# EDGAR Filing Document

**Accession Number:** 0001172222
**File Stem:** 0001172222-23-000013
**Filing Date:** 2023-2
**Character Count:** 1239112
**Document Hash:** b69905b3d2454fef1c68968bd316e894
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001172222-23-000013.hdr.sgml**: 20230215

**ACCESSION NUMBER**: 0001172222-23-000013

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 131

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230215

**DATE AS OF CHANGE**: 20230215

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HAWAIIAN HOLDINGS INC
- **CENTRAL INDEX KEY:** 0001172222
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIR TRANSPORTATION, SCHEDULED [4512]
- **IRS NUMBER:** 710879698
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31443
- **FILM NUMBER:** 23635775

**BUSINESS ADDRESS:**
- **STREET 1:** 3375 KOAPAKA STREET
- **STREET 2:** SUITE G-350
- **CITY:** HONOLULU
- **STATE:** HI
- **ZIP:** 96819
- **BUSINESS PHONE:** 8088353700

**MAIL ADDRESS:**
- **STREET 1:** 3375 KOAPAKA STREET
- **STREET 2:** SUITE G-350
- **CITY:** HONOLULU
- **STATE:** HI
- **ZIP:** 96819

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HAWAIIAN HOLDINGS  INC
- **DATE OF NAME CHANGE:** 20020502

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HAWAIIAN AIR GROUP INC
- **DATE OF NAME CHANGE:** 20020429

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HA HOLDINGS INC
- **DATE OF NAME CHANGE:** 20020425

?xml version="1.0" ? ha-20221231

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 10-K** 

☒**&nbsp;&nbsp;&nbsp;&nbsp; ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2022** 

**or**

☐**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.**

**Commission file number 1-31443** 

**HAWAIIAN HOLDINGS INC**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **71-0879698** |
| (State or Other Jurisdiction of | (I.R.S. Employer |
| Incorporation or Organization) | Identification No.) |

---

---

| | | |
|:---|:---|:---|
| **3375 Koapaka Street,** | **Suite G-350** | |
| **Honolulu,** | **HI** | **96819** |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) |

---

**(808) 835-3700** 

(Registrant's Telephone Number, Including Area Code)

---

| | | |
|:---|:---|:---|
| Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: |  |
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| Common Stock ($0.01 par value) | HA | NASDAQ Stock Market, LLC |
|  |  | (NASDAQ Global Select Market) |
| Securities registered pursuant to Section 12(g) of the Act: **None** | Securities registered pursuant to Section 12(g) of the Act: **None** |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☒

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

&nbsp;&nbsp;&nbsp;&nbsp;If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes ☒ No ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a shell company (as defined in Exchange Rule Act 12b-2). Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

&nbsp;&nbsp;&nbsp;&nbsp;

The aggregate market value of the voting and non-voting common equity stock held by non-affiliates of the registrant was approximately $735.3 million, computed by reference to the closing sale price of the Common Stock on the NASDAQ Global Select Market, on June 30, 2022, the last business day of the registrant's most recently completed second fiscal quarter.

&nbsp;&nbsp;&nbsp;&nbsp;As of February 3, 2023, 51,451,449 shares of Common Stock of the registrant were outstanding.

**DOCUMENTS INCORPORATED BY REFERENCE**

Portions of the registrant's Proxy Statement for the Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant's fiscal year ended December 31, 2022.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| <u>[PART I](#i59f265a498f14e94937a15d1b876d549_13)</u> | <u>[PART I](#i59f265a498f14e94937a15d1b876d549_13)</u> | <u>[4](#i59f265a498f14e94937a15d1b876d549_13)</u> |
| &nbsp;&nbsp;<u>[ITEM 1.](#i59f265a498f14e94937a15d1b876d549_16)</u> | <u>[BUSINESS](#i59f265a498f14e94937a15d1b876d549_16)</u> | <u>[4](#i59f265a498f14e94937a15d1b876d549_16)</u> |
| &nbsp;&nbsp;<u>[ITEM 1A.](#i59f265a498f14e94937a15d1b876d549_19)</u> | <u>[RISK FACTORS](#i59f265a498f14e94937a15d1b876d549_19)</u> | <u>[11](#i59f265a498f14e94937a15d1b876d549_19)</u> |
| &nbsp;&nbsp;<u>[ITEM 1B.](#i59f265a498f14e94937a15d1b876d549_22)</u> | <u>[UNRESOLVED STAFF COMMENTS](#i59f265a498f14e94937a15d1b876d549_22)</u> | <u>[33](#i59f265a498f14e94937a15d1b876d549_22)</u> |
| &nbsp;&nbsp;<u>[ITEM 2.](#i59f265a498f14e94937a15d1b876d549_25)</u> | <u>[PROPERTIES](#i59f265a498f14e94937a15d1b876d549_25)</u> | <u>[33](#i59f265a498f14e94937a15d1b876d549_25)</u> |
| &nbsp;&nbsp;<u>[ITEM 3.](#i59f265a498f14e94937a15d1b876d549_28)</u> | <u>[LEGAL PROCEEDINGS](#i59f265a498f14e94937a15d1b876d549_28)</u> | <u>[35](#i59f265a498f14e94937a15d1b876d549_28)</u> |
| &nbsp;&nbsp;<u>[ITEM 4.](#i59f265a498f14e94937a15d1b876d549_31)</u> | <u>[MINE SAFETY DISCLOSURES](#i59f265a498f14e94937a15d1b876d549_31)</u> | <u>[35](#i59f265a498f14e94937a15d1b876d549_31)</u> |
| <u>[PART II](#i59f265a498f14e94937a15d1b876d549_34)</u> | <u>[PART II](#i59f265a498f14e94937a15d1b876d549_34)</u> | <u>[36](#i59f265a498f14e94937a15d1b876d549_34)</u> |
| &nbsp;&nbsp;<u>[ITEM 5.](#i59f265a498f14e94937a15d1b876d549_37)</u> | <u>[MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](#i59f265a498f14e94937a15d1b876d549_37)</u> | <u>[36](#i59f265a498f14e94937a15d1b876d549_37)</u> |
| &nbsp;&nbsp;<u>[ITEM 6.](#i59f265a498f14e94937a15d1b876d549_40)</u> | <u>[RESERVED](#i59f265a498f14e94937a15d1b876d549_40)</u> | <u>[37](#i59f265a498f14e94937a15d1b876d549_40)</u> |
| &nbsp;&nbsp;<u>[ITEM 7.](#i59f265a498f14e94937a15d1b876d549_43)</u> | <u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i59f265a498f14e94937a15d1b876d549_43)</u> | <u>[38](#i59f265a498f14e94937a15d1b876d549_43)</u> |
| &nbsp;&nbsp;<u>[ITEM 7A.](#i59f265a498f14e94937a15d1b876d549_46)</u> | <u>[QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i59f265a498f14e94937a15d1b876d549_46)</u> | <u>[55](#i59f265a498f14e94937a15d1b876d549_46)</u> |
| &nbsp;&nbsp;<u>[ITEM 8.](#i59f265a498f14e94937a15d1b876d549_49)</u> | <u>[FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#i59f265a498f14e94937a15d1b876d549_49)</u> | <u>[57](#i59f265a498f14e94937a15d1b876d549_49)</u> |
| &nbsp;&nbsp;<u>[ITEM 9.](#i59f265a498f14e94937a15d1b876d549_142)</u> | <u>[CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#i59f265a498f14e94937a15d1b876d549_142)</u> | <u>[113](#i59f265a498f14e94937a15d1b876d549_142)</u> |
| &nbsp;&nbsp;<u>[ITEM 9A.](#i59f265a498f14e94937a15d1b876d549_145)</u> | <u>[CONTROLS AND PROCEDURES](#i59f265a498f14e94937a15d1b876d549_145)</u> | <u>[113](#i59f265a498f14e94937a15d1b876d549_145)</u> |
| &nbsp;&nbsp;<u>[ITEM 9B.](#i59f265a498f14e94937a15d1b876d549_148)</u> | <u>[OTHER INFORMATION](#i59f265a498f14e94937a15d1b876d549_148)</u> | <u>[116](#i59f265a498f14e94937a15d1b876d549_148)</u> |
| &nbsp;&nbsp;<u>[ITEM 9C.](#i59f265a498f14e94937a15d1b876d549_151)</u> | <u>[DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#i59f265a498f14e94937a15d1b876d549_151)</u> | <u>[116](#i59f265a498f14e94937a15d1b876d549_151)</u> |
| <u>[PART III](#i59f265a498f14e94937a15d1b876d549_154)</u> | <u>[PART III](#i59f265a498f14e94937a15d1b876d549_154)</u> | <u>[116](#i59f265a498f14e94937a15d1b876d549_154)</u> |
| &nbsp;&nbsp;<u>[ITEM 10.](#i59f265a498f14e94937a15d1b876d549_157)</u> | <u>[DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](#i59f265a498f14e94937a15d1b876d549_157)</u> | <u>[116](#i59f265a498f14e94937a15d1b876d549_157)</u> |
| &nbsp;&nbsp;<u>[ITEM 11.](#i59f265a498f14e94937a15d1b876d549_160)</u> | <u>[EXECUTIVE COMPENSATION](#i59f265a498f14e94937a15d1b876d549_160)</u> | <u>[116](#i59f265a498f14e94937a15d1b876d549_160)</u> |
| &nbsp;&nbsp;<u>[ITEM 12.](#i59f265a498f14e94937a15d1b876d549_163)</u> | <u>[SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#i59f265a498f14e94937a15d1b876d549_163)</u> | <u>[116](#i59f265a498f14e94937a15d1b876d549_163)</u> |
| &nbsp;&nbsp;<u>[ITEM 13.](#i59f265a498f14e94937a15d1b876d549_166)</u> | <u>[CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#i59f265a498f14e94937a15d1b876d549_166)</u> | <u>[116](#i59f265a498f14e94937a15d1b876d549_166)</u> |
| &nbsp;&nbsp;<u>[ITEM 14.](#i59f265a498f14e94937a15d1b876d549_169)</u> | <u>[PRINCIPAL ACCOUNTANT FEES AND SERVICES](#i59f265a498f14e94937a15d1b876d549_169)</u> | <u>[116](#i59f265a498f14e94937a15d1b876d549_169)</u> |
| <u>[PART IV](#i59f265a498f14e94937a15d1b876d549_172)</u> | <u>[PART IV](#i59f265a498f14e94937a15d1b876d549_172)</u> | <u>[116](#i59f265a498f14e94937a15d1b876d549_172)</u> |
| &nbsp;&nbsp;<u>[ITEM 15.](#i59f265a498f14e94937a15d1b876d549_175)</u> | <u>[EXHIBITS, FINANCIAL STATEMENT SCHEDULES](#i59f265a498f14e94937a15d1b876d549_175)</u> | <u>[117](#i59f265a498f14e94937a15d1b876d549_175)</u> |
| &nbsp;&nbsp;<u>[SIGNATURES](#i59f265a498f14e94937a15d1b876d549_181)</u> | &nbsp;&nbsp;<u>[SIGNATURES](#i59f265a498f14e94937a15d1b876d549_181)</u> | <u>[122](#i59f265a498f14e94937a15d1b876d549_181)</u> |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views with respect to certain current and future events and financial performance. Such forward-looking statements include, without limitation, statements related to our financial statements and results of operations; any expectations of operating expenses, deferred revenue, interest rates, tax rates, income taxes, deferred tax assets, valuation allowances or other financial items; the severity, magnitude, duration and effects of the COVID-19 pandemic; the extent to which the COVID-19 pandemic and related impacts will materially and adversely affect our business operations, financial performance, results of operations, financial position or achievement of strategic objectives; the duration and scope of government mandates or other limitations of or restrictions on travel; implementation of programs and enhancements in light of COVID-19; the demand for air travel in the markets in which we operate; anticipated levels of demand and bookings; additional route service; the compounding effect of the COVID-19 pandemic on competitive pressures in the markets in which we operate; our dependence on tourism; the impact of reduced demand from any one type of customer; the impact of the COVID-19 pandemic on our suppliers; the effect of the economic downturn and the COVID-19 pandemic on our aircraft contracts and commitments; the effect of government, business and individual actions intended to mitigate the effects of the COVID-19 pandemic; our ability to continue to generate sufficient cash to operate; whether or when we may engage in stock repurchases or dividends; changes in our future capital needs; estimations related to our liquidity requirements; future obligations under CARES Act, CAA 2021 and ARP 2021 programs; the availability of aircraft fuel, aircraft parts and personnel; expectations regarding industry capacity, our capacity, our operating performance, available seat miles, operating revenue per available seat mile and operating cost per available seat mile for the first quarter and full year of 2023; the timing, scope and costs of our operations pursuant to the Air Transportation Services Agreement; expectations of the benefits and drawbacks related to exclusivity arrangements with loyalty, co-brand and other partners; expected salary and related costs; expected passenger servicing costs; expected commissions and other selling expenses; expected purchased services and other expenses; estimates for daily cash burn; our expected fleet as of December 31, 2023; estimates of annual fuel expenses and measure of the effects of fuel prices on our business; the impact of inflation on our business; the availability of, and efforts seeking, future financing; changes in our fleet plan and related cash outlays; committed capital expenditures; continued investments towards achieving our environmental goals; the estimated timing for certain asset dispositions; estimated financial charges; expected delivery or deferment of new aircraft and engines; the funding of our aircraft orders; the impact of accounting standards on our financial statements; our ability to successfully assert legal defenses in litigation and the effects of any litigation on our operations or business; the effects of our fuel and currency risk hedging policies; the fair value and expected maturity of our debt obligations; our estimated contractual obligations; the effect of fleet changes on our business, operations and cost structure; estimates of fair value measurements; estimates of required funding of and contributions to our defined benefit pension, other post-retirement plans and disability plans; the status and effects of federal and state legislation and regulations promulgated by the Federal Aviation Administration (FAA), U.S. Department of Transportation (DOT) and other regulatory agencies; the impact of new or revised noise abatement procedures at the airports we serve; airport rent rates and landing fees; estimates related to our frequent flyer program; our credit card holdback; our debt or lease obligations and financing arrangements; risk management, credit risks, and air traffic liability; future U.S. and global economic conditions or performance; and other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. Words such as "expects," "anticipates," "projects," "intends," "plans," "believes," "estimates," "could," "would," "will," "might," "may," variations of such words, and similar expressions are also intended to identify such forward-looking statements. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties, and assumptions relating to our operations and business environment, all of which may cause our actual results to be materially different from any future results, expressed or implied, in these forward-looking statements.

Factors that could affect such forward-looking statements include, but are not limited to: the continuing and developing effects of the COVID-19 pandemic on our business operations and financial condition; the duration of government-mandated and other restrictions on travel, and the full effects that such restrictions to limit the spread of COVID-19 will have on demand for air travel in the markets in which we operate; the role of cargo in our business model; the concentration of our cargo business with Amazon; fluctuations and the extent of declining demand for air transportation in the markets in which we operate; our dependence on the tourist industry; our ability to generate sufficient cash and manage the cash available to us; our ability to accurately forecast quarterly and annual results; global economic volatility; macroeconomic political and regulatory developments; the cost and availability of fuel, aircraft parts and personnel; foreign currency exchange rate fluctuations; competitive pressures, including the impact of increasing industry capacity between North America and Hawai'i; the impact of inflation on the economy, our financial condition and results of operations; the impact of interest rate increases; maintenance of privacy and security of customer-related information and compliance with applicable federal and foreign privacy or data security regulations or standards; our dependence on technology and automated systems; our reliance on third-party contractors; satisfactory labor relations; our ability to attract and retain qualified personnel and key executives; successful implementation of our growth strategy and cost reduction goals; adverse publicity; risks related to the airline industry; our ability to obtain and

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

maintain adequate facilities and infrastructure; seasonal and cyclical volatility; the effect of applicable state, federal and foreign laws and regulations; increases in insurance costs or reductions in coverage; the limited number of suppliers for aircraft, aircraft engines and parts; our existing aircraft purchase agreements; delays in aircraft or engine deliveries or other loss of fleet capacity; changes in our future capital needs; fluctuations in our share price; the impact of outstanding warrants on our financial results and the market price of our common stock; our financial liquidity; and the effectiveness of our internal control over financial reporting. The risks, uncertainties, and assumptions referred to above that could cause our results to differ materially from the results expressed or implied by such forward-looking statements also include the risks, uncertainties, and assumptions discussed under the heading "Risk Factors" in Item 1A in this Annual Report on Form 10-K and the risks, uncertainties and assumptions discussed from time to time in our public filings and public announcements. All forward-looking statements included in this report are based on information available to us as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this annual report.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**PART I**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS.**

***Overview***

Hawaiian Holdings, Inc. (Holdings) is a holding company incorporated in the State of Delaware. Holdings' primary asset is sole ownership of all issued and outstanding shares of common stock of Hawaiian Airlines, Inc. (Hawaiian). Hawaiian was originally incorporated in January 1929 under the laws of the Territory of Hawai'i and became our indirect wholly-owned subsidiary pursuant to a corporate restructuring that was consummated in August 2002. Hawaiian became a Delaware corporation and Holdings' direct wholly-owned subsidiary concurrent with Hawaiian's reorganization and reacquisition by Holdings in June 2005. References to "the Company", "we", "us" or "our" in this Annual Report on Form 10-K include both Holdings and Hawaiian unless the context requires otherwise.

*Our Business*

We are engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands (the Neighbor Island routes), between the Hawaiian Islands and certain cities in the United States (the North America routes, and together with the Neighbor Island routes, the Domestic routes), and between the Hawaiian Islands and the South Pacific, Australia, New Zealand and Asia (the International routes), collectively referred to as our Scheduled Operations. We offer non-stop service to Hawai'i from 15 U.S. mainland cities, which is more U.S. gateway cities than any other airline, and also provide approximately 144 daily flights between the Hawaiian Islands. In addition, we operate various charter flights.

We are the longest serving airline, as well as the largest airline headquartered, in the state of Hawai'i, and the 11th largest domestic airline in the United States based on revenue passenger miles (RPMs) reported by the Research and Innovative Technology Administration Bureau of Transportation Services as of October 2022, the latest data available.

At December 31, 2022, our fleet consisted of 19 Boeing 717-200 aircraft for the Neighbor Island routes and 24 Airbus A330-200 aircraft and 18 Airbus A321neo aircraft utilized primarily on our North America and International routes. Additionally, we own two ATR42 and one ATR72 aircraft, which were previously utilized in our "'Ohana by Hawaiian" operations that we terminated during 2021. Following termination of operations, we committed to a plan of sale and reclassified the ATR aircraft and related asset group as assets held for sale on the Consolidated Balance Sheets. We expect to complete our disposition of the asset group in the first half of 2023. Refer to Note 11 of the Notes to Consolidated Financial Statements for additional discussion.

We will also expand our cargo business. On October 20, 2022, we entered into an Air Transportation Services Agreement (ATSA) with Amazon.com Services LLC (Customer), a wholly-owned subsidiary of Amazon.com Inc. (Amazon), to provide certain air cargo transportation services to the Customer for an initial term of eight years. Thereafter, the Customer may elect to extend the ATSA for two years and, at the end of such period, the parties may mutually agree to extend the term for three additional years. The ATSA provides for us to initially operate ten A330-300F aircraft for the air cargo transportation services with the Customer having the right to enter into work orders for additional aircraft. We will supply flight crews, perform maintenance and certain administrative functions, and procure aircraft insurance. The Customer will pay us a fixed monthly fee per aircraft, a per flight hour fee, and a per flight cycle fee for each flight cycle operated. The Customer will also reimburse us for certain operating expenses, including fuel, certain maintenance, and insurance premiums. Services under the ATSA are anticipated to begin in the fourth quarter of 2023.

Our goal is to be the number one destination carrier serving Hawai'i. We are devoted to the travel needs of the residents of and visitors to Hawai'i and we offer a unique travel experience. We are strongly rooted in the culture and people of Hawai'i and we seek to provide high quality service to our customers that exemplifies the spirit of Aloha.

*Purpose and Values*

Our purpose is to connect people with Aloha**.** It captures how we bring people closer together, and how we share the Aloha spirit with the people and places we serve. It is core to who we are, how we see the world and how we engage with the people and places around us. Aloha is a way of life, but also a choice each of our employees makes every day, constantly striving to be the very best we can be. With Aloha in everything we do, we share moments and our spirit with guests and each other.

Our values, reflected below, guide how we act, lead, and make decisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mālama (Care): We care about the people and places we serve, and personally commit to their well-being

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ho'okipa (Hospitality): We are genuine hosts, welcoming people into our home with warmth, gratitude and full hearts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lōkahi (Collaboration): We come together in harmony, always seeking better ways to succeed as a team

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Po'okela (Excellence): We strive for excellence, competing to thrive

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

*Impacts of the COVID-19 pandemic* 

The ongoing COVID-19 pandemic continues to impact passenger travel demand, with total revenue down approximately 7% during 2022 as compared to 2019. The recovery in our domestic network has been robust with passenger revenue up 8% during 2022, as compared to the same period in 2019, while international revenue continues to lag the recovery in domestic travel, with revenue down 61% during 2022, as compared to the same period in 2019.

During 2022, our domestic network accounted for approximately 89% of total passenger revenue. We continue to monitor developments relating to the easing of restrictions on international travel by international governments, including by the government of Japan, as Japan represented a large percentage of our pre-pandemic international revenue. In late September 2022, Japan announced that passenger arrival caps would be lifted in October 2022. However, requirements remain in effect for travelers to show proof of COVID-19 vaccination or a pre-travel negative PCR test result. In October 2022, the Republic of Korea announced that it was eliminating all remaining COVID-related restrictions for all arriving guests, effective immediately, with post-arrival tests and proof of vaccination no longer required.

***Flight Operations***

Our flight operations are based in Honolulu, Hawai'i. As of December 31, 2022, we operated 216 scheduled flights with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Daily service on our North America routes between the state of Hawai'i and Long Beach, Los Angeles, Oakland, Ontario, Sacramento, San Diego, San Francisco, and San Jose, California; Las Vegas, Nevada; Portland, Oregon; Seattle, Washington; Phoenix, Arizona; New York City, New York; Austin, Texas; and Boston, Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Daily service on our Neighbor Island routes among the four major islands of the state of Hawai'i.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Scheduled service on our International routes between the state of Hawai'i and Tokyo (Haneda), Japan, Tokyo (Narita), Japan, and Osaka, Japan; Sydney, Australia; Auckland, New Zealand; Pago Pago, American Samoa; Papeete, Tahiti; and Seoul, South Korea.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In addition, we operate various ad hoc charters.

