifth (1/365) of
the Catalog Price of such Leased Part, as set forth in the Seller’s Spare Parts
Price List in effect on the date of commencement of the Lease Term, (b) any
reasonable and documented additional costs which may be incurred by the Lessor
as a direct

 

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result of such Lease, such as inspection, test, repair, overhaul and repackaging
costs as required to  place the Leased Part in satisfactory condition for lease
to a subsequent customer,  (c) all transportation and insurance charges and
(d) any taxes, charges or customs duties imposed upon the Lessor or its property
as a result of the lease, sale, delivery, storage or transfer of any Leased
Part (the “Lease Charges”).  All payments due hereunder will be made in
accordance with Paragraph 6 of this Letter Agreement. The invoice is generated
upon receipt of the Leased Part by the Lessor.

 

12.5                           Title

 

Title to each Leased Part will remain with the Lessor at all times unless the
Lessee  exercises its option to purchase in accordance with Paragraph 12.8 , in
which case title will pass to the Lessee in accordance with Paragraph 7.

 

12.6                           Maintenance, Storing, Repairing of the Leased
Part and Risk of Loss

 

(i)                                                                                    
The Lessee shall be liable for maintaining and storing the Leased Part in
accordance with all applicable rules of the relevant aviation authorities and
the technical documentation and other instructions issued by the Lessor.

 

(ii)                                                                                 
Except for normal wear and tear, each Leased Part will be returned to the 
Lessor in the same condition as when delivered to the Lessee.  However, the
Lessee will not without the Lessor’s prior written consent repair, modify or
alter any Leased Part.

 

(iii)                                                                              
The Leased Part shall be repaired solely at repair stations approved by the
Lessor. If during the Lease Period any inspection, maintenance, rework and/or
repair is carried out to maintain the Leased Part serviceable, in accordance
with the standards of the Lessor, the Lessee shall provide details and
documentation about the scope of the work performed, including respective
inspection, work and test reports.

 

(iv)                                                                             
All documentation required to enable the Leased Part to be put in commercial
service again by the Seller.

 

(v)                                                                                
The Leased Part must not be loaned to a third party.

 

(vi)                                                                             
       Risk of loss or damage to each Leased Part will remain with the Lessee
until such Leased Part is redelivered to the Lessor at the return location
specified in the applicable Lease.  If a Leased Part is lost or damaged beyond
repair, the Lessee will be deemed to have exercised its option to purchase the
part in accordance with Paragraph 12.8 of this Letter Agreement, as of the date
of such loss or damage.

 

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12.7                                                                          
Return of Leased Part

 

12.7.1                                                                 The
Lessee will return the Leased Part at the end of the Lease Term to:

 

AIRBUS North America Customer Services

Spares Center

21780 Filigree Court

Ashburn VA, 20147

 

or any other address in the United States indicated by the Lessor.

 

12.7.2                                                                  The
return shipping document will indicate the reference of the Lease document and
the removal data, such as:

 

(i)                                                                                    
aircraft manufacturer serial number

 

(ii)                                                                                 
removal date

 

(iii)                                                                              
total flight hours and flight cycles for the period the Leased Part was
installed on the aircraft

 

(iv)                                                                             
documentation in accordance with Paragraph 12.6.

 

If the Lessee cannot provide the above mentioned data and documentation for the
Leased Part to be returned from Lease, lease charges [...***...] will be
invoiced. According to the Lessor’s quality standards, parts are not serviceable
without the maintenance history data outlined above and have to be scrapped on
site.

 

12.7.3                                                                  The
unserviceable or serviceable tag issued by the Lessee and the original Lessor
certification documents must be attached to the Leased Part.

 

12.7.4                                                                  Except
for normal wear and tear, each Leased Part shall be returned to the Lessor in
the same condition as when delivered to the Lessee. The Leased Part shall be
returned with the same painting as when delivered (Airbus grey or primary
paint). If the Lessee is not in a position to return the Leased Part in the same
serviceable condition, the Lessee has to contact the Lessor for instructions.

 

12.7.5                                                                  The
Leased Part is to be returned in the same shipping container as that delivered
by the Lessor. The container must be in a serviceable condition, normal wear and
tear excepted.

 

12.7.6                                                                  The
return of an equivalent part different from the Leased Part delivered by the
Lessor is not allowed without previous written agreement of the Lessor.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.8                           Option to Purchase

 

12.8.1                                                                  The
Lessee may at its option, exercisable by written notice given to the Lessor,
elect during or at the end of the Lease Term to purchase the Leased  Part, in
which case the then current purchase price for such Leased Part as set forth in
the Seller’s Spare Parts Price List will be paid by the Lessee to the Lessor.
The pricing in the immediately preceding sentence will apply to new Leased Parts
only.  In the event the Leased Part is used, [...***...], will be paid by the
Lessee to the Lessor.  Should the Lessee exercise such option, [...***...] of
the Lease rental charges already invoiced pursuant to Paragraph 12.4 (a) will be
credited to the Lessee against the said purchase price of the Leased Part.

 

Should the Lessee fail to return the Leased Part to the Lessor at the end of the
Lease Term, such failure will be deemed to be an election by the Lessee to
purchase the Leased Part.

 

12.8.2                                                                  In the
event of purchase, the Leased Part will be warranted in accordance with
Paragraph 11 of this Letter Agreement as though such Leased Part were a Seller
Part; provided, however, that (i) Seller will deduct from the warranty period
set forth in Paragraph 11.1.3 the amount of time the Buyer has used the Leased
Part pursuant to the Lease and (ii) in no event will such warranty period be
less than [...***...] from the date of purchase of such Leased Part. A warranty
granted under this Paragraph 12.8.2 will be in substitution for the warranty
granted under Paragraph 12.9 at the commencement of the Lease Term.

 

12.9                           Warranties on Leased Parts

 

12.9.1                  The Lessor warrants that each Leased Part will at the
time of delivery thereof:

 

(a)                                                                                 
conform to the applicable specification for such part,

 

(b)                                                                                
be free from defects in material and

 

(d)                                                                                
be free from defects in workmanship, including without limitation processes of
manufacture.

 

12.9.2                                                                 
       Intentionally deleted

 

12.9.3                  Warranty and Notice Periods

 

The Lessee’s remedy and the Lessor’s obligation and liability under this
Paragraph 12.9, with respect to each defect, are conditioned upon (i) the defect
having become apparent to the Lessee within the Lease Term and (ii) the Lessor’s

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

warranty administrator having received written notice of the defect from the
Lessee within thirty (30) days after the defect became apparent to the Lessee.

 

12.9.4                  Return and Proof

 

The Lessee’s remedy and the Lessor’s obligation and liability under this
Paragraph 12.9, with respect to each defect, are also conditioned upon:

 

(a)                                                                                 
the return by the Lessee as soon as practicable to the return location specified
in the applicable Lease, or such other place as may be mutually agreeable, of
the Leased Part claimed to be defective, and

 

(c)                                                                                 
the submission by the Lessee to the Lessor’s warranty administrator of
reasonable proof that the claimed defect is due to a matter embraced within the
Lessor’s warranty under this Paragraph 12.9 and that such defect did not result
from any act or omission of the Lessee, including but not limited to any failure
to operate or maintain the Leased Part claimed to be defective or the Aircraft
in which it was installed in accordance with applicable governmental regulations
and the Lessor’s applicable written instructions.

 

12.9.5                  Limitation of Warranty

 

The Lessee’s remedy and the Lessor’s obligation and liability under this
Paragraph 12.9 with respect to each defect are limited to the repair of such
defect in the Leased Part in which the defect appears, or, as mutually agreed,
to the replacement of such Leased Part with a similar part free from defect.

 

Any replacement part furnished under this Paragraph 12.9.5 will for the purposes
of this Letter Agreement be deemed to be the Leased Part so replaced.

 

12.9.6                  Suspension and Transportation Costs

 

12.9.6.1                                                         If a Leased
Part is found to be defective and is covered by this warranty, the Lease Term
and the Lessee’s obligation to pay rental charges as provided in Paragraph
12.4(a) of this Letter Agreement will be suspended from the date on which the
Lessee notifies the Lessor of such defect until the date on which the Lessor has
repaired, corrected or replaced the defective Leased Part, provided, however,
that the Lessee has withdrawn such defective Leased Part from use, promptly
after giving such notice to the Lessor.  If the defective Leased Part is
replaced, such replacement will be deemed to no longer be a Leased Part under
the Lease as of the date on which such part was received by the Lessor at the
return location specified in the applicable Lease.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If a Leased Part is found to be defective on first use by the Lessee and is
covered by this warranty, rental charges as provided in Paragraph 12.4(a) will
not accrue and will not be payable by the Lessee until the date on which the
Lessor has repaired, corrected or replaced the defective Leased Part.

 

12.9.6.2                                                         All
transportation and insurance costs associated with the return of the defective
Leased Part to the Lessor and the return of the repaired, corrected or
replacement part to the Lessee will be borne by the Lessor.

 

12.9.7                  Wear and Tear

 

Normal wear and tear and the need for regular maintenance and overhaul will not
constitute a defect or nonconformance under this Paragraph 12.9.

 

12.9.8.                                                                                      
EXCLUSIVITY OF WARRANTIES

 

PARAGRAPH 12.9 (INCLUDING ITS SUBPARTS) SETS FORTH THE EXCLUSIVE WARRANTIES,
EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF THE SELLER, AND THE EXCLUSIVE
REMEDIES AVAILABLE TO THE BUYER, WHETHER UNDER THIS LETTER AGREEMENT OR
OTHERWISE, ARISING FROM ANY DEFECT OR NONCONFORMITY OR PROBLEM OF ANY KIND IN
ANY LEASED PART.

 

THE BUYER RECOGNIZES THAT THE RIGHTS, WARRANTIES AND REMEDIES IN PARAGRAPH 12.9
ARE ADEQUATE AND SUFFICIENT TO PROTECT THE BUYER FROM ANY DEFECT OR
NONCONFORMITY OR PROBLEM OF ANY KIND IN THE LEASED PARTS.  THE BUYER HEREBY
WAIVES, RELEASES AND RENOUNCES ALL OTHER WARRANTIES, OBLIGATIONS, GUARANTEES AND
LIABILITIES OF THE SELLER AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF THE BUYER
AGAINST THE SELLER, WHETHER EXPRESS OR IMPLIED BY CONTRACT, TORT, OR STATUTORY
LAW OR OTHERWISE, WITH RESPECT TO ANY NONCONFORMITY OR DEFECT OR PROBLEM OF ANY
KIND IN ANY LEASED PART, INCLUDING BUT NOT LIMITED TO:

 

(8)                                                                                 
ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR ANY GENERAL OR
PARTICULAR PURPOSE;

 

(9)                                                                                 
ANY IMPLIED OR EXPRESS WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF
DEALING OR USAGE OF TRADE;

 

(10)                                                                           
ANY RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

 

(11)                                                                           
ANY RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LIABILITY, HOWEVER ALLEGED, INCLUDING, BUT NOT LIMITED TO, ACTIONS AND/OR CLAIMS
FOR NEGLIGENCE, , IMPLIED WARRANTY, PRODUCT LIABILITY, STRICT LIABILITY OR
FAILURE TO WARN;

 

(12)                                                                           
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER THE UNIFORM COMMERCIAL CODE OR ANY
OTHER STATE OR FEDERAL STATUTE;

 

(13)                                                                           
ANY RIGHT, CLAIM OR REMEDY ARISING UNDER ANY REGULATIONS OR STANDARDS IMPOSED BY
ANY INTERNATIONAL, NATIONAL, STATE OR LOCAL STATUTE OR AGENCY;

 

(14)                                                                           
ANY RIGHT, CLAIM OR REMEDY TO RECOVER OR BE COMPENSATED FOR:

 

(a)                                                          LOSS OF USE OR
REPLACEMENT OF ANY AIRCRAFT, OR LEASED;

 

(b)                                                         LOSS OF, OR DAMAGE
OF ANY KIND TO, ANY AIRCRAFT OR LEASED PART;

 

(c)                                                          LOSS OF PROFITS
AND/OR REVENUES;

 

(d)                                                         ANY OTHER INCIDENTAL
OR CONSEQUENTIAL DAMAGE.

 

THE WARRANTIES PROVIDED BY THIS LETTER AGREEMENT WILL NOT BE EXTENDED, ALTERED
OR VARIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED BY THE SELLER AND THE BUYER.  IN
THE EVENT THAT ANY PROVISION OF THIS PARAGRAPH 12.9.8 SHOULD FOR ANY REASON BE
HELD UNLAWFUL, OR OTHERWISE UNENFORCEABLE, THE REMAINDER OF THIS PARAGRAPH
12.9.8 WILL REMAIN IN FULL FORCE AND EFFECT.

 

FOR THE PURPOSE OF THIS PARAGRAPH 12.9.8, “SELLER” WILL BE UNDERSTOOD TO INCLUDE
THE SELLER, ITS AFFILIATES AND SUBCONTRACTORS.

 

12.9.9                  DUPLICATE REMEDIES

 

The remedies provided to the Buyer under this Paragraph 12 as to any part
thereof are independent but not cumulative nor duplicative.  The Buyer shall be
entitled to the remedy and/or remedies under Paragraph 12 that provides the
maximum but not duplicative benefit to it, as the Buyer may elect, pursuant to
the terms and conditions of this Paragraph 12 for any such particular defect for
which remedies are provided under this Paragraph 12; provided, however, that the
Buyer will not be entitled to elect a remedy under one part of this Paragraph 12
that constitutes a

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

duplication of any remedy elected by it under any other part hereof for the same
defect unless such defects occur as separate incidents at separate times.

 

12.10.                  NEGOTIATED AGREEMENT

 

The Buyer and Seller agree that this Paragraph 12 has been the subject of
discussion and negotiation and is fully understood by the parties, and that the
price of the Aircraft and the other mutual agreements of the parties set forth
in this Letter Agreement were arrived at in consideration of, inter alia, the
Exclusivity of Warranties and General Limitations of Liability provisions and
Duplicate Remedies provisions set forth in Paragraph 12.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

APPENDIX “A” TO PARAGRAPH 12

 

SELLER PARTS AVAILBLE TO LEASE

 

 

AILERONS

AUXILIARY POWER UNIT (APU) DOORS

CARGO DOORS

PASSENGER DOORS

ELEVATORS

FLAPS

LANDING GEAR DOORS

RUDDER

TAIL CONE

WING SLATS

SPOILERS

AIRBRAKES

WING TIPS

WINGLETS

 

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LA1B-28

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

13.           TERMINATION

 

Any termination under Clauses 10, 11 or 21 of the Agreement or under the Letter
Agreements thereto will discharge all obligations and liabilities of the parties
hereunder with respect to such undelivered Material, services, data or other
items to be purchased hereunder that are applicable to those Aircraft as to
which the Agreement has been terminated. Termination under this Paragraph 13
notwithstanding, new and unused Material in excess of the Buyer’s requirements
due to such Aircraft cancellation will be repurchased by the Seller as provided
in Paragraph 10.2.

 

14.           ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, or as may otherwise be permitted under Clause 20.2 of the
Agreement and any attempted assignment or transfer in contravention of the
provisions of this Paragraph 14 will be void and of no force or effect.

 

15.           COUNTERPARTS

 

This Letter Agreement may be signed in any number of separate counterparts. 
Each counterpart, when signed and delivered (including counterparts delivered by
facsimile transmission) will be an original, and the counterparts together will
constitute one and the same instrument.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below and return a copy
to the Seller.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S

 

 

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

Accepted and Agreed

 

 

 

 

 

HAWAIIAN AIRLINES, INC.

 

 

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

 

 

 

and

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

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*** Confidential Treatment Requested

 

LA1B-30

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 2

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement.  The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 2  (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft.  Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement.  The terms “herein,” “hereof”
and “hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

[...***...]

 

2.                                       ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, not to be unreasonably withheld or delayed, or as may otherwise
be permitted under Clause 20.2 of the Agreement, and any attempted assignment or
transfer in contravention of the provisions of this Paragraph will be void and
of no force or effect.

 

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LA2-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S

 

 

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

Accepted and Agreed

 

 

 

HAWAIIAN AIRLINES, INC.

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

 

 

 

and

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

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*** Confidential Treatment Requested

 

LA2-2

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 3

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement.  The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 3  (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft.  Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement.  The terms “herein,” “hereof”
and “hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

1.                                       DEFINITIONS

 

[...***...]

 

6.                                       ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, not to be unreasonably withheld or delayed, or as may otherwise
be permitted under Clause 20.2 of the Agreement, and any attempted assignment or
transfer in contravention of the provisions of this Paragraph will be void and
of no force or effect.

 

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LA3-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S

 

 

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

Accepted and Agreed

 

 

 

HAWAIIAN AIRLINES, INC.

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

 

 

 

and

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

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LA3-2

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 4

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement.  The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 4 (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft.  Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement.  The terms “herein,” “hereof”
and “hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

0.                                                                                      
DEFINITIONS

 

                                                                                               
Notwithstanding Clause 0 of the Agreement, the following terms shall have the
following meanings for all purposes of the Agreement:

 

                                [...***...]

 

                                                                                               
Certificate of Sanitary Construction – means a Certificate of Sanitary
Construction issued by the U.S. Public Health Service of the Food and Drug
Administration, or any equivalent successor certificate thereto.

 

                                                                                               
Goods and Services  - any goods, excluding Aircraft, and services that may be
purchased by the Buyer from the Seller or its designee under this Agreement or
any related agreement.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

                                                                                               
[...***...]

 

                                                                                               
Standard Airworthiness Certificate – a Standard Airworthiness Certificate issued
pursuant to Part 21 of the Federal Aviation Regulations, or any equivalent
successor certificate.

 

1.                                                                                   
RESERVED

 

2.                                                                                      
SPECIFICATION

 

                                                                                            
Clause 2.1 of the Agreement is cancelled and replaced with the following quoted
provisions:

 

QUOTE

 

2.1                                                                                
SPECIFICATION

 

                                                                                               
The Aircraft shall be manufactured in accordance with the Specification.

 

                                                                                               
At the date of signature of this Agreement, the design development of the
A350XWB-800 Aircraft is under finalization and the aircraft definition
corresponding to the Base Price of the A350XWB-800 Aircraft fitted with Trent
XWB74 engines at 74,000 lbs thrust, set forth in Clause 3 of this Agreement, is
contained in the ADD.

 

The ADD shall be superseded at no additional cost by an initial standard
specification the “A350XWB-800 Standard Specification”. Subject to the Seller’s
certification, industrial and commercial constraints, some equipment currently
set forth in the ADD may be replaced by equipment with equivalent functions.

 

Notwithstanding the foregoing paragraph, if certain items which are BFE in the
ADD are converted into SFE items in the A350XWB-800 Standard Specification, the
costs of such items and their incorporation into the A350XWB-800 Standard
Specification shall be chargeable to the Buyer.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

2.1.1                                                                       
Specification Amendment

 

The Seller and Buyer understand and agree that the applicable Specifications may
be amended following signature of this Agreement in accordance with the terms of
this Clause 2.

 

2.1.2                                                                       
Specification Change Notice

 

                                                                                               
Each Specification may be amended by written agreement between the Seller and
Buyer in a SCN.  Each SCN shall be substantially in the form set out in
Exhibit B1 and shall set out such SCN’s scope of implementation and shall also
set forth, in detail, the particular change to be made to the Specification and
the effect, if any, of such change on design, performance, weight, or Scheduled
Delivery Month of the Aircraft affected thereby [...***...] or replaceability
requirements of the Specification. A SCN may result in an adjustment of the Base
Price of the Aircraft, which adjustment if any, shall be specified in the SCN.

 

UNQUOTE

 

                                                                                               
Clause 2.1.4 of the Agreement is cancelled and replaced with the following
quoted provisions:

 

QUOTE

 

2.1.4                                                                       
Manufacturer Specification Changes Notices

 

The Specification may be amended by the Seller through a Manufacturer
Specification Change Notice (“MSCN”), which shall be substantially in the form
set out in Exhibit B2 hereto and shall set out in detail the particular change
to be made to the Specification and the effect, if any, of such change on
performance, weight, Base Price, Delivery Date of the Aircraft affected thereby
and [...***...] or replaceability requirements under the Specification.

 

Except when the MSCN is necessitated by an Aviation Authority Directive or by
equipment obsolescence, in which case the MSCN shall be accomplished without
requiring the Buyer’s consent, if the MSCN adversely affects the performance,
weight, Base Price, Delivery Date of the Aircraft affected thereby or the
interchangeability or replaceability requirements under the Specification, the
Seller shall notify the Buyer of a reasonable period of time during which the
Buyer must accept or reject such MSCN. If the Buyer does not notify the Seller
of the rejection

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

of the MSCN within such period, the MSCN shall be deemed accepted by the Buyer
and the corresponding modification shall be accomplished.

 

UNQUOTE

 

3.                                                                                      
RESERVED

 

4.                                                                                      
PRICE REVISION

 

                                                                                               
[...***...]

