| A319/A320      – CSN – Amdt.5 – 06/07 |           |
|---------------------------------------------------------|----------------|
| AI/CC-C      No.337.0052/07                             | Page      1/13 |

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| A319/A320      – CSN – Amdt.5 – 06/07 |           |
|---------------------------------------------------------|----------------|
| AI/CC-C      No.337.0052/07                             | Page      2/13 |

----

|   | - | The      parties hereto have signed on the 9th day of April 2004 an A319/A320      purchase agreement (Buyer's Reference No. 04HMB0101FR) for the sale of a      certain number of A319 Aircraft and A320 Aircraft, collectively referred      to as the "Aircraft", which, together with its Exhibits and Letter      Agreements is hereinafter called the “Purchase  Agreement” |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      parties hereto have signed an amendment No.1 to the Purchase Agreement      dated as of the 11th November 2004, an amendment No.2 to the Purchase      Agreement dated as of the 3rd      December 2004 and an amendment No.3 to the Purchase Agreement dated as of      the 30th June 2005. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      parties hereto have signed on 6th      day of July 2006 an amendment No.4 to the Purchase Agreement (the      “Amendment No.4”) to cover the sale and purchase of a certain number of      A320 family aircraft, collectively referred to as the “Fifty      Aircraft”. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      Purchase Agreement, together with the amendments listed here above and the      Amendment No.4 is hereinafter collectively referred to as the      “Agreement”. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | On      the 26th      day of October 2006, the Seller and China Aviation Supplies Import and      Export Corporation (“CASC”) have entered into a General Term Agreement for      the sale and purchase of one hundred fifty (150) A320 family aircraft (the      “2006 GTA”). As part of the 2006 GTA, twenty (20) A320 family aircraft      (the “Additional Aircraft”) have been allocated to the    Buyer. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Capitalized      terms used herein and not otherwise defined in this Amendment No.5 shall      have the meanings assigned thereto in the  Agreement. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 06/07 |           |
|---------------------------------------------------------|----------------|
| AI/CC-C      No.337.0052/07                             | Page      3/13 |

----

|   | With      respect to the Additional Aircraft, the parties hereto agree that the      Airline shall hereinafter be solely referred to as the "Buyer" and the      Trading Company shall be a consenting party to the agreement (the,      ”Consenting Party”). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Buyer and the Seller agree that the terms and conditions of the sale and      purchase of the Additional Aircraft shall be the same as those applying to      the Fifty Aircraft described in Amendment No.4, except as expressly set      forth to the contrary in this AmendmentNo.5. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      following paragraphs will define the specific amendments to the Agreement      which will apply only to the Additional  Aircraft. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 06/07 |           |
|---------------------------------------------------------|----------------|
| AI/CC-C      No.337.0052/07                             | Page      4/13 |

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| A319/A320      – CSN – Amdt.5 – 06/07 |           |
|---------------------------------------------------------|----------------|
| AI/CC-C      No.337.0052/07                             | Page      5/13 |

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| 3. | PRICES |
|----|--------|

| 3.1 | Additional      A319 Aircraft Price |
|-----|-------------------------------------|

|  | 3.1 | A319      Aircraft Basic Price |
|--|-----|--------------------------------|

|  | 3.1.1 | The      Airframe Basic Price is the sumof: |
|--|-------|---------------------------------------------|

|   | (i) | the      Basic Price of the Airframe corresponding to the Standard Specification      including Nacelles and Thrust Reversers, and excluding Buyer Furnished      Equipment, which is: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   | US$      *** |
|--|--------|--------------|

|   | (ii) | the      budget sum of the  basic prices of all SCNs which is      : |
|--------|------|--------------------------------------------------------------------------------|

|  |   | US$      *** |
|--|--------|--------------|

|   | *** |
|--------|-----|

|   | 3.1.2.1 | *** |
|--------|---------|-----|

|   | 3.1.3 | A319      Aircraft Propulsion Systems BasicPrice |
|--------|-------|--------------------------------------------------|

|   | 3.1.3.1 | CFM      INTERNATIONAL Propulsion Systems |
|--------|---------|-------------------------------------------|

|   | The      Basic Price of a set of two (2) CFM INTERNATIONAL CFM56-5B5/P Engines      is: |
|--------|-----------------------------------------------------------------------------------------|

|   | US$      *** |
|--------|--------------|

|  | 3.1.3.2 | INTERNATIONAL      AERO ENGINES Propulsion Systems |
|--|---------|----------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 06/07 |           |
|---------------------------------------------------------|----------------|
| AI/CC-C      No.337.0052/07                             | Page      6/13 |

----

|  |   | USD      *** |
|--|--------|--------------|

| 3.2 | Additional      A320 Aircraft Price |
|-----|-------------------------------------|

|  | 3.2 | Additional      A320 Basic Price |
|--|-----|----------------------------------|

|   | *** |
|--------|-----|

|   | 3.2.3 | Additional      A320 Propulsion Systems Basic Price |
|--------|-------|-----------------------------------------------------|

|   | 3.2.3.1 | CFM      INTERNATIONAL Propulsion Systems |
|--------|---------|-------------------------------------------|

|   | The      Basic Price of a set of two (2) CFM INTERNATIONAL CFM56-5B4/P Engines      is: |
|--------|-----------------------------------------------------------------------------------------|

|   | 3.2.3.2 | INTERNATIONAL      AERO ENGINES Propulsion Systems |
|--------|---------|----------------------------------------------------|

| 3.3 | Additional      A321 Aircraft Price |
|-----|-------------------------------------|

| A319/A320      – CSN – Amdt.5 – 06/07 |           |
|---------------------------------------------------------|----------------|
| AI/CC-C      No.337.0052/07                             | Page      7/13 |

----

|  | 3.3 | A321      Aircraft Basic Price |
|--|-----|--------------------------------|

|   | 3.3.1 | *** |
|--------|-------|-----|

|   | 3.3.3 | A321      Aircraft Propulsion Systems BasicPrice |
|--------|-------|--------------------------------------------------|

|   | 3.3.3.1 | CFM      INTERNATIONAL Propulsion Systems |
|--------|---------|-------------------------------------------|

|   | The      Basic Price of a set of two (2) CFM INTERNATIONAL CFM56-5B3/P Engines      is: |
|--------|-----------------------------------------------------------------------------------------|

|  | 3.3.3.2 | INTERNATIONAL      AERO ENGINES Propulsion Systems |
|--|---------|----------------------------------------------------|

|  3.4 | Final      Price |
|-----------|------------------|

|   | The      parties agree that, with respect to the Additional Aircraft, Sub-Clause      3.3 of the Agreement shall apply with the Airframe Price Revision Formula      and the Prposulsion Systems Price Formula as set forth in Appendix 1, 2      and 3 to this Amendment. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | PREDELIVERY      PAYMENTS |
|----|---------------------------|

|   | The      parties agree that, with respect to the Additional Aircraft, sub-Clause      5.3.1 and 5.3.2 of the Agreement shall not be applicable and shall be      replaced by the following: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | *** |
|----|-----|

| A319/A320      – CSN – Amdt.5 – 06/07 |           |
|---------------------------------------------------------|----------------|
| AI/CC-C      No.337.0052/07                             | Page      8/13 |

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| 6. | DELIVERY      DATES |
|----|---------------------|

| A319      Aircraft | 1      | March      2009 |
|--------------------|--------|-----------------|
| A319      Aircraft | 2      | ***             |
| A319      Aircraft | 3      | ***             |
| A319      Aircraft | 4      | ***             |
| A319      Aircraft | 5      | ***             |
|               |   |            |
| A320      Aircraft | 1      | ***             |
| A320      Aircraft | 2      | ***             |
| A320      Aircraft | 3      | ***             |
| A320      Aircraft | 4      | ***             |
| A320      Aircraft | 5      | ***             |
| A320      Aircraft | 6      | ***             |
| A320      Aircraft | 7      | ***             |
| A320      Aircraft | 8      | ***             |
| A320      Aircraft | 9      | ***             |
| A320      Aircraft | 10     | ***             |

| A319/A320      – CSN – Amdt.5 – 06/07 |           |
|---------------------------------------------------------|----------------|
| AI/CC-C      No.337.0052/07                             | Page      9/13 |

----

| A321Aircraft       | 1      | ***              |
|--------------------|--------|------------------|
| A321      Aircraft | 2      | ***              |
| A321      Aircraft | 3      | ***              |
| A321      Aircraft | 4      | ***              |
| A321      Aircraft | 5      | August      2010 |
|               |   |             |
| TOTAL              | 20     |             |

| 7 | CUSTOMER      SUPPORT |
|---|-----------------------|

| 7.1 | Seller      Representatives |
|-----|-----------------------------|

| 7.2 | Training      and Training Aids |
|-----|---------------------------------|

|   | - | ***      Airbus CBT (flight and/or maintenance) related to the Aircraft type(s) of      the Additional Aircraft (including *** of CBT Courseware and *** of CBT      Software for flight and *** of CBT Courseware and *** of CBT Software for      maintenance, as applicable). The detailed description of the Airbus CBT      shall be provided to the Buyer at the Training  Conference; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | ***      Virtual Aircraft (Walk around and Component Location) related to the      Aircraft type (s) of the AdditionalAircraft. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------|

|  | - | ***      of training documentation onCD-ROM. |
|--|---|----------------------------------------------|

|  | -  | ***      CD-ROM of cockpit panels fortraining. |
|--|---------|------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 06/07 |            |
|---------------------------------------------------------|-----------------|
| AI/CC-C      No.337.0052/07                             | Page      10/13 |

----

| 7.3  | Revision      Service |
|-----------|-----------------------|

| 7.4  | Material      Supply and Services |
|-----------|-----------------------------------|

|   | 7.4.1 | *** |
|--------|-------|-----|

|   | 7.4.2 | *** |
|--------|-------|-----|

| 8.  | *** |
|----------|-----|

| A319/A320      – CSN – Amdt.5 – 06/07 |            |
|---------------------------------------------------------|-----------------|
| AI/CC-C      No.337.0052/07                             | Page      11/13 |

----

| 9.  | Miscellanious |
|----------|---------------|

| 10.  | AMENDMENT      ENTRY-INTO-EFFECT |
|-----------|----------------------------------|

| 11.  | PROVISIONS      OF THE AMENDMENT |
|-----------|----------------------------------|

| A319/A320      – CSN – Amdt.5 – 06/07 |            |
|---------------------------------------------------------|-----------------|
| AI/CC-C      No.337.0052/07                             | Page      12/13 |

----

| Agreed      and Accepted                    | Agreed      and Accepted                              |
|---------------------------------------------|-------------------------------------------------------|
| For      and on behalf of:                  | For      and on behalf of:                            |
|                                        |                                                  |
| CHINA      SOUTHERN AIRLINES                | AIRBUS      S.A.S.                                    |
| COMPANY      LIMITED                        |                                                  |
|                                        |                                                  |
| By      :                                   |       /s/ Xu      Jiebo |   | By: | /s/ Christophe Mourey |
|                                        |                                                  |   |
| Name:                                       | Xu      Jiebo                                         | Name:      Christophe Mourey |
|                                        |                                                  |   |
| Title:                                      |                                                  |   | Title:      Senior Vice President Contracts |
|                                        |                                                  |
| Agreed      and Accepted                    |                                                  |
| For      and on behalf of                   |                                                  |
|                                        |                                                  |
| CHINA      SOUTHERN AIRLINES (GROUP) IMPORT |                                                  |
| AND      EXPORT TRADING CORPORATION         |                                                  |
|                                        |                                                  |
| By:                                         | /s/ Zeng Zixiang                                      |   |   |
| Name:                                       | Zeng      Zixiang                                     |   |
|                                        |                                                  |   |
| Title:                                      |                                                  |   |   |

| A319/A320      – CSN – Amdt.5 – 06/07 |            |
|---------------------------------------------------------|-----------------|
| AI/CC-C      No.337.0052/07                             | Page      13/13 |

----

| 1.1 | Basic      Prices |
|-----|-------------------|

| 1.2 | Base      Period |
|-----|------------------|

| 1.3 | Indexes |
|-----|---------|

| A319/A320      – CSN – Amdt.5 – 05/07 |            |          |
|---------------------------------------------------------|-----------------|---------------|
| AI/CC-C      No.337.0052/07                             | Appendix      1 | Page      1/3 |

----

| 1.4  | Revision      Formula |
|-----------|-----------------------|

|   | *** |
|--------|-----|

| A319/A320      – CSN – Amdt.5 – 05/07 |            |          |
|---------------------------------------------------------|-----------------|---------------|
| AI/CC-C      No.337.0052/07                             | Appendix      1 | Page      2/3 |

----

| 1.5 | General      Provisions |
|-----|-------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |            |          |
|---------------------------------------------------------|-----------------|---------------|
| AI/CC-C      No.337.0052/07                             | Appendix      1 | Page      3/3 |

----

|   | APPENDIX      2 |
|--------|-----------------|

|   | CFM      INTERNATIONAL PRICE REVISIONFORMULA |
|--------|----------------------------------------------|

| 1 | Reference      Price of the Engines |
|---|-------------------------------------|

| 2 | Reference      Period |
|---|-----------------------|

| 3 | Indexes |
|---|---------|

| A319/A320      – CSN – Amdt.5 – 05/07 |            |          |
|---------------------------------------------------------|-----------------|---------------|
| AI/CC-C      No.337.0052/07                             | Appendix      2 | Page      1/3 |

----

|  4 | Revision      Formula |
|---------|-----------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |            |          |
|---------------------------------------------------------|-----------------|---------------|
| AI/CC-C      No.337.0052/07                             | Appendix      2 | Page      2/3 |

----

| 5 | General      Provisions |
|---|-------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |            |          |
|---------------------------------------------------------|-----------------|---------------|
| AI/CC-C      No.337.0052/07                             | Appendix      2 | Page      3/3 |

----

| 1 | Engines      *** |
|---|------------------|

| 2 | Reference      Period |
|---|-----------------------|

| 3 | Indexes |
|---|---------|

| A319/A320      – CSN – Amdt.5 – 05/07 |            |          |
|---------------------------------------------------------|-----------------|---------------|
| AI/CC-C      No.337.0052/07                             | Appendix      3 | Page      1/3 |

----

| 4 | Revision      Formula |
|---|-----------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |            |     |
|---------------------------------------------------------|-----------------|----------|
| AI/CC-C      No.337.0052/07                             | Appendix      3 | Page 2/3 |

----

| 5 | General      Provisions |
|---|-------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |            |     |
|---------------------------------------------------------|-----------------|----------|
| AI/CC-C      No.337.0052/07                             | Appendix      3 | Page 3/3 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |   |     |
|---------------------------------------------------------|--------|----------|
| AI/CC-C      No.337.0052/07                             | LA1    | Page 1/6 |

----

| 1. | Definitions |
|----|-------------|

| (a)                                   |   | QUOTE                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Export      Airworthiness Certificate |   | means      an export certificate of airworthiness or an equivalent document issued by      a European Aviation Authority.                                                                                                                                                                                                                                                                                                                                             |
|                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Business      Day                     |   | means      a day, other than a Saturday or Sunday, on which business of the kind      contemplated by this Agreement is carried on in France, in Germany, in the      People’s Republic of China and in the Buyer's country or, where used in      relation to a payment, which is a day on which banks are open for business      in France, in Germany, in the People’s Republic of China, in the Buyer's      country and in New York, as appropriate. |
|                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Delivery      Location                |   | means      the European Delivery Location or the Chinese Delivery Location, as      applicable.                                                                                                                                                                                                                                                                                                                                                                       |

| European      Delivery Location |   | means      the facilities of the Seller at the location of final assembly of the      Aircraft in Toulouse, France or in Hamburg, Germany. |
|---------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                            |   |                                                                                                                                       |
| Chinese      Delivery Location  |   | means      the Seller's (planned) facility in Tianjin, People's Republic of      China.                                                    |

| A319/A320      – CSN – Amdt.5 – 05/07 |   |     |
|---------------------------------------------------------|--------|----------|
| AI/CC-C      No.337.0052/07                             | LA1    | Page 2/6 |

----

| 2. | Taxes |
|----|-------|

| 3. | Certification |
|----|---------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |   |     |
|---------------------------------------------------------|--------|----------|
| AI/CC-C      No.337.0052/07                             | LA1    | Page 3/6 |

----

| 4.  | Buyer      Furnished Equipment |
|----------|--------------------------------|

|  | 18.1.3 | The      BFE shall be imported into FRANCE or into the FEDERAL REPUBLIC OF GERMANY      or into the PEOPLE’S REPUBLIC OF CHINA by the Buyer under a suspensive      customs system ("Régime de l'entrepôt douanier ou régime de      perfectionnement actif or "Zollverschluss" or “Inward processing”) without      application of any French or German tax or Chinese customs duty, and shall      be Delivered Duty Unpaid (DDU) according to the Incoterms      definition. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Assignments      and transfers |
|----|--------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |   |     |
|---------------------------------------------------------|--------|----------|
| AI/CC-C      No.337.0052/07                             | LA1    | Page 4/6 |

----

| 6. | Certificate      of Acceptance |
|----|--------------------------------|

| 7. | Assignment |
|----|------------|

| 8. | Confidentiality |
|----|-----------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |   |     |
|---------------------------------------------------------|--------|----------|
| AI/CC-C      No.337.0052/07                             | LA1    | Page 5/6 |

----

| Agreed      and Accepted     | Agreed      and Accepted           |
|------------------------------|------------------------------------|
|                         |                               |   |
| For      and on behalf of    | For      and on behalf of          |
|                         |                               |   |
| CHINA      SOUTHERN AIRLINES | AIRBUS      S.A.S.                 |
| COMPANY      LIMITED         |                               |   |
|                         |                               |   |
| By      :                    | /s/ Xu Jiebo                       |   | By: | /s/ Christophe Mourey |
|                         |                               |
| Name:      Xu Jiebo          | Name:       Christophe Mourey |
|                         |                               |
| Title:                       |                               |   | Title:    Senior      Vice PresidentContracts |

| By:                          | /s/ Zeng Zixiang |
|------------------------------|------------------|
| Name: Zeng      Zixiang |
|                         |             |
| Title:                       |             |

| A319/A320      – CSN – Amdt.5 – 05/07 |   |     |
|---------------------------------------------------------|--------|----------|
| AI/CC-C      No.337.0052/07                             | LA1    | Page 6/6 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |                        |     |
|---------------------------------------------------------|-----------------------------|----------|
| AI/CC-C      No.337.0052/07                             | Letter      Agreement No. 2 | Page 1/2 |

----

| Agreed      and Accepted     |         | Agreed      and Accepted                |
|------------------------------|--------------|-----------------------------------------|
|                         |         |                                    |   |
| For      and on behalf of    |         | For      and on behalf of               |
|                         |         |                                    |   |
| CHINA      SOUTHERN AIRLINES |         | AIRBUS      S.A.S.                      |
| COMPANY      LIMITED         |         |                                    |   |
|                         |         |                                    |   |
| By      :                    | /s/ Xu Jiebo |                                    | By: | /s/ Christophe Mourey |
|                         |         |                                    |   |
| Name: Xu      Jiebo     |         | Name:       Christophe      Mourey |
|                         |         |                                    |
| Title:                       |    |                                    | Title:         Senior Vice PresidentContracts |

| By:                          | /s/ Zeng Zixiang |
|------------------------------|------------------|
| Name: Zeng      Zixiang |
|                         |             |
| Title:                       |             |

| A319/A320      – CSN – Amdt.5 – 05/07 |                        |     |
|---------------------------------------------------------|-----------------------------|----------|
| AI/CC-C      No.337.0052/07                             | Letter      Agreement No. 2 | Page 2/2 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |                   |     |
|---------------------------------------------------------|------------------------|----------|
| AI/CC-C      No.337.0052/07                             | Side      Letter No. 1 | Page 1/2 |

----

| Agreed      and Accepted     |         |            Agreed      and Accepted  |
|------------------------------|--------------|---------------------------------------------------------------------------------------------|
|                         |         |                                                                                        |   |
| For      and on behalf of    |         |            For      and on behalf of |
|                         |         |                                                                                        |   |
| CHINA      SOUTHERN AIRLINES |         |            AIRBUS      S.A.S.        |
| COMPANY      LIMITED         |         |                                                                                        |   |
|                         |         |                                                                                        |   |   |
| By      :                    | /s/ Xu Jiebo |                                                                                        | By: | /s/ Christophe Mourey |
|                         |         |                                                                                        |
| Name: Xu      Jiebo     |         | Name:        Christophe Mourey                                                    |
|                         |         |                                                                                        |
| Title:                  |         |                                                                                        | Title:          Senior Vice PresidentContracts |

| By:                          | /s/ Zeng Zixiang |
|------------------------------|------------------|
| Name: Zeng      Zixiang |
|                         |             |
| Title:                       |             |

| A319/A320      – CSN – Amdt.5 – 05/07 |                   |     |
|---------------------------------------------------------|------------------------|----------|
| AI/CC-C      No.337.0052/07                             | Side      Letter No. 1 | Page 2/2 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |                   |     |
|---------------------------------------------------------|------------------------|----------|
| AI/CC-C      No.337.0052/07                             | Side      Letter No. 2 | Page 1/2 |

----

| Agreed      and Accepted     |         |            Agreed      and Accepted  |
|------------------------------|--------------|---------------------------------------------------------------------------------------------|
|                         |         |                                                                                        |
| For      and on behalf of    |         |            For      and on behalf of |
|                         |         |                                                                                        |
| CHINA      SOUTHERN AIRLINES |         |            AIRBUS      S.A.S.        |
| COMPANY      LIMITED         |         |                                                                                        |
|                         |         |                                                                                        |   |
| By      :                    | /s/ Xu Jiebo |                                                                                        | By: | /s/ Christophe Mourey |
|                         |         |                                                                                        |
| Name: Xu      Jiebo     |         | Name:       Christophe Mourey                                                          |
|                         |         |                                                                                        |
| Title:                       |         |                                                                                        | Title:         Senior Vice PresidentContracts |

| By:                          | /s/ Zeng Zixiang |
|------------------------------|------------------|
| Name: Zeng      Zixiang |
|                         |             |
| Title:                       |             |

| A319/A320      – CSN – Amdt.5 – 05/07 |                   |     |
|---------------------------------------------------------|------------------------|----------|
| AI/CC-C      No.337.0052/07                             | Side      Letter No. 2 | Page 2/2 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |                   |     |
|---------------------------------------------------------|------------------------|----------|
| AI/CC-C      No.337.0052/07                             | Side      Letter No. 3 | Page 1/2 |

----

| Agreed      and Accepted     |         |            Agreed      and Accepted  |
|------------------------------|--------------|---------------------------------------------------------------------------------------------|
|                         |         |                                                                                        |
| For      and on behalf of    |         |            For      and on behalf of |
|                         |         |                                                                                        |
| CHINA      SOUTHERN AIRLINES |         |            AIRBUS      S.A.S.        |
| COMPANY      LIMITED         |         |                                                                                        |   |
|                         |         |                                                                                        |   |   |
| By      :                    | /s/ Xu Jiebo |                                                                                        | By: | /s/ Christophe Mourey |
|                         |         |                                                                                        |
| Name: Xu      Jiebo     |         | Name:       Christophe Mourey                                                          |
|                         |         |                                                                                        |
| Title:                       |         |                                                                                        | Title:    Senior      Vice PresidentContracts |

| By:                          | /s/ Zeng Zixiang |
|------------------------------|------------------|
| Name: Zeng      Zixiang |
|                         |             |
| Title:                       |             |

| A319/A320      – CSN – Amdt.5 – 05/07 |                   |     |
|---------------------------------------------------------|------------------------|----------|
| AI/CC-C      No.337.0052/07                             | Side      Letter No. 3 | Page 2/2 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |           |     |
|---------------------------------------------------------|----------------|----------|
| AI/CC-C      No.337.0052/07                             | Exhibit      A | Page 1/1 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |           |     |
|---------------------------------------------------------|----------------|----------|
| AI/CC-C      No.337.0052/07                             | Exhibit      B | Page 1/1 |

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| AIRBUS      INDUSTRIE SPECIFICATION CHANGE NOTICE(SCN) | SCN      NumberIssueDatedPage |
|--------------------------------------------------------|-------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |           |     |
|---------------------------------------------------------|----------------|----------|
| AI/CC-C      No.337.0052/07                             | Exhibit      B | Page 1/4 |

----

| AIRBUS      INDUSTRIE SPECIFICATION CHANGE NOTICE(SCN) | SCN      NumberIssueDatedPage |
|--------------------------------------------------------|-------------------------------|

| Buyer      approval | Seller      approval |
|---------------------|----------------------|
|                |                 |
| By...:          | By...:           |
|                |                 |
| Date...:        | Date...:         |

| A319/A320      – CSN – Amdt.5 – 05/07 |           |     |
|---------------------------------------------------------|----------------|----------|
| AI/CC-C      No.337.0052/07                             | Exhibit      B | Page 2/4 |

----

| AIRBUS      INDUSTRIE SPECIFICATION CHANGE NOTICE(SCN) | SCN      NumberIssueDatedPage |
|--------------------------------------------------------|-------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |           |     |
|---------------------------------------------------------|----------------|----------|
| AI/CC-C      No.337.0052/07                             | Exhibit      B | Page 3/4 |

----

| PART      1 | AIRFRAME PRICE      REVISION FORMULA |
|-------------|--------------------------------------|

| 1 | Basic      Prices |
|---|-------------------|

| 2 | Base      Period |
|---|------------------|

| 3 | Indexes |
|---|---------|

| A319/A320      – CSN – Amdt.5 – 05/07 |           |     |
|---------------------------------------------------------|----------------|----------|
| AI/CC-C      No.337.0052/07                             | Exhibit      B | Page 4/4 |

----

| PART      1 | AIRFRAME PRICE      REVISION FORMULA |
|-------------|--------------------------------------|

| 4 | Revision      Formula |
|---|-----------------------|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      C | Page 1/2 |

----

|   | EXHIBIT      C |
|--------|----------------|

| PART      1 | AIRFRAME PRICE      REVISION FORMULA |
|-------------|--------------------------------------|

| 5 | General      Provisions |
|---|-------------------------|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      C | Page 2/2 |

----

| 1 | Reference Price of the      Engines |
|---|-------------------------------------|

| 2 | Reference      Period |
|---|-----------------------|

| 3 | Indexes |
|---|---------|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      C-2 | Page 1/3 |

----

| 4 | Revision      Formula |
|---|-----------------------|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      C-2 | Page 2/3 |

----

| 5 | General      Provisions |
|---|-------------------------|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      C-2 | Page 3/3 |

----

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      D | Page 1/1 |

----

| AIRFRAME:                                                                                     |   | ENGINES:                                                                                   |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
|                                                                                          |   |                                                                                       |
| AIRBUS      Model A3[   ]                                                      |   | [EM’s      name] Model      [         ] |
|                                                                                          |   |                                                                                       |
| MANUFACTURER'S                                                                                |   | ENGINE      SERIAL NUMBERS:                                                                |
| SERIAL      NUMBER:   [         ] |   | LH:  [         ]                    |
|                                                                                          |   | RH:      [         ]                          |

| AIRBUS      SNC |   |
|-----------------|--------|
|            |   |
| By:             |   |
|            |   |
| Title:          |   |
|            |   |
| Signature:      |   |

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      E | Page 1/1 |

----

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      F - 1/4 |   |

----

| 1 | The      Items covered by the Service Life Policy pursuant to Clause 12.2 are those      Seller Items of primary and auxiliary structure described      hereunder. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | *** |
|--------|-----|

| 2.1 | *** |
|-----|-----|

| 2.2 | *** |
|-----|-----|

| 2.3 | *** |
|-----|-----|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      F - 2/4 |   |

----

| 2.4 | *** |
|-----|-----|

| 3 | *** |
|---|-----|

| 3.1 | *** |
|-----|-----|

| 3.2 | *** |
|-----|-----|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      F - 3/4 |   |

----

| 4 | *** |
|---|-----|

| 4.1 | *** |
|-----|-----|

| 4.2 | *** |
|-----|-----|

| 5 | *** |
|---|-----|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit      F - 4/4 |   |

----

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   |  | Exhibit G      - 1/11 |

----

| NOMENCLATURE                      | Self-explanatory. |
|-----------------------------------|-------------------|
|                              |              |
| ABBREVIATED DESIGNATION    (Abbr) | Self-explanatory. |

| OL-A | ON-LINE      through Airbus On-Line Services: Advanced Consultation and Navigation      System |
|------|------------------------------------------------------------------------------------------------|

| CD-A | CD-ROM:      Advanced Consultation and NavigationSystem |
|------|---------------------------------------------------------|

| CD-P | CD-ROM:      in PDF – Portable Document Format |
|------|------------------------------------------------------|

| D | DISKETTE      (Floppy Disk) |
|---|-----------------------------|

| DD | DIGITAL      DATA. Stands generally for SGML format on  CD-ROM. |
|----|-----------------------------------------------------------------|

| DVD | DVD      - Digital Versatile Disk |
|-----|-----------------------------------|

| P1 | PRINTED      ONE SIDE. Refers to manuals in paper with print on one (1) side of the      sheets only. |
|----|-------------------------------------------------------------------------------------------------------|

| P2 | PRINTED      BOTH SIDES. Refers to manuals with print on both sides of the      sheets. |
|----|-----------------------------------------------------------------------------------------|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   |  | Exhibit G      - 2/11 |

----

| TYPE | C | CUSTOMIZED.      Refers to manuals that are applicable to an individual Airbus      customer/operator fleet oraircraft. |
|------|---|-------------------------------------------------------------------------------------------------------------------------|

|   | G | GENERIC.      Refers to manuals that are for all aircraft      types/models/series. |
|--------|---|-------------------------------------------------------------------------------------|

|   | E | ENVELOPE.      Refers to manuals that are applicable to a whole group of Airbus customers      for a specific aircrafttype/model/series. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------|

|   | P | PRELIMINARY.      Refers to preliminary data or manuals which may consist of      either: |
|--------|---|-------------------------------------------------------------------------------------------|

|   | - | one-time      issue not maintained by revision service,or |
|--------|---|-----------------------------------------------------------|

|   | - | preliminary      issues maintained by revision service until final manual or data delivery,      or |
|--------|---|-----------------------------------------------------------------------------------------------------|

|   | - | supply      of best available data under final format with progressive completion      through revision service. |
|--------|---|------------------------------------------------------------------------------------------------------------------|

| ATA | Manuals      established in general compliance with ATA 100 Revision 23 and digital      Standards established in general compliance with ATA Specification 2200      (iSpec 2200), Information Standards for Aviation    Maintenance. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| QUANTITY      (Qty) | 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 deliveryday. |
|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   |  | Exhibit G      - 3/11 |

----

| NOMENCLATURE                         |         | Abbr   |         | Form   |         | Type   |         | ATA    |         | Qty    |         | Deliv  |         | Comments                                                                                                                                                                                                                   |
|--------------------------------------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| OPERATIONAL      MANUALS AND DATA    |         |   |         |   |         |   |         |   |         |   |         |   |         |                                                                                                                                                                                                                       |
| Flight      Crew Operating Manual    |         | FCOM   |         | P2     |         | C      |         | NO     |         | ***    |         | ***    |         | ***      per Aircraft at delivery.                                                                                                                                                                                         |
|                                 |         | FCOM   |         | CD-A   |         | C      |         | NO     |         | ***    |         | ***    |         |                                                                                                                                                                                                                       |
|                                 |         | FCOM   |         | OL-A   |         | C      |         | NO     |         | ***    |         | ***    |         | Consultation      only                                                                                                                                                                                                     |
| Flight      Manual                   |         | FM     |         | P1     |         | C      |         | NO     |         | ***    |         | ***    |         | ***      per Aircraft at delivery.                                                                                                                                                                                         |
| Master      Minimum Equipment List   |         | MMEL   |         | P2     |         | C      |         | NO     |         | ***    |         | ***    |         | ***      per Aircraft at delivery.                                                                                                                                                                                         |
| Quick      Reference Handbook        |         | QRH    |         | P2     |         | C      |         | NO     |         | ***    |         | ***    |         | ***      per Aircraft at delivery.                                                                                                                                                                                         |
| Trim      Sheet                      |         | TS     |         | DD     |         | C      |         | NO     |         | ***    |         | ***    |         |                                                                                                                                                                                                                       |
| Weight      and Balance Manual       |         | WBM    |         | P1     |         | C      |         | YES    |         | ***    |         | ***    |         | For      the WBM the flight deck copy is an advance copy only of the      customized  manual, not subject to revision or updating.      Weighing Equipment List delivered two weeks after Aircraft      delivery |
| Performance      Engineer's Programs |         | PEP    |         | CD-A   |         | C      |         | NO     |         | ***    |         | ***    |         |                                                                                                                                                                                                                       |
|                                 |         | PEP    |         | OL-A   |         | C      |         | NO     |         | ***    |         | ***    |         |                                                                                                                                                                                                                       |
| Performance      Programs Manual     |    | PPM    |    | CD-A   |    | C      |    | NO     |    | ***    |    | ***    |    | Included      in the PEPCD-ROM                                                                                                                                                                                             |

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit G      - 4/11 |   |

----

| NOMENCLATURE                                                               |         | Abbr     |         | Form   |         | Type   |         | ATA    |         | Qty    |         | Deliv  |         | Comments                                                                                                                                                                  |
|----------------------------------------------------------------------------|--------------|----------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| MAINTENANCE      AND ASSOCIATED MANUALS                                    |         |     |         |   |         |   |         |   |         |   |         |   |         |                                                                                                                                                                      |
| Aircraft      Maintenance Manual                                           |         | AMM      |         | DVD    |         | C      |         | YES    |         | ***    |         | ***    |         | Contained      on Basic AirN@v for SA and LR Aircraft (Limited to *** copies per      customization)                                                                      |
|                                                                       |         | AMM      |         | CD-P   |         | C      |         | YES    |         | ***    |         | ***    |         |                                                                                                                                                                      |
|                                                                       |         | AMM      |         | DD     |         | C      |         | YES    |         | ***    |         | ***    |         | SGML      data for further processing by the Buyer                                                                                                                        |
| Aircraft      Schematics Manual                                            |         | ASM      |         | CD-P   |         | C      |         | YES    |         | ***    |         | ***    |         |                                                                                                                                                                      |
|                                                                       |         | ASM      |         | DVD    |         | C      |         | YES    |         | ***    |         | ***    |         | AirN@v      option                                                                                                                                                        |
|                                                                       |         | ASM      |         | DD     |         | C      |         | YES    |         | ***    |         | ***    |         | SGML      data for further processing by the Buyer                                                                                                                        |
| Aircraft      Wiring Lists                                                 |         | AWL      |         | CD-P   |         | C      |         | YES    |         | ***    |         | ***    |         |                                                                                                                                                                      |
|                                                                       |         | AWL      |         | DD     |         | C      |         | YES    |         | ***    |         | ***    |         | AirN@v      option                                                                                                                                                        |
|                                                                       |         | AWL      |         | DD     |         | C      |         | YES    |         | ***    |         | ***    |         | SGML      data for further processing by the Buyer                                                                                                                        |
| Aircraft      Wiring Manual                                                |         | AWM      |         | CD-P   |         | C      |         | YES    |         | ***    |         | ***    |         |                                                                                                                                                                      |
|                                                                       |         | AWM      |         | DVD    |         | C      |         | YES    |         | ***    |         | ***    |         | SGML      data for further processing by the Buyer                                                                                                                        |
| Component      Location Manual                                             |         | CLM      |         | CD-P   |         | C      |         | NO     |         | ***    |         | ***    |         | For      SA and LR Aircraft                                                                                                                                               |
| Consumable      Material List                                              |         | CML      |         | CD-P   |         | G      |         | YES    |         | ***    |         | ***    |         |                                                                                                                                                                      |
| Duct      Repair Manual                                                    |         | DRM      |         | CD-P   |         | E      |         | NO     |         | ***    |         | ***    |         |                                                                                                                                                                      |
| Ecam      System Logic Data                                                |         | ESLD     |         | CD-P   |         | E      |         | NO     |         | ***    |         | ***    |         | For      SA and LR Aircraft                                                                                                                                               |
| Electrical      Load Analysis                                              |         | ELA      |         | CD-P   |         | C      |         | NO     |         | ***    |         | ***    |         | For      first delivered Aircraft                                                                                                                                         |
| Electrical      Standard Practices Manual                                  |         | ESPM     |         | CD-P   |         | G      |         | YES    |         | ***    |         | ***    |         |                                                                                                                                                                      |
|                                                                       |         | ESPM     |         | DVD    |         | G      |         | YES    |         | ***    |         | ***    |         | AirN@v      option                                                                                                                                                        |
|                                                                       |         | ESPM     |         | DD     |         | G      |         | YES    |         | ***    |         | ***    |         | SGML      data for further processing by the Buyer                                                                                                                        |
| Electrical      Standard Practices booklet                                 |         | ESP      |         | P2     |         | G      |         | NO     |         | ***    |         | ***    |         |                                                                                                                                                                      |
| Flight      Data Recording Parameter Library                               |         | FDRPL    |         | CD-A   |         | E      |         | NO     |         | ***    |         | ***    |         | For      SA and LR Aircraft                                                                                                                                               |
| Fuel      Pipe Repair Manual                                               |         | FPRM     |         | P2     |         | G      |         | NO     |         | ***    |         | ***    |         |                                                                                                                                                                      |
| Illustrated      Parts Catalog (Airframe)/Additional Cross Reference Table |         | IPC/ACRT |         | DVD    |         | C      |         | YES    |         | ***    |         | ***    |         | Contained      on  Basic AirN@v for SA and LR Aircraft (Limited to 3 copies per      customization)                                                             |
|                                                                       |         | IPC/ACRT |         | CD-P   |         | C      |         | YES    |         | ***    |         | ***    |         |                                                                                                                                                                      |
|                                                                       |    | IPC/ACRT |    | DD     |    | C      |    | YES    |    | ***    |    | ***    |    | Issue      date to be coordinated with Initial Provisioning Data delivery included in      EXHIBIT "H" Spare Parts Procurement. Useful for SGML data processing      only |