As of December 31, 2022, the following international destinations remain suspended and have not resumed service:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Service between the state of Hawai'i and Sapporo, Japan and Fukuoka, Japan.

In January 2022, we announced the indefinite suspension of our service to Brisbane, Australia. However, we continue to operate our five-times-weekly service to Sydney, Australia and maintain our code-share partnership with Virgin Australia.

In November 2022, we announced new weekly service between Honolulu, Hawai'i and Rarotonga, the Cook Islands, which will commence in May 2023.

***Fuel***

Our results of operations are significantly impacted by changes in the price and availability of aircraft fuel. The following table shows our aircraft fuel consumption and costs:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Year</u>** | **Gallons<br>consumed** | **Total cost,<br>including taxes** | **Average cost<br>per gallon** | **Percent of<br>operating expenses** |
| | **(in thousands)** | **(in thousands)** | | |
| 2022 | 239231 | $817077 | $3.42 | 28.7% |
| 2021 | 179494 | $363003 | $2.02 | 21.6% |
| 2020 | 106225 | $161363 | $1.52 | 10.8% |

---

As illustrated by the table above, fuel costs constitute a significant portion of our operating expenses. We purchase aircraft fuel at prevailing market prices and seek to manage economic risks associated with fluctuations in aircraft fuel prices by entering into various derivative financial instruments. In 2020, we suspended our fuel derivative program as a result of the COVID-19 pandemic. We recommenced the program during 2022.

***Aircraft Maintenance***

Our aircraft maintenance programs consist of a series of phased or continuous checks for each aircraft type. These checks are performed at specified intervals measured by calendar months, time flown, and by the number of takeoffs and landings, or cycles operated. In addition, we perform inspections, repairs, and modifications of our aircraft in response to FAA directives. We perform checks ranging from "walk around" inspections by our pilots before each flight's departure to major overhauls of the airframes which can take several weeks to complete. Aircraft engines are subject to phased maintenance programs designed to detect and remedy potential problems before they occur. Certain airframe and engine parts and components, whose service

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

lives are time or cycle controlled, are replaced or refurbished prior to the expiration of their time or cycle limits. We have contracts with third parties to provide certain maintenance on our aircraft and aircraft engines.

***Marketing and Ticket Distribution***

We utilize various distribution channels for marketing and ticket distribution including our website *www.hawaiianairlines.com*, (primarily for our North America and Neighbor Island routes) and travel agencies and wholesale distributors (primarily for our International routes).

Our website is available in English, Japanese, Korean and Chinese, and offers our customers information on our flight schedules and status, information on our *HawaiianMiles* frequent flyer program, the ability to book reservations on our flights or connecting flights with any of our code-share partners, and the ability to purchase hotel, car and vacation packages. We also distribute our fares through online travel agencies.

***Frequent Flyer Program***

The *HawaiianMiles* frequent flyer program was founded in 1983, and has continued to grow over the years, with approximately 11.7 million total members as of December 31, 2022. Approximately 63% of frequent flyer program members reside in the U.S. mainland, approximately 23% reside in Hawai'i, and the remainder reside within our international markets.

The *HawaiianMiles* program awards miles based on customer flight miles, providing more generous earning potential on competitive longer haul routes between the U.S. mainland and international cities and Hawai'i. Our members generate approximately 40% of all passenger revenue. Our Pualani Gold and Platinum status levels recognize our top fliers with additional benefits such as priority airport experiences, Premier Club access, seat upgrades and enhanced baggage allowances. Our Platinum members both fly more frequently and generate a revenue premium of approximately 39% as compared to non-members on our North American and International routes.

With a large Hawai'i-based route network, our program has developed an extensive network of partnerships with leading national and local companies that allow members to earn miles beyond their flight activity. Partnerships in key spend categories such as grocery, retail, dining, banking and home improvement provide opportunities for member engagement and third-party revenues.

Hawaiian's partnerships with Barclays, Bank of Hawaii and Mastercard to deliver key products are drivers of engagement and revenues. The HawaiianMiles program has over a half-million cardholders between the Barclays' issued World Elite Mastercard and the Bank of Hawaii VISA debit card. These products allow members to accumulate more miles between their trips on Hawaiian and are critical engagement tools for not only the loyalty program, but also the airline.

The number of free travel awards used for travel on Hawaiian was approximately 738,000 in 2022. The number of free travel awards as a percentage of total revenue passengers was approximately 7% and 8% in 2022 and 2021, respectively. We believe displacement of revenue passengers by passengers using free travel awards is reduced by our ability to manage frequent flyer seat inventory, and the relatively low ratio of free award usage to total revenue passengers.

Enhancing our loyalty offering, for *HawaiianMiles* members who do not reach Pualani elite status, we offer our Premier Club subscription program. Launched over 30 years ago, our subscription service allows members to enjoy free baggage, access to airport clubs, priority check-in and other value adds. With an annual rate currently between $199 to $299, Hawaiian is able to generate ancillary revenues while helping to keep future customer purchases on Hawaiian flights.

In April 2021, the Company announced the termination of its *HawaiianMiles* expiration policy, effective April 1, 2021. Prior to April 1, 2021, accounts with no activity (miles earned or redeemed) for 18 months automatically expired. Since April 1, 2021, *HawaiianMiles* accounts do not expire.

***Code-Share and Other Alliances***

We have marketing alliances with other airlines to offer connecting services, as well as frequent flier program relationships that provide reciprocal frequent flyer mileage accrual and redemption privileges, and code-shares on certain flights. These programs enhance our revenue opportunities by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing value to our customers by providing easier access to more travel destinations and better mileage accrual/redemption opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• giving customers access to more connecting flights from other airlines; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing our members and members of our alliance partners' frequent flyer programs an opportunity to travel on our system while earning mileage credit in the alliance partners' programs.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

Our marketing alliances with other airlines as of December 31, 2022 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Hawaiian Miles<br>Frequent Flyer<br>Agreement** | **Other Airline<br>Frequent Flyer<br>Agreement** | **Code-share—Hawaiian<br>Flight # on Flights<br>Operated by Other<br>Airline** | **Code-share—Other<br>Airline Flight # on<br>Flights Operated by<br>Hawaiian** |
| American Airlines | No | Yes | No | Yes |
| China Airlines | Yes | Yes | Yes | Yes |
| Delta Air Lines | No | Yes | No | Yes |
| Japan Airlines | Yes | Yes | Yes | Yes |
| JetBlue | Yes | Yes | Yes | Yes |
| Korean Air | Yes | Yes | Yes | Yes |
| Philippine Airlines | No | No | No | Yes |
| Turkish Airlines | No | No | No | Yes |
| United Airlines | No | Yes | No | Yes |
| Virgin Atlantic Airways | Yes | Yes | No | No |
| Virgin Australia | Yes | Yes | Yes | No |

---

***Competition***

The airline industry is highly competitive. We believe that the principal competitive factors in the airline industry are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Flight frequency and schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Customer service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On-time performance and reliability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Name recognition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Marketing affiliations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Frequent flyer benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Aircraft type;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Change fee waivers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Safety record; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In-flight services.

*Domestic*—We face multiple competitors on our North America routes including major network carriers such as Alaska Airlines (AS), American Airlines (AA), United Airlines (UA), Delta Airlines (DL), and Southwest Airlines (WN). Various charter companies also provide non-scheduled service to Hawai'i, mostly under public charter arrangements. Our Neighbor Island competitors consist of interisland carriers, which include Mokulele Airlines, Southwest Airlines, and a number of other "air taxi" companies.

*International*—We are the only provider of direct service between Honolulu, Hawai'i and each of Sapporo, Japan; Fukuoka (currently suspended), Japan; Pago Pago, American Samoa; and Papeete, Tahiti. We will begin service between Honolulu, Hawai'i and Rarotonga, the Cook Islands in May 2023 and will be the only airline to offer non-stop flights between the U.S. and the Cook Islands. However, we face multiple competitors from both domestic and foreign carriers on our other international routes.

***Employees and Human Capital Management***

Our workforce is a key driver to our success.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

As of December 31, 2022, we had 7,108 active employees, of whom approximately 81.3% were covered by labor agreements with the following organized labor groups:

---

| | | | |
|:---|:---|:---|:---|
| **Employee Group** | **Represented by** | **Number of Employees** | **Agreement amendable on (\*)** |
| Flight deck crew members | Air Line Pilots Association (ALPA) | 1012 | July 1, 2022 |
| Cabin crew members | Association of Flight Attendants (AFA) | 2231 | April 2, 2025 |
| Maintenance and engineering personnel | International Association of Machinists and Aerospace Workers (IAM-M) | 824 | February 15, 2027 |
| Clerical | International Association of Machinists and Aerospace Workers - Clerical Division (IAM-C) | 1655 | February 15, 2027 |
| Flight dispatch personnel | Transport Workers Union (TWU) | 59 | April 21, 2027 |

---

\* Our relations with labor unions representing our airline employees are governed by the Railway Labor Act of 1926 (the Railway Labor Act). Under the Railway Labor Act, a collective bargaining agreement between us and the labor unions does not expire, but instead becomes amendable as of a stated date if either party wishes to modify the terms of the agreement.

In February 2022, our IAM-M and IAM-C employees ratified a new collective bargaining agreement (CBA), which included scheduled pay rate increases, a signing bonus valued at approximately $2.1 million, improved health benefits and cost sharing, as well as the establishment of Health Retirement Accounts (HRAs) for retirees. During the second quarter, we recorded approximately $2.6 million in one-time CBA related expenses associated with a voluntary separation program and establishment of the HRA plan.

In April 2022, flight dispatch personnel represented by the Transport Workers Union (TWU), ratified a new CBA. The terms of the new CBA were consistent with those of the IAM discussed above; however, the impact of the TWU CBA is not material to our financial statements.

On July 1, 2022, our collective bargaining agreement with representatives of our ALPA employees became amendable. In February 2023, the Flight deck crew members ratified a new four year CBA, which includes, amongst other things, a signing bonus, pay scale increases across all fleet types, improved health benefits and cost sharing, and enhancements to the Company's postretirement and disability plans.

*Engagement, Community and Culture* 

We recognize the importance of having an engaged workforce and seek to retain our employees through competitive compensation and benefits packages and by investing in training, mentoring, and career development.

We engage with our employees through various channels and initiatives, including via our Nā Leo (Our Voice) survey, a regular confidential employee survey that helps measure employee engagement. We review survey feedback with our management, Board of Directors, and company-wide, and we use our findings to help inform decision-making and drive improvements within the company.

We also understand that our commitment to our workforce extends to the communities of which both we and they are a part. We have several internship programs in which we train and recruit local candidates who are interested in pursuing a career with us. For those interested in working as an aviation mechanic, we partner with Honolulu Community College and the International Association of Machinists and Aerospace Workers union. For those interested in working in information technology or another of our corporate workgroups, we offer paid summer internships at our Honolulu headquarters and Phoenix, Arizona office.

*Diversity and Inclusion*

Our diversity efforts include participation in career events and conferences for veterans, people with disabilities, women, and underrepresented groups. In 2022, we were proud to lead the U.S. industry with the highest percentage of women pilots at more than 9.5%; well above the 2021 global average of 5.8%. We implemented and maintain an affirmative action program that employs evidence-based processes to inform our effort to minimize gender, ethnic/racial, and other bias in hiring and promotional practices. We are committed to creating an inclusive environment where our applicants and employees feel comfortable self-identifying their gender, race, and veteran and disability status. More than 80% of our active workforce identify as diverse based on ethnicity and more than 48% based on gender. We have policies that support inclusion of everyone

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

in our workforce, including all sexual orientations and gender identities or expressions, and we provide inclusive benefits for same- and different-sex spouses. We also support the diversity and interests of our workforce through the following employee resource groups: ASCEND (A Support Community for Employees Nurturing Diverse Abilities), LGBTQA, Network for Black Employees and Allies, Sustainability, Wahine (Women) in Aviation and Veterans.

We take pride in and value the traditional culture of Hawai'i. The certification, which is offered at no cost to our employees, demonstrates our commitment to honor and perpetuate Hawai'i's rich culture by incentivizing our team members to share Hawai'i's native language with our guests and each other. We expanded our 'ōlelo Hawai'i (Hawaiian language) certification program for crewmembers and made it available for all employees. The 'ōlelo Hawai'i program complements our Ke Kumu project, which consists of employee-led hula and Hawaiian language classes.

***Seasonality***

Hawai'i is a popular vacation destination for travelers. For that reason, our operations and financial results are subject to substantial seasonal and cyclical volatility, primarily due to leisure and holiday travel patterns. Demand levels are typically weaker in the first quarter of the year with stronger demand periods occurring during the months of June, July, August, and December. We may adjust our pricing or the availability of particular fares to obtain an optimal passenger load factor depending on seasonal demand differences.

Our cargo operations are also subject to seasonal volatility. Global trade flows are typically seasonal in nature, with peak activity during the retail holiday season. Demand for air cargo capacity is historically low following a seasonal holiday peak in the fourth quarter of the previous year.

***Customers***

Our business is not dependent upon any single type of customer or groups of customers and the loss of any one type of customer would not have a material adverse effect on our business.

We have entered into agreements with our co-brand, payment, and loyalty partners that may contain exclusivity aspects which restrict us and our subsidiaries from entering into certain arrangements with other payment and loyalty partners. These arrangements generally extend for the terms of the agreements. We believe the financial benefits generated by the exclusivity aspects of these arrangements outweigh the limitations imposed under such agreements.

***Regulation***

Our business is subject to extensive and evolving international, federal, state and local laws and regulations. Many governmental agencies regularly examine our operations to monitor compliance with applicable laws and regulations. Governmental authorities can enforce compliance with applicable laws and regulations and obtain injunctions or impose civil or criminal penalties or modify, suspend, or revoke our operating certificates in case of violations.

*Industry Regulations*

We are subject to the regulatory jurisdiction of the DOT and the FAA. The DOT has jurisdiction over international routes and fares for some countries (based upon treaty relations with those countries), consumer protection policies including baggage liability, denied boarding compensation, and unfair competitive practices as set forth in the Airline Deregulation Act of 1978. The FAA has regulatory jurisdiction over flight operations, including equipment, ground facilities, security systems, maintenance, and other safety matters. Pursuant to these regulations, we have established, and the FAA has approved, a maintenance program for each type of aircraft we operate that provides for the ongoing maintenance of our aircraft, ranging from frequent routine inspections to major overhauls.

*Maintenance Directives*

The FAA approves all airline maintenance programs and modifications to such programs. In addition, the FAA certifies and licenses the air carrier, mechanics, inspectors, and repair stations that perform inspections, repairs and overhauls.

The FAA frequently issues airworthiness directives in response to specific incidents or reports by operators or manufacturers, mandating operators of specified equipment types to perform prescribed inspections, repairs or modifications within stated time periods and/or aircraft hours and cycles.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

*Airport Security*

The Aviation and Transportation Security Act (Aviation Security Act) mandates that the Transportation Security Administration (TSA) provide screening of all passengers and property, including mail, cargo, carry-on and checked baggage, and other articles that will be carried aboard a passenger aircraft. Under the Aviation Security Act, substantially all security screeners at airports are federal employees and airline and airport security is overseen and performed by federal employees, including security managers, law enforcement officers, and Federal Air Marshals. The Aviation Security Act also provides for increased security on flight decks of aircraft (and requires Federal Air Marshals to be present on certain flights), improved airport perimeter access security, airline crew security training, enhanced security screening of passengers, baggage, cargo, mail, employees and vendors, enhanced training and qualifications of security screening personnel, provision of passenger data to U.S. Customs and Border Protection and enhanced background checks.

The TSA also has the authority to impose additional fees on air carriers, if necessary, to cover additional federal aviation security costs.

*Environmental and Employee Safety and Health*

We are subject to various laws and regulations concerning environmental matters and employee safety and health in the U.S. and other countries in which we do business. Many aspects of airlines' operations are subject to increasingly stringent federal, state, local, and foreign laws protecting the environment. U.S. federal laws that have a particular impact on us include the Airport Noise and Capacity Act of 1990, the Clean Air Act, the Resource Conservation and Recovery Act, the Clean Water Act, the Safe Drinking Water Act, and the Comprehensive Environmental Response, Compensation, and Liability Act. Certain of our operations are also subject to the oversight of the Occupational Safety and Health Administration (OSHA) concerning employee safety and health matters. The U.S. Environmental Protection Agency (EPA), OSHA, and other federal agencies are authorized to promulgate regulations that affect our operations. In addition to these federal activities, states are delegated certain authority under the aforementioned federal statutes. Many state and local governments have adopted environmental and employee safety and health laws and regulations, some of which, like some laws in California, are similar to or stricter than federal requirements.

The EPA is authorized to regulate aircraft emissions and has historically implemented emissions control standards previously adopted by the International Civil Aviation Organization (ICAO). Our aircraft comply with the existing EPA standards, as applicable, by engine design date.

We seek to minimize the impact of carbon emissions from our operations through reductions in our fuel consumption and other efforts. We have reduced the fuel needs of our aircraft fleet through the retirement and replacement of certain aircraft in our fleet with newer, more fuel-efficient aircraft. In addition, we have implemented fuel saving procedures in our flight and ground support operations that further reduce carbon emissions. We are also supporting initiatives to develop alternative fuels and efforts to modernize the air traffic control system in the U.S. as part of our efforts to reduce our emissions and minimize our impact on the environment.

*Noise Abatement*

Under the Airport Noise and Capacity Act, the DOT allows local airport authorities to implement procedures designed to abate special noise problems, provided such procedures do not unreasonably interfere with interstate and foreign commerce, or the national transportation system. Certain airports, including the major airports at Los Angeles, San Diego, San Francisco, and San Jose, California; Sydney, Australia; and Tokyo, Japan, have established airport restrictions to limit noise, including restrictions on aircraft types to be used and limits on the number of hourly or daily operations or the time of such operations. Local authorities at other airports could consider adopting similar noise restrictions. In some instances, these restrictions have caused curtailments in services or increases in operating costs, and such restrictions could limit our ability to expand our operations and reduce our profitability.

*Civil Reserve Air Fleet Program*

The U.S. Department of Defense (DOD) regulates the Civil Reserve Air Fleet (CRAF) and government charters. We have elected to participate in the CRAF program by agreeing to make aircraft available to the federal government for use by the U.S. military under certain stages of readiness related to national emergencies. The program is a standby arrangement that allows the DOD to call on as many as 12 contractually committed Hawaiian aircraft and crews to supplement military airlift capabilities. In August 2021, DOD asked us to activate two aircraft under the CRAF program for Stage 1 activation as defined under the program. The activation was completed in September 2021. As of December 31, 2022, none of our aircraft were mobilized under this program.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

*Other Regulations*

Other aspects of airline operations are subject to regulation or oversight by federal agencies other than the FAA and the DOT. Federal antitrust laws are enforced by the U.S. Department of Justice. The U.S. Postal Service has jurisdiction over certain aspects of the transportation of mail and related services provided by our cargo services. Labor relations in the air transportation industry are generally regulated under the Railway Labor Act. We and other airlines certificated prior to October 24, 1978 are also subject to preferential hiring rights granted by the Airline Deregulation Act to certain airline employees who have been furloughed or terminated (other than for cause). The Federal Communications Commission issues licenses and regulates the use of all communications frequencies assigned to us and other airlines. There is increased focus on consumer protection both on the federal and state level. We cannot always accurately predict the cost of such requirements on our operations.

Additional laws and regulations are proposed from time to time, which could significantly increase the cost of airline operations by imposing additional requirements or restrictions. U.S. law restricts the ownership of U.S. airlines to corporations where no more than 25% of the voting stock may be held by non-U.S. citizens and the airline must be under the actual control of U.S. citizens. The President and two-thirds of the Board of Directors and other managing officers must also be U.S. citizens. Regulations also have been considered from time to time that would prohibit or restrict the ownership and/or transfer of airline routes or takeoff and landing slots and authorizations. Also, the award of international routes to U.S. carriers (and their retention) is regulated by treaties and related agreements between the U.S. and foreign governments, which are amended from time to time. We cannot predict what laws and regulations will be adopted or what changes to international air transportation treaties will be adopted, if any, or how we will be affected by those changes.

***Available Information***

General information about us, including the charters for the committees of our Board of Directors, can be found at *https://www.hawaiianairlines.com*. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as well as any amendments and exhibits to those reports that we file with the Securities and Exchange Commission (SEC) are available for download, free of charge, on our website. The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, which can be found at *http://www.sec.gov*.

We also use the investor relations section of our website *https://newsroom.hawaiianairlines.com/investor-relations* and our website (*https://www.hawaiianairlines.com*) as a means of disclosing material information and for complying with our disclosure obligations under Regulation FD.

Information on our website is not incorporated into this Annual Report on Form 10-K or our other securities filings and is not a part of such filings.

**ITEM 1A.&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS.**

Investing in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this Annual Report on Form 10-K, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes, before making a decision to invest in our common stock. Our business, financial condition, results of operations or prospects could also be harmed by risks and uncertainties not currently known to us or that we currently do not believe are material. If any of the risks actually occur, our business, financial condition, results of operations and prospects could be adversely affected. In that event, the market price of our common stock could decline, and you could lose part or all of your investment.