 

5.                                                                                      
PAYMENT TERMS

 

[...***...]

 

UNQUOTE

 

                                                                                            
Clauses 5.5.2, 5.5.3, 5.6, 5.7, 5.8, 5.8.1, and 5.8.2 of the Agreement are
cancelled and replaced with the following quoted provisions:

 

QUOTE

5.5.2                                                                      
Except as provided in Clause 5.5.1, the Seller shall pay all Taxes, levied,
assessed, charged or collected, on or prior to Delivery of any Aircraft, for or
in connection with the manufacture, acquisition of any component, accessory,
equipment or part delivered or furnished under this Agreement, or assembly, sale
and delivery to the Buyer under this Agreement of such Aircraft or any parts,
instructions or data installed thereon or incorporated therein (except Buyer
Furnished Equipment referred to in Clause 18).

 

5.5.3                                                                       The
Buyer shall pay all Taxes not assumed by the Seller under Clause 5.5.2,
including, but not limited to any duties or taxes due upon or in relation to the
importation of the Aircraft into the Buyer’s country and/or any withholding
taxes or deductions levied or required in the Buyer’s country with respect to
the payment to the Seller of any amount due from the Buyer hereunder, except for
Taxes based on or measured by the income of the Seller or any Taxes levied
against the Seller for the privilege of doing business in any jurisdiction.

 

“Taxes” means any present or future tax, stamp or other taxes, levies, imposts,
duties, charges, fees, deductions or withholdings, now or hereafter imposed,
levied, collected, withheld or assessed by any governmental authority or any
political subdivision or taxing authority thereof or therein.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

5.6                               Application of Payments

 

Notwithstanding any other rights the Seller may have at contract or at law, the
Buyer and the Seller hereby agree that should any amount (whether under this
Agreement or under any other agreement between the Buyer and the Seller and
whether at the stated maturity of such amount, by acceleration or otherwise)
become due and payable by any Buyer Party, and not be paid in full in
immediately available funds on the date due, then the Seller shall have the
right to debit and apply, in whole or in part, the Predelivery Payments paid to
the Seller by the Buyer against such unpaid amount.  The Seller shall promptly
notify the Buyer in writing after such debiting and application, and the Buyer
shall immediately pay to the Seller the amount required to comply with Clause
5.2.3.

 

5.7                                                 SETOFF PAYMENTS

 

Notwithstanding anything to the contrary contained herein, before being required
to make any payments to the Buyer, the Seller shall have the right to deduct
from any such payments an amount equal to any other amounts due and owing by any
Buyer Party to the Seller or any Affiliate thereof under any agreement between a
Buyer Party and the Seller or any of its Affiliates.

 

5.8                                                 OVERDUE PAYMENTS

 

5.8.1                                                                       
Except if otherwise agreed, if any payment due the Seller is not received by the
Seller on the date or dates due, the Seller shall have the right to claim from
the Buyer, and the Buyer shall promptly pay to the Seller on receipt of such
claim, interest at the rate of [...***...] per annum on the amount of such
overdue payment, to be calculated from and including the due date of such
payment to (but excluding) the date such payment is received by the Seller.  The
Seller’s right to receive such interest shall be in addition to any other rights
of the Seller hereunder or at law.

 

5.8.2                                                                        If
any Predelivery Payment is not received within [...***...] of the date on which
it is due in accordance with the schedule set forth in Clause 5.2.3, the Seller
shall be under no obligation to deliver any Aircraft remaining to be delivered
under this Agreement within such Aircraft’s Scheduled Delivery Month. Upon
receipt of full payment of all Predelivery Payments that are [...***...],
together with interest on such Predelivery Payments in accordance with Clause
5.8.1, the Seller shall provide the Buyer with new Scheduled Delivery Months for
the affected Aircraft, subject to the Seller’s commercial and industrial
constraints.

 

UNQUOTE

 

6.                                                                                   
RESERVED

 

7.                                                                                      
CERTIFICATION

 

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LA4-5

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

                                                                                            
[...***...]

 

8.                                                                                      
TECHNICAL ACCEPTANCE

 

                                                                                            
Clause 8.1.1 of the Agreement is cancelled and replaced with the following
quoted provisions:

 

QUOTE

 

8.1.1                                                                       
Prior to Delivery, the Aircraft shall undergo a technical acceptance process
developed by the Seller (the “Technical Acceptance Process”). Successful
completion of the Technical Acceptance Process shall demonstrate the
satisfactory functioning of the Aircraft and shall be deemed to demonstrate
compliance with the Specification. Should the Aircraft fail to complete the
Technical Acceptance Process satisfactorily, the Seller shall without hindrance
from the Buyer be entitled to carry out any necessary changes to make the
Aircraft compliant and, as soon as practicable thereafter, resubmit the Aircraft
to the Technical Acceptance Process to the extent necessary to demonstrate full
compliance with the requirements of the Technical Acceptance Process.

 

[...***...]

 

UNQUOTE

 

                                                                                            
Clause 8.2.3 of the Agreement is cancelled and replaced with the following
quoted provisions:

 

QUOTE

 

8.2.3                                                                        If
the Buyer does not attend or fails to cooperate in the Technical Acceptance
Process, the Seller shall be entitled to complete the Technical Acceptance
Process in compliance with Clause 8.1 without the Buyer’s attendance, and
provided that the Technical Acceptance Process is completed successfully and
that the Seller so represents to the Buyer, the Buyer shall be deemed to have
accepted that the Technical Acceptance Process has been completed, in all
respects.

 

UNQUOTE

 

                                                                                            
Clause 8.5 of the Agreement is cancelled and replaced with the following quoted
provisions:

 

QUOTE

 

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LA4-6

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

8.5                                                 AIRCRAFT UTILIZATION

 

The Seller shall, without payment or other liability, be entitled to use the
Aircraft before Delivery for up to a maximum of twenty (20) hours for any
purpose without specific agreement of the Buyer. Such use shall not limit the
Buyer’s obligation to accept Delivery hereunder.

 

UNQUOTE

 

9.                                                                                      
DELIVERY

 

                                                                                               
Clause 9.1 of the Agreement is supplemented by the following quoted provision:

 

QUOTE

 

[...***...]

 

UNQUOTE

 

                                                                                               
Clause 9.2.3 of the Agreement is cancelled and replaced with the following
quoted provisions:

 

QUOTE

 

9.2.3                                                                        If
the Buyer fails to (i) deliver the signed Certificate of Acceptance to the
Seller on or before the Delivery Date, provided that the Aircraft has
successfully completed the Technical Acceptance Process or (ii) pay the Balance
of the Final Contract Price for the Aircraft to the Seller on the Delivery Date,
then the Buyer shall be deemed to have rejected Delivery wrongfully when the
Aircraft was duly tendered to the Buyer hereunder. If such a deemed rejection
arises, the Seller shall retain title to the Aircraft and the Buyer shall
indemnify and hold the Seller harmless against any and all reasonable costs
(including but not limited to any parking, storage, and insurance costs but
excluding consequential or special damages resulting from the Buyer’s
rejection). The Seller shall be under no duty to the Buyer to store, park, or
otherwise protect the Aircraft, it being understood that the Seller retains an
obligation to use reasonable efforts to mitigate its costs and expenses.  These
rights of the Seller shall be in addition to the Seller’s other rights and
remedies in this Agreement.

 

UNQUOTE

 

                                                                                               
Clause 9.3 is supplemented by the following quoted provision:

 

QUOTE

 

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LA4-7

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

9.3.3

Provided that (i) Buyer furnishes the selcal code, registration number and
information necessary to the Seller relating to mode-s at least 3 months before
Delivery, and (ii) the Buyer furnishes to the Seller no later than thirty (30)
days prior to Delivery the legend to appear on the ownership placards, and the
placard installation such as on the Airframe only, the engines only, or on both
the airframe and engines, then the Seller shall fabricate and install ownership
placards on the Airframe and/or engines.

 

UNQUOTE

 

10.                                                                                
EXCUSABLE DELAY AND TOTAL LOSS

 

                                                                                               
Clause 10 of the Agreement is cancelled and replaced by the following quoted
provisions:

 

QUOTE

 

10.1                                          SCOPE OF EXCUSABLE DELAY

 

                                                           
                                    Neither the Seller nor any Affiliate of the
Seller, shall be responsible for or be deemed to be in default on account of
delays in Delivery of the Aircraft or failure to deliver or otherwise in the
performance of its other obligations under this Agreement or any part hereof but
only to the extent that such delay is due to causes beyond the Seller’s, or any
Affiliate’s control and not occasioned by the Seller’s, fault or negligence
(“Excusable Delay”), including, but not limited to: (i) acts of God or the
public enemy, natural disasters, fires, floods, storms beyond ordinary strength,
explosions or earthquakes; epidemics or quarantine restrictions; total or
constructive total loss; compliance with any mandatory law, decision,
regulation, directive or other act  of any government or of the Council of the
European Community or the Commission of the European Community or of any
national, Federal, State, municipal or other governmental department,
commission, board, bureau, agency, court or instrumentality, domestic or
foreign; governmental priorities, regulations or orders affecting allocation of
materials, facilities or a completed Aircraft; war, civil war or warlike
operations, terrorism, insurrection or riots; failure of transportation; strikes
or labor troubles causing cessation, slow down or interruption of work; delay in
obtaining any airworthiness or type certification after due and timely
diligence; inability after due and timely diligence to procure materials,
accessories, equipment or parts; or failure of a subcontractor or Supplier
[...***...] to furnish materials, components, accessories, equipment or parts
[...***...]; (ii) [...***...]; and (iii) delay in delivery or otherwise in the
performance of this Agreement by the Seller due in whole or in part to any delay
in or failure of the delivery of, or any other event or circumstance relating
to, the Propulsion Systems [...***...] or Buyer Furnished Equipment [...***...].

 

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LA4-8

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

10.2                                          CONSEQUENCES OF EXCUSABLE DELAY

 

10.2.1                                                                  If an
Excusable Delay occurs the Seller shall

 

(v)                                                                                
notify the Buyer of such Excusable Delay as soon as practicable after becoming
aware of the same;

 

(vi)                                                                             
not be deemed to be in default in the performance of its obligations hereunder
as a result of such Excusable Delay;

 

(vii)                                                                          
not be responsible for any damages arising from or in connection with such
Excusable Delay suffered or incurred by the Buyer;

 

(viii)                                                                        as
soon as practicable after the removal of the cause of such Excusable Delay
resume performance of its obligations under this Agreement and in particular
shall notify the Buyer of the revised Scheduled Delivery Month, and

 

(ix)                                                                               
shall take all reasonable steps within its control to reduce the effect of any
delay.

 

[...***...]

 

10.3                                          TERMINATION ON EXCUSABLE DELAY

 

10.3.1                                                                 
                If any Delivery is delayed as a result of one or more Excusable
Delays for a period of more than [...***...] after the last day of the Scheduled
Delivery Month, then either party may terminate this Agreement with respect to
the affected Aircraft, by giving written notice to the other party within thirty
(30) days after the expiration of such [...***...] period and following such
termination, the parties shall have no further rights or obligations with
respect to such affected Aircraft [...***...].  Notwithstanding the foregoing,
the Buyer shall not be entitled to terminate this Agreement or to receive
payment pursuant to this Clause 10.3.1if the Excusable Delay is caused directly
or indirectly by the action or inaction of the Buyer or its representatives.

 

10.3.2                                                                  If the
Seller advises the Buyer in its notice of a revised Scheduled Delivery Month
pursuant to Clause 10.2.1(iv) that there shall be a delay in Delivery of an
Aircraft of more than [...***...] after the last day of the Scheduled Delivery
Month, then either party may terminate this Agreement with respect to the
affected Aircraft.  Termination shall be made by giving written notice to the
other party within [...***...] after the Buyer’s receipt of the notice of a
revised Scheduled Delivery Month and following such termination, the parties
shall have no further rights or obligations with respect to such affected
Aircraft

 

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LA4-9

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...].

 

Notwithstanding the foregoing, the Buyer shall not be entitled to terminate this
Agreement [...***...] pursuant to this Clause 10.3.2 if the Excusable Delay is
caused directly or indirectly by the action or inaction of the Buyer or its
representatives.

 

10.3.3                                                                  If this
Agreement is not terminated under the terms of Clause 10.3.1 or 10.3.2, then the
Seller shall be entitled to reschedule Delivery. The Seller shall confirm to the
Buyer the new Scheduled Delivery Month after the thirty (30) day period referred
to in Clause 10.3.1 or 10.3.2, which shall be either the Scheduled Delivery
Month notified to the Buyer under Clause 10.2.1 (iv) or such other month as may
be agreed by the parties, and this new Scheduled Delivery Month shall be deemed
to be an amendment to the applicable Scheduled Delivery Month in Clause 9.1.1.

 

10.4        TOTAL LOSS, DESTRUCTION OR DAMAGE

 

If, prior to Delivery, any Aircraft is lost, destroyed or in the reasonable
opinion of the Seller is damaged beyond economic repair (“Total Loss”), the
Seller shall notify the Buyer to this effect within ten (10) Business Days of
such occurrence. The Seller shall include in said notification (or as soon after
the issue of the notice as such information becomes available to the Seller) the
earliest date consistent with the Seller’s other commitments and production
capabilities that an aircraft to replace the Aircraft may be delivered to the
Buyer and the Scheduled Delivery Month shall be extended as specified in the
Seller’s notice to accommodate the delivery of the replacement aircraft;
provided, however, that if the Scheduled Delivery Month is extended to a month
that is later than [...***...] after the last day of the original Scheduled
Delivery Month then this Agreement shall terminate with respect to said Aircraft
unless:

 

(i)                                                                                    
the Buyer notifies the Seller within thirty (30) days of the date of receipt of
the Seller’s notice that it desires the Seller to provide a replacement aircraft
during the month quoted in the Seller’s notice; and

 

(ii)                                                                                 
the parties execute an amendment to this Agreement recording the change in the
Scheduled Delivery Month, in which case, to the extent the Total Loss is not due
to action or inaction of the Buyer or its representatives:

 

[...***...]

 

                                                                                              
Nothing herein shall require the Seller to manufacture and deliver a replacement
aircraft if such manufacture would require the reactivation of its production
line for

 

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LA4-10

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

the model or series of aircraft that includes the Aircraft. Any termination
pursuant to this Clause 10.4 as to a particular Aircraft shall discharge the
obligations and liabilities of the parties hereunder with respect to such
Aircraft, except that the Seller shall pay to the Buyer an amount equal to the
Predelivery Payments received from the Buyer hereunder in respect of the
affected Aircraft, [...***...].

 

                                                                                               
Notwithstanding the foregoing, the Buyer shall not be entitled to terminate this
Agreement [...***...] to this Clause 10.4 if the Total Loss is caused directly
or indirectly by the action or inaction of the Buyer or its representatives.

 

10.5                                          REMEDIES

 

                                                                                         
THIS CLAUSE 10 SETS FORTH THE SOLE AND EXCLUSIVE REMEDY OF THE BUYER FOR DELAYS
IN DELIVERY OR FAILURE TO DELIVER, OTHER THAN SUCH DELAYS AS ARE COVERED BY
CLAUSE 11, AND THE BUYER HEREBY WAIVES ALL RIGHTS TO WHICH IT WOULD OTHERWISE BE
ENTITLED IN RESPECT THEREOF, INCLUDING, WITHOUT LIMITATION, ANY RIGHTS TO
INCIDENTAL AND CONSEQUENTIAL DAMAGES OR SPECIFIC PERFORMANCE.

 

11.                                                                                
INEXCUSABLE DELAY

 

                                                                                               
Clause 11 of the Agreement is cancelled and replaced by the following quoted
provisions:

 

QUOTE

 

11.1.1                                LIQUIDATED DAMAGES

 

Should an Aircraft not be Ready for Delivery after the last day of the Scheduled
Delivery Month (as such month may be changed pursuant to Clauses 2, 7 or 10) and
such delay is not as a result of an Excusable Delay or Total Loss, then such
delay shall be termed an “Inexcusable Delay”. In the event of an Inexcusable
Delay, the Buyer shall have the right to claim, and the Seller shall pay the
Buyer liquidated damages of an amount equal to the Liquidated Damages Amount for
the affected Aircraft for each day of delay in the Delivery, starting the day
following the last day of the Scheduled Delivery Month.

 

[...***...]

 

11.2                                          RENEGOTIATION

 

                                                                                               
If, as a result of an Inexcusable Delay, Delivery does not occur within
[...***...] the Buyer shall have the right, exercisable by written notice to the
Seller [...***...] to require from the Seller a good faith renegotiation of the
Scheduled Delivery Month for the affected Aircraft. Unless otherwise agreed
between the Seller and

 

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LA4-11

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

the Buyer during such renegotiation, the said renegotiation shall not prejudice
Buyer’s right to receive liquidated damages in accordance with Clause 11.1.

 

11.3                                          TERMINATION

 

[...***...]

 

If, as a result of one or more Inexcusable Delays, Delivery does not occur
[...***...] and the parties have not renegotiated the Delivery Date pursuant to
Clause 11.2, then either party shall have the right exercisable by written
notice to the other party, [...***...], to terminate this Agreement in respect
of the affected Aircraft. In the event of termination, neither party shall have
any claim against the other, except that the Seller shall pay to the Buyer any
amounts due pursuant to Clause 11.1 unless already paid, and the Seller shall
pay to the Buyer an amount equal to the Predelivery Payments received from the
Buyer hereunder in respect of the Aircraft as to which this Agreement has been
terminated, [...***...].

 

11.4                                          REMEDIES

 

THIS CLAUSE 11 SETS FORTH THE SOLE AND EXCLUSIVE REMEDY OF THE BUYER FOR DELAYS
IN DELIVERY OR FAILURE TO DELIVER, OTHER THAN SUCH DELAYS AS ARE COVERED BY
CLAUSE 10, AND THE BUYER HEREBY WAIVES ALL RIGHTS TO WHICH IT WOULD OTHERWISE BE
ENTITLED IN RESPECT THEREOF, INCLUDING WITHOUT LIMITATION ANY RIGHTS TO
INCIDENTAL AND CONSEQUENTIAL DAMAGES OR SPECIFIC PERFORMANCE. THE BUYER SHALL
NOT BE ENTITLED TO CLAIM THE REMEDIES AND RECEIVE THE BENEFITS PROVIDED IN THIS
CLAUSE 11 WHERE THE DELAY REFERRED TO IN THIS CLAUSE 11 IS CAUSED BY THE
NEGLIGENCE OR FAULT OF THE BUYER OR ITS REPRESENTATIVES.

 

UNQUOTE

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.

WARRANTIES AND SERVICE LIFE POLICY

 

 

 

Clause 12 of the Agreement is cancelled and replaced with the following quoted
provisions:

 

 

QUOTE

 

12.1                                          WARRANTY

 

12.1.1                                                                  Nature
of Warranty

 

                                                                                               
Subject to the limitations and conditions hereinafter provided, and except as
provided in Clause 12.1.2, the Seller warrants to the Buyer that each Aircraft
and Warranted Part shall at the time of Delivery to the Buyer be free from
defects:

 

(v)                                                                                
in material,

 

(vi)                                                                             
in workmanship, including, without limitation, processes of manufacture,

 

(vii)                                                                          
in design (including, without limitation, selection of materials) having regard
to the state of the art at the date of such design, and

 

(viii)                                                                       
arising from failure to conform to the Specification, except as to  those
portions of the Specification that are expressly stated in the Specification to
be estimates or approximations or design aims.

 

For the purposes of this Agreement, the term “Warranted Part” shall mean any
Seller proprietary component, equipment, software, or part, that (a) is
installed on an Aircraft at Delivery, (b) is manufactured to the detail design
of the Seller or a subcontractor of the Seller or, with respect to software, is
developed to the detail design of the Seller or a subcontractor of the Seller
and (c) bears a Seller part number at the time of Delivery.

 

12.1.2                                                                 
Exclusions

 

                                                                                               
The warranties set forth in Clause 12.1.1 shall not apply to Buyer Furnished
Equipment, Propulsion Systems, or to any component, accessory, equipment or part
purchased by the Buyer that is not a Warranted Part, provided, however, that:

 

(i)                                                                                    
any defect in the Seller’s workmanship in respect of the installation of such
items in the Aircraft, including any failure by the Seller to conform to the
installation instructions of the manufacturers of such items that invalidates
any applicable warranty from such manufacturers, shall constitute a defect in
workmanship for the purpose of this Clause 12.1 and be covered by the warranty
set forth in Clause 12.1.1(ii), and

 

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LA4-13

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(ii)                                                                              
any defect inherent in the Seller’s design of the installation, considering the
state of the art at the date of such design, that impairs the use of such items
shall constitute a defect in design for the purposes of this Clause 12.1 and be
covered by the warranty set forth in Clause 12.1.1(iii).