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit G      - 5/11 |   |

----

| NOMENCLATURE                                 |         | Abbr   |         | Form   |         | Type   |         | ATA    |         | Qty    |         | Deliv  |         | Comments                                                                                                                                                                                                                                                             |
|----------------------------------------------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| MAINTENANCE      AND ASSOCIATED MANUALS      |         |   |         |   |         |   |         |   |         |   |         |   |         |                                                                                                                                                                                                                                                                 |
| Illustrated      Parts Catalog (Power Plant) |         | PIPC   |         | CD-P   |         | C      |         | NO     |         | ***    |         | ***    |         | Integrated      in the Airframe IPC for SA and LR Aircraft for IAE engines (SA Aircraft)      and Rolls Royce engines (A340 Aircraft).For      other Aircraft and engine types, supplied by Propulsion Systems      Manufacturer concurrently with the Airframe IPC. |
| Maintenance      Facility Planning           |         | MFP    |         | CD-P   |         | E      |         | NO     |         | ***    |         | ***    |         | Grouped      with AC on one single CD-ROM.                                                                                                                                                                                                                           |
| Maintenance      Planning Document           |         | MPD    |         | CD-P   |         | E      |         | YES    |         | ***    |         | ***    |         |                                                                                                                                                                                                                                                                 |
| Maintenance      Review Board                |         | MRB    |         | P2     |         | E      |         | NO     |         | ***    |         | ***    |         | MRB      Report includes the Certification Maintenance Requirements (CMR) and      Airworthiness Limitation Items (ALI) documents.                                                                                                                                   |
| Support      Equipment Summary               |         | SES    |         | CD-P   |         | G      |         | NO     |         | ***    |         | ***    |         | Grouped      with TEM, TEI on one single CD-ROM.                                                                                                                                                                                                                     |
| Tool      and Equipment Bulletins            |         | TEB    |         | OL-A   |         | E      |         | NO     |         | ***    |         | ***    |         |                                                                                                                                                                                                                                                                 |
| Tool      and Equipment Drawings             |         | TED    |         | OL-A   |         | E      |         | NO     |         | ***    |         | ***    |         | Available      on AOLS Tool Drawings Service.                                                                                                                                                                                                                        |
| Tool      and Equipment Index                |         | TEI    |         | CD-P   |         | E      |         | NO     |         | ***    |         | ***    |         | Grouped      with TEM, SES on a single CD-ROM                                                                                                                                                                                                                        |
| Illustrated      Tool and Equipment Manual   |         | TEM    |         | CD-P   |         | E      |         | YES    |         | ***    |         | ***    |         | Grouped      with TEI, SES on a single CD-ROM                                                                                                                                                                                                                        |
| Technical      Publications Combined Index   |         | TPCI   |         | CD-A   |         | C      |         | NO     |         | ***    |         | ***    |         |                                                                                                                                                                                                                                                                 |
| Trouble      Shooting Manual                 |         | TSM    |         | DD     |         | C      |         | YES    |         | ***    |         | ***    |         | SGML      data for further processing by the Buyer                                                                                                                                                                                                                   |
|                                         |         | TSM    |         | DVD    |         | C      |         | YES    |         | ***    |         | ***    |         | Contained      on Basic AirN@v for SA and LR Aircraft (Limited to *** copies per      customization)                                                                                                                                                                 |
|                                         |    | TSM    |    | CD-P   |    | C      |    | YES    |    | ***    |    | ***    |    |                                                                                                                                                                                                                                                                 |

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit G      - 6/11 |   |

----

| NOMENCLATURE                          |         | Abbr   |         | Form   |         | Type   |         | ATA    |         | Qty    |         | Deliv  |         | Comments                                                                                                           |
|---------------------------------------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------------------------------------------------------------------------------------------------------------------|
| STRUCTURAL      MANUALS               |         |   |         |   |         |   |         |   |         |   |         |   |         |                                                                                                               |
| Nondestructive      Testing Manual    |         | NTM    |         | CD-P   |         | E      |         | YES    |         | ***    |         | ***    |         |                                                                                                               |
| Nacelle      Structural Repair Manual |         | NSRM   |         | CD-P   |         | E      |         | YES    |         | ***    |         | ***    |         | Supplied      by Propulsion System Manufacturer. The Seller shall ensure that NSRM is      provided in PDF format. |
| Structural      Repair Manual         |         | SRM    |         | CD-P   |         | E      |         | YES    |         | ***    |         | ***    |         |                                                                                                               |
|                                  |    | SRM    |    | DD     |    | E      |    | YES    |    | ***    |    | ***    |    | SGML      format for individual A319, A320, A321 Single Aisle and A330, A340 Long      Range AircraftSRM.          |

| ***  This      information is subject to confidential treatment and has been omitted and      filed separately with the Commission. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |   |   |
| A319/A320      – CSN – Amdt.5 – 05/07                                                                                       |   |   |
| AI/CC-C      No.337.0052/07                                                                                                                   | Exhibit G      - 7/11 |   |

----

| NOMENCLATURE                                           |   | Abbr   |   | Form   |   | Type   |   | ATA    |   | Qty    |   | Deliv  |   | Comments                                                                    |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------------------------------|
| OVERHAUL      DATA                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                                        |
| Component      Documentation Status                    |   | CDS    |   | D      |   | C      |   | NO     |   | ***    |   | ***    |   | Revised      until *** after Aircraft delivery                              |
| Component      Evolution List                          |   | CEL    |   | CD-P   |   | G      |   | NO     |   | ***    |   | ***    |   | Delivered      as follow-on for CDS.                                        |
| Component      Maintenance Manual – Manufacturer |   | CMMM   |   | CD-P   |   | E      |   | YES    |   | ***    |   | ***    |   |                                                                        |
| Component      Maintenance Manual – Vendor       |   | CMMV   |   | CD-ROM |   | E      |   | YES    |   | ***    |   | ***    |   | CD-ROM      to be provided in place of paper, according to    availability. |
| Cable      Fabrication Manual                          |   | CFM    |   | CD-P   |   | E      |   | NO     |   | ***    |   | ***    |   |                                                                        |

| A319/A320      – CSN – Amdt.5 – 05/07 |                  |   |
|---------------------------------------------------------|-----------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit      G - 8/11 |   |

----

| NOMENCLATURE                            |   | Abbr   |   | Form   |   | Type   |   | ATA    |   | Qty    |   | Deliv  |   | Comments                                   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------------------------------------------|
| ENGINEERING      DOCUMENTS              |   |   |   |   |   |   |   |   |   |   |   |   |   |                                       |
| Installation      and Assembly Drawings |   | IAD    |   | OL-A   |   | C      |   | NO     |   | ***    |   | ***    |   | Available      on Airbus On-Line Services. |
| Process      and Material Specification |   | PMS    |   | CD-P   |   | G      |   | NO     |   | ***    |   | ***    |   |                                       |
| Parts      Usage (Effectivity)          |   | PU     |   | OL-A   |   | E      |   | NO     |   | ***    |   | ***    |   | Available      on Airbus On-Line Services. |
| Schedule      (Drawing Nomenclature)    |   | S      |   | OL-A   |   | E      |   | NO     |   | ***    |   | ***    |   | Available      on Airbus On-Line Services. |
| Standards      Manual                   |   | SM     |   | CD-P   |   | G      |   | NO     |   | ***    |   | ***    |   |                                       |

| A319/A320      – CSN – Amdt.5 – 05/07 |                  |   |
|---------------------------------------------------------|-----------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit      G - 9/11 |   |

----

| NOMENCLATURE                                       |   | Abbr   |   | Form   |   | Type   |   | ATA    |   | Qty    |   | Deliv  |   | Comments                                                                                |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------------------------------------------|
| MISCELLANEOUS      PUBLICATIONS                    |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                                                    |
| Airplane      Characteristics for Airport Planning |   | AC     |   | CD-P   |   | E      |   | NO     |   | ***    |   | ***    |   | Grouped      with MFP on one single CD-ROM                                              |
| ATA      Breakdown Index                           |   | ATBI   |   | CD-P   |   | E      |   | NO     |   | ***    |   | ***    |   | Optional                                                                                |
| CADETS      (Technical Publications Training)      |   | CADE   |   | CD-A   |   | G      |   | NO     |   | ***    |   | ***    |   |                                                                                    |
| Aircraft      Recovery Manual                      |   | ARM    |   | CD-P   |   | E      |   | YES    |   | ***    |   | ***    |   | Grouped      with AC and MFP on one single CD-ROM                                       |
| Crash      Crew Chart                              |   | CCC    |   | P1     |   | E      |   | NO     |   | ***    |   | ***    |   | Also      available On-Line on Seller’s website                                   |
| Cargo      Loading System Manual                   |   | CLS    |   | CD-P   |   | E/C    |   | NO     |   | ***    |   | ***    |   | CLS      is Envelope (E) for SA and LR Aircraft and Customized (C) for WB      Aircraft |
| List      of Applicable Publications               |   | LAP    |   | OL-A   |   | C      |   | NO     |   | ***    |   | ***    |   |                                                                                    |
| List      of Radioactive and Hazardous Elements    |   | LRE    |   | CD-P   |   | G      |   | NO     |   | ***    |   | ***    |   |                                                                                    |
| Livestock      Transportation Manual               |   | LTM    |   | CD-P   |   | E      |   | NO     |   | ***    |   | ***    |   |                                                                                    |
| Service      Bulletins                             |   | SB     |   | OL-A   |   | C      |   | YES    |   | ***    |   | ***    |   |                                                                                    |
| Service      Information Letters                   |   | SIL    |   | CD-A   |   | E      |   | YES    |   | ***    |   | ***    |   | On  TPCI      CD-ROM                                                          |
|                                               |   | SIL    |   | OL-A   |   | E      |   | YES    |   | ***    |   | ***    |   |                                                                                    |

| A319/A320      – CSN – Amdt.5 – 05/07 |                   |   |
|---------------------------------------------------------|------------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit      G - 10/11 |   |

----

| NOMENCLATURE                                  |   | Abbr    |   | Form   |   | Type   |   | ATA    |   | Qty    |   | Deliv  |   | Comments                                                |
|-----------------------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------------------------------------------|
| MISCELLANEOUS      PUBLICATIONS               |   |    |   |   |   |   |   |   |   |   |   |   |   |                                                    |
| Supplier      Product Support Agreements 2000 |   | SPSA    |   | CD-P   |   | G      |   | NO     |   | ***    |   | ***    |   | Based      on General Conditions of Purchase (GCP) 2000 |
|                                          |   | SPSA    |   | OL-A   |   | G      |   | NO     |   | ***    |   | ***    |   |                                                    |
| Transportability      Manual                  |   | TM      |   | CD-P   |   | G      |   | NO     |   | ***    |   | ***    |   |                                                    |
| Vendor      Information Manual                |   | VIM     |   | CD-A   |   | G      |   | NO     |   | ***    |   | ***    |   |                                                    |
|                                          |   | VIM     |   | OL-A   |   | G      |   | NO     |   | ***    |   | ***    |   |                                                    |
| Vendor      Information Manual GSE            |   | VIM/GSE |   | CD-A   |   | G      |   | NO     |   | ***    |   | ***    |   |                                                    |
|                                          |   | VIM/GSE |   | OL-A   |   | G      |   | NO     |   | ***    |   | ***    |   |                                                    |

| A319/A320      – CSN – Amdt.5 – 05/07 |                   |   |
|---------------------------------------------------------|------------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit      G - 11/11 |   |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |                       |   |
|---------------------------------------------------------|----------------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H      - 1/20 |   |

----

| 1 | GENERAL |
|---|---------|

| 1.1 | This      Exhibit defines the terms and conditions for the materiel support services      offered by the Seller to the Buyer in the following  areas: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.1.1 | Capitalized      terms used herein and not otherwise defined in this Exhibit "H" shall have      the same meanings assigned thereto in the  Agreement. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.1.2 | References      made to Clauses or sub-Clauses shall refer to Clauses or sub-Clauses of      this Exhibit "H" unless otherwisespecified. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Scope      of Materiel Support |
|-----|--------------------------------|

|  | (i) | Seller      Parts (Seller's proprietary Materiel bearing an official part number of      the Seller or Materiel for which the Seller has the exclusive sales      rights); |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | Supplier      Parts classified as Repairable Line Maintenance Parts in accordance with      SPEC 2000; |
|--|------|--------------------------------------------------------------------------------------------------------|

|  | (iii) | Supplier      Parts classified as Expendable Line Maintenance Parts in accordance with      SPEC 2000; |
|--|-------|--------------------------------------------------------------------------------------------------------|

|  | (iv) | Ground      Support Equipment and Specific (To Type)Tools. |
|--|------|------------------------------------------------------------|

| 1.2.1 | Certain      Seller Parts listed in Appendix A of Clause 6 are available for lease by      the Seller to the Buyer. |
|-------|---------------------------------------------------------------------------------------------------------------------|

| 1.2.2 | The      Materiel support to be provided hereunder by the Seller covers items      classified as Materiel in sub-Clauses 1.2 (i) thru (iv) both for initial      provisioning as described in Clause 2 (“Initial Provisioning”)      and for replenishment as described in Clause3. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2.3 | Propulsion      Systems, nacelles, quick engine change kit and thrust reverser accessories      and parts, including associated parts, are not covered under this Exhibit      "H" and shall be subject to direct agreements between the Buyer and the      relevant Propulsion System Manufacturer. The Seller shall use its      reasonable efforts to assist the Buyer in case of any difficulties with      availability of Propulsion Systems and associated spare    parts. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2.4 | During      a period *** ("Term"), the Seller shall      maintain or have maintained such stock of Seller Parts as is deemed      reasonable by the Seller and shall furnish at *** prices Seller Parts      adequate to meet the Buyer's needs for maintenance of the      Aircraft. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |                       |   |
|---------------------------------------------------------|----------------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H      - 2/20 |   |

----

| 1.3 | Materiel      Support Centre and Central Store |
|-----|------------------------------------------------|

| 1.3.1 | The      Seller has established its materiel support centre in HAMBURG, FEDERAL      REPUBLIC OF GERMANY ("Materiel Support      Centre") and shall maintain or cause to be maintained during the      Term a central store of SellerParts. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3.2 | The      Materiel Support Centre is operated twenty-four (24) hours/day and seven      (7) days/week. |
|-------|-------------------------------------------------------------------------------------------------------|

| 1.3.3 | The      Seller reserves the right to effect deliveries from distribution centres      other than Materiel Support Centre or from any designated production or      Suppliers' facilities. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | Agreements      of the Buyer |
|-----|------------------------------|

| 1.4.1 | The      Buyer agrees to purchase from the Seller the Seller Parts required for the      Buyer's own needs during the Term, provided that the provisions of this      Clause 1.4 shall not in any way prevent the Buyer from resorting to the      Seller Parts stocks of other operators using the same Aircraft or from      purchasing Seller Parts from said operators or from distributors, provided      said Seller Parts have been designed and manufactured by the      Seller. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.2 | The      Buyer may manufacture or have manufactured for its own use without paying      any license fee to the Seller, or may purchase from other sources, parts      equivalent to Seller Parts : |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.2.1 | after      expiration of the Term if at such time the Seller Parts are out of      stock, |
|---------|-------------------------------------------------------------------------------------------|

| 1.4.2.2 | at      any time, to the extent Seller Parts are needed to effect aircraft on      ground (“AOG”)      repairs upon any Aircraft delivered under the Agreement and are not      available from the Seller within a lead time shorter than or equal to the      time in which the Buyer can procure such Seller Parts, and provided the      Buyer shall not sell such SellerParts, |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.2.3 | in      the event that the Seller fails to fulfil its obligations with respect to      any Seller Parts pursuant to Clause 1.2 within a reasonable time after      written notice thereof from theBuyer, |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.2.4 | in      those instances where a Seller Part is identified as "Local Manufacture"      in the Illustrated Parts Catalog(IPC). |
|---------|------------------------------------------------------------------------------------------------------------------------------|

| 1.4.3 | The      rights granted to the Buyer in Clause 1.4.2 shall not in any way be      construed as a license, nor shall they in any way obligate the Buyer to      the payment of any license fee or royalty, nor shall they in any way be      construed to affect the rights of thirdparties. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |                       |   |
|---------------------------------------------------------|----------------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H      - 3/20 |   |

----

| 2 | INITIAL      PROVISIONING |
|---|---------------------------|

| 2.1 | Initial      Provisioning Period |
|-----|----------------------------------|

| 2.2 | Pre-Provisioning      Meeting |
|-----|-------------------------------|

| 2.2.1 | The      Seller shall organize a pre-provisioning meeting (“Pre-Provisioning      Meeting”) at its Materiel Support Centre for the purpose of      formulating an acceptable schedule and working procedure to accomplish the      initial provisioning of Materiel. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2.2 | The      date of the meeting shall be *** for the Initial Provisioning Conference      referred to in Clause 2.4 below. |
|-------|-------------------------------------------------------------------------------------------------------------------------|

| 2.3 | Initial      Provisioning Training |
|-----|------------------------------------|

|   | Upon      the request of the Buyer, the Seller can provide Initial Provisioning      training for the Buyer's provisioning and purchasing personnel. The      following areas shall becovered: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | The      Seller during the Pre-Provisioning Meeting shall familiarize the Buyer      with the provisioningdocuments. |
|--|-----|----------------------------------------------------------------------------------------------------------------------|

|  | (ii) | The      technical function as well as the necessary technical and commercial      Initial Provisioning Data shall be explained during the Initial      ProvisioningConference. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | A      familiarization with the Seller's purchase order administration system      shall be conducted during the Initial Provisioning    Conference. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Initial      Provisioning Conference |
|-----|--------------------------------------|

|   | The      Seller shall organize an Initial Provisioning conference (“Initial Provisioning      Conference”) at the Materiel Support Centre, including      participation of major Suppliers as agreed upon during the      Pre-Provisioning Meeting. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Such      conference shall not take place earlier than *** after Manufacturer Serial      Number allocation, Buyer Furnished Equipment selection or Customer      Definition Freeze, whichever is thelatest. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | Seller-Supplied      Data |
|-----|---------------------------|

|   | The      Seller shall prepare and supply to the Buyer the following      data. |
|--------|--------------------------------------------------------------------------------|

| 2.5.1 | Initial Provisioning      Data |
|-------|--------------------------------|

|   | Initial      Provisioning data elements generally in accordance with SPEC 2000, Chapter      1, ("Initial Provisioning      Data") shall be supplied by the Seller to the Buyer in a form,      format and a time-scale to be mutually agreed upon during the      Pre-Provisioning Meeting. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5.1.1  | Revision      service shall be provided ***, up to the end of the Initial      Provisioning  period. |
|---------------|-----------------------------------------------------------------------------------------------------------|

| 2.5.1.2  | In      any event, the Seller shall ensure that Initial Provisioning Data is      released to the Buyer in due time to give the Buyer sufficient time to      perform any necessary evaluation and allow the on-time delivery of any      ordered Materiel. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |                       |   |
|---------------------------------------------------------|----------------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H      - 4/20 |   |

----

| 2.5.2 | Supplementary      Data |
|-------|-------------------------|

| 2.5.3 | Data for Standard      Hardware |
|-------|---------------------------------|

| 2.6 | Supplier-Supplied      Data |
|-----|-----------------------------|

| 2.6.1 | General |
|-------|---------|

| 2.6.2 | Initial Provisioning      Data |
|-------|--------------------------------|

| 2.7 | Initial      Provisioning Data Compliance |
|-----|-------------------------------------------|

| 2.7.1 | Initial      Provisioning Data generated by the Seller and supplied to the Buyer shall      comply with the latest configuration of the Aircraft to which such data      relate as known *** before the date of issue. Said data shall enable the      Buyer to order Materiel conforming to its Aircraft as required for      maintenance and overhaul. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Buyer      modifications not known to theSeller, |
|--------|---|--------------------------------------------------|

|   | - | modifications      not agreed to by the Seller. |
|--------|---|-------------------------------------------------|

| 2.8 | Commercial      Offer |
|-----|-----------------------|

| 2.8.1 | At      the end of the Initial Provisioning Conference, the Seller shall, at the      Buyer's request, submit a commercial offer for all Materiel as defined in      Clauses 1.2 (i) thru 1.2 (iv) mutually agreed as being Initial      Provisioning based on the Seller's sales prices valid at the time of      finalization of the Initial Provisioning Conference. This commercial offer      shall be valid for a period to be mutually agreed upon, irrespective of      any price changes for Seller Parts during this period, except for      significant error and/or price alterations due to part number changes      and/or Supplier price changes. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |                       |   |
|---------------------------------------------------------|----------------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H      - 5/20 |   |

----

| 2.8.2 | During      the Initial Provisioning Period the Seller shall supply Materiel, as      defined in Clause 1.2 and ordered from the Seller, which shall be in      conformity with the configuration standard of the concerned Aircraft and      with the Initial Provisioning Data transmitted by the    Seller. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.8.3 | The      Seller shall in addition use its reasonable efforts to cause Suppliers to      provide a similar service for theiritems. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------|

| 2.9 | Delivery      of Initial Provisioning Materiel |
|-----|------------------------------------------------|

| 2.9.1 | In      order to support the operation of the Aircraft, the Seller shall use its      reasonable efforts to deliver Materiel ordered during the Initial      Provisioning Period against the Buyer's orders and according to a mutually      agreed schedule. Provided the Buyer's orders have been placed *** before      delivery of the corresponding Aircraft, *** of the ordered quantity of      each item, including line station items, shall be delivered ***. If said      *** cannot be accomplished, the Seller shall endeavor to have such items      available at its facilities for Seller Parts as per sub-Clause 1.2 (i) or      at its Suppliers' facilities for parts as per sub-Clauses 1.2 (ii) thru      1.2 (iv) for immediate supply in case of anAOG. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9.2 | The      above agreed delivery schedule applies only to that portion of the      quantity ordered that is recommended for the number of Aircraft operated      during *** Aircraft delivery. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9.3 | The      Buyer may, subject to the Seller's agreement, cancel or modify Initial      Provisioning orders placed with the Seller, with no cancellation charge,      not later than the quoted lead-time before scheduled delivery of said      Materiel. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9.4 | In      the event of the Buyer canceling or modifying (without any liability of      the Seller for the cancellation or modification) any orders for Materiel      outside the time limits defined in Clause 2.9.3, the Buyer shall reimburse      the Seller for any costs incurred in connection  therewith. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9.5 | All      transportation costs for the return of Materiel under this Clause 2,      including any insurance, customs and duties applicable or other related      expenditures, shall be borne by theBuyer. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.10 | Initial      Provisioning Data for *** |
|------|----------------------------------------|

| 2.10.1 | All      Aircraft for which the Buyer*** |
|--------|------------------------------------------|

| 2.10.2 | *** |
|--------|-----|

| 2.10.3 | The      data concerning Materiel shall at the time of each Aircraft delivery at      least cover such Aircraft's technical configuration as it existed *** to      Aircraft delivery and shall be updated to reflect the final status of the      concerned Aircraft once manufactured. Such update shall be included in the      data revisions issued *** of suchAircraft. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |             |   |
|---------------------------------------------------------|------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 6/20 |   |

----

| 3  | REPLENISHMENT      AND DELIVERY |
|---------|---------------------------------|

| 3.1 | General |
|-----|---------|

| 3.2 | Lead      times |
|-----|-----------------|

| 3.2.1 | Seller      Parts as per sub-Clause 1.2 (i) listed in the Seller's Spare Parts Price      List can be dispatched within the lead times defined in the Spare Parts      Price List. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2.2 | Materiel      of sub-Clauses 1.2 (ii) thru 1.2 (iv) can be dispatched within the      Supplier's lead-time augmented by the Seller's own order and delivery      processing time. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2.3  | Expedite      Service |
|-------------|-----------------------|

| 3.2.3.1 | The      Expedite Service is operated in accordance with the "World Airlines and      Suppliers’ Guide", and the Seller shall notify the Buyer of the action      taken to satisfy the expeditewithin: |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | four      (4) hours after receipt of an AOGOrder, |
|--|---|---------------------------------------------------|

|  | - | twenty-four      (24) hours after receipt of a Critical Order (imminent AOG or work      stoppage), |
|--|---|-----------------------------------------------------------------------------------------------------|

|  | - | ***      after receipt of an Expedite Order from the  Buyer. |
|--|---|--------------------------------------------------------------|

| 3.2.3.2 | The      Seller shall deliver Seller Parts requested on an Expedite basis against      normal orders placed by the Buyer, or upon telephone or telex requests by      the Buyer's representatives. Such telephone or telex requests shall be      confirmed by subsequent Buyer's orders for such Seller Parts within a      reasonable time. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3  | Delivery      Status |
|-----------|----------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |             |   |
|---------------------------------------------------------|------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 7/20 |   |

----

| 3.4  | Excusable      Delay |
|-----------|----------------------|

| 3.5  | Shortages,      Overshipments, Non-Conformity inOrders |
|-----------|--------------------------------------------------------|

| 3.5.1 | The      Buyer shall *** pursuant to a purchase order advise the      Seller: |
|-------|-------------------------------------------------------------------------------|

|  | a) | of      any alleged shortages or overshipments with respect to such      order, |
|--|----|---------------------------------------------------------------------------------|

|  | b) | of      all non-conformities to specification of parts in such order subjected to      inspections by the Buyer. |
|--|----|------------------------------------------------------------------------------------------------------------------|

| 3.5.2 | In      the event of the Buyer reporting overshipments or non-conformity to the      specifications within the period defined in Clause 3.5.1 the Seller shall,      if the Seller accepts such overshipment or non-conformity, either replace      the concerned Materiel or credit the Buyer for the returned Materiel.      *** *** |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.6  | Packaging |
|-----------|-----------|

| 3.7 | Cessation      of Deliveries |
|-----|------------------------------|

| 4  | COMMERCIAL      CONDITIONS |
|---------|----------------------------|

| 4.1.  | Price |
|------------|-------|

| 4.1.1 | The      Materiel prices shall be : |
|-------|-------------------------------------|

|  | - | Free      Carrier (FCA) the Materiel Support Centre for deliveries from the Materiel      Support Centre. |
|--|---|-----------------------------------------------------------------------------------------------------------|

|  | - | Free      Carrier (FCA) place specified by the Seller for deliveries from other      Seller or Supplier facilities as the term Free Carrier (FCA) is defined by      the publication N° 560 of the      International Chamber of Commerce published in January    2000. |
|--|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1.2 | Prices      shall be the Seller's sales prices in effect on the date of receipt of the      order (subject to reasonable quantities and delivery time) and shall be      expressed in US-Dollars. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |             |   |
|---------------------------------------------------------|------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 8/20 |   |

----

| 4.1.3 | Prices      of Seller Parts shall be in accordance with the current Seller's Spare      Parts Price List. Prices shall be firm for each calendar year. The Seller,      however, reserves the right to revise the prices of said parts during the      course of the calendar year in the following  cases: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | significant      revision in manufacturingcosts, |
|--|---|--------------------------------------------------|

|  | - | significant      revision in manufacturer's purchase price of parts or materiels (including      significant variation of exchangerates), |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | significant      error in estimation or expression of anyprice. |
|--|---|-----------------------------------------------------------------|

| 4.1.4 | Prices      of Materiel as defined in sub-Clauses 1.2 (ii) thru 1.2 (iv) shall be the      valid list prices of the Supplier augmented by the Seller's handling      charge. The percentage of the handling charge shall vary with the      Materiel's value and shall be determined item by  item. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1.5 | The      Seller warrants that, should the Buyer purchase all or part of the      recommended Initial Provisioning package of the Materiel as defined in      sub-Clauses 1.2 (ii) thru 1.2 (iv) through the Seller, the average      handling charge on the total package shall not exceed  *** |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2  | Payment      Procedures and Conditions |
|-----------|----------------------------------------|

| 4.2.1 | Payment      shall be made in immediately available funds in the quoted currency. In      case of payment in any other free convertible currency, the exchange rate      valid on the day of actual money transfer shall be applied for      conversion. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.2 | Payment      shall be made by the Buyer to the Seller within  *** |
|-------|-------------------------------------------------------------------|

| 4.2.3 | The      Buyer shall make all payments hereunder to the Seller's account      with: |
|-------|-------------------------------------------------------------------------------------|

| 4.2.4 | All      payments due to the Seller hereunder shall be made in full without      set-off, counterclaim, deduction or withholding of any kind. Consequently,      the Buyer shall procure that the sums received by the Seller under this      Exhibit "H" 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, dues 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 as      may be necessary in order that the net amount received by the Seller after      such deduction or withholding shall equal the amounts which would have      been received in the absence of such deduction or    withholding. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.5 | If      any payment due to the Seller is not received in accordance with the      timescale provided in Clause 4.2.2, without prejudice to the Seller's      other rights under this Exhibit "H", the Seller shall be entitled to      interest for late payment calculated on the amount due  *** |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |             |   |
|---------------------------------------------------------|------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 9/20 |   |

----

| 4.3  | Credit      Assurance |
|-----------|-----------------------|

| 4.3.1 | The      Seller's right to request credit assurance from the Buyer shall be limited      to the following cases: |
|-------|------------------------------------------------------------------------------------------------------------------|

| 4.3.1.1 | The      Seller has received purchase orders from the Buyer for Initial      Provisioning Materiel. |
|---------|-----------------------------------------------------------------------------------------------------|

| 4.3.1.2 | The      Seller has received purchase and/or service orders ***with the      Seller. |
|---------|--------------------------------------------------------------------------------------|

| 4.3.1.3 | The      Buyer is indebted to the Seller for overdue  invoices. |
|---------|-----------------------------------------------------------------|

| 4.3.2 | The      Seller shall accept the following financial means as credit      assurance: |
|-------|--------------------------------------------------------------------------------------|

| 4.3.2.1 | Irrevocable      and confirmed letter of credit, raised by banks of international standing      and reputation. The conditions of such letter of credit shall be pertinent      to Aircraft support activities and shall be set forth by the      Seller. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3.2.2 | Bank      guarantee raised by banks of international standing and reputation. The      conditions of such bank guarantee shall be mutually agreed upon prior to      acceptance by the Seller. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3.2.3 | Stand-by      letter of credit raised by banks of international standing and reputation.      The conditions of such letter of credit shall be mutually agreed upon      prior to acceptance by the Seller. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4  | Title |
|-----------|-------|

| 4.5  | Buy-Back |
|-----------|----------|

| 4.5.1  | Buy-Back of Obsolete      Materiel |
|-------------|------------------------------------|

| 4.5.1.1 | The      Seller Parts involved shall be those, which the Buyer is directed by the      Seller to scrap or dispose of and which cannot be reworked or repaired to      satisfy the revised standard. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.1.2 | The      Seller shall credit to the Buyer the purchase price paid by the Buyer for      any such obsolete parts, provided that the Seller's liability in this      respect does not extend to quantities in excess of the Seller's Initial      Provisioning recommendation. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 10/20 |   |

----

| 4.5.1.3 | The      Seller shall use its reasonable efforts to obtain for the Buyer the same      protection from Suppliers. |
|---------|-------------------------------------------------------------------------------------------------------------------|

| 4.5.2  | Buy-Back of Surplus      Materiel |
|-------------|-----------------------------------|

| 4.5.2.1  | The      Seller agrees that at any time  ***to the Buyer, the Buyer shall      have the right to return to the Seller, *** of the original purchase price      paid by the Buyer, unused and undamaged Materiel as per sub-Clause 1.2 (i)      and at a ***of the original Supplier list price, unused and undamaged      Materiel as per sub-Clause 1.2 (ii) originally purchased from the      Seller |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.2.2 | In      the event of the Buyer electing to procure Materiel in excess of the      Seller's recommendation, the Buyer shall notify the Seller thereof in      writing, with due reference to the present Clause. The Seller's agreement      in writing is necessary before any Materiel in excess of the Seller's      recommendation shall be considered forbuy-back. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.2.3 | It      is expressly understood and agreed that the rights granted to the Buyer      under this Clause 4.5.2 shall not apply to Materiel which may become      surplus to requirements due to obsolescence at any time or for any reason      other than those set forth in Clause 4.5.1  above. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.2.4 | Further,      it is expressly understood and agreed that all credits described in this      Clause 4.5.2 shall be provided by the Seller to the Buyer exclusively by      means of credit notes to be entered into the Buyer's spares account with      the Seller. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.3 | All      transportation costs for the return of obsolete or surplus Materiel under      this Clause 4, including any insurance and customs duties applicable or      other related expenditures, shall be borne by the  Buyer. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.4 | The      Seller's obligation to buy back surplus Materiel is conditioned upon the      Buyer reasonably demonstrating that items proposed for buy-back were in      excess of the Buyer's requirements after the initial purchase of such      items. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.4.1 | The      Seller shall accept as a reasonable demonstration of such excess initial      purchase by the Buyer if the data submitted to the Seller in compliance      with the provisions of Clause 4.6 indicate that the items proposed for      buy-back are surplus to the Buyer's  requirements. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6  | Inventory      Usage Data |
|-----------|---------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 11/20 |   |

----

| 5. | WARRANTIES |
|----|------------|

| 5.1  | Seller      Parts |
|-----------|-------------------|

|  | (i) | be      free from defects inmaterial, |
|--|-----|---------------------------------------|

|  | (ii) | be      free from defects in workmanship, including without limitation processes      of manufacture, |
|--|------|-------------------------------------------------------------------------------------------------------|

|  | (iii) | be      free from defects arising from failure to conform to the applicable      specification for such part. |
|--|-------|---------------------------------------------------------------------------------------------------------------|

| 5.2 | Warranty      Period |
|-----|----------------------|

| 5.2.1 | The      standard warranty period for new Seller Parts is *** after delivery of      such parts to the Buyer. |
|-------|---------------------------------------------------------------------------------------------------------------|

| 5.2.2 | The      *** warranty period for used Seller Parts delivered by and/or repaired,      modified, overhauled or exchanged by the Seller is *** after delivery of      such parts to the Buyer. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3  | Buyer's      Remedy and Seller's Obligation |
|-----------|---------------------------------------------|

| 5.4 | Waiver,      Release and Renunciation |
|-----|---------------------------------------|

|  | (A) | ANY      WARRANTY AGAINST HIDDENDEFECTS; |
|--|-----|------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 12/20 |   |