**<u>RISK FACTOR SUMMARY</u>**

Our business operations are subject to numerous risks and uncertainties, including those outside of our control, that could cause our actual results to be harmed, including risks regarding the following:

*Business Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any material adverse impacts of the ongoing global COVID-19 pandemic on our operations and financial performance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future obligations and related impacts of such obligations with respect to our agreements with Amazon

*Economic Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• global economic and market volatility

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dependence on tourism to, from, and amongst the Hawaiian Islands

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dependence on the price and availability of fuel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our exposure to foreign currency exchange rate fluctuations

*Liquidity Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• credit market conditions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our debt, including covenants that restrict our financial and business operations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain operating and other restrictions under our agreements with the U.S. Department of the Treasury (the Treasury)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requirements for us to maintain reserves under our credit card processing agreements

*Competitive Environment Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the extremely competitive environment in which we operate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of inflation on our profitability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of interest rate increases on the fair value of our fixed income investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the concentration of our business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the competitive advantages held by network carriers in the North America market and our reliance on commercial relationships with other airlines to provide access to Domestic and International routes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of increased capacity provided by our competitors on our North American and Neighbor Island routes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of competition from domestic and foreign carriers on our International routes

*Information Technology and Third-Party Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with U.S. and foreign laws and regulations relating to privacy, data protection, and data security and security standards imposed by our commercial partners

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or perceived failure to protect customer or other personal or confidential information

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our increasing dependence on technology and automated systems to operate our business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reliance on third-party contractors to provide certain facilities and services

*Labor Relations and Related Costs Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dependence on satisfactory labor relations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to attract and retain qualified personnel and key executives

*Strategy and Brand Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully implement our route and network strategy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• damage to our reputation or brand image

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse publicity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• concentration of our cargo business with Amazon

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to realize the full benefits of our agreements with Amazon

*Airline Industry, Regulation and Related Costs Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the substantial operating leverage of the airline industry and other conditions beyond its control

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any inability to maintain adequate facilities and infrastructure at airports within the state of Hawai'i

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• substantial seasonal and cyclical volatility of our business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• terrorist attacks or international hostilities, or the fear of terrorist attacks or hostilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• extensive government regulation, new regulations and taxes impacting the airline industry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• climate change, including increased regulation and the impact of severe weather events

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• federal budget constraints

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with various environmental laws and regulations required of the airline industry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expansion into non-U.S. jurisdictions and the related laws and regulations to which we are subject

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation or regulatory action in the normal course of business or otherwise

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in tax laws or regulations and our ability to use our net operating loss carryforwards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in our insurance costs or reductions in coverage

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• extended interruptions or disruptions in service

*Fleet and Fleet-Related Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* our dependence on a limited number of suppliers for aircraft, aircraft engines and parts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant future financial commitments and operating costs related to our agreements to purchase Boeing 787-9 aircraft

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays in scheduled aircraft deliveries or other loss of fleet capacity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any impairment and other related charges related to the value of our long-lived assets

*Common Stock Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in our share price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to repurchase our common stock or pay dividends on our common stock under the terms of our federal payroll support program (PSP) agreements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future earnings and earnings per share impacts from fluctuations in the value of the Amazon warrants

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dilution of existing stockholders and market price impacts related to the exercise of our outstanding warrants

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on voting and ownership by non-U.S. citizens in our certificate of incorporation and exclusive forum provisions in our bylaws

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provisions of our certificate of incorporation and bylaws and our agreements with Amazon may delay or prevent a change of control

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amazon may become a significant stockholder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the publication of research about us by analysts

*Securities Offerings Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of our indebtedness and liabilities related to our debt offerings on the cash flow available for our operations and to satisfy our obligations related such debt

*Restatement of our Consolidated Financial Statements Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* challenges to developing and maintaining effective internal control over financial reporting so that we can accurately report our financial results in a timely manner

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation over the restatement of our previously issued financial statements

**BUSINESS RISKS** 

***The global COVID-19 pandemic has had and may continue to have a material adverse impact on our operations and financial performance. We are unable to predict the extent to which the pandemic and related impacts will continue to adversely affect our business operations, liquidity, financial performance, results of operations, financial position or the achievement of our strategic objectives.***

Our operations and financial performance have been negatively impacted by the COVID-19 pandemic. While we have experienced increases in demand for travel to and within the state of Hawai'i as COVID-19 infection rates and incidences of severe illness have declined, we cannot predict future developments related to the COVID-19 pandemic and responses thereto, including the emergence of new variants of the virus, periods of increased infection rates, vaccine mandates or recommendations related to travel to and within the state of Hawai'i. As such, the economic consequences of future developments of the COVID-19 pandemic are uncertain, may be rapidly changing and are difficult to predict. The pandemic's impact on our operations and financial performance, as well as its impact on our ability to successfully execute our business strategy and initiatives, remains uncertain. Further, the ultimate impact of the COVID-19 pandemic on our operations and financial performance depends on many factors that are not within our control, including, but not limited, to: governmental, business and individuals' actions that have been and continue to be taken in response to the pandemic (including restrictions on and requirements related to travel, transport and our workforce). The COVID-19 pandemic has subjected our operations, financial performance and financial condition to a number of risks, including, but not limited to those discussed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial risks: In response to the COVID-19 pandemic, we experienced a significant decrease in demand for air travel and reduced load capacity on flights. For the twelve months ended December 31, 2022, our revenue was about $2.6 billion, up approximately $1.0 billion compared to 2021, but down approximately $191.0 million, or 6.7%, compared to the pre-pandemic period in 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operations- and customer-related risks: Across our business and as a result of the COVID-19 pandemic, we have faced operational challenges, including continued delay in the recovery of international travel. Although several operational challenges have lessened as governments have lifted or modified travel restrictions, vaccination rates have increased, and demand for air travel has recovered meaningfully on certain routes, we are unable to predict future events that may constrain the recovery of or demand for air travel as a result of the ongoing COVID-19 pandemic. Demand for travel has fluctuated based on current levels of COVID-19 or other infection, and may continue to do so. We expect levels of passenger traffic and revenue, as compared to pre-COVID-19 pandemic levels, to improve but remain depressed, particularly with respect to international markets due to delays in resumption of international travel. Additionally, we expect to incur additional costs if we continue to increase the number of flights offered as passenger traffic to the

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

Hawaiian Islands increases, which we will incur before the anticipated additional revenue is earned. Our workforce has been and may continue to be significantly impacted by constrained labor markets, staffing shortages, and the continued spread and health impacts of the COVID-19 pandemic, which could have a negative impact on our operations. We have implemented enhanced measures to protect the health and safety of our passengers and employees and may be required or determine to take additional safety measures to minimize the transmission of COVID-19 that may further impact our operations and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legal and regulatory risks: While we are endeavoring to take all reasonable precautions and have instituted numerous health and safety measures to protect our guests and our employees, there can be no assurance that guests will not be exposed to COVID-19 while traveling, or that our employees will not be exposed to COVID-19 while working. Should such exposure be determined to have been caused while traveling or working, notwithstanding the steps we take to protect our guests and employees, we may be subject to civil lawsuits or employee grievances that give rise to legal liability. While we ended our vaccine requirement as a condition of employment effective October 1, 2022, we continue to encourage various health and safety measures to protect our guests and our employees from the spread of COVID-19. Despite the removal of the vaccine requirement, we continue to be subject to civil lawsuits and employee grievances that may give rise to legal liability. While we carry employment practices liability insurance, we have become subject to claims related to reasonable accommodation requests, which have resulted and may continue to result in litigation. Furthermore, while the airline industry is committed to the safety of our guests and employees and has taken and will continue to take all necessary precautions, there can be no assurance that federal legislation or federal regulation will not be enacted or reinstated that increases our costs, our ongoing compliance burdens, and our exposure to claims of non-compliance.

The COVID-19 pandemic or similar events may also affect our operating and financial results in ways that are not presently known to us or that we currently do not expect. The COVID-19 pandemic may also exacerbate other risks described in this "Risk Factors" section, including, but not limited to, our dependence on leisure travel to Hawai'i, our competitiveness, demand for air travel generally and our services specifically, shifting consumer preferences and our substantial outstanding indebtedness.

***Our agreement with Amazon increases the role of cargo in our business model, which may have negative impacts on our operating results and financial condition.***

Our business has historically focused on passenger flights. The ATSA with Amazon is anticipated to increase our cargo operations. Historically, our revenue from non-passenger operations, which includes cargo, accounted for approximately 11.6%, 14.1%, and 21.3% of total revenue during the years ending December 31, 2022, 2021 and 2020, respectively. Under the ATSA, cargo operations are expected to account for a larger portion of our revenue. Our cargo operations for Amazon may not generate the levels of revenue anticipated. We expect to incur additional costs in order to ramp up and prepare for increased cargo operations, including hiring crew, opening mainland bases and preparing to provide line maintenance for the Amazon fleet. Our pre-service efforts could be costly and be time-consuming and distracting to our management. Additionally, we will incur costs before we generate revenue from our cargo operations for Amazon, which may negatively impact our business and results of operations. Once we begin generating revenue from cargo operations for Amazon, some or all of that revenue will be offset against the value of Amazon's vested warrant shares due to our accounting policies.

**ECONOMIC RISKS**

***Our business is affected by global economic volatility, including any future economic downturns.***

Our business and results of operations are significantly impacted by general world-wide economic conditions, including any future economic downturns. Our business depends on the demand for travel to, from and within the Hawaiian Islands and such demand for discretionary air travel remains unpredictable. Further deterioration or instability in demand, including resulting from any reinstatement of COVID-19 related travel restrictions or recommendations, ongoing economic uncertainty or recession may result in sustained reduction in our passenger traffic and/or increased competitive pressure on fares in the markets we serve, which could continue to negatively impact our results of operations and financial condition. There can be no assurance that we will be able to offset passenger revenue reductions with other revenue, by reducing our costs or by seeking financing arrangements or other programs or opportunities. We also may not have sufficient cash flows to support our debt obligations, on which more detail is provided in Note 8 of the Notes to Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

***Our business is highly dependent on tourism to, from, and amongst the Hawaiian Islands and our financial results have been impacted and may continue to be impacted by the current and any future downturn in tourism levels.***

Our principal base of operations is in Hawai'i and our revenue is linked primarily to the number of travelers (mainly tourists) to, from and amongst the Hawaiian Islands. As a result of the COVID-19 pandemic and government mandates related to travel, we experienced a significant decline in the demand for travel to, from and amongst the Hawaiian Islands. The State of Hawai'i stopped imposing quarantine, testing and vaccination requirements at the end of the first quarter of 2022, but certain foreign government restrictions remained in effect for international travelers during 2022. We have and will continue to incur costs as we further increase our number of flights as passenger traffic to and within the Hawaiian Islands increases, which we incur before the anticipated additional revenue is earned.

Hawai'i tourism levels are generally affected by the economic and political climate impacting air travel and tourism markets generally, including the availability of hotel accommodations, the popularity of tourist destinations relative to other vacation destinations, and other global factors including health crises, natural disasters, safety, and security. While we have seen some increased tourism activity in the state of Hawai'i since the start of the COVID-19 pandemic, we cannot predict if and when tourism levels will be sustained at levels seen prior to the COVID-19 pandemic, particularly with respect to international markets. Additionally, from time to time, various events and industry-specific problems such as labor strikes have had a negative impact on tourism generally and in Hawai'i specifically. The occurrence of natural disasters, such as hurricanes, earthquakes, volcanic eruptions, and tsunamis, in Hawai'i or other parts of the world, could also have an adverse effect or compound the existing adverse effect of the COVID-19 pandemic or economic downturn on tourism. In addition, the potential or actual occurrence of terrorist attacks, wars, and/or the threat of other negative world events have had, and may in the future have, a material adverse effect on or compound the ongoing effect of the COVID-19 pandemic on tourism.

***Our business is highly dependent on the price and availability of fuel.***

Our results and operations are heavily impacted by the price and availability of jet fuel. The cost of jet fuel remains high and the availability of jet fuel remains volatile. The cost and availability of jet fuel are subject to political, economic, and market factors that are generally outside of our control, including those related to the conflict between Russia and Ukraine. Prices may be affected by many factors including, without limitation, the impact of political instability, crude oil production and refining capacity, unexpected changes in the availability of petroleum products due to disruptions to distribution systems or refineries, unpredicted increases in demand due to weather or the pace of global economic growth, inventory reserve levels of crude oil and other petroleum products, the relative fluctuation between the U.S. dollar and other major currencies, government taxes and regulations that increase the price or reduce the availability of jet fuel, and the actions of speculators in commodity markets. Because of the effects of these factors on the price and availability of jet fuel, the cost and future availability of fuel cannot be predicted with any degree of certainty. Also, due to the competitive nature of the airline industry, there can be no assurance that we will be able to increase our fares or other fees to sufficiently offset any increase in fuel prices.

While we may enter into derivative agreements to protect against the volatility of fuel costs, there is no assurance that such agreements will protect us during unfavorable market conditions or that counterparties will be able to perform under these hedge arrangements.

See Item 7A, *Quantitative and Qualitative Disclosures About Market Risk*, for further information regarding our exposure to the price of fuel.

***Our business is exposed to foreign currency exchange rate fluctuations.***

Prior to the COVID-19 pandemic, our business had been expanding internationally with an increasing percentage of our passenger revenue generated from our International routes. The fluctuation of the U.S. dollar relative to foreign currencies can significantly affect our results of operations and financial condition. For example, the value of the Japanese Yen has experienced significant volatility versus the U.S. dollar recently. Any weakening of the Japanese Yen relative to the U.S. dollar causes our flights, and travel in general, from Japan to Hawai'i to become more expensive to customers in Japan, which could negatively impact our business. To manage the effects of fluctuating exchange rates, we periodically enter into foreign currency forward contracts and execute payment of expenditures in those locations in local currency. As of December 31, 2022, we have Japanese Yen denominated debt totaling $163.9 million. If our business continues to expand internationally, there is no assurance that these agreements will protect us against foreign currency exchange rate fluctuations during unfavorable market conditions or that our counterparties will be able to perform under these hedge arrangements.

See Item 7A, *Quantitative and Qualitative Disclosures About Market Risk*, for further information regarding our exposure to foreign currency exchange rates.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**LIQUIDITY RISKS**

***Our financial liquidity could be adversely affected by credit market conditions.***

Our business requires access to capital markets to finance equipment purchases, including aircraft, and to provide liquidity in seasonal or cyclical periods of weaker revenue generation. In particular, we will face specific funding requirements with respect to our obligation under purchase agreements with Boeing to acquire new aircraft. We may finance these upcoming aircraft deliveries; however, the unpredictability of global credit market conditions, particularly in light of the U.S. Federal Reserve System (Federal Reserve) raising interest rates and taking extraordinary measures to avoid default, may adversely affect the availability of financing or may result in unfavorable terms and conditions.

Our current unencumbered aircraft can be financed to increase our liquidity, but such financings may be subject to unfavorable terms. In light of current market conditions, any such financings are likely to reflect loan-to-value ratios and interest rates and other terms and conditions less favorable than our recent aircraft financings.

Additionally, there can be no assurance that we will not face credit rating downgrades as a result of weaker than anticipated performance of our business or other factors, as demonstrated by our credit rating downgrades in 2020. Future downgrades could adversely affect our cost of funds and related margins, liquidity, competitive position and access to capital markets.

We can offer no assurance that financing we may need in the future will be available when required or that the economic terms on which it is available will not adversely affect our financial condition. If we cannot obtain financing or we cannot obtain financing on commercially reasonable terms, our business and financial condition may be adversely affected.

***Our debt could adversely affect our liquidity and financial condition, and include covenants that impose restrictions on our financial and business operations.***

As of December 31, 2022, we had approximately $1.5 billion in outstanding commercial debt, excluding funds borrowed under the federal Payroll Support Program. Our debt and related covenants could:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• require us to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing the availability of our cash flow for other purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit, along with the financial and other restrictive covenants in the agreements governing our debt, our ability to borrow additional funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• place us at a competitive disadvantage compared to other less leveraged competitors and competitors with debt agreements on more favorable terms than us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adversely affect our ability to secure additional financing in the future on acceptable terms or at all, which would impact our ability to fund our working capital, capital expenditures, acquisitions or other general corporate purpose needs.

These agreements require us to meet certain covenants. If we breach any of these covenants we could be in a default under these facilities, which could cause our outstanding obligations under these facilities to accelerate and become due and payable immediately, and could also cause us to default under our other debt or lease obligations and lead to an acceleration of the obligations related to such other debt or lease obligations. The existence of such a default could also preclude us from borrowing funds under other credit facilities.

Our ability to comply with the provisions of financing agreements can be affected by events beyond our control and a default under any such financing agreements if not cured or waived, could have a material adverse effect on us. In the event our debt is accelerated, we may not have sufficient liquidity to repay these obligations or to refinance our debt obligations, resulting in a material adverse effect on our financial condition.

***We have entered into agreements with the Treasury pursuant to the CARES Act, the CAA 2021, and the ARP 2021 that have certain operating and other restrictions.***

As a condition of receiving grants and loans under the Payroll Support Program 3 Agreement with the Treasury (PSP3 Agreement), we agreed to several restrictive requirements. Currently, we must limit executive compensation through April 1, 2023, which may restrict our ability to incentivize our executives, which may negatively affect our business operations.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

***We are required to maintain reserves under our credit card processing agreements which could adversely affect our financial and business operations.***

Under our bank-issued credit card processing agreements, certain proceeds from advance ticket sales may be held back to serve as collateral to cover any possible chargebacks or other disputed charges that may occur. As of December 31, 2022 and 2021, there were no holdbacks held by our credit card processors.

In the event of a material adverse change in our business, the holdback could incrementally increase to an amount up to 100% of the applicable credit card activity for all unflown flights, which would also cause an increase in the level of restricted cash. If we are unable to obtain a waiver, or otherwise mitigate the increase in restricted cash, it could adversely affect our liquidity and also cause a covenant violation under other debt or lease obligations and have a material adverse effect on our financial condition.

**COMPETITIVE ENVIRONMENT RISKS**

***We operate in an extremely competitive environment.***

The airline industry is characterized by low profit margins, high fixed costs, and significant price competition. We compete with other airlines on all of our Domestic and International routes. The commencement of, or increase in, service on our routes by existing or new carriers at aggressive prices has and could continue to negatively impact our operating results, including as demand for air travel rebuilds. Most of our competitors are much larger and have greater financial resources and brand recognition than we do. Moreover, competitors or potential competitors may merge or enter alliances that increase their financial resources and other strategic advantages. Aggressive marketing tactics or a prolonged fare competition initiated by one or more of these competitors could adversely affect our financial resources and our ability to compete in these markets. Additionally, our competitors have been and may continue to be more successful in navigating the challenges related to COVID-19, including having easier access to additional capital and more favorable lending terms, which could impact our ability to compete successfully in the future. Since airline markets have few natural barriers to entry, we also face the constant threat of new entrants in all of our markets.

Additional capacity to or within Hawai'i, whether from network carriers or low-cost carriers, could decrease our share of the markets in which we operate, could cause a decline in our yields, or both, which could have a material adverse effect on our results of operations and financial condition.

***Inflation may adversely affect us by increasing costs beyond what we can recover through price increases and may contribute to a recession.***

In 2022, inflation increased throughout the U.S. economy to levels not seen in decades. Inflation can adversely affect us by increasing the costs of labor, fuel and other costs as well as by reducing demand for air travel. In an inflationary environment, depending on airline industry and other economic conditions, we may be unable to raise prices enough to keep up with the rate of inflation, which would reduce our profit margins. We have experienced, and continue to experience, increases in the prices of labor, fuel and other costs of providing service. Continued inflationary pressures could impact our profitability.

In response to inflation, the Federal Reserve has increased interest rates in an effort to reduce inflationary pressures. The Federal Reserve's actions increase the risk of a recession in which demand for air travel is reduced, which could adversely affect our financial condition and results of operations.

***Interest rate increases may adversely affect the fair value of our investments.***

The Federal Reserve's interest rate increases have reduced and could continue to reduce, the fair value of our investments. Reductions in the fair value of our investments could have a negative impact on our earnings and liquidity.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

***The concentration of our business within Hawai*'*i, and between Hawai*'*i and the U.S. mainland, provides little diversification of our revenue.***

During 2022, approximately 89% of our passenger revenue was generated from our Domestic routes. Most of our competitors, particularly major network carriers with whom we compete on North American and Neighbor Island routes, enjoy greater geographical diversification of their passenger revenue. As Domestic routes account for a significantly higher proportion of our revenue than they do for most of our competitors, a proportionately higher decline in demand for our domestic routes is likely to have a relatively greater adverse effect on our financial results than on those of our competitors. Sustained reduction in demand on our Domestic routes and continued industry capacity of major network carriers on routes to, from and within Hawai'i could adversely affect our financial results.

***Our business is affected by the competitive advantages held by network carriers in the North America market.***

During 2022, approximately 73% of our passenger revenue was generated from our North America routes. The majority of competition on our North America routes is from network carriers such as Alaska Airlines, American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines, all of whom have a number of competitive advantages. Primarily, network carriers generate passenger traffic from and throughout the U.S. mainland, which enables them to attract higher customer traffic levels as compared to us.

In contrast, we lack a comparable direct network to feed passengers to our North America flights and are therefore more reliant on passenger demand in the specific cities we serve. We also rely on our code-share partner agreements (e.g. with JetBlue) to provide customers access to and from North American destinations currently unserved by us. Most network carriers operate from hubs, which can provide a built-in market of passengers depending on the economic strength of the hub city and the size of the customer group that frequents the airline. Our Honolulu and Maui hubs do not originate a large proportion of North American travel, nor do they have the population or potential customer franchise of a larger city to provide us with a significant built-in market. Passengers in the North American market, for the most part, do not originate in Honolulu, but on the U.S. mainland, making Honolulu primarily a destination rather than an origin of passenger traffic.

***Our North America and Neighbor Island routes are affected by increased capacity provided by our competitors.***

During 2022, approximately 89% of our passenger revenue was generated from our North America and Neighbor Island routes. Prior to, and during the COVID-19 pandemic, certain of our competitors increased capacity to and within Hawai'i by introducing new routes and increasing the frequency of existing routes from North America to Hawai'i and by the introduction of additional flights within the neighbor islands. We are unable to predict competitor capacity related to air travel to Hawai'i or between the neighbor islands. Any increased competitor capacity that decreases our share of traffic to Hawai'i or between the neighbor islands could ultimately have a material adverse effect on our results of operations and financial condition.

***Our International routes are affected by competition from domestic and foreign carriers.***

During 2022, approximately 11% of our passenger revenue was generated from our International routes. When our operations are not constrained by restrictions related to the COVID-19 pandemic, our competitors on these routes include both domestic and foreign carriers. Both domestic and foreign competitors have a number of competitive advantages that may enable them to attract higher customer traffic levels as compared to us.

Many of our domestic competitors are members of airline alliances, which provide customers access to each participating airline's international network, allowing for convenience and connectivity to their destinations. These alliances formed by our domestic competitors have increased in recent years. In some instances, our domestic competitors have been granted antitrust exemptions to form joint venture arrangements in certain geographies, further deepening their cooperation on certain routes. To mitigate this risk, we rely on code-share agreements with partner airlines to provide customers access to international destinations currently unserved by us.