 

                                                                                               
In addition, the warranties set forth in Clause 12.1.1 shall not apply to any
defect arising from any act or omission of the Buyer, including but not limited
to, any failure to operate and maintain the affected Aircraft or part thereof in
accordance with the standards set forth in Clause 12.1.11 or from any act or
omission of any third party (such third party not to include the Seller, its
Affiliates and subcontractors).

 

[...***...]

 

12.1.5                                                                 
Limitations of Warranty

 

12.1.4.1                                                      The Buyer’s remedy
and the Seller’s obligation and liability under Clauses 12.1.1 and 12.1.2 are
limited to, at the Seller’s expense and option, acting in a commercial
reasonable manner, the repair, replacement or correction (to include, in the
case of software, supply of a comparable product with equivalent function) of
any defective Warranted Part.  The Seller may elect to effect such repair,
replacement or correction by supplying modification kits designed to rectify the
defect or [...***...] by furnishing a credit to the Buyer for the future
purchase of goods and services (not including Aircraft) equal to the price at
which the Buyer is then entitled to acquire a replacement for the defective
Warranted Part.

 

12.1.4.2                                                      If the Seller
corrects a defect covered by Clause 12.1.1(iii) that becomes apparent within the
Warranty Period, on the Buyer’s written request the Seller shall correct any
such defect of the same type in any Aircraft that has not already been delivered
to the Buyer.  The Seller shall not be responsible for, nor deemed to be in
default on account of any delay in Delivery of any Aircraft or otherwise, in
respect of performance of correcting a defect covered by Clause 12.1.1(iii), due
to the Seller’s undertaking to make such correction. Alternatively, the Buyer
and the Seller may agree to deliver such Aircraft with subsequent correction of
the defect by the Buyer at the Seller’s expense, or the Buyer may elect to
accept Delivery and thereafter file a Warranty Claim as though the defect had
become apparent immediately after Delivery of such Aircraft.

 

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LA4-14

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.1.5                                                               Cost of
Inspection

 

12.1.5.1                                                      In addition to the
remedies set forth in Clauses 12.1.4.1 and 12.1.4.2, the Seller shall reimburse
the direct labor costs incurred by the Buyer in performing inspections of the
Aircraft that are conducted:

 

(i)                                                                                 
to determine whether a defect exists in any Warranted Part within the Warranty
Period or

 

(ii)                                                                                 
pending the Seller’s provision of a corrective technical solution.

 

12.1.5.2                                                         The Seller’s
liability under Clause 12.1.5.1 is subject to the following conditions:

 

(iii)                                                                           
Such inspections are recommended in a Seller Service Bulletin to be performed
within the Warranty Period or such inspection would be otherwise covered by a
Warranty Claim;

 

(iv)                                                                          
Such inspections are not performed in lieu of corrective action that has been
provided by the Seller prior to the dates of such inspection;

 

[...***...]

 

12.1.6                                                                  Warranty
Claim Requirements

 

                                                                                               
The Buyer’s remedy and the Seller’s obligation and liability under this Clause
12.1 with respect to each claimed defect are subject to the following
conditions:

 

(v)                                                                                
the defect has become apparent within the Warranty Period,

 

(vi)                                                                             
the Buyer has filed a Warranty Claim within [...***...], except where the Seller
has issued a Service Bulletin intended to provide a remedy for such a defect, in
which case the Warranty Claim must be filed no later than [...***...]wing
embodiment of the Seller Service Bulletin in the last A330-200 Aircraft or the
last A350XWB-800 Aircraft as applicable.

 

(vii)                                                                          
the Buyer returns the Warranted Part claimed to be defective to the repair
facilities designated by the Seller as soon as practicable, unless the Buyer
elects to repair a defective Warranted Part in accordance with the provisions of
Clause 12.1.8; and

 

(viii)                                                                       
the Seller’s receives a Warranty Claim complying with the provisions of Clause
12.1.7(v).

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(v)                                                                                
receipt of a Warranty Claim by Seller in accordance with Clause 12.1.6
(ii) secures the Buyer’s right to claim remedies even though a correction is
performed after the expiration of the Warranty Period.

 

12.1.7                                                                  Warranty
Administration

 

The warranties set forth in this Clause 12.1 shall be administered as
hereinafter provided:

 

(i)                                                                                    
Claim Determination

 

Determination by the Seller as to whether any claimed defect in any Warranted
Part is a valid Warranty Claim shall be made by the Seller and shall be based on
claim details, reports from the Seller’s regional representative, historical
data logs, inspections, tests, findings during repair, defect analysis and other
relevant documents and information.

 

(ii)                                                                                 
[...***...]

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(vi)                                                                             
Replacements

 

                                                                                               
Replaced components, equipment, accessories or parts shall become the Seller’s
property.

 

                                                                                               
Title to and risk of loss of any Aircraft, component, accessory, equipment or
part returned by the Buyer to the Seller shall at all times remain with the
Buyer, except that (i) when the Seller has possession of a returned Aircraft,
component, accessory, equipment or part to which the Buyer has title, the Seller
shall have such responsibility therefor as is chargeable by law to a bailee for
hire, but the Seller shall not be liable for loss of use, and (ii) title to and
risk of loss of a returned component, accessory, equipment or part shall pass to
the Seller on shipment by the Seller to the Buyer of any item furnished by the
Seller to the Buyer as a replacement therefor.  Upon the Seller’s shipment to
the Buyer of any replacement component, accessory, equipment or part provided by
the Seller pursuant to this Clause 12.1, title to and risk of loss of such
replacement component, accessory, equipment or part shall pass to the Buyer.

 

(vii)                                                                          
Rejection

 

                                                                                               
The Seller shall provide reasonable written substantiation in case of rejection
of a Warranty Claim.  The Buyer shall pay to the Seller reasonable inspection
and test charges incurred by the Seller in connection with the investigation and
processing of a rejected Warranty Claim, and the costs of transportation
associated with such Warranted Part.

 

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LA4-17

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(viii)                                                                       
Inspection

 

                                                                                               
The Seller shall have the right to inspect the affected Aircraft and documents
and other records relating thereto in the event of any claim under this Clause
12.1.

 

12.1.8                                                                  In-house
Warranty

 

(i)                                                                                    
Authorization

 

                                                                                               
The Buyer is hereby authorized to repair Warranted Parts, subject to the terms
of this Clause 12.1.8 (“In-house Warranty Repair”). [...***...] the Buyer shall
notify the Resident Customer Support Representative, of its decision to perform
any in-house repairs before such repairs are commenced.  The Buyer’s notice
shall include sufficient detail regarding the defect, estimated labor hours and
material to allow the Seller to ascertain the reasonableness of the estimate. 
The Seller shall use commercially reasonable efforts to ensure a prompt response
(in no event in excess of three (3) Business Days) and shall not unreasonably
withhold authorization.

 

(ii)                                                                                 
Conditions of Authorization

 

                                                                                               
The Buyer shall be entitled to the benefits under this Clause 12.1.8 for repair
of Warranted Parts:

 

c.                                                               if the Buyer
complies with the terms of Clause 12.1.8(i);

 

d.                                                              if adequate
facilities and qualified personnel are available to the Buyer.

 

c.                                                               provided that
repairs are to be performed in accordance with the Seller’s written instructions
set forth in applicable Technical Data,

 

d.                                                              only to the
extent reasonably necessary to correct the defect, in accordance with the
standards set forth in Clause 12.1.11.

 

(iii)                                                                              
Seller’s Rights

 

                                                                                               
The Seller shall have the right to require the return to Seller of any Warranted
Part, or any part removed therefrom, that is claimed to be defective, if, in the
Seller’s judgment, the nature of the claimed defect requires technical
investigation.  Such delivery shall be subject to the provisions of Clause
12.1.7(ii).

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

The Seller shall have the right to have a representative present during the
disassembly, inspection and testing of any Warranted Part claimed to be
defective, provided that Seller’s exercise of such right does not unreasonably
delay the disassembly, inspection and testing of any Warranted Part.

 

(iv)                                                                             
In-house Warranty Claim Substantiation

 

                                                                                               
Claims for In-house Warranty Repair credit must be submitted to the Seller
[...***...] following completion of such In-House Warrranty Repair and shall
comply with the requirements for Warranty Claims under Clause 12.1.6(v) and in
addition shall include:

 

(f)                                                a report of technical
findings with respect to the defect,

 

(g)                                             for parts required to remedy the
defect:

 

·                              part numbers,

·                              serial numbers (if applicable),

·                              description of the parts,

·                              quantity of parts,

·                              unit price of parts,

 

·                               copies of related Seller’s or third party’s
invoices (if applicable),

·                               total price of parts

 

(h)                                             detailed number of labor hours,

 

(i)                                                 In-house Warranty Labor
Rate, and

 

(j)                                                 total claim value.

 

(v)                                                                                
Credit

 

                                                                                               
The Buyer’s sole remedy, and the Seller’s sole obligation and liability, in
respect of In-house Warranty Repair claims, shall be a credit to the Buyer’s
account.  Such credit shall be equal to [...***...].

 

(b)                                             To determine direct labor costs,
only the manhours spent on removal from the Aircraft disassembly, inspection,
repair, reassembly, and final inspection and test of the Warranted Part, and
reinstallation thereof on the Aircraft shall be counted.  The hours required for
maintenance work concurrently being carried out on the Aircraft or Warranted
Part shall not be included.

 

(c)                                              [...***...]

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

The In-house Warranty Labor Rate is subject to adjustment annually by
multiplying it by the ratio ECIn/ECIb.  For the purposes of this Clause
12.1.8(v) only, ECIn is equal to the Labor Index defined in the Seller Price
Revision Formula.

 

(c)                                              Direct material costs are
determined by the prices at which the Buyer acquired such material, excluding
any parts and materials used for overhaul furnished free of charge by the
Seller.

 

(vi)                                                                             
Limitation on Credit

 

                                                                                               
The Buyer shall in no event be credited for repair costs (labor or material) for
any Warranted Part if such repair costs exceed [...***...] of the Seller’s
then-current catalog price for a replacement of such defective Warranted
Part provided such replacement part is readily available for purchase by the
Buyer.

 

                                                                                               
If the estimate to repair a defective Warranted Part [...***...] of the Seller’s
then-current catalog price for a replacement of such defective Warranted Part,
the Seller shall either provide a credit to the Buyer for an amount equal to
[...***...] of the Seller’s then-current catalog price for a replacement part,
or a new replacement part, at the [...***...] option.

 

                                                                                               
Seller shall substantiate Seller’s price in writing at Buyer’s request if the
warranted part is not in the CS Catalogue.

 

(vii)                                                                          
Scrapped Material

 

                                                                                               
The Buyer may, with the agreement of the Seller’s Resident Customer Support
Representative, scrap any defective Warranted Parts that are beyond economic
repair and not required for technical evaluation.

 

                                                                                               
If the Buyer does not obtain the agreement of the Seller’s Resident Customer
Support Representative to scrap a Warranted Part immediately, the Buyer shall
retain such Warranted Part and any defective part removed from a Warranted
Part during repair for a period of [...***...].  Such parts shall be returned to
the Seller within [...***...], at [...***...] cost.

 

                                                                                               
A record of scrapped Warranted Parts, certified by an authorized representative
of the Buyer, shall be kept in the Buyer’s file for at least the duration of the
Warranty Period.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(viii)                                                                       
DISCLAIMER OF SELLER LIABILITY FOR BUYER’S REPAIR

 

THE SELLER SHALL NOT BE LIABLE FOR, AND THE BUYER SHALL INDEMNIFY THE SELLER
AGAINST, THE CLAIMS OF ANY THIRD PARTIES FOR LOSSES DUE TO ANY DEFECT,
NONCONFORMANCE OR PROBLEM OF ANY KIND, ARISING OUT OF OR IN CONNECTION WITH ANY
REPAIR OF WARRANTED PARTS UNDERTAKEN BY THE BUYER UNDER THIS CLAUSE 12.1.8 OR
ANY OTHER ACTIONS UNDERTAKEN BY THE BUYER UNDER THIS CLAUSE 12.1.8, IN EACH CASE
OTHER THAN IF CAUSED, DIRECTLY OR INDIRECTLY, BY SELLER’S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT, WHETHER SUCH CLAIM IS ASSERTED IN CONTRACT OR IN TORT, OR IS
PREMISED ON ALLEGED, ACTUAL, IMPUTED, ORDINARY OR INTENTIONAL ACTS OR OMISSIONS
OF THE BUYER OR THE SELLER.

 

12.1.9                                                                  Warranty
Transferability

 

Notwithstanding the provisions of Clause 20.1, the warranties provided for in
this Clause 12.1 for any Warranted Part shall accrue to the benefit of any
airline in revenue service other than the Buyer, if the Warranted Part enters
into the possession of any such airline as a result of a pooling or interchange
agreement between such airline and the Buyer, in accordance with the terms and
subject to the limitations and exclusions of the foregoing warranties and to
applicable laws or regulations.

 

12.1.10                                                            Warranty for
Corrected, Replacement or Repaired Warranted Parts

 

Whenever any Warranted Part that contains a defect for which the Seller is
liable under this Clause 12.1 has been corrected, repaired or replaced pursuant
to the terms hereof, the period of the Seller’s warranty with respect to such
corrected, repaired or replacement Warranted Part, shall be [...***...]. If a
defect is attributable to a defective repair or replacement by the Buyer, a
Warranty Claim with respect to such defect shall be rejected, notwithstanding
any subsequent correction or repair, and shall immediately terminate the
remaining warranties under this Clause 12.1 in respect of the affected Warranted
Part.

 

12.1.11    Operation - Normal Wear and Tear

 

The Buyer’s rights under this Clause 12.1 are subject to the Aircraft and each
component, equipment, accessory and part thereof being maintained, overhauled,
repaired and operated in accordance with all technical documentation and any
other instructions issued by the Seller, the Suppliers or the manufacturer of
the Propulsion Systems and all applicable rules, regulations and directives of
the relevant Aviation Authorities.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

The Seller’s liability under this Clause 12.1 shall not extend to normal wear
and tear or to

 

(iv)                                                                             
any Aircraft or component, equipment, accessory or part thereof that has been
repaired, altered or modified after Delivery in a manner other than that
approved by the Seller;

 

(v)                                                                                
any Aircraft or component, equipment, accessory or part thereof that has been
[...***...] damaged [...***...];

 

(vi)                                                                             
any component, equipment, accessory or part from which the trademark, trade
name, part or serial number or other identification marks have been
intentionally removed rather than through normal wear and tear.

 

12.2                                                                          
SERVICE LIFE POLICY

 

12.2.1                                                                  Scope
and Definitions

 

In addition to the warranties set forth in Clause 12.1, the Seller agrees that
should a Failure occur in any Item (as these terms are defined below), then,
subject to the general conditions and limitations set forth in Clause 12.2.4,
the provisions of this Clause 12.2 shall apply.

 

For the purposes of this Clause 12.2:

 

(iii)                                                                              
“Item” means any of the Seller components, equipment, accessories or parts
listed in Exhibit C that are installed on an Aircraft at any time during the
period of effectiveness of the Service Life Policy specified in Clause 12.2.2.

 

(iv)                                                                             
“Failure” means [...***...]

 

The Seller’s obligations under this Clause 12.1.2 are referred to as the
“Service Life Policy.”

 

12.2.2                                          Periods and Seller’s Undertaking

 

Subject to the general conditions and limitations set forth in Clause 12.2.4,
the Seller agrees that if a Failure occurs in an Item [...***...] the Seller
shall, at its discretion, as promptly as practicable and for a price that
reflects the Seller’s financial participation as hereinafter provided, either:

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(iv)                                                                             
design and furnish to the Buyer a correction for such Item and provide any parts
required for such correction (including Seller designed standard parts but
excluding industry standard parts), or

 

(v)                                                                                
replace such Item.

 

12.2.3                                                                  Seller’s
Participation in the Cost

 

Any part or Item or part that the Seller is required to furnish to the Buyer
under this Service Life Policy shall be furnished to the Buyer at the Seller’s
current sales price therefor, less the Seller’s financial participation, which
shall be determined in accordance with the following formula:

 

P =                   C  (N  -  T)

N

 

where

 

P:                                                                                     
financial participation of the Seller,

 

C:                                                                                    
the Seller’s then current sales price for the required Item or required Seller
designed parts,

 

and

 

(i)                                                                                    
T:                                                                                    
total flying time in hours of the Aircraft since Delivery of the Aircraft in
which the Item subject to a Failure was originally installed,

 

and

 

N:                                                                                   
[...***...]

 

or

 

(ii)                                                                                 
T:                                                                                    
total number of flight cycles since Delivery that have been accumulated by the
Aircraft in which the Item subject to a Failure was originally installed,

 

and

 

N:                                                                                   
[...***...]

 

or,

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(iii)                                                                              
T:             total time in months since Delivery of the Aircraft in which the
Item subject to a Failure was originally
        installed,

 

and

 

N:                                                                                   
[...***...]

 

whichever of the foregoing clauses (i), (ii) and (iii) yields the lowest ratio
of:

 

 N  -  T

                    N

 

12.2.4                                          General Conditions and
Limitations

 

12.2.4.1                                 Notwithstanding any provision of this
Clause 12.2, during the Warranty Period, all Items shall be covered by the
provisions of Clause 12.1 of this Agreement and not by the provisions of this
Clause 12.2.

 

12.2.4.5                                 The Buyer’s remedies and the Seller’s
obligations and liabilities under this Service Life Policy are subject to the
following conditions:

 

(i)                                                             The Buyer
maintains log books or other historical records with respect to each Item
adequate to enable the Seller to determine whether the alleged Failure is
covered by this Service Life Policy and, if so, to define the portion of the
cost to be borne by the Seller in accordance with Clause 12.2.3.

 

(vi)                                                      The Buyer keeps the
Seller informed of any significant incidents relating to an Aircraft, howsoever
occurring or recorded.

 

(vii)                                                   The Buyer complies with
the conditions of Clause 12.1.11.

 

(viii)                                                The Buyer implements
specific structural inspection programs for monitoring purposes as may be
established from time to time by the Seller.  Such programs shall be, to the
extent possible, compatible with the Buyer’s operational requirements and shall
be carried out at the Buyer’s expense, reports relating thereto to be regularly
furnished to the Seller.

 

(ix)                                                        The Buyer reports in
writing any breakage or defect to the Seller within seventy-five (75) days after
any breakage or defect in an Item becomes apparent, whether or not the breakage
or defect can reasonably be expected to occur in any other Aircraft, and the
Buyer provides the Seller with sufficient detail about the breakage or defect to
enable the Seller to determine whether said breakage or defect is subject to
this Service Life Policy.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.2.4.6                                 Except as otherwise provided in this
Clause 12.2, any claim under this Service Life Policy shall be administered as
provided in, and shall be subject to the terms and conditions of, Clause 12.1.6.

 

12.2.4.7                                 If the Seller has issued a service
bulletin modification applicable to an Aircraft, the purpose of which is to
avoid a Failure, the Seller may elect to supply the necessary modification kit
free of charge or under a pro rata formula established by the Seller.  If such a
kit is so offered to the Buyer, then, in respect of such Failure and any
Failures that could ensue therefrom, the Seller’s commitment under this Clause
12.2 remains in effect but shall be subject to the Buyer’s incorporating such
modification in the relevant Aircraft, within a reasonable time following such
failure, in accordance with the Seller’s instructions.

 

12.2.4.5                                 THIS SERVICE LIFE POLICY IS NEITHER A
WARRANTY, PERFORMANCE GUARANTEE, NOR AN AGREEMENT TO MODIFY ANY AIRCRAFT OR
AIRFRAME COMPONENTS TO CONFORM TO NEW DEVELOPMENTS OCCURRING IN THE STATE OF
AIRFRAME DESIGN AND MANUFACTURING ART.  THE SELLER’S OBLIGATION UNDER THIS
CLAUSE 12.2 IS TO MAKE ONLY THOSE CORRECTIONS TO THE ITEMS OR FURNISH
REPLACEMENTS THEREFOR AS PROVIDED IN THIS CLAUSE 12.2. THE BUYER’S SOLE REMEDY
AND RELIEF FOR THE NONPERFORMANCE OF ANY OBLIGATION OR LIABILITY OF THE SELLER
ARISING UNDER OR BY VIRTUE OF THIS SERVICE LIFE POLICY SHALL BE IN A CREDIT FOR
GOODS AND SERVICES, LIMITED TO THE AMOUNT THE BUYER REASONABLY EXPENDS IN
PROCURING A CORRECTION OR REPLACEMENT FOR ANY ITEM THAT IS THE SUBJECT OF A
FAILURE COVERED BY THIS SERVICE LIFE POLICY AND TO WHICH SUCH NONPERFORMANCE IS
RELATED, LESS THE AMOUNT THAT THE BUYER OTHERWISE WOULD HAVE BEEN REQUIRED TO
PAY UNDER THIS CLAUSE 12.2 IN RESPECT OF SUCH CORRECTED OR REPLACEMENT ITEM. 
WITHOUT LIMITING THE EXCLUSIVITY OF WARRANTIES AND GENERAL LIMITATIONS OF
LIABILITY PROVISIONS SET FORTH IN CLAUSE 12.5, THE BUYER HEREBY WAIVES, RELEASES
AND RENOUNCES ALL CLAIMS TO ANY FURTHER DIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, INCLUDING LOSS OF PROFITS AND FURTHER WAIVES RELEASES AND RENOUNCES ALL
OTHER RIGHTS, CLAIMS AND REMEDIES, OTHER THAN THOSE ARISING OUT OF THIS CLAUSE
12.2.