----

|  | (B) | ANY      IMPLIED WARRANTY OF MERCHANTABILITY ORFITNESS; |
|--|-----|---------------------------------------------------------|

|  | (C) | ANY      IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR      USAGE OF TRADE; |
|--|-----|---------------------------------------------------------------------------------------------------------|

|  | (D) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY, WHETHER CONTRACTUAL OR      DELICTUAL AND WHETHER OR NOT ARISING FROM THE SELLER’S AND/OR ITS      SUPPLIERS’ NEGLIGENCE, ACTUAL OR IMPUTED;AND |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (E) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OR DAMAGE TO ANY      AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART THEREOF OR MATERIEL      DELIVERED HEREUNDER. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6  | SELLER      PARTS LEASING |
|---------|---------------------------|

| 6.1  | General |
|-----------|---------|

| 6.1.1 | The      terms and conditions of this Clause 6 shall prevail over all other terms      and conditions appearing on any order form or other document pertaining to      Leased Parts. The Seller’s current proprietary parts Repair Guide shall be      provided to the Buyer and shall be used, along with this Agreement, as the      basis for Seller Parts lease transactions between the Buyer and the      Seller. In case of discrepancy, this Agreement shall    prevail. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.2 | For      the purposes of this Clause 6, the term "Lessor" refers to the      Seller and the term "Lessee" refers to the      Buyer. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.3 | Parts      not included in Appendix A to this Clause 6 shall be the subject of a      separate lease agreement supplied by the Seller at the Buyer's      request. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2  | Leasing      Procedure |
|-----------|------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 13/20 |   |

----

| 6.3  | Lease      Period |
|-----------|-------------------|

| 6.3.1 | The      total term of the Lease (hereinafter "Lease Period") shall be      counted from inclusively the day the Leased Part is delivered Free Carrier      (FCA) up to inclusively the day of receipt of the Leased Part back at the      Lessor or at any other address indicated by the  Lessor. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3.2 | If      a Leased Part is not returned by the Lessee *** the Lease shall be      converted into a sale. Should the Lessee not return the Leased Part to the      *** and if the Lessor so elects, by giving prompt written notice to the      Lessee, such non return shall be deemed to be an election by the Lessee to      purchase the Leased Part and, upon the happening of such event, the Lessee      shall pay the Lessor all amounts due under Clauses 6.4 and 6.8 for the      Leased Part for the Lease Period of *** plus the current sales price of      the Leased Part at the moment of the conversion of the    Lease. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3.3 | Notwithstanding      the foregoing, the Lease Period shall end in the event of, and upon the      date that, the Lessee acquiring title to a Leased Part as a result of      exercise of the Lessee's option to purchase the Leased Part, as provided      for herein. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3.4 | The      chargeable period to lease a part is a ***. If the shipment of the Leased      Part has been arranged and the Lessee cancels the lease order, the ***      shall apply. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4  | Lease      Charges and Taxes |
|-----------|------------------------------|

|  | (i) | a      Lease fee per day of the Lease Period amounting to *** of the part’s sales      price as set forth in the Seller's Spare Parts Price List in effect on the      date of the commencement of the LeasePeriod; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | any      reasonable additional costs which may be incurred by the Lessor as a      direct result of such Lease, such as recertification, inspection, test,      repair, overhaul, removal of paint and/or repackaging costs as required to      place the Leased Part in a satisfactory condition for lease to a      subsequent customer; |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | all      transportation and insurance charges;and |
|--|-------|---------------------------------------------------|

|  | (iv) | any      taxes, charges or custom duties imposed upon the Lessor or its property as      a result of the Lease, sale, delivery, storage or transfer of any Leased      Part. All payments due hereunder shall be made in accordance with Clause      4. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.5  | Risk      of Loss, Maintenance, Storing and Repair of the Leased  Part |
|-----------|------------------------------------------------------------------------|

|  | (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 shall be returned to the Lessor      in the same condition as when delivered to the  Lessee. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 14/20 |   |

----

|  | (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 testreports. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | All      documentation shall include, but not be limited to, evidence of incidents      such as hard landings, abnormalities of operation and corrective action      taken by the Lessee as a result of such  incidents. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | The      Leased Part must not be lent to a thirdparty. |
|--|-----|--------------------------------------------------------|

|  | (vi) | Risk      of loss or damage to each Leased Part shall 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, damaged      beyond economical repair or damaged unrepairable, the Lessee shall be      deemed to have exercised its option to purchase said Leased Part in      accordance with Clause 6.8 as of the date of such loss or      damage. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.6  | Title |
|-----------|-------|

| 6.7  | Return      of Leased Part |
|-----------|----------------------------|

| 6.7.1 | The      Lessee shall return the Leased Part at the end of the Lease Period to the      address indicated herebelow: |
|-------|----------------------------------------------------------------------------------------------------------------------|

| 6.7.2 | The      return shipping document shall indicate the reference of the Lease      document and the removal data, suchas: |
|-------|-------------------------------------------------------------------------------------------------------------------------|

|  | (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 Clause6.5. |
|--|------|--------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 15/20 |   |

----

| 6.7.3 | The      unserviceable or serviceable tag issued by the Lessee and the original      Lessor certification documents must be attached to the Leased      Part. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.7.4 | 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. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.7.5 | 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. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.7.6 | 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. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.8  | Option      to Purchase |
|-----------|-------------------------|

| 6.8.1 | The      Lessee may at its option, exercisable by written notice given to the      Lessor during the Lease Period, elect to purchase the Leased Part, in      which case the then current sales price for such Leased Part as set forth      in the Seller's Spare Parts Price List shall be paid by the Lessee to the      Lessor. Should the Lessee exercise such option, fifty percent (50 %) of      the Lease rental charges due pursuant to sub-Clause 6.4 (i) shall be      credited to the Lessee against said purchase price of the Leased      Part. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.8.2 | In      the event of purchase, the Leased Part shall be warranted in accordance      with Clause 5 as though such Leased Part were a Seller Part, but the      warranty period shall be deemed to have commenced on the ***A warranty      granted under this Clause 6.8.2 shall be in substitution for the warranty      granted under Clause 6.9 at the commencement of the Lease      Period. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.9  | Warranties |
|-----------|------------|

| 6.9.1 | The      Lessor warrants that each Leased Part shall at the time of delivery be      free from defects in material and workmanship which could materially      impair the utility of the LeasedPart. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.9.2  | Warranty and Notice      Periods                                                                                                                     |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                 |
|        | The      Lessee's remedy and the Lessor's obligation and liability under this      Clause 6.9, with respect to each defect, are conditioned    upon: |

|   | (i) | the      defect having become apparent to the Lessee within the Lease Period      and |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (ii) | the      return by the Lessee *** to the return location specified in the      applicable Lease, or such other place as may be mutually agreed upon, of      the Leased Part claimed to be defectiveand |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 16/20 |   |

----

|   | (iii) | the      Lessor's warranty administrator having received written notice of the      defect from the Lessee *** to the Lessee, with reasonable proof that the      claimed defect is due to a matter embraced within the Lessor's warranty      under this Clause 6.9 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. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.9.3 | Remedies |
|-------|----------|

|   | The      Lessee's remedy and the Lessor's obligation and liability under this      Clause 6.9 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 Clause 6.9.3 shall be deemed to be      the Leased Part so replaced.                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                   |
| 6.9.4  | Suspension and Transportation      Costs                                                                                                                                                                                                                                                                                               |

| 6.9.4.1           | If      a Leased Part is found to be defective and covered by this warranty, the      Lease Period and the Lessee's obligation to pay rental charges as provided      for in sub-Clause 6.4 (i) shall be suspended from the date on which the      Lessee notifies the Lessor of such defect until the date upon which the      Lessor has repaired, corrected or replaced the defective Leased Part,      provided, however, that the Lessee has, promptly after giving such notice      to the Lessor, withdrawn such defective Leased Part from use. If the      defective Leased Part is replaced, such replaced part shall be deemed to      no longer be a Leased Part under the Lease as of the date upon 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 upon first use by the Lessee and is      covered by this warranty, no rental charges as provided in sub-Clause 6.4      (i) shall accrue and be payable by the Lessee until the date on which the      Lessor has repaired, corrected or replaced the defective Leased      Part.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 6.9.4.2      | All      transportation and insurance costs of returning the defective Leased Part      and returning the repaired, corrected or replacement part to the Lessee      shall be ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 6.9.5   | Wear and      Tear                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|              | Normal      wear and tear and the need for regular maintenance and overhaul shall not      constitute a defect or non-conformance under this Clause    6.9.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 6.9.6             | Waiver, Release and      Renunciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|              | THE      WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE LESSOR AND/OR ITS SUPPLIERS      AND REMEDIES OF THE LESSEE SET FORTH IN THIS CLAUSE 6 ARE EXCLUSIVE      AND IN SUBSTITUTION FOR, AND THE LESSEE HEREBY WAIVES, RELEASES AND      RENOUNCES, ALL OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE LESSOR      AND/OR ITS SUPPLIERS AND RIGHTS, CLAIMS AND REMEDIES OF THE BUYER AGAINST      THE SELLER AND/OR ITS SUPPLIERS EXPRESS OR IMPLIED, ARISING BY LAW OR      OTHERWISE WITH RESPECT TO ANY NON-CONFORMITY OR DEFECT IN ANY LEASED PART      DELIVERED UNDER THESE LEASING CONDITIONS INCLUDING BUT NOT LIMITED      TO:                                                                                                                                                                            |

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 17/20 |   |

----

|   | (A) | ANY      WARRANTY AGAINST HIDDEN DEFECTS; |
|--------|-----|-------------------------------------------|

|   | (B) | ANY      IMPLIED WARRANTY OF MERCHANTABILITY ORFITNESS; |
|--------|-----|---------------------------------------------------------|

|   | (C) | ANY      IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR      USAGE OF TRADE; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (D) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY, WHETHER CONTRACTUAL OR      DELICTUAL AND WHETHER OR NOT ARISING FROM THE LESSOR’S OR ITS SUPPLIERS’      NEGLIGENCE, ACTUAL OR IMPUTED; AND |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (E) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OR DAMAGE TO ANY      AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART THEREOF OR ANY LEASED      PART DELIVERED HEREUNDER. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | THE      LESSOR AND/OR ITS SUPPLIERS 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      NON-CONFORMITY OR DEFECT IN ANY LEASED PART DELIVERED UNDER THESE LEASING      CONDITIONS. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                          |
|   | FOR THE PURPOSES OF      THIS CLAUSE 6.9.6, “THE SELLER” SHALL INCLUDE THE SELLER, AND ITS      AFFILIATES.                                                                                                                                                                                                  |

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 18/20 |   |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 19/20 |   |

----

| 7 | TERMINATION      OF SPARES PROCUREMENTCOMMITMENTS |
|---|---------------------------------------------------|

| 7.1  | In      the event of the Agreement being terminated with respect to any Aircraft      due to causes provided for in Clauses 10, 11 or 20 of the Agreement, such      termination may also affect the terms of this Exhibit "H" to the extent      set forth in Clause 7.2 below. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | Any      termination under Clauses 10, 11 or 20 of the Agreement shall discharge      all obligations and liabilities of the parties hereunder with respect to      such undelivered spare parts, services, data or other items to be      purchased hereunder which are applicable to those Aircraft for which the      Agreement has been terminated. Unused spare parts in excess of the Buyer's      requirements due to such Aircraft cancellation shall be repurchased by the      Seller as provided for in Clause4.5.2. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A319/A320      – CSN – Amdt.5 – 05/07 |              |   |
|---------------------------------------------------------|-------------------|--------|
| AI/CC-C      No.337.0052/07                             | Exhibit H - 20/20 |   |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |
|---------------------------------------------------------|
| AI/CC-C      No.337.0052/07                             | Letter      Agreement No. 1- Page1/4 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |
|---------------------------------------------------------|
| AI/CC-C      No.337.0052/07                             | Letter      Agreement No. 1- Page2/4 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |
|---------------------------------------------------------|
| AI/CC-C      No.337.0052/07                             | Letter      Agreement No. 1- Page3/4 |

----

| Agreed      and Accepted               | Agreed      and Accepted              |
|----------------------------------------|---------------------------------------|
|                                   |                                  |
| For      and on behalf of              | For      and on behalf of             |
|                                   |                                  |
| CHINA      SOUTHERN AIRLINES           | AIRBUS      SNC                       |
| COMPANY      LIMITED                   |                                  |
|                                   |                                  |
|                                   |                                  |
| By      :  /s/ Yuan Xinan    | By:      /s/ Guy Brunon               |
|                                   |                                  |
| Name:  Yuan      Xinan       | Name:      Guy Brunon                 |
|                                   |                                  |
| Title:  Vice      President  | Title:  VP      Contracts   |
|                                   |                                  |
| CHINA      SOUTHERN AIRLINES (GROUP)   | WHITNESSED      BY:                   |
| IMPORT      AND EXPORT TRADING         |                                  |
| CORPORATION                            |                                  |
|                                   |                                  |
| By:      /s/ Zhou Yongqian             | By:      /s/ Laurence Barron          |
|                                   |                                  |
| Name:      Zhou Yongqian               | Name:  Laurence      Barron |
|                                   |                                  |
| Title:  General      Manager | Title:      President Airbus China    |

| A319/A320      – CSN – Amdt.5 – 05/07 |
|---------------------------------------------------------|
| AI/CC-C      No.337.0052/07                             | Letter      Agreement No. 1- Page4/4 |

----

| A319/A320      – CSN – Amdt.5 – 05/07 |
|---------------------------------------------------------|
| AI/CC-C      No.337.0052/07                             | Letter      Agreement No. 2- Page1/2 |

----

| Agreed      and Accepted               | Agreed      and Accepted              |
|----------------------------------------|---------------------------------------|
|                                   |                                  |
| For      and on behalf of              | For      and on behalf of             |
|                                   |                                  |
| CHINA      SOUTHERN AIRLINES           | AIRBUS      SNC                       |
| COMPANY      LIMITED                   |                                  |
|                                   |                                  |
|                                   |                                  |
| By      :  /s/ Yuan Xinan    | By:      /s/ Guy Brunon               |
|                                   |                                  |
| Name:  Yuan      Xinan       | Name:      Guy Brunon                 |
|                                   |                                  |
| Title:  Vice      President  | Title:  VP      Contracts   |
|                                   |                                  |
| CHINA      SOUTHERN AIRLINES (GROUP)   | WHITNESSED      BY:                   |
| IMPORT      AND EXPORT TRADING         |                                  |
| CORPORATION                            |                                  |
|                                   |                                  |
| By:      /s/ Zhou Yongqian             | By:      /s/ Laurence Barron          |
|                                   |                                  |
| Name:      Zhou Yongqian               | Name:  Laurence      Barron |
|                                   |                                  |
| Title:  General      Manager | Title:      President Airbus China    |

| A319/A320      – CSN – Amdt.5 – 05/07 |
|---------------------------------------------------------|
| AI/CC-C      No.337.0052/07                             | Letter      Agreement No. 2- Page 2/2 |

----

----

| (i)    | fitting      of CFM International CFM56-5B5/P engines |
|--------|-------------------------------------------------------|
| (ii)   | increase      of design weights to:                   |
|   | Maximum      Take-off Weight (MTOW)                   | *** |
|   | Maximum      Landing Weight (MLW)                     | *** |
|   | Maximum      Zero Fuel Weight (MZFW)                  | *** |

| 2. | GUARANTEED      PERFORMANCE |
|----|-----------------------------|

| 2.1 | Speed |
|-----|-------|

| 2.2 | Specific      Range |
|-----|---------------------|

| Weight | Pressure Altitude |
|--------|------------------------|
| ***    | ***                    |
| ***    | ***                    |
| ***    | ***                    |
| ***    | ***                    |
| ***    | ***                    |

| 2.3 | Take-off |
|-----|----------|

| 2.4 | Second Segment      Climb |
|-----|---------------------------|

----

| 2.6 | En-route One Engine      Inoperative |
|-----|--------------------------------------|

| 3. | MANUFACTURER'S WEIGHT      EMPTY |
|----|----------------------------------|

| 4.1. | The      performance certification requirements for the Aircraft, except where      otherwise stated, will be as stated in Section 02 of the      Specification. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2. | For      the determination of JAR take-off and landing performance a hard level dry      runway surface with no runway strength limitations, no obstacles, zero      wind, atmosphere according to ISA, except as otherwise stated and the use      of speedbrakes, flaps, landing gear and engines in the conditions liable      to provide the best results will beassumed. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.1. | When      establishing take-off and second segment performance no air will be bled      from the engines for cabin air conditioning or  anti-icing. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3. | Climb,      cruise and descent performance associated with the Guarantees will include      allowances for normal electrical load and for normal engine air bleed and      power extraction associated with maximum cabin differential pressure as      defined in Section 21-30.31 of the Specification. Cabin air conditioning      management during performance demonstration as described in paragraph 5.3      may be such as to optimize the Aircraft performance while meeting the      minimum air conditioning requirements defined above. Unless otherwise      stated no air will be bled from the engines for  anti-icing. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4. | The      engines will be operated using not more than the engine manufacturer's      maximum recommended outputs for take-off, maximum go-round, maximum      continuous, maximum climb and cruise for normal operation unless otherwise      stated. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5. | Where      applicable the Guarantees assume the use of an approved fuel having a      density of *** and a lower heating value of***. |
|------|---------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | GUARANTEE      COMPLIANCE |
|----|---------------------------|

| 5.1. | 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2. | Compliance      with the take-off, second segment, en-route one engine inoperative and      landing elements of the Guarantees will be demonstrated with reference to      the approved Flight Manual. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3. | Compliance      with those parts of the guarantees defined in paragraph 2 not covered by      the requirements of the certifying Airworthiness Authority shall be      demonstrated by calculation based on data obtained during flight tests      conducted on one (or more, at the Seller's discretion) A319-100 aircraft      of the same aerodynamic configuration as those Aircraft purchased by the      Buyer and incorporated in the In-Flight Performance Program and data bases      ("the IFP") appropriate to theAircraft.. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4. | Compliance      with the Manufacturer's Weight Empty guarantee defined in paragraph 3      shall be demonstrated with reference to a weight compliance      report. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5. | Data      derived from 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6. | Compliance      with the Guarantees is not contingent on engine performance defined in the      engine manufacturer'sspecification. |
|------|-------------------------------------------------------------------------------------------------------------------------------------|

| 5.7. | The      Seller undertakes to furnish the Buyer with a report or reports      demonstrating compliance with the Guarantees at, or as soon as possible      after, the delivery of each of the Buyer's A319-100    Aircraft |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | ADJUSTMENT OF      GUARANTEES |
|----|-------------------------------|

| 6.1. | In      the event of any change to any law, governmental regulation or requirement      or interpretation thereof ("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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2. | The      Guarantees apply to the Aircraft as described in paragraph 1 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 of the      Specification |
|--------|----|----------------------------------------------------------------------------------------------|

| 7. | EXCLUSIVE      GUARANTEES |
|----|---------------------------|

----

| Agreed      and Accepted                         | Agreed      and Accepted           |
|--------------------------------------------------|------------------------------------|
|                                             |                               |
| For      and on behalf of                        | For      and on behalf of          |
|                                             |                               |
| CHINA      SOUTHERN AIRLINESCOMPANY      LIMITED | AIRBUS      SNC                    |
|                                             |                               |
| By      : /s/ Yuan Xinan                         | By:      /s/ Guy Brunon            |
|                                             |                               |
| Name:      Yuan Xinan                            | Name:      Guy Brunon              |
|                                             |                               |
| Title:      Vice President                       | Title:      VP Contracts           |
|                                             |                               |
| CHINA      SOUTHERN AIRLINES (GROUP)             | WHITNESSED      BY:                |
| IMPORT      AND EXPORT TRADING                   |                               |
| CORPORATION                                      |                               |
|                                             |                               |
| By:      /s/ Zhou Yongqian                       | By:      /s/ Laurence Barron       |
|                                             |                               |
| Name:      Zhou Yongqian                         | Name:      Laurence Barron         |
|                                             |                               |
| Title:      General Manager                      | Title:      President Airbus China |
|                                             |                               |
| Date:  April      9, 2004              |                               |

----

----

| Maximum      Take-off Weight (MTOW)  | *** |
|--------------------------------------|-----|
| Maximum      Landing Weight (MLW)    | *** |
| Maximum      Zero Fuel Weight (MZFW) | *** |

| 2. | GUARANTEED      PERFORMANCE |
|----|-----------------------------|

| 2.1 | Speed |
|-----|-------|

|   | Level      flight speed at an Aircraft gross weight of *** at a pressure altitude of      *** in ISA conditions using a thrust not exceeding maximum cruise thrust      shall be not less than the guaranteed Mach number value of : ***. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Specific      Range |
|-----|---------------------|

| Weight | Pressure      Altitude |
|--------|------------------------|
| ***    | ***                    |
| ***    | ***                    |
| ***    | ***                    |
| ***    | ***                    |
| ***    | ***                    |

| 2.3 | Take-off |
|-----|----------|

| 2.4 | Second Segment      Climb |
|-----|---------------------------|

----

| 2.5 | Landing Field      Length |
|-----|---------------------------|

| 2.6 | En-route One Engine      Inoperative |
|-----|--------------------------------------|

| 3. | MANUFACTURER'S WEIGHT      EMPTY |
|----|----------------------------------|

| 4.1. | The      performance certification requirements for the Aircraft, except where      otherwise stated, will be as stated in Section 02 of the      Specification. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2. | For      the determination of JAR take-off and landing performance a hard level dry      runway surface with no runway strength limitations, no obstacles, zero      wind, atmosphere according to ISA, except as otherwise stated and the use      of speedbrakes, flaps, landing gear and engines in the conditions liable      to provide the best results will beassumed. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.1. | When      establishing take-off and second segment performance no air will be bled      from the engines for cabin air conditioning or  anti-icing. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3. | Climb,      cruise and descent performance associated with the Guarantees will include      allowances for normal electrical load and for normal engine air bleed and      power extraction associated with maximum cabin differential pressure as      defined in Section 21-30.31 of the Specification. Cabin air conditioning      management during performance demonstration as described in paragraph 5.3      may be such as to optimize the Aircraft performance while meeting the      minimum air conditioning requirements defined above. Unless otherwise      stated no air will be bled from the engines for  anti-icing. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4. | The      engines will be operated using not more than the engine manufacturer's      maximum recommended outputs for take-off, maximum go-round, maximum      continuous, maximum climb and cruise for normal operation unless otherwise      stated. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5. | Where      applicable the Guarantees assume the use of an approved fuel having a      density of *** and a lower heating value of***. |
|------|---------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | GUARANTEE      COMPLIANCE |
|----|---------------------------|

| 5.1. | 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2. | Compliance      with the take-off, second segment, en-route one engine inoperative and      landing elements of the Guarantees will be demonstrated with reference to      the approved Flight Manual. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3. | Compliance      with those parts of the guarantees defined in paragraph 2 not covered by      the requirements of the certifying Airworthiness Authority shall be      demonstrated by calculation based on data obtained during flight tests      conducted on one (or more, at the Seller's discretion) A320-200 aircraft      of the same aerodynamic configuration as those Aircraft purchased by the      Buyer and incorporated in the In-Flight Performance Program and data bases      ("the IFP") appropriate to theAircraft.. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4. | Compliance      with the Manufacturer's Weight Empty guarantee defined in paragraph 3      shall be demonstrated with reference to a weight compliance      report. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5. | Data      derived from 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6. | Compliance      with the Guarantees is not contingent on engine performance defined in the      engine manufacturer'sspecification. |
|------|-------------------------------------------------------------------------------------------------------------------------------------|

| 5.7. | The      Seller undertakes to furnish the Buyer with a report or reports      demonstrating compliance with the Guarantees at, or as soon as possible      after, the delivery of each of the Buyer's A320-200    Aircraft |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | ADJUSTMENT OF      GUARANTEES |
|----|-------------------------------|

| 6.1. | In      the event of any change to any law, governmental regulation or requirement      or interpretation thereof ("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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2. | The      Guarantees apply to the Aircraft as described in paragraph 1 and may be      adjusted in the event of : |
|------|------------------------------------------------------------------------------------------------------------------|

|   | b) | Any      further configuration change which is the subject of a  SCN |
|--------|----|----------------------------------------------------------------------|

|   | b) | Variation      in actual weights of items defined in Section 13-10 of the      Specification |
|--------|----|----------------------------------------------------------------------------------------------|

| 7. | EXCLUSIVE      GUARANTEES |
|----|---------------------------|

----

| 8. | *** |
|----|-----|

----

| Agreed and Accepted                  |                   | Agreed      and Accepted           |
|--------------------------------------|------------------------|------------------------------------|
|                                 |                   |                               |
| For      and on behalf of            |                   | For      and on behalf of          |
|                                 |                   |                               |   |   |
| CHINA      SOUTHERN AIRLINES         |                   | AIRBUS      SNC                    |
| COMPANY      LIMITED                 |                   |                               |   |
|                                 |                   |                               |   |   |
| By      :                            | /s/      Yuan Xinan    |                               | By: | /s/      Guy Brunon |
|                                 |                   |                               |   |   |
| Name:      Yuan Xinan                |                   | Name:      Guy Brunon              |
|                                 |                   |                               |
| Title:      Vice President           |                   | Title:      VP Contracts           |
|                                 |                   |                               |   |   |
| CHINA      SOUTHERN AIRLINES (GROUP) |                   | WHITNESSED      BY:                |
| IMPORT      AND EXPORT TRADING       |                   |                               |
| CORPORATION                          |                   |                               |
|                                 |                   |                               |   |   |
| By:                                  | /s/      Zhou Yongqian |                               | By: | /s/      Laurence Barron |
|                                 |                   |                               |   |   |
| Name:      Zhou Yongqian             |                   | Name:      Laurence Barron         |
|                                 |                   |                               |
| Title:      General Manager          |                   | Title:      President Airbus China |
|                                 |                   |                               |   |   |
| Date:  April      9, 2004  |                   |                               |   |

----

----

----

| Agreed      and Accepted             |                   | Agreed      and Accepted           |
|--------------------------------------|------------------------|------------------------------------|
|                                 |                   |                               |
| For      and on behalf of            |                   | For      and on behalf of          |
|                                 |                   |                               |   |   |
| CHINA      SOUTHERN AIRLINES         |                   | AIRBUS      SNC                    |
| COMPANY      LIMITED                 |                   |                               |   |
|                                 |                   |                               |   |   |
| By      :                            | /s/      Yuan Xinan    |                               | By: | /s/      Guy Brunon |
|                                 |                   |                               |   |   |
| Name:      Yuan Xinan                |                   | Name:      Guy Brunon              |
|                                 |                   |                               |
| Title:      Vice President           |                   | Title:      VP Contracts           |
|                                 |                   |                               |   |   |
| CHINA      SOUTHERN AIRLINES (GROUP) |                   | WHITNESSED      BY:                |
| IMPORT      AND EXPORT TRADING       |                   |                               |
| CORPORATION                          |                   |                               |
|                                 |                   |                               |   |   |
| By:                                  | /s/      Zhou Yongqian |                               | By: | /s/      Laurence Barron |
|                                 |                   |                               |   |   |
| Name:      Zhou Yongqian             |                   | Name:      Laurence Barron         |
|                                 |                   |                               |
| Title:      General Manager          |                   | Title:      President Airbus China |
|                                 |                   |                               |   |   |
| Date:  April      9, 2004  |                   |                               |   |

----

| 1. | GENERAL TERMS AND      CONDITIONS |
|----|-----------------------------------|

|   | *** |
|--------|-----|

----

----

----

| Agreed      and Accepted             |                   | Agreed      and Accepted            |
|--------------------------------------|------------------------|-------------------------------------|
|                                 |                   |                                |
| For      and on behalf of            |                   | For      and on behalf of           |
|                                 |                   |                                |   |   |
| CHINA      SOUTHERN AIRLINES         |                   | AIRBUS      SNC                     |
| COMPANY      LIMITED                 |                   |                                |   |
|                                 |                   |                                |   |   |
| By      :                            | /s/      Yuan Xinan    |                                | By: | /s/      Guy Brunon |
|                                 |                   |                                |   |   |
| Name:      Yuan Xinan                |                   | Name:      Guy Brunon               |
|                                 |                   |                                |
| Title:      Vice President           |                   | Title:      VP Contracts            |
|                                 |                   |                                |   |   |
| Date:  April      9, 2004  |                   | Date:  April      9, 2004 |
|                                 |                   |                                |   |   |
| CHINA      SOUTHERN AIRLINES (GROUP) |                   | WHITNESSED      BY:                 |
| IMPORT      AND EXPORT TRADING       |                   |                                |
| CORPORATION                          |                   |                                |
|                                 |                   |                                |   |   |
| By:                                  | /s/      Zhou Yongqian |                                | By: | /s/      Laurence Barron |
|                                 |                   |                                |   |   |
| Name:      Zhou Yongqian             |                   | Name:      Laurence Barron          |
|                                 |                   |                                |
| Title:      General Manager          |                   | Title:      President Airbus China  |
|                                 |                   |                                |   |   |
| Date:  April      9, 2004  |                   | Date:  April      9, 2004 |

----

----

| 1. | CLAUSE      5 PAYMENTS |
|----|------------------------|

| 1.1 | The      parties agree to add to sub-Clause 5.3.2 the following      sentence: |
|-----|--------------------------------------------------------------------------------|

| 1.2 | The      Buyer and the Seller acknowledge that sub-Clause 5.3.5 of this Agreement      shall not be applicable. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| 1.3 |           The parties agree to delete sub-Clause 5.8.1 in its entirety and replace      it with the following: |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

|  | 5.8.1 | *** |
|--|-------|-----|

| 1.4 | The      parties agree to delete sub-Clause 5.9 in its entirety and replace it with      the following: |
|-----|---------------------------------------------------------------------------------------------------------|

|  | 5.9 | *** |
|--|-----|-----|

| 2.  | CLAUSE 7      CERTIFICATION |
|----------|-----------------------------|

| 2.1 |           Notwithstanding the terms of sub-Clause 7.3.1 (ii) the parties agree to      add the following sentence to sub-Clause 7.3.1  (ii): |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 |                    The parties agree to add to sub-Clause 7.4.1 the following      sentence: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.  | CLAUSE 8 BUYER'S      TECHNICAL ACCEPTANCE |
|----------|--------------------------------------------|

|  |  | QUOTE |
|--|--|-------|

| 4.  | CLAUSE 9      DELIVERY |
|----------|------------------------|

| 4.1 | The      parties agree to delete sub-Clause 9.3.2 in its entirety and replace it      with the following: |
|-----|-----------------------------------------------------------------------------------------------------------|

|  | 9.3.2 | *** |
|--|-------|-----|

|  | 9.3.3 | *** |
|--|-------|-----|

| 4.2 | The      parties agree to add to sub-Clause 9.1.1 the following      sentences: |
|-----|---------------------------------------------------------------------------------|

|   | QUOTE |
|--------|-------|

|   | *** |
|--------|-----|

| 5.  | CLAUSE 10 EXCUSABLE      DELAY |
|----------|--------------------------------|

|   |         The parties agree to delete sub-Clause 10.5 in its entirety and replace it      with the following: |
|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | *** |
|--------|------|-----|

| 6. | CLAUSE 11 NON      EXCUSABLE DELAY |
|----|------------------------------------|

| 6.1 |         The parties agree to delete sub-Clause 11.1 in its entirety and replace it      with the following: |
|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | QUOTE |
|--------|-------|

----

|   | 11.1 | Liquidated      Damages |
|--------|------|-------------------------|

|   | Should      any of the Aircraft not be Ready for Delivery to the Buyer within ***      after the last day of the Scheduled Delivery Month (as varied by virtue of      Clauses 2, 7 and 10) (the "Delivery Period") and      such delay is not as a result of an Excusable Delay or Total Loss (a      "Non-Excusable      Delay"), then the Buyer shall have the right to claim, and the      Seller shall *** |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      amount of such *** in respect of any A320  Aircraft. |
|--------|---------------------------------------------------------------|

|  | 2. | UNQUOTE |
|--|----|---------|

| 6.2 | The      parties agree to delete sub-Clause 11.3 in its entirety and replace it      with the following: |
|-----|----------------------------------------------------------------------------------------------------------|

|   | QUOTE |
|--------|-------|

|   | 11.3 | If      as a result of Non-Excusable Delay, Delivery does not occur in the period      falling *** after the Delivery Period and the parties have not      renegotiated the Delivery Date pursuant to Clause 11.2, either party      shall have the right exercisable by written notice to the other party,      given not less than *** nor more than *** after expiration of such *** to      terminate this Agreement in respect of the affected Aircraft and neither      party shall have any claim against the other in respect of such      nondelivery *** |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   | UNQUOTE |
|--|--------|---------|

| 7. | CLAUSE 12      WARRANTY |
|----|-------------------------|

| 7.1 | The      parties agree to add to sub-Clause 12.1.6 (ii) the following      sentence: |
|-----|--------------------------------------------------------------------------------------|

| 7.2 | The      parties agree to delete the last sentence of sub-Clause 12.1.6 (iii) and      replace it by the followingsentence: |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

----

| 7.3 | The      parties agree to delete the first paragraph of sub-Clause 12.1.6 (iv) in      its entirety and add to sub-Clause 12.1.6 (iv) the following      sentence: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | In      reference to sub-Clause 12.1.6 (iv), should the Seller's personnel perform      work on the Buyer's Aircraft, the Buyer will provide a copy of the      insurance certificate as stated in the then current Airbus General Terms      and Conditions of Supply for Products and Services as published in the      Customer Services Catalog, whereby the Seller request the Buyer to cover      Seller's personnel in the Buyer's insurance as "ADDITIONALLY      INSUREDS".  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| 7.5 | The      parties agree to add to sub-Clause 12.4.1 the following      sentence: |
|-----|---------------------------------------------------------------------------------|

| 8. | CLAUSE      14  TECHNICAL DATA AND SOFTWARE  SERVICES |
|----|-----------------------------------------------------------------|

| 8.1  | The      parties agree to delete sub-Clause 14.5 in its entirety and replace it      with the following: |
|-----------|----------------------------------------------------------------------------------------------------------|

| 8.2 | The      parties agree to add to sub-Clause 14.10.2 the  following: |
|-----|---------------------------------------------------------------------|

----

| 9. | CLAUSE 15 SELLER      REPRESENTATIVE |
|----|--------------------------------------|

| 10. | CLAUSE 16 TRAINING AND      TRAINING AIDS |
|-----|-------------------------------------------|

| 10.1 | The      parties agree to delete the sub-Clause 16.4.3 in its entirety and replace      it by the following: |
|------|--------------------------------------------------------------------------------------------------------------|

| 10.2 |              The Buyer and the Seller acknowledge that sub-Clause 16.6.2.3 of this      Agreement shall not beapplicable. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3  | The      parties agree to add to sub-Clause 16.8.1 the following      sentences: |
|------------|----------------------------------------------------------------------------------|

| 10.4  | The      parties agree to add to Appendix A to Clause 16 the following      sentence: |
|------------|---------------------------------------------------------------------------------------|

| 10.5 | The      parties agree to add to Appendix A to Clause 16 the following      paragraph: |
|------|----------------------------------------------------------------------------------------|

| 11. | CLAUSE      22 MISCELLANEOUS      PROVISIONS |
|-----|----------------------------------------------|

----

----

| Agreed      and Accepted             |                   | Agreed      and Accepted            |
|--------------------------------------|------------------------|-------------------------------------|
|                                 |                   |                                |
| For      and on behalf of            |                   | For      and on behalf of           |
|                                 |                   |                                |   |   |
| CHINA      SOUTHERN AIRLINES         |                   | AIRBUS      SNC                     |
| COMPANY      LIMITED                 |                   |                                |   |
|                                 |                   |                                |   |   |
| By      :                            | /s/      Yuan Xinan    |                                | By: | /s/      Guy Brunon |
|                                 |                   |                                |   |   |
| Name:      Yuan Xinan                |                   | Name:      Guy Brunon               |
|                                 |                   |                                |
| Title:      Vice President           |                   | Title:      VP Contracts            |
|                                 |                   |                                |   |   |
| Date:  April      9, 2004  |                   | Date:  April      9, 2004 |
|                                 |                   |                                |   |   |
| CHINA      SOUTHERN AIRLINES (GROUP) |                   | WHITNESSED      BY:                 |
| IMPORT      AND EXPORT TRADING       |                   |                                |
| CORPORATION                          |                   |                                |
|                                 |                   |                                |   |   |
| By:                                  | /s/      Zhou Yongqian |                                | By: | /s/      Laurence Barron |
|                                 |                   |                                |   |   |
| Name:      Zhou Yongqian             |                   | Name:      Laurence Barron          |
|                                 |                   |                                |
| Title:      General Manager          |                   | Title:      President Airbus China  |
|                                 |                   |                                |   |   |
| Date:  April      9, 2004  |                   | Date:  April      9, 2004 |