Many of our foreign competitors are network carriers that benefit from network feed to support international routes on which we compete. In contrast, we lack a comparable direct network to feed passengers to our international flights, and are therefore more reliant on passenger demand in the specific destinations that we serve. Most network carriers operate from hubs, which can provide a built-in home base market of passengers. Passengers on our International routes, for the most part, do not originate in Hawai'i, but rather internationally, in these foreign carriers' home bases. We also rely on our code-share agreements and our relationships with travel agencies and wholesale distributors to provide customers access to and from International destinations currently unserved by us.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**INFORMATION TECHNOLOGY AND THIRD-PARTY RISKS**

***If we do not maintain the privacy and security of personal information or other information relating to our customers or others, or fail to comply with applicable U.S. and foreign privacy, data protection, or data security laws or security standards imposed by our commercial partners, our reputation could be damaged, we could incur substantial additional costs, and we could become subject to litigation or regulatory penalties.***

We receive, retain, transmit and otherwise process personal information and other information about our customers and other individuals, including our employees and contractors, and we are subject to increasing legislative, regulatory and customer focus on privacy, data protection, and data security both domestically and internationally. Numerous laws and regulations in the U.S. and in various other jurisdictions in which we operate relate to privacy, data protection, and security, including laws and regulations regarding the collection, processing, storage, sharing, disclosure, use and security of personal information and other data from and about our customers and other individuals. For example, in the European Union, the General Data Protection Regulation (GDPR) became effective in 2018. The United Kingdom has adopted legislation that substantially implements the GDPR. Additionally, California enacted the California Consumer Privacy Act (CCPA), effective as of January 1, 2020. Moreover, a new privacy law, the California Privacy Rights Act (CPRA), was approved by California voters in November 2020. The CPRA significantly modifies the CCPA and became effective in most material respects on January 1, 2023. Other states, including Virginia, Colorado, Utah and Connecticut, have enacted similar legislation. The GDPR and CCPA, and new and evolving laws such as the CPRA, and changes in laws or regulations relating to privacy, data protection and information security may require us to modify our practices with respect to the collection, use and disclosure of data. In particular, the GDPR provides for significant penalties in the case of non-compliance of up to €20 million or four percent of worldwide annual revenues, whichever is greater. The United Kingdom legislation implementing the GDPR provides for a similar penalty structure. The GDPR, CCPA, CPRA and other existing and proposed laws and regulations can be costly to comply with and can delay or impede our processing of data, result in negative publicity, increase our operating costs and subject us to claims or other remedies. The scope of laws and regulations relating to privacy, data protection, and security is changing, subject to differing interpretations, may be costly to comply with, and may be inconsistent among countries and jurisdictions or conflict with other obligations of ours.

A number of our commercial partners, including payment card companies, have imposed data security standards or other obligations relating to privacy, data protection, or data security upon us. We strive to comply with applicable laws, regulations, policies, and contractual and other legal obligations relating to privacy, data protection, and data security. However, these legal, contractual, and other actual and asserted obligations may be interpreted and applied in new ways and/or in manners that are inconsistent, and may conflict with other obligations or our practices.

Any failure or perceived failure by us to comply with laws or regulations, our privacy or data protection policies, or other actual or asserted privacy-, data protection-, or information security-related obligations to customers, or other third parties, or any actual or perceived compromise of security resulting in the unauthorized disclosure, transfer, loss, unavailability, use, or other processing of personal or other information, may result in governmental investigations and enforcement actions, governmental or private litigation, other liability, our loss of the ability to process payment card transactions, or us becoming subject to higher costs for such transactions, or public statements critical of us by consumer advocacy groups, competitors, the media or others that could cause our current or prospective customers to lose trust in us, any of which could have an adverse effect on our business. Additionally, if third-party business partners that we work with, such as vendors, violate or are alleged to violate applicable laws, applicable policies or other privacy-, data protection-, or security-related obligations, such violations may also put our customers' or others' information at risk and could in turn have an adverse effect on our business. Governmental agencies may also request or take customer data for national security or informational purposes, and also can make data requests in connection with criminal or civil investigations or other matters, which could harm our reputation and our business.

We will continue our efforts to comply with new and increasing privacy, data protection, and information security obligations; however, it is possible that such obligations may require us to expend additional resources, and may be difficult or impossible for us to meet. Any actual or alleged failure to comply with applicable U.S. or foreign privacy, data protection, or data security laws or regulations, any privacy or security standards imposed by our commercial partners, or any other actual or asserted obligations relating to privacy, data protection, or information security, may result in claims, regulatory investigations and proceedings, private litigation and proceedings, and other liability, all of which may adversely affect our reputation, business, results of operations and financial condition.

***Our actual or perceived failure to protect customer information or other personal information or confidential information could result in harm to our business.***

Our business and operations involve the storage, transmission and processing of information about our customers, our employees and contractors, our business partners, and others, as well as our own confidential information. We have been and

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

may again become the target of cyber-attacks by third parties seeking unauthorized access to any of these types of information or to disrupt our business or operations. Ransomware and other malware, business e-mail, compromises, fraudulent sales of frequent flier miles, and general hacking have become more prevalent in our industry. While we have taken steps to protect customer information and other confidential information to which we have access, there can be no assurance that any security measures that we or our third-party service providers have implemented will be effective against current or future security threats. We and our third-party service providers may be unable to anticipate attempted security breaches and to implement adequate preventative measures, and our security measures or those of our third-party service providers could be breached or otherwise compromised, we could suffer data loss, corruption, or unavailability, unauthorized access to or use of the systems or networks used in our business and operations, and unauthorized, accidental, or unlawful access to, or disclosure, modification, misuse, loss, unavailability, destruction, or other unauthorized processing of our or our customers' information. We may also experience security breaches or other incidents that may remain undetected for an extended period. Further, third parties may also conduct attacks designed to disrupt or deny access to the systems and networks used in our business and operations.

Actual or perceived security breaches or other security incidents could result in unauthorized use of or access to systems and networks, unauthorized, accidental, or unlawful access to, or disclosure, modification, misuse, loss, unavailability or destruction of, our or our customers' information, and may lead to litigation, claims, indemnity obligations, regulatory investigations and other proceedings, severe reputational damage adversely affecting customer or investor confidence and causing damage to our brand, indemnity obligations, disruption to our operations, damages for contract breach, and other liability, and may adversely affect our revenues and operating results. Additionally, our service providers may suffer security breaches or other incidents that may result in unauthorized access or otherwise compromise data stored or processed for us that may give rise to any of the foregoing.

Any such actual or perceived security breach or other incident may lead to the expenditure of significant financial and other resources in efforts to investigate or correct a breach or other incident, address and eliminate vulnerabilities, and to prevent future security breaches or incidents, as well as significant costs for remediation that may include liability for stolen assets or information and repair of system damage that may have been caused, incentives offered to customers or other business partners in an effort to maintain business relationships after a breach, costs in connection with payment card brand fines, and other liabilities. Certain breaches affecting payment card information or the environment in which such information is processed may also result in a loss of our ability to process payment cards or increased costs associated with doing so. We have incurred and expect to incur ongoing expenditures in an effort to prevent information security breaches and other security incidents.

We cannot be certain that our insurance coverage will be adequate for information security liabilities actually incurred or to cover any indemnification claims against us relating to any incident. Furthermore, we cannot be certain that insurance will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, could have a material adverse effect on our business, including our financial condition, operating results, and reputation.

***We are increasingly dependent on technology and automated systems to operate our business.***

We depend heavily on technology and automated systems to effectively operate our business. These systems include flight operations systems, communications systems, airport systems, reservations systems, management and accounting systems, commercial websites, including www.hawaiianairlines.com, and other IT systems, many of which must be able to accommodate high traffic volumes, maintain secure information and provide accurate flight information, as well as process critical financial transactions. Any substantial, extended, or repeated failures of these systems could negatively affect our customer service, compromise the security of customer information or other information stored on, transmitted by, or otherwise processed by these systems, result in the loss of or damage to important data, loss of revenue and increased costs, and generally harm our business. Additionally, loss of key talent required to maintain and advance these systems could have a material impact on our operations. Like other companies, our systems may be vulnerable to disruptions due to events beyond our control, including natural disasters, power disruptions, software or equipment failures, terrorist attacks, cybersecurity incursions, computer viruses and hackers. There can be no assurance that the measures we have taken to reduce the adverse effects of certain potential failures or disruptions are adequate to prevent or remedy disruptions of our systems or prevent or mitigate all attacks. In addition, we will need to continuously make significant investments in technology to periodically upgrade and replace existing systems. If we are unable to make these investments or fail to successfully implement, upgrade or replace our systems, including our transition to the Amadeus Altéa Passenger Service System in April 2023, our business could be adversely impacted. We do not carry business interruption insurance sufficient to compensate us for the potentially significant losses, including the potential harm to our business, results of operations and financial condition that may result from system interruptions or system failures.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

***We are highly reliant on third-party contractors to provide certain facilities and services for our operations, and termination of our third-party agreements could have a potentially adverse effect on our financial results.***

There are a limited number of qualified employees and personnel in the airline and information technology industry, especially within the Hawai'i market. Due to these limitations, we have historically relied on outside vendors for a variety of services and functions critical to our business, including aircraft maintenance and parts, code-sharing, reservations, computer services including hosting and software maintenance, accounting, frequent flyer programs, passenger processing, ground facilities, baggage and cargo handling, personnel training, and the distribution and sale of airline seats. Our reliance on outside vendors may continue to increase in the future.

The failure of any of our third-party service providers to adequately perform their service obligations, or other interruptions of services are likely to reduce our revenues, increase expenses, and/or prevent us from operating our flights and providing other services to our customers. Additionally, our business and financial performance would be materially harmed if our customers believe that our services are unreliable or unsatisfactory.

**LABOR RELATIONS AND RELATED COSTS RISKS**

***We are dependent on satisfactory labor relations.***

Labor costs are a significant component of airline expenses and can substantially impact an airline's results of operations. A significant portion of our workforce is represented by labor unions. We have entered into collective bargaining agreements with our pilots, mechanical group employees, clerical group employees, flight attendants, and dispatchers. We cannot ensure that future agreements with our employees' labor unions will be on terms in line with our expectations or comparable to agreements entered into by our competitors, and any future agreements may increase our labor costs or otherwise adversely affect our business. We may make strategic and operational decisions that may require the consent of one or more of these labor unions, and these labor unions could demand additional wages, benefits or other consideration in return for their consent.

In addition, on June 30, 2022, the U.S. Supreme Court denied review of the Ninth Circuit's ruling in *Bernstein v. Virgin America, Inc.*, which held that federal law did not preempt the California state meal-and-rest-break regulations for covered flight attendants. The *Bernstein* decision may make our compliance with labor law more complex because of uncertainty about the applicable standard when federal, state and local labor, and other laws, conflict. Application of state and local laws to our operations may conflict with federal laws, or with the laws of other states and local governments, and may subject us to additional requirements and restrictions, which might affect our relationship with our workforce and cause our expenses to increase. Application of conflicting laws may result in operational disruption or have negative effects on our collective bargaining agreements, and any failure or perceived failure by us to comply with federal, state or local labor laws may lead to litigation.

***Our operations may be adversely affected if we are unable to attract and retain qualified personnel and key executives.***

We believe that our future success is dependent on the knowledge and expertise of our key executives and highly qualified management, technical, and other personnel. Attracting and retaining such personnel in the airline industry is highly competitive. We cannot be certain that we will be able to retain our key executives or attract other qualified personnel in the future, including in light of the restrictions on executive compensation imposed on us under the PSP and subsequent extensions thereof. Any inability to retain our key executives, or other senior technical personnel, or attract and retain additional qualified executives, could have a negative impact on our operations.

In addition, as we rebuild our operations as passenger demand recovers, and expand our operations through the acquisition of new aircraft and introduction of service to new markets, it may be challenging to attract a sufficient number of qualified personnel including pilots, mechanics and other skilled labor. As we compete with other carriers for qualified personnel, we also face the challenge of attracting individuals who embrace our team-oriented, friendly and customer-driven corporate culture. Our inability to attract and retain qualified personnel who embrace our corporate culture could have a negative impact on our reputation and overall operations.

**STRATEGY AND BRAND RISKS**

***Our failure to successfully implement our route and network strategy could harm our business.***

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

Our route and network strategy (how we determine to deploy our fleet) includes initiatives to increase revenue, decrease costs, mature our network, and improve distribution of our sales channels. It is critical that we execute upon our planned strategy in order for our business to attain economies of scale and to sustain or improve our results of operations. If we are unable to utilize and fill increased capacity provided by additional aircraft entering our fleet, hire and retain skilled personnel, or secure the required equipment and facilities in a cost-effective manner, we may be unable to successfully develop and grow our new and existing markets, which may adversely affect our business and operations.

We continue to strive toward aggressive cost-containment goals which are an important part of our business strategy to offer the best value to passengers through competitive fares while maintaining acceptable profit margins and return on capital. We believe a lower cost structure will better position us to fund our strategy and take advantage of market opportunities. If we are unable to adequately contain our non-fuel unit costs, our financial results may suffer.

***Any damage to our reputation or brand image could adversely affect our business or financial results.***

Maintaining a good reputation globally is critical to our business. Our reputation or brand image could be adversely impacted by, among other things, any failure to maintain our safety record, our high ethical, social and environmental sustainability practices for all of our operations and activities, our impact on the environment, public pressure from investors or policy groups to change our policies, such as initiatives to address climate change, customer perceptions of our advertising campaigns, sponsorship arrangements or marketing programs, or customer perceptions of statements made by us, our employees and executives, agents or other third parties. Damage to our reputation or brand image or loss of customer confidence in our services could adversely affect our business and financial results, as well as require additional resources to rebuild our reputation.

We also increasingly use social media to communicate news and events. The inappropriate and/or unauthorized use of certain platforms or outlets could damage our brand image and reputation, and could lead to a loss of goodwill with our customers and stakeholders. Inappropriate or unauthorized use of social media could have legal implications if, for example, employees improperly collect or disseminate personally identifiable information of employees, customers or other stakeholders. Further, disclosure of our non-public information by our employees or others, whether intentional or unintentional, through social media could lead to information loss.

***Our reputation and financial results could be harmed in the event of adverse publicity, such as in the event of an aircraft accident or incident, or if we are unable to achieve certain sustainability goals.***

Our customer base is broad and our business activities have significant prominence, particularly in Hawai'i and other destinations we serve. Consequently, negative publicity, including on social media, resulting from real or perceived shortcomings in our customer service, employee relations, business conduct, third-party aircraft components or other events or circumstances affecting our operations could negatively affect the public image of our company and the willingness of customers to purchase services from us, which could affect our financial results.

Additionally, we are exposed to potential losses that may be incurred in the event of an aircraft accident or incident. Any such accident or incident involving our aircraft or an aircraft operated by one of our code-share partners could involve not only the repair or replacement of a damaged aircraft or aircraft parts, and its consequential temporary or permanent loss of revenue, but also significant claims of injured passengers and others. We are required by the DOT to carry liability insurance, and although we currently maintain liability insurance in amounts consistent with the industry, we cannot be assured that our insurance coverage will adequately cover us from all claims and we may be forced to bear substantial losses incurred with an accident. In addition, any aircraft accident or incident could cause a public perception that we are less safe or reliable than other airlines, which would harm our business.

The airline industry is also subject to increasing scrutiny for its greenhouse gas emissions and impact on the environment. We are investing and intend to continue to invest towards achieving our environmental goals. While we are working to achieve our environmental goals, our sustainability plans and our ability to execute those sustainability plans are subject to substantial risks and uncertainties, including ongoing support from governments and other third-parties, the need for significant capital investment, and research and development as well as commercialization of new technologies. There can be no guarantee that we can achieve any or all of our environmental goals, and our brand, reputation and financial results may be harmed as a result of our inability to achieve such goals.

***Our cargo business will be concentrated with Amazon, and any decrease in volumes or increase in costs, or a termination of our commercial agreement with Amazon, could have a significant impact on our business, operations, financial condition and brand.***

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

We expect that a significant portion of our cargo revenue will consist of air cargo transportation services provided to Amazon under the ATSA. The ATSA does not require a minimum amount of volume or revenue and Amazon is permitted to decrease volume at any time. Our cargo business would not achieve its expected financial benefits if Amazon's use of our cargo services does not reach forecasted levels for any reason, including due to general economic conditions or preferences of Amazon and its customers. Such a shortcoming could significantly impact our business and results of operations.

In addition, the profitability of the ATSA is dependent on our ability to manage and accurately predict costs. Our projections of operating costs, crew productivity and maintenance expenses contain assumptions, including as to flight hours, aircraft reliability, crewmember productivity, compensation and benefits expense, and maintenance costs. If actual costs are higher than projected or aircraft reliability is less than expected, or aircraft become damaged and are out of revenue service for repair, the profitability of the ATSA and future operating results may be negatively impacted. We also rely on flight crews that are unionized. If collective bargaining agreements increase our costs and we cannot recover such increases, our operating results would be negatively impacted.

Performance under the ATSA is subject to a number of challenges and uncertainties, such as: unforeseen maintenance and other costs; our ability to hire pilots and other personnel necessary to support our services; interruptions in the operations under the ATSA as a result of unexpected or unforeseen events, whether as a result of factors within our control or outside of our control; and the level of operations and results of operations, including margins, under the ATSA being less than our current expectations and projections. The ATSA also contains monthly incentive payments for reaching specific on-time arrival performance thresholds, as well as providing for monetary penalties for on-time arrival performance below certain thresholds. As a result, our operating revenues may vary from period to period depending on the achievement of monthly incentives or the imposition of penalties. Further, we could be found in default if we do not maintain certain minimum reliability thresholds over an extended period of time. If we are placed in default due to the failure to maintain reliability thresholds, Amazon may elect to terminate all or part of the services we provide and pursue rights and remedies available to it at law or in equity. The ATSA is also subject to two extension options, which Amazon may choose not to exercise. To the extent that our volume of flying for Amazon is less than we anticipate or costs associated with our cargo business are higher than we forecast, or if the ATSA is terminated for any reason, our business, results of operations and financial condition could be significantly and adversely affected.

***Our agreements with Amazon confer certain termination rights which, if exercised or triggered, may result in our inability to realize the full benefits of the agreements.***

Our agreements with Amazon give Amazon the option to terminate in certain circumstances and upon the occurrence of certain events of default, including a change of control of Hawaiian or our failure to meet certain performance requirements. In particular, Amazon will have the right to terminate the agreement without cause after March 31, 2027, upon providing us prior written notice of termination and paying an early termination fee.

Upon termination, Amazon will generally, subject to certain exceptions, retain the warrants that have vested prior to the time of termination and, depending on the circumstances giving rise to the termination, may have the right to accelerated vesting of the remaining warrants upon a change of control of our company. Upon termination, Amazon or we may also have the right to receive a termination fee from the other party depending on the circumstances giving rise to the right of termination.

An exercise by Amazon of any of these termination rights could have an adverse effect on our business, results of operations and financial condition.

**AIRLINE INDUSTRY, REGULATION AND RELATED COSTS RISKS**

***The airline industry has substantial operating leverage and is affected by many conditions that are beyond its control, which could harm our financial condition and results of operations.***

Due to the substantial fixed costs associated with operating an airline, there is a disproportionate relationship between the cost of operating each flight and the number of passengers carried. However, the revenue generated from a particular flight is directly related to the number of passengers carried and the respective average fares applied. Accordingly, a decrease in the number of passengers carried, and when applicable, the aggregate effect of decreasing flights scheduled, causes a corresponding decrease in revenue that is likely to result in a disproportionately greater decrease in profits. Therefore, the reduction in airline passenger traffic as a result of the COVID-19 pandemic and any future reductions as a result of the following or other factors, which are largely outside of our control, will likely harm our business, financial condition, and results of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• decline in general economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• threat of terrorist attacks and conflicts overseas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or threatened war and political instability;

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased security measures or breaches in security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse weather and natural disasters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in consumer preferences, perceptions, or spending patterns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased costs related to security and safety measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased fares as a result of increases in fuel costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• outbreaks of contagious diseases or fear of contagion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• congestion or major construction at airports and actual or potential disruptions in the air traffic control system.

Our results of operations are and may continue to be volatile due to the conditions identified above. We cannot ensure that our financial resources will be sufficient to absorb the effects of the COVID-19 pandemic or any unexpected events, including those identified above.

***Our operations may be disrupted if we are unable to obtain and maintain adequate facilities and infrastructure at airports within the state of Hawai*'*i.***

We must be able to maintain and/or obtain adequate gates, maintenance capacity, office space, operations areas, and ticketing facilities, especially at airports within the state of Hawai'i, to be able to operate our existing and proposed flight schedules. Failure to maintain such facilities and infrastructure may adversely impact our operations and financial performance.

***Our business is subject to substantial seasonal and cyclical volatility.***

Our results of operations reflect the impact of seasonal volatility primarily due to passenger leisure and holiday travel patterns. Because of fluctuations in our results from seasonality, operating results for a historical period are not necessarily indicative of operating results for a future period and operating results for an interim period are not necessarily indicative of operating results for an entire year. Moreover, due to the widespread impact of the COVID-19 pandemic on the demand for air travel generally and travel to and within Hawai'i specifically, we have seen significant declines in demand for air travel in 2020, 2021 and 2022 as compared to the years before the COVID-19 pandemic. As Hawai'i is a popular vacation destination, demand from North America, our largest source of visitors, is typically stronger during the months of June, July, August and December and considerably weaker at other times of the year. Because of fluctuations in our results from seasonality, operating results for a historical period are not necessarily indicative of operating results for a future period and operating results for an interim period are not necessarily indicative of operating results for an entire year.

Our cargo operations are also subject to seasonal volatility. Global trade flows are typically seasonal in nature, with peak activity during the retail holiday season. Demand for air cargo capacity is historically low following the seasonal holiday peak in the fourth quarter of the previous year. While we expect our revenues to fluctuate seasonally, a significant proportion of the costs associated with our cargo business, such as crew salaries and benefits, facilities and overhead costs, cannot easily be reduced to match the seasonal drop in demand.

Because of fluctuations in our results from seasonality, operating results for a historical period are not necessarily indicative of operating results for a future period and operating results for an interim period are not necessarily indicative of operating results for an entire year.

***Terrorist attacks or international hostilities, or the fear of terrorist attacks or hostilities, even if not made directly on the airline industry, could negatively affect us and the airline industry.***

Terrorist attacks, even if not made directly on the airline industry, or the fear of such attacks, hostilities or acts of war, could adversely affect the airline industry, including us, and could result in a significant decrease in demand for air travel, increased security costs, increased insurance costs covering war-related risks, and increased flight operational loss due to cancellations and delays. Any future terrorist attacks or the implementation of additional security-related fees could have a material adverse effect on our business, financial condition and results of operations, and on the airline industry in general.