 

12.3                                                   SUPPLIER WARRANTIES AND
SERVICE LIFE POLICIES

 

12.3.1                                          Seller’s Support

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

Before Delivery of the first Aircraft of each type, the Seller shall transfer
and assign to Buyer and provide the Buyer with copies of the warranties and
service life policies that the Seller has obtained pursuant to the Supplier
Product Support Agreements for each respective Aircraft type. [...***...]

 

12.3.3                                          Supplier’s Default

 

12.3.2.1                                 If any Supplier under any warranty
referred to in Clause 12.3.1 defaults in the performance of any material
obligation under such warranty with respect to a Supplier Part and the Buyer
submits reasonable evidence, within a reasonable time, that such default has
occurred, then Clause 12.1 of this Agreement shall apply to the extent it would
have applied had such Supplier Part been a Warranted Part, to the extent the
Seller can reasonably perform said Supplier’s obligations, except that the
Supplier’s warranty period indicated in the Supplier Product Support Agreements
shall apply.

 

12.3.2.2                                 If any Supplier under any Supplier
service life policy referred to in to Clause 12.3.1 defaults in the performance
of any material obligation under such service life policy, and (i) the Buyer has
used its  commercially reasonable efforts to enforce its rights under such
service life policy, and (ii) the Buyer submits within reasonable time to the
Seller reasonable evidence that such default has occurred, then Clause 12.2 of
this Agreement shall apply to the extent the same would have applied had such
component, equipment, accessory or part been listed in Exhibit C hereto, except
when, in the case of specific performance of a Supplier’s obligation under its
service life policy, the Seller cannot reasonably perform said Supplier
obligations.

 

12.3.2.3                                 At the Seller’s request, the Buyer
shall assign to the Seller, and the Seller shall be subrogated to, all of the
Buyer’s rights against the relevant Supplier with respect to, and arising by
reason of, such default and the Buyer shall provide commercially reasonable
assistance to enable the Seller to enforce the rights so assigned.

 

12.4                           INTERFACE COMMITMENT

 

12.4.1                                          Interface Problem

 

If the Buyer experiences any technical problem in the operation of an Aircraft
or its systems due to a malfunction, the cause of which, after due and
reasonable investigation, is not readily identifiable by the Buyer, but which
the Buyer reasonably believes to be attributable to the design characteristics
of one or more components (including, without limitation, Propulsion Systems) of
the Aircraft (an “Interface Problem”), the Seller shall, if requested by the
Buyer, and without additional charge to the Buyer,  promptly conduct or have
conducted an

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

investigation and analysis of such problem to determine, if possible, the cause
or causes of the problem and to recommend such corrective action as may be
feasible.  The Buyer shall furnish to the Seller all data and information in the
Buyer’s possession relevant to the Interface Problem and shall cooperate with
the Seller in the conduct of the Seller’s investigations and such tests as may
be required. At the conclusion of such investigation the Seller shall promptly
advise the Buyer in writing of the Seller’s opinion as to the cause or causes of
the Interface Problem and the Seller’s recommendations as to corrective action.

 

12.4.2                                          Seller’s Responsibility

 

If the Seller determines that the Interface Problem is primarily attributable to
the design of a Warranted Part, the Seller shall, if requested by the Buyer,
correct the design of such Warranted Part pursuant to the terms and conditions
of Clause 12.1.

 

12.4.3                                          Supplier’s Responsibility

 

                                                                                               
If the Seller determines that the Interface Problem is primarily attributable to
the design of any Supplier Part, the Seller shall at the Buyer’s request,
reasonably assist the Buyer in processing any warranty claim the Buyer may have
against the manufacturer of such Supplier Part.

 

12.4.4                                          Joint Responsibility

 

If the Seller determines that the Interface Problem is attributable partially to
the design of a Warranted Part and partially to the design of any Supplier Part,
the Seller shall, if requested by the Buyer, seek a solution to the Interface
Problem through cooperative efforts of the Seller and any Supplier involved. 
The Seller shall promptly advise the Buyer of any corrective action proposed by
the Seller and any such Supplier.  Such proposal and corrective action shall be
consistent with any then existing obligations of the Seller hereunder and of any
such Supplier to the Buyer.  Such corrective action, unless reasonably rejected
by the Buyer, shall constitute full satisfaction of any claim the Buyer may have
against either the Seller or any such Supplier with respect to such Interface
Problem.

 

12.4.5                                          General

 

12.4.5.1                                 All requests under this Clause 12.4
shall be directed both to the Seller and to the affected Suppliers.

 

12.4.5.2                                 Except as specifically set forth in
this Clause 12.4, this Clause 12.4 shall not be deemed to impose on the Seller
any obligations not expressly set forth elsewhere in this Agreement.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.4.5.4                                 All reports, recommendations, data and
other documents furnished by the Seller to the Buyer pursuant to this Clause
12.4 shall be deemed to be delivered under this Agreement and shall be subject
to the terms, covenants and conditions set forth in this Clause 12 and in Clause
22.9.

 

12.5                                                   EXCLUSIVITY OF WARRANTIES

 

THIS CLAUSE 12 SETS FORTH THE EXCLUSIVE WARRANTIES, EXCLUSIVE LIABILITIES AND
EXCLUSIVE OBLIGATIONS OF THE SELLER, AND THE EXCLUSIVE REMEDIES AVAILABLE TO THE
BUYER, WHETHER UNDER THIS AGREEMENT OR OTHERWISE, ARISING FROM ANY DEFECT OR
NONCONFORMITY OR PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT, EQUIPMENT,
ACCESSORY, PART, SOFTWARE, DATA OR SERVICE DELIVERED BY THE SELLER UNDER THIS
AGREEMENT.

 

THE BUYER RECOGNIZES THAT THE RIGHTS, WARRANTIES AND REMEDIES IN THIS CLAUSE 12
ARE ADEQUATE AND SUFFICIENT TO PROTECT THE BUYER FROM ANY DEFECT OR
NONCONFORMITY OR PROBLEM OF ANY KIND IN THE GOODS AND SERVICES SUPPLIED UNDER
THIS AGREEMENT.  THE BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER
WARRANTIES, OBLIGATIONS, GUARANTEES AND LIABILITIES OF THE SELLER AND ALL OTHER
RIGHTS, CLAIMS AND REMEDIES OF THE BUYER AGAINST THE SELLER, WHETHER EXPRESS OR
IMPLIED BY CONTRACT, TORT, OR STATUTORY LAW OR OTHERWISE, WITH RESPECT TO ANY
NONCONFORMITY OR DEFECT OR PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT,
EQUIPMENT, ACCESSORY, PART, SOFTWARE, DATA OR SERVICE DELIVERED BY THE SELLER
UNDER THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO:

 

(22)                                                    ANY IMPLIED WARRANTY OF
MERCHANTABILITY AND/OR FITNESS FOR ANY GENERAL OR PARTICULAR PURPOSE;

 

(23)                                                    ANY IMPLIED OR EXPRESS
WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF
TRADE;

 

(24)                                                    ANY RIGHT, CLAIM OR
REMEDY FOR BREACH OF CONTRACT;

 

(25)                                                    ANY RIGHT, CLAIM OR
REMEDY FOR TORT, UNDER ANY THEORY OF LIABILITY, HOWEVER ALLEGED, INCLUDING, BUT
NOT LIMITED TO, ACTIONS AND/OR CLAIMS FOR NEGLIGENCE,  IMPLIED WARRANTY, PRODUCT
LIABILITY, STRICT LIABILITY OR FAILURE TO WARN;

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(26)                                                    ANY RIGHT, CLAIM OR
REMEDY ARISING UNDER THE UNIFORM COMMERCIAL CODE OR ANY OTHER STATE OR FEDERAL
STATUTE;

 

(27)                                                    ANY RIGHT, CLAIM OR
REMEDY ARISING UNDER ANY REGULATIONS OR STANDARDS IMPOSED BY ANY INTERNATIONAL,
NATIONAL, STATE OR LOCAL STATUTE OR AGENCY;

 

(28)                                                    ANY RIGHT, CLAIM OR
REMEDY TO RECOVER OR BE COMPENSATED FOR:

 

(e)                                  LOSS OF USE OR REPLACEMENT OF ANY AIRCRAFT,
COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED UNDER THIS AGREEMENT;

 

(f)                                    LOSS OF, OR DAMAGE OF ANY KIND TO, ANY
AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED UNDER THIS AGREEMENT;

 

(g)                                 LOSS OF PROFITS AND/OR REVENUES;

 

(h)                                 ANY OTHER INCIDENTAL OR CONSEQUENTIAL
DAMAGE.

 

THE WARRANTIES AND SERVICE LIFE POLICY PROVIDED BY THIS AGREEMENT SHALL NOT BE
EXTENDED, ALTERED OR VARIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED BY THE SELLER
AND THE BUYER.  IN THE EVENT THAT ANY PROVISION OF THIS CLAUSE 12 SHOULD FOR ANY
REASON BE HELD UNLAWFUL, OR OTHERWISE UNENFORCEABLE, THE REMAINDER OF THIS
CLAUSE 12 SHALL REMAIN IN FULL FORCE AND EFFECT.

 

FOR THE PURPOSE OF THIS CLAUSE 12.5, “SELLER” SHALL BE UNDERSTOOD TO INCLUDE THE
SELLER, ITS AFFILIATES AND SUBCONTRACTORS.

 

12.6                        DUPLICATE REMEDIES

 

The remedies provided to the Buyer under Clause 12.1 and Clause 12.2 as to any
defect in respect of the Aircraft or any part thereof are independent but not
cumulative nor duplicative.  The Buyer shall be entitled to the remedy and/or
remedies under Clauses 12.1 and 12.2 that provide the maximum but not
duplicative benefit to it, as the Buyer may elect, pursuant to the terms and
conditions of this Clause 12 for any particular defect for which remedies are
provided under this Clause 12; provided, however, that the Buyer shall not be

 

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entitled to elect a remedy under both Clause 12.1 and Clause 12.2 for the same
defect unless such defects occur as separate incidents at separate times.

 

12.7                        INTENTIONALLY DELETED

 

12.8                        NEGOTIATED AGREEMENT

 

The Parties each acknowledge that:

 

(i)                                                                                    
this Agreement, including Clause 2 and this Clause 12, has been the subject of
discussion and negotiation and is fully understood  by the Buyer; and

 

(iii)                                                                              
the price of the Aircraft and the other mutual agreements of the Buyer set forth
in this Agreement were arrived at in consideration of, inter alia, the
provisions of this Clause 12, specifically including the Exclusivity of
Warranties set forth in Clause 12.5.

 

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

UNQUOTE

 

13.                                                                                
PATENT AND COPYRIGHT INDEMNITY

 

Clause 13 of the Agreement is cancelled and replaced by the following quoted
provisions:

 

QUOTE

 

13.1                                          INDEMNITY

 

13.1.1                                                                  Subject
to the provisions of Clause 13.2.3, the Seller shall indemnify the Buyer and its
officers, directors, agents and employees from and against any damages, costs
and expenses including reasonable legal costs (excluding damages, costs,
expenses, loss of profits and other liabilities in respect of or resulting from
loss of use of the Aircraft) in case of any infringement or claim of
infringement by the Airframe [...***...] of

 

(iv)                                                                             
any British, French, German, Spanish or U.S. patent; and

 

(v)                                                                                
any patent issued under the laws of any other country in which the Buyer may
lawfully operate the Aircraft, provided that from the time of design of such
Airframe or any part or software installed therein at Delivery and until
infringement claims are resolved, the country of the patent and the flag country
of the Aircraft are both parties to:

 

(3)                                              the Chicago Convention on
International Civil Aviation of December 7, 1944, and are each fully entitled to
all benefits of Article 27 thereof, or,

 

(4)                                              the International Convention
for the Protection of Industrial Property of March 20, 1883 (the “Paris
Convention”); and

 

(vi)                                                                             
in respect of computer software installed on the Aircraft, any copyright,
provided that the Seller’s obligation to indemnify shall be limited to
infringements in countries which, at the time of design, are members of The
Berne Union and recognize computer software as a “work” under the Berne
Convention.

 

13.1.2                                                                
Clause 13.1.1 shall not apply to

 

(v)                                                                               
Buyer Furnished Equipment;

 

(vi)                                                                            
the Propulsion Systems;

 

(vii)                                                                         
Supplier Parts; or

 

(viii)                                                                      
software not developed by the Seller.

 

13.1.3                                                                 If the
Buyer, due to circumstances contemplated in Clause 13.1.1, is prevented from
using the Aircraft (whether by a valid judgment of a court of competent

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

jurisdiction or by a settlement arrived at among the claimant, the Seller and
the Buyer), the Seller shall at its expense either

 

(i)                                                            procure as soon
as possible for the Buyer the right to use the affected Airframe, or Warranted
Part free of charge to the Buyer; or

 

(ii)                                                         replace the
infringing Warranted Part as soon as possible with a non-infringing substitute
otherwise complying with the requirements of this Agreement.

 

13.2                                                   ADMINISTRATION OF PATENT
AND COPYRIGHT INDEMNITY CLAIMS

 

13.2.1                                         If the Buyer receives a written
claim or a suit is threatened or begun against the Buyer for infringement of a
patent or copyright referred to in Clause 13.1, the Buyer shall

 

(i)                                                             forthwith notify
the Seller, giving particulars thereof;

 

(ii)                                                          furnish to the
Seller all data, papers and records within the Buyer’s control or possession
that are material to the resistance of or defense against any such charge or
suits for infringement covered by this Clause 13;

 

(iii)                                                       refrain from
admitting any liability or making any payment, or assuming any expenses,
damages, costs or royalties, or otherwise acting in a manner prejudicial to the
defense or denial of the suit or claim, it being agreed that nothing in this
Clause 13.2.1(iii) shall prevent the Buyer from paying the sums (i) that may be
required to obtain the release of the Aircraft, provided that payment is
accompanied by a denial of liability and is made without prejudice, or (ii) as
required by a final judgment entered against Buyer by a court of competent
jurisdiction from which no appeals can be or have been filed;

 

(iv)                                                      fully cooperate with,
and render all assistance to, the Seller as may be pertinent to the defense or
denial of the suit or claim; and

 

(v)                                                         act to mitigate
damages and/or to reduce the amount of royalties that may be payable, and act to
minimize costs and expenses.

 

13.2.3                                         The Seller shall be entitled
either in its own name or on behalf of the Buyer to conduct negotiations with
the party or parties alleging infringement and may assume and conduct the
defense or settlement of any suit or claim in the manner that, in the Seller’s
opinion, it deems proper.

 

13.2.3                                         The Seller’s liability hereunder
shall be conditioned on the substantial and timely compliance by the Buyer with
the terms of this Clause 13 and is in lieu of any other liability to the Buyer,
whether express or implied, which the Seller might incur at

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

law as a result of any infringement or claim of infringement of any patent or
copyright. [...***...]

 

THE INDEMNITY PROVIDED IN THIS CLAUSE 13 AND THE OBLIGATIONS AND LIABILITIES OF
THE SELLER UNDER THIS CLAUSE 13 ARE EXCLUSIVE AND IN SUBSTITUTION FOR, AND THE
BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER INDEMNITIES, WARRANTIES,
OBLIGATIONS, GUARANTEES AND LIABILITIES ON THE PART OF THE SELLER AND RIGHTS,
CLAIMS AND REMEDIES OF THE BUYER AGAINST THE SELLER, EXPRESS OR IMPLIED, ARISING
BY LAW OR OTHERWISE (INCLUDING WITHOUT LIMITATION ANY OBLIGATION, LIABILITY,
RIGHT, CLAIM OR REMEDY ARISING FROM OR WITH RESPECT TO LOSS OF USE OR REVENUE OR
CONSEQUENTIAL DAMAGES), WITH RESPECT TO ANY ACTUAL OR ALLEGED PATENT
INFRINGEMENT OR THE LIKE BY ANY AIRFRAME, PART OR SOFTWARE INSTALLED THEREIN AT
DELIVERY, OR THE USE OR SALE THEREOF, PROVIDED THAT, IN THE EVENT THAT ANY OF
THE AFORESAID PROVISIONS SHOULD FOR ANY REASON BE HELD UNLAWFUL OR OTHERWISE
INEFFECTIVE, THE REMAINDER OF THIS CLAUSE SHALL REMAIN IN FULL FORCE AND
EFFECT.  THIS INDEMNITY AGAINST PATENT AND COPYRIGHT INFRINGEMENTS SHALL NOT BE
EXTENDED, ALTERED OR VARIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED BY THE SELLER
AND THE BUYER.

 

UNQUOTE

 

14.                                                         TECHNICAL DATA AND
SOFTWARE SERVICES

 

Clause 14.5 of the Agreement is cancelled and replaced with the following quoted
provisions:

 

QUOTE

 

14.5                                                   REVISION SERVICE FOR
TECHNICAL DATA

 

Unless otherwise specifically stated, revision service for the A330-200 Aircraft
Technical Data shall be offered free of charge for[...***...] (the “A330-200
Revision Service Period”). Thereafter, revision service shall be provided in
accordance with the terms and conditions found in the Seller’s then current
Customer Services Catalog (the “CS Catalog”).

 

Unless otherwise specifically stated, revision service for the A350XWB-800
Aircraft Technical Data shall be offered free of charge for [...***...] (the
“A350XWB-800 Revision Service Period”). Thereafter, revision service shall be

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

provided in accordance with the terms and conditions found in the Seller’s then
current CS Catalog.

 

UNQUOTE

 

Clause 14.13.1 and 14.13.2 of the Agreement are cancelled and replaced with the
following quoted provisions:

 

QUOTE

 

14.13.1                                                           Performance
Engineer’s Program  or PEP

 

In addition to Technical Data, the Seller shall provide to the Buyer one copy of
the Performance Engineer’s Programs (“PEP”) under the General Conditions. Use of
the PEP shall be limited to one site license granted to the Buyer.  PEP is
intended for use on ground only and shall not be installed on an Aircraft. The
Seller, subject to appropriate confidentiality commitments, shall cooperate with
the Buyer’s third party performance data providers for the disclosure of data
needed for use of the PEP.

 

14.13.2                                                            The license
for use of PEP shall be granted free of charge [...***...].  At the expiration
of such period, the Buyer shall be entitled to continue to use the PEP but the
Buyer shall be charged for all revisions, in accordance with the terms and
conditions of the then-current CS Catalog.

 

UNQUOTE

 

Clause 14.17 of the Agreement is cancelled.

 

15.                                                                                
SELLER REPRESENTATIVES

 

                                                                                               
Clause 15 of the Agreement is supplemented with the following quoted provisions:

 

QUOTE

 

15.6                                                                          
Seller shall, if requested by Buyer and subject to applicable charges, if any,
provide technical advisory assistance and other engineering support services
(“Engineering Support Services”) for any Aircraft or SFE. Engineering Support
Services, provided from Toulouse, France or at a base designated by the Buyer as
appropriate, include but are not limited to:

 

(a)                                                                                 
If the Buyer experiences operational problems with an Aircraft, the Seller shall
analyze the information provided by the Buyer to determine the probable nature
and cause of the problem and to suggest possible solutions.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(b)                                                                                
If the Buyer is designing structural repairs and desires the Seller’s support,
the Seller shall analyze and comment on the Buyer’s engineering releases
relating to structural repairs not covered by the Seller’s structural repair
manual.

 

(c)                                                                                 
If the Buyer requires an Aircraft modification from the Seller’s upgrade
services department, the Seller shall analyze the request and, if possible,
propose a Service Bulletin designed to meet the needs of the Buyer.

 

UNQUOTE

 

16.                                                                                
TRAINING AND TRAINING AIDS

 

Clause 16.3.1 is cancelled and replaced with the following quoted provisions:

 

QUOTE

 

16.3.1                                                                  The
Seller shall provide the training at the Airbus Training Center in Miami,
Florida (the “Seller’s Training Center”), which shall be the principal location
for training provided to the Buyer and/or at an affiliated training center in
Blagnac, France. Seller shall use reasonable efforts to schedule Buyer’s
training at the Airbus Training Center in Miami. If the Seller opens a fully
owned training facility closer to the Buyer’s location, and provided such
facility is ready to provide training to the Buyer in accordance with the
Buyer’s requirements (including but not limited to FAA requirements), then such
training facility shall become the principal location for training provided to
the Buyer.