----

----

| Agreed      and Accepted             |                   | Agreed      and Accepted            |
|--------------------------------------|------------------------|-------------------------------------|
|                                 |                   |                                |
| For      and on behalf of            |                   | For      and on behalf of           |
|                                 |                   |                                |   |   |
| CHINA      SOUTHERN AIRLINES         |                   | AIRBUS      SNC                     |
| COMPANY      LIMITED                 |                   |                                |   |
|                                 |                   |                                |   |   |
| By      :                            | /s/      Yuan Xinan    |                                | By: | /s/      Guy Brunon |
|                                 |                   |                                |   |   |
| Name:      Yuan Xinan                |                   | Name:      Guy Brunon               |
|                                 |                   |                                |
| Title:      Vice President           |                   | Title:      VP Contracts            |
|                                 |                   |                                |   |   |
| Date:  April      9, 2004  |                   | Date:  April      9, 2004 |
|                                 |                   |                                |   |   |
| CHINA      SOUTHERN AIRLINES (GROUP) |                   | WHITNESSED      BY:                 |
| IMPORT      AND EXPORT TRADING       |                   |                                |
| CORPORATION                          |                   |                                |
|                                 |                   |                                |   |   |
| By:                                  | /s/      Zhou Yongqian |                                | By: | /s/      Laurence Barron |
|                                 |                   |                                |   |   |
| Name:      Zhou Yongqian             |                   | Name:      Laurence Barron          |
|                                 |                   |                                |
| Title:      General Manager          |                   | Title:      President Airbus China  |
|                                 |                   |                                |   |   |
| Date:  April      9, 2004  |                   | Date:  April      9, 2004 |

----

----

| Agreed      and Accepted             |   | Agreed      and Accepted            |
|--------------------------------------|--------|-------------------------------------|
|                                 |   |                                |
| For      and on behalf of            |   | For      and on behalf of           |
|                                 |   |                                |
| CHINA      SOUTHERN AIRLINES         |   | AIRBUS      SNC                     |
| COMPANY      LIMITED                 |   |                                |
|                                 |   |                                |
| By      : /s/ Yuan Xinan             |   | By:      /s/ Guy Brunon             |
|                                 |   |                                |
| Name:      Yuan Xinan                |   | Name:      Guy Brunon               |
|                                 |   |                                |
| Title:      Vice President           |   | Title:      VP Contracts            |
|                                 |   |                                |
| Date:  April      9, 2004  |   | Date:  April      9, 2004 |
|                                 |   |                                |
| CHINA      SOUTHERN AIRLINES (GROUP) |   | WHITNESSED      BY:                 |
| IMPORT      AND EXPORT TRADING       |   |                                |
| CORPORATION                          |   |                                |
|                                 |   |                                |
| By:      /s/ Zhou Yongqian           |   | By:      /s/ Laurence Barron        |
|                                 |   |                                |
| Name:      Zhou Yongqian             |   | Name:      Laurence Barron          |
|                                 |   |                                |
| Title:      General Manager          |   | Title:      President Airbus China  |
|                                 |   |                                |
| Date:  April      9, 2004  |   | Date:  April      9, 2004 |

----

----

| CLAUSES | TITLES                                    |   |
|---------|-------------------------------------------|--------|
|    |                                      |   |
|    |                                      |   |
| 0       | DEFINITIONS      AND INTERPRETATION       |   |
|    |                                      |   |
| 1       | SALE      AND PURCHASE                    |   |
|    |                                      |   |
| 2       | SPECIFICATION                             |   |
|    |                                      |   |
| 3       | PRICES                                    |   |
|    |                                      |   |
| 4       | PRICE      REVISION                       |   |
|    |                                      |   |
| 5       | PAYMENTS                                  |   |
|    |                                      |   |
| 6       | MANUFACTURE      PROCEDURE - INSPECTION   |   |
|    |                                      |   |
| 7       | CERTIFICATION                             |   |
|    |                                      |   |
| 8       | BUYER'S      TECHNICAL ACCEPTANCE         |   |
|    |                                      |   |
| 9       | DELIVERY                                  |   |
|    |                                      |   |
| 10      | EXCUSABLE      DELAY                      |   |
|    |                                      |   |
| 11      | NON-EXCUSABLE      DELAY                  |   |
|    |                                      |   |
| 12      | WARRANTIES      AND SERVICE LIFE POLICY   |   |
|    |                                      |   |
| 13      | PATENT      AND COPYRIGHT INDEMNITY       |   |
|    |                                      |   |
| 14      | TECHNICAL      DATA AND SOFTWARE SERVICES |   |
|    |                                      |   |
| 15      | SELLER'S      REPRESENTATIVES             |   |
|    |                                      |   |
| 16      | TRAINING      AND TRAINING AIDS           |   |
|    |                                      |   |
| 17      | EQUIPMENT      SUPPLIER PRODUCT SUPPORT   |   |
|    |                                      |   |
| 18      | BUYER      FURNISHED EQUIPMENT            |   |
|    |                                      |   |
| 19      | INDEMNIFICATION      AND INSURANCE        |   |
|    |                                      |   |
| 20      | TERMINATION                               |   |
|    |                                      |   |
| 21      | ASSIGNMENTS      AND TRANSFERS            |   |
|    |                                      |   |
| 22      | MISCELLANEOUS      PROVISIONS             |   |

----

| EXHIBITS       | TITLES                                                |   |
|----------------|-------------------------------------------------------|--------|
|           |                                                  |   |
| Exhibit      A | SPECIFICATION                                         |   |
|           |                                                  |   |
| Exhibit      B | FORM      OF SPECIFICATION CHANGE NOTICE              |   |
|           |                                                  |   |
| Exhibit      C | PART      1 AIRFRAME PRICE REVISION FORMULA           |   |
|           | PART      2 PROPULSION SYSTEMS PRICE REVISION FORMULA |   |
|           |                                                  |   |
| Exhibit      D | FORM      OF CERTIFICATE OF ACCEPTANCE                |   |
|           |                                                  |   |
| Exhibit      E | FORM      OF BILL OF SALE                             |   |
|           |                                                  |   |
| Exhibit      F | SERVICE      LIFE POLICY - ITEMS OF PRIMARY STRUCTURE |   |
|           |                                                  |   |
| Exhibit      G | TECHNICAL      DATA INDEX                             |   |
|           |                                                  |   |
| Exhibit      H | MATERIEL      AND SUPPLY SERVICES                     |   |

----

----

| 0  | DEFINITIONS AND      INTERPRETATION |
|---------|-------------------------------------|

| 0.1 | In      addition to words and terms elsewhere defined in this Agreement, the      initially capitalised words and terms used in this Agreement shall have      the meaning set out below. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Affiliate                       |   | means      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.                                                                                                                                                                                                                                                                                                                                                                       |
|--------|---------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Aircraft                        |   | means      (i) an Airbus A319-100 aircraft including the Airframe, the Propulsion      Systems, and any part, component, furnishing or equipment installed on the      Aircraft on Delivery under the terms and conditions of this Agreement (the      “A319 Aircraft”) or (ii) an Airbus A320-200 aircraft including the      Airframe, the Propulsion Systems, and any part, component, furnishing or      equipment installed on the Aircraft on Delivery under the terms and      conditions of this Agreement (the “A320 Aircraft”). |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Aircraft      Training Services |   | means      all training courses, flight training, line training, flight assistance,      line assistance, maintenance support, maintenance training (including On      the Job Training and Engine Run Up) or training support performed on      aircraft and provided to the Buyer pursuant to this    Agreement.                                                                                                                                                                                                                                                |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Airframe                        |   | means      the Aircraft excluding the Propulsion Systems.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Airframe      Basic Price       |   | has      the meaning set out in Clause 3.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Airframe      Price Revision    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Formula                         |   | is      set out in Part 1 of Exhibit C.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Aviation      Authority         |   | means      when used in respect of any jurisdiction the government entity, which      under the laws of such jurisdiction has control over civil aviation or the      registration, airworthiness or operation of aircraft in such      jurisdiction.                                                                                                                                                                                                                                                                                                             |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Balance      of Final Price     |   | has      the meaning set out in Clause 5.4.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Basic      Price                |   | means      the sum of the Airframe Basic Price and the Propulsion Systems Basic      Price.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Bill      of Sale               |   | has      the meaning set out in Clause 9.2.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Buyer      Furnished            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Equipment                       |   | has      the meaning set out in Clause 18.1.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Certificate      of Acceptance  |   | has      the meaning set out in Clause8.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

|   | Default      Rate             |   | means      the rate of Default Interests as defined in Clause 5.7.                                                                                                                                                                                                                                                |
|--------|-------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Delivery                      |   | means      the transfer of title to the Aircraft from the Seller to the Buyer in      accordance with Clause 9.                                                                                                                                                                                                   |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Delivery      Date            |   | means      the date on which Delivery shall occur.                                                                                                                                                                                                                                                                |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Delivery      Location        |   | means      the facilities of the Seller at the location of final assembly of the      Aircraft.                                                                                                                                                                                                                   |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Excusable      Delay          |   | has      the meaning set out in Clause 10.1.                                                                                                                                                                                                                                                                      |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Export      Airworthiness     |   |                                                                                                                                                                                                                                                                                                              |
|   | Certificate                   |   | means      an export certificate of airworthiness issued by the Aviation Authority of      the Delivery Location.                                                                                                                                                                                                 |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Final      Price              |   | has      the meaning set out in Clause 3.3                                                                                                                                                                                                                                                                        |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Ground      Training Services |   | means      all training courses performed in classrooms (classical or VACBI courses),      full flight simulator sessions, fixed base simulator sessions, field trips      and any other services provided to the Buyer on the ground pursuant to      this Agreement, and not being Aircraft Training  Services. |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Manufacture      Facilities   |   | means      the various manufacture facilities of the Seller, the Members or any      sub-contractor where the Airframe or its parts are manufactured or      assembled.                                                                                                                                           |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Materiel                      |   | has      the meaning set out in Clause 1.1 of Exhibit H.                                                                                                                                                                                                                                                          |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Members                       |   | means      each of Airbus France S.A.S, Airbus Deutschland GmbH, Airbus Espana S.L.      and Airbus UK Ltd.                                                                                                                                                                                                       |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Non-Excusable      Delay      |   | has      the meaning set out in Clause 11.1.                                                                                                                                                                                                                                                                      |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Predelivery      Payment      |   | means      the payment(s) determined in accordance with Clause5.3.                                                                                                                                                                                                                                                |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Propulsion      Systems       |   | has      the meaning set out in Clause 2.2.                                                                                                                                                                                                                                                                       |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Propulsion      Systems Basic |   |                                                                                                                                                                                                                                                                                                              |
|   | Price                         |   | means      the price of a set of Propulsion Systems as set out in Clause      3.2.                                                                                                                                                                                                                                |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Propulsion      Systems       |   |                                                                                                                                                                                                                                                                                                              |
|   | Reference      Price          |   | means      the reference price of a set of Propulsion Systems as set out in Part 2 of      Exhibit C.                                                                                                                                                                                                             |
|   |                          |   |                                                                                                                                                                                                                                                                                                              |
|   | Propulsion      Systems       |   |                                                                                                                                                                                                                                                                                                              |

----

|   | Manufacturer                        |   | means      the manufacturer of the Propulsion Systems as set out in Clause      2.2.                                                                                                                                                                                                                                                                                                                           |
|--------|-------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Propulsion      Systems Price       |   | is      set out in Part 2 of Exhibit C.                                                                                                                                                                                                                                                                                                                                                                        |
|   | Revision      Formula               |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Ready      for Delivery             |   | means      the time when (i) the Technical Acceptance Process has been successfully      completed and (ii) the Export Airworthiness Certificate has been      issued.                                                                                                                                                                                                                                         |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Scheduled      Delivery Month       |   | has      the meaning set out in Clause 9.1.                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Seller’s      Representatives |   | means      the representatives of the Seller referred to in Clause    15.1.                                                                                                                                                                                                                                                                                                                                    |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Seller      Representatives         |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Services                            |   | means      the services provided by the Seller to the Buyer and from the Buyer to the      Seller pursuant to Clause 15.                                                                                                                                                                                                                                                                                       |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Seller      Service Life Policy     |   | has      the meaning set out in Clause 12.2.                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Spare      Parts                    |   | means      the items of equipment and materiel which may be provided pursuant to      Exhibit H.                                                                                                                                                                                                                                                                                                               |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Specification      Change           |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Notice      or SCN                  |   | means      an agreement in writing between the parties to amend the Specification      pursuant to Clause 2.                                                                                                                                                                                                                                                                                                   |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Specification                       |   | means      either (a) the Standard Specification if no SCNs are applicable or (b) if      SCNs are issued, the Standard Specification as amended by all applicable      SCNs.                                                                                                                                                                                                                                  |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Standard      Specification         |   | means      (i) the A319 standard specification document number J.000.01000 Issue 4      Revision 1 dated April 30, 2001 for the A319 Aircraft a copy of which has      been annexed hereto as Exhibit A or (ii) the A320 standard specification      document number D.000.02000 Issue 5 Revision 1 dated April 30, 2001 for      the A320 Aircraft a copy of which has been annexed hereto as Exhibit      A. |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Supplier                            |   | has      the meaning set out in Clause 12.3.1.1.                                                                                                                                                                                                                                                                                                                                                               |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Supplier      Part                  |   | has      the meaning set out in Clause 12.3.1.2.                                                                                                                                                                                                                                                                                                                                                               |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Supplier      Product               |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Support      Agreement              |   | has      the meaning set out in Clause 12.3.1.3.                                                                                                                                                                                                                                                                                                                                                               |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Technical      Data                 |   | has      the meaning set out in Clause 14.1.                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Total      Loss                     |   | has      the meaning set out in Clause 10.4.                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Type      Certificate               |   | has      the meaning set out in Clause7.1.                                                                                                                                                                                                                                                                                                                                                                     |

----

|   | Warranted      Part |   | has      the meaning set out in Clause12.1.1. |
|--------|---------------------|--------|-----------------------------------------------|

| 0.2 | Clause headings      and the Index are inserted for convenience of reference only and shall be      ignored in the interpretation of thisAgreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 0.3 | In      this Agreement unless the context otherwise  requires: |
|-----|----------------------------------------------------------------|

|   | (a) | references      to Clauses, Appendices and Exhibits are to be construed as references to      the Clauses of, and Appendices, and Exhibits to this Agreement and      references to this Agreement include its Schedules, Exhibits and      Appendices; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | words      importing the plural shall include the singular and vice versa;      and |
|--------|-----|-------------------------------------------------------------------------------------|

|  | (c)  | references      to a person shall be construed as including, without limitation,      references to an individual, firm, company, corporation, unincorporated      body of persons and any state or agency of a  state. |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1 | SALE AND      PURCHASE |
|---|------------------------|

|   | The      Seller shall sell and deliver and the Buyer shall buy and take delivery      twenty-one (21) Aircraft composed of six (6) A319 Aircraft and of fifteen      (15) A320 Aircraft together with Spare Parts on the Delivery Date at the      Delivery Location upon the terms and conditions contained in this      Agreement. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2 | SPECIFICATION |
|---|---------------|

| 2.1 | Airframe      Specification |
|-----|-----------------------------|

| 2.1.1 | Specification |
|-------|---------------|

|   | The      Airframe shall be manufactured in accordance with the Standard      Specification, as modified or varied prior to the date of this Agreement      by the Specification Change Notices listed in Appendix 1 to Exhibit      A. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1.2 | Specification Change Notice      (SCN) |
|-------|----------------------------------------|

|   | The      Specification may be amended by written agreement between the parties in a      Specification Change Notice after the date of this Agreement. Each      Specification Change Notice shall be substantially in the form set out in      Exhibit B and shall set out in detail the particular change to be made to      the Specification and the effect, if any, of such change on design,      performance, weight, time of Delivery of the Aircraft, and on the text of      the Specification. Such SCN may result in an adjustment of the Basic Price      . |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1.3 | Development      Changes |
|-------|--------------------------|

|   | The      Specification may also be revised by the Seller without the Buyer's      consent in order to incorporate development changes if such changes do not      adversely affect price, time of delivery, weight or performance of the      Aircraft, interchangeability or replaceability requirements under the      Specification. In any other case the Seller shall issue to the Buyer a      Manufacturer Specification Change Notice. Development changes are changes      deemed necessary by the Seller to improve the Aircraft, prevent delay or      ensure compliance with thisAgreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1.4 | Specification Change Notices      for Certification |
|-------|-----------------------------------------------------|

|   | The      provisions relating to Specification Change Notices for certification are      set out in Clauses 7.2. and7.3. |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| 2.1.5 | Buyer Import      Requirements |
|-------|--------------------------------|

|   | The      provisions relating to Specification Change Notices for Buyer import      requirements are set out inClause 7.4. |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

| 2.1.6 | Inconsistency |
|-------|---------------|

|   | In      the event of any inconsistency between the Specification and any other      part of this Agreement, this Agreement shall prevail to the extent of such      inconsistency. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.2 | Propulsion      Systems |
|-----|-------------------------|

|   | The      Airframe shall be equipped with a set of two (2) CFM INTERNATIONAL (CFM)      Engines engines (the "Propulsion      Systems"): |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

| Aircraft      Type |   | CFM               |
|--------------------|--------|-------------------|
|               |   |              |
| A319      Aircraft |   | CFM      56-5B5/P |
|               |   |              |
| A320      Aircraft |   | CFM      56-5B4/P |

| 2.3 | Customisation Milestones      Chart |
|-----|-------------------------------------|

|   | Within      *** following signature of the Agreement, the Seller shall provide the      Buyer with a Customisation Milestones Chart setting out the minimum lead      times prior to the Scheduled Delivery Month of the Aircraft, when a mutual      agreement shall be reached (execution of a SCN) in order to integrate into      the Specification, any items requested by the Buyer from the Specification      Changes Catalogues made available by theSeller. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3 | PRICES |
|---|--------|

| 3.1 | A319 Aircraft Basic      Price |
|-----|--------------------------------|

| 3.1.1 | The      Airframe Basic Price is the sum of: |
|-------|----------------------------------------------|

|   | (i) | the      Basic Price of the Airframe corresponding to the Standard Specification      including Nacelles and Thrust Reversers, and excluding Buyer Furnished      Equipment, which is: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | USD | *** |
|--------|-----|-----|

|   | *** |
|--------|-----|

|   | The      Airframe Basic Price includes USD*** |
|--------|-----------------------------------------------|

|   | (ii) | the      budget sum of the  basic prices of all SCNs set forth in      Appendix 1 to Exhibit "A", which is: |
|--------|------|-----------------------------------------------------------------------------------------------------------------------|

|   | USD      *** |
|--------|--------------|

|   | *** |
|--------|-----|

| 3.1.2 | The      Airframe Basic Price has been established in accordance with ***- (the      "Base Period"). |
|-------|------------------------------------------------------------------------------------------------------|

| 3.1.3 | A319 AircraftPropulsion Systems Basic      Price |
|-------|--------------------------------------------------|

|   | CFM      INTERNATIONAL Propulsion Systems |
|--------|-------------------------------------------|

|   | The      Basic Price of a set of two (2) CFM INTERNATIONAL CFM56-5B5/P Engines is      : |
|--------|------------------------------------------------------------------------------------------|

|  | USD  | *** |
|--|-----------|-----|

| 3.2 | A320 Aircraft Basic      Price |
|-----|--------------------------------|

| 3.2.1 | The      Airframe Basic Price is the sum of: |
|-------|----------------------------------------------|

|   | (i) | the      Basic Price of the Airframe corresponding to the Standard Specification      including Nacelles and Thrust Reversers, and excluding Buyer Furnished      Equipment, which is: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | USD | *** |
|--|-----|-----|

----

|   | (ii) | the      budget sum of the Basic Prices of the Specification Change Notices (SCNs)      which is: |
|--------|------|---------------------------------------------------------------------------------------------------|

|  | USD |       *** |
|--|-----|-----------------------------------------|

| 3.2.2 | The      Airframe Basic Price has been established in accordance with *** - (the      "Base Period"). |
|-------|-------------------------------------------------------------------------------------------------------|

| 3.2.3 | A320 AircraftPropulsion Systems Basic      Price |
|-------|--------------------------------------------------|

|   | CFM      INTERNATIONAL Propulsion Systems |
|--------|-------------------------------------------|

|   | The      basic price of a set of two (2) CFM INTERNATIONAL CFM56-5B4/P Propulsion      Systems including standard equipmentis : |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | *** |
|--------|-----|

|   | *** |
|--------|-----|

|   |           |
|--------|----------------|
| 3.3    | Final    Price |

|   | *** |
|--------|-----|

----

| 4. | PRICE      REVISION |
|----|---------------------|

| 4.1 | Revision of Airframe Basic      Price |
|-----|---------------------------------------|

|   | The      Airframe Basic Price is subject to revision in accordance with the      Airframe Price Revision Formula up to and including the Delivery Date as      set forth in Part 1 of Exhibit C |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Revision of Propulsion Systems      Reference Price |
|-----|-----------------------------------------------------|

| 4.2.1. | The      Propulsion Systems Reference Price is subject to revision in accordance      with the Propulsion Systems Price Revision Formula up to and including the      Delivery Date, as set forth in Part 2 of Exhibit  C. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.2 | Modification of Propulsion      Systems Reference Price and Propulsion Systems Price Revision      Formula |
|-------|------------------------------------------------------------------------------------------------------------|

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

----

| 5 | PAYMENTS |
|---|----------|

| 5.1 | Seller's      Account |
|-----|-----------------------|

|   | *** |
|--------|-----|

| 5.2 | Deposit |
|-----|---------|

|   | ***. |
|--------|------|

| 5.3 | Predelivery      Payments |
|-----|---------------------------|

| 5.3.1 | *** |
|-------|-----|

----

| 5.3.2 | *** |
|-------|-----|

| 5.3.3 | *** |
|-------|-----|

| 5.3.4 | *** |
|-------|-----|

----

| 5.3.5 | *** |
|-------|-----|

| 5.4 | Balance of Final      Price |
|-----|-----------------------------|

| 5.4.1 | *** |
|-------|-----|

| 5.4.2 | On      receipt of the Seller’s invoice, and immediately prior to Delivery, the      Buyer shall pay to the Seller the Balance of Final  Price. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Other      Charges |
|-----|--------------------|

|   | *** |
|--------|-----|

| 5.6 | Method of      Payment |
|-----|------------------------|

| 5.6.1 | All      payments provided for in this Agreement shall be made in the United States      Dollars (USD) in immediately availablefunds. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------|

| 5.6.2 | All      payments due to the Seller hereunder shall be made in full, without      set-off, counterclaim, deduction or withholding of any      kind.  Consequently, the Buyer shall procure 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, dues or charges of whatever nature.  If the Buyer is      compelled by law to make any such deduction or withholding the Buyer shall      pay such additional amounts as may be necessary in order that the net      amount received by the Seller after such deduction or withholding shall be      equal to the amounts which would have been received in the absence of such      deduction or withholding and pay to the relevant taxation or other      authorities within the period for payment permitted by applicable law, the      full amount of the deduction orwithholding. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | Default      Interest |
|-----|-----------------------|

|   | If      any payment due to the Seller under this Agreement including but not      limited to any Predelivery Payment, deposit, option fees for the Aircraft      as well as any payment for any spare parts, data, documents, training and      services due to the Seller, is not received on the due date, without      prejudice to the Seller's other rights under this Agreement and at law,      the Seller shall be entitled to interest for late payment calculated on      the amount due from and including the due date of payment up to and      including the date when the payment is received by the Seller at a rate      equal to ***. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ***. |
|--------|------|

| 5.8 | Taxes |
|-----|-------|

| 5.8.1 | The      amounts stated in this Agreement to be payable by the Buyer are exclusive      of value added tax ("VAT") chargeable under the laws of the Delivery      Location and accordingly the Buyer shall pay any VAT chargeable in respect      of supplies to the Buyer as contemplated by this  Agreement. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.8.2 | The      Seller shall pay all other taxes, duties or similar charges of any nature      whatsoever levied, assessed, charged or collected for or in connection      with the fabrication, manufacture, assembly, sale and delivery under this      Agreement of any of the Aircraft, services, instructions and data      delivered or furnished hereunder provided such charges have been      promulgated and are enforceable under the laws of the Delivery      Location. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8.3 | The      Buyer shall bear the costs of and pay any and all taxes, duties or similar      charges of any nature whatsoever not assumed by the Seller under      Clause 5.8.2 including but not limited to any duties or taxes due      upon or in relation to the importation or registration of the Aircraft in      the Buyer's country and/or any withholdings or deductions levied or      required in the Buyer's country in respect of the payment to the Seller of      any amount due by the Buyerhereunder. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.9 | Set-Off |
|-----|---------|

|   | The      Seller may set-off any matured obligation owed by the Buyer to the Seller,      its subsidiaries and Affiliates against any obligation (whether or not      matured) owed by the Seller to the Buyer, regardless of the place of      payment or currency (being understood that if this obligation is      unascertainable it may be estimated, and the set off made in respect of      that estimate). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6 | MANUFACTURE PROCEDURE –      INSPECTION |
|---|-----------------------------------------------|

| 6.1. | Manufacture      Procedure |
|------|----------------------------|

|   | The      Airframe shall be manufactured in accordance with the relevant      requirements of the laws of the jurisdiction of incorporation of the      relevant Member as enforced by the Aviation Authority of such      jurisdiction. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Inspection |
|-----|------------|

| 6.2.1 | Subject      to providing the Seller with certificates evidencing compliance with the      insurance requirements set forth in Clause 19, the Buyer or its duly      authorised representatives (the "Buyer's Inspector(s)") shall be      entitled to inspect the manufacture of the Airframe and all materials and      parts obtained by the Seller for the manufacture of the Airframe on the      following terms and conditions; |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any      inspection shall be made according to a procedure to be agreed upon with      the Buyer but shall be conducted pursuant to the Seller’s own system of      inspection as developed under the supervision of the relevant Aviation      Authority; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      Buyer's Inspector(s) shall have access to such relevant technical data as      is reasonably necessary for the purpose of the  inspection; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any      inspection and any related discussions with the Seller and other relevant      personnel by the Buyer's Inspector(s) shall be at reasonable times during      business hours and shall take place in the presence of relevant inspection      department personnel of the Seller; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the      inspections shall be performed in a manner not to unduly  delay      or hinder the manufacture or assembly of the Aircraft or the performance      of this Agreement by the Seller or any other work in progress at the      Manufacture Facilities. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2.2 | Location of      Inspections |
|-------|------------------------------|

|   | The      Buyer's Inspector(s) shall be entitled to conduct any such inspection at      the relevant Manufacture Facility of the Seller or the Members and where      possible at the Manufacture Facilities of the sub-contractors provided      that if access to any part of the Manufacture Facilities where the      Airframe manufacture is in progress or materials or parts are stored are      restricted for security or confidentiality reasons, the Seller shall be      allowed reasonable time to make the relevant items available      elsewhere. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | Seller's Service for Buyer's      Inspector(s) |
|-----|------------------------------------------------|

|   | For      the purpose of the inspections, and commencing with the date of this      Agreement until the Delivery Date, the Seller shall furnish without      additional charge suitable space and office equipment (including      telephone, internet access, and shared fax and copy machines) in or      conveniently located with respect to the Delivery Location for the use of      a reasonable number of Buyer'sInspector(s). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | *** |
|--------|-----|

----

| 7 | CERTIFICATION |
|---|---------------|

| 7.1 | Type      Certification |
|-----|-------------------------|

| 7.2 | Export Airworthiness      Certificate |
|-----|---------------------------------------|

| 7.2.1 | The      Aircraft shall be delivered to the Buyer with an Export Airworthiness      Certificate. |
|-------|--------------------------------------------------------------------------------------------------|

| 7.2.2 | If,      any time before the date on which the Aircraft is Ready for Delivery, any      law or regulation is enacted, promulgated, becomes effective and/or an      interpretation of any law or regulation is issued which requires any      change to the Specification for the purposes of obtaining the Export      Airworthiness Certificate (a "Change in Law"), the      Seller shall make the required variation or modification and the parties      hereto shall sign a Specification Change Notice which specifies the      effects, if any, upon the guaranteed performances, weights,      interchangeability, time of Delivery, price of the Aircraft and text of      the Specification. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Costs of SCNs for      Certification |
|-----|--------------------------------------|

|   | (i) | for      the account of the Seller if the Change in Law became effective prior to      the date of this Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

----

| 7.4 | Validation of the Export      AirworthinessCertificate |
|-----|--------------------------------------------------------|

----

| 8 | BUYER'S TECHNICAL      ACCEPTANCE |
|---|-----------------------------------|

| 8.1 | Technical Acceptance      Process |
|-----|-----------------------------------|

| 8.1.1 | Prior      to Delivery the Aircraft shall undergo a technical acceptance process,      proposed by the Seller (the "Technical Acceptance Process"). 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 it be established that the      Aircraft does not comply with the Technical Acceptance Process      requirements, 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 such further Technical Acceptance      Process as is necessary to demonstrate the elimination of the      non-compliance. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1.2 | The      Technical Acceptance Process shall: |
|-------|----------------------------------------------|

|   | (i) | take      place at the Delivery Location; |
|--------|-----|-------------------------------------------|

|   | (ii) | be      carried out by the personnel of theSeller; |
|--------|------|----------------------------------------------------|

|   | (iii) | include      a technical acceptance flight which shall not exceed a period of      *** |
|--------|-------|----------------------------------------------------------------------------------------|

| 8.2 | Buyer's      Attendance |
|-----|-------------------------|

| 8.2.1 | The      Buyer shall be entitled to elect to attend the Technical Acceptance      Process. |
|-------|--------------------------------------------------------------------------------------------|

| 8.2.2 | If      the Buyer elects to attend the Technical Acceptance Process, the      Buyer; |
|-------|--------------------------------------------------------------------------------------|

| 8.2.3 | If      the Buyer does not attend and/or fails to co-operate in the Technical      Acceptance Process, the Seller shall be entitled to complete the Technical      Acceptance Process and the Buyer shall be deemed to have accepted the      Technical Acceptance Process. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 | Aircraft      Utilisation |
|-----|---------------------------|

|   | The      Seller shall, without payment or other liability, be entitled to use the      Aircraft prior to Delivery as may be necessary to obtain the certificates      required under Clause 7, and such use shall not prejudice the Buyer's      obligation to accept Delivery of the Aircraft  hereunder. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | However      the Seller shall not be authorised to use the Aircraft during more than      *** for any other purpose without the 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 Aircraft Ready      for Delivery at the Delivery Location within the following      months: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -  A319      Aircraft N°1  | *** |
|-------------------------------------------|-----|
| -  A319      Aircraft N°2  | *** |
| -  A319      Aircraft N°3  | *** |
| -  A319      Aircraft N°4  | *** |
| -  A319      Aircraft N°5  | *** |
| -  A319      Aircraft N°6  | *** |
| -  A320      Aircraft N°1  | *** |
| -  A320      Aircraft N°2  | *** |
| -  A320      Aircraft N°3  | *** |
| -  A320      Aircraft N°4  | *** |
| -  A320      Aircraft N°5  | *** |
| -  A320      Aircraft N°6  | *** |
| -  A320      Aircraft N°7  | *** |
| -  A320      Aircraft N°8  | *** |
| -  A320      Aircraft N°9  | *** |
| -  A320      Aircraft N°10 | *** |
| -  A320      Aircraft N°11 | *** |
| -  A320      Aircraft N°12 | *** |
| -  A320      Aircraft N°13 | *** |
| -  A320      Aircraft N°14 | *** |
| -  A320      Aircraft N°15 | *** |

|   | Each      of such months shall be, with respect to the corresponding Aircraft, the      "Scheduled Delivery      Month". |
|--------|--------------------------------------------------------------------------------------------------------------------------|

| 9.1.2 | The      Seller shall give the Buyer at least *** prior written notice of the      anticipated date on which the Aircraft shall be Ready for      Delivery.  Thereafter the Seller shall notify the Buyer of any      change in such date necessitated by the conditions of manufacture or      flight. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Delivery |
|-----|----------|

| 9.2.1 | The      Buyer shall send its representatives to the Delivery Location to take      Delivery of, and collect, the Aircraft within *** after the date on which      the Aircraft is Ready for Delivery and shall pay the Balance of the Final      Price on or before the DeliveryDate. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2.2 | The      Seller shall deliver and transfer title to the Aircraft free and clear of      all encumbrances to the Buyer provided that the Balance of the Final 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 Price as may reasonably be requested by the Buyer.  Title      to, property in and risk of loss of or damage to the Aircraft shall be      transferred to the Buyer onDelivery. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.2.3 | Should      the Buyer fail to |
|-------|-------------------------------|

|   | (i) | deliver      the signed Certificate of Acceptance to the Seller within the delivery      period as defined in Clause 9.2.1;or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | pay      the Balance of the Final Price for the Aircraft to the Seller within the      above defined period |
|--------|------|-------------------------------------------------------------------------------------------------------------|

|   | then      the Buyer shall be deemed to have rejected delivery of the Aircraft      without warrant when duly tendered to it hereunder. In addition to      Clause 5.7 and the Seller’s other rights under this Agreement, the      Seller shall retain title to the Aircraft but the Buyer shall thereafter      bear all risk of loss of or damage to the Aircraft and 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 such failure, it being understood that the Seller shall be      under no duty to store, park, insure, or otherwise protect the      Aircraft. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | Fly  Away |
|-----|-----------|

| 9.3.1 | The      Buyer and the Seller shall co-operate to obtain any licenses which may be      required by the Aviation Authority of the Delivery Location for the      purpose of exporting 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-Deliveryflights. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10 | EXCUSABLE      DELAY |
|----|----------------------|

| 10.1 | The      Buyer acknowledges that the Aircraft are to be manufactured by Seller in      performance of this Agreement and that the Scheduled Delivery Months are      based on the assumption that there shall be no delay due to causes beyond      the control of the Seller. Accordingly, Seller shall not be responsible      for any delay in the Delivery of the Aircraft or delay or interruption in      the performance of the other obligations of the Seller hereunder due to      causes beyond its control, and not occasioned by its fault or negligence      including (but without limitation) acts of God or the public enemy, war,      civil war, warlike operations, terrorism, insurrections or riots, fires,      explosions, natural disasters, compliance with any applicable foreign or      domestic governmental regulation or order, labour disputes causing      cessation, slowdown or interruption of work, inability after due and      timely diligence to procure materials, equipment or parts, general      hindrance in transportation or failure of a sub-contractor or supplier to      furnish materials, equipment or parts.  Any delay or      interruption resulting from any of the foregoing causes is referred to as      an "Excusable      Delay". |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | If      an Excusable Delay occurs: |
|------|------------------------------------|

|   | (ii) | the      Seller shall not be responsible for any damages arising from or in      connection with such Excusable Delay suffered or incurred by the      Buyer; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      Seller shall not be deemed to be in default in the performance of its      obligations hereunder as a result of such Excusable Delay;    and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the      Seller shall as soon as practicable after the removal of the cause of the      delay resume performance of its obligations under this Agreement and in      particular shall notify to the Buyer the revised Scheduled Delivery      Month. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Termination on Excusable      Delay |
|------|-------------------------------------|