***The airline industry is subject to extensive government regulation, new regulations, and taxes which could have an adverse effect on our financial condition and results of operations.***

Airlines are subject to extensive regulatory requirements that result in significant costs. New, and modifications to existing, laws, regulations, taxes and airport rates, and charges imposed by domestic and foreign governments have been proposed from

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

time to time that could significantly increase the cost of airline operations, restrict operations or reduce revenue. The Federal Aviation Administration (FAA) from time to time issues directives and other regulations relating to the maintenance and operation of aircraft that require significant expenditures. Some FAA requirements cover, among other things, retirement of older aircraft, security measures, aircraft landing safety measures, including with respect to the interaction of aircraft systems with new technologies such as 5G C-band service, collision avoidance systems, airborne windshear avoidance systems, noise abatement and other environmental concerns, commuter aircraft safety and increased inspections, and maintenance procedures to be conducted on older aircraft. A failure to be in compliance, or a modification, suspension or revocation of any of our DOT/FAA authorizations or certificates, would have a material adverse impact on our operations.

We cannot predict the impact that laws or regulations may have on our operations, nor can we ensure that laws or regulations enacted in the future will not adversely affect our business. Further, we cannot guarantee that we will be able to obtain or maintain necessary governmental approvals. Once obtained, operating permits are subject to modification and revocation by the issuing agencies. Compliance with these and any future regulatory requirements could require us to incur significant capital and operating expenditures.

In addition to extensive government regulations, the airline industry is dependent on certain services provided by government agencies (DOT, FAA, U.S. Customs and Border Protection (CBP) and the TSA). Furthermore, because of significantly higher security and other costs incurred by airports since September 11, 2001, many airports have significantly increased their rates and charges to airlines, including us, and may continue to do so in the future. In addition to passenger security requirements, the TSA has adopted comprehensive regulations governing air cargo transportation, covering things like cargo screening and security clearances for people with access to cargo. Additional measures have been proposed, which, if adopted, may have an adverse impact on our ability to efficiently process cargo and could increase our costs.

***We are subject to risks associated with climate change, including increased regulation of our CO2 emissions and the potential increased impacts of severe weather events on our operations and infrastructure.***

There is increasing global regulatory focus on climate change and emissions of greenhouse gases, including CO2. In particular, ICAO is in the process of adopting rules, including the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), of which the U.S. federal government has opted to participate in the voluntary phases from 2021-2026. As part of the CORSIA program, we are currently monitoring our international emissions for reporting purposes, and such data will be used in calculations to determine subsequent carbon offsetting requirements under the CORSIA program. At this time, we cannot predict the costs of complying with any future obligations under the CORSIA program. Regardless of the method of regulation or application of CORSIA, further policy changes with regard to climate change are possible, which could increase operating costs in the airline industry and, as a result, adversely affect our operations.

In the event that CORSIA does not come into force as expected, we and other airlines could become subject to an unpredictable and inconsistent array of national or regional emissions restrictions, creating a patchwork of complex regulatory requirements that may affect global competitors differently. Concerns over climate change may result in the adoption of municipal, state, regional, and federal requirements or in changing business environments that may result in increased costs to the airline industry and us. In addition, several countries and U.S. states have adopted or are considering adopting programs to regulate greenhouse gas emissions. On January 20, 2021, the United States rejoined the Paris Climate Accord and the current Presidential administration has made climate change mitigation an important policy priority. For example, on September 9, 2021, the current Presidential administration launched the Sustainable Aviation Fuel Grand Challenger to scale up the production of sustainable aviation fuel, aiming to reduce greenhouse gas emissions from aviation by 20% by 2030. Additionally, the EPA pressed for ambitious new aircraft greenhouse gas emission standards at international negotiations organized by ICAO in 2022. The current Presidential administration may adopt additional regulatory changes that could impact the airline industry and our business. Moreover, certain airports have adopted, and others could in the future adopt, greenhouse gas emission or climate-neutral goals that could impact our operations or require us to make changes or additional investments in our infrastructure.

All such climate change-related regulatory activity and developments may adversely affect our business and financial results by requiring us to reduce our emissions, make capital investments to modernize aspects of our operations, purchase carbon offset credits, or otherwise pay for our emissions. Such activity may also impact us indirectly by increasing our operating costs, including fuel costs. We may not be able to increase revenue in proportion with such additional costs.

We could incur significant costs to improve the climate resiliency of our infrastructure and otherwise prepare for, respond to, and mitigate such physical effects of climate change. We could also experience significant operational disruption and increased costs as a result of increases in the frequency, severity and duration of severe weather events caused by climate change. Such severe weather events may increase the incidence of delays and cancellations, increase turbulence-related injuries, impact fuel consumption to avoid weather, require repositioning of aircraft to avoid damage or accommodate changed flights, or reduce

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

demand for travel. We are not able to accurately predict the materiality of any potential losses or costs associated with the physical effects of climate change.

***Federal budget constraints may adversely affect our industry, business, results of operations and financial position.***

Many of our airline operations are regulated by governmental agencies, including the FAA, the DOT, the CBP, the TSA, and others. If the federal government were to experience issues in reaching budgetary consensus in the future resulting in mandatory furloughs and/or other budget constraints, our business and results of operations could be materially negatively impacted, including as a result of actual or potential disruption in the air traffic control system, actual or perceived delays at various airports, and delays in deliveries of new aircraft, which may materially adversely impact our industry, our business, results of operations and financial positions.

***The airline industry is required to comply with various environmental laws and regulations, which could inhibit our ability to operate and could also have an adverse effect on our results of operations.***

Many aspects of airlines' operations are subject to increasingly stringent federal, state, local, and foreign laws protecting the environment. U.S. federal laws that have a particular impact on us include the Airport Noise and Capacity Act of 1990, the Clean Air Act, the Resource Conservation and Recovery Act, the Clean Water Act, the Safe Drinking Water Act, the Comprehensive Environmental Response Act and the Compensation and Liability Act. Compliance with these and other environmental laws and regulations can require significant expenditures, and violations can lead to significant fines and penalties. Governments globally are increasingly focusing on the environmental impact caused by the consumption of fossil fuels and as a result have proposed or enacted legislation which may increase the cost of providing airline service or restrict its provision. We expect the focus on environmental matters to increase.

Concern about climate change and greenhouse gases may result in additional regulation of aircraft emissions in the U.S. and abroad. In addition, other legislative or regulatory action to regulate greenhouse gas emissions is possible. At this time, we cannot predict whether any such legislation or regulation would apportion costs between one or more jurisdictions in which we operate flights. We are monitoring and evaluating the potential impact of such legislative and regulatory developments. In addition to direct costs, such regulation may have a greater effect on the airline industry through increases in fuel costs. The impact to us and our industry from such actions is likely to be adverse and could be significant, particularly if regulators were to conclude that emissions from commercial aircraft cause significant harm to the atmosphere or have a greater impact on climate change than other industries.

***Our operations may be adversely affected by our expansion into non-U.S. jurisdictions and the related laws and regulations to which we are subject.***

The expansion of our operations into non-U.S. jurisdictions has expanded the scope of the laws and regulations to which we are subject, both domestically and internationally. Compliance with the laws and regulations of foreign jurisdictions and the restrictions on operations that these laws, regulations or other government actions may impose could significantly increase the cost of airline operations or reduce revenue. For example, various jurisdictions have imposed or are currently imposing restrictions that impede or restrict travel in response to the COVID-19 pandemic, and certain of our destinations in Asia have been revising their privacy and consumer laws and regulations. Limitations placed on our business as a result of these or other laws and regulations or failure to comply with evolving laws or regulations could result in significant penalties, criminal charges, costs to defend ourselves in a foreign jurisdiction, restrictions on operations and reputational damage. In addition, we operate flights on international routes regulated by treaties and related agreements between the U.S. and foreign governments, which are subject to change as they may be amended from time to time. Modifications of these arrangements could result in an inability to obtain or retain take-off or landing slots for our routes, route authorization and necessary facilities. Any limitations, additions or modifications to government treaties, agreements, regulations, laws or policies related to our International routes could have a material adverse impact on our financial position and results of operations.

***We may be party to litigation or regulatory action in the normal course of business or otherwise, which could have an adverse effect on our operations and financial results.***

From time to time, we are a party to or otherwise involved in legal or regulatory proceedings, claims, government inspections, investigations or other legal matters, both domestically and in foreign jurisdictions, including proceedings related to the COVID-19 pandemic. For example, due to cancelled or rescheduled flights in connection with the COVID-19 pandemic and other events, several U.S. airlines, including us, have been subject to class action complaints citing violation of state consumer statutes for allegedly failing or refusing to refund passenger tickets on cancelled flights. We believe we have meritorious defenses and intend to vigorously contest such claims. Resolving or defending legal matters, however, can take months or

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

years. The duration of such matters can be unpredictable with many variables that we do not control including adverse party or government responses. Litigation and regulatory proceedings are subject to significant uncertainty and may be expensive, time-consuming and disruptive to our operations. In addition, an adverse resolution of a lawsuit, regulatory matter, investigation or other proceeding could have a material adverse effect on our financial condition and results of operations. We may be required to change or restrict our operations or be subject to injunctive relief, significant compensatory damages, punitive damages, penalties, fines or disgorgement of profits, none of which may be covered by insurance. We may have to pay out settlements that also may not be covered by insurance. There can be no assurance that any of these payments or actions will not be material. In addition, publicity of ongoing legal and regulatory matters may adversely affect our reputation.

***Changes in tax laws or regulations could have a material adverse effect on our business, results of operations, and financial conditions.***

The rules dealing with U.S. federal, state and local income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service, the Treasury and state and local tax authorities. Changes in U.S. tax laws or their interpretations (which may have retroactive application) could materially increase the amount of taxes we owe, thereby negatively impacting our results of operations as well as our cash flows from operations. For example, the U.S. recently enacted the Inflation Reduction Act, which, among other changes, implements a 1% excise tax on certain stock buybacks and a 15% alternative minimum tax on adjusted financial statement income of certain companies. Furthermore, our implementation of new practices and processes designed to comply with changing tax laws and regulations could require us to make substantial changes to our business practices, allocate additional resources, and increase our costs, potentially adversely impacting our business, financial position and results of operations.

As we continue to grow internationally, we may also be subject to taxation in jurisdictions around the world with increasingly complex tax laws, the application of which may be uncertain. The amount of taxes we pay in these jurisdictions could increase substantially as a result of changes in the applicable tax principles, including increased tax rates, new tax laws or revised interpretations of existing tax laws and precedents, potentially adversely affecting our liquidity and results of operations. In addition, the authorities in these jurisdictions could review our tax returns and impose additional tax, interest and penalties, and the relevant authorities could claim that various withholding requirements apply to us or assert that benefits of tax treaties are not available to us or our subsidiaries, any of which could adversely impact us and our results of operations.

***Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.*** 

As of December 31, 2022, we had net operating loss carryforwards (NOLs) available to reduce future taxable income of approximately $236.0 million for federal income tax purposes that have indefinite carryover and approximately $708.0 million for state income tax purposes that will expire, if unused, beginning in 2024. The majority of our state NOLs relate to the state of Hawai'i, most of which have indefinite carryover, but are limited to 80% utilization.

Our ability to use our NOLs will depend on the amount of taxable income generated in future periods. If our financial results continue to be adversely impacted by the COVID-19 pandemic, there can be no assurance that an increase in the valuation allowance on our net deferred tax assets will not be required in the future. Such valuation allowance could be material. Additionally, due to the ongoing impacts of the COVID-19 pandemic and other economic factors, the NOLs may expire before we can generate sufficient taxable income to use them.

Under Section 382 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an "ownership change," the corporation's ability to use its pre-change NOLs to offset its post-change income may be limited. In general, an "ownership change" will occur if there is a cumulative change in our ownership by "5-percent shareholders" that exceeds 50 percentage points over a rolling three-year period. Similar rules may apply under state tax laws. Our ability to use NOLs to reduce future taxable income and liabilities may be subject to annual limitations as a result of prior ownership changes and ownership changes that may occur in the future.

***Our insurance costs are susceptible to significant increases, and further increases in insurance costs or reductions in coverage could have an adverse effect on our financial results.***

We carry types and amounts of insurance customary in the airline industry, including coverage for general liability, passenger liability, property damage, aircraft loss or damage, baggage and cargo liability, and workers' compensation. We are required by the DOT to carry liability insurance on each of our aircraft. We currently maintain commercial airline insurance with a major group of independent insurers that regularly participate in world aviation insurance markets, including public liability insurance and coverage for losses resulting from the physical destruction or damage to our aircraft. However, there can be no assurance that the amount of such coverage will not change or that we will not bear substantial losses from accidents or damage to, or loss

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

of, aircraft or other property due to other factors such as natural disasters. We could incur substantial claims resulting from an accident or damage to, or loss of, aircraft or other property due to other factors such as natural disasters in excess of related insurance coverage that could have a material adverse effect on our results of operations and financial condition. As a result of the COVID-19 pandemic, we have experienced, and may continue to experience, increases in our policy premiums as our policies become eligible for renewal.

***Extended interruptions or disruptions in service have and could continue to have a material adverse impact on our operations.***

Our financial results have been and may continue to be adversely affected by factors outside our control, including, but not limited to, flight cancellations, significant delays in operations, and facility disruptions, such as those caused by the COVID-19 pandemic. Our principal base of operations is in Hawai'i and a significant interruption or disruption in service has had and may continue to have a serious impact on our business and results of operations. In addition to international health crises, such as the COVID-19 pandemic, natural disasters, such as hurricanes, earthquakes and tsunamis, have in the past and may again impact the demand for transportation in the markets in which we operate.

**FLEET AND FLEET-RELATED RISKS**

***We are dependent on our limited number of suppliers for aircraft, aircraft engines and parts.***

We are dependent on a limited number of suppliers (e.g. Airbus, Boeing, Pratt & Whitney, Rolls Royce) for aircraft, aircraft engines, and aircraft-related items. We are vulnerable to malfunction, failure or other problems associated with the supply and performance of these aircraft and parts and/or related operational disruptions, such as those caused by the COVID-19 pandemic. Certain of our suppliers, including our supplier of engines for our A321neo aircraft, Pratt & Whitney, have experienced and continue to experience significant supply chain disruptions. We have experienced delays from such suppliers and may experience additional delays and part shortages in the future. These disruptions have and may continue to have a negative impact on our operations, including for example, aircraft out of service due to part unavailability. We do not yet know the full impact of operational disruptions caused by supply chain disruptions of our suppliers, in particular Pratt & Whitney. However, we anticipate continued delays for Pratt & Whitney engines on our A321neo aircraft during 2023. We believe that such disruptions could result in reputational harm, increased parts and maintenance costs, increased aircraft down time, and adverse effects on our financial position and results of operations.

***Our agreements to purchase Boeing 787-9 aircraft represent significant future financial commitments and operating costs.***

As of December 31, 2022, we had the following firm order commitments and purchase rights for additional aircraft:

---

| | | | |
|:---|:---|:---|:---|
| **<u>Aircraft Type</u>** | **Firm<br>Orders** | **Purchase<br>Rights** | **Expected Delivery Dates** |
| A321neo aircraft |  | 9 | N/A |
| B787-9 aircraft | 12 | 8 | Between 2023 and 2027 |

---

We have made substantial pre-delivery payments for aircraft under existing purchase agreements and are required to continue these pre-delivery payments as well as make payments for the balance of the purchase price through delivery of each aircraft. In December 2022, we entered into a supplemental agreement to our B787-9 purchase agreement with the Boeing Company, pursuant to which (a) we agreed with the Boeing Company to defer the delivery of our B787-9 aircraft, the first of which we now expect to receive in the fourth quarter of 2023, with the remaining deliveries scheduled through 2027, and (b) we agreed to exercise purchase options for an additional two B787-9 aircraft with scheduled delivery dates in 2027.

These commitments substantially increase our future capital spending requirements and may require us to increase our level of debt in future years. We are continuing to evaluate our options to finance these commitments. There can be no assurance that we will be able to obtain such financing on favorable terms, or at all.

***Delays in scheduled aircraft deliveries or other loss of fleet capacity may adversely impact our operations and financial results.***

The success of our business depends on, among other things, the ability to effectively operate a certain number and type of aircraft. As noted above, we are uncertain about the future of our contractual commitments to purchase additional aircraft for our fleet and have and may continue to experience supply chain delays that impact the availability of our aircraft. Our inability to purchase and introduce new aircraft into our fleet could negatively impact our business, operations and financial

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

performance. Even if we proceed with some or all of our contractual commitments to purchase additional aircraft, delays in scheduled aircraft, due to the COVID-19 pandemic or other circumstances, or our failure to integrate newly purchased aircraft into our fleet as planned may require us to utilize our existing fleet longer than expected. Such extensions may require us to operate existing aircraft beyond the point at which it is economically optimal to retire them, resulting in increased maintenance costs.

***We may never realize the full value of our long-lived assets such as aircraft and non-aircraft equipment, resulting in impairment and other related charges that may negatively impact our financial position and results of operations.***

Long-lived assets used in operations consist principally of property and equipment and had a carrying value of approximately $1.9 billion at December 31, 2022. Economic and intrinsic triggers, which include the ongoing impact of the COVID-19 pandemic, extreme fuel price volatility, an uncertain economic and credit environment, unfavorable trends in historical or forecasted results of operations and cash flows, as well as other uncertainties, may cause us to record material impairments of our long-lived assets. Additionally, we could be subject to impairment charges in the future that could have an adverse effect on our financial position and results of operations in future periods.

Long-lived assets are tested for impairment when events or changes in circumstances indicate, in management's judgment, that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amount. To determine whether impairment exists for aircraft used in operations, assets are grouped at the fleet-type level (the lowest level for which there are identifiable cash flows) and future cash flows are estimated based on projections of capacity, passenger mile yield, fuel costs, labor costs and other relevant factors. If, at any time, management determines the net carrying value of an asset is not recoverable, the amount is reduced to its fair value during the period in which such determination is made.

We continue to evaluate our current fleet and other long-lived assets for impairment accordingly. As of December 31, 2022, our remaining long-lived assets continued to generate future cash flows from operation of the fleet through the respective retirement dates in excess of their respective carrying values.

**COMMON STOCK RISKS**

***Our share price is subject to fluctuations.***

The market price of our stock is influenced by many factors, many of which are outside of our control, and include other factors discussed in the Risk Factors section, as well as the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our operating results and financial condition

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• how our operating results and financial condition compare to securities analyst expectations, particularly with respect to metrics for which we do not give guidance, including whether those results significantly fail to meet or exceed securities analyst expectations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the competitive environment in which we operate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fuel price volatility including the availability of fuel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements concerning our competitors including bankruptcy filings, mergers, restructurings or acquisitions by other airlines

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases or changes in government regulation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general and industry specific market conditions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in financial estimates or recommendations by securities analysts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of our common stock or other actions by investors with significant shareholdings

In recent years the stock market has experienced volatile price and volume fluctuations that often have been unrelated to the operating performance of individual companies. These market fluctuations, as well as general economic conditions, have affected and may continue to affect the price of our common stock.

In the past, securities class action litigation has often been instituted against a company following periods of volatility in its stock price. This type of litigation, if filed against us, could result in substantial costs and divert our management's attention and resources. In addition, the future sale of a substantial number of shares of common stock by us or by our existing stockholders may have an adverse impact on the market price of our common stock. There can be no assurance that the trading price of our common stock will remain at or near its current level.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

***We do not expect to repurchase our common stock pursuant to our share repurchase program or pay dividends on our common stock for the foreseeable future.***

Under the terms of our PSP3 Agreement, we were required to suspend payment of dividends and refrain from engaging in stock repurchases through September 30, 2022. We do not currently anticipate any future repurchases and we cannot provide any assurance that we will initiate any repurchase program again in the future. Additionally, although we have historically issued quarterly dividends, we cannot provide any assurance that we will declare dividends in the future, even though the PSP restrictions are no longer applicable, based on our operating results, financial condition, capital requirements, and general business conditions.

***Our future earnings and earnings per share, as reported under generally accepted accounting principles, will be impacted by the Amazon warrants.***

The warrants held by Amazon are subject to fair value measurements during periods that they are outstanding. Accordingly, future fluctuations in the fair value of the warrants are expected to adversely impact our reported earnings measures from time to time. See Note 14 of the Notes to Consolidated Financial Statements in the accompanying consolidated financial statements of this report for further information about the warrants issued to Amazon.

***If Amazon or the Treasury exercise their rights to acquire shares of our common stock pursuant to the outstanding warrants held by them, such exercise will dilute the ownership interests of our then-existing stockholders and could adversely affect the market price of our common stock.***

If Amazon or the Treasury exercise their rights to acquire shares of our common stock pursuant to their warrants, it will dilute the ownership interests of our then-existing stockholders and reduce our earnings per share. In addition, any sales in the public market of any common stock issuable upon the exercise of the warrants by Amazon or the Treasury, or the perception that such sales could occur, could adversely affect prevailing market prices of our common stock. Moreover, the warrants include anti-dilution adjustments for certain issuances of common stock or convertible securities by us. If such anti-dilution adjustments are made, Amazon would receive more shares for the exercise of its warrants than before the anti-dilution adjustment, increasing their dilutive impact.

***Our certificate of incorporation includes a provision limiting voting and ownership by non-U.S. citizens and our bylaws include a provision specifying an exclusive forum for stockholder disputes.***

To comply with restrictions imposed by federal law on foreign ownership of U.S. airlines, our certificate of incorporation restricts voting of shares of our common stock by non-U.S. citizens. Our certificate of incorporation provides that the failure of non-U.S. citizens to register their shares on a separate stock record, which we refer to as the "foreign stock record," would result in a suspension of their voting rights in the event that the aggregate foreign ownership of the outstanding common stock exceeds the foreign ownership restrictions imposed by federal law.

Our certificate of incorporation further provides that no shares of our common stock will be registered on the foreign stock record if the amount so registered would exceed the foreign ownership restrictions imposed by federal law. If it is determined that the amount registered in the foreign stock record exceeds the foreign ownership restrictions imposed by federal law, shares will be removed from the foreign stock record in reverse chronological order based on the date of registration therein, until the number of shares registered therein does not exceed the foreign ownership restrictions imposed by federal law. As of December 31, 2022, we believe we were in compliance with the foreign ownership rules.