 

UNQUOTE

 

                                                                                               
Clause 16.4.3.2 is cancelled and replaced with the following quoted provisions:

 

QUOTE

 

16.4.3.2                                                         If such
notification is received by the Seller or ANACS less than sixty (60) but no more
than thirty (30) calendar days prior to such training, a cancellation fee
corresponding to [...***...] of such training shall be, as applicable, either
deducted from the training allowance set forth in Appendix A or invoiced at the
price corresponding to such training in the Seller’s then current Training
Course Catalog, unless the Seller, using commercially reasonable efforts, is
able to substitute another customer’s trainees for the Buyer’s originally
scheduled trainees.

 

UNQUOTE

                                                                                               
Clause 16.10.6 of the Agreement is cancelled, and Clause 16 is supplemented by
the following quoted provision:

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

QUOTE

 

16.11   Performance of Services by Affiliates of Seller

 

Wherever in this Agreement Seller has delegated to Affiliate of Seller the
provision of goods, services or other performance of Seller hereunder, Seller
hereby unconditionally guarantees the full, prompt and complete performance by
such Affiliate of Seller of the obligations of Seller delegated hereunder, and
agrees that if Buyer notifies Seller such Affiliate of Seller has failed to
perform such obligations of Seller hereunder, Seller shall promptly ensure that
Seller performs or causes such obligations to be performed.

 

UNQUOTE

 

                                                                                               
Clause 1.1 of Appendix A to Clause 16 to the Agreement is cancelled and replaced
by the following quoted provisions:

 

QUOTE

 

[...***...]

 

UNQUOTE

 

17.                                                                                
RESERVED

 

18.                                                                                
BUYER FURNISHED EQUIPMENT

 

                                                                                               
Clause 18 of the Agreement is supplemented by the following quoted provisions:

 

QUOTE

 

18.5.6                                                                  Subject
to applicable law, and the consent of the applicable BFE manufacturer, BFE not
installed in the Aircraft shall be returned to the Buyer in accordance with the
Buyer’s instructions and at the Buyer’s expense in as good condition as when
delivered by the Buyer to the Seller, reasonable wear and tear accepted.

 

[...***...]

 

UNQUOTE

 

19.                                                                                
RESERVED

 

20.                                                                                
ASSIGNMENTS AND TRANSFERS

 

Clause 20.1 of the Agreement is cancelled and replaced by the following quoted
provisions:

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

QUOTE

 

20.1                                                   ASSIGNMENTS BY BUYER

 

                                                Except as hereinafter provided,
the Buyer may not sell, assign or transfer its rights or obligations under this
Agreement to any person without the prior written consent of the Seller, such
consent not to be unreasonably withheld or delayed.

 

[...***...]

 

20.1.4                                                                 
Appointment of Agent – Warranty Claims

 

                                                If, following Delivery of an
Aircraft, Buyer appoints a qualified agent to act directly with the Seller for
the administration of claims relating to warranties, Seller shall deal with such
agent for that purpose, effective upon the Seller’s receipt of the agent’s
written agreement, in form and substance reasonably satisfactory to the Seller,
and provided that such appointment does not, in the Seller’s reasonable
judgment, materially adversely affect either the Seller’s rights hereunder, or
the Seller’s competitive interests.

 

20.1.5                                                                  No
Increase in Liability

 

                                                                                               
No action taken by either party relating to the resale or lease of an Aircraft
or the assignment of that party’s rights under this Agreement with respect to
such Aircraft shall subject the other party to any liability beyond that in this
Agreement or modify in any way the other party’s obligations under this
Agreement.

 

UNQUOTE

 

                                                                                               
Clause 20.4 of the Agreement is cancelled and replaced by the following quoted
provisions:

 

QUOTE

 

20.4                                                   TRANSFER OF RIGHTS AND
OBLIGATIONS UPON REORGANIZATION

 

                                                                                               
In the event that the Seller is subject to a corporate restructuring,
[...***...],  having as its object the transfer of, or succession by operation
of law in, all or a substantial part of its assets and liabilities, rights and
obligations, including those existing under this Agreement, to a person (the
“Successor”) that is an Affiliate of the Seller at the time of that
restructuring, for the purpose of the Successor carrying on the business carried
on by the Seller at the time of the restructuring, such restructuring shall be
completed without consent of the Buyer following notification by the Seller to
the Buyer in writing.  The Buyer recognizes that succession of the Successor to
the Agreement by operation of law that is valid under the law pursuant to which
that succession occurs shall be binding upon the Buyer.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

UNQUOTE

 

21.                                                                                
TERMINATION

 

                                                                                               
Clause 21 of the Agreement is cancelled and replaced by the following quoted
provisions:

 

QUOTE

 

21.1                                                                          
Termination Events

 

21.1.1                                                                 
[...***...] Termination Events

 

                                                                                               
Each of the following shall constitute a [...***...] Termination Event”

 

(1)                                                                                 
[...***...] commences in any jurisdiction any case, proceeding or other action
with respect to a Buyer Party or its properties relating to bankruptcy,
insolvency, reorganization, winding-up, liquidation, dissolution or other relief
from, or with respect to, or readjustment of, its debts or obligations.

 

(2)                                                                                 
An action is commenced in any jurisdiction seeking the appointment of a
receiver, trustee, custodian or other similar official [...***...] or for all or
any substantial part of its respective assets, and such action remains unstayed,
undismissed or undischarged for sixty (60) days, or [...***...] makes a general
assignment for the benefit of its creditors.

 

(3)                                                                                 
An action is commenced in any jurisdiction against a [...***...] seeking
issuance of a warrant of attachment, execution, distraint or similar process
against all or any substantial part of their respective assets, and such action
remains unstayed, undismissed or undischarged for sixty (60) days.

 

(4)                                                                                 
[...***...] becomes the object, in any jurisdiction, of a case, proceeding or
action similar or analogous to any of the events mentioned in Clause 21.1. (1),
(2) or (3).

 

(5)                                                                                 
[...***...] is generally not able, or is expected to be unable to, or shall
admit in writing its inability to, pay its debts as they become due.

 

(6)                                                                                 
[...***...] commences negotiations with significant creditors, existing or
potential, either with the intention of restructuring all or a substantial part
of all of its outstanding obligations or in preparation for a bankruptcy filing
under the U.S. Bankruptcy Code.

 

(7)                                                                                 
A [...***...] fails to make payment of (i) any payments required to be made
under this Agreement or any other agreements between a [...***...] and the
Seller or any of its Affiliates when such payment is due, provided that the

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

aggregate of all payments due by one or more Buyer Parties to the Seller is
greater than [...***...] (ii) any Predelivery Payment required to be made under
this Agreement when such payment is due, (iii) payment of all or part of the
Final Contract Price of any Aircraft required to be made under this Agreement,
or (iv) any payment under any financing agreement when due between a Buyer Party
and the Seller or its Affiliates.

 

(8)                                                                                 
The Buyer terminates (except as otherwise permitted) cancels or repudiates this
Agreement in whole or in part.

 

(9)                                                                                 
The Buyer defaults in its obligation to take delivery of an Aircraft as provided
in Clause 9.2.

 

(10)                                                                           
A [...***...] defaults in the observance or performance of any other material
covenant, undertaking or obligation contained in this Agreement or any other
material agreement between a [...***...], on the one hand, and the Seller or its
Affiliates on the other hand, provided (i) such covenant, undertaking or
obligation is not otherwise addressed in this clause 21 and (ii) if such breach
or default is capable of being cured, such breach or default is not cured within
any specified cure period or, if no cure period is specified, within ten
(10) Business Days.

 

(11)                                                                           
ANY OTHER EVENT THAT THE PARTIES AGREE IN WRITING CONSTITUTES A BUYER
TERMINATION EVENT.

 

[...***...]

 

21.2                                                   REMEDIES IN EVENT OF
TERMINATION

 

If a [...***...] Termination Event occurs, the Buyer shall be in material breach
of this Agreement, and the Seller shall have the right to resort to any remedy
under applicable law, and may, without limitation, by written notice to the
Buyer, immediately:

 

(3)                                                                                 
(I) SUSPEND ITS PERFORMANCE UNDER THIS AGREEMENT WITH RESPECT TO ANY OR ALL
AIRCRAFT, (II) WITHOUT PREJUDICE TO SELLER’S OPTION TO EXERCISE ITS RIGHTS UNDER
CLAUSE 5.8.2, RESCHEDULE THE SCHEDULED DELIVERY MONTH OF ANY OR ALL AIRCRAFT
REMAINING TO BE DELIVERED UNDER THIS AGREEMENT, (III) RESCHEDULE THE DATE FOR
PERFORMANCE UNDER THIS AGREEMENT WITH RESPECT TO ANY OR ALL EQUIPMENT, SERVICES,
DATA AND OTHER ITEMS, AND/OR (IV) CANCEL OR TERMINATE THIS AGREEMENT (A
“TERMINATION”) WITH RESPECT TO ANY OR ALL AIRCRAFT, AND/OR EQUIPMENT, SERVICES,
DATA AND/OR OTHER ITEMS RELATED THERETO;  AND

 

(4)                                                                                 
CLAIM AND RECEIVE PAYMENT FROM THE BUYER OF A SUM EQUAL TO SELLER’S ACTUAL
DAMAGES INCURRED BY SELLER’S EXERCISE OF THE REMEDIES SET FORTH IN CLAUSE 21.2
(1)

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

(I), (II) OR (III) AND, IN THE CASE OF A TERMINATION UNDER CLAUSE 21.2 (1)
(IV) ONLY, THE SELLER WILL, IN LIEU OF ACTUAL DAMAGES, BE ENTITLED TO RECEIVE
PAYMENT FROM THE BUYER, AS LIQUIDATED DAMAGES AND NOT AS A PENALTY, AN AMOUNT
EQUAL TO, FOR EACH AFFECTED AIRCRAFT (AS DEFINED BELOW), THE SUM OF:

 

[...***...]

 

(4)                                                                                 
THE PARTIES TO THIS AGREEMENT ARE COMMERCIALLY SOPHISTICATED PARTIES REPRESENTED
BY COMPETENT COUNSEL. THE PARTIES EXPRESSLY AGREE AND DECLARE THAT DAMAGES FOR
MATERIAL BREACH OF THIS AGREEMENT BY THE BUYER RESULTING IN A TERMINATION OF
THIS AGREEMENT AS TO ANY OR ALL AIRCRAFT HAVE BEEN LIQUIDATED AT AMOUNTS THAT
ARE REASONABLE IN LIGHT OF THE ANTICIPATED OR ACTUAL HARM CAUSED BY THE BUYER’S
BREACH, THE DIFFICULTIES OF PROOF OF LOSS AND THE NONFEASIBILITY OF OTHERWISE
OBTAINING AN ADEQUATE REMEDY. IT IS UNDERSTOOD AND AGREED BY THE PARTIES THAT
THE AMOUNT OF LIQUIDATED DAMAGES SET FORTH HEREIN IS THE TOTAL AMOUNT OF
MONETARY DAMAGES, NO MORE AND NO LESS, TO WHICH THE SELLER SHALL BE ENTITLED FOR
AND WITH RESPECT TO ANY AIRCRAFT AS RECOVERY FOR MATERIAL BREACH OF THIS
AGREEMENT BY BUYER RESULTING IN A TERMINATION BY THE SELLER OF THIS AGREEMENT AS
TO SUCH AIRCRAFT.

 

21.3                                                   DEFINITIONS

 

                                                                                               
FOR PURPOSES OF THIS CLAUSE 21, THE TERMS “AFFECTED AIRCRAFT”, “APPLICABLE DATE
AND “ESCALATED PRICE” ARE DEFINED AS FOLLOWS:

 

(I)                                                                            
“AFFECTED AIRCRAFT” — ANY OR ALL AIRCRAFT WITH RESPECT TO WHICH THE SELLER HAS
CANCELLED OR TERMINATED THIS AGREEMENT PURSUANT TO CLAUSE 21. 2 (1) (IV),

 

(II)                                                                         
“APPLICABLE DATE” — FOR ANY AFFECTED AIRCRAFT THE DATE OF THE BUYER TERMINATION
EVENT SPECIFIED IN THE SELLER’S NOTICE AND DEMAND FOR PAYMENT OF LIQUIDATED
DAMAGES DELIVERED UNDER CLAUSE 21.2(3).

 

(III)                                                                      
“ESCALATED PRICE” - THE SUM OF (I) THE BASE PRICE OF THE AIRFRAME, (II) THE BASE
PRICE OF SCNS AND MSCNS ENTERED INTO AFTER THE DATE OF THIS AGREEMENT, AND
(III) THE PROPULSION SYSTEMS REFERENCE PRICE, ALL AS ESCALATED TO THE APPLICABLE
DATE IN ACCORDANCE WITH THE PROVISIONS OF CLAUSE 4.

 

21.4.                                                NOTICE OF TERMINATION EVENT

 

                                                                                     
Promptly upon becoming aware of the occurrence of a Buyer Termination Event by
the Buyer, the Buyer shall notify the Seller of such occurrence in writing,
provided, that any failure by the Buyer to notify the Seller shall not prejudice
the Seller’s rights or remedies hereunder. Promptly upon becoming aware of the
occurrence of a Seller Termination Event by the Seller, the Seller shall notify
the

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

BUYER OF SUCH OCCURRENCE IN WRITING, PROVIDED, THAT ANY FAILURE BY THE SELLER TO
NOTIFY THE BUYER SHALL NOT PREJUDICE THE BUYER’S RIGHTS OR REMEDIES HEREUNDER.

 

21.5                                                   INFORMATION COVENANTS

 

                                                                                               
The Buyer hereby covenants and agrees that, from the date of this Agreement
until no further Aircraft are to be delivered hereunder, the Buyer shall furnish
or cause to be furnished to the Seller the following; provided that Buyer shall
not be required to furnish or cause to be furnished to the Seller any documents
that are  publicly available without charge:

 

(a)                                                                                 
Annual Financial Statements.  As soon as available and in any event no later
than the date that the Buyer furnishes such annual statements to the Securities
and Exchange Commission or successor thereto (the “SEC”) (i) a copy of the SEC
Form 10-K filed by Holdings containing consolidated information relating to the
Buyer with the SEC for such fiscal year, or, if no such Form 10-K was filed by
Holdings for such a fiscal year, the consolidated balance sheet of Holdings and
its Subsidiaries (including the Buyer), as at the end of such fiscal year and
the related consolidated statements of operations, of common stockholders’
equity (deficit) (in the case of Holdings and its Subsidiaries) and of cash
flows for such fiscal year, setting forth comparative consolidated figures as of
the end of and for the preceding fiscal year, and examined by any firm of
independent public accountants of recognized standing selected by Holdings,
whose opinion shall not be qualified as to the scope of audit or as to the
status of Holdings as a going concern, and (ii) a certificate of such accounting
firm stating that  its  audit of the business of the Holdings and its
Subsidiaries (including the Buyer) was conducted in accordance with generally
accepted auditing standards.

 

(b)                                                                                
Quarterly Financial Statements.  As soon as available and in any event no later
than the date that Holdings furnishes such quarterly statements to the SEC or
successor thereto, a copy of the SEC Form 10-Q filed by Holdings with the SEC
for such quarterly period, or, if no such Form 10-Q was filed by Holdings with
respect to any such quarterly period, the consolidated balance sheet of Holdings
and its Subsidiaries (including the Buyer), as at the end of such quarterly
period and the related consolidated statements of operations for such quarterly
period and for the  elapsed portion of the fiscal year ended with the last day
of such quarterly period and in each case setting forth comparative consolidated
figures as of the end of and for the related periods in the prior fiscal year,
all of which shall be certified by an Authorized Officer of Holdings, subject to
changes resulting from audit and normal year-end audit adjustments.

 

(c)                                                                                 
Debt Rescheduling.  (i) Promptly upon the Buyer commencing negotiations with one
or more of its significant creditors with a view to general readjustment or
rescheduling of all or any material part of its indebtedness under circumstances
in

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

which a reasonable business person, in the exercise of prudent business
judgment, would conclude that the Buyer would otherwise not be able to pay such
indebtedness as it falls due, notice of commencement of such negotiations, and
(ii) thereafter timely advice of the progress of such negotiations until such
negotiations are terminated or completed.

 

(d)                                                                                
Acceleration of other indebtedness.  Immediately upon knowledge by the Buyer
that the holder of any bond, debenture, promissory note or any similar evidence
of indebtedness of a Buyer Party thereof (“Other Indebtedness”) has demanded
prepayment, given notice or exercised its right to a remedy having the effect of
acceleration with respect to a claimed event of default under any Other
Indebtedness, where the impact of the acceleration is likely to have a material
adverse effect on the Buyer’s ability to perform its obligations under or in
connection with the transactions contemplated by this Agreement, notice of the
demand made, notice given or action taken by such holder and the nature and
status of the claimed event of default and what the action the Buyer is taking
with respect thereto.

 

(e)                                                                                 
Other Information.  Promptly upon transmission thereof, copies of any filings
and registrations with, and reports to, the SEC by Holdings or any of its
Subsidiaries (including the Buyer), and, with reasonable promptness, such other
information or documents (financial or otherwise) as the Seller may reasonably
request from time to time.

 

For the purposes of this Clause 21, (x) an “Authorized Officer” of the Buyer
shall mean the Chief Executive Officer, the Chief Financial Officer or any Vice
President and above who reports directly or indirectly to the Chief Financial
Officer and (y) “Subsidiaries” shall mean, as of any date of determination,
those companies owned by the Buyer whose financial results the Buyer is required
to include in its statements of consolidated operations and consolidated balance
sheets.

 

[...***...]

 

UNQUOTE

 

22.                                                                                
RESERVED

 

23.                                                                             
ASSIGNMENT

 

                                                                                            
This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, not to be unreasonably withheld or delayed, or as may otherwise
be permitted under Clause 20.2 of the Agreement, and any attempted assignment or

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

transfer in contravention of the provisions of this Paragraph will be void and
of no force or effect.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

Hawaiian Airlines, Inc.

 

By:

 

 

 

Its:

 

 

 

and

 

By:

 

 

 

 

Its:

 

 

 

 

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

***   Confidential Treatment Requested

 

LA4-44

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

 

*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 5

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement. The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 5 (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms “herein,” “hereof” and
“hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

1.             ESCALATION

 

[...***...]

 

2.             ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, not to be unreasonably withheld or delayed, except as may
otherwise be permitted under Clause 20.2 of the Agreement, and any attempted
assignment or transfer in contravention of the provisions of this Paragraph 2
will be void and of no force or effect.

 

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

***   Confidential Treatment Requested

 

LA5-1

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

Hawaiian Airlines, Inc.

 

By:

 

 

 

Its:

 

 

 

and

 

By:

 

 

 

 

Its:

 

 

 

 

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

***   Confidential Treatment Requested

 

LA5-2

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

 

*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 6

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re: [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement. The Buyer and the Seller have also
entered into a finance letter agreement dated as of even date herewith (the
“Financing Letter Agreement”). The Buyer and the Seller have agreed to set forth
in this Letter Agreement No. 6 (the “Letter Agreement”) certain additional terms
and conditions regarding the sale of the Aircraft. Capitalized terms used herein
and not otherwise defined in this Letter Agreement will have the meanings
assigned thereto in the Agreement. The terms “herein,” “hereof” and “hereunder”
and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

[...***...]

 

2.             ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, and any attempted assignment or transfer in contravention of the
provisions of this Paragraph will be void and of no force or effect.

 

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

***   Confidential Treatment Requested

 

LA6-1

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

Hawaiian Airlines, Inc.

 

By:

 

 

 

Its:

 

 

 

and

 

By:

 

 

 

 

Its:

 

 

 

 

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

***   Confidential Treatment Requested

 

LA6-2

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

 

*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 7

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Dear Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement. The Buyer and the Seller have agreed to
set forth in this Letter Agreement No.7  (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms “herein,” “hereof” and
“hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

[...***...]

 

5.             ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder
shall not be assigned or transferred in any manner without the prior written
consent of the Seller, not to be unreasonably withheld or delayed, or as may
otherwise be permitted under Clause 20.2 of the Agreement, and any attempted
assignment or transfer in contravention of the provisions of this Paragraph
shall be void and of no force or effect.

 

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

***   Confidential Treatment Requested

 

LA7-1

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

Hawaiian Airlines, Inc.

 

By:

 

 

 

Its:

 

 

 

and

 

By:

 

 

 

 

Its:

 

 

 

 

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

***   Confidential Treatment Requested

 

LA7-2

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

 

*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 8

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement. The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 8  (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms “herein,” “hereof” and
“hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

[...***...]

 

6.             ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, not to be unreasonably withheld or delayed, or as may otherwise
be permitted under Clause 20.2 of the Agreement, and any attempted assignment or
transfer in contravention of the provisions of this Paragraph will be void and
of no force or effect.

 

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

***   Confidential Treatment Requested

 

LA8-1

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

Hawaiian Airlines, Inc.