| 10.3.1 | If      the Delivery of any Aircraft is delayed as a result of an Excusable Delay      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      Aircraft so affected by giving written notice to the other party within      *** after the expiry of such *** period provided that the Buyer shall not      be entitled to terminate this Agreement pursuant to this Clause if      the Excusable Delay results from a cause within its    control. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3.2 | If      the Seller concludes that the Delivery of any Aircraft shall be delayed      for more than *** after the last day of the Scheduled Delivery Month due      to an Excusable Delay and as a result thereof reschedules Delivery of such      Aircraft to a date or month reflecting such delay then the Seller shall      promptly notify the Buyer in writing to this effect and shall include in      such notification the new Scheduled Delivery Month. Either party may      thereupon terminate this Agreement with respect to such Aircraft by giving      written notice to the other party within *** after receipt by the Buyer of      the notice of anticipated delay. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.3.3 | If      this Agreement shall not have been terminated with respect to the delayed      Aircraft during the *** period referred to in either Clause 10.3.1 or      10.3.2 above, then the Seller shall be entitled to reschedule Delivery and      the new Scheduled Delivery Month shall be notified to the Buyer and shall      be binding on the parties. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 repair (“Total Loss”), the Seller      shall notify the Buyer to this effect within *** 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 in the      event the specified extension of the Scheduled Delivery Month to a month      is exceeding *** after the last day of the original Scheduled Delivery      Month then this Agreement shall terminate with respect to said Aircraft      unless: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      parties execute an amendment to this Agreement recording the variation in      the Scheduled Delivery Month; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------|

|   | provided,      however, that 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 the model or series of aircraft      which includes the Aircraft purchasedhereunder. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Termination Rights      Exclusive |
|------|-----------------------------------|

|   | In      the event that this Agreement shall be terminated as provided for under      the terms of Clauses 10.3 or 10.4, such termination shall discharge all      obligations and liabilities of the parties hereunder with respect to such      affected Aircraft and undelivered material, services, data or other items      applicable thereto and to be furnished hereunder and neither party shall      have any claim against the other for any loss resulting from such      non-delivery. The Seller shall in no circumstances have any liability      whatsoever for Excusable Delay other than as set forth in this Clause      10. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11 | NON-EXCUSABLE      DELAY |
|----|--------------------------|

| 11.1 | Liquidated      Damages |
|------|-------------------------|

|   | Should      any of the Aircraft not be Ready for Delivery to the Buyer within ***      after the last day of the Scheduled Delivery Month (as varied by virtue of      Clauses 2, 7 and 10) (the "Delivery Period") and      such delay is not as a result of an Excusable Delay or Total Loss (a      "Non-Excusable      Delay"), then the Buyer shall have the right to claim, and the      Seller shall *** |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      amount of such *** in respect of any one  Aircraft. |
|--------|--------------------------------------------------------------|

|   | The      Buyer's right to be paid damages in respect of the Aircraft is conditional      upon the Buyer submitting a claim in respect of such liquidated damages in      writing to the Seller not later than *** after the last day of the      Scheduled Delivery Month. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | Re-negotiation |
|------|----------------|

|   | If,      as a result of Non-Excusable Delay, Delivery does not occur in the period      falling *** after the Delivery Period, the Buyer shall have the right      exercisable by written notice to the Seller given not less than *** nor      more than *** after the expiration of the *** falling after the Delivery      Period to require from the Seller a re-negotiation of the Scheduled      Delivery Month for the affected Aircraft. Unless otherwise agreed between      the Seller and the Buyer during such re-negotiation, the said      re-negotiation shall not prejudice the Buyer's right to receive liquidated      damages in accordance with Clause 11.1 during the period of      Non-Excusable Delay. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Termination |
|------|-------------|

|   | If,      as a result of Non-Excusable Delay, Delivery does not occur in the period      falling *** after the Delivery Period and the parties have not      renegotiated the Delivery Date pursuant to Clause 11.2, either party      shall have the right exercisable by written notice to the other party,      given not less than *** nor more than *** after expiration of such *** to      terminate this Agreement in respect of the affected Aircraft and neither      party shall have any claim against the other in respect of such      nondelivery *** |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4 | Limitation of      Damages |
|------|----------------------------|

|   | The      Buyer and the Seller agree that payment by the Seller of the amounts due      pursuant to Clause 11.1 shall be considered to be a liquidated      damages and has been calculated to compensate the Buyer for its entire      damages for all losses of any kind due to Non-Excusable Delay. The Seller      shall not in any circumstances have any liability whatsoever for      Non-Excusable Delay other than as set forth in this      Clause 11. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12 | WARRANTIES      AND SERVICE LIFE POLICY |
|----|-----------------------------------------|

| 12.1 | Standard      Warranty |
|------|------------------------|

| 12.1.1 | Nature of      Warranty |
|--------|-------------------------|

|   | Subject      to the conditions and limitations as hereinafter provided for and except      as provided for in Clause 12.1.2, the Seller warrants to the Buyer that      each Aircraft and all Warranted Parts as defined hereinafter shall at      Delivery to the Buyer: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | be      free from defects in material ; |
|--------|-----|-----------------------------------------|

|   | (ii) | be      free from defects in workmanship, including without limitation processes      of manufacture ; |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | (iii) | be      free from defects in design (including without limitation the selection of      materials) having regard to the state of the art at the date of such      design ; and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | be      free from defects arising from failure to conform to the Specification,      except to those portions of the Specification relating to performance or      where it is expressly stated that they are estimates, approximations or      design aims. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      the purpose of this Agreement the term "Warranted Part" shall      mean any Seller proprietary component, equipment, accessory or part as      installed on an Aircraft at Delivery of such Aircraft  and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | which      is manufactured to the detailed design of the Seller or a subcontractor of      the Seller or |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (b) | which      bears a part number of the Seller at the time of such      delivery. |
|--------|-----|---------------------------------------------------------------------------------|

| 12.1.2 | Exclusions |
|--------|------------|

|  | (i) | any      defect in the Seller's workmanship incorporated in the installation of      such items in the Aircraft, including any failure by the Seller to conform      to the installation instructions of the manufacturer of such item that      invalidates any applicable warranty from such manufacturer, shall      constitute a defect in workmanship for the purpose of this Clause and be      covered by the warranty set forth in sub-Clause 12.1.1 (ii) ;      and |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | any      defect inherent in the Seller's design of the installation, in view of the      state of the art at the date of such design, which impair the use of such      item shall constitute a defect in design for the purpose of this Clause      and be covered by the warranty set forth in sub-Clause 12.1.1      (iii). |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.1.3 | Warranty      Period |
|--------|----------------------|

| 12.1.4 | Buyer's Remedy and Seller's      Obligation |
|--------|---------------------------------------------|

| 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 the repair, replacement or correction of      any Warranted Part which is defective or to the supply of modification      kits rectifying the defect, at the Seller's expense and option. The supply      of modification kits (SB) rectifying the defect, as well as the direct      labor cost spent by the Buyer in accomplishing the modification shall be      at the Seller’s expense. |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1.4.2 | In      the event of a defect covered by sub-Clauses 12.1.1 (iii), 12.1.1 (iv) and      12.1.2 (ii) becoming apparent within the Warranty Period and the Seller      being obliged to correct such defect, the Seller shall also, if so      requested by the Buyer, make such correction in any Aircraft which has not      yet been delivered to the Buyer; provided,  however, |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | that      the Seller shall not be responsible nor deemed to be in default on account      of any delay in delivery of any Aircraft or otherwise, in respect of the      performance of this Agreement due to the Seller's undertaking to make such      correction and providedfurther |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | that,      rather than accept a delay in the delivery of any such Aircraft, 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. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1.4.3 | 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 spent by the Buyer in      performing inspections of the Aircraft to determine whether or not a      defect exists in any Warranted Part within the Warranty Period or until      the corrective technical solution removing the need for the inspection is      provided by the Seller. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | such      inspections are recommended by a Seller Service Bulletin to be performed      within the Warranty Period; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      inspection is performed outside of a scheduled maintenance check as      recommended by the Seller's Maintenance Planning Document  ; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      reimbursement shall not apply for any inspections performed as an      alternative to accomplishing corrective action when such corrective action      has been made available to the Buyer and such corrective action could have      reasonably been accomplished by the Buyer at the time such inspections are      performed or earlier, |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (iv) | the      labor rate to be used for the reimbursement shall be labor rate defined in      Clause 12.1.7, and |
|--|------|-------------------------------------------------------------------------------------------------------------|

|  | (v) | the      manhours used to determine such reimbursement shall not exceed the      Seller's estimate of the manhours required by the Buyer for such      inspections. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1.5 | Warranty Claim      Requirements |
|--------|----------------------------------|

|  | (i) | the      defect having become apparent within the Warranty Period  ; |
|--|-----|----------------------------------------------------------------------|

|  | (ii) | the      Buyer having submitted to the Seller proof reasonably satisfactory to the      Seller that the claimed defect is due to a matter embraced within this      Clause 12.1, and that such defect has not resulted 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 or any matter covered in Clause      12.1.10 ; |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | the      Buyer having returned as soon as practicable the Warranted Part claimed to      be defective to the repair facilities as may be designated by the Seller,      except when the Buyer elects to repair a defective Warranted Part in      accordance with the provisions of Clause12.1.7; |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | the      Seller having received a Warranty Claim as set forth in Clause      12.1.6. |
|--|------|--------------------------------------------------------------------------------------|

| 12.1.6 | Warranty      Administration |
|--------|------------------------------|

|  | (i) | Claim      Determination |
|--|-----|--------------------------|

|  | (ii) | Transportation      Costs |
|--|------|---------------------------|

|  | (iii) | Return of an      Aircraft |
|--|-------|----------------------------|

----

|  | (iv) | On-Aircraft Work by the      Seller |
|--|------|-------------------------------------|

|  | (v) | Warranty Claim      Substantiation |
|--|-----|------------------------------------|

|  | a) | description      of defect and action taken, ifany, |
|--|----|-----------------------------------------------------|

|  | b) | date      of incident and/or removaldate, |
|--|----|-------------------------------------------|

|  | c) | description      of the defective part, |
|--|----|-----------------------------------------|

|  | d) | part      number, |
|--|----|-------------------|

|  | e) | serial      number (if applicable), |
|--|----|-------------------------------------|

|  | f) | position      on Aircraft, |
|--|----|----------------------------|

|  | g) | total      flying hours or calendar time, as applicable at the date of defect      appearance, |
|--|----|------------------------------------------------------------------------------------------------|

|  | h) | time      since last shop visit at the date of defect    appearance, |
|--|----|----------------------------------------------------------------------|

|  | i) | manufacturer      serial number (“Manufacturer's Serial Number”) of the Aircraft and/or its      registration, |
|--|----|----------------------------------------------------------------------------------------------------------------------------|

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

|  | k) | Warranty      Claim number, |
|--|----|-----------------------------|

|  | l) | date      of Warranty Claim, |
|--|----|------------------------------|

|  | m) | delivery      date of Aircraft or part to theBuyer, |
|--|----|-----------------------------------------------------|

----

|  | (vi) | Replacements |
|--|------|--------------|

|   | Components,      equipment, accessories or parts, which the Seller has replaced pursuant to      this Clause, shall become the Seller's property.  The      replacement components, equipment, accessories or parts provided by the      Seller to the Buyer pursuant to this Clause shall become the Buyer’s      property. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vii) | Seller's      Rejection |
|--|-------|-------------------------|

|  | (viii) | Seller's      Inspection |
|--|--------|--------------------------|

| 12.1.7 | Inhouse      Warranty |
|--------|-----------------------|

|  | (i) | Seller's      Authorization |
|--|-----|-----------------------------|

|  | (ii) | Conditions for Seller's      Authorization |
|--|------|--------------------------------------------|

|  | - | if      the Buyer notifies the Seller's Representative of its intention to perform      Inhouse Warranty repairs before any such repairs are started where the      estimated cost of such repair is in excess of US Dollars      ***.  The Buyer’s notification 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 agrees to use all reasonable efforts to ensure a prompt response      *** and shall not unreasonably withhold authorization  ; |
|--|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | - | if      adequate facilities and qualified personnel are available to the Buyer      ; |
|--|---|---------------------------------------------------------------------------------------|

|  | - | in      accordance with the Seller's written instructions set forth in the      applicable Seller's technical documentation; |
|--|---|------------------------------------------------------------------------------------------------------------------------------|

|  | - | to      the extent specified by the Seller, or, in the absence of such      specification, to the extent reasonably necessary to correct the defect,      in accordance with the standards set forth in Clause    12.1.10. |
|--|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Seller's      Rights |
|--|-------|----------------------|

|  | (iv) | Inhouse Warranty Claim      Substantiation |
|--|------|--------------------------------------------|

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

|  | b) | for      parts required to remedy thedefect: |
|--|----|----------------------------------------------|

|  | c) | detailed      number of labor hours, |
|--|----|--------------------------------------|

|  | d) | Inhouse      Warranty Labor Rate, |
|--|----|-----------------------------------|

|  | e) | total      claim value. |
|--|----|-------------------------|

|  | (v) | Credit |
|--|-----|--------|

|  | - | For      the determination of direct labor costs only manhours spent on      disassembly, inspection, repair, reassembly, and final inspection and test      of the Warranted Part are permissible. Any manhours required for      maintenance work concurrently being carried out on the Aircraft or      Warranted Part are notincluded. |
|--|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | - | The      manhours permissible above shall be multiplied by an agreed labor rate of      US Dollars ***, (“Inhouse      Warranty Labour Rate”) and representing the Buyer’s composite labor      rate meaning the average hourly rate (excluding all fringe benefits,      premium time allowances, social charges, business taxes and the like) paid      to the Buyer’s employees whose jobs are directly related to the      performance of the repair. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Direct      material costs are determined by the prices at which the Buyer acquired      such material, excluding any parts and materials used for overhaul and as      may be furnished by the Seller at nocharge. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vi) | Limitation |
|--|------|------------|

|  | (vii) | Scrapped      Material |
|--|-------|------------------------|

| 12.1.8 | Standard Warranty      Transferability |
|--------|----------------------------------------|

----

| 12.1.9 | Warranty for Corrected,      Replaced or Repaired WarrantedParts |
|--------|------------------------------------------------------------------|

| 12.1.10 | Accepted Industry Standard      Practices - Normal Wear andTear |
|---------|-----------------------------------------------------------------|

| 12.1.10.1 | The      Seller's liability under this Clause 12.1 shall not extend to normal wear      and tear nor to: |
|-----------|----------------------------------------------------------------------------------------------------------|

|  | (i) | any      Aircraft or component, equipment, accessory or part thereof which has been      repaired, altered or modified after Delivery except by the Seller or in a      manner approved by the Seller; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|  | (iii) | any      component, equipment, accessory and part from which the trademark, name,      part or serial number or other identification marks have been removed      ; |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Seller      Service Life Policy |
|------|---------------------------------|

| 12.2.1 | In      addition to the warranties set forth in Clause 12.1, the Seller further      agrees that should any item listed in Exhibit “F” ("Item") sustain any      breakage or defect which can reasonably be expected to occur on a      fleetwide basis, and which materially impairs the utility of the Item      ("Failure"), and      subject to the general conditions and limitations set forth in Clause      12.2.4, then the provisions of this Clause 12.2 (“Seller Service Life      Policy”) shall apply. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.2 | Periods and Seller's      Undertakings |
|--------|----------------------------------------|

| 12.2.2.1 | design      and furnish to the Buyer a correction for such Item with a Failure and      provide any parts required for such correction (including Seller designed      standard parts but excluding industry standard parts),  or, |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.2.2 | replace      such Item. |
|----------|-------------------------|

----

| 12.2.3 | Seller's Participation in the      Costs |
|--------|------------------------------------------|

| 12.2.4 | General Conditions and      Limitations |
|--------|-----------------------------------------|

| 12.2.4.1 | The      undertakings given in this Clause 12.2 shall be valid after the period of      the Seller's warranty applicable to an Item under Clause    12.1. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.4.2 | The      Buyer's remedy and the Seller's obligation and liability under this      Service Life Policy are subject to the prior compliance by the Buyer with      the following conditions: |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | the      Buyer shall maintain log books and other historical records with respect      to each Item adequate to enable determination of whether the alleged      Failure is covered by this Service Life Policy and if so to define the      costs to be borne by the Seller in accordance with Clause      12.2.3 ; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the      Buyer shall keep the Seller informed of any significant incidents relating      to an Aircraft howsoever occurring or recorded; |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | the      Buyer shall comply with the conditions of Clause 12.1.10  ; |
|--|-------|----------------------------------------------------------------------|

|  | (iv) | the      Buyer shall carry out specific structural inspection programs for      monitoring purposes as may be established from time to time by the Seller.      Such programs shall be as compatible as possible with the Buyer's      operational requirements and shall be carried out at the Buyer's expense.      Reports relating thereto shall be regularly furnished to the Seller      ; |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | in      the case of any breakage or defect, the Buyer must have reported the same      in writing to the Seller within *** after any breakage or defect in an      Item becomes apparent as confirmed by Seller’s shop examination, whether      or not said breakage or defect can reasonably be expected to occur in any      other aircraft, and the Buyer shall have informed the Seller of the      breakage or defect in sufficient detail 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 for in this Clause 12.2, any claim under this      Service Life Policy shall be administered as provided for in and shall be      subject to the terms and conditions of Clause  12.1.6. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.4.4 | In      the event that the Seller shall have issued a 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. If such a kit is so offered to the Buyer, then, to the      extent of such Failure and any Failures that could ensue therefrom, the      validity of the Seller's commitment under this Clause 12.2 shall be      subject to the Buyer's incorporating such modification in the relevant      Aircraft, as promulgated by the Seller and in accordance with the Seller's      instructions, within a reasonabletime. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.5 | Transferability |
|--------|-----------------|

| 12.3 | Supplier      Product Support Agreements |
|------|------------------------------------------|

| 12.3.1 | Definitions |
|--------|-------------|

| 12.3.1.1 | “Supplier” means any      supplier of Supplier Parts. |
|----------|-------------------------------------------------------------------|

| 12.3.1.2 | “Supplier Part” means      any component, equipment, accessory or part installed in an Aircraft at      the time of Delivery thereof as to which there exists a Supplier Product      Support Agreement. However, the Propulsion Systems and Buyer Furnished      Equipment and other equipment selected by the Buyer to be supplied by      Suppliers with whom the Seller has no existing enforceable warranty      agreements are not Supplier Parts. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3.1.3 | “Supplier Product Support      Agreement” means an agreement between the Seller and a Supplier      containing enforceable and transferable warranties and in the case of      landing gear suppliers, service life policies for selected structural      landing gear elements. *** |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.3.2 | Supplier's      Default |
|--------|-------------------------|

| 12.3.2.1 | In      the event of any Supplier, under any standard warranty obtained by the      Seller pursuant to Clause 12.3.1, defaulting in the performance of any      material obligation with respect thereto and the Buyer submitting in      reasonable time to the Seller reasonable proof that such default has      occurred, then Clause 12.1 shall apply to the extent the same would have      been applicable had such Supplier Part been a Warranted Part, except that      the Supplier's warranty period as indicated in the Supplier Product      Support Agreement shall apply. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3.2.2 | In      the event of any Supplier, under any Supplier Service Life Policy obtained      by the Seller pursuant to Clause 12.3.1, defaulting in the performance of      any material obligation with respect thereto and the Buyer submitting in      reasonable time to the Seller reasonable proof that such default has      occurred, then Clause 12.2 shall apply to the extent the same would have      been applicable had such Supplier Item been listed in Exhibit F, Seller      Service Life Policy, except that the Supplier's Service Life Policy period      as indicated in the Supplier Product Support Agreement shall      apply. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 shall      provide reasonable assistance to enable the Seller to enforce the rights      so assigned. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.4 | Interface      Commitment |
|------|---------------------------|

| 12.4.1 | Interface      Problem |
|--------|------------------------|

| 12.4.2 | Seller's      Responsibility |
|--------|------------------------------|

| 12.4.3 | Supplier's      Responsibility |
|--------|--------------------------------|

| 12.4.4 | Joint      Responsibility |
|--------|---------------------------|

| 12.4.5 | General |
|--------|---------|

| 12.4.5.1 | All      requests under this Clause 12.4 shall be directed to both the Seller and      the Supplier. |
|----------|------------------------------------------------------------------------------------------------------|

----

| 12.4.5.3 | 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 Clause12. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5 | Waiver,      Release and Renunciation |
|------|---------------------------------------|

|  | (A) | ANY      WARRANTY AGAINST HIDDENDEFECTS; |
|--|-----|------------------------------------------|

|  | (B) | ANY      IMPLIED WARRANTY OF MERCHANTABILITY ORFITNESS; |
|--|-----|---------------------------------------------------------|

|  | (C) | ANY      IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR      USAGE OF TRADE; |
|--|-----|---------------------------------------------------------------------------------------------------------|

|  | (D) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY, WHETHER CONTRACTUAL OR      DELICTUAL AND WHETHER OR NOT ARISING FROM THE SELLER’S AND/OR ITS      SUPPLIERS’ NEGLIGENCE, ACTUAL OR IMPUTED;AND |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (E) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OR DAMAGE TO ANY      AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY, PART, SOFTWARE OR DATA      DELIVERED UNDER THISAGREEMENT. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.6 | Duplicate      Remedies |
|------|-------------------------|

----

| 12.7 | Negotiated      Agreement |
|------|---------------------------|

|   | (i) | the      Specification has been agreed upon after careful consideration by the      Buyer using its judgment as a professional  operator; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (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 waiver,      release and renunciation by the Buyer set forth in      Clause 12.5. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13 | PATENT AND COPYRIGHT      INDEMNITY |
|----|-------------------------------------|

| 13.1 | Indemnity |
|------|-----------|

| 13.1.1 | Subject      to the provisions of Clause 13.2.3, the Seller shall indemnify the      Buyer from and against any damages, costs or expenses including 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; |
|--------|-----|----------------------------------------------------------|

|   | (ii) | any      patent issued under the laws of any other country in which the Buyer may      lawfully operate the Aircraft, provided that: |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | from      the time of design of such Airframe, accessory, equipment or part and      until infringement claims are resolved, such country and the flag country      of the Aircraft are each a party to the Chicago Convention on      International Civil Aviation of December 7, 1944, and are each fully      entitled to all benefits of Article 27thereof, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | from      such time of design and until infringement claims are resolved, such      country and the flag country of the Aircraft are each a party to the      International Convention for the Protection of Industrial Property of      March 20, 1883 ("ParisConvention"); |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | 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 infringement, are members      of The Berne Union and recognise computer software as a "work" under the      Berne Convention. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1.2 | Clause 13.1.1      shall not apply to |
|--------|--------------------------------------------|

|   | (i) | Buyer      Furnished Equipment or Propulsion Systems;or |
|--------|-----|---------------------------------------------------------|

|   | (ii) | parts      not supplied pursuant to a Supplier Product Support Agreement ;      or |
|--------|------|------------------------------------------------------------------------------------|

|   | (iii) | software      not created by the Seller. |
|--------|-------|------------------------------------------|

| 13.1.3 | In      the event that the Buyer is prevented from using the Aircraft (whether by      a valid judgement of a court of competent jurisdiction or by a settlement      arrived at between claimant, Seller and Buyer), the Seller shall at its      expense either : |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | procure      for the Buyer the right to use the same free of charge to the Buyer;      or |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (ii) | replace      the infringing part of the Aircraft as soon as possible with a      non-infringing substitute complying in all other respects 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 commenced      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 particularsthereof; |
|--------|-----|-------------------------------------------------------------|

|   | (ii) | furnish      to the Seller all data, papers and records within the Buyer's control or      possession relating to such patent orclaim; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 such suit or claim provided always      that nothing in this sub-Clause (iii) shall prevent the Buyer from paying      such sums as may be required in order to obtain the release of the      Aircraft, provided such payment is accompanied by a denial of liability      and is made without prejudice; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (v) | act      in such a way as to mitigate damages and / or to reduce the amount of      royalties which may be payable as well as to minimise costs and      expenses. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2.2 | 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 which, in the Seller's opinion, it deems    proper. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.2.3 | The      Seller's liability hereunder shall be conditional upon the strict and      timely compliance by the Buyer with the terms of this Clause and is in      lieu of any other liability to the Buyer express or implied which the      Seller might incur at law as a result of any infringement or claim of      infringement of any patent orcopyright. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | TECHNICAL      DATA AND SOFTWARE SERVICES |
|----|-------------------------------------------|

|  14.1 | Scope |
|------------|-------|

| 14.2 | Aircraft      Identification for Technical Data |
|------|-------------------------------------------------|

| 14.2.1 | For      the customized Technical Data the Buyer agrees to the allocation of fleet      serial numbers (“Fleet      Serial Numbers”) in the form of block of numbers selected in the      range from 001 to 999. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2.2 | The      sequence shall not be interrupted except if two (2) different Propulsion      Systems or two (2) different Aircraft models are  selected. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2.3 | The      Buyer shall indicate to the Seller the Fleet Serial Number allocated to      the Aircraft Manufacturer's Serial Number within *** after execution of      this Agreement. The allocation of Fleet Serial Numbers to Manufacturer's      Serial Numbers shall not constitute any property, insurable or other      interest of the Buyer whatsoever in any Aircraft prior to the Delivery of      such Aircraft as provided for in thisAgreement. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Aircraft      Maintenance Manual (and associatedproducts), |
|--------|---|------------------------------------------------------------|

|   | - | Illustrated      Parts Catalog, |
|--------|---|---------------------------------|

|   | - | Trouble      Shooting Manual, |
|--------|---|-------------------------------|

|   | - | Aircraft      Wiring Manual, |
|--------|---|------------------------------|

|   | - | Aircraft      Schematics Manual, |
|--------|---|----------------------------------|

|   | - | Aircraft      Wiring Lists. |
|--------|---|-----------------------------|

| 14.3 | Supplier      Equipment |
|------|-------------------------|

| 14.3.1 | Information      relating to Supplier equipment which is installed on the Aircraft by the      Seller shall be introduced into the customized Technical Data to the      extent necessary for the comprehension of the systems concerned, at no      additional charge to the Buyer for the Technical Data basic      issue. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.3.2 | The      Buyer shall supply the data related to Buyer Furnished Equipment to the      Seller at least *** before the scheduled delivery of the customized      Technical Data. The Buyer Furnished Equipment data supplied by the Buyer      to the Seller shall be in Englishlanguage. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3.3 | *** |
|--------|-----|

| 14.4 | Delivery |
|------|----------|

| 14.4.1 | The      Technical Data and corresponding revisions to be supplied by the Seller      shall be sent to one address only as advised by the  Buyer. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4.2 | Packing      and shipment of the Technical Data and their revisions shall be carried      out in consideration of the quickest transportation methods. The shipment      shall be Free Carrier (FCA) TOULOUSE, FRANCE and/or Free Carrier (FCA)      HAMBURG, FEDERAL REPUBLIC OF GERMANY, as the term Free Carrier (FCA) is      defined by publication n° 560 of the      International Chamber of Commerce, published in January    2000. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4.3 | The      delivery schedule of the Technical Data shall be phased as mutually agreed      to correspond with Aircraft deliveries. The Buyer agrees to provide ***      notice when requesting a change to the delivery  schedule. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4.4 | It      shall be the responsibility of the Buyer to coordinate and satisfy local      Aviation Authorities' needs for Technical Data. Reasonable quantities of      such Technical Data shall be supplied by the Seller at *** Free Carrier      (FCA) TOULOUSE, FRANCE and/or Free Carrier (FCA) HAMBURG, FEDERAL REPUBLIC      OF GERMANY. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5 | Revision      Service |
|------|-----------------------|

| 14.6 | Service      Bulletins (SB) Incorporation |
|------|-------------------------------------------|

----

| 14.7 | Future      Developments |
|------|--------------------------|

| 14.8 | Technical      Data Familiarization |
|------|-------------------------------------|

| 14.9 | *** |
|------|-----|

| 14.10 | Software      Services |
|-------|------------------------|

| 14.10.1 | Performance      Engineer's Programs |
|---------|--------------------------------------|

| 14.10.1.1 | In      addition to the standard operational manuals, the Seller shall provide to      the Buyer software components and databases composing the Performance      Engineer's Programs (PEP) for the Aircraft      type covered under this Agreement under licence conditions as defined in      Appendix A to this Clause. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.10.1.2 | Use      of the PEP shall be limited to *** copy to be used on *** computer. The      PEP is intended for use on ground only and shall not be embarked on board      of the Aircraft. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.10.1.3 | The      licence to use the PEP shall be granted free of charge for as long as the      revisions of the PEP are *** in accordance with Clause 14.5. At the end of      such period, the yearly revision service for the PEP shall be provided to      the Buyer at the standard commercial conditions set forth in the then      current Seller’s Customer ServicesCatalog. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.10.2 | AirN@v      Basic Consultation |
|---------|--------------------------------|

|   | - | Trouble      Shooting Manual, |
|--------|---|-------------------------------|

|   | - | Aircraft      Maintenance Manual, |
|--------|---|-----------------------------------|

|   | - | Illustrated      Parts Catalog. |
|--------|---|---------------------------------|

----

| 14.10.3 | Airbus      On-Line Services |
|---------|------------------------------|

| 14.10.3.1 | Airbus      On-Line Basic Services |
|-----------|------------------------------------|

| 14.10.3.2 | On-Line      Technical Data |
|-----------|-----------------------------|

| 14.10.3.2.1 | Certain      Technical Data as defined in Exhibit “G” are provided on-line at no cost      as long as revision service is provided in accordance with Clause      14.5. |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.10.3.2.2 | The      list of the Technical Data available on-line may be extended from time to      time. |
|-------------|-----------------------------------------------------------------------------------------------|

| 14.10.3.3 | Access      to Airbus On-Line Services shall be *** of the Buyer’s users (including      ***) for the Technical Data related to the Aircraft which shall be      operated by the Buyer. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.10.3.4 | Access      to Airbus On-Line Services is subject to licence conditions as set forth      in Appendix C hereto. |
|-----------|-----------------------------------------------------------------------------------------------------------------|

| 14.11 | Warranties |
|-------|------------|

| 14.11.1 | The      Seller warrants that the Technical Data are prepared in accordance with      the state of art at the date of their conception. Should any Technical      Data prepared by the Seller contain non-conformity or defect, the sole and      exclusive liability of the Seller shall be to take all reasonable and      proper steps to, at its option, correct or replace such Technical Data.      Notwithstanding the above, no warranties of any kind are given for the      Customer Originated Changes, as set forth in Clause  14.9. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.11.2 | THE      WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE SELLER AND/OR ITS SUPPLIERS      AND REMEDIES OF THE BUYER SET FORTH IN THIS CLAUSE 14 ARE EXCLUSIVE AND IN      SUBSTITUTION FOR, AND THE BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL      OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE SELLER AND/OR ITS      SUPPLIERS AND RIGHTS, CLAIMS AND REMEDIES OF THE BUYER AGAINST THE SELLER      AND/OR ITS SUPPLIERS, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE,      WITH RESPECT TO ANY NON-CONFORMITY OR DEFECT IN ANY TECHNICAL DATA      DELIVERED UNDER THIS AGREEMENT, INCLUDING BUT NOT LIMITED    TO: |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (A) | ANY      WARRANTY AGAINST HIDDENDEFECTS; |
|--|-----|------------------------------------------|

|  | (B) | ANY      IMPLIED WARRANTY OF MERCHANTABILITY ORFITNESS; |
|--|-----|---------------------------------------------------------|

|  | (C) | ANY      IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR      USAGE OF TRADE; |
|--|-----|---------------------------------------------------------------------------------------------------------|

|  | (D) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY, WHETHER CONTRACTUAL OR      DELICTUAL AND WHETHER OR NOT ARISING FROM THE SELLER’S AND/OR ITS      SUPPLIERS’ NEGLIGENCE, ACTUAL OR IMPUTED;AND |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (E) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OR DAMAGE TO ANY      AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART THEREOF OR ANY TECHNICAL      DATA DELIVERED HEREUNDER. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 and/or      its Affiliates as the case maybe. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.12.2 | Whenever      this Agreement provides for manufacturing by the Buyer, the consent given      by the Seller shall not be construed as express or implicit approval      howsoever neither of the Buyer nor of the manufactured products. The      supply of the Technical Data shall not be construed as any further right      for the Buyer to design or manufacture any Aircraft or part thereof or      spare part. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.13 | Confidentiality |
|-------|-----------------|

| 14.13.1 | The      Technical Data and their content are designated as confidential. All such      Technical Data 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 save as permitted therein or      otherwise pursuant to any government or legal requirement imposed upon the      Buyer. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.13.2 | In      the case of the Seller having authorized the disclosure to third parties      either under this Agreement or by an express prior written authorization,      the Buyer shall undertake that such third party agree to be bound by the      same conditions and restrictions as the Buyer with respect to the      disclosed Technical Data. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 1. | Definitions |
|----|-------------|

| 2. | Grant |
|----|-------|

| 3. | Personal      Licence |
|----|-----------------------|

| 4. | Copies |
|----|--------|

----

| 5. | Term |
|----|------|

| 6. | Conditions      of Use |
|----|------------------------|

|  | · | do      its utmost to maintain the Software and the relating documentation in good      working condition, in order to ensure the correct operation      thereof; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | use      the Software in accordance with such documentation and the User Guide, and      ensure that the staff using the Software has received the appropriate      training; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | use      the Software exclusively in the technical environment defined in the      applicable User Guide, except as otherwise agreed in writing between the      parties (subject to said agreement, decompilation may be exceptionally      agreed to by the Licensor in order for the Licensee to obtain the      necessary information to enable the Software to function in another      technical environment); |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | use      the Software for its own internal needs and on its network only, when      technically possible, and exclusively on the machine referenced and the      site declared; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | not      alter, reverse engineer, modify or adapt the Software, nor integrate all      or part of the Software in any manner whatsoever into another software      product; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | when      the source code is provided to the Licensee, the Licensee shall have the      right to study and test the Software, under conditions to be expressly      specified by the Licensor, but in no event shall the Licensee have the      right to correct, modify or translate the  Software; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | nor      correct the Software, except that such correction right may exceptionally      be granted to the Licensee by the Licensor in  writing |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | not      translate, disassemble or decompile the Software, nor create a software      product derived from theSoftware; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------|

|  | · | not      attempt to or authorize a third party to discover or re-write the Software      source codes in any mannerwhatsoever; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------|

|  | · | not      delete any identification or declaration relative to the intellectual      property rights, trademarks or any other information related to ownership      or intellectual property rights provided in the Software by the      Licensor; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | not      pledge, sell, distribute, grant, sub-licence, lease, lend, whether on a      *** basis or against payment, or permit access on a time-sharing basis or      any other utilization of the Software, whether in whole or in part, for      the benefit of a third party; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | not      permit any third party to use the Software in any manner, including but      not limited to, any outsourcing, loan, commercialization of the Software      or commercialization by merging the Software into another software or      adapting the Software, without prior written consent from the      Licensor. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7. | Training |
|----|----------|

| 8. | Proprietary      Rights |
|----|-------------------------|

| 9. | Copyright      Indemnity |
|----|--------------------------|

|  | · | Immediately      notifies the Licensor of any suchclaim; |
|--|--------|----------------------------------------------------------|

|  | · | Makes      no decision or settlement of anyclaim; |
|--|--------|---------------------------------------------------|

|  | · | Allows      the Licensor to have sole control over all negotiations for its      settlement; |
|--|--------|----------------------------------------------------------------------------------------------|

|  | · | Gives      the Licensor all reasonable assistance in connection      therewith. |
|--|--------|---------------------------------------------------------------------------------|

| 10. | Confidentiality |
|-----|-----------------|

----

| 11. | Warranty |
|-----|----------|

|  | (A) | ANY      WARRANTY AGAINST HIDDEN DEFECTS; |
|--|-----|-------------------------------------------|

|  | (B) | ANY      IMPLIED WARRANTY OF MERCHANTABILITY ORFITNESS; |
|--|-----|---------------------------------------------------------|

|  | (C) | ANY      IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR      USAGE OF TRADE; |
|--|-----|---------------------------------------------------------------------------------------------------------|

|  | (D) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY, WHETHER CONTRACTUAL OR      DELICTUAL AND WHETHER OR NOT ARISING FROM THE LICENSOR’S  AND/OR      ITS SUPPLIERS’ NEGLIGENCE, ACTUAL OR IMPUTED;  AND |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (E) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OR DAMAGE TO ANY      AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART THEREOF OR ANY SOFTWARE      DELIVERED HEREUNDER. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | Liability      and Indemnity |
|-----|------------------------------|

| 13. | Excusable      Delays |
|-----|-----------------------|

| 13.1 | The      Licensor shall not be responsible nor be deemed to be in default on      account of delays in delivery or otherwise in the performance of this      Software Licence or any part thereof due to causes reasonably beyond      Licensor’s or its subcontractors’ control including but not limited to:      natural disasters, fires, floods, explosions or earthquakes, epidemics or      quarantine restrictions, serious accidents, total or constructive total      loss, any act of the government of the country of the Licensee or the      governments of the countries of Licensor or its subcontractors, war,      insurrections or riots, failure of transportation, communications or      services, strikes or labor troubles causing cessation, slow down or      interruption of services, inability after due and timely diligence to      procure materials, accessories, equipment or parts, failure of a      subcontractor or vendor to furnish materials, accessories, equipment or      parts due to causes reasonably beyond such subcontractor's or vendor's      control or failure of the Licensee to comply with its obligations arising      out of the present SoftwareLicence. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.2 | The      Licensor shall, as soon as practicable after becoming aware of any delay      falling within the provisions of this Clause, notify the Licensee of such      delay and of the probable extent thereof and shall, subject to the      conditions as hereinafter provided and as soon as practicable after the      removal of the cause or causes for delay, resume performance under the      Software Licence. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | Should      an event of force majeure last for a period extending beyond three (3)      months, the Software Licence shall be automatically terminated, as a      matter of right, unless otherwise agreed in writing, without compensation      for either the Licensor or theLicensee. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | Termination |
|-----|-------------|

| 15. | General      Provisions |
|-----|-------------------------|

| 15.1 | This      Software Licence or part thereof shall not be assigned to a third party      without the prior written consent of the other party except that the      Licensor may assign this Licence to any of the Licensor’s Members or      Affiliates . |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2 | This      Software Licence shall be governed by the laws of France. All disputes      arising in connection with this Software Licence shall be submitted to the      competent courts of Toulouse,France. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | In      the event that any provision of this Software Licence should for any      reason be held ineffective, the remainder of this Software Licence shall      remain in full force andeffect. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4 | 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 the answerback is      recorded by the sender’s telefax machine, shall be deemed to be the      effective date of such notice orrequest. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| o | Maintenance &      Engineering |
|---|------------------------------------|

|  | í | Engineering      Technical Data Service(ETDS) |
|--|--------|-----------------------------------------------|

|   | · | Service      Bulletins - issued since beginning of 1993 (SB’s after July 1997 in SGML;      SB’s between 1993 and July 1997 inPDF) |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Modification      Information Document (MID) |
|--------|--------|----------------------------------------------|

|   | · | All      Operators Telex (AOT) |
|--------|--------|--------------------------------|

|   | · | Flight      Operations Telex (FOT) |
|--------|--------|------------------------------------|

|   | · | Service      Information Letter (SIL) |
|--------|--------|---------------------------------------|

|   | · | Consignes      de Navigabilité (CN) |
|--------|--------|------------------------------------------|

|   | · | Airworthiness      Directives (AD) |
|--------|--------|------------------------------------|

|   | · | Technical      follow-up (TFU) |
|--------|--------|--------------------------------|

|   | · | Operators      Information Telex (OIT) |
|--------|--------|----------------------------------------|

|  | í | Quarterly      Service Report (QSR) |
|--|--------|-------------------------------------|

|  | í | Repair guide      (ARG/AOG) |
|--|--------|-----------------------------|

|  | í | Modification comparison list      (ACCL) |
|--|--------|------------------------------------------|

| o | Training |
|---|----------|

----

| o | Materiel |
|---|----------|

|  | í | Spares      Ordering |
|--|--------|----------------------|

| o  | General      information |
|---------|--------------------------|

|  | í | Customer Services      Catalog |
|--|--------|--------------------------------|

|  | í | Warranty Claim      (CAWA) |
|--|--------|----------------------------|

|  | í | Warranty      claims booking |
|--|--------|------------------------------|

|  | í | Consultation      of the warranty claims status |
|--|--------|-------------------------------------------------|

|  | í | Consultation      of statistics on response time regarding closed/open  files |
|--|--------|-------------------------------------------------------------------------------|

|  | í | Consultation      of warranty guide |
|--|--------|-------------------------------------|

|  | í | Vendor Information Manual      (VIM) |
|--|--------|--------------------------------------|

|  | í | Supplier Product Support      Agreement (SPSA) |
|--|--------|------------------------------------------------|