Our bylaws provide that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware or, if such court lacks jurisdiction, any other state or federal court located in the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of us; (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our current or former directors, officers, stockholders or other employees to us or our stockholders; (iii) any action asserting a claim against us or any of our directors, officers, stockholders or other employees arising pursuant to any provision of the Delaware General Corporation Law or our certificate of incorporation or bylaws (as each may be amended or restated from time to time); or (iv) any action asserting a claim against us or any of our directors, officers or other employees governed by the internal affairs doctrine. Our amended and restated bylaws further provide that the federal district courts of the United States of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. Accordingly, stockholders may be limited in the forum in which they are able to pursue legal actions against us.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

***Certain provisions of our certificate of incorporation and bylaws, and our issuance of warrants to Amazon, may delay or prevent a change of control, which could materially adversely affect the price of our common stock.***

Our certificate of incorporation and bylaws contain provisions that may make it difficult to remove our Board of Directors and management, and may discourage or delay a change of control, which could materially and adversely affect the price of our common stock. These provisions include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our Board of Directors to issue, without further action by the stockholders, series of undesignated preferred stock, or rights to acquire preferred stock, that could dilute the interest of, or impair the voting power of, holders of our common stock or could also be used as a method of discouraging, delaying or preventing a change of control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advance notice procedures for stockholder proposals to be considered at stockholders' meetings and for nominations of candidates for election to our Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our Board of Directors to fill vacancies on the board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a prohibition against stockholders taking action by written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a prohibition against stockholders calling special meetings of stockholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• super-majority voting requirements to modify or amend specified provisions of our certificate of incorporation.

In addition, some terms of the agreements between us and Amazon may discourage attempts to acquire our company. Amazon is entitled to notice of certain transactions, including transactions that might result in a change of control of Hawaiian, ten days before we enter into a definitive agreement related to such transactions, subject to certain exceptions. Also, the vesting of the warrants issued by us to Amazon will generally, subject to certain exceptions, be accelerated upon a change of control of the Company.

***If Amazon exercises its right to acquire additional shares of our common stock pursuant to its warrants, Amazon may become a significant stockholder.***

The warrants issued by us to Amazon grant Amazon the right to purchase, in the aggregate, up to 15%, as of the date of the agreements, of our common stock on a post-issuance basis. If the warrants issued to Amazon, including pursuant to any anti-dilutive adjustments, are exercised, Amazon may become a significant stockholder of our company.

***If securities analysts do not publish research or reports about us, or if they issue unfavorable commentary about us or our industry or downgrade the outlook of our common stock, the market price of our common stock could decline.***

The trading market for our common stock will depend in part on the research and reports that third-party securities analysts publish about us and our industry. One or more analysts could downgrade the outlook for our common stock or issue other negative commentary about us or our industry. Furthermore, if one or more of these analysts cease coverage of us, we could lose visibility in the market. In addition, analysts and other market observers assessing our performance and prospects will take into account our existing and future amounts of debt, securities offerings, and any offers by us to repurchase our securities. As a result of one or more of these factors, the market price of our common stock could decline and cause you to lose all or a portion of your investment.

**SECURITIES OFFERINGS RISKS**

***In connection with the issuance of Hawaiian's enhanced equipment trust certificates, our indebtedness and liabilities could limit the cash flow available for our operations, and consequently expose us to risks that could materially adversely affect the resources available to us and Hawaiian to satisfy our obligations under such certificates.***

As of December 31, 2022, the outstanding principal balance of our enhanced equipment trust certificate (EETC) issuances was $184.6 million. Offerings of structured finance securities, such as the EETC issuances may present risks similar to those of the other types of debt obligations in which we or Hawaiian may invest and, in fact, such risks may be of greater significance in the case of such structured finance securities. In addition, the performance of the EETCs will be affected by a variety of factors, including its priority in the capital structure of the issuer thereof, and the availability of any credit enhancement, the level and timing of payments and recoveries on and the characteristics of the underlying receivables, loans or other assets that are being securitized, remoteness of those assets from the originator or transferor, the adequacy of and ability to realize upon any related collateral and the capability of the servicer of the securitized assets. If we or Hawaiian fail to comply with these covenants or to

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

make payments under such indebtedness when due, then we or Hawaiian would be in default under that indebtedness, which could, in turn, result in ours or Hawaiian's other indebtedness becoming immediately payable in full.

***In connection with the issuance of the senior secured notes due 2026, our indebtedness and liabilities could limit the cash flow available for Hawaiian's operations, and consequently expose us to risks that could materially adversely affect the resources available to us to satisfy our obligations under the Notes.*** 

In February 2021, we conducted a private offering of 5.75% senior secured notes due 2026 (the Notes) collateralized by certain loyalty and brand assets (Notes Offering). The indebtedness of Hawaiian and its subsidiaries increased significantly as a result of the Notes Offering. As of December 31, 2022, Hawaiian had approximately $1.6 billion of total indebtedness (excluding finance lease obligations of approximately $101.0 million and operating lease obligations of $425.6 million). We incurred approximately $1.2 billion principal amount of indebtedness as a result of the Notes Offering. We may also incur additional indebtedness to meet future financing needs. The indebtedness of Hawaiian and its subsidiaries could have significant negative consequences for our security holders and the resources available to satisfy our obligations under the Notes, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• greater difficulty satisfying our obligations with respect to the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing Hawaiian's vulnerability to adverse economic and industry conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting Hawaiian's ability to obtain additional financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requiring the dedication of a substantial portion of Hawaiian's cash flow from operations to service Hawaiian's indebtedness, which will reduce the amount of cash available for other purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting Hawaiian's flexibility to plan for, or react to, changes in its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• placing Hawaiian at a possible competitive disadvantage with competitors that are less leveraged than us or have better access to capital; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potentially causing Hawaiian's credit ratings to be reduced and causing our and Hawaiian's debt and equity securities to significantly decrease in value.

Hawaiian's business, including the HawaiianMiles Program, may not generate sufficient funds, and we and Hawaiian may otherwise be unable to maintain sufficient cash reserves, to pay amounts due under our and Hawaiian's indebtedness, including the Notes, and our and Hawaiian's cash needs may increase in the future. In addition, future indebtedness that we or Hawaiian may incur may contain financial and other restrictive covenants that limit our ability to operate our business, including with respect to the HawaiianMiles Program, raise capital or make payments under our or Hawaiian's indebtedness. If we or Hawaiian fail to comply with these covenants or to make payments under ours or Hawaiian's indebtedness when due, then we or Hawaiian would be in default under that indebtedness, which could, in turn, result in ours and Hawaiian's other indebtedness becoming immediately payable in full.

**RESTATEMENT OF OUR CONSOLIDATED FINANCIAL STATEMENTS RISKS**

***In the past, we have had to restate our previously issued consolidated financial statements and as part of that process identified a material weakness in our internal control over financial reporting as of March 31, 2022, June 30, 2022, and September 30, 2022. If we are unable to develop and maintain effective internal control over financial reporting, we may not be able to accurately report our financial results in a timely manner, which may adversely affect investor confidence in us and may adversely affect our business, financial condition and results of operations.***

On October 21, 2022, the Audit and Finance Committee of our Board of Directors concluded, after discussion with our management, that our consolidated unaudited financial statements as of and for the quarterly periods ended March 31, 2022 and June 30, 2022 (collectively, the Non-Reliance Periods) included in the Quarterly Reports on Form 10-Q filed with the SEC for the Non-Reliance Periods, (1) should no longer be relied upon due to an error in accounting for net unrealized losses from equity securities, as further described below, and (2) would require restatement. As a result of this restatement, our management re-evaluated the effectiveness of our disclosure controls and procedures and internal control over financial reporting as of March 31, 2022 and June 30, 2022 and evaluated the effectiveness of our disclosure controls and procedures and internal control over financial reporting as of September 30, 2022. Management concluded that our disclosure controls and procedures were not effective as of March 31, 2022, June 30, 2022 and September 30, 2022, and that our internal control over financial reporting was not effective as of March 31, 2022, June 30, 2022 and September 30, 2022 due to a material weakness. Specifically, there was a lack of effectively designed control activity over the accounting for unrealized gains and losses on equity securities.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented,

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

or detected on a timely basis. Effective internal control over financial reporting is necessary for us to provide reliable financial reporting and prevent fraud. We have concluded that we remediated the material weakness as of December 31, 2022.

Any failure to maintain effective internal control over financial reporting could adversely impact our ability to report our financial condition and results of operations on a timely and accurate basis. If our financial statements are not accurate, investors may not have a complete understanding of our operations. Likewise, if our financial statements are not filed on a timely basis, we could be subject to sanctions or investigations by the stock exchange on which our common stock is listed, the SEC or other regulatory authorities. In either case, there could be an adverse effect on our business, financial condition and results of operations. Ineffective internal control over financial reporting could also cause investors to lose confidence in our reported financial information which could have a negative effect on the trading price of our stock.

We can give no assurance that the measures we took and plan to take in the future will prevent the occurrence of additional material weaknesses or restatements of financial results in the future due to a failure to implement or maintain adequate internal control over financial reporting or circumvention of these controls. In addition, even if we are successful in strengthening our controls and procedures, in the future those controls and procedures may not be adequate to prevent or identify irregularities or errors or to facilitate the fair presentation of our consolidated financial statements.

***We may face litigation and other risks as a result of the restatement and material weakness in our internal control over financial reporting.***

As part of the restatement, we identified a material weakness in our internal control over financial reporting. As a result of such material weakness, the restatement, the change in accounting for unrealized gains and losses on equity securities, and other matters raised or that may in the future be raised by the SEC, we face potential for litigation or other disputes which may include, among others, claims invoking the federal and state securities laws, contractual claims or other claims arising from the restatement and the material weakness in our internal control over financial reporting and the preparation of our financial statements. As of the date of this Annual Report on Form 10-K, we have no knowledge of any such litigation or dispute. However, we can provide no assurance that such litigation or dispute will not arise in the future. Any such litigation or dispute, whether successful or not, could adversely affect our business, financial condition and results of operations.

**ITEM 1B.&nbsp;&nbsp;&nbsp;&nbsp;UNRESOLVED STAFF COMMENTS.**

None.

**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTIES.**

***Aircraft***

The table below summarizes our total fleet as of December 31, 2021 and 2022, and expected fleet as of December 31, 2023 (based on existing executed agreements as of December 31, 2022):

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2023 (Expected)** | **December 31, 2023 (Expected)** | **December 31, 2023 (Expected)** | **Seating Capacity (Per Aircraft)** | **Simple Average Age (In Years)** |
| **<u>Aircraft Type</u>** | **Leased (2)** | **Owned (3)** | **Total** | **Leased (2)** | **Owned (3)** | **Total** | **Leased (2)** | **Owned (3)** | **Total** | **Seating Capacity (Per Aircraft)** | **Simple Average Age (In Years)** |
| A330-200 | 12 | 12 | 24 | 12 | 12 | 24 | 12 | 12 | 24 | 278 | 9.5 |
| A321neo | 4 | 14 | 18 | 4 | 14 | 18 | 4 | 14 | 18 | 189 | 4.0 |
| 787-9 |  |  |  |  |  |  |  | 1 | 1 | 300 | N/A |
| 717-200 | 5 | 14 | 19 | 5 | 14 | 19 | 5 | 14 | 19 | 128 | 20.7 |
| ATR 42-500(1) |  | 3 | 3 |  | 2 | 2 |  |  |  | 48 | 18.6 |
| ATR 72-200(1) |  | 4 | 4 |  | 1 | 1 |  |  |  |  | 31.8 |
| Total | 21 | 47 | 68 | 21 | 43 | 64 | 21 | 41 | 62 |  |  |

---

(1)The ATR 42-500 turboprop and ATR 72-200 turboprop aircraft are owned by Airline Contract Maintenance & Equipment, Inc., a wholly-owned subsidiary of the Company. In the second quarter of 2021, we announced the termination of our 'Ohana by Hawaiian operations, which operated under a Capacity Purchase Agreement (CPA) with a third-party provider, and committed to a plan to dispose of the aircraft and related asset group. As of December 31, 2022, the asset group has been classified as assets held for sale on the Consolidated Balance Sheets. We expect to complete the sale of the remaining ATR 42-500 and ATR 72-200 in the first half of 2023.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

(2)Leased aircraft include aircraft under finance and operating leases. See Note 9 to the Notes to Consolidated Financial Statements for further discussion regarding our aircraft leases.

(3)Includes unencumbered aircraft as well as those purchased and under various debt financing.

At December 31, 2022, we had 12 aircraft on order scheduled for delivery through 2027:

---

| | |
|:---|:---|
| **<u>Delivery Year</u>** | **B787-9 Aircraft (1)** |
| 2023 | 1 |
| 2024 | 3 |
| 2025 | 2 |
| 2026 | 2 |
| 2027 | 4 |
|  | 12 |

---

(1)In July 2018, we entered into a purchase agreement for the purchase of 10 Boeing 787-9 "Dreamliner" aircraft with purchase rights for an additional 8 aircraft with scheduled deliveries between 2021 to 2025. In December 2022, we entered into a supplemental agreement to the purchase agreement, pursuant to which (a) we agreed with Boeing to defer delivery of the B787-9 aircraft, the first of which we now expect to receive in the fourth quarter of 2023 with the remaining deliveries scheduled through 2027, as reflected in the table above, and (b) agreed to exercise purchase options for an additional two B787-9 aircraft.

***Ground Facilities***

Our principal terminal facilities, cargo facilities and hangar and maintenance facilities are located at the Daniel K. Inouye International Airport (HNL). The majority of the facilities at HNL are leased on a month-to-month basis. We are also charged for the use of terminal facilities at other Neighbor Island airports owned by the state of Hawai'i. Some terminal facilities, including gates and holding rooms, are considered by the state of Hawai'i to be common areas and thus are not exclusively controlled by us. We also utilize other state of Hawai'i facilities, including station manager offices, Premier Club lounges, and operations support space.&nbsp;&nbsp;&nbsp;&nbsp;

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

The table below sets forth the airport locations to which we have access pursuant to various agreements as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **<u>Name of Airport</u>** | **<u>Location</u>** | **<u>Location</u>** | **<u>Location</u>** |
| Phoenix Sky Harbor International Airport | | Phoenix | Arizona |
| Long Beach Airport | | Long Beach | California |
| Los Angeles International Airport | | Los Angeles | California |
| Oakland International Airport | | Oakland | California |
| Ontario International Airport | | Ontario | California |
| Sacramento International Airport | | Sacramento | California |
| San Diego International Airport | | San Diego | California |
| San Francisco International Airport | | San Francisco | California |
| Norman Y. Mineta San Jose International Airport | | San Jose | California |
| Hilo International Airport | | Hilo | Hawai'i |
| Daniel K. Inouye International Airport | | Honolulu | Hawai'i |
| Kahului Airport | | Kahului | Hawai'i |
| Ellison Onizuka Kona International Airport | | Kailua-Kona | Hawai'i |
| Lihu'e Airport | | Lihu'e | Hawai'i |
| Boston Logan International Airport | | Boston | Massachusetts |
| Harry Reid International Airport | | Las Vegas | Nevada |
| John F. Kennedy International Airport | | New York | New York |
| Austin-Bergstrom International Airport | | Austin | Texas |
| Portland International Airport | | Portland | Oregon |
| Seattle-Tacoma International Airport | | SeaTac | Washington |
| Pago Pago International Airport | | Pago Pago | American Samoa |
| Sydney International Airport | | Sydney | Australia |
| Haneda International Airport | | Tokyo | Japan |
| Fukuoka International Airport | | Fukuoka | Japan |
| Kansai International Airport | | Osaka | Japan |
| Narita International Airport | | Tokyo | Japan |
| New Chitose International Airport | | Sapporo | Japan |
| Auckland Airport | | Auckland | New Zealand |
| Incheon International Airport | | Seoul | South Korea |
| Faa'a International Airport | | Papeete | Tahiti |

---

Our corporate headquarters are located in leased premises adjacent to the Daniel K. Inouye International Airport.

**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS.**

We are subject to legal proceedings arising in the normal course of our operations. We do not anticipate that the disposition of any currently pending proceeding will have a material effect on our operations, business or financial condition.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;MINE SAFETY DISCLOSURES.**

Not applicable.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**PART II**

**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.**

Our common stock is traded on the NASDAQ Global Select Market under the symbol "HA."

***Holders***

There were 670 stockholders of record of our common stock as of February 3, 2023, which does not reflect those shares held beneficially or those shares held in "street" name.

***Dividends and Other Restrictions***

Our receipt of financial assistance under the federal government's Payroll Support Programs precluded us from making any further dividend payments through September 30, 2022. We did not make any dividend payments during the twelve months ended December 31, 2022 and 2021. Prior to the suspension of dividend payments, we paid dividends of $5.5 million to shareholders of record during 2020.

U.S. law prohibits non-U.S. citizens from owning more than 25% of the voting interest of a U.S. air carrier or controlling a U.S. air carrier. Our certificate of incorporation prohibits the ownership or control of more than 25% (to be increased or decreased from time to time, as permitted under the laws of the U.S.) of our issued and outstanding voting capital stock by persons who are not "citizens of the U.S." As of December 31, 2022, we believe we are in compliance with the law as it relates to voting stock held by non-U.S. citizens.

***Purchases of Equity Securities by the Issuer and Affiliated Purchasers***

On March 18, 2020, as part of our response to the COVID-19 pandemic, we announced the suspension of our stock repurchase program. Pursuant to our receipt of financial assistance under the federal government's Payroll Support Programs, we were prevented from executing stock repurchases through September 30, 2022.

***Stockholder Return Performance Graph***

The following graph compares cumulative total stockholder return on our common stock, the S&P 500 Index and the NYSE ARCA Airline Index from December 31, 2017 to December 31, 2022. The comparison assumes $100 was invested on December 31, 2017 in our common stock and each of the foregoing indices and assumes reinvestment of dividends before consideration of income taxes.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

![ha-20221231_g1.jpg](ha-20221231_g1.jpg)

The stock performance depicted in the graph above is not to be relied upon as indicative of future performance. The stock performance graph shall not be deemed to be incorporated by reference into any of our filings under the Securities Act or the Exchange Act, except to the extent that we specifically incorporate the same by reference, nor shall it be deemed to be "soliciting material" or to be "filed" with the SEC or subject to Regulations 14A or 14C or to the liabilities of Section 18 of the Exchange Act.

**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;RESERVED.**

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

 **ITEM 7.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.**

***Overview***

The following Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand the Company and its operations and is focused on our 2022 and 2021 financial results, including comparisons of year-over-year performance between these years. Discussion and analysis of our 2020 fiscal year, as well as the year-over-year comparison of our 2021 financial performance to 2020, is located in Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on February 10, 2022.

This discussion and analysis of our financial condition and results of operations contains forward-looking statements that involve risks and uncertainties. We have based these forward-looking statements on our current expectations and projections of future events. However, our actual results could differ materially from those discussed herein as a result of the risks that we face, including but not limited to those risks stated in the "Risk Factors" section of this report. In addition, the following discussion should be read in conjunction with the audited consolidated financial statements and the related notes thereto included elsewhere in this report.

***Impact of the COVID-19 Pandemic***

The ongoing COVID-19 pandemic continues to impact passenger travel demand, with total passenger revenue down approximately 10.1% during the twelve months ended December 31, 2022, as compared to the same period in 2019. The recovery in our domestic network has been robust with passenger revenue up 7.9% during the twelve months ended December 31, 2022 as compared to the same period in 2019. International revenue continues to lag the recovery of our domestic markets due to ongoing restrictions on international travel, with revenue down 61.1% during the twelve months ended December 31, 2022, as compared to the same period in 2019. During the twelve months ended December 31, 2022, our domestic network accounted for approximately 89% of total passenger revenue as compared to 74% in 2019.

We continue to monitor developments on the easing of restrictions on international travel by international governments, including by the government of Japan, as Japan represented a large percentage of our pre-pandemic international revenue. In late September 2022, Japan announced that limits on the number of passenger arrivals would be lifted in October 2022. However, requirements remain in effect for travelers arriving in Japan to show proof of COVID-19 vaccination or a pre-travel negative PCR test result. In October 2022, the Republic of Korea announced that it was eliminating all remaining COVID-related restrictions for all arriving guests, effective immediately, with post-arrival tests and proof of vaccination no longer required.

***Government Support Programs***

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted on March 27, 2020 and provided an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the U.S. economy. The assistance included tax relief and government loans, grants and investments for entities in affected industries. The CARES Act provided, among other things: (a) financial relief to passenger air carriers for direct payroll support under the PSP, (b) financial relief in the form of loans and loan guarantees available for operations under the Economic Relief Program (ERP), (c) temporary suspension of certain aviation taxes, (d) temporary deferral of certain employer payroll taxes, and (e) additional corporate tax benefits.

The CARES Act also provided for deferred payment of the employer portion of social security taxes through the end of 2020, with 50% of the deferred amount due December 31, 2021 and the remaining 50% due December 31, 2022. Lastly, the CARES Act provided for the carryback of additional NOLs to 2016 and 2017, which will result in tax benefits for those years. Refer to Note 10 of the Notes to Consolidated Financial Statements for additional discussion.

*Economic Relief Program*

In September 2020, the Company entered into the Amended and Restated Loan Agreement under the ERP pursuant to which the maximum facility available to be borrowed increased to $622.0 million (the Amended and Restated Loan Agreement). In connection with our entry into the Amended and Restated Loan Agreement, we also entered into an ERP Warrant Agreement with the Treasury. On September 25, 2020, we borrowed $45.0 million and issued to the Treasury warrants to purchase up to 380,711 shares of our common stock. We recorded the value of the loan and the warrants on a relative fair value basis as $41.9 million in noncurrent debt and $3.1 million in additional paid in capital, respectively.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

On February 4, 2021, we repaid in full the $45.0 million loan under the ERP, and in connection with this repayment, terminated the Amended and Restated Loan Agreement. The debt extinguishment resulted in the recognition of a loss of $4.0 million, which is reflected in nonoperating income (expense) in the Consolidated Statement of Operations.

*Payroll Support Program*

On April 22, 2020, we entered into a Payroll Support Program agreement (the PSP Agreement) with the Treasury under the CARES Act. In connection with the PSP Agreement, we entered into a Warrant Agreement (the PSP Warrant Agreement) with the Treasury, and we issued a promissory note to the Treasury (the PSP Note). Pursuant to the PSP Agreement, the Treasury provided us with financial assistance, paid in installments, totaling approximately $300.9 million, to be used exclusively for the purpose of continuing to pay employee salaries, wages and benefits. Under the PSP Agreement, we agreed to (i) refrain from conducting involuntary furloughs or reducing employee rates of pay or benefits through September 30, 2020, (ii) limit executive compensation through March 24, 2022 and (iii) suspend payment of dividends and stock repurchases through September 30, 2021. The PSP Agreement also imposes certain Treasury-mandated reporting obligations on us. Finally, we were required to continue to provide air service to markets served prior to March 1, 2020 until March 1, 2022, to the extent determined reasonable and practicable by the DOT and subject to exemptions granted by the DOT to us given the absence of demand for certain of such services.