 

By:

 

 

 

Its:

 

 

 

and

 

By:

 

 

 

 

Its:

 

 

 

 

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

***   Confidential Treatment Requested

 

LA8-2

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

 

*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 9

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement.  The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 9  (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft.  Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement.  The terms “herein,” “hereof”
and “hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

1.             AIRCRAFT CONFIGURATION

 

The guarantees defined below (the “Guarantees”) are applicable to the A330-200
Aircraft as described in the Standard Specification G.000.02000 Issue 4.3 dated
13th July 2006 as amended by a Specification Change Notice (“SCN”) for the
increase in Design Weights defined in paragraph 1.1 below, and fitted with Rolls
Royce Trent 772B Enhanced Performance (71,100 lbs) engines without taking into
account any further changes thereto pursuant to the Agreement, and hereinafter
called the Aircraft.

 

1.1           Design Weights:

 

Maximum Take-Off Weight

 

[***]

Maximum Landing Weight

 

[***]

Maximum Zero Fuel Weight

 

[***]

 

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

***   Confidential Treatment Requested

 

LA9-1

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

1.2                                 Notwithstanding the foregoing the Seller
reserves the right to increase the Design Weights above in order to satisfy the
Guarantees.

 

2                                          GUARANTEED PERFORMANCE

 

2.1           Take-off

 

2.1.1        FAR take-off field length at an Aircraft gross weight of 513,680 lb
at the start of ground run at sea level pressure altitude at ISA+15°C shall be
not more than a guaranteed value of [...***...].

 

2.1.2        When operated under the following conditions (representative of HNL
runway 08L):

 

Pressure altitude

 

: 12 ft

Ambient temperature

 

: 29ºC

Take-off run available (TORA)

 

: 12,300 ft

Take-off distance available (TODA)

 

: 12,300 ft

Accelerate-stop distance available (ASDA): 12,300 ft

 

 

Line-up allowance on TORA / TODA/ ASDA

 

: 106 ft / 106 ft / 182 ft

Slope

 

: 0.02% (downhill)

Wind

 

: Zero

Runway condition

 

: Dry

Obstacles (height /distance from beginning of TOR)

 

: 10 ft / 13,070 ft

 

 

  23 ft / 13,800 ft

 

 

  92 ft / 17,257 ft

 

the maximum permissible weight at the start of ground run shall be not less than
a guaranteed value of [...***...].

 

2.1.3        When operated under the following conditions (representative of BOS
runway 15R):

 

Pressure altitude

 

: 19 ft

Ambient temperature

 

: 28ºC

Take-off run available (TORA)

 

: 10,085 ft

Take-off distance available (TODA)

 

: 10,085 ft

Accelerate-stop distance available (ASDA): 10,085 ft

 

 

Line-up allowance on TORA / TODA/ ASDA

 

: 106 ft / 106 ft / 182 ft

Slope

 

: 0.04% (downhill)

Wind

 

: Zero

Runway condition

 

: Dry

Obstacles (height /distance from beginning of TOR)

 

: - 2 ft / 10,128 ft

 

 

- 3 ft / 10,272 ft

 

 

4 ft / 11,066 ft

 

the maximum permissible weight at the start of ground run shall be not less than
a guaranteed value of [...***...].

 

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

***   Confidential Treatment Requested

 

LA9-2

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

2.1.4        When operated under the following conditions (representative of OGG
runway 02):

 

Pressure altitude

 

: 54 ft

Ambient temperature

 

: 28ºC

Take-off run available (TORA)

 

: 7,001 ft

Take-off distance available (TODA)

 

: 7,001 ft

Accelerate-stop distance available (ASDA)

 

: 7,001 ft

Line-up allowance on TORA / TODA/ ASDA

 

: 75.5 ft / 75.5 ft / 157.5 ft

Slope

 

: -0.60% (uphill)

Wind

 

: Zero

Runway condition

 

: Dry

Obstacles (height /distance from beginning of TOR)

 

: -29 ft / 7,339 ft

 

the maximum permissible weight at the start of ground run shall be not less than
a guaranteed value of [...***...].

 

2.1.5        When operated under the following conditions (representative of SAN
runway 27):

 

Pressure altitude

 

: 16 ft

Ambient temperature

 

: 24ºC

Take-off run available (TORA)

 

: 9,400 ft

Take-off distance available (TODA)

 

: 9,400 ft

Accelerate-stop distance available (ASDA):

 

: 7,001 ft

Line-up allowance on TORA / TODA/ ASDA

 

: 75.5 ft / 75.5 ft / 157.5 ft

Slope

 

: -0.02% (uphill)

Wind

 

: Zero

Runway condition

 

: Dry

Obstacles (height /distance from beginning of TOR)

 

12 ft / 9,688 ft

 

 

37 ft / 10,033 ft

 

 

40 ft / 10,177 ft

 

 

46 ft / 10,886 ft

 

 

91 ft / 11,995 ft

 

 

104 ft / 12,720 ft

 

 

161 ft / 14,173 ft

 

 

186 ft / 14,656 ft

 

 

211 ft / 15,098 ft

 

 

217 ft / 15,358 ft

 

 

235 ft / 15,850 ft

 

the maximum permissible weight at the start of ground run shall be not less than
a guaranteed value of [...***...].

 

2.1.6        When operated under the following conditions (representative of DEN
runway 34L):

 

Pressure altitude

 

: 5,324 ft

Ambient temperature

 

: 21ºC

 

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

***   Confidential Treatment Requested

 

LA9-3

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

Take-off run available (TORA)

 

: 16,001 ft

Take-off distance available (TODA)

 

: 16,001 ft

Accelerate-stop distance available (ASDA)

 

: 16,001 ft

Line-up allowance on TORA / TODA/ ASDA

 

: 75.5 ft / 75.5 ft / 157.5 ft

Slope

 

: -0.03% (uphill)

Wind

 

: Zero

Runway condition

 

: Dry

Obstacles (height /distance from beginning of TOR): none

 

 

 

the maximum permissible weight at the start of ground run shall be not less than
a guaranteed value of [...***...].

 

2.2           Second Segment Climb

 

The Aircraft shall meet FAR regulations for one engine inoperative climb after
take-off, undercarriage retracted, at a weight corresponding to the stated
weight at the start of ground run at the altitude and temperature and in the
configuration of flap angle and safety speed required to comply with the
performances guaranteed in paragraph 2.1.

 

2.3           Landing Field Length

 

FAR certified landing field length at an Aircraft gross weight of 401,240 lb at
sea level pressure altitude shall be not more than a guaranteed value of:

 

[...***...]

 

2.4           Cruise Speed

 

Level flight speed at an Aircraft gross weight of 400,000 lb at a pressure
altitude of 33,000 feet in ISA conditions using not more than maximum cruise
thrust shall be not less than a guaranteed True Mach number of [...***...].

 

2.5           Range

 

Range starting at an initial cruise weight of 400,000 lb and consuming 40,000 lb
of fuel during cruise while flying at a pressure altitude of 37,000 ft in ISA
conditions at Long Range Cruise Mach number using thrust not exceeding maximum
cruise thrust shall be not less than a guaranteed value of [...***...].

 

2.6           En-route One Engine Inoperative

 

                                                The Aircraft will meet FAR
regulations minimum en-route climb with one engine inoperative and the other
operating at the maximum continuous thrust with anti-icing off

 

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

***   Confidential Treatment Requested

 

LA9-4

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

at an Aircraft gross weight of 480,000 lb in the cruise configuration in ISA
conditions at a guaranteed pressure altitude of not less than [...***...]. This
represents a start of drift down from a pressure altitude of 35,000 ft at an
Aircraft gross weight of 500,000 lb.

 

3              MISSION PAYLOAD GUARANTEES

 

3.1           Mission HNL-LAX

 

The Aircraft shall be capable of carrying a guaranteed payload [...***...] over
a still air stage distance of 2,241 nautical miles (assumed representative of
the mission HNL to LAX with 5 knots tailwind) under the conditions defined
below.

 

The departure airport conditions are as defined in Paragraph 2.1.2 above.

The destination airport conditions are such as to allow the required [...***...]
Pressure altitude is 126 ft.

 

[...***...]

 

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

***   Confidential Treatment Requested

 

LA9-5

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

[...***...]

 

3.2           Mission BOS-HNL

 

The Aircraft shall be capable of carrying a guaranteed payload [...***...] over
a still air stage distance of 5,252 nautical miles (assumed representative of
the mission BOS to HNL with 63 knots headwind) under the conditions defined
below.

 

The departure airport conditions are as defined in Paragraph 2.1.3 above.

The destination airport conditions are such as to allow the required landing
weight to be used without restriction. Pressure altitude is 13 ft.

 

[...***...]

 

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

***   Confidential Treatment Requested

 

LA9-6

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

3.3           Mission HNL-PVG

 

The Aircraft shall be capable of carrying a guaranteed payload [...***...] over
a still air stage distance of 5,953 nautical miles (assumed representative of
the mission HNL to PVG with 104 knots headwinds) under the conditions defined
below.

 

                                                The departure airport conditions
are as defined in Paragraph 2.1.2 above.

The destination airport conditions are such as to allow the required landing
weight to be used without restriction. Pressure altitude is 10 ft.

 

[...***...]

 

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

***   Confidential Treatment Requested

 

LA9-7

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

3.4           The mission payload guarantees defined in the paragraphs 3.1 to
3.3 inclusive above are based on a fixed estimated Operating Weight Empty of
[...***...], which is defined as the sum of estimated Manufacturer’s Weight
Empty as per the Standard Specification plus the Customer Changes and Operator’s
Item as estimated at the time of signature of the Agreement. The details of
Customer Changes and Operator’s Item are provided for information in Appendix A.

 

4              MISSION FUEL BURN GUARANTEES

 

4.1           Mission HNL-LAX

 

In carrying a fixed payload of [...***...] over a still air stage distance of
2,241 nautical miles (assumed representative of HNL to LAX with 5 knots
tailwind) when operated under the conditions defined in paragraph 3.1 above the
block fuel burnt shall be not more than a guaranteed value of [...***...].

 

4.2           Mission BOS-HNL

 

In carrying a fixed payload of [...***...] over a still air stage distance of
5,252 nautical miles (assumed representative of BOS to HNL with 63 knots
headwind) when operated under the conditions defined in paragraph 3.2 above the
block fuel burnt shall be not more than a guaranteed value of [...***...].

 

4.3           Mission HNL-PVG

 

In carrying a fixed payload of [...***...] over a still air stage distance of
5,953 nautical miles (assumed representative of HNL to PVG with 104 knots head
wind) when operated under the conditions defined in paragraph 3.3 above the
block fuel burnt shall be not more than a guaranteed value of [...***...].

 

4.4           The mission fuel burn guarantees defined in the paragraphs 4.1 to
4.3 inclusive above are based on a fixed estimated Operating Weight Empty of
[...***...], which is defined as the

 

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

***   Confidential Treatment Requested

 

LA9-8

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

sum of estimated Manufacturer’s Weight Empty as per the Standard Specification
plus the Customer Changes and Operator’s Item as estimated at the time of
signature of the Agreement. The details of Customer Changes and Operator’s Item
are provided for information in Appendix A.

 

5              [...***...]

 

6              NOISE

 

6.1           Acoustic certification levels

 

The A330-243 powered by RR TRENT 772B Enhanced Performance engines at a MTOW of
233,000 kg and a MLW of 182,000 kg shall be certified [...***...]

 

6.2           Interior Noise during flight

 

6.2.1        Cockpit

 

At a pressure altitude of 35000 ft and a true Mach number of 0.82 in straight
and level flight in still air under ISA conditions, the guaranteed A-weighted
Sound Pressure Level (SPL) and the Speech Interference Level (SIL) shall be as
follows:

 

[...***...]

 

Noise levels shall be measured at the Captain’s and First Officer’s seat
position at head level with normal cockpit air conditioning and ventilation in
operation.

 

6.2.2        Cabin

At a pressure altitude of 35000 ft and a true Mach number of 0.82 in straight
and level flight in still air under ISA conditions, the guaranteed A-weighted
Sound Pressure Level (SPL) and the Speech Interference Level (SIL) shall be as
follows:

 

[...***...]

 

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

***   Confidential Treatment Requested

 

LA9-9

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

6.3           APU Noise

 

[...***...]

 

7.             ENGINE EMISSIONS (for information only – not a guarantee)

 

The Engine Manufacturer being directly providing the Buyer with an aircraft
engine emissions guarantee, the following data is provided for information only
(consistent with data displayed in the RR TRENT 772B ICAO datasheet).

 

The RR TRENT 772B engines meet the emission levels for Smoke as defined in ICAO
Annex 16, Volume II ‘Aircraft Engine Emissions’, Second Edition effective 11th
November 1993, section 2.2.2 [...***...].

 

The RR TRENT 772B engines meet the emission levels for Unburned Hydrocarbons
(HC), Carbon Monoxide (CO) as defined in ICAO Annex 16, Volume II ‘Aircraft
Engine Emissions’, Second Edition effective 11th November 1993, section 2.3.2
[...***...] for Unburned Hydrocarbons (HC) and a [...***...] for Carbon Monoxide
(CO).

 

The RR TRENT 772B engines meet the emission levels for Oxides of Nitrogen (NOx)
as specified in the ICAO Annex 16, Volume II ‘Aircraft Engine Emissions’, Second
Edition, Amendment 5, applicable 24 November 2005, Chapter 2.3.2d (CAEP/6)
[...***...].

 

8              GUARANTEE CONDITIONS

 

8.1           The guarantees are applicable at Delivery of the Aircraft.

 

8.2           The performance certification requirements for the Aircraft,
except where otherwise stated, will be as stated in Section 02 of the Standard
Specification.

 

[...***...]

 

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

***   Confidential Treatment Requested

 

LA9-10

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

9              GUARANTEE COMPLIANCE

 

9.1           Compliance with the Guarantees shall be demonstrated using
operating procedures and limitations in accordance with those defined by the
certifying Airworthiness Authority and by the Seller unless otherwise stated.

 

9.2           Compliance with the take-off, second segment and landing elements
of the Guarantees will be demonstrated with reference to the approved Flight
Manual.

 

9.3           Compliance with those parts of the Guarantees defined in
paragraphs 3 and 4 above not covered by the requirements of the certifying
Airworthiness Authority will be demonstrated by calculation based on data
obtained during fully instrumented flight tests conducted on one (or more, at
the Seller’s discretion) A330-200 aircraft of the same airframe/engine model
combination as those Aircraft purchased by the Buyer and incorporated in the
In-Flight Performance Program and data bases (“the IFP”) appropriate to the
Aircraft and valid at time of Delivery of the Aircraft.

Compliance demonstration for the mission guarantees defined in paragraphs 3.1 to
3.3 and paragraphs 4.1 to 4.3 shall be based on the Operating Weight Empty
specified in paragraph 3.4 and 4.4

 

9.4           [...***...]

 

9.5           Data derived from flight tests will be adjusted as required using
conventional methods of correction, interpolation or extrapolation in accordance
with established aeronautical practices to show compliance with the Guarantees.

 

9.6           The approved Aircraft flight manual shall be used to demonstrate
compliance with the guarantees of certification noise levels.

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

9.7           Compliance with the APU noise and interior noise guarantees shall
be demonstrated with reference to noise surveys conducted on one (or more)
aircraft at the seller’s discretion of an acoustically equivalent standard to
those Aircraft.

 

9.8           Noise measurements data relative to the interior of the Aircraft
shall be conducted in accordance with the test procedures described in section 5
 of International Standard ISO 5129 “Acoustics – Measurement of sound pressure
level in the interior of aircraft during flight”.

 

9.9           The Seller undertakes to furnish the Buyer with a report or
reports demonstrating compliance with the Guarantees prior to Delivery of each
of the Buyer’s A330-200 Aircraft. The Seller further undertakes to furnish the
Buyer with a cruise test report, which provides the cruise specific range
measurements made during the pre-delivery flights of each aircraft.

 

10            ADJUSTMENT OF GUARANTEES

 

10.1         In the event of any change to any law, governmental regulation or
requirement or interpretation thereof (the “Rule Change”) by any governmental
agency made subsequent to the date of the Agreement and such Rule Change affects
the Aircraft configuration or performance or both required to obtain
certification the Guarantees shall be appropriately modified to reflect the
effect of any such change.

 

10.2         The Guarantees apply to the Aircraft as described in the paragraph
1 above and may be adjusted in the event of:

a)             Any further configuration change which is the subject of a SCN

b)            Variation in actual weights of items defined in
Section 13-10.02.02 of the Standard Specification

              

11.          EXCLUSIVE GUARANTEES

 

The Guarantees are exclusive and are provided in lieu of any and all other
performance and weight guarantees of any nature which may be stated, referenced
or incorporated in the Standard Specification or any other document.

 

[...***...]

 

13.           ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, not to be unreasonably withheld or delayed, or as may otherwise
be permitted under Clause 20.2 of the Agreement, and any attempted assignment or
transfer in contravention of the provisions of this Paragraph will be void and
of no force or effect.

 

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LA9-12

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

14.           NEGOTIATED AGREEMENT

 

THE BUYER AND THE SELLER AGREE THAT THIS LETTER AGREEMENT HAS BEEN THE SUBJECT
OF DISCUSSIONS AND NEGOTIATION BY THE PARTIES AND THAT THE OTHER MUTUAL
AGREEMENTS OF THE PARTIES SET FORTH IN THE AGREEMENT WERE ARRIVED AT IN
CONSIDERATION OF, INTER ALIA, THE PROVISIONS OF THIS LETTER AGREEMENT.

 

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***   Confidential Treatment Requested

 

LA9-13

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth our understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

 

 

Date:

 

 

Accepted and Agreed

 

Hawaiian Airlines, Inc.

 

By:

 

 

 

 

Its:

 

 

 

 

and

 

 

 

By:

 

 

 

 

Its:

 

 

 

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***   Confidential Treatment Requested

 

LA9-14

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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***   Confidential Treatment Requested

 

LA9-15

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 10

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement.  The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 10 (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms “herein,” “hereof” and
“hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

1.             PREAMBLE

 

1.1           AIRCRAFT CONFIGURATION

 

The guarantee defined below (the “Guarantee”) is applicable to
newly-manufactured A330-200 aircraft as described in the Standard Specification
referenced G 000 02000 Issue 4.3 dated 13th July 2006 amended by a Specification
Change Notice (SCN) for:

 

·              increase of Maximum Take-off Weight to [...***...]

·              increase of Maximum Landing Weight to [...***...]

·              increase of Maximum Zero Fuel Weight to [...***...]

·              installation of Rolls Royce Trent 772B EP engines, (the
“Engines”)

 

without taking into account any further changes thereto, and provided that such
aircraft [...***...]. Such aircraft being hereinafter referred to as the
“Aircraft”.

 

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LA10-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

1.2           INTRODUCTION

 

The paragraphs hereafter define the Guarantee provided by the Seller to the
Buyer, together with the associated conditions, compliance demonstration and
settlement procedures. The “Engine Manufacturer” shall mean “Rolls Royce”.

 

2.             [...***...]

 

2.1           This Guarantee shall apply to the Aircraft. .

 

                                                The term “Fleet” shall mean a
fleet of [...***...] Aircraft to be delivered [...***...].

 

                                                The Guarantee is based on the
delivery plan set forth in Appendix B and shall be subject to good faith review
by the Buyer and the Seller, if the actual delivery dates differ from such
delivery plan.

 

2.2           The period covered by this Guarantee (“the Guarantee Period”) is
[...***...].

 

2.3           [...***...]

 

3.              BUYER’S OBLIGATIONS

 

3.1           The Guarantee shall be contingent upon the Buyer’s compliance with
the following obligations:

 

3.1.1        to comply with the regulatory requirements of Aircraft flight
manual, Buyer’s flight crew operating manual approved by the FAA and Aircraft
maintenance manual;

 

3.1.2        to use available Aircraft/Engine performance restoration procedures
issued by the Seller or the Engine Manufacturer which are economically and
operationally reasonable, including regular engine wash;

 

3.1.3        to comply with airframe maintenance practices as described in
Appendix C. Seller and Buyer will determine, through good faith technical
negotiations, the impact of significant deviations from such airframe
maintenance practices on an Aircraft’s cruise specific range and agree whether
appropriate adjustments in the calculations of performance levels and/or
remedies due under this Letter Agreement will need to be made. Such good faith
technical negotiations may include, upon mutual agreement inspections of the
airframe and the Engine nacelles.

 

3.1.4        to incorporate service bulletins agreed to between the Buyer and
the Seller and between the Buyer and the Engine Manufacturer, in a timely
manner;

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

3.1.5        to comply with overhaul and repair procedures issued by the Seller
and by the Engine Manufacturer consistent with such practices in effect on the
date of the Agreement as modified from time to time, including special
instructions issued by the Seller and the Engine Manufacturer;

 

3.1.6        to comply with the requirements of the Engine Manufacturer with
respect to  the introduction of modifications in the mutually agreed Engine
management program;

 

3.1.7        to use owned or leased RR Trent 772B EP engines during the
Guarantee Period, and

 

3.1.8        in case a lease pool engine is installed on an Aircraft, to process
specifically the data for the Guarantee administration for such Aircraft as
defined in paragraph 4.7.1 below.