----

----

| 1. | DEFINITIONS |
|----|-------------|

| The      “ Access Procedure Kit” |   | means      the information necessary for accessing the Database.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| The      “Administrator”         |   | means      the person appointed by the User Entity to be responsible for qualifying,      suspending or canceling the qualification of an Authorized User, gathering      identification information relative to such Authorized User, applying to      the Certification-Service-Provider for the appropriate Certificate,      providing the necessary access equipment as specified by the Seller,      registering the Authorized User and the Authorized User related      Certificate with the Seller and managing the Authorized    Users. |
|                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| The      “Authorized User”       |   | means      a natural person who has been authorized by the Administrator of the User      Entity to access the Database under these Conditions.                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| The      “Certificate”           |   | means      an electronic record (file) that binds a Public Key to the identity of the      owner of a Public – Private Key pair and is signed by the      Certification-Service-Provider.                                                                                                                                                                                                                                                                                                                                                   |
|                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| The      “Certification-Service-       |   | means      an entity  or  a legal  or      natural  person retained  by the  Seller,      who                                                                                                                                                                                                                                                                                                                                                                                         |
| Provider”                              |   | issues      Certificates and/or provides other services related to Electronic      Signature.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| The      “Data”                  |   | means  usual      representation of a piece of information - whether collected or produced      on any medium - so as to facilitate its processing on the      Database.                                                                                                                                                                                                                                                                                                                                                                |
|                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| The      “Database”              |   | means      Data of the Seller organized in such a manner as to be used by computer      programs forming distinct applications to facilitate electronic or      telecommunication Data exchange and computer programs comprising the      necessary electronic elements for the operation of the Database such as a      Database index, viewing systems, and database services known as Airbus      On-Line Services.                                                                                                                            |
|                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| The      “Electronic Signature”  |   | means      data in electronic form which are attached to or logically associated with      other electronic data and which serve as a method of      authentication.                                                                                                                                                                                                                                                                                                                                                                              |

----

| The      “Extracting”                |   | means      temporary or permanent transfer of Data from a Database by any means or      media.                                                                                                                               |
|--------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                             |   |                                                                                                                                                                                                                         |
| The  “Multibase”           |   | means      a set of databases, which compose the Database.                                                                                                                                                                   |
|                                             |   |                                                                                                                                                                                                                         |
| The      “On-Line Help”              |   | means      on-line operating assistance and guidance information.                                                                                                                                                            |
|                                             |   |                                                                                                                                                                                                                         |
| The      “Public key”                |   | means      the public cryptographic key used for the purpose of verifying an      Electronic Signature.                                                                                                                      |
|                                             |   |                                                                                                                                                                                                                         |
| The      “Public Key Infrastructure” |   | means      the system organizing the generation and distribution of keys and      Certificates.                                                                                                                              |
|                                             |   |                                                                                                                                                                                                                         |
| The      “Private Key”               |   | means      the private cryptographic key used for the purpose of creating an      Electronic Signature.                                                                                                                      |
|                                             |   |                                                                                                                                                                                                                         |
| The      “Reader”                    |   | means      equipment to be acquired by the User Entity to be used with the Smartcard      for authentication of the User Entity’s Authorized  Users.                                                                   |
|                                             |   |                                                                                                                                                                                                                         |
| The      “Smartcard”                 |   | means      a card supplied by the Seller, memorizing the User Entity’s Authorized      User’s identity, personal password and Private Key for use with the Reader      for authentication and security purposes. |
|                                             |   |                                                                                                                                                                                                                         |
| The      “Substantial Extraction”    |   | means      permanent or temporary transfer of a substantial part of the Data from the      Database by any means or media.                                                                                                   |
|                                             |   |                                                                                                                                                                                                                         |
| The      “Use”                       |   | means      viewing, Extracting, reviewing, printing, reproducing, on any media, of      Data from the Database, under the conditions set forth in these      Conditions.                                                     |
|                                             |   |                                                                                                                                                                                                                         |
| The      “User Entity”               |   | means      the Buyer.                                                                                                                                                                                                        |
|                                             |   |                                                                                                                                                                                                                         |
| The      “User Guide”                |   | means      documentation, which may be in electronic format, designed to assist the      Authorized User to use theDatabase.                                                                                                 |

| 2. | SCOPE |
|----|-------|

| 2.1 | The      Seller has built an original Database from Data realized and collected by      the Seller related to Airbus aircraft technical and commercial      documentation and information, which is available via a set of services      known as Airbus On-Line Services  (“Airbus On-Line      Services”). The different Airbus On-Line Services may be accessed      via Airbus On-Line Serviceswebsite. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | The      Conditions define the terms and conditions under which the Seller grants      the User Entity, who accepts, a personal, non-exclusive, non-assignable      and non-transferable right to use Data from the Airbus On-Line Services      Database for its own professionalneeds. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.3 | The      User Entity represents to be competent to use and evaluate the Airbus      On-Line Services and represents further that the Database matches its      professional needs. The User Entity also represents to have the adequate      resources to administer its Authorized Users and to implement Electronic      Signature technology. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | LICENCED      RIGHTS |
|----|----------------------|

| 4. | CONFIGURATION |
|----|---------------|

| 5. | DATABASE      CONDITIONS OF USE |
|----|---------------------------------|

| 5.1 | The      User Entity shall appoint one or several Administrators who shall be      responsible for qualifying, suspending or canceling the qualification of      Authorized Users, gathering identification information relative to such      Authorized Users, applying to the Certification-Service-Provider for the      appropriate Certificate, providing the necessary access equipment as      specified by the Seller, registering the Authorized Users and the      Authorized User related Certificates with the Seller and managing the      Authorized Users. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | The      User Entity is only granted the right to use the Airbus On-Line Services      Database services under the terms and conditions set forth herein. The      Database shall only be used for the User Entity’s own professional needs.      The User Entity shall be solely responsible for the choice of the services      it wishes to access. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | DATABASE      AVAILABILITY |
|----|----------------------------|

| 7. | EVIDENTIARY      AGREEMENT |
|----|----------------------------|

| 8. | ELECTRONIC      SIGNATURE |
|----|---------------------------|

|  | - | authentication      of the User Entity and the AuthorizedUser; |
|--|---|----------------------------------------------------------------|

|  | - | authentication      of the Data communicated by and/or to the User Entity and the Authorized      User; |
|--|---|---------------------------------------------------------------------------------------------------------|

|  | - | Electronic      Signature of the User Entity and the Authorized  User. |
|--|---|------------------------------------------------------------------------|

| 9. | CERTIFICATION |
|----|---------------|

| 10. | INTELLECTUAL      PROPERTY RIGHTS |
|-----|-----------------------------------|

| 10.1 | The      User Entity is hereby informed that the Database is owned by the Seller      and/or its Affiliates, as the case may be, pursuant to French intellectual      property laws. The User Entity shall not infringe directly or indirectly      the Seller’s and/or its Affiliates’ ownership rights on the Database. The      User Entity shall not deactivate the Database-integrated security      system. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.2 | The      User Entity is not authorized to make representations in any form      whatsoever, to market or to promote the Database or any Data from the      Database, whether gratuitously or for a consideration. The User Entity is      not authorized to adapt, modify, alter, arrange or translate the Database      for any reason. The User Entity is not authorized to create a new Database      competing with the Seller’s Database. The User Entity is not authorized to      alter in any way the Database’sarchitecture. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | The      User Entity shall inform members of its personnel, agents and      representatives of the terms of the foregoing disposition as well as of      the terms limiting the Database Use provided under these Conditions. The      User Entity shall take all necessary steps to prevent unauthorized access      to the Database. The User Entity shall maintain all copyright mentions      appearing on the Database, Data and documentation including User Guide, on      any media. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | The      foregoing does not operate any assignment of intellectual property rights      to the User Entity but, rather, grants the User Entity rights to use the      Database as provided under theseConditions. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | User      documentation, including User Guide and On-Line Help, is and shall remain      the Seller’s property. The User Entity is granted a right to use such      documentation solely in connection with its Use of the      Database. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | INTELLECTUAL      PROPERTY RIGHTS INDEMNITY |
|-----|---------------------------------------------|

|  | - | immediately      notifies the Seller of any suchclaim; |
|--|---|--------------------------------------------------------|

|  | - | makes      no admission or settlement of anyclaim; |
|--|---|----------------------------------------------------|

|  | - | allows      the Seller to have sole control over suchclaim; |
|--|---|-------------------------------------------------------------|

|  | - | gives      the Seller all reasonable assistance in connection    therewith. |
|--|---|-----------------------------------------------------------------------------|

| 12. | WARRANTY |
|-----|----------|

| 12.1 | The      Seller warrants that the Database is prepared in accordance with the state      of art at the date of conception. Should the Database be found to contain      any non-conformity or defect, the User Entity shall notify the Seller      promptly thereof and the sole and exclusive liability of the Seller under      these Conditions shall be to correct the same at its own      expense. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | The      above warranty is subject to the following  conditions: |
|------|------------------------------------------------------------------|

| 12.2.1 | By      reason of (i) the diversity of the information sources, (ii) the      information processing complexity, (iii) the difficulty to control sources      by cross-checking, the User Entity shall use the Data with      care. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.2 | The      User Entity shall inform the Seller of any error or lack of Data it may      become aware of during the performance of these Conditions. Data      transmission occurs at the User Entity’s own  risks. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.3 | The      User Entity shall be solely responsible for selecting and maintaining      telecommunication lines, information system equipment and configuration,      software, including browser, and software products enabling the User      Entity to access the Airbus Airbus On-Line Services    website. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.4 | The      User Entity is aware of the limitations of the Airbus On-Line Services      website, including in terms of the network’s availability, speed or      malfunction and that it shall in no event hold the Seller responsible for      such shortcomings inherent to the network. Further, the User Entity shall      ensure that any software, including proprietary software, which may      interface with the relevant Database does not affect the Database access      conditions. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.2.5 | The      User Entity shall comply with its obligations related to the access and      Use of the Database defined in theseConditions. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | Waiver,      Release and Renunciation |
|------|---------------------------------------|

|   | (A) | ANY      WARRANTY AGAINST HIDDEN DEFECTS; |
|--------|-----|-------------------------------------------|

|   | (B) | ANY      IMPLIED WARRANTY OF MERCHANTABILITY ORFITNESS; |
|--------|-----|---------------------------------------------------------|

|   | (C) | ANY      IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR      USAGE OF TRADE; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (D) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY, WHETHER CONTRACTUAL OR      DELICTUAL AND WHETHER OR NOT ARISING FROM THE SELLER’S AND/OR ITS      SUPPLIERS’ NEGLIGENCE, ACTUAL OR IMPUTED;AND |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (E) | ANY      OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OR DAMAGE TO ANY      AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART THEREOF, OR THE DATABASE      MADE AVAILABLE HEREUNDER. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | THE      SELLER AND/OR ITS SUPPLIERS 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      NON-CONFORMITY OR DEFECT IN THE DATABASE MADE AVAILABLE UNDER THESE      CONDITIONS. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | FOR      THE PURPOSES OF THIS CLAUSE 12.3, “THE SELLER” SHALL INCLUDE THE SELLER      AND ITS AFFILIATES. |
|--------|-----------------------------------------------------------------------------------------------------------------------|

| 13. | NON      DISCLOSURE |
|-----|---------------------|

|   | The      User Entity shall not disclose the Database or parts thereof and its      contents to any third party without the prior written consent of the      Seller. In so far as it is necessary to disclose aspects of the Database      to employees, such disclosure is permitted only for the purpose for which      the Database is supplied and only to the employee who needs to know the      same. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | ADMINISTRATIVE      AUTHORIZATIONS |
|-----|------------------------------------|

|   | The      Seller and the User Entity shall assist one another and co-operate in      order to obtain and hold all necessary administrative authorizations for      the performance of theseConditions. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15. | PERSONAL      DATA PROTECTION |
|-----|-------------------------------|

|   | The      Seller and the User Entity shall register with the relevant authority or      authorities any personal data files or personal data automated processing      systems as provided under applicable local laws and shall inform each      other of any information system evolution, which could affect such      registration(s). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      User Entity is hereby notified in accordance with article 27 of French law      n°78-17 of January 6, 1978, that the Seller shall request personal data      from the User Entity for accessing the Database. Failure to provide such      data shall prevent access to the Database. Personal data shall be used by      the Seller, its Affiliates and subcontractors for the sole purpose of      connecting and accessing the Database by the User Entity and shall be kept      strictly confidential. Such personal data are protected by the above      mentioned law. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Personal      data may be accessed by the User Entity and, as the case may be, rectified      in writing addressed to the Seller. The User Entity shall notify      Authorized Users of their aforementioned rights and shall personally abide      by applicable rules on personal dataprotection. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16. | EXCUSABLE      DELAYS |
|-----|-----------------------|

| 16.1 | The      Seller shall not be responsible nor be deemed to be in default on account      of delays in delivery or otherwise in the performance of these Conditions      or any part thereof due to causes reasonably beyond the Seller 's or its      subcontractors’ control including but not limited to: natural disasters,      fires, floods, explosions or earthquakes, epidemics or quarantine      restrictions, serious accidents, total or constructive total loss, any act      of the government of the country of the User Entity or the governments of      the countries of the Seller or its subcontractors, war, insurrections or      riots, failure of transportation, communications or services, strikes or      labor troubles causing cessation, slow down or interruption of services,      inability after due and timely diligence to procure materials,      accessories, equipment or parts, failure of a subcontractor or vendor to      furnish materials, accessories, equipment or parts due to causes      reasonably beyond such subcontractor's or vendor's control or failure of      the User Entity to comply with its obligations arising out of the present      Conditions. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | The      Seller shall, as soon as practicable after becoming aware of any delay      falling within the provisions of this Clause, notify the User Entity of      such delay and of the probable extent thereof and shall, subject to the      conditions as hereinafter provided and as soon as practicable after the      removal of the cause or causes for delay, resume performance under these      Conditions. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | Should      an event of force majeure last for a period extending beyond three (3)      months, these Conditions shall be automatically terminated, as a matter of      right, unless otherwise agreed in writing, without compensation for either      the Seller or the UserEntity. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.1 | In      the event of breach of an obligation set forth in these Conditions by      either the Seller or the User Entity, which is not cured within 30 days      from the date of receipt of a written notice notifying the breach, the      non-breaching party shall be entitled to terminate these      Conditions. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 17.2 | In      the event of termination for any cause, the User Entity shall no longer      have any right to use the Database, the Seller shall be entitled to retain      any amount paid for the ongoingyear. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | GENERAL      PROVISIONS |
|-----|-------------------------|

| 18.1 | Assignment |
|------|------------|

| 18.2 | Law |
|------|-----|

| 18.3 | Invalidity |
|------|------------|

| 18.4 | Notices |
|------|---------|

| 15 | SELLER      REPRESENTATIVES |
|----|-----------------------------|

| 15.1 | Customer      Support Manager |
|------|-------------------------------|

| 15.2  | Customer      Services Representatives |
|------------|----------------------------------------|

| 15.2.1 | The      Seller shall provide *** the services of Seller customer services      representatives ("Seller’s      Representatives") acting in an advisory capacity as defined in      Appendix A of this Clause 15. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2.2 | In      the event of a need for non-routine technical assistance, the Buyer shall      have non-exclusive access to the Seller’s Representatives closest to the      Buyer's main base after the end of the assignment of the Seller’s      Representatives referred to in Appendix A of this Clause 15. A list of the      contacts for the Seller’s Representatives closest to the Buyer's main base      shall be provided to theBuyer. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15.2.3 | The      Seller shall cause similar services to be provided by competent      representatives of the Propulsion System Manufacturer and by Supplier      representatives when necessary andapplicable. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2.4 | The      Seller shall provide to the Buyer an annual written accounting of the      consumed man-months and any remaining man-month balance.  Such      accounting shall be deemed as final and acceptable to the Buyer unless the      Seller receives written objection from the Buyer within *** of receipt of      such accounting. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2.  | If      requested by the Buyer, Seller Representative services exceeding the      allocation specified in Appendix A of this Clause 15 may be provided by      the Seller subject to terms and conditions to be mutually      agreed. |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | Buyer's      Service |
|------|----------------------|

| 15.3.1  | From      the date of arrival of the first of the Seller's Representatives and for      the duration of the assignment, the Buyer shall provide *** a suitable      lockable office, conveniently located with respect to the Buyer's      maintenance facilities, with complete office furniture and equipment      including telephone and facsimile connections for the sole use of the      Seller's Representatives. |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3.2 | The      Buyer shall reimburse the Seller the costs for the initial and termination      assignment travel of the Seller’s Representatives of *** confirmed ticket,      Business Class, to and from their place of assignment and TOULOUSE,      FRANCE. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3.3 | The      Buyer shall also reimburse the Seller the costs for air transportation for      the annual vacation of the Seller’s Representatives to and from their      place of assignment and TOULOUSE,FRANCE. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3.4 | In      case of on site support needed, should the Buyer request any of the      Seller's Representatives referred to in Clause 15.2 above, to travel on      business to a city other than his usual place of assignment, the Buyer      shall be responsible for all related transportation costs on Buyer’s      network. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3.5 | The      Buyer shall assist the Seller to obtain from the civil authorities of the      Buyer's country those documents which are necessary to permit the Seller's      Representatives to live and work in the Buyer's  country. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3.6 | The      Buyer shall reimburse to the Seller charges, taxes, duties, imposts or      levies of any kind whatsoever, imposed by authorities of the Buyer's      country upon : |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4 | Withdrawal      of the Seller'sRepresentatives |
|------|------------------------------------------------|

----

| 15.5 | Seller's      Representatives' Status |
|------|---------------------------------------|

| 15.6 | Indemnities |
|------|-------------|

----

|   | The      Seller Representative allocation that is provided to the Buyer pursuant to      Clause 15.2 is defined hereunder. |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | 1 | The      Buyer shall be provided a total of *** man-months of Seller Representative      services at the Buyer's main base or at other locations to be mutually      agreed. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2 | For      clarification, such Seller Representatives’ services shall include initial      Aircraft Entry Into Service (EIS) assistance and sustaining support      services. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3 | The      number of the Seller’s Representatives assigned to the Buyer at any one      time shall be mutually agreed, but at no time shall it exceed ***      men. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4 | Absence      of an assigned Seller’s Representative during normal statutory vacation      periods are covered by the Seller’s Representatives as defined in Clause      15.2.2 and as such are accounted against the total allocation provided in      item 1 above. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16 | TRAINING      AND TRAINING AIDS |
|----|---------------------------------|

| 16.1 | General |
|------|---------|

|   | This      Clause covers 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 quantities of training and training aids to be provided ***      under this Agreement are covered in Appendix A to this Clause      16. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2.2 | The      contractual training courses shall be provided up to *** under this      Agreement. |
|--------|----------------------------------------------------------------------------------------------|

| 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 beprovided. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | Training Organization /      Location |
|------|---------------------------------------|

| 16.3.1 | The      Seller shall provide the training at its training center in BLAGNAC,      FRANCE, or one of its affiliated training  centers. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| 16.3.2 | In      the event of the non-availability of facilities or scheduling imperatives      making training by the Seller impractical, the Seller shall make      arrangements for the provision to the Buyer of such training support      elsewhere. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3.3 | Upon      the Buyer's request the Seller may also provide certain training at 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 sub-Clause 16.6.2 shall be borne by the      Buyer. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 brochure      describing the various Seller’s training courses (“the Seller's Training      Course Catalog”) and will be scheduled as mutually agreed upon during a      training conference (“the Training Conference”) to be held at least      *** |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4.2 | When      training is performed by theSeller: |
|--------|-----------------------------------------------|

|   | (i) | Training      courses shall be the Seller's standard courses as described in the      Seller's applicable Training Course Catalog valid at the time of the      execution of the course. The Seller shall be responsible for all training      course syllabi, training aids and training equipment necessary for the      organization of the trainingcourses; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (ii) | The      training curricula and the training equipment may not be fully customized.      However, academic curricula may be modified to include the most      significant of the Buyer's Aircraft Specification (to the exclusion of      Buyer Furnished Equipment) as known at the latest *** to the date of the      first training course planned for the Buyer. The equipment used for      training of flight and maintenance personnel shall not be fully      customized; however, this equipment shall be configured in order to obtain      the relevant Aviation Authority’s approval and to support the Seller's      teaching programs. Training data and documentation shall not be revised      ; |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Training      data and documentation for trainees receiving the contractual training at      the Seller's training centers shall be ***. Training data and      documentation shall be marked "FOR TRAINING ONLY" and as such are supplied      for the sole and express purpose of training; |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | Upon      the request of the Buyer, the Seller will 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 in BLAGNAC, FRANCE at no charge to the Buyer    ; |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      above shipment shall be delivered Free Carrier (“FCA”) Toulouse, Blagnac      Airport, as the term Free Carrier (“FCA”) is defined by publication N°560      of the International Chamber of Commerce published in January 2000. Title      to and risk of loss of said shipment shall pass to the Buyer upon      delivery. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4.3 | In      the event of the Buyer deciding to cancel or re-schedule a training      course, a minimum advance notice of *** shall be required. Any later      cancellation or change, when courses cannot be allocated to other      customers, shall be deducted from the training allowances defined herein      or be charged to the Buyer, asapplicable. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4.4 | In      fulfillment of its obligation to provide training courses, when the Seller      performs the training courses, the Seller shall deliver to the trainees a      certificate of completion at the end of any such training course. The      Seller's certificate does not represent authority or qualification by any      official Aviation Authorities but may be presented to such officials in      order to obtain relevant formalqualification. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      the event of the training being provided by a training provider selected      by the Seller, the Seller shall cause such training provider to deliver a      certificate of completion at the end of any such training course. Such      certificate shall not represent authority or qualification by any official      Aviation Authorities but may be presented to such officials in order to      obtain relevant formalqualification |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.5  | Prerequisites |
|------------|---------------|

| 16.5.1 | Training      will be conducted in English and all training aids are written in English      using common aeronautical terminology. Trainees must have the prerequisite      experience as defined in Appendix "B" to this Clause  16. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Furthermore,      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. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.5.2 | 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 check 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 thus provided. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 TrainingConference. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      the event the Seller should determine that a trainee lacks the required      entry level, such trainee shall, following consultation with the Buyer, be      withdrawn from the program and shall then be considered to be at the      Buyer's disposal. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6 | Logistics |
|------|-----------|

| 16.6.1 | Trainees |
|--------|----------|

| 16.6.1.1 | The      Seller shall provide free local transportation by bus for the Buyer's      trainees to and from designated pick up points and the Seller’s or the      Seller's affiliated trainingcenter. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6.1.2 | Living      expenses for the Buyer's trainees are to be borne by the      Buyer. |
|----------|----------------------------------------------------------------------------------|

| 16.6.2 | Seller's Instructors – Training      at External Location |
|--------|-----------------------------------------------------------------|

|   | In      the event that 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 related      to the assignment of such instructors and their performance of the duties      as aforesaid. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6.2.1 | Living      Expenses |
|----------|----------------------|

|   | Such      expenses, covering the entire period from day of secondment 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 expenses on the basis of *** during the Training      Conference. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16.6.2.2 | Air    Travel |
|----------|---------------|

|   | The      Buyer shall reimburse the Seller the costs for the Seller's instructors in      confirmed business class to and from the Buyer's designated training site      and the Seller's training center. The Seller shall make its reasonable      efforts to use Buyer’s network. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6.2.3 | Training      Material |
|----------|------------------------|

|   | The      Buyer shall reimburse the Seller the cost of shipment for the training      material needed to conduct suchcourses. |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| 16.6.2.4 | Transportation      Services |
|----------|------------------------------|

|   | The      Buyer shall be solely liable for any and all delay in the performance of      the training outside of the Seller's training centers associated with the      transportation services describedabove. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6.3 | Training Equipment Availability      - Training at ExternalLocation |
|--------|---------------------------------------------------------------------|

|   | 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 the Seller shall be provided by the Buyer in      accordance with the Seller'sspecifications. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 (regular      transition program or a cross crew qualification program as applicable)      for the Buyer's flight crews, each of which shall consist of *** captain      *** and *** first officer, as defined in Appendix A to this Clause 16. The      training manual used shall be the Seller’s Flight Crew Operating      Manual. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7.1.2 | Whenever      base flight training is required, the Buyer shall use its delivered      Aircraft for said base flight training, which shall *** session of *** per      pilot. When such base flight crew training is performed at a designated      site of the Seller, the Seller shall provide *** line maintenance,      including servicing, preflight checks and changing of minor components,      subject to conditions agreed in the present  Agreement. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7.1.3 | The      Buyer shall provide mutually agreed spare parts as required to support      said Aircraft in-flight training and shall provide insurance in line with      Clause 16.12. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7.1.4 | In      all cases, the Buyer shall bear all expenses such as 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 defined in Appendix A to this Clause  16. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7.2.2 | The      Buyer shall reimburse the expenses for each such instructor in accordance      with Clause 16.6.2. Additional pilot instructors can be provided at the      Buyer's expense and upon conditions to be mutually agreed      upon. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7.3 | Cabin Attendants'      Familiarization Course |
|--------|-----------------------------------------------|

|   | The      Seller shall provide cabin attendants' course(s) to the Buyer's cabin      attendants, as defined in Appendix A to this Clause  16. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      cabin attendants' course, when incorporating the features of the Buyer's      Aircraft, can be given at the earliest *** before the delivery date of the      Buyer's first Aircraft. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7.4 | Performance / Operations      Course |
|--------|--------------------------------------|

|   | The      available courses are listed in the Seller's applicable Training Courses      Catalog. |
|--------|-------------------------------------------------------------------------------------------------|

| 16.8  | Maintenance      Training |
|------------|---------------------------|

|   | The      Seller shall provide maintenance training for the Buyer's ground personnel      as defined in Appendix A to this Clause16. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | The      available courses are listed in the Seller's applicable Training Courses      Catalog. |
|--------|-------------------------------------------------------------------------------------------------|

|   | The      Buyer shall provide the Seller with an attendance list of trainees at the      latest *** before the start of the training  course. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 16.8.1 | On-the-Job      Training |
|--------|--------------------------|

|   | Upon      the Buyer's request, the Seller may be consulted to identify competent      outside organizations to provide on-the-job training, which shall be at      the Buyer's charge. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.8.2  |                      Line Maintenance Initial      Operating ExperienceTraining |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.8.2.1 | This      line maintenance training shall cover training in handling and servicing      of Aircraft, flight crew / maintenance coordination, use of Technical      Data, CAATS, ADRES, and any other activities which may be deemed necessary      after delivery of the firstAircraft. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16.8.2.2 | 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. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.9  | Supplier      and Engine Manufacturer Training |
|------------|------------------------------------------------|

|   | The      Seller shall ensure that major Suppliers and the applicable Propulsion      System Manufacturer provide maintenance training and overhaul training on      their products at appropriatetimes. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A      list of the Suppliers concerned may be supplied to the Buyer upon      request. |
|--------|----------------------------------------------------------------------------------------|

| 16.10  | Training      Aids for the Buyer’s TrainingOrganization |
|-------------|---------------------------------------------------------------|

| 16.10.1 | The      Seller shall provide to the Buyer the Airbus Computer Based Training      (Airbus CBT) and training aids, as used in the Seller's      training centers, *** as defined in Appendix A to this Clause      16. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Airbus CBT and training aids supplied to the Buyer shall be similar to      those used in the Seller’s training centers for the training provided for      the Buyer. The Airbus CBT shall be revised during the period when training      courses covered by this Agreement are performed for the Buyer in the      Seller’s training center and within the limit defined in Clause      16.2.2. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10.2 | Delivery |
|---------|----------|

| 16.10.2.1 | The      Seller shall deliver to the Buyer the Airbus CBT and training aids as      defined in Appendix A to this Clause 16, at a date to be mutually agreed      during the Training Conference. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10.2.2 | Those      items supplied to the Buyer pursuant to Clause 16.10.1 above shall be      delivered FCA Toulouse, Blagnac Airport. Title to and risk of loss of said      items shall pass to the Buyer upondelivery. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10.2.3 | All      costs related to transportation and insurance of said items from the FCA      point to the Buyer's facilities shall be at the Buyer's      expense. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10.3  | Installation |
|---------------|--------------|

| 16.10.3.1 | Upon      the Buyer’s request, the Seller may assist the Buyer with the initial      installation of the Airbus CBT at the Buyer's facility following      notification in writing that the various components, which are in      accordance with specifications defined in the Airbus CBT Technical      Catalog, are ready for installation and available at the Buyer's      facility. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16.10.3.2 | The      Buyer shall provide any and all the necessary hardware on which the Airbus      CBT shall be installed and Seller shall not be responsible for any      incompatibility of such hardware with the Airbus  CBT. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10.3.3 | The      Airbus CBT will be installed by the Buyer's personnel, who shall have      followed the Seller's Airbus CBT Familiarization, and the Seller shall be      held harmless from any damage to person and/or to property caused by or in      any way connected with the handling and/or installation of the Airbus CBT      by the Buyer's personnel. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10.3.4 | The      Buyer shall reimburse the expenses in accordance with Clause 16.6.2, for      the Seller's personnel required at the Buyer's facility to conduct Airbus      CBT Familiarization and/or provide installation  assistance. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10.4 | License |
|---------|---------|

| 16.10.4.1 | The      Seller shall grant the Buyer a Licence to use the Airbus CBT, as defined      in Appendix C to this Clause 16. |
|-----------|-------------------------------------------------------------------------------------------------------------------------|

| 16.10.4.2 | Supply      of additional sets of courseware supports, as well as any extension to the      Licence of such courseware, shall be subject to terms and conditions to be      mutually agreed. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10.5 | The      Seller shall not be responsible and hereby disclaims any and all      liabilities resulting from or in connection with the use by the Buyer of      the Airbus CBT and training aids at the Buyer’s  facilities. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.11 | Proprietary      Rights |
|-------|-------------------------|

|   | The      Seller's training data and documentation, Airbus CBT and training aids are      proprietary to the Seller and its suppliers and the Buyer agrees not to      disclose the content of the courseware or any information or documentation      provided by the Seller in relation to training in whole or in part, to any      third party without the prior written consent of the    Seller. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.12  |                      Indemnities      and Insurance |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | INDEMNIFICATION      PROVISIONS AND INSURANCE REQUIREMENTS APPLICABLE TO THIS CLAUSE 16 ARE AS      SET FORTH IN CLAUSE 19. |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

----

| 1. | FLIGHT      OPERATIONS TRAINING |
|----|---------------------------------|

| 1.1 | Flight      Crew Line Initial OperatingExperience |
|-----|---------------------------------------------------|

|   | The      Seller shall provide to the Buyer pilot instructor(s) *** for a period of      *** pilot instructor months. |
|--------|----------------------------------------------------------------------------------------------------------------------|

| 1.2  | Performance      / Operations Course(s) |
|-----------|-----------------------------------------|

|   | 1.2.1 | The      Seller shall provide to the Buyer *** of performance / operations training      *** for the Buyer's personnel. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------|

| 1.2.2 | The      above trainee days shall be used solely for the performance/operations      training courses as defined in the Seller’s applicable Training Course      Catalog. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | MAINTENANCE      TRAINING |
|---|---------------------------|

|   | 2.1 | Maintenance      Training Courses |
|--------|-----|-----------------------------------|

|   | 2.1.1 | The      Seller shall provide to the Buyer *** per Aircraft up to a maximum of ***      for the Buyer's personnel. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------|

|   | 2.1.2 | The      above trainee days shall be used solely for the Maintenance training      courses as defined in the Seller’s applicable Training Courses      Catalog. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.1.3 | Notwithstanding      the trainee days allowance in Clause 2.1.1 above, the number of Engine      Run-up courses shall be limited to *** course for *** Aircraft and to a      *** courses in total. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3  | TRAINEE      DAYS ACCOUNTING |
|---------|------------------------------|

|   | Trainee      days are counted as follows: |
|--------|-------------------------------------------|

|   | - | for      instruction at the Seller's training centers : *** of instruction for ***      trainee equals ***. The number of trainees at the beginning of the course      shall be counted as the number of trainees considered to have taken the      course. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | - | for      instruction outside of the Seller's training centers : *** of      secondment of *** Seller instructor equals the actual number of trainees      attending the course or a ***. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4  | TRAINING      AIDS FOR BUYER'S TRAININGORGANIZATION |
|---------|-----------------------------------------------------|