The PSP Note was in the total principal amount of approximately $60.3 million. The PSP Note has a 10-year term and bears interest at a rate per annum equal to 1.00% until the fifth anniversary of April 22, 2020 (the PSP Closing Date), and thereafter bears interest at a rate equal to the secured overnight financing rate plus 2.00% until the tenth anniversary of the PSP Closing Date, which interest is payable semi-annually beginning on September 30, 2020. The PSP Note may be prepaid at any time, without penalty, and is subject to customary change of control acceleration provisions and events of default.

As compensation to the U.S. government for providing financial relief under the PSP Agreement, and pursuant to the PSP Warrant Agreement, we issued to the Treasury a total of 509,964 warrants to purchase shares of our common stock at an exercise price of $11.82 per share (the PSP Warrants). The PSP Warrants are non-voting, freely transferable, may be settled as net shares or in cash at our option, expire five years from the date of issuance, and contain registration rights and customary anti-dilution provisions. Refer to Note 8 of the Notes to Consolidated Financial Statements for additional discussion.

The CAA 2021 was enacted on December 27, 2020, and provided $15.0 billion for airline employee wages, salaries and benefits under an extension (the PSP Extension) of the Payroll Support Program created under the CARES Act. In January 2021, we entered into a PSP extension agreement with the Treasury (the PSP Extension Agreement). PSP Extension funds are required to be used exclusively for the purpose of continuing to pay employee salaries, wages and benefits, including the payment of lost wages, salaries and benefits to certain returning employees, as defined in the PSP Extension Agreement. Under the PSP Extension Agreement, we agreed to (i) refrain from conducting involuntary furloughs or reducing employee rates of pay or benefits from December 1, 2020 through March 31, 2021, (ii) recall any employees who were subject to an involuntary termination or furlough between October 1, 2020 and the date of the PSP Extension Agreement and who elected to return to employment pursuant to a recall notice and to compensate these employees for lost salary, wages and benefits, (iii) limit executive compensation through October 1, 2022, and (iv) suspend payment of dividends and stock repurchases through March 31, 2022. Finally, we were required to continue to provide air service to markets served prior to March 1, 2020 until March 1, 2022, to the extent determined reasonable and practicable by the DOT.

During the twelve months ended December 31, 2021, we received $192.7 million in grants, entered into a promissory note with the Treasury (the PSP Extension Note) for approximately $27.8 million and issued to the Treasury warrants to purchase up to a total of 156,340 shares of our common stock at an exercise price of $17.78 per share (the PSP Extension Warrants) pursuant to the PSP Extension Agreement. The PSP Extension Note has a 10-year term and bears interest at a rate per annum equal to 1.00% for the first five years and at a rate equal to the secured overnight financing rate plus 2.00% for the following five years. We recorded the value of the PSP Extension Note and the PSP Extension Warrants on a relative fair value basis as $23.8 million in noncurrent debt and $4.0 million in additional paid in capital, respectively.

The ARP 2021 was enacted on March 11, 2021, and included a second PSP extension, providing an additional $14 billion in grants and loans for airline employee wages, salaries and benefits. In April 2021, we entered into a Payroll Support Program 3 Agreement with the Treasury (PSP3 Agreement), a promissory note (the PSP3 Note), and a Warrant Agreement to purchase up to 87,670 shares of the Company's common stock at an exercise of $27.27 (the PSP3 Warrants). The PSP3 Agreement extends (i) the prohibition on conducting involuntary employee layoffs or furloughs through September 2021 or the date on which assistance provided under the agreement is exhausted, whichever is later, (ii) the prohibitions on share repurchases and dividends through September 2022, and (iii) the limitations on executive compensation through April 1, 2023. The terms of the PSP3 Note and PSP3 Warrants are consistent with those of the original PSP and the first PSP Extension. During 2021, we

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

received a total of $179.7 million pursuant to the PSP3 Agreement, consisting of approximately $155.8 million in a grant and $23.9 million in a ten-year loan.

***Loyalty Program and Intellectual Property Financing***

In February 2021, we completed the private offering (the Notes Offering) by Hawaiian Brand Intellectual Property, Ltd., an indirect wholly owned subsidiary of Hawaiian (the Brand Issuer), and HawaiianMiles Loyalty, Ltd., an indirect wholly owned subsidiary of Hawaiian (the Loyalty Issuer and, together with the Brand Issuer, the Issuers) of an aggregate of $1.2 billion principal amount of their 5.750% senior secured notes due 2026 (the Notes). The Notes require interest only payments, payable quarterly in arrears on July 20, October 20, January 20 and April 20 of each year, which began on July 20, 2021.

In connection with the issuance of the Notes, Hawaiian contributed to the Brand Issuer, which is a newly-formed subsidiary structured to be bankruptcy remote, all worldwide rights, owned or purported to be owned, or later developed or acquired and owned or purported to be owned, by Hawaiian or any of its subsidiaries, in and to all intellectual property, including all trademarks, service marks, brand names, designs, and logos that include the word "Hawaiian" or any successor brand and the "hawaiianairlines.com" domain name and similar domain names or any successor domain names (the Brand IP). The Brand Issuer indirectly granted to Hawaiian an exclusive, worldwide, perpetual and royalty-bearing sublicense to use the Brand IP. Further, Hawaiian contributed to the Loyalty Issuer its rights to certain other collateral owned by Hawaiian, including, to the extent permitted by such agreements or otherwise by operation of law, any of Hawaiian's rights under the HawaiianMiles Agreements and the IP Agreements (each as defined in the indenture, dated as of February 4, 2021(the Indenture)), together with *HawaiianMiles* program (HawaiianMiles) customer data and certain other intellectual property owned or purported to be owned, or later developed or acquired and owned or purported to be owned, by Hawaiian or any of its subsidiaries (including the Issuers) and required or necessary to operate HawaiianMiles (the Loyalty Program IP) (all such collateral being, the Loyalty Program Collateral). The Loyalty Issuer indirectly granted Hawaiian an exclusive, worldwide, perpetual and royalty-free sub-license to use the Loyalty Program IP.

The Notes are redeemable at the option of the Issuers, in whole or in part, at any time and from time to time, after January 20, 2024 at the redemption prices set forth in the Indenture. In addition, the Notes are redeemable, at the option of the Issuers, at any time and from time to time, in whole or in part, prior to January 20, 2024 at a price equal to 100% of their principal amount plus the "make-whole" premium described in the Indenture and accrued and unpaid interest, if any, thereon to, but excluding, the redemption date. Additionally, from time to time on or prior to January 20, 2024, the Issuers may also redeem up to 40% of the original outstanding principal amount of the Notes with proceeds from any one or more equity offerings of Hawaiian at a redemption price equal to 105.75% of the principal amount of Notes to be redeemed, plus accrued and unpaid interest, if any, thereon to, but excluding, the redemption date. Upon the occurrence of certain mandatory prepayment events and mandatory repurchase offer events, the Issuers will be required to make a prepayment on the Notes, or offer to repurchase the Notes, pro rata, to the extent of any net cash proceeds received in connection with such events, at a price equal to 100% of the principal amount to be prepaid, plus, in some cases, an applicable premium. In addition, upon a change of control of Hawaiian, the Issuers may be required to make an offer to prepay the Notes at a price equal to 101% of the respective principal amounts thereof, plus accrued and unpaid interest, if any, thereon, to, but not including, the applicable redemption date.

The Indenture contains certain covenants that limit the ability of the Issuers, the Cayman Guarantors (as defined below) and, in certain circumstances, Hawaiian to, among other things: (i) make Restricted Payments (as defined in the Indenture), (ii) incur additional indebtedness, (iii) create certain liens on the Loyalty Program Collateral, (iv) sell or otherwise dispose of the Loyalty Program Collateral and (v) consolidate, merge, sell or otherwise dispose of all or substantially all of the Issuers' assets. The Indenture also requires the Issuers and, in certain circumstances, Hawaiian, to comply with certain affirmative covenants, including depositing the Transaction Revenues (as defined in the Indenture) in collection accounts, with amounts to be distributed for the payment of fees, principal and interest on the Notes pursuant to a payment waterfall described in the Indenture, and certain financial reporting requirements. In addition, the Indenture requires Hawaiian to maintain minimum liquidity at the end of any business day of at least $300.0 million.

***Amazon Agreement***

*Air Transportation Services Agreement*

On October 20, 2022, we and the Customer entered into the ATSA under which we will provide certain air cargo transportation services to the Customer for an initial term of eight years. Thereafter, the Customer may elect to extend the ATSA for two years and, at the end of such period, the parties may mutually agree to extend the term for three additional years. The ATSA provides for us to initially operate ten A330-300F aircraft for the air cargo transportation services, with the Customer having the right to enter into work orders for additional aircraft. We will supply flight crews, perform maintenance and certain administrative

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

functions, and procure aircraft insurance. The Customer will pay us a fixed monthly fee per aircraft, a per flight hour fee, and a per flight cycle fee for each flight cycle operated. The Customer will also reimburse us for certain operating expenses, including fuel, certain maintenance, and insurance premiums. Services under the ATSA are anticipated to begin in the fourth quarter of 2023.

As part of the ATSA, the Company received $11.5 million toward start-up costs which has been recorded in Other Liabilities in the Consolidated Balance Sheet. The deferred up-front payment will be amortized into revenue on a pro-rata basis over the term of the contract.

*Warrant and Transaction Agreement*

Contemporaneously with the ATSA, we and Amazon entered into a Transaction Agreement (the Transaction Agreement), under which, we agreed to issue to Amazon.com NV Investment Holdings LLC, a wholly owned subsidiary of Amazon, a warrant (the Warrant) to acquire up to 9,442,443 shares (the Warrant Shares), of our common stock. At execution, 1,258,992 Warrant Shares, valued at approximately $11.6 million, vested upon warrant issuance. Future vesting is based on payments to be made by Amazon or its affiliates either under the ATSA or generally with respect to air cargo or air charters, excluding commercial passenger service (Qualified Payments), up to $1.8 billion in the aggregate. Subject to certain conditions, including vesting, the Warrant may be exercised, in whole or in part and for cash or on a net exercise basis, at any time before October 20, 2031. The exercise price with respect to the first 6,294,962 Warrant Shares that vest will be $14.71 per share (the First Tranche). The exercise price with respect to the remaining 3,147,481 Warrant Shares will be determined based on the 30-day volume-weighted average price of our common stock as of the earlier of (i) October 20, 2025, or (ii) the date that the entire First Tranche is vested. The exercise prices and the Warrant Shares issuable are subject to customary antidilution adjustments.

***Selected Consolidated Statistical Data***

Below are the operating statistics we use to measure our operating performance.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
| | **(in thousands, except as otherwise indicated)** | **(in thousands, except as otherwise indicated)** | **(in thousands, except as otherwise indicated)** | **(in thousands, except as otherwise indicated)** | **(in thousands, except as otherwise indicated)** | **(in thousands, except as otherwise indicated)** |
| **Scheduled Operations (a) :** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue passengers flown | 9995 | 9995 | 6515 | 6515 | 3353 | 3353 |
| &nbsp;&nbsp;&nbsp;Revenue passenger miles (RPM) | 14932750 | 14932750 | 9979848 | 9979848 | 4558045 | 4558045 |
| &nbsp;&nbsp;&nbsp;Available seat miles (ASM) | 18636466 | 18636466 | 14411410 | 14411410 | 7527383 | 7527383 |
| &nbsp;&nbsp;&nbsp;Passenger revenue per RPM (Yield) | 15.64 | ¢ | 13.74 | ¢ | 14.59 | ¢ |
| &nbsp;&nbsp;&nbsp;Passenger load factor (RPM/ASM) | 80.1 | % | 69.2 | % | 60.6 | % |
| &nbsp;&nbsp;&nbsp;Passenger revenue per ASM (PRASM) | 12.53 | ¢ | 9.51 | ¢ | 8.83 | ¢ |
| **Total Operations (a) :** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue passengers flown | 10015 | 10015 | 6543 | 6543 | 3362 | 3362 |
| &nbsp;&nbsp;&nbsp;Revenue passenger miles (RPM) | 14964500 | 14964500 | 10054062 | 10054062 | 4576623 | 4576623 |
| &nbsp;&nbsp;&nbsp;Available seat miles (ASM) | 18684642 | 18684642 | 14535425 | 14535425 | 7560486 | 7560486 |
| &nbsp;&nbsp;&nbsp;Operating revenue per ASM (RASM) | 14.14 | ¢ | 10.98 | ¢ | 11.17 | ¢ |
| &nbsp;&nbsp;&nbsp;Operating cost per ASM (CASM) | 15.26 | ¢ | 11.55 | ¢ | 19.74 | ¢ |
| &nbsp;&nbsp;&nbsp;CASM excluding fuel and non-recurring items (b) | 10.78 | ¢ | 11.20 | ¢ | 18.35 | ¢ |
| &nbsp;&nbsp;&nbsp;Aircraft fuel expense per ASM (c) | 4.37 | ¢ | 2.50 | ¢ | 2.13 | ¢ |
| &nbsp;&nbsp;&nbsp;Revenue block hours operated | 195361 | 195361 | 157236 | 157236 | 82711 | 82711 |
| &nbsp;&nbsp;&nbsp;Gallons of jet fuel consumed | 239231 | 239231 | 179494 | 179494 | 106225 | 106225 |
| &nbsp;&nbsp;&nbsp;Average cost per gallon of jet fuel (actual) (c) | $3.42 |  | $2.02 |  | $1.52 |  |

---

(a)Includes the operations of our contract carrier under a CPA, which was terminated in the first half of 2021. Total Operations includes both scheduled and chartered operations.

(b)See "Non-GAAP Financial Measures" below for our reconciliation of CASM excluding fuel and non-recurring items, a non-GAAP financial measure, to its most directly comparable GAAP financial measure. We believe this is a useful measure because it better reflects our controllable costs.

(c)Includes applicable taxes and fees.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

***Operating Revenue***

Our revenue is derived primarily from transporting passengers on our aircraft. We record passenger revenue when the transportation is provided or when scheduled flights for tickets are expected to expire unused. We measure capacity in terms of available seat miles, which represent the number of seats available for passengers multiplied by the number of miles the seats are flown. Yield, or the average amount one passenger pays to fly one mile, is calculated by dividing passenger revenue by RPMs. Typically, we strive to increase passenger revenue primarily by increasing our yield per flight or by filling a higher proportion of available seats, which produces higher operating revenue per available seat mile. Other revenue primarily consists of cargo revenue, incidental services revenue, marketing component related to the sale of frequent flyer miles, and contract services.

Operating revenue was approximately $2.64 billion, $1.60 billion and $0.84 billion for the years ended December 31, 2022, 2021 and 2020, respectively. Operating revenue was severely impacted beginning in the first quarter of 2020 as a result of the unprecedented spread and ongoing impacts of the COVID-19 pandemic. Although restrictions have eased and passenger travel demand has improved, demand and capacity continue to remain below pre-pandemic levels.

***2022 vs. 2021***

*Passenger Revenue*

Passenger revenue increased by $964.5 million, or 70.4%, in the year ended December 31, 2022, as compared to the prior year. Details of this change are described in the table below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Increase (Decrease)<br>vs. Year Ended December 31, 2021** | **Increase (Decrease)<br>vs. Year Ended December 31, 2021** | **Increase (Decrease)<br>vs. Year Ended December 31, 2021** | **Increase (Decrease)<br>vs. Year Ended December 31, 2021** | **Increase (Decrease)<br>vs. Year Ended December 31, 2021** |
| |<br>**Year Ended December 31, 2022** | **Passenger<br>Revenue** | **Yield** | **RPMs** | **ASM** | **PRASM** |
| | **(in millions)** | **(in millions)** | | | | |
| Domestic | $2072.1 | $771.4 | 17.2% | 36.0% | 16.3% | 37.0% |
| International | 263.4 | 193.1 | (50.2) | 653.9 | 232.8 | 12.7 |
| &nbsp;&nbsp;&nbsp;Total scheduled | $2335.4 | $964.5 | 13.8% | 49.6% | 29.3% | 31.8% |

---

Domestic passenger revenue during the year ended December 31, 2022 increased by $771.4 million, or 59.3%, as compared to 2021, on capacity growth of 16.3%. Demand on our domestic network has exceeded pre-COVID-19 pandemic levels, with passenger revenue up 7.9% during 2022, as compared to the same period in 2019, primarily driven by the strength of our North America traffic. Our neighbor island traffic, which accounted for approximately 18.1% of total domestic revenue during 2022, continued to experience increased competitive pressures with additional capacity entering the neighbor island market, along with aggressively low-priced fares during the second half of 2022.

International passenger revenue increased $193.1 million, or 275.0%, during 2022 as compared to 2021, as a result of the recommencement of scheduled international passenger flights. Despite these improvements, our international network remains depressed in comparison to pre-COVID-19 pandemic levels, with revenue down 61.1% in 2022, as compared to the same period in 2019.

In April 2022, we announced the resumption of our three-times weekly nonstop service between Auckland, New Zealand and Honolulu, Hawai'i, starting in July 2022 as well as a seasonal increase in frequency between Seoul, South Korea and Honolulu, Hawai'i in the summer of 2022. In May 2022, we also announced plans to resume service between Honolulu, Hawai'i and Haneda International Airport in Tokyo, Japan, beginning in August 2022, and an increase in weekly flights between Honolulu, Hawai'i and Narita International Airport in Tokyo, Japan, and Kansai International Airport in Osaka, Japan, which began in August 2022. In November 2022, we announced weekly nonstop service between Rarotonga, the Cook Islands and Honolulu, Hawai'i, starting in May 2023.

In October 2022, Japan lifted the caps on passenger arrivals. However, requirements remain in effect for travelers arriving in Japan, to show proof of COVID-19 vaccinations or a pre-travel negative PCR test result. In October 2022, the Republic of Korea announced that it was eliminating all remaining COVID-related restrictions for all arriving guests, effective immediately, with post-arrival tests and proof of vaccination no longer required.

We expect international demand to continue to lag behind domestic demand until all government travel restrictions are eliminated. In addition, we expect the weakening of the Japanese Yen, which has increased the cost of travel for customers from Japan, to continue to negatively impact international demand until the Japanese Yen recovers.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

*Other Operating Revenue*

Other operating revenue increased by $80.1 million, or 35.5%, in the year ended December 31, 2022, as compared to the prior year, primarily driven by increases in our cargo and loyalty revenue.

Cargo revenue increased $35.4 million during 2022 as compared to the prior year, resulting from increased volumes and yield. Loyalty revenue, primarily comprised of brand and marketing performance obligations, increased $20.9 million during 2022, as compared to the prior year, as a result of increased credit card spend and new cardholder acquisitions. Other components in Other operating revenue include, but are not limited to, ground handling and contract services, other freight services, and miscellaneous revenue, collectively increased during 2022 by approximately $23.8 million as compared to the prior year, primarily attributed to increased volumes and contract service operations.

*Operating Expenses*

During the year ended December 31, 2022, total operating expense increased $1.2 billion or 69.8% to $2.9 billion as compared to 2021. Increases (decreases) in operating expenses are detailed below.

---

| | |
|:---|:---|
| | **Changes for the year ended December 31, 2022 as compared to year ended December 31, 2021** |
| | $**%** |
| ***Operating expenses:*** | |
| &nbsp;&nbsp;&nbsp;Aircraft fuel, including taxes and delivery | 125.1% |
| &nbsp;&nbsp;&nbsp;Wages and benefits | 19.3 |
| &nbsp;&nbsp;&nbsp;Aircraft rent | (5.1) |
| &nbsp;&nbsp;&nbsp;Maintenance materials and repairs | 38.9 |
| &nbsp;&nbsp;&nbsp;Aircraft and passenger servicing | 44.4 |
| &nbsp;&nbsp;&nbsp;Commissions and other selling | 57.0 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | (1.5) |
| &nbsp;&nbsp;&nbsp;Other rentals and landing fees | 26.0 |
| &nbsp;&nbsp;&nbsp;Purchased services | 25.3 |
| &nbsp;&nbsp;&nbsp;Special items | 109.3 |
| &nbsp;&nbsp;&nbsp;Government grant recognition | (100.0) |
| &nbsp;&nbsp;&nbsp;Other | 43.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 69.8% |

---

*Aircraft fuel*

The price and availability of aircraft fuel is volatile due to global economic and geopolitical factors that we can neither control nor accurately predict. The increase in aircraft fuel expense is illustrated in the following table:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | |
| | **2022** | **2021** |<br>**% Change** |
| | **(in thousands, except per-gallon amounts)** | **(in thousands, except per-gallon amounts)** | |
| Aircraft fuel expense, including taxes and delivery | $817077 | $363003 | 125.1% |
| Fuel gallons consumed | 239231 | 179494 | 33.3% |
| Average fuel price per gallon, including taxes and delivery | $3.42 | $2.02 | 69.3% |

---

We believe *economic fuel expense* is the best measure of the effect of fuel prices on our business as it most closely approximates the net cash outflow associated with the purchase of fuel for our operations and is consistent with how management manages our business and assesses our operating performance. We define *economic fuel expense* as GAAP fuel expense plus (gains)/losses realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled in the period inclusive of costs related to hedging premiums. As of December 31, 2022, we have hedged, through the purchase of fuel derivative instruments, approximately 21% of our projected fuel requirements for 2023.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

*Economic fuel expense* is calculated as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | |
| | **2022** | **2021** |<br>**% Change** |
| | **(in thousands, except per-gallon amounts)** | **(in thousands, except per-gallon amounts)** | |
| Aircraft fuel expense, including taxes and delivery | $817077 | $363003 | 125.1% |
| Realized losses on settlement of fuel derivative instruments | 401 | 165 | 143.0% |
| Economic fuel expense | $817478 | $363168 | 125.1% |
| Fuel gallons consumed | 239231 | 179494 | 33.3% |
| Economic fuel costs per gallon | $3.42 | $2.02 | 69.3% |

---

See Item 7A, *Quantitative and Qualitative Disclosures about Market Risk*, for additional discussion of our jet fuel costs and related derivative program.

*Wages and benefits*

Wages and benefits expense increased by $135.0 million, or 19.3%, in the year ended December 31, 2022, as compared to the prior period. The increase in wages and benefits expense is primarily attributed to increased operations as we continue our post-COVID-19 recovery, scheduled contractual wage increases and increased inflationary and hiring costs.