 

3.2           If during any period, any Aircraft does not satisfy all the
conditions defined in paragraphs 3.1.1 through 3.1.8 above, or any Aircraft is
powered by an Engine not satisfying all these conditions, such Aircraft will be
excluded from all the terms of this Guarantee, will be excluded from the Fleet
during such period and no remedies hereunder will apply to such  Aircraft for
such period.

 

3.3           the Fleet operating conditions shall be:

 

[...***...]

 

                                                If the Fleet actual average
operating conditions are materially different from the above referenced
conditions, the Seller and the Buyer agree to make appropriate adjustments to
the Guarantee stated in paragraph 2.3, as provided in Appendix D.

 

3.4           If any item installed in the Engine is a part manufactured by a
company not specifically approved by the Engine Manufacturer for the manufacture
or supply of such item, the Seller shall be under no obligation to provide
remedies, and have no liability in respect of remedies pursuant to this
Guarantee, to the extent such item is the direct or indirect cause of the
failure to meet the Guarantee. The Seller shall establish to the reasonable
satisfaction of the Buyer how the item negatively affects specific range.

 

                                                If any item installed on the
Aircraft is a part manufactured by a company not specifically approved by the
Seller for the manufacture or supply of such item, the Seller shall be under no
obligation to provide remedies, and  have no liability in respect of remedies
pursuant to this Guarantee, to the extent such item is the direct or indirect
cause of the failure to meet the Guarantee. The Seller shall establish to the
reasonable satisfaction of the Buyer how the item negatively affects specific
range.

 

[...***...]

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

9.             INTENTIONALLY DELETED

 

10.           PROCEDURAL RESPONSIBILITIES

 

                                                Except as otherwise provided in
this Letter Agreement or agreed by the parties, the Seller shall not bear any
responsibility or cost related to the Buyer’s activities associated with the
performance of Buyer’s obligations under this Letter Agreement.

 

[...***...]

 

12.           ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, not to be unreasonably withheld or delayed, or as may otherwise
be permitted under Clause 20.2 of the Agreement, and any attempted assignment or
transfer in contravention of the provisions of this Paragraph will be void and
of no force or effect.

 

13.           NEGOTIATED AGREEMENT

 

                                                THE BUYER AND THE SELLER AGREE
THAT THIS LETTER AGREEMENT HAS BEEN THE SUBJECT OF DISCUSSIONS AND NEGOTIATION
BY THE PARTIES AND THAT THE OTHER MUTUAL AGREEMENTS OF THE PARTIES SET FORTH IN
THE AGREEMENT WERE ARRIVED AT IN CONSIDERATION OF, INTER ALIA, THE PROVISIONS OF
THIS LETTER AGREEMENT.

 

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***   Confidential Treatment Requested

 

LA10-4

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

Hawaiian Airlines, Inc.

 

By:

 

 

 

 

Its:

 

 

 

 

and

 

 

 

By:

 

 

 

 

Its:

 

 

 

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***   Confidential Treatment Requested

 

LA10-5

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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LA10-6

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

APPENDIX B

 

Deliveries of the Aircraft are planned as follows, [...***...]

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

APPENDIX C – AIRFRAME MAINTENANCE PRACTICE

 

1)            Seals status shall be in serviceable condition and not diminish
performance of the Aircraft when checked per visual inspection.

 

Seals check shall be done for:

·     Wing

·     Belly-fairing

·     Landing gear doors

·     Trimmable Horizontal Stabiliser

·     Vertical Tail Plane

·     Pylons

·     Flap track fairings

·     Nacelles

 

These checks shall be made in intervals as stated in the appropriate Aircraft
maintenance manual or at least at every C-check.

 

2)            All of the following inlets condition shall be within and in
accordance with AMM and SRM (or other Seller authorized engineering documents)
allowable limits:

·     Engines

·     Air conditioning packs

·     Belly fairing venting

·     APU

·     Pylons and nacelles venting

 

3)            Wing, nacelles and fuselage skin shall be clean as per MPD or as
per industry standard.

 

The following shall be visually checked:

·     Structural repairs shall be within and in accordance with AMM and SRM (or
other Seller authorized engineering documents) allowable limits

·     Paint aging

·     Dirt/dust accumulation shall not be excessive

 

4)             The fuselage surface located in the vicinity of the static
pressure ports and of the angle of attack sensors shall comply with the
aerodynamic requirements for allowable damages and external repairs as contained
in the SRM.

 

5)             Buyer may deviate from the foregoing provisions to the extent as
permitted by the Aircraft MMEL and CDL.

 

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LA10-8

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

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

***   CONFIDENTIAL TREATMENT REQUESTED

 

LA10-9

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

 

*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 11

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and Airbus S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement. The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 11 (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms “herein,” “hereof” and
“hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

[...***...]

 

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***   Confidential Treatment Requested

 

LA11-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

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***   Confidential Treatment Requested

 

LA11-2

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

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***   Confidential Treatment Requested

 

LA11-3

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

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***   Confidential Treatment Requested

 

LA11-4

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

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***   Confidential Treatment Requested

 

LA11-5

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

 

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LA11-6

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

12.                           ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, except as may be permitted under Clause 20.2 of the Agreement,
and any attempted assignment or transfer in contravention of the provisions of
this Paragraph will be void and of no force or effect.

 

13.                           CONFIDENTIALITY

 

This Letter Agreement including any other documents or data exchanged between
the Buyer and the Seller hereunder is subject to the provisions of Paragraph
22.9 of the Agreement.

 

14.                           NEGOTIATED AGREEMENT

 

THE BUYER AND THE SELLER AGREE THAT THIS LETTER AGREEMENT HAS BEEN THE SUBJECT
OF DISCUSSIONS AND NEGOTIATION BY THE PARTIES AND THAT THE OTHER MUTUAL
AGREEMENT OF THE PARTIES SET FORTH IN THE AGREEMENT WERE ARRIVED AT IN
CONSIDERATION OF, INTER ALIA, THE PROVISIONS OF THIS LETTER AGREEMENT.

 

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***   Confidential Treatment Requested

 

LA11-7

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

Airbus S.A.S.

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

Hawaiian Airlines, Inc.

 

By:

 

 

 

 

 

Its:

 

 

 

 

 

and

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

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***   Confidential Treatment Requested

 

LA11-8

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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***   Confidential Treatment Requested

 

LA11-9

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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LA11-10

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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***   Confidential Treatment Requested

 

LA11-11

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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LA11-12

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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LA11-13

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 12

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and Airbus S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement. The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 12 (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms “herein,” “hereof” and
“hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

[...***...]

 

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***   Confidential Treatment Requested

 

 

LA12-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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***   Confidential Treatment Requested

 

LA12-2

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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LA12-3

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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LA12-4

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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LA12-5

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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LA12-6

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

11.           ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, except as may be permitted under Clause 20.2, and any attempted
assignment or transfer in contravention of the provisions of this Paragraph will
be void and of no force or effect.

 

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LA12-7

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.           CONFIDENTIALITY

 

This Letter Agreement including any other documents or data exchanged between
the Buyer and the Seller hereunder is subject to the provisions of Clause 22.9
of the Agreement.

 

13.           NEGOTIATED AGREEMENT

 

THE BUYER AND THE SELLER AGREE THAT THIS LETTER AGREEMENT HAS BEEN THE SUBJECT
OF DISCUSSIONS AND NEGOTIATION BY THE PARTIES AND THAT THE OTHER MUTUAL
AGREEMENT OF THE PARTIES SET FORTH IN THE AGREEMENT WERE ARRIVED AT IN
CONSIDERATION OF, INTER ALIA, THE PROVISIONS OF THIS LETTER AGREEMENT.

 

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

***   Confidential Treatment Requested

 

LA12-8

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

Airbus S.A.S.

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

Hawaiian Airlines, Inc.

 

By:

 

 

 

 

Its:

 

 

 

 

and

 

 

 

By:

 

 

 

 

Its:

 

 

 

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***   Confidential Treatment Requested

 

LA12-9

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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***   Confidential Treatment Requested

 

LA12-10

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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***   Confidential Treatment Requested

 

LA12-11

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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LA12-12

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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LA12-13

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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***   Confidential Treatment Requested

 

LA12-14

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 13

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and Airbus S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement. The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 13 (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms “herein,” “hereof” and
“hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

[...***...]

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LA13-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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LA13-2

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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LA13-4

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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LA13-5

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

 

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

11.           ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, except as may be permitted under Clause 20.2 of the Agreement,
and any attempted assignment or transfer in contravention of the provisions of
this Paragraph will be void and of no force or effect.

 

12.           CONFIDENTIALITY

 

This Letter Agreement including any other documents or data exchanged between
the Buyer and the Seller hereunder is subject to the provisions of Clause 22.9of
the Agreement.

 

13.           NEGOTIATED AGREEMENT

 

THE BUYER AND THE SELLER AGREE THAT THIS LETTER AGREEMENT HAS BEEN THE SUBJECT
OF DISCUSSIONS AND NEGOTIATION BY THE PARTIES AND THAT THE OTHER MUTUAL
AGREEMENT OF THE PARTIES SET FORTH IN THE AGREEMENT WERE ARRIVED AT IN
CONSIDERATION OF, INTER ALIA, THE PROVISIONS OF THIS LETTER AGREEMENT.

 

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

***   Confidential Treatment Requested

 

LA13-8

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

Airbus S.A.S

 

 

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

 

 

Hawaiian airlines, Inc.

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

 

 

 

and

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

Its:

 

 

 

 

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***   Confidential Treatment Requested

 

LA13-9

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

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

***   Confidential Treatment Requested

 

LA13-10

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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*** Confidential Treatment Requested

 

LA13-11

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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*** Confidential Treatment Requested

 

LA13-12

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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*** Confidential Treatment Requested

 

LA13-13

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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*** Confidential Treatment Requested

 

LA13-14

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 14

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and Airbus S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement. The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 14 (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms “herein,” “hereof” and
“hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

[...***...]

 

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*** Confidential Treatment Requested

 

LA14-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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*** Confidential Treatment Requested

 

LA14-2

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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*** Confidential Treatment Requested

 

LA14-3

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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*** Confidential Treatment Requested

 

LA14-4

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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*** Confidential Treatment Requested

 

LA14-5

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

6.                                       [...***...]

 

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*** Confidential Treatment Requested

 

LA14-6

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

12.                                                                                
ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, except as may be permitted under Clause 20.2 of the Agreement,
and any attempted assignment or transfer in contravention of the provisions of
this Paragraph will be void and of no force or effect.

 

13.                                                                                
CONFIDENTIALITY

 

This Letter Agreement including any other documents or data exchanged between
the Buyer and the Seller hereunder is subject to the provisions of Paragraph
22.9 of the Agreement.

 

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***   Confidential Treatment Requested

 

LA14-7

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

14.                                                                                
NEGOTIATED AGREEMENT

 

THE BUYER AND THE SELLER AGREE THAT THIS LETTER AGREEMENT HAS BEEN THE SUBJECT
OF DISCUSSIONS AND NEGOTIATION BY THE PARTIES AND THAT THE OTHER MUTUAL
AGREEMENT OF THE PARTIES SET FORTH IN THE AGREEMENT WERE ARRIVED AT IN
CONSIDERATION OF, INTER ALIA, THE PROVISIONS OF THIS LETTER AGREEMENT.

 

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

***   Confidential Treatment Requested

 

LA14-8

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

Airbus S.A.S.

 

 

 

 

 

By:

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

 

 

Hawaiian Airlines, Inc.

 

 

 

By:

 

 

 

 

Its:

 

 

 

 

 

u

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

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***   Confidential Treatment Requested

 

LA14-9

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

 

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***   Confidential Treatment Requested

 

LA14-10

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

 

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***   Confidential Treatment Requested

 

LA14-11

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

 

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***   Confidential Treatment Requested

 

LA14-12

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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***   Confidential Treatment Requested

 

LA14-13

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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***   Confidential Treatment Requested

 

LA14-14

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 15

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement.  The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 15 (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms “herein,” “hereof” and
“hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

1.            PREAMBLE

 

1.1          AIRCRAFT CONFIGURATION

 

The guarantee defined below (the “Guarantee”) is applicable to
newly-manufactured A350XWB-800 Aircraft as described in the Aircraft Description
Document V 000XWB Issue E, dated 10th September 2007, as amended by a
Specification Change Notice (“SCN”) for installation of Rolls-Royce Trent XWB-74
engines (the “Engines”) without taking into account any further changes thereto,
and provided that such aircraft [...***...]. Such aircraft being hereinafter
referred to as the “Aircraft”.

 

1.2          INTRODUCTION

 

The paragraphs hereafter define the Guarantee provided by the Seller to the
Buyer, together with the associated conditions, compliance demonstration and
settlement procedures. The “Engine Manufacturer” shall mean “Rolls Royce”.

 

2.             [...***...]

 

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***   Confidential Treatment Requested

 

LA15-1

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

2.1                               This Guarantee shall apply to the Aircraft. .

 

                                              The term “Fleet” shall mean a
fleet of [...***...] Aircraft to be delivered [...***...].

 

                                              The Guarantee is based on the
delivery plan set forth in Appendix B and shall be subject to good faith review
by the Buyer and the Seller, if the actual delivery dates differ from such
delivery plan.

 

2.2                               The period covered by this Guarantee (“the
Guarantee Period”) is [...***...]

 

3.                                     BUYER’S OBLIGATIONS

 

3.1                               The Guarantee shall be contingent upon the
Buyer’s compliance with the following obligations:

 

3.1.1                      to comply with the regulatory requirements of
Aircraft flight manual, Buyer’s flight crew operating manual approved by the FAA
and Aircraft maintenance manual;

 

3.1.2                      to use available Aircraft/Engine performance
restoration procedures issued by the Seller or the Engine Manufacturer which are
economically and operationally reasonable, including regular engine wash;

 

3.1.3                      to comply with airframe maintenance practices as
described in Appendix C. Seller and Buyer will determine, through good faith
technical negotiations, the impact of significant deviations from such airframe
maintenance practices on an Aircraft’s cruise specific range and agree whether
appropriate adjustments in the calculations of performance levels and/or
remedies due under this Letter Agreement will need to be made. Such good faith
technical negotiations may include, upon mutual agreement, inspections of the
airframe and the Engine nacelles.

 

3.1.4                      to incorporate service bulletins agreed to between
the Buyer and the Seller and between the Buyer and the Engine Manufacturer, in a
timely manner;

 

3.1.5                      to comply with overhaul and repair procedures issued
by the Seller and by the Engine Manufacturer consistent with such practices in
effect on the date of the Agreement, as modified from time to time, including
special instructions issued by the Seller and the Engine Manufacturer;

 

3.1.6                      to comply with the requirements of the Engine
Manufacturer with respect to the introduction of modifications in the mutually
agreed Engine management program;

 

3.1.7                      to use owned or leased RR Trent XWB-74 engines during
the Guarantee Period, and

 

3.1.8                      in case a lease pool engine is installed on an
Aircraft, to process specifically the data for the Guarantee administration for
such Aircraft as defined in paragraph 4.7.1 below.

 

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***   Confidential Treatment Requested

 

LA15-2

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

3.2                               If during any period, any Aircraft does not
satisfy all the conditions defined in paragraphs 3.1.1 through 3.1.8 above, or
any Aircraft is powered by an Engine not satisfying all these conditions, such
Aircraft will be excluded from all the terms of this Guarantee, will be excluded
from the Fleet during such period and no remedies hereunder will apply to such 
Aircraft for such period.

 

3.3                                 the Fleet operating conditions shall be:

 

[...***...]

 

                                                If the Fleet actual average
operating conditions are materially different from the above referenced
conditions, the Seller and the Buyer agree to make appropriate adjustments to
the Guarantee stated in paragraph 2.3, as provided in Appendix D

 

3.4                                 If any item installed in the Engine is a
part manufactured by a company not specifically approved by the Engine
Manufacturer for the manufacture or supply of such item, the Seller shall be
under no obligation to provide remedies, and have no liability in respect of
remedies pursuant to this Guarantee, to the extent such item is the direct or
indirect cause of the failure to meet the Guarantee. The Seller shall establish
to the reasonable satisfaction of the Buyer how the item negatively affects
specific range.

 

                                                If any item installed on the
Aircraft is a part manufactured by a company not specifically approved by the
Seller for the manufacture or supply of such item, the Seller shall be under no
obligation to provide remedies, and have no liability in respect of remedies
pursuant to this Guarantee, to the extent such item is the direct or indirect
cause of the failure to meet the Guarantee. The Seller shall establish to the
reasonable satisfaction of the Buyer how the item negatively affects specific
range.

 

[...***...]

 

9.                                       INTENTIONALLY DELETED

 

10.                                 PROCEDURAL RESPONSIBILITIES

 

                                                Except as otherwise provided in
this Letter Agreement or agreed by the parties, the Seller shall not bear any
responsibility or cost related to the Buyer’s activities associated with the
performance of Buyer’s obligations under this Letter Agreement.

 

[...***...]

 

12.                                ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, not to be unreasonably withheld or delayed, or as may otherwise
be permitted under

 

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***   Confidential Treatment Requested

 

LA15-3

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

Clause 20.2 of the Agreement, and any attempted assignment or transfer in
contravention of the provisions of this Paragraph will be void and of no force
or effect.

 

13.                                 NEGOTIATED AGREEMENT

 

                                                THE BUYER AND THE SELLER AGREE
THAT THIS LETTER AGREEMENT HAS BEEN THE SUBJECT OF DISCUSSIONS AND NEGOTIATION
BY THE PARTIES AND THAT THE OTHER MUTUAL AGREEMENTS OF THE PARTIES SET FORTH IN
THE AGREEMENT WERE ARRIVED AT IN CONSIDERATION OF, INTER ALIA, THE PROVISIONS OF
THIS LETTER AGREEMENT.

 

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

***   Confidential Treatment Requested

 

LA15-4

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

 

 

By:

 

 

 

 

Its:

 

 

 

Accepted and Agreed

 

 

 

Hawaiian Airlines, Inc.

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

 

 

and

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

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

***   Confidential Treatment Requested

 

LA15-5

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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

***   Confidential Treatment Requested

 

LA15-6

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

APPENDIX B

 

Deliveries of the Aircraft are planned as follows:

 

[...***...]

 

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LA15-7

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

APPENDIX C – AIRFRAME MAINTENANCE PRACTICE

 

1)                                     Seals status shall be in serviceable
condition and not diminish performance of the Aircraft when checked per visual
inspection.

 

Seals check shall be done for:

 

·    Wing

·    Belly-fairing

·    Landing gear doors

·    Trimmable Horizontal Stabiliser

·    Vertical Tail Plane

·    Pylons

·    Flap track fairings

·    Nacelles

 

These checks shall be made in intervals as stated in the appropriate Aircraft
maintenance manual or at least at every C-check.

 

2)                                     All of the following inlets condition
shall be within and in accordance with AMM and SRM (or other Seller authorized
engineering documents) allowable limits:

 

·    Engines

·    Air conditioning packs

·    Belly fairing venting

·    APU

·    Pylons and nacelles venting

 

3)                                     Wing, nacelles and fuselage skin shall be
clean as per MPD or as per industry standard.

 

The following shall be visually checked:

 

·    Structural repairs shall be within and in accordance with AMM and SRM (or
other Seller authorized engineering documents) allowable limits

·    Paint aging

·    Dirt/dust accumulation shall not be excessive

 

5)                                      The fuselage surface located in the
vicinity of the static pressure ports and of the angle of attack sensors shall
comply with the aerodynamic requirements for allowable damages and external
repairs as contained in the SRM.

 

5)                                      Buyer may deviate from the foregoing
provisions to the extent as permitted by the Aircraft MMEL and CDL.

 

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***   Confidential Treatment Requested

 

LA15-8

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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***   Confidential Treatment Requested

 

LA15-9

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*** CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

LETTER AGREEMENT NO. 16

 

As of January 31, 2008

 

Hawaiian Airlines, Inc.

 

Re:  [...***...]

 

Ladies and Gentlemen,

 

Hawaiian Airlines, Inc. (the “Buyer”), and AIRBUS S.A.S. (the “Seller”), have
entered into an Airbus A330/A350XWB Purchase Agreement dated as of even date
herewith (the “Agreement”), which covers, among other things, the sale by the
Seller and the purchase by the Buyer of certain Aircraft, under the terms and
conditions set forth in said Agreement.  The Buyer and the Seller have agreed to
set forth in this Letter Agreement No. 16 (the “Letter Agreement”) certain
additional terms and conditions regarding the sale of the Aircraft.  Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement.  The terms “herein,” “hereof”
and “hereunder” and words of similar import refer to this Letter Agreement.

 

Both parties agree that this Letter Agreement will constitute an integral,
nonseverable part of said Agreement, that the provisions of said Agreement are
hereby incorporated herein by reference, and that this Letter Agreement will be
governed by the provisions of said Agreement, except that if the Agreement and
this Letter Agreement have specific provisions which are inconsistent, the
specific provisions contained in this Letter Agreement will govern.