----

| - | CAPTAIN      prerequisites |
|---|----------------------------|

|   | . | Fluency      in English |
|--------|---|-------------------------|

|   | . | 1500      hours minimum flying experience aspilot |
|--------|---|---------------------------------------------------|

|  | .  | 1000      hours experience on FAR/JAR 25aircraft |
|--|---------|--------------------------------------------------|

|  | . | 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 |
|---------|----------------------------------|

|   | . | Fluency      in English |
|--------|---|-------------------------|

|  | .  | 500      hours minimum flying experience as pilot of fixed wing      aircraft |
|--|---------|-------------------------------------------------------------------------------|

|  | .  | 300      hours experience on FAR/JAR 25aircraft |
|--|---------|-------------------------------------------------|

|  | .  | 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 mustfollow: |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | (i) | an      adapted course (example : if not fluent in English, an adapted course with      a translator to be provided by the Buyer)or, |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | an      ELT (Entry Level Training) program before coming to the training center to      follow the regular or the adaptedcourse. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------|

| - | Maintenance Personnel      prerequisites |
|---|------------------------------------------|

|  | .  | Fluency      in English |
|--|---------|-------------------------|

|  | .  | Experience      on first or second jet transport category  aircraft |
|--|---------|---------------------------------------------------------------------|

----

----

| 17  | EQUIPMENT      SUPPLIER PRODUCT SUPPORT |
|----------|-----------------------------------------|

| 17.1 | Equipment      Supplier Product Support Agreements |
|------|----------------------------------------------------|

| 17.1.1 | The      Seller has obtained enforceable and transferable product support      agreements from Suppliers of Seller Furnished Equipment listed in the      Specification. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.1.2 | These      agreements are based on the "World Airlines Suppliers Guide" and include      Supplier commitments as contained in the "Supplier Product Support      Agreements" which include the following  provisions: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.1.2.1 | Technical      data and manuals required to operate, maintain, service and overhaul the      Supplier Parts. Such technical data and manuals shall be prepared in      accordance with the applicable provisions of ATA Specification including      revision service and be published in the English language. The Seller      shall recommend that software data, where applicable, be supplied in the      form of an appendix to the Component Maintenance Manual, such data shall      be provided in compliance with the applicable ATA      Specification. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.1.2.2 | Warranties      and guarantees including standard warranties. In addition, landing gear      Suppliers shall provide service life policies for selected structural      landing gear elements. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.1.2.3 | Training      to ensure efficient operation, maintenance and overhaul of the Supplier      Parts for the Buyer's instructors, shop and line service      personnel. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.1.2.4 | Spares      data in compliance with ATA 200/2000 Specification, initial provisioning      recommendations, spare parts and logistic service including routine and      expedited deliveries. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.1.2.5 | Technical      service to assist the Buyer with maintenance, overhaul, repair, operation      and inspection of Supplier Parts 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" and shall take remedial      action together with the Buyer ifnecessary. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 18 | BUYER FURNISHED      EQUIPMENT |
|----|--------------------------------|

| 18.1 | Administration |
|------|----------------|

| 18.1.1 | ***,      the Seller shall provide for the installation of those items of equipment      which are identified in the Specification as being furnished by the Buyer      ("Buyer Furnished      Equipment" or "BFE"), provided that      they are referred to in the Airbus BFE Catalog of Approved Suppliers by      Products valid at time of ordering of the concerned  BFE. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 including the description of 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 detailed description and      information by the dates so specified.  Such information,      dimensions and weights shall not thereafter be revised unless authorised      by a Specification Change Notice. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Seller shall also furnish in due time to the Buyer a schedule of dates and      indication of shipping addresses for delivery of BFE and, where requested      by the Seller, additional spare BFE to permit installation in the Aircraft      and delivery of the Aircraft in accordance with the delivery      schedule.  The Buyer shall provide such equipment by such dates      in a serviceable condition, in order to allow performance of any assembly,      test, or acceptance process in accordance with the industrial      schedule. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Buyer shall also provide, when requested by the Seller, at AIRBUS FRANCE      S.A.S. works in TOULOUSE (FRANCE) and/or at AIRBUS DEUTSCHLAND GmbH,      Division Hamburger Flugzeugbau Works in HAMBURG (FEDERAL REPUBLIC OF      GERMANY) 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 anyBFE. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.1.2 | The      Seller shall be entitled to refuse any item of BFE which it considers      incompatible with the Specification, the above mentioned engineering      definition or the certificationrequirements. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.1.3 | The      BFE shall be imported into FRANCE or into the FEDERAL REPUBLIC OF 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) according to the Incoterms      definition. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Shipping      Addresses: |
|--------|--------------------------|

|   | AIRBUS      FRANCE S.A.S. |
|--------|---------------------------|

|   | 316      Route de Bayonne |
|--------|---------------------------|

|   | 31300      TOULOUSE |
|--------|---------------------|

|   | FRANCE |
|--------|--------|

|   | or |
|--------|----|

----

|   | Division      Hamburger Flugzeugbau |
|--------|-------------------------------------|

|   | Kreetslag      10 |
|--------|-------------------|

|   | 21129      HAMBURG |
|--------|--------------------|

|   | FEDERAL      REPUBLIC OF GERMANY |
|--------|----------------------------------|

|   | as      provided in Clause 18.1. |
|--------|---------------------------------------|

| 18.1.4 | If      the Buyer requests the Seller to supply directly certain items which are      considered as BFE according to the Specification and if such request is      notified to the Seller in due time in order not to affect the Scheduled      Delivery Month of the Aircraft, the Seller may agree to order such items      subject to the execution of a Specification Change Notice reflecting the      effect on price, escalation adjustment, and any other conditions of the      Agreement.  In such a 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 which      shall be the subject of separate arrangements between the Buyer and the      relevant supplier. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2 | Aviation Authorities'      Requirements |
|------|-----------------------------------------|

|   | The      Buyer is responsible for, at its expense, and warrants that BFE shall be      manufactured by a qualified supplier, shall meet the requirements of the      applicable Specification, shall comply with applicable requirements      incorporated by reference to the Type Certificate and listed in the Type      Certificate Data Sheet, shall be approved by the Aviation Authorities      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. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3 | Buyer's Obligation and Seller's      Remedies |
|------|-----------------------------------------------|

| 18.3.1 | Any      delay or failure in complying with the foregoing warranty or in providing      the descriptive information or service representatives mentioned in      Clause 18.1 or in furnishing the BFE in serviceable condition at the      requested delivery date or in obtaining any required approval for such      equipment under the above mentioned Aviation Authorities regulations may      delay the performance of any act to be performed by the Seller, and cause      the Final Price of the Aircraft to be adjusted in accordance with the      updated delivery schedule and to include in particular the amount of the      Seller's additional costs, attributable to such delay or failure such as      storage, taxes, insurance and costs of out-of sequence      installation. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3.2 | Further,      in any such event, the Seller may: |
|--------|--------------------------------------------------|

|   | (i) | select,      purchase and install an equipment similar to the involved one, in which      event the Final Price of the affected Aircraft shall also be increased by      the purchase price of such equipment plus reasonable costs and expenses      incurred by the Seller for handling charges, transportation, insurance,      packaging and if so required and not already provided for in the price of      the Aircraft for adjustment and calibration;or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | if      the BFE shall be so delayed by more than ***, or unapproved *** deliver      the Aircraft without the installation of such equipment, notwithstanding      the terms of Clause 7 insofar as it may otherwise have applied, and      the Seller shall thereupon be relieved of all obligations to install such      equipment.  The Buyer may also elect to have the Aircraft so      delivered. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 18.4 | Title and Risk of      Loss |
|------|-----------------------------|

| 19 | INDEMNIFICATION AND      INSURANCE |
|----|------------------------------------|

| 19.1 | Indemnities Relating to      Inspection, Technical Acceptance Process and Ground      Training |
|------|------------------------------------------------------------------------------------------------|

| 19.1.1 | The      Seller shall, except in case of gross negligence or wilful misconduct of      the Buyer, its directors, officers, agents or employees, be solely liable      for and shall indemnify and hold harmless the Buyer, its directors,      officers, agents and employees, its Affiliates and their respective      insurers from and against all liabilities, claims, damages, costs and      expenses (including legal expenses and attorney fees) in respect of loss      of or damage to the Seller's property and/or injury to or death of the      directors, officers, agents or employees of the Seller and/or from and      against all liabilities, claims, damages, costs and expenses (including      legal expenses and attorney fees) for any damage caused by the Seller to      third parties arising out of or in any way connected with any ground      check, check or controls under Clause 6 or Clause 8 of this Agreement      and/or Ground Training Services and for any damage caused by the Buyer      and/or the Seller to third parties arising out of or in any way connected      with technical acceptance flights under Clause 8 of this      Agreement. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.1.2 | The      Buyer shall, except in case of gross negligence or wilful misconduct of      the Seller, its directors, officers, agents or employees, be solely liable      for and shall indemnify and hold harmless the Seller, its Affiliates, its      Suppliers and their respective insurers from and against all liabilities,      claims, damages, costs and expenses (including legal expenses and attorney      fees) in respect of loss of or damage to the Buyer’s property and/or      injury to or death of the directors, officers, agents or employees of the      Buyer and/or from and against all liabilities, claims, damages, costs and      expenses (including legal expenses and attorney fees) for any damage      caused by the Buyer to third parties, arising out of or in any way      connected with any ground check, check or controls under Clause 6 or      Clause 8 of this Agreement and/or Ground Training  Services. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | Indemnities Relating to      Training on Aircraft afterDelivery |
|------|-----------------------------------------------------------------|

| 19.2.1 | The      Buyer shall, except in the case of gross negligence or wilful misconduct      of the Seller, its directors, officers, agents and employees, be solely      liable for and shall indemnify and hold harmless the Seller, its      Affiliates, its Suppliers and their respective insurers from and against      all liabilities, claims, damages, costs and expenses (including legal      expenses and attorney fees) incident thereto or incident to successfully      establishing the right to indemnification, for injury to or death of any      person (including any of the Buyer's directors, officers, agents and      employees utilising such training services, but not directors, officers,      agents and employees of the Seller) and/or for loss of or damage to any      property and/or for loss of use thereof arising (including the aircraft on      which the training services are performed), arising out of or in any way      connected to the performance of any Aircraft Training      Services. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.2.2 | The      foregoing indemnity shall not apply with respect to the Seller’s legal      liability towards any person other than the Buyer, its directors,      officers, agents or employees arising out of an accident caused solely by      a product defect in the Aircraft delivered to and accepted by the Buyer      hereunder. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3 | Indemnities relating to Seller      Representatives Services |
|------|--------------------------------------------------------------|

| 19.3.1 | The      Buyer shall, except in case of gross negligence or wilful misconduct of      the Seller, its directors, officers, agents or employees, be solely liable      for and shall indemnify and hold harmless the Seller,      its  Affiliates, its Suppliers and their respective insurers      from and against all liabilities, claims, damages, costs and expenses      (including legal expenses and attorney fees) for all injuries to or death      of persons (excepting injuries to or death of the Seller’s      Representatives) and for loss of or damage to property and/or loss of use      thereof howsoever arising out of or in connection with the Seller’s      Representatives’ Services. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3.2 | The      Seller shall, except in case of gross negligence or wilful misconduct of      the Buyer, its directors, officers, agents or employees, be solely liable      for and shall indemnify and hold harmless the Buyer, its directors,      officers, agents and employees, its Affiliates and their respective      insurers from and against all liabilities, claims, damages, costs and      expenses (including legal expenses and attorney fees) for all injuries to      or death of the Seller’s Representatives in connection with the Seller’s      Representatives’ Services. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4 | Insurances |
|------|------------|

|   | For      all training periods on aircraft, the Buyer shall cause the Seller, as      defined in Clause 19.5 hereof, its Affiliates, its Suppliers and their      respective insurers to be named as additional insureds under the Buyer’s      Comprehensive Aviation Legal Liability insurance policies, including War      Risks and Allied Perils, to the extent of the Buyer's undertaking set      forth in Clause 19.2.1. With respect to the Buyer's Hull All Risks      and Hull War Risks insurances and Allied Perils, the Buyer shall cause the      insurers of the Buyer's hull insurance policies to waive all rights of      subrogation against the Seller, as defined in Clause 19.5 hereof, its      Affiliates, its Suppliers and their respective insurers to the extent of      the Buyer's undertaking set forth in  Clause 19.2.1. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Any      applicable deductible shall be borne by the Buyer. With respect to the      above policies, the Buyer shall furnish to the Seller, not less than seven      (7) working days prior to the start of any such training period,      certificates of insurance, in English, evidencing the limit of liability      cover and period of insurance 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 Comprehensive 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 Suppliers and their respective insurers, have been waived      to the extent of the Buyer's undertaking and specifically referring to      Clause 19.2.1 and to thisClause 19.4. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5 | Seller  and      Affiliates |
|------|---------------------------------------|

|   | For      the purposes of this Clause 19, "the Seller and its Affiliates"      include the Seller, its subsidiaries, Airbus North America Customer      Services, Hua-Ou Airbus - CASC Aviation Training Center, the Members,      Airbus S.A.S. and its shareholders, each of the associated      sub-contractors, the assignees of each of the foregoing, and their      respective directors, officers, agents and  employees. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.6 | Notice of      Claims |
|------|-----------------------|

|   | If      any claim is made or suit is brought against either party (or its      respective directors, officers, agents or employees) for damages for which      liability has been assumed by the other party in accordance with the      provisions of this Agreement, the party against which a claim is so made      or suit is so brought shall promptly give notice to the other party, and      the latter shall (unless otherwise requested by the former party against      which a claim is so made or suit is so brought, in which case the other      party nevertheless shall have the right to) assume and conduct the defence      thereof, or effect any settlement which it, in its opinion, deems      proper. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20 | TERMINATION |
|----|-------------|

| 20.1 | Termination for      Insolvency |
|------|---------------------------------|

|   | In      the event that either the Seller or theBuyer: |
|--------|-------------------------------------------------------|

|   | (a) | makes      a general assignment for the benefit of creditors or becomes      insolvent; |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (b) | files      a voluntary petition in bankruptcy; |
|--------|-----|------------------------------------------------|

|   | (c) | petitions      for or acquiesces in the appointment of any receiver, trustee or similar      officer to liquidate or conserve its business or any substantial part of      its assets; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | commences      under the laws of any competent jurisdiction any proceeding involving its      insolvency, bankruptcy, readjustment of debt, liquidation or any other      similar proceeding for the relief of financially distressed      debtors; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | becomes      the object of any proceeding or action of the type described in (c) or (d)      above and such proceeding or action remains undismissed or unstayed for a      period of at ***; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | is      divested of a substantial part of its assets for a period of at      ***, |
|--------|-----|-----------------------------------------------------------------------------------|

|   | then      the other party may, to the full extent permitted by law, by written      notice, terminate all or part of thisAgreement. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | Termination for Non-Payment of      Predelivery Payments |
|------|----------------------------------------------------------|

|   | If      for any Aircraft the Buyer fails to make any Predelivery Payments at the      time, in the manner and in the amount specified in Clause 5.3 the Seller      may, by written notice, terminate all or part of this Agreement with      respect to undelivered Aircraft. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3 | Termination for Failure to Take      Delivery |
|------|-----------------------------------------------|

|   | If      the Buyer fails to comply with its obligations as set forth under Clause 8      and/or Clause 9, or fails to pay the Final Price of the Aircraft, the      Seller shall have the right to put the Buyer on notice to do so within a      period of *** after the date of such  notification. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | If      the Buyer has not cured such default within such period, the Seller may,      by written notice, terminate all or part of this Agreement with respect to      undelivered Aircraft. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | All      costs referred to in Clause 9.2.3 and relating to the period between the      notified date of delivery (as referred to in Clause 9.2.3) and the date of      termination of all or part of this Agreement shall be borne by the      Buyer. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.4 | Termination for Default under      other Agreements |
|------|-----------------------------------------------------|

|   | If      the Buyer fails to perform or comply with any material obligation      expressed to be assumed by it in any other agreement between Buyer and      Seller or any subsidiary, associate or Affiliate of the Seller and such      failure is not remedied *** after the Seller has given notice thereof to      the Buyer, then the Seller may, by written notice, terminate all or part      of this Agreement. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.5 | General |
|------|---------|

| 20.5.1 | To      the full extent permitted by law, the termination of all or part of this      Agreement pursuant to Clauses 20.1, 20.2, 20.3 and 20.4 shall become      effective immediately upon receipt by the relevant party of the notice of      termination sent by the other party without it being necessary for either      party to take any further action or to seek any consent from the other      party or any court or arbitral panel having  jurisdiction. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.5.2 | The      right for either party under Clause 20.1 and for the Seller under Clauses      20.2, 20.3, and 20.4 to terminate all or part of this Agreement shall be      without prejudice to any other rights and remedies available to such party      to seek termination of all or part of this Agreement before any court or      arbitral panel having jurisdiction pursuant to any failure by the other      party to perform its obligations under this  Agreement. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.5.3 | If      the party taking the initiative of terminating this Agreement decides to      terminate part of it only, the notice sent to the other party shall      specify those provisions of this Agreement which shall be      terminated. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 20.5.4 | In      the event of termination of this Agreement following a default from the      Buyer, including but not limited to a default under Clauses 20.1, 20.2,      20.3 and 20.4, the Seller without prejudice to any other rights and      remedies available under this Agreement or by law, shall retain an amount      equal to all predelivery payments, deposits, option fees and any other      monies paid by the Buyer  to the Seller under this Agreement and      corresponding to the Aircraft, services, data and other items covered by      such termination. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21 | ASSIGNMENTS AND      TRANSFERS |
|----|--------------------------------|

| 21.1  | Assignments by      Buyer |
|------------|---------------------------|

|   | Except      as hereinafter provided, the Buyer may not sell, assign, novate or      transfer its rights and obligations under this Agreement to any person      without the prior written consent of the Seller, which shall not      unreasonably be withheld. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.1.1 | Assignments for Predelivery      Financing |
|--------|--------------------------------------------|

|   | The      Buyer shall be entitled to assign its rights under this Agreement at any      time in order to provide security for the financing of any Predelivery      Payments subject to such assignment being in form and substance acceptable      to the Seller. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.1.2 | Assignments for Delivery      Financing |
|--------|-----------------------------------------|

|   | The      Buyer shall be entitled to assign its rights under this Agreement at any      time in connection with the financing of its obligation to pay the Final      Price subject to such assignment being in form and substance acceptable to      the Seller. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.2  | Assignments by      Seller |
|------------|----------------------------|

|   | The      Seller may at any time sell, assign, novate or transfer its rights and      obligations under this Agreement to any person, provided such sale,      assignment or transfer be notified to Buyer and shall not      have  adversely effect any of Buyer’s rights and obligations      under this Agreement. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.2.1 | Transfer of Rights and      Obligations uponReorganisation |
|--------|------------------------------------------------------------|

|   | If      at any time until the date upon which all the obligations and liabilities      of the Seller under this Agreement have been discharged, the legal      structure, the membership or the business of the Seller is reorganised or      the legal form of the Seller is changed and as a consequence thereof the      Seller wishes the Buyer to accept the substitution of the Seller by      another entity within the restructured Airbus group (or the Seller in its      new legal form) ("Newco") as contemplated      below, the Seller shall promptly notify the Buyer of its    wish. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      such event, the Seller may request the Buyer to enter into a novation      agreement and/or other agreement having the same effect whereby the      Seller's rights and obligations under this Agreement are novated or      transferred in favour of Newco.  Upon receipt of such request,      the Buyer shall enter into a novation agreement and/or other appropriate      documentation provided that the Buyer's rights and obligations under this      Agreement are not materially adversely affected by such      novation/transfer. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Until      any such novation agreement/other appropriate documentation has come into      effect, this Agreement shall remain in full force and effect, and each      party shall act diligently and in good faith to implement the novation      agreement/appropriate transfer documentation as soon as practicable after      Newco has come into existence. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22 | MISCELLANEOUS      PROVISIONS |
|----|-------------------------------|

| 22.1 | Data      Retrieval |
|------|---------------------|

|   | The      Buyer shall provide the Seller, as the Seller may reasonably request, 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 efficient      and coordinated survey of all reliability, maintainability, operational      and cost data with a view to improving the safety, availability and      operational costs of the Aircraft. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.2 | Notices |
|------|---------|

----

| 22.3 | Waiver |
|------|--------|

|   | The      failure of either party to enforce at any time any of the provisions of      this Agreement, or 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 thereof or the right of the other party thereafter to enforce each      and every such provision.  The express waiver (whether made one      (1) or several times) 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 | Law and      Jurisdiction |
|------|---------------------------|

| 22.4.1 | This      Agreement shall be governed by and construed in accordance with the laws      of England. |
|--------|-----------------------------------------------------------------------------------------------------|

| 22.4.2 | Any      dispute arising out of or in connection with this Agreement shall be      finally settled under the Rules of Conciliation and Arbitration of the      International Chamber of Commerce by three (3) arbitrators appointed in      accordance with such rules. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Arbitration      shall take place in London in the English  language. |
|--------|-----------------------------------------------------------------------|

| 22.5  | Contracts (Rights of Third      Parties) Act 1999 |
|------------|---------------------------------------------------|

|   | Subject      only to the terms of Clause 21 (Assignments and Transfers) of this      Agreement, the parties may rescind, vary, waive, release, assign, novate      or otherwise dispose of all or any of their respective rights or      obligations under this Agreement without the consent of any person who is      not a party to this Agreement. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.6 | International Supply      Contract |
|------|------------------------------------|

|   | The      Buyer and the Seller recognise 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 herein were arrived at in      consideration of, inter alia, all the provisions hereof specifically      including all waivers, releases and renunciations by the Buyer set out      herein. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Buyer and the Seller hereby also agree that the United Nations Convention      on Contracts for the International Sale of Goods will not apply to this      transaction. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.7 | Severability |
|------|--------------|

|   | In      the event that 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 which renders any provision of      this Agreement prohibited or unenforceable in any  respect. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 22.8 | Alterations to      Contract |
|------|------------------------------|

|   | This      Agreement contains the entire agreement between the parties with respect      to the subject matter hereof and supersedes any previous understandings,      commitments or representations whatsoever oral or written in respect      thereto.  This Agreement shall not be varied except by an      instrument in writing of date even herewith or subsequent hereto executed      by both parties or by their duly authorised    representatives. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.9 | Language |
|------|----------|

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

|   | This      Agreement has been executed in three (3) original copies which are in      English, and may be executed incounterparts. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| 22.10 | Confidentiality |
|-------|-----------------|

|   | This      Agreement including any Exhibits or other documents related hereto shall      be treated by both parties as confidential and shall not be released in      whole or in part to any third party except as may be required by law, or      to professional advisors for the purpose of implementation      hereof.  In particular, each party agrees not to make any press      release concerning the whole or any part of the contents and/or subject      matter hereof or of any future addendum hereto without the prior consent      of the other party hereto. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| For      and on behalf of                    | For      and on behalf of                 |
|----------------------------------------------|-------------------------------------------|
|                                         |                                      |
| CHINA      SOUTHERN AIRLINES                 | AIRBUS      SNC                           |
| COMPANY      LIMITED                         |                                      |
|                                         |                                      |
| By      :   /s/ Yuan Xinan    | By:      /s/ Guy Brunon                   |
|                                         |                                      |
| Name:      Yuan Xinan                        | Name:      Guy Brunon                     |
|                                         |                                      |
| Title:      Vice President                   | Title:   VP      Contracts |
|                                         |                                      |
| Date:  April      9, 2004          | Date:  April      9, 2004       |
|                                         |                                      |
| CHINA      SOUTHERN AIRLINES (GROUP)         | WHITNESSED      BY:                       |
| IMPORT      AND EXPORT TRADING               |                                      |
| CORPORATION                                  |                                      |
|                                         |                                      |
| By:      /s/ Zhou Yongqian                   | By:      /s/ Laurence Barron              |
|                                         |                                      |
| Name:      Zhou Yongqian                     | Name:      Laurence Barron                |
|                                         |                                      |
| Title:   General      Manager | Title:      President Airbus China        |
|                                         |                                      |
| Date:  April      9, 2004          | Date:  April      9, 2004       |

----

|   | (1) | as      Airline |
|--------|-----|-----------------|

----

|   | 1      Rond-Point Maurice Bellonte        |
|--------|-------------------------------------------|
|   | 31707  BLAGNAC  Cedex |
|   | FRANCE                                    |

|   | Bai      Yun Airport            |
|--------|---------------------------------|
|   | GUANGZHOU 510405                |
|   | PEOPLE'S      REPUBLIC OF CHINA |

|   | Bai      Yun Airport            |
|--------|---------------------------------|
|   | GUANGZHOU 510405                |
|   | PEOPLE'S      REPUBLIC OF CHINA |

----

|   | - | The      parties hereto have signed on the 9th      day of April 2004 an A319/A320 Purchase Agreement called hereinafter      together with its Exhibits and Letter Agreements (the “Agreement”) for the      sale of a certain number of A319 Aircraft and A320 Aircraft, collectively      referred to as the “Aircraft". |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Now,      the Buyer and the Seller agree to enter into an amendment No.1 (the      “Amendment”) to the Agreement to modify the delivery schedule of *** A319      Aircraft. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1      -  | DELIVERY      SCHEDULE |
|----------------|------------------------|

|   | The      Parties agree to reschedule the delivery date of *** A319 Aircraft      originally scheduled for delivery in *** (the ”Rescheduled      Aircraft”). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Rescheduled Aircraft is now hereby rescheduled to be delivered to the      Buyer in *** |
|--------|--------------------------------------------------------------------------------------------------|

| 2.  | PROVISION OF THE      AMENDMENT |
|----------|---------------------------------|

----

| Agreed      and Accepted                     | Agreed      and Accepted                  |
|----------------------------------------------|-------------------------------------------|
|                                         |                                      |
| For      and on behalf of                    | For      and on behalf of                 |
|                                         |                                      |
| CHINA      SOUTHERN AIRLINES                 | AIRBUS      SNC                           |
| COMPANY      LIMITED                         |                                      |
|                                         |                                      |
| By      :   /s/ Yuan Xinan    | By:      /s/ Guy Brunon                   |
|                                         |                                      |
| Name:      Yuan Xinan                        | Name:      Guy Brunon                     |
|                                         |                                      |
| Title:      Vice President                   | Title:   VP      Contracts |
|                                         |                                      |
| CHINA      SOUTHERN AIRLINES (GROUP)         |                                      |
| IMPORT      AND EXPORT TRADING               |                                      |
| CORPORATION                                  |                                      |
|                                         |                                      |
| By:      /s/ Zhou Yongqian                   |                                      |
|                                         |                                      |
| Name:      Zhou Yongqian                     |                                      |
|                                         |                                      |
| Title:   General      Manager |                                      |

----

----

----

|   | - | The      parties hereto have signed on the 9th      day of April 2004 an A319/A320 Purchase Agreement called hereinafter      together with its Exhibits and Letter Agreements (the “Agreement”) for the      sale of a certain number of A319 Aircraft and A320 Aircraft, collectively      referred to as the “Aircraft". |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      parties hereto have signed on the 11th      of November 2004 an amendment No.1 to modify the delivery schedule of ***      Aircraft. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      parties now agree to enter into an amendment No.2 (the “Amendment”) to      modify the delivery schedule of the Aircraft No.5 and the Aircraft No.6      referred to as the ”RescheduledAircraft”. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1      -  | DELIVERY      SCHEDULE |
|----------------|------------------------|

|   | The      Aircraft No.5 originally scheduled for delivery in *** is now hereby      rescheduled to be delivered to the Buyer in***. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Aircraft No.6 originally scheduled for delivery in *** is now hereby      rescheduled to be delivered to the Buyer in***. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

| 2      - | PREDELIVERY      PAYMENTS |
|----------|---------------------------|

| 3      -  | PROVISION OF THE      AMENDMENT |
|----------------|---------------------------------|

----

| Agreed      and Accepted                  | Agreed      and Accepted                  |
|-------------------------------------------|-------------------------------------------|
|                                      |                                      |
| For      and on behalf of                 | For      and on behalf of                 |
|                                      |                                      |
| CHINA      SOUTHERN AIRLINES              | AIRBUS      SNC                           |
| COMPANY      LIMITED                      |                                      |
|                                      |                                      |
| By      :   /s/ Yuan Xinan | By:      /s/ Guy Brunon                   |
|                                      |                                      |
| Name:      Yuan Xinan                     | Name:      Guy Brunon                     |
|                                      |                                      |
| Title:                                    | Title:   VP      Contracts |
|                                      |                                      |
| CHINA      SOUTHERN AIRLINES (GROUP)      |                                      |
| IMPORT      AND EXPORT TRADING            |                                      |
| CORPORATION                               |                                      |
|                                      |                                      |
| By:      /s/ Wang Yuqing                  |                                      |
|                                      |                                      |
| Name:      Wang Yuqing                    |                                      |
|                                      |                                      |
| Title:                                    |                                      |

----

----

----

|   | - | The      parties hereto have signed on the 9th      day of April 2004 an A319/A320 Purchase Agreement called hereinafter      together with its Exhibits and Letter Agreements (the “Agreement”) for the      sale of a certain number of A319 Aircraft and A320 Aircraft, collectively      referred to as the “Aircraft". |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      parties hereto have signed on the 11th      of November 2004 an amendment No.1 to modify the delivery schedule of ***      Aircraft. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      parties hereto have signed on the 03rd      of December 2004 an amendment No.2 to modify the delivery schedule of ***      Aircraft. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      parties have signed on the 15th      of March 2005 the SCNs in order to modify the specification of the A319      Aircraft. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      A319 Aircraft are individually referred to as “A319 Aircraft No.1”, “A319      Aircraft No.2”, “A319 Aircraft No.3”, “A319 Aircraft No.4”, “A319 Aircraft      No.5” and “A319 Aircraft No.6”. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | According      to the SCNs signed, the A319 Aircraft No.1 through A319 Aircraft No.3 will      be fitted with CFM 56-5B7/P ***. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------|

|   | - | According      to the SCNs signed, the A319 Aircraft No.4 through A319 Aircraft No.6 will      be fitted with CFM 56-5B6/P ***. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------|

|   | - | Following      the signature of such SCNs, the parties now agree to enter into an      amendment No.3 (the “Amendment”) to modify the A319 Aircraft Performance      Guarantees. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1-  | A319 Aircraft      Performance Guarantees |
|----------|-------------------------------------------|

| 2-  | PROVISION OF THE      AMENDMENT |
|----------|---------------------------------|

----

| Agreed      and Accepted                     | Agreed      and Accepted                  |
|----------------------------------------------|-------------------------------------------|
|                                         |                                      |
| For      and on behalf of                    | For      and on behalf of                 |
|                                         |                                      |
| CHINA      SOUTHERN AIRLINES                 | AIRBUS      SNC                           |
| COMPANY      LIMITED                         |                                      |
|                                         |                                      |
| By      :   /s/ Yuan Xinan    | By:      /s/ Guy Brunon                   |
|                                         |                                      |
| Name:      Yuan Xinan                        | Name:      Guy Brunon                     |
|                                         |                                      |
| Title:      Vice President                   | Title:   VP      Contracts |
|                                         |                                      |
| CHINA      SOUTHERN AIRLINES (GROUP)         |                                      |
| IMPORT      AND EXPORT TRADING               |                                      |
| CORPORATION                                  |                                      |
|                                         |                                      |
| By:      /s/ Zeng Zixiang                    |                                      |
|                                         |                                      |
| Name:      Zeng Zixiang                      |                                      |
|                                         |                                      |
| Title:   General      Manager |                                      |

----

| 1. | AIRCRAFT      CONFIGURATION |
|----|-----------------------------|

|   | i) | implementation      of CFM International CFM56-5B7/Pengines |
|--------|----|-------------------------------------------------------------|

|  | ii) | increase      of Design Weight to: Maximum Take-off Weight=      *** |
|--|-----|----------------------------------------------------------------------|

|   | iii) | installation      of passenger gaseous oxygen system |
|--------|------|------------------------------------------------------|

|   | iv) | increase      of airfield elevation envelope to *** pressure  altitude |
|--------|-----|------------------------------------------------------------------------|

| 2. | GUARANTEED      PERFORMANCE |
|----|-----------------------------|

| 2.1  | Speed |
|-----------|-------|

| 2.2  | Specific      Range |
|-----------|---------------------|

| Weight | Pressure      Altitude |
|--------|------------------------|
| ***    | ***                    |
| ***    | ***                    |
| ***    | ***                    |
| ***    | ***                    |
| ***    | ***                    |

| 2.3  | Take-off |
|-----------|----------|

|   | JAR      take-off field length at an Aircraft gross weight of *** at the start of      ground run at sea level pressure altitude in ISA+15 °C conditions shall be      not more than a guaranteed value of: ***. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4  | Second Segment      Climb |
|-----------|---------------------------|

| 2.5  | Landing Field      Length |
|-----------|---------------------------|

| 2.5.1 | JAR      certified dry landing field length at an Aircraft gross weight of *** at      sea level pressure altitude shall be not more than a guaranteed value of      ***. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.5.2 | JAR      certified dry landing field length at an Aircraft gross weight of *** at a      pressure altitude of *** and an Outside Air Temperature of *** shall be      not more than a guaranteed value of: ***. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1. | The      performance certification requirements for the Aircraft, except where      otherwise noted, will be as stated in Section 02 of the      Specification. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2. | For      the determination of JAR take-off and landing performance a hard level dry      runway surface with no obstacles, no line-up allowance, zero wind,      atmosphere according to ISA, except as otherwise noted and the use of      speedbrakes, flaps, landing gear and engines in the conditions liable to      provide the best results shall beassumed. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      take-off performance no special procedures have been considered if not      otherwise specified. |
|--------|-----------------------------------------------------------------------------------------------------------|

| 4.2.1. | When      establishing take-off and second segment performance no air will be bled      from the engines for cabin air conditioning or  anti-icing. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.2 | For      the purpose of the take-off elements of the guarantee the centre of      gravity position providing the best results shall be    assumed. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3. | Climb,      cruise and descent performance associated with the Guarantees will include      allowances for normal electrical load and for normal engine air bleed and      power extraction associated with maximum cabin differential pressure as      defined in Section 21-30.31 of the Specification. Cabin air conditioning      management during performance demonstration as described in paragraph 5.3      may be such as to optimise the Aircraft performance while meeting the      minimum air conditioning requirements defined above. Unless otherwise      stated no air will be bled from the engines for  anti-icing. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.4. | The      engines will be operated using not more than the engine manufacturer's      maximum recommended outputs for take-off, maximum go-round, maximum      continuous, maximum climb and cruise for normal operation unless otherwise      stated. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5. | Where      applicable the Guarantees assume the use of an approved fuel having a      density of *** and a lower heating value of***. |
|------|---------------------------------------------------------------------------------------------------------------------------------------|

| 5.1. | 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2. | Compliance      with the take-off, second segment, en-route one engine inoperative,      approach and landing elements of the Guarantees will be demonstrated with      reference to the approved Flight Manual. For demonstration of take-off      performance the optimal procedure may beused. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3. | Compliance      with those parts of the guarantees defined in paragraphs 2 not covered by      the requirements of the certifying Airworthiness Authority shall be      demonstrated by calculation based on data obtained during flight tests      conducted on one (or more, at the Seller's discretion) A319-100 Aircraft      of the same aerodynamic configuration as those Aircraft purchased by the      Buyer and incorporated in the In-Flight Performance Program and data basis      (“the IFP”) appropriate to the A319-100  Aircraft. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4. | Data      derived from 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5. | Compliance      with the Guarantees is not contingent on engine performance defined in the      engine manufacturer'sspecification. |
|------|-------------------------------------------------------------------------------------------------------------------------------------|

| 5.6. | Compliance      with the Manufacturer's Weight Empty guarantee defined in paragraph 3      shall be demonstrated with reference to a weight compliance      report. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7. | The      Seller undertakes to furnish the Buyer with a report or reports      demonstrating compliance with the Guarantees at, or as soon as possible      after, the delivery of each of the Buyer's A319-100    Aircraft. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1. | In      the event of any change to any law, governmental regulation or requirement      or interpretation thereof ("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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2. | The      Guarantees apply to the Aircraft as described in paragraph 1 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 of the      Specification |
|--------|----|----------------------------------------------------------------------------------------------|

----

|   | c) | Changes      required to obtain certification which causes changes to the performance      or weight of the Aircraft |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

----

|   | v) | implementation      of CFM International CFM56-5B6/Pengines |
|--------|----|-------------------------------------------------------------|

|   | vi) | increase      of Design Weight to: Maximum Take-off Weight   =      *** |
|--------|-----|----------------------------------------------------------------------------------------|

| 2.3.1 | JAR      take-off field length at an Aircraft gross weight of *** at the start of      ground run at sea level pressure altitude in ISA+15 °C conditions shall be      not more than a guaranteed value of: ***. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5.1 | JAR      certified dry landing field length at an Aircraft gross weight of *** at      sea level pressure altitude shall be not more than a guaranteed value of      ***. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5.2 | JAR      certified dry landing field length at an Aircraft gross weight of *** at a      pressure altitude of *** shall be not more than a guaranteed value of      ***. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.1 | The      performance certification requirements for the Aircraft, except where      otherwise noted, will be as stated in Section 02 of the      Specification. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | For      the determination of JAR take-off and landing performance a hard level dry      runway surface with no obstacles, no line-up allowance, zero wind,      atmosphere according to ISA, except as otherwise noted and the use of      speedbrakes, flaps, landing gear and engines in the conditions liable to      provide the best results shall beassumed. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      take-off performance no special procedures have been considered if not      otherwise specified. |
|--------|-----------------------------------------------------------------------------------------------------------|

| 4.2.1 | When      establishing take-off and second segment performance no air will be bled      from the engines for cabin air conditioning or  anti-icing. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.2 | For      the purpose of the take-off elements of the guarantee the centre of      gravity position providing the best results shall be    assumed. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | Climb,      cruise and descent performance associated with the Guarantees will include      allowances for normal electrical load and for normal engine air bleed and      power extraction associated with maximum cabin differential pressure as      defined in Section 21-30.31 of the Specification. Cabin air conditioning      management during performance demonstration as described in paragraph 5.3      may be such as to optimise the Aircraft performance while meeting the      minimum air conditioning requirements defined above. Unless otherwise      stated no air will be bled from the engines for  anti-icing. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | The      engines will be operated using not more than the engine manufacturer's      maximum recommended outputs for take-off, maximum go-round, maximum      continuous, maximum climb and cruise for normal operation unless otherwise      stated. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.5 | Where      applicable the Guarantees assume the use of an approved fuel having a      density of *** and a lower heating value of***. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| 5.1 | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Compliance      with the take-off, second segment, en-route one engine inoperative,      approach and landing elements of the Guarantees will be demonstrated with      reference to the approved Flight Manual. For demonstration of take-off      performance the optimal procedure may beused. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Compliance      with those parts of the guarantees defined in paragraphs 2 not covered by      the requirements of the certifying Airworthiness Authority shall be      demonstrated by calculation based on data obtained during flight tests      conducted on one (or more, at the Seller's discretion) A319-100 Aircraft      of the same aerodynamic configuration as those Aircraft purchased by the      Buyer and incorporated in the In-Flight Performance Program and data basis      (“the IFP”) appropriate to the A319-100  Aircraft. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Data      derived from 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Compliance      with the Guarantees is not contingent on engine performance defined in the      engine manufacturer'sspecification. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | Compliance      with the Manufacturer's Weight Empty guarantee defined in paragraph 3      shall be demonstrated with reference to a weight compliance      report. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | The      Seller undertakes to furnish the Buyer with a report or reports      demonstrating compliance with the Guarantees at, or as soon as possible      after, the delivery of each of the Buyer's A319-100    Aircraft. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1 | In      the event of any change to any law, governmental regulation or requirement      or interpretation thereof ("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. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | The      Guarantees apply to the Aircraft as described in paragraph 1 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 of the      Specification |
|--------|----|----------------------------------------------------------------------------------------------|

|   | c) | Changes      required to obtain certification which causes changes to the performance      or weight of the Aircraft |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | - | The      parties hereto have signed on the 9th      day of April 2004 an A319/A320 Purchase Agreement (Buyer’s Reference No.      04HMB0101FR) for the sale of a certain number of A319 Aircraft and A320      Aircraft, collectively referred to as the “Aircraft", which, together with      its Exhibits and Letter Agreements and as amended by Amendment No. 1 dated      as of the 11th      November 2004, Amendment No. 2 dated as of the 3rd      December 2004 and Amendment No. 3 dated as of the 30th      June 2005 is hereinafter called the    “Agreement”.  . |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | On      the 5th      of November 2005, the Seller and China Aviation Supplies Import and Export      Corporation (“CASC”) have entered into a General Term Agreement (“GTA”)      for the sale and purchase of one hundred fifty (150) A320 family aircraft      (the “One Hundred Fifty Aircraft”). As part of the One Hundred Fifty      Aircraft, fifty (50) A320 family aircraft (the “Fifty Aircraft”) have been      allocated to the Buyer. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Now      the Buyer wishes and the Seller agrees to enter into an amendment No.4      (the “Amendment”) to address the terms and conditions for the purchase by      the Buyer and the sale by the Seller of such Fifty Aircraft. The Fifty      Aircraft are composed of ten (10) A319-100 model aircraft (the “A319      Aircraft”), fifteen (15) A320-200 model aircraft (the “A320 Aircraft”),      and twenty-five (25) A321-200 model aircraft (the “A321      Aircraft”). |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      Buyer and the Seller agree that the terms and conditions of the sale and      purchase of the Fifty Aircraft shall be the same as those applying to the      Aircraft as specified in the Agreement except as modified by this      Amendment. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Except      as provided herein in the Amendment, upon signature of this Amendment the      A319 Aircraft, the A320 Aircraft and the A321 Aircraft shall be deemed      Aircraft. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The      following paragraphs will define the specific amendments to the Agreement,      which will apply only to the Fifty Aircraft to be delivered to the      Buyer. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Part      1 of Exhibit C to the Agreement, Letter Agreement No.1, Letter Agreement      No.2, Letter Agreement No.3, Letter Agreement No.5 and Side Letter No.2 to      the Agreement shall not apply to the Fifty  Aircraft. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      parties agree that, with respect to the Fifty Aircraft, sub-Clause 2.1.1      of the Agreement shall be deleted in its entirety and replaced by the      following: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | QUOTE |
|--------|-------|

|  | 3.1 | A319      Aircraft Basic Price |
|--|-----|--------------------------------|

|   | 3.1.1 | The      Airframe Basic Price is the sum of: |
|--------|-------|----------------------------------------------|

----

|  | (i) | the      Basic Price of the Airframe corresponding to the Standard Specification      including Nacelles and Thrust Reversers, and excluding Buyer Furnished      Equipment, which is: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      budget sum of the  basic prices of all SCNs which is      : |
|--------|------|--------------------------------------------------------------------------------|

|   | US$      *** |
|--------|--------------|

|   | 3.1.2 | The      Airframe Basic Price has been established in accordance with the *** -      (the "Base Period") and shall be subject to revision up to the Aircraft      delivery date in accordance with the Airframe Price Revision Formula set      forth in Appendix 1 to thisAmendment. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1.3 | A319      Aircraft Propulsion Systems BasicPrice |
|--------|-------|--------------------------------------------------|

|   | 3.1.3.1 | CFM      INTERNATIONAL Propulsion Systems |
|--------|---------|-------------------------------------------|

|   | The      Basic Price of a set of two (2) CFM INTERNATIONAL CFM56-5B5/P Engines      is: |
|--------|-----------------------------------------------------------------------------------------|

|  | 3.1.3.2 | INTERNATIONAL      AERO ENGINES Propulsion Systems |
|--|---------|----------------------------------------------------|

----

|  | 3.2 | A320      Aircraft Basic Price |
|--|-----|--------------------------------|

|   | 3.2.1 | The      Airframe Basic Price is the sum of: |
|--------|-------|----------------------------------------------|

|  | (i) | the      Basic Price of the Airframe corresponding to the Standard Specification      including Nacelles and Thrust Reversers, and excluding Buyer Furnished      Equipment, which is: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      budget sum of the  basic prices of all SCNs which is      : |
|--------|------|--------------------------------------------------------------------------------|

|   | 3.2.2 | The      Airframe Basic Price has been established in accordance with the *** -      (the "Base Period") and shall be subject to revision up to the Aircraft      delivery date in accordance with the Airframe Price Revision Formula set      forth in Appendix 1 to thisAmendment. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2.3 | A320      Aircraft Propulsion Systems BasicPrice |
|--------|-------|--------------------------------------------------|

|   | 3.2.3.1 | CFM      INTERNATIONAL Propulsion Systems |
|--------|---------|-------------------------------------------|

|   | The      Basic Price of a set of two (2) CFM INTERNATIONAL CFM56-5B4/P Engines      is: |
|--------|-----------------------------------------------------------------------------------------|

|  | 3.2.3.2 | INTERNATIONAL      AERO ENGINES Propulsion Systems |
|--|---------|----------------------------------------------------|

----

|  | 3.3 | A321      Aircraft Basic Price |
|--|-----|--------------------------------|

|   | 3.3.1 | The      Airframe Basic Price is the sum of: |
|--------|-------|----------------------------------------------|

|  | (i) | the      Basic Price of the Airframe corresponding to the Standard Specification      including Nacelles and Thrust Reversers, and excluding Buyer Furnished      Equipment, which is: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      budget sum of the  basic prices of all SCNs which is      : |
|--------|------|--------------------------------------------------------------------------------|

|   | 3.3.2 | The      Airframe Basic Price has been established in accordance with the *** -      (the "Base Period") and shall be subject to revision up to the Aircraft      delivery date in accordance with the Airframe Price Revision Formula set      forth in Appendix 1 to thisAmendment. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.3.3 | A321      Aircraft Propulsion Systems BasicPrice |
|--------|-------|--------------------------------------------------|

|   | 3.3.3.1 | CFM      INTERNATIONAL Propulsion Systems |
|--------|---------|-------------------------------------------|

|   | The      Basic Price of a set of two (2) CFM INTERNATIONAL CFM56-5B3/P Engines      is: |
|--------|-----------------------------------------------------------------------------------------|

|  | 3.3.3.2 | INTERNATIONAL      AERO ENGINES Propulsion Systems |
|--|---------|----------------------------------------------------|

----

|  | 3.4 | Final      Price |
|--|-----|------------------|

|   | 9.1 | Delivery      Schedule |
|--------|-----|------------------------|

|   | 9.1.1 | Subject      to Clauses 2, 7, 8, 10 and 18, the Seller shall have the Aircraft Ready      for Delivery at the Delivery Location within the following      months: |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ScheduledDelivery Month | Quantity of the Fifty      Aircraft in this amendment to be delivered per month |
|------------------------------|------------------------------------------------------------------------------------------------|
|                         | A321 Aircraft                                                                             | A320 Aircraft  | A319 Aircraft |
|                         |                                                                                           |   |   |
| ***                          | ***                                                                                            | *** |   |
| ***                          | ***                                                                                            | *** | *** |
| ***                          | ***                                                                                            | *** | *** |

----

| ScheduledDelivery Month | Quantity of the Fifty Aircraft in this      amendment to be delivered per month |
|------------------------------|---------------------------------------------------------------------------------------------------------------|
|                         | A321 Aircraft                                                                                            | A320 Aircraft  | A319 Aircraft |
|                         |                                                                                                          |   |   |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
| ***                          | ***                                                                                                           | *** | *** |
|                         |                                                                                                          |   |   |

----

| ScheduledDelivery Month | Quantity of the Fifty Aircraft in this      amendment to be delivered per month |
|------------------------------|---------------------------------------------------------------------------------------------------------------|
|                         | A321 Aircraft                                                                                            | A320 Aircraft  | A319 Aircraft |
|                         |                                                                                                          |   |   |
|                         |                                                                                                          |   |   |
| TOTAL                        | 25                                                                                                            | 15 | 10 |

|   | Each      of such months shall be, with respect to the corresponding Aircraft, the      "Scheduled Delivery      Month". |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | *** |
|--------|-----|

|   | UNQUOTE |
|--------|---------|

|   | The      Seller will *** of Resident Customer Support Manager (“RCSM”) for the      total fleet of Fifty Aircraft. |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

----

| 10.2.1 | The      parties agree that Paragraph 4.2 of Letter Agreement No.6 to the Agreement      shall not be applicable to the FiftyAircraft. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.2 | The      parties agree to delete Paragraph 6 of Letter Agreement No.6 to the      Agreement in its entirety and replace it with the    following: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | UNQUOTE |
|-----|---------|

----

| Agreed      and Accepted                       | Agreed      and Accepted                   |
|------------------------------------------------|--------------------------------------------|
|                                           |                                       |
| For      and on behalf of                      | For      and on behalf of                  |
|                                           |                                       |
| CHINA      SOUTHERN AIRLINES                   | AIRBUS      S.A.S.                         |
| COMPANY      LIMITED                           |                                       |
|                                           |                                       |
| By:    /s/      Si Xianmin | By:      /s/ Christophe Mourey             |
|                                           |                                       |
| Name:      Si Xianmin                          | Name:      Christophe Mourey               |
|                                           |                                       |
| Title:        President              | Title:      Senior Vice PresidentContracts |

----

| 1.1 | Basic      Prices |
|-----|-------------------|

| 1.2 | Base    Period |
|-----|----------------|

| 1.3 | Indexes |
|-----|---------|

| 1.4 | Revision      Formula |
|-----|-----------------------|

| 1.5 | General      Provisions |
|-----|-------------------------|

| 1.5.1 | *** |
|-------|-----|

| 1.5.2 | *** |
|-------|-----|

| 1.5.3 | *** |
|-------|-----|

----

| 1 | Engines      Reference Price |
|---|------------------------------|

| 2 | Reference      Period |
|---|-----------------------|

| 3 | Indexes |
|---|---------|

| 4 | Revision      Formula |
|---|-----------------------|

| 5.2 | *** |
|-----|-----|

| 5.3 | *** |
|-----|-----|

| 5.4 | *** |
|-----|-----|

| 5.5 | *** |
|-----|-----|

----

| 1 | A319      AIRCRAFT CONFIGURATION |
|---|----------------------------------|

|  | a) | CFM56-5B5/P      propulsion system |
|--|----|------------------------------------|

|  | b)  | IAE      V2522-A5 propulsion system |
|--|----------|-------------------------------------|

| 2 | GUARANTEED      PERFORMANCE |
|---|-----------------------------|

| 2.1 | Take-off Field      Length |
|-----|----------------------------|

|  | a)  | for      CFM:    *** |
|--|----------|-------------------------------------|

|  | b)  | for      IAE:     *** |
|--|----------|------------------------------------------------|

| 2.2 | Second Segment      Climb |
|-----|---------------------------|

|   | The      A319 Aircraft shall meet JAR 25 regulations for one engine inoperative      climb after take-off, undercarriage retracted, at a weight corresponding      to the stated weight at the start of Take-Off Distance Available (TODA),      at the altitude and temperature, and in the configuration of flap angle      and safety speed required to comply with the performance guaranteed in      paragraph 2.1 above. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | Landing Field      Length |
|-----|---------------------------|

|  | a) | for      CFM: *** |
|--|----|------------------------|

|  | b) | for      IAE: *** |
|--|----|------------------------|

| 2.4 | One Engine Inoperative      Net Ceiling |
|-----|-----------------------------------------|

|  | a) | for      CFM: *** |
|--|----|------------------------|

|  | b) | for      IAE: *** |
|--|----|------------------------|

----

| 2.5 | Speed |
|-----|-------|

|  | a) | for      CFM:*** |
|--|----|------------------|

|  | b) | for      IAE:   *** |
|--|----|-------------------------------|

| 2.6 | Cruise Specific Air      Range |
|-----|--------------------------------|

| Gross      Weight (kg) |   | Pressure      Altitude (ft) |
|------------------------|--------|-----------------------------|
|                   |   |                        |
| ***                    |   | ***                         |
| ***                    |   | ***                         |
| ***                    |   | ***                         |
| ***                    |   | ***                         |

|  | a) | for      CFM:   *** |
|--|----|------------------------------------|

|  | b) | for      IAE:     *** |
|--|----|------------------------------------------------|

| 3 | MANUFACTURER'S      WEIGHT EMPTY |
|---|----------------------------------|

|  | A319-100      CFM56-5B5/P | *** |
|--|---------------------------|-----|

|  | A319-100      V2522-A5 | *** |
|--|------------------------|-----|

| 4 | GUARANTEE      CONDITIONS |
|---|---------------------------|

| 4.1 | The      performance certification requirements for the A319 Aircraft, except where      otherwise noted, will be as stated in Section 02 of the Standard      Specification. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | For      the determination of JAR take-off and landing performance a hard dry level      runway surface with no runway strength limitations, no line-up allowances,      no obstacles, zero wind, atmosphere according to ISA, except as otherwise      noted, and the use of speed brakes, flaps, landing gear and engines in the      conditions liable to provide the best results will be    assumed. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.1 | When      establishing take-off and second segment performance no air will be bled      from the engines for cabin air conditioning or  anti-icing. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.3 | Climb,      cruise and descent performance associated with the Guarantees will include      allowances for normal electrical load and for normal engine air bleed and      power extraction associated with maximum cabin differential pressure as      defined in Section 21-30.31 of the Specification. Cabin air conditioning      management during performance demonstration as described in Subparagraph      5.3 below may be such as to optimize the A319 Aircraft performance while      meeting the minimum air conditioning requirements defined above. Unless      otherwise stated no air will be bled from the engines for      anti-icing. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | The      engines will be operated using not more than the engine manufacturer's      maximum recommended outputs for take-off, maximum go-round, maximum      continuous, maximum climb and cruise for normal  operation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Where      applicable the Guarantees assume the use of an approved fuel having a      density of *** and a lower heating value of ***. Cruise performance assume      a centre of gravity position of***. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | GUARANTEE      COMPLIANCE |
|---|---------------------------|

| 5.1 | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Compliance      with the take-off, second segment and landing elements of the Guarantees      will be demonstrated with reference to the JAA approved Flight      Manual. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Compliance      with those parts of the Guarantees defined in paragraph 2 above not      covered by the requirements of the certifying Airworthiness Authority      shall be demonstrated by calculation based on data obtained during flight      tests conducted on one (or more, at the Seller's discretion) A319-100      aircraft of the same aerodynamic configuration as the A319 Aircraft      purchased by the Buyer and incorporated in the In-Flight Performance      Program and data bases ("the IFP") appropriate to the A319      Aircraft. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Compliance      with the Manufacturer's Weight Empty guarantees defined in Paragraph 3      shall be demonstrated with reference to a Weight Compliance      Report. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Data      derived from 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | Compliance      with the Guarantees is not contingent on engine performance defined in the      engine manufacturer'sspecification. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | The      Seller undertakes to furnish the Buyer with a report or reports      demonstrating compliance with the Guarantees at, or as soon as possible      after, the delivery of each of the Buyer’s A319  Aircraft. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6 | ADJUSTMENT      OF GUARANTEES |
|---|-------------------------------|

| 6.1 | In      the event of any change to any law, governmental regulation or requirement      or interpretation thereof ("Rule Change") by any governmental agency made      subsequent to the date of the Agreement and such rule change affects the      A319 Aircraft configuration or performance or both required to obtain      certification the Guarantees shall be appropriately modified to reflect      the effect of any such change. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | The      Guarantees apply to the A319 Aircraft as described in paragraph 1 of this      Appendix and may be adjusted in the eventof: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|  | i) | Any      further configuration change which is the subject of a  SCN |
|--|----|----------------------------------------------------------------------|

|  | ii) | Variation      in actual weights of items defined in Section 13-10 of the Standard      Specification |
|--|-----|-------------------------------------------------------------------------------------------------------|

| 7 | EXCLUSIVE      GUARANTEES |
|---|---------------------------|

| 8 | *** |
|---|-----|

| 9. | ASSIGNMENT |
|----|------------|

| 10. | CONFIDENTIALITY |
|-----|-----------------|

----

| 1 | A320      AIRCRAFT CONFIGURATION |
|---|----------------------------------|

| 2  | GUARANTEED      PERFORMANCE |
|---------|-----------------------------|

| 2.1 | Take-off Field      Length |
|-----|----------------------------|

| 2.2 | Second Segment      Climb |
|-----|---------------------------|

| 2.3 | Landing Field      Length |
|-----|---------------------------|

| 2.4 | One Engine Inoperative      Net Ceiling |
|-----|-----------------------------------------|

|  | a) | for      CFM:    *** |
|--|----|-------------------------------------|

|   | b) | for      IAE:     *** |
|--------|----|-------------------------------------------|

----

| 2.5 | Speed |
|-----|-------|

|  | a) | for      CFM:*** |
|--|----|------------------|

|  | b) | for      IAE:   *** |
|--|----|-------------------------------|

| 2.6  | Cruise Specific Air      Range |
|-----------|--------------------------------|

| Gross      Weight (kg) |   | Pressure      Altitude (ft) |
|------------------------|--------|-----------------------------|
|                   |   |                        |
| ***                    |   | ***                         |
| ***                    |   | ***                         |
| ***                    |   | ***                         |
| ***                    |   | ***                         |
| ***                    |   | ***                         |

| 3  | MANUFACTURER'S      WEIGHT EMPTY |
|---------|----------------------------------|

| 4 | GUARANTEE      CONDITIONS |
|---|---------------------------|

| 4.1 | The      performance certification requirements for the A320 Aircraft, except where      otherwise noted, will be as stated in Section 02 of the Standard      Specification. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | For      the determination of JAR take-off and landing performance a hard dry level      runway surface with no runway strength limitations, no line-up allowances,      no obstacles, zero wind, atmosphere according to ISA, except as otherwise      noted, and the use of speed brakes, flaps, landing gear and engines in the      conditions liable to provide the best results will be    assumed. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.1 | When      establishing take-off and second segment performance no air will be bled      from the engines for cabin air conditioning or  anti-icing. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.3 | Climb,      cruise and descent performance associated with the Guarantees will include      allowances for normal electrical load and for normal engine air bleed and      power extraction associated with maximum cabin differential pressure as      defined in Section 21-30.31 of the Specification. Cabin air conditioning      management during performance demonstration as described in Subparagraph      5.3 below may be such as to optimize the A320 Aircraft performance while      meeting the minimum air conditioning requirements defined above. Unless      otherwise stated no air will be bled from the engines for      anti-icing. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | The      engines will be operated using not more than the engine manufacturer's      maximum recommended outputs for take-off, maximum go-round, maximum      continuous, maximum climb and cruise for normal  operation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Where      applicable the Guarantees assume the use of an approved fuel having a      density of *** and a lower heating value of ***. Cruise performance assume      a centre of gravity position of***. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | GUARANTEE      COMPLIANCE |
|---|---------------------------|

| 5.1 | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Compliance      with the take-off, second segment and landing elements of the Guarantees      will be demonstrated with reference to the JAA approved Flight      Manual. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Compliance      with those parts of the Guarantees defined in paragraph 2 above not      covered by the requirements of the certifying Airworthiness Authority      shall be demonstrated by calculation based on data obtained during flight      tests conducted on one (or more, at the Seller's discretion) A320-200      aircraft of the same aerodynamic configuration as the A320 Aircraft      purchased by the Buyer and incorporated in the In-Flight Performance      Program and data bases ("the IFP") appropriate to the A320      Aircraft. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Compliance      with the Manufacturer's Weight Empty guarantees defined in Paragraph 3      shall be demonstrated with reference to a Weight Compliance      Report. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Data      derived from 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | Compliance      with the Guarantees is not contingent on engine performance defined in the      engine manufacturer'sspecification. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | The      Seller undertakes to furnish the Buyer with a report or reports      demonstrating compliance with the Guarantees at, or as soon as possible      after, the delivery of each of the Buyer’s A320  Aircraft. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6 | ADJUSTMENT      OF GUARANTEES |
|---|-------------------------------|

| 6.1 | In      the event of any change to any law, governmental regulation or requirement      or interpretation thereof ("Rule Change") by any governmental agency made      subsequent to the date of the Agreement and such rule change affects the      A320 Aircraft configuration or performance or both required to obtain      certification the Guarantees shall be appropriately modified to reflect      the effect of any such change. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | The      Guarantees apply to the A320 Aircraft as described in paragraph 1 of this      Appendix and may be adjusted in the eventof: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|  | i) | Any      further configuration change which is the subject of a  SCN |
|--|----|----------------------------------------------------------------------|

|  | ii) | Variation      in actual weights of items defined in Section 13-10 of the Standard      Specification |
|--|-----|-------------------------------------------------------------------------------------------------------|

| 7 | EXCLUSIVE      GUARANTEES |
|---|---------------------------|

| 8 | *** |
|---|-----|

| 9. | ASSIGNMENT |
|----|------------|

| 10. | CONFIDENTIALITY |
|-----|-----------------|

----

| 1 | A321 AIRCRAFT      CONFIGURATION |
|---|----------------------------------|

| 2 | GUARANTEED      PERFORMANCE |
|---|-----------------------------|

| 2.1 | Take-off Field      Length |
|-----|----------------------------|

| 2.2 | Second Segment      Climb |
|-----|---------------------------|

| 2.3 | Landing Field      Length |
|-----|---------------------------|

| 2.4 | One Engine Inoperative      Net Ceiling |
|-----|-----------------------------------------|

----

| 2.5 | Speed |
|-----|-------|

|  | a) | for      CFM:*** |
|--|----|------------------|

|   | b) | for      IAE:  *** |
|--------|----|-------------------------|

| 2.4 | Cruise Specific Air      Range |
|-----|--------------------------------|

| Gross      Weight (kg) |   | Pressure      Altitude (ft) |
|------------------------|--------|-----------------------------|
|                   |   |                        |
| ***                    |   | ***                         |
| ***                    |   | ***                         |
| ***                    |   | ***                         |
| ***                    |   | ***                         |
| ***                    |   | ***                         |

| 3 | MANUFACTURER'S      WEIGHT EMPTY |
|---|----------------------------------|

| 4 | GUARANTEE      CONDITIONS |
|---|---------------------------|

| 4.1 | The      performance certification requirements for the A321 Aircraft, except where      otherwise noted, will be as stated in Section 02 of the Standard      Specification. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | For      the determination of JAR take-off and landing performance a hard dry level      runway surface with no runway strength limitations, no line-up allowances,      no obstacles, zero wind, atmosphere according to ISA, except as otherwise      noted, and the use of speed brakes, flaps, landing gear and engines in the      conditions liable to provide the best results will be    assumed. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.1 | When      establishing take-off and second segment performance no air will be bled      from the engines for cabin air conditioning or  anti-icing. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.3 | Climb,      cruise and descent performance associated with the Guarantees will include      allowances for normal electrical load and for normal engine air bleed and      power extraction associated with maximum cabin differential pressure as      defined in Section 21-30.31 of the Specification. Cabin air conditioning      management during performance demonstration as described in Subparagraph      5.3 below may be such as to optimize the A321 Aircraft performance while      meeting the minimum air conditioning requirements defined above. Unless      otherwise stated no air will be bled from the engines for      anti-icing. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | The      engines will be operated using not more than the engine manufacturer's      maximum recommended outputs for take-off, maximum go-round, maximum      continuous, maximum climb and cruise for normal  operation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Where      applicable the Guarantees assume the use of an approved fuel having a      density of *** and a lower heating value of ***. Cruise performance assume      a centre of gravity position of***. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | GUARANTEE      COMPLIANCE |
|---|---------------------------|

| 5.1 | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Compliance      with the take-off, second segment and landing elements of the Guarantees      will be demonstrated with reference to the JAA approved Flight      Manual. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Compliance      with those parts of the Guarantees defined in paragraph 2 above not      covered by the requirements of the certifying Airworthiness Authority      shall be demonstrated by calculation based on data obtained during flight      tests conducted on one (or more, at the Seller's discretion) A321-200      aircraft of the same aerodynamic configuration as the A321 Aircraft      purchased by the Buyer and incorporated in the In-Flight Performance      Program and data bases ("the IFP") appropriate to the A321      Aircraft. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Compliance      with the Manufacturer's Weight Empty guarantees defined in Paragraph 3      shall be demonstrated with reference to a Weight Compliance      Report. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Data      derived from 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | Compliance      with the Guarantees is not contingent on engine performance defined in the      engine manufacturer'sspecification. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | The      Seller undertakes to furnish the Buyer with a report or reports      demonstrating compliance with the Guarantees at, or as soon as possible      after, the delivery of each of the Buyer’s A321  Aircraft. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6 | ADJUSTMENT      OF GUARANTEES |
|---|-------------------------------|

| 6.1 | In      the event of any change to any law, governmental regulation or requirement      or interpretation thereof ("Rule Change") by any governmental agency made      subsequent to the date of the Agreement and such rule change affects the      A321 Aircraft configuration or performance or both required to obtain      certification the Guarantees shall be appropriately modified to reflect      the effect of any such change. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | The      Guarantees apply to the A321 Aircraft as described in paragraph 1 of this      Appendix and may be adjusted in the eventof: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|  | i) | Any      further configuration change which is the subject of a  SCN |
|--|----|----------------------------------------------------------------------|

|  | ii) | Variation      in actual weights of items defined in Section 13-10 of the Standard      Specification |
|--|-----|-------------------------------------------------------------------------------------------------------|

| 7 | EXCLUSIVE      GUARANTEES |
|---|---------------------------|

| 8 | *** |
|---|-----|

| 9. | ASSIGNMENT |
|----|------------|

| 10. | CONFIDENTIALITY |
|-----|-----------------|

----

|  | 1) | Clause      5.5 is hereby deleted in its entirety and replaced with the      following; |
|--|----|-----------------------------------------------------------------------------------------|

|  | 2) | Notwithstanding      Clause 7.1 of the Agreement, the Seller confirms that the European      Aviation Safety Agency (EASA) has issued a type certificate applicable to      the Fifty Aircraft. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3) | *** |
|--|----|-----|

----

|  | 4) | The      following sentence is hereby added to Clause  12.1.3: |
|--|----|----------------------------------------------------------------|

|  | 5) | Clause      12.1.4.2 is herby deleted in its entirety and replaced with the      following: |
|--|----|---------------------------------------------------------------------------------------------|

|   | QUOTE |
|--------|-------|

|   | 12.1.4.2 | *** |
|--------|----------|-----|

|  | 6) | Clause      12.1.6 (vii) is hereby deleted in its entirety and replaced with the      following: |
|--|----|--------------------------------------------------------------------------------------------------|

|  | (vii) | Seller’s      Rejection |
|--|-------|-------------------------------|

|  | 7) | Clause      12.1.7 (v) is hereby deleted in its entirety and replaced with the      following: |
|--|----|------------------------------------------------------------------------------------------------|

|  | (v) | Credit |
|--|-----|--------|

|   | - | For      the determination of direct labor costs only manhours spent on      disassembly, inspection, repair, reassembly, and final inspection and test      of the Warranted Part are permissible. Any manhours required for      maintenance work concurrently being carried out on the Aircraft or      Warranted Part are not included. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      manhours permissible above shall be multiplied by an agreed labor rate of      US Dollars ***, (“Inhouse      Warranty Labour Rate”) and representing the Buyer’s composite labor      rate meaning the average hourly rate (excluding all fringe benefits,      premium time allowances, social charges, business taxes and the like) paid      to the Buyer’s employees whose jobs are directly related to the      performance of the repair. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | - | Direct      material costs are determined by the prices at which the Buyer acquired      such material, excluding any parts and materials used for overhaul and as      may be furnished by the Seller at nocharge. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 8) | Clause      12.4.2 is hereby deleted in its entirety and replaced with the      following: |
|--|----|--------------------------------------------------------------------------------------------|

|  | 12.4.2 | Seller's      Responsibility |
|--|--------|------------------------------|

|  | 9) | Clause      14.8 is hereby deleted in its entirety and replaced with the      following: |
|--|----|------------------------------------------------------------------------------------------|

|   | Upon      request by the Buyer, the Seller is ready to provide a *** Technical Data      familiarization training at the Seller’s or at the Buyer’s facilities. ***      Additional sessions of the Technical Data familiarization training shall      be subject to commercial offers. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10) | Clause      16.7.2.2 is hereby deleted in its entirety and replaced with the      following: |
|--|-----|----------------------------------------------------------------------------------------------|

|   | 16.7.2.2 | *** |
|--------|----------|-----|

|  | 11) | Clause      16.10.2.3 is hereby deleted in its entirety and replaced with the      following: |
|--|-----|-----------------------------------------------------------------------------------------------|

|   | 16.10.2.3 | *** |
|--------|-----------|-----|

|  | 12) | Clause      16.10.3.4 is hereby deleted in its entirety and replaced with the      following: |
|--|-----|-----------------------------------------------------------------------------------------------|

|   | 16.10.3.4 | *** |
|--------|-----------|-----|

----

|  | 13) | Clause      20.4 is hereby deleted in its entirety and replaced with the      following: |
|--|-----|------------------------------------------------------------------------------------------|

|   | 20.4 | Termination for Default under      other Agreements |
|--------|------|-----------------------------------------------------|

| Agreed      and Accepted                         |   | Agreed      and Accepted  |
|--------------------------------------------------|--------|---------------------------|
|                                             |   |                      |
| For      and on behalf of                        |   | For      and on behalf of |
|                                             |   |                      |
| CHINA      SOUTHERN AIRLINESCOMPANY      LIMITED |   | AIRBUS      S.A.S.        |

| By:      /s/ Si Xianmin |   | By:      /s/ Christophe Mourey             |
|-------------------------|--------|--------------------------------------------|
|                    |   |                                       |
| Name:      Si Xianmin   |   | Name:      Christophe Mourey               |
|                    |   |                                       |
| Title:      President   |   | Title:      Senior Vice PresidentContracts |

----

----

| Agreed      and Accepted                         |   | Agreed      and Accepted  |
|--------------------------------------------------|--------|---------------------------|
|                                             |   |                      |
| For      and on behalf of                        |   | For      and on behalf of |
|                                             |   |                      |
| CHINA      SOUTHERN AIRLINESCOMPANY      LIMITED |   | AIRBUS      S.A.S.        |

| By:      /s/ Si Xianmin |   | By:      /s/ Christophe Mourey             |
|-------------------------|--------|--------------------------------------------|
|                    |   |                                       |
| Name:      Si Xianmin   |   | Name:      Christophe Mourey               |
|                    |   |                                       |
| Title:      President   |   | Title:      Senior Vice PresidentContracts |

----

----

| CHINA      SOUTHERN AIRLINES |   | AIRBUS      S.A.S. |
|------------------------------|--------|--------------------|
| COMPANY      LIMITED         |   |               |

| By:      /s/ Si Xianmin |   | By:      /s/ Christophe Mourey             |
|-------------------------|--------|--------------------------------------------|
|                    |   |                                       |
| Name:      Si Xianmin   |   | Name:      Christophe Mourey               |
|                    |   |                                       |
| Title:      President   |   | Title:      Senior Vice PresidentContracts |

----

----

| Agreed      and Accepted  |   | Agreed      and Accepted  |
|---------------------------|--------|---------------------------|
|                      |   |                      |
| For      and on behalf of |   | For      and on behalf of |

| CHINA      SOUTHERN AIRLINES |   | AIRBUS      S.A.S. |
|------------------------------|--------|--------------------|
| COMPANY      LIMITED         |   |               |

| By: /s/ Si Xianmin    |   | By:      /s/ Christophe Mourey             |
|-----------------------|--------|--------------------------------------------|
|                  |   |                                       |
| Name:      Si Xianmin |   | Name:      Christophe Mourey               |
|                  |   |                                       |
| Title:      President |   | Title:      Senior Vice PresidentContracts |

----