 

1.             AIRCRAFT CONFIGURATION

 

The guarantees defined below (the “Guarantees”) are applicable to the
A350XWB-800 Aircraft as defined in the A350XWB-800 Standard Specification, with
the following design weights:

 

Maximum Take-Off Weight

 

[...***...]

Maximum Landing Weight

 

[...***...]

Maximum Zero Fuel Weight

 

[...***...]

Maximum Fuel Capacity

 

[...***...]

 

and fitted with Rolls Royce Trent XWB-74 engines at a nominal thrust rating of
74,000 lbs without taking into account any further changes thereto pursuant to
the Agreement and hereinafter called the Standard Specification.

 

                                                Notwithstanding the foregoing
the Seller reserves the right to increase the design weights above in order to
satisfy the Guarantees.

 

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***   Confidential Treatment Requested

 

LA16-1

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

2                                          GUARANTEED PERFORMANCE

 

2.2                                 Take-off

 

2.1.1                        FAR take-off field length at an A350XWB-800
Aircraft gross weight of 540,132 lb at the start of ground run at sea level
pressure altitude at ISA+15°C shall be not more than a guaranteed value of
[...***...]

 

2.1.2                        When operated under the following conditions
(representative of HNL runway 08L):

 

Pressure altitude

 

: 12 ft

Ambient temperature

 

: 29ºC

Take-off run available (TORA)

 

: 12,300 ft

Take-off distance available (TODA)

 

: 12,300 ft

Accelerate-stop distance available (ASDA)

 

: 12,300 ft

Line-up allowance on TORA / TODA / ASDA

 

: 75.5 ft / 75.5 ft / 157.5 ft

Slope

 

: 0.02% (downhill)

Wind

 

: Zero

Runway condition

 

: Dry

Obstacles (height /distance from beginning of TOR)

 

: 10 ft / 13,070 ft

 

 

23 ft / 13,800 ft

 

 

92 ft / 17,257 ft

 

the maximum permissible weight at the start of ground run shall be not less than
a guaranteed value of [...***...]

 

2.1.3                        When operated under the following conditions
(representative of OGG runway 02):

 

Pressure altitude

: 54 ft

Ambient temperature

: 28ºC

Take-off run available (TORA)

: 7,001 ft

Take-off distance available (TODA)

: 7,001 ft

Accelerate-stop distance available (ASDA)

: 7,001 ft

Line-up allowance on TORA / TODA / ASDA

: 75.5 ft / 75.5 ft / 157.5 ft

Slope

: -0.60% (uphill)

Wind

: Zero

Runway condition

: Dry

Obstacles (height /distance from beginning of TOR)

: -29 ft / 7,339 ft

 

the maximum permissible weight at the start of ground run shall be not less than
a guaranteed value of [...***...]

 

2.1.4                        When operated under the following conditions
(representative of SAN runway 27):

 

Pressure altitude

 

: 16 ft

Ambient temperature

 

: 24ºC

Take-off run available (TORA)

 

: 9,400 ft

Take-off distance available (TODA)

 

: 9,400 ft

 

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LA16-2

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

Accelerate-stop distance available (ASDA)

 

: 9,400 ft

Line-up allowance on TORA / TODA / ASDA

 

: 75.5 ft / 75.5 ft / 157.5 ft

Slope

 

: -0.02% (uphill)

Wind

 

: Zero

Runway condition

 

: Dry

Obstacles (height /distance from beginning of TOR)

 

: 12 ft / 9,688 ft

 

 

37 ft / 10,033 ft

 

 

40 ft / 10,177 ft

 

 

46 ft / 10,886 ft

 

 

91 ft / 11,995 ft

 

 

104 ft / 12,720 ft

 

 

161 ft / 14,173 ft

 

 

186 ft / 14,656 ft

 

 

211 ft / 15,098 ft

 

 

217 ft / 15,358 ft

 

 

235 ft / 15,850 ft

 

the maximum permissible weight at the start of ground run shall be not less than
a guaranteed value of [...***...]

 

2.1.5                        When operated under the following conditions
(representative of DEN runway 34L):

 

Pressure altitude

 

: 5,324 ft

Ambient temperature

 

: 21ºC

Take-off run available (TORA)

 

: 16,001 ft

Take-off distance available (TODA)

 

: 16,001 ft

Accelerate-stop distance available (ASDA)

 

: 16,001 ft

Line-up allowance on TORA / TODA / ASDA

 

: 75.5 ft / 75.5 ft / 157.5 ft

Slope

 

: -0.03% (uphill)

Wind

 

: Zero

Runway condition

 

: Dry

Obstacles (height /distance from beginning of TOR)

 

: none

 

the maximum permissible weight at the start of ground run shall be not less than
a guaranteed value of [...***...]

 

2.2                                 Second Segment Climb

 

                                                The A350XWB-800 Aircraft shall
meet FAR regulations for one engine inoperative climb after take-off,
undercarriage retracted, at a weight corresponding to the stated weight at the
start of ground run at the altitude and temperature and in the configuration of
flap angle and safety speed required to comply with the performances guaranteed
in paragraph 2.1.

 

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LA16-3

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

2.3                                 Landing Field Length

 

FAR certified landing field length at an A350XWB-800 Aircraft gross weight of
402,343 lb at sea level pressure altitude shall be not more than a guaranteed
value of:

[...***...]

 

2.4                                 Cruise Speed

 

Level flight speed at an A350XWB-800 Aircraft gross weight of 500,000 lb at a
pressure altitude of 37,000 feet in ISA conditions using not more than maximum
cruise thrust shall be a guaranteed true Mach number of [...***...]

 

2.5                                 Altitude Capability

 

At an A350XWB-800 Aircraft gross weight of 528,000 lb. in ISA conditions the
A350XWB-800 Aircraft will be capable of maintaining:

[...***...]

 

2.6                                 En-route One Engine Inoperative

 

The A350XWB-800 Aircraft will meet FAR regulations minimum en-route climb with
one engine inoperative and the other operating at the maximum continuous thrust
with anti-icing off at an A350XWB-800 Aircraft gross weight of 440,000 lb. in
the cruise configuration in ISA conditions at a guaranteed pressure altitude of
not less than [...***...]

 

3.                                       MISSION RANGE GUARANTEES

 

3.1                                 The A350XWB-800 Aircraft shall be capable of
carrying a fixed payload of [...***...] over a guaranteed still air stage
distance of not less than 5,650 nautical miles (assumed representative of
MZFW/MTOW limitation) under the conditions defined below.

 

The departure airport conditions are such as to allow the required take-off
weight to be used without restriction.
The destination airport conditions are such as to allow the required landing
weight to be used without restriction.

 

[...***...]

 

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***   Confidential Treatment Requested

 

LA16-4

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

 

Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

3.2           The A350XWB-800 Aircraft shall be capable of carrying a fixed
payload of [...***...] over a guaranteed still air stage distance of not less
than [...***...] miles (assumed representative of MTOW/MFC limitation) under the
conditions defined below.

 

The departure airport conditions are such as to allow the required take-off
weight to be used without restriction.

 

The destination airport conditions are such as to allow the required landing
weight to be used without restriction.

 

[...***...]

 

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***   Confidential Treatment Requested

 

LA16-5

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

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LA16-6

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

3.4           The mission range guarantees defined in the paragraphs 3.1 to 3.3
inclusive above are based on an Operating Weight Empty defined as the sum of:

 

a)             the Manufacturer’s Weight Empty of the basic A350XWB-800 Aircraft
as defined in the Standard Specification which shall be derived from the
weighing of the A350XWB-800 Aircraft with corrections according to Section 13 of
the Standard Specification,

b)            [...***...] for customer changes and operators items (see Appendix
A).

 

4              MISSION PAYLOAD GUARANTEES

 

4.1           Mission HNL-SFO

 

The A350XWB-800 Aircraft shall be capable of carrying a guaranteed payload not
less than [...***...] over a still air stage distance of 2,155 nautical miles
(assumed representative of the mission HNL to SFO with 7 knots tailwind) under
the conditions defined below.

 

The departure airport conditions are as defined in Paragraph 2.1.2 above.

The destination airport conditions are such as to allow the required landing
weight to be used without restriction. Pressure altitude is 11 ft.

 

[...***...]

 

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LA16-7

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

4.2           Mission OGG-PHX

 

The A350XWB-800 Aircraft shall be capable of carrying a guaranteed payload not
less than [...***...] over a still air stage distance of 2,530 nautical miles
(assumed representative of the mission OGG to PHX with 12 knots tailwind) under
the conditions defined below.

 

The departure airport conditions are as defined in Paragraph 2.1.3 above.

The destination airport conditions are such as to allow the required landing
weight to be used without restriction. Pressure altitude is 1,133 ft.

 

[...***...]

 

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LA16-8

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

4.3           Mission DEN-HNL

 

The A350XWB-800 Aircraft shall be capable of carrying a guaranteed payload not
less than [...***...] over a still air stage distance of 3,433 nautical miles
(assumed representative of the mission DEN to HNL with 53 knots headwinds) under
the conditions defined below.

 

The departure airport conditions are as defined in Paragraph 2.1.5 above.

The destination airport conditions are such as to allow the required landing
weight to be used without restriction. Pressure altitude is 13 ft.

 

[...***...]

 

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LA16-9

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

4.4           Mission HNL-PVG

 

The A350XWB-800 Aircraft shall be capable of carrying a guaranteed payload not
less than [...***...] over a still air stage distance of 5,842 nautical miles
(assumed representative of the mission HNL to PVG with 114 knots headwinds)
under the conditions defined below.

 

The departure airport conditions are as defined in Paragraph 2.1.2 above.

The destination airport conditions are such as to allow the required landing
weight to be used without restriction. Pressure altitude is 10 ft.

 

[...***...]

 

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LA16-10

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

5                                          MISSION FUEL BURN GUARANTEES

 

5.1                                 Mission HNL-SFO

 

In carrying a fixed payload of [...***...] over a still air stage distance of
2,155 nautical miles (assumed representative of HNL to SFO with 7 knots
tailwind) when operated under the conditions defined in paragraph 4.1 above the
block fuel burnt shall be not more than a guaranteed value of [...***...] and
the block time will not be more than a guaranteed value of [...***...]. The
block time is defined as the time for engine start-up and taxi-out, take-off,
climb, cruise, descent, approach and landing and taxi-in.

 

5.2                                 Mission OGG-PHX

 

In carrying a fixed payload of [...***...] over a still air stage distance of
2,530 nautical miles (assumed representative of OGG to PHX with 12 knots
tailwind) when operated under the conditions defined in paragraph 4.2 above the
block fuel burnt shall be not more than a guaranteed value of [...***...] and
the block time will not be more than a guaranteed value of [...***...]. The
block time is defined as the time for engine start-up and taxi-out, take-off,
climb, cruise, descent, approach and landing and taxi-in.

 

5.3                                 Mission DEN-HNL

 

In carrying a fixed payload of [...***...] over a still air stage distance of
3,433 nautical miles (assumed representative of DEN to HNL with 53 knots
headwind) when operated under the conditions defined in paragraph 4.3 above the
block fuel burnt shall be not more than a guaranteed value of [...***...] and
the block time will not be more than a guaranteed value of [...***...]. The
block time is defined as the time for engine start-up and taxi-out, take-off,
climb, cruise, descent, approach and landing and taxi-in.

 

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LA16-11

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

5.4                                 Mission HNL-PVG

 

In carrying a fixed payload of [...***...] over a still air stage distance of
5,842 nautical miles (assumed representative of HNL to PVG with 114 knots
headwind) when operated under the conditions defined in paragraph 4.4 above the
block fuel burnt shall be not more than a guaranteed value of [...***...] and
the block time will not be more than a guaranteed value of [...***...]. The
block time is defined as the time for engine start-up and taxi-out, take-off,
climb, cruise, descent, approach and landing and taxi-in.

 

5.5                                 The mission fuel burn guarantees defined in
the paragraphs 5.1 to 5.4 inclusive above are based on an Operating Weight Empty
defined as the sum of:

 

a)                                      the Manufacturer’s Weight Empty of the
basic A350XWB-800 Aircraft as defined in the Standard Specification which shall
be derived from the weighing of the A350XWB-800 Aircraft with corrections
according to Section 13 of the Standard Specification,

b)                                     [...***...] for Customer Changes and
Operators Items (see Appendix A).

 

[...***...]

 

7                                          NOISE

 

7.1                                 Acoustic certification levels

 

The A350XWB-800 Aircraft powered by Rolls Royce Trent XWB74 engines at a MTOW of
245,000 kg and a MLW of 182,500 kg shall be [...***...]

 

7.2                                 Interior Noise during flight

 

7.2.1                        Cockpit

 

At a pressure altitude of 35000 ft and a true Mach number of 0.85 in straight
and level flight in still air under ISA conditions, the guaranteed A-weighted
Sound Pressure Level (SPL) and the Speech Interference Level (SIL) shall be as
follows:

 

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LA16-12

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

Noise levels shall be measured at the Captain’s and First Officer’s seat
position at head level with normal cockpit air conditioning and ventilation in
operation.

 

7.2.2                        Cabin

 

At a pressure altitude of 35000 ft and a true Mach number of 0.85 in straight
and level flight in still air under ISA conditions, the guaranteed A-weighted
Sound Pressure Level (SPL) and the Speech Interference Level (SIL) shall be as
follows:

 

[...***...]

 

7.3                                 APU Noise

 

[...***...]

 

7.4                                 Engine Emissions (information only)

 

The A350XWB-800 Propulsion Systems manufacturer being directly providing
HAWAIIAN AIRLINES with an aircraft engine emissions guarantee, the following
data is provided for information only.

 

The Trent XWB engine is expected to meet the emission levels for Smoke as
defined in ICAO Annex 16, Volume II ‘Aircraft Engine Emissions’, Second Edition
effective 11th November 1993, section 2.2.2 [...***...]

 

The Trent XWB engine is expected to meet the emission levels for Unburned
Hydrocarbons (HC), Carbon Monoxide (CO) as defined in ICAO Annex 16, Volume II
‘Aircraft Engine Emissions’, Second Edition effective 11th November 1993,
section 2.3.2 [...***...]

 

The Trent XWB engine is expected to meet the emission levels for Oxides of
Nitrogen (NOx) as specified in the ICAO Annex 16, Volume II ‘Aircraft Engine
Emissions’, Second Edition, Amendment 5, applicable 24 November 2005, Chapter
2.3.2d (CAEP/6) [...***...]

 

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LA16-13

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

8.                                                                  ACN

 

8.1                                 Flexible runway

 

The A350XWB-800 Aircraft classification number (ACN) for flexible pavement at
maximum taxi weight, with the CG that produces the highest main gear loading on
the pavement and tire pressure considered as inflated to the manufacturer’s
recommendation for these conditions shall not exceed the following guaranteed
values, such guaranteed values being computed with the [...***...] currently in
use:

 

[...***...]

 

For information, flexible guarantees based on the [...***...] approved by the
ICAO Aerodrome Panel / December 2006, would become:

 

[...***...]

 

8.2                                 Rigid runway

 

The A350XWB-800 Aircraft classification number (ACN) for rigid pavement at
maximum taxi weight, with the CG that produces the highest main gear loading on
the pavement and tire pressure considered as inflated to the manufacturer’s
recommendation for these conditions shall not exceed the following guaranteed
values:

 

[...***...]

 

9                                          GUARANTEE CONDITIONS

 

9.1                                 The Guarantees are applicable at Delivery of
the A350XWB-800 Aircraft.

 

9.2                                 The performance certification requirements
for the A350XWB-800 Aircraft, except where otherwise stated, will be as stated
in Section 02 of the Standard Specification.

 

[...***...]

 

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LA16-14

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

10            GUARANTEE COMPLIANCE

 

10.1         Compliance with the Guarantees shall be demonstrated using
operating procedures and limitations in accordance with the operating procedures
and limitations defined by the certifying Airworthiness Authority and by the
Seller unless otherwise stated.

 

10.2         Compliance with the take-off, second segment and landing elements
of the Guarantees will be demonstrated with reference to the approved Flight
Manual.

 

10.3         Compliance with those parts of the Guarantees defined in paragraphs
2, 3, 4 and 5 above not covered by the requirements of the certifying
Airworthiness Authority will be demonstrated by calculation based on data
obtained during fully instrumented flight tests conducted on one (or more, at
the Seller’s discretion) A350XWB-800 aircraft of the same

 

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LA16-15

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

airframe/engine model combination as those A350XWB-800 Aircraft purchased by the
Buyer and incorporated in the In-Flight Performance Program and data bases (“the
IFP”) appropriate to the A350XWB-800 Aircraft and valid at time of Delivery of
the A350XWB-800 Aircraft.

 

Compliance demonstration for the mission guarantees defined in paragraphs 3.1 to
3.3, paragraphs 4.1 to 4.4 and paragraphs 5.1 to 5.4 shall be demonstrated with
reference to a weight compliance report.

 

10.4         Compliance with the Structural Usable Load guarantee will be
demonstrated with reference to a weight compliance report.

 

10.5         Data derived from flight tests will be adjusted as required using
conventional methods of correction, interpolation or extrapolation in accordance
with established aeronautical practices to show compliance with the Guarantees.

 

10.6         The approved A350XWB-800 Aircraft flight manual shall be used to
demonstrate compliance with the guarantees of certification noise levels.

 

10.7         Compliance with the APU noise and interior noise guarantees shall
be demonstrated with reference to noise surveys conducted on one (or more)
aircraft at the seller’s discretion of an acoustically equivalent standard to
those A350XWB-800 Aircraft.

 

10.8         Noise measurements data relative to the interior of the A350XWB-800
Aircraft shall be conducted in accordance with the test procedures described in
section 5 of International Standard ISO 5129 “Acoustics – Measurement of sound
pressure level in the interior of aircraft during flight”.

 

Data derived from flight tests and noise surveys shall be adjusted as required
using conventional methods of correction, interpolation or extrapolation in
accordance with established aeronautical practices.

 

10.9         The Seller undertakes to furnish the Buyer with a report or reports
demonstrating compliance with the Guarantees prior to Delivery of each of the
Buyer’s A350XWB-800 Aircraft.

 

The Seller further undertakes to furnish the Buyer with a cruise test report,
which provides the cruise specific range measurements made during the
pre-Delivery flights of each A350XWB-800 Aircraft.

 

11            ADJUSTMENT OF GUARANTEES

 

11.1         If any change to any law, governmental regulation or requirement or
interpretation thereof (a “Rule Change”) is made by any governmental agency
subsequent to the date of the Agreement and such Rule Change affects the
A350XWB-800 Aircraft configuration or performance or both required to obtain
certification the Guarantees shall be appropriately modified to reflect the
effect of any such Rule Change.

 

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LA16-16

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

11.2                           The Guarantees apply to the A350XWB-800 Aircraft
as described in the paragraph 1 above and may be adjusted in the event of:

 

a)                                      Any further configuration change, which
is the subject of a SCN

b)                                     Changes in the design criteria required
by the appropriate airworthiness authorities to obtain certification

 

12.                               EXCLUSIVE GUARANTEES

 

The Guarantees are exclusive and are provided in lieu of any and all other
performance and weight guarantees of any nature which may be stated, referenced
or incorporated in the Standard Specification or any other document.

 

[...***...]

 

14.                                 ASSIGNMENT

 

This Letter Agreement and the rights and obligations of the Buyer hereunder will
not be assigned or transferred in any manner without the prior written consent
of the Seller, not to be unreasonably withheld or delayed, or as may otherwise
be permitted under Clause 20.2 of the Agreement, and any attempted assignment or
transfer in contravention of the provisions of this Paragraph will be void and
of no force or effect.

 

15.                                 NEGOTIATED AGREEMENT

 

THE BUYER AND THE SELLER AGREE THAT THIS LETTER AGREEMENT HAS BEEN THE SUBJECT
OF DISCUSSIONS AND NEGOTIATION BY THE PARTIES AND THAT THE OTHER MUTUAL
AGREEMENTS OF THE PARTIES SET FORTH IN THE AGREEMENT WERE ARRIVED AT IN
CONSIDERATION OF, INTER ALIA, THE PROVISIONS OF THIS LETTER AGREEMENT.

 

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LA16-17

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

If the foregoing correctly sets forth your understanding, please execute the
original and one (1) copy hereof in the space provided below.

 

Very truly yours,

 

 

 

AIRBUS S.A.S.

 

 

 

 

 

By:

 

 

 

 

 

Its:

 

 

 

 

 

 

Accepted and Agreed

 

 

 

Hawaiian Airlines, Inc.

 

 

 

By:

 

 

 

 

 

 

Its:

 

 

 

 

 

 

and

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

Its:

 

 

 

 

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LA16-18

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Hawaiian Airlines, Inc. [...***...] Letter Agreement

 

[...***...]

 

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LA16-19

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