During 2022, we ratified new collective bargaining agreements (CBA) with several of our labor groups as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In February 2022, our International Association of Machinists and Aerospace Workers (IAM-M) and International Association of Machinists and Aerospace Workers - Clerical Division (IAM-C) employees ratified a new CBA, which included scheduled pay rate increases, a signing bonus valued at approximately $2.1 million, improved health benefits and cost sharing, as well as the establishment of Health Retirement Accounts (HRAs) for retirees. During the second quarter, we recorded approximately $2.6 million in one-time CBA related expenses associated with a voluntary separation program and establishment of the HRA plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In April 2022, flight dispatch personnel represented by the Transport Workers Union (TWU), ratified a new CBA. The terms of the new CBA were consistent with those of the IAM discussed above; however, the impact of the TWU CBA was not material to our financial statements.

On July 1, 2022, our CBA with employees represented by the Air Line Pilots Association (ALPA) became amendable.

In February 2023, the employees represented by ALPA voted to ratify a new four-year CBA, which takes effect March 2, 2023. The new CBA includes, amongst other things, a signing bonus, pay scale increases across all fleet types, improved health benefits and cost sharing, and enhancements to the postretirement and disability plans.

We expect that wages and benefits expense will increase in the first quarter of 2023 as compared to the same period in 2022 as a result of (a) our continued international recovery, and (b) increased labor costs as a result of our new CBAs combined with scheduled rate increases, as well as inflationary pressures and hiring costs.

*Maintenance materials and repairs*

Maintenance materials and repairs increased $66.1 million, or 38.9%, during the year ended December 31, 2022, as compared to the prior year. The increase is primarily attributed to increased utilization of our aircraft commensurate with our continued ramp up of operations during 2022, as discussed above, along with scheduled heavy maintenance events.

In December 2022, we entered into a Memorandum of Understanding (MOU) with one of our third-party service providers to terminate our Amended and Restated Complete Fleet Services (CFS) Agreement (Amended CFS) covering A330-200 aircraft early. The Amended CFS was originally scheduled to run through December 2027, and will now terminate in April 2023. Upon execution of the MOU, we agreed to pay a total of $12.5 million in termination fees, which was recognized at execution as a Special item in the Consolidated Statements of Operations as discussed below. As of December 31, 2022, we had approximately $24.1 million in deferred liabilities that will be recognized into earnings over the remaining contract term as contra-maintenance materials and repairs expense. Excluding the amortization of the deferred balance, we expect maintenance, materials and repairs expense to increase in the first quarter of 2023 as compared to the same period in 2022 as we continue to rebuild operational capacity, the timing of scheduled heavy maintenance events and inflationary pressures.

*Aircraft and passenger servicing*

Aircraft and passenger servicing expense increased by $46.9 million, or 44.4%, for the year ended December 31, 2022 as compared to the prior year. The increase is primarily due to increased capacity, as discussed above, and passengers flown,

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

which increased 53.1% in 2022, as compared to 2021. We expect aircraft and passenger servicing expense to increase in the first quarter of 2023, as compared to the same period in 2022 as a result of operations as we continue to rebuild our operations to pre-COVID-19 pandemic levels.

*Commissions and other selling expenses*

Commissions and other selling expenses increased by $41.3 million, or 57.0%, for the year ended December 31, 2022 as compared to the prior year. The increase in commissions and other selling expense was primarily related to the increase in operational capacity and passenger travel, as discussed above. We expect commissions and other selling expense to increase in the first quarter of 2023 as compared to the same period in 2022.

*Other rentals and landing fees*

Other rentals and landing fees increased by $30.4 million, or 26.0%, for the year ended December 31, 2022 as compared to the prior year. A significant portion of our other rentals and landing fees are variable in nature and are dependent on factors such as the number of departures and passengers, which were up in 2022 as we continued our post-COVID-19 recovery. We expect other rentals and landing fees expense to increase in the first quarter of 2023, as compared to the same period in 2022, as we rebuild operational capacity and passenger travel demand continues to improve, and due to inflationary pressures and increased infrastructure projects at various airports in which we operate, the costs of which are passed onto airlines.

*Purchased Services*

Purchased services expense increased by $26.1 million, or 25.3%, for the year ended December 31, 2022 as compared to the prior year. The increase in purchased services was primarily related to the increased operations during the year. We expect purchased services to increase in the first quarter of 2023 as compared to the same period in 2022 as we continue to rebuild our operations to pre-COVID-19 pandemic levels.

*Special items*

During the year ended December 31, 2022, we recorded $18.8 million in Special items as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the fourth quarter of 2022, we entered into a MOU with our third-party service provider to early terminate our Amended CFS, which was originally scheduled to run through December 2027, and will now terminate in April 2023. Upon execution of the MOU, the Company agreed to pay a total of $12.5 million in termination fees, which was recognized at execution as a Special item in the Consolidated Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the third quarter of 2022, we estimated the fair value of our remaining ATR-42 and ATR-72 aircraft, using available market information and taking into consideration recent transactions, which resulted in the recognition of a $6.3 million impairment charge.

During the year ended December 31, 2021, we announced the termination of our 'Ohana by Hawaiian operations, which operated under a CPA with a third-party carrier. We reclassified approximately $23.6 million to assets held for sale and recognized a one-time expense of $6.4 million to write-down the asset group to fair value. Additionally, we recorded a charge of approximately $2.6 million for the early termination of the CPA.

*Government grant recognition*

During the year ended December 31, 2021, we received $372.4 million in federal payroll support payments, of which $320.6 million was in the form of a grant. These funds were required to be used exclusively for the payment of employee wages, salaries and benefits. During the year ended December 31, 2021, we recognized $320.6 million as a contra-expense in the Consolidated Statements of Operations.

*Other expense*

Other expense increased by $49.5 million, or 43.6%, for the year ended December 31, 2022, as compared to the prior year. The increase was primarily attributed to our continued post-COVID-19 recovery, including personnel-related expenditures for crew travel, professional and technical expenditures, and other miscellaneous expense. We expect other expense to increase during the first quarter of 2023 as we continue to rebuild operational capacity to pre-COVID-19 pandemic levels.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

*Nonoperating expense, net*

Net nonoperating expense decreased by $19.0 million in the year ended December 31, 2022, as compared to the prior year. The decrease in expense was attributed to (a) increased generation of interest income commensurate with the expansion of our investment portfolio into higher risk, higher yielding investments, (b) reduction in interest expense as a result of debt reduction initiatives, and (c) the recognition of $8.6 million in loss on the extinguishment of debt in 2022 as compared to $38.9 million in loss recognized in 2021. Refer to Note 8 in the Notes to Financial Statements for additional discussion. These decreases were offset by the increases in realized and unrealized losses associated with our debt instruments denominated in Japanese Yen and realized and unrealized losses associated with our investment portfolio.

*Income Tax Expense*

Our effective tax rate was 18.3% for the year ended December 31, 2022, compared with 21.9% for the prior year. The effective tax rate for 2022 represented a blend of federal and state taxes and included the impact of the $17.8 million valuation allowance reserve recorded against capital losses and state deferred tax assets. Refer to Note 10 of the Notes to Consolidated Financial Statements for additional discussion.

**Liquidity and Capital Resources**

Cash, cash equivalents (excluding restricted cash) and short-term investments totaled approximately $1.4 billion as of December 31, 2022, compared to $1.7 billion as of December 31, 2021.

As of December 31, 2022, our current assets exceeded our current liabilities by approximately $558.0 million as compared to $902.9 million as of December 31, 2021. Approximately $590.8 million of our current liabilities relate to our advanced ticket sales and frequent flyer deferred revenue.

We cannot assure you that the assumptions used to estimate our liquidity requirements will be correct because we have never experienced such an unprecedented event impacting global travel and, as a consequence, our ability to predict the full impact of the COVID-19 pandemic is uncertain. In addition, the magnitude and duration of the COVID-19 pandemic remains uncertain. However, we expect to meet our liquidity needs for the next twelve months with cash and cash equivalents (excluding restricted cash), short-term investments and cash flows from operations. We expect to meet our long-term liquidity needs with cash flows from operations and financing arrangements.

***Cash Flow and Uses of Liquidity***

*Operating Activities*

Net cash used in operating activities was $57.8 million in the year ended December 31, 2022 compared to net cash provided by operating activities of $251.3 million in the prior year. Our operating cash flows are impacted by the following factors:

*Advanced Ticket Sales.* We sell tickets for air travel and record the receipt on advance sales as deferred revenue in air traffic liability. The air traffic liability typically increases during the winter and spring months as advanced ticket sales grow prior to the summer and fall peak travel seasons and decreases upon utilization during these seasons.

*Fuel.* During the years ended December 31, 2022 and 2021, fuel expense represented approximately 28.7% and 21.6%, respectively, of our total operating expense. As reflected in the increase in percentage, the market price for jet fuel is volatile, which can impact the comparability of our cash flows from operations. We expect fuel consumption to increase in the first quarter of 2023 as compared to the same period in 2022.

*Pension and Other Postretirement Benefit Plan Funding.* We sponsor a defined pension plan covering eligible pilots and retirees. This plan is closed to new entrants and frozen for future benefit accruals. Additionally, we sponsor four unfunded defined benefit postretirement medical and life insurance plans and a separate plan to administer the pilots' disability benefits. As of December 31, 2022, the excess of the projected benefit obligations over the fair value of plan assets was approximately $143.5 million. We contributed $4.0 million and $4.1 million to our disability plan in 2022 and 2021, respectively.

During the years ended December 31, 2022 and 2021, we were not required to, and did not make, contributions to our defined benefit pension plan. Future funding requirements for our defined benefit and other postretirement plans are dependent upon many factors such as interest rates, funded status, applicable regulatory requirements and the level and timing of asset returns. Given available funding credits in the defined benefit plan and funding status, we do not anticipate requiring any cash contributions to our defined benefit plan through at least 2024. For our pilot's disability plan, we anticipate annual contributions to the plan of approximately $4.5 million between 2023 and 2027.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

*Government Support Programs.* Operating cash flows for the year ended December 31, 2021 included $320.6 million in proceeds received as part of the federal government's Payroll Support Programs, all of which were utilized in 2021 to offset eligible payroll and payroll-related costs. As of December 31, 2021, all funds were utilized towards their stated purpose. Operating cash flows for the year ended December 31, 2022 did not include any proceeds received as part of the federal government's Payroll Support Programs.

*Operating Lease Obligations.* As described further in Note 9 of the Notes to the Consolidated Financial Statements, as of December 31, 2022 we had a total of $425.6 million of minimum operating lease obligations. These minimum lease payments range from approximately $40.8 million to $99.6 million on an annual basis over the next five years.

*Other Commitments.* We have certain purchase obligations under which we are required to make minimum payments for goods and services, including, but not limited to aircraft maintenance, IT, capacity purchases, and reservations. Total contractual obligations do not include long-term contracts where the commitment is variable in nature (with no minimum guarantee), such as aircraft maintenance deposits due under operating leases and fees due under certain other agreements such as aircraft maintenance power-by-the-hour, computer reservation systems and credit card processing agreements, or when the agreements contain short-term cancellation provisions. As of December 31, 2022, we had approximately $91.7 million of such obligations, which range from approximately $6.0 million to $26.7 million on an annual basis over the next five years.

*Investing Activities*

*Short-Term Investments.* During 2022, we acquired approximately $20.3 million (net of sales) in short-term investments. See Note 5 of the Notes to the Consolidated Financial Statements for further information on these investments.

*Capital Expenditures.* Our capital expenditures are primarily related to the purchase of aircraft, fleet modifications and technology enhancements. Our capital expenditures increased to $47.5 million in 2022 as compared to $39.3 million in 2021. We expect that we will have capital expenditures between approximately $330.0 million and $380.0 million in 2023, primarily for aircraft, including advance deposit payments for future aircraft deliveries and aircraft modifications, along with facility upgrades and technology enhancements. We expect that the capital expenditures in 2023 will be funded through available liquidity and cash flows from operations. We have committed to future aircraft purchases, with scheduled deliveries between 2023 and 2027 as reflected below.

As of December 31, 2022, we had the following capital commitments consisting of firm aircraft and engine orders and purchase rights:

---

| | | | |
|:---|:---|:---|:---|
| **<u>Aircraft Type</u>** | **Firm<br>Orders** | **Purchase<br>Rights** | **Expected Delivery Dates** |
| A321neo aircraft |  | 9 | N/A |
| B787-9 aircraft | 12 | 8 | Between 2023 and 2027 |
| General Electric GEnx spare engines: |  |  |  |
| &nbsp;&nbsp;&nbsp;B787-9 spare engines | 3 | 1 | Between 2023 and 2027 |

---

Committed expenditures for these aircraft, engines, and related flight equipment are approximately $291 million in 2023, $482 million in 2024, $493 million in 2025, $396 million in 2026, and $230 million in 2027.

In October 2020, we entered into an amendment to our Boeing 787-9 purchase agreement, which changed the scheduled delivery of each aircraft and related engines to between 2022 and 2026. In December 2021, we received notification of further delivery delays, and we have agreed to defer delivery of our first two aircraft from the scheduled delivery date at the end of 2022. In December 2022, we entered into a supplemental agreement to our purchase agreement, pursuant to which (a) we agreed with Boeing to defer delivery of the B787-9 aircraft, the first of which will now be delivered in the fourth quarter of 2023 with additional deliveries scheduled through 2027, and (b) agreed to exercise purchase options for an additional two B787-9 aircraft. Refer to Note 16 of the Notes to Consolidated Financial Statements for additional discussion.

In order to complete the purchase of these aircraft and fund related costs, we may need to secure acceptable financing. We have backstop financing available from aircraft and engine manufacturers, subject to certain customary conditions. Financing may be necessary to satisfy our capital commitments for firm order aircraft and other related capital expenditures. We can provide no assurance that any financing not already in place for aircraft and spare engine deliveries will be available to us on acceptable terms when necessary or at all.

*Financing Activities*

*Debt Obligations*.

As of December 31, 2022 our total debt was $1.6 billion, compared to $1.8 billion as of December 31, 2021.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

In February 2021, we completed the issuance of $1.2 billion in 5.75% senior secured notes, which are collateralized by our loyalty program and intellectual property. The Notes require quarterly interest payments and mature in January 2026. See above and Note 8 of the Notes to the Consolidated Financial Statements for more information on the offering.

During the years ended December 31, 2022 and 2021, we repaid approximately $184.3 million and $611.7 million in scheduled debt repayments and the extinguishment of future debt obligation as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In February 2021, we (a) paid in full the $45.0 million ERP loan issued pursuant to the CARES Act, and in connection with such repayment, terminated the Amended and Restated Loan Agreement. The warrants remain outstanding pursuant to the terms of the agreement, and (b) repaid the $235.0 million outstanding balance drawn on our revolving credit facility. The revolving credit facility matures in December 2022 and remains available to draw upon at a future date in the event the need arises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In October 2021, we repurchased approximately $160.9 million of our outstanding 7.375% Series 2020-1A Pass Through Certificates due 2027 and 11.250% Series 2020-1B Pass Through Certificates due 2025, and incurred a $34.9 million loss on extinguishment of debt, which is recorded in loss on extinguishment of debt in non-operating expense in the Consolidated Statements of Operations.

As described in Note 8 of the Notes to the Consolidated Financial Statements, as of December 31, 2022, scheduled maturities of our debt from 2023 through 2025 are approximately $49.1 million, $47.0 million, and $60.7 million annually, respectively. In 2026, our loyalty offering, discussed above, matures resulting in scheduled debt repayment of $1.3 billion. Scheduled repayments in 2027 are approximately $12.1 million. As of December 31, 2022, scheduled maturities after 2027 are equal to $152.1 million in the aggregate. In addition, we are obligated to make periodic interest payments at fixed and variable rates, depending on the terms of the applicable debt agreements. Based on applicable interest rates and scheduled debt maturities as of December 31, 2022, these interest obligations total $79.3 million in 2023, $78.5 million in 2024, $77.4 million in 2025, $22.7 million in 2026, $2.7 million in 2027, and $7.7 million thereafter.

*Finance Lease Obligations.* As described further in Note 9 of the Notes to the Consolidated Financial Statements as of December 31, 2022, we had a total of $101.0 million of minimum finance lease obligations. These minimum lease payments range from approximately $11.3 million to $29.5 million on an annual basis over the next five years.

*Issuance of Equity.* In December 2020, we entered into an Equity Distribution Agreement (the Equity Distribution Agreement) with Morgan Stanley & Co. LLC, BNP Paribas Securities Corp. and Goldman Sachs & Co. LLC (the Managers) relating to the issuance and sale of up to 5.0 million shares of our common stock, par value $0.01 per share. During the twelve months ended December 31, 2021, we sold 2.9 million shares pursuant to the Equity Distribution Agreement at an average price of $24.47 per share, with net proceeds totaling approximately $68.1 million. As of March 5, 2021, we sold all of the 5.0 million shares authorized under the Equity Distribution Agreement, at an average price of $22.46 per share, with net proceeds of approximately $109.3 million.

*Return to Shareholders.* On March 18, 2020, we indefinitely suspended all repurchases under our approved stock repurchase plan in connection with our receipt of financial assistance under the federal government's Payroll Support Programs, which restricted us from repurchasing shares and making dividend payments until September 30, 2022. We did not repurchase shares or declare dividends during the fourth quarter of 2022.

*Undrawn Lines of Credit.* As of December 31, 2022, we had approximately $235.0 million undrawn and available under our revolving credit facility which matures in December 2025. Refer to Note 8 of the Notes to the Consolidated Financial Statements for more information.

*Credit Card Holdbacks.* Under our bank-issued credit card processing agreements, proceeds from advance ticket sales may be held back to serve as collateral to cover any possible chargebacks or other disputed charges that may occur. As of December 31, 2022 and 2021, there were no holdbacks held with our credit card processors. In the event of a material adverse change in our business, the holdback could increase to an amount up to 100% of the applicable credit card activity for all unflown tickets, which would also result in an increase in the required level of restricted cash. If we are unable to obtain a waiver of, or otherwise mitigate the increase in the restriction of cash, it could have a material adverse impact on our operations.

*Covenants.* We are in compliance with covenants in our debt and lease agreements at December 31, 2022.

***Non-GAAP Financial Measures***

We believe the disclosure of non-GAAP financial measures is useful information to readers of our financial statements because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We believe it is the basis by which we are evaluated by industry analysts and investors;

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• These measures are often used in management and Board of Directors' decision making analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It improves a reader's ability to compare our results to those of other airlines; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It is consistent with how we present information in our quarterly earnings press releases.

See table below for reconciliation between GAAP net income to adjusted net income, including per share amounts (in thousands unless otherwise indicated). The adjustments are described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *CARES Act - carryback of additional NOLs*. During the year ended December 31, 2020, the effective tax rate included a tax benefit of $45.4 million resulting from the rate differential between the prevailing tax rate of 21% during the years that generated the NOLs and the previous tax rate of 35% that was in effect during the years to which NOLs were carried back as a result of the enactment of the CARES Act. This benefit is attributed to the enactment of the CARES Act and we believe that exclusion of this tax benefit provides investors comparability of results between periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *CBA related expense*. In January 2022, we reached a tentative agreement with our IAM-M and IAM-C employees. In February 2022, employees represented by the IAM-M and IAM-C ratified a new CBA, which included a one-time signing bonus of $2.1 million, which was recorded in Wages and benefits during the first quarter of 2022. During the second quarter of 2022, we and the IAM completed a separation program under the CBA and recognized a $2.6 million one-time expense, which was recorded in Wages and benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Government grant recognition*. During the year ended December 31, 2021, we recognized $320.6 million in contra-expense related to grant proceeds from the federal government's Payroll Support Programs as compared to $240.6 million recognized in 2020. The grant proceeds were recognized in proportion to estimated Wages and benefits expense over the period the grant covers. We utilized all proceeds under the federal government's Payroll Support Programs as of December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Gain on sale of aircraft*. During the second quarter of 2022, we sold three ATR-72 aircraft and recognized a $2.6 million gain on the transactions, which was recorded in Other operating expense in the Consolidated Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Changes in fair value of fuel derivative contracts*. Changes in fair value of derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period. This adjustment includes the unrealized gains and losses on fuel and interest rate derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts. Excluding the impact of these derivative adjustments allows investors to analyze our core operational performance and compare our results to other airlines in the periods presented below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Loss on extinguishment of debt*. Losses on the extinguishment of debt are excluded to allow investors to better analyze our core operational performance and more readily compare our results to other results in the periods presented below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Unrealized loss (gain) on foreign debt*. Change in unrealized losses (gains) on foreign debt are based on fluctuations in foreign exchanges rates related to foreign-denominated debt agreements to our functional currency. We believe that excluding the impact of these amounts helps investors analyze our operational performance and compare our results to other airlines in the periods presented below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Unrealized loss (gain) on non-designated foreign exchange positions*. Changes in fair value of foreign currency derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period. This adjustment includes the unrealized amounts of foreign currency derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts. We believe that excluding the impact of these derivative adjustments helps investors analyze our operational performance and compare our results to other airlines in the periods presented below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Unrealized loss on investment securities.* Unrealized loss on equity securities and gains on derivative instruments in our investment portfolio are driven by changes in market prices and currency fluctuations, which are recorded in Other nonoperating expense in the Consolidated Statements of Operations.

*Special Items*

During the year ended December 31, 2020, we recognized approximately $184.1 million of Special items expense, comprised of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the first quarter of 2020, we recognized $126.9 million of Special items in the Consolidated Statements of Operation, comprised of the following:

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ On April 3, 2020, we received notification from the AFA that the CBA was ratified by its members. The ratified CBA provided for, among other things, a ratification payment, payable over twelve months. We recorded a $23.5 million ratification bonus, of which $20.2 million related to service prior to January 1, 2020, and was recorded as a Special item.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ We recognized a goodwill impairment charge of $106.7 million. Refer to Note 1 of the Notes to Consolidated Financial Statements for additional discussion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the second quarter of 2020, we recognized a charge of $34.0 million associated with the impairment of certain of our long-lived assets. Refer to Note 1 of the Notes to Consolidated Financial Statements for additional discussion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the third quarter of 2020, we announced and completed voluntary separation programs across each of our labor groups providing for one-time severance payments, the establishment of health reimbursement accounts and other benefits. Additionally, we announced involuntary separation programs, the majority of which were effective October 1, 2020. We recorded $17.5 million in severance and benefits as an operating special item and $5.7 million related to special termination benefits and curtailment loss as a Nonoperating special item in the Consolidated Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the fourth quarter of 2020, we recorded long-lived asset impairment of approximately $5.4 million, comprised of an additional write-down of our ATR-42 and ATR-72 fleet of approximately $4.9 million as a result of ongoing market uncertainty attributed to the COVID-19 pandemic. We also wrote off approximately $0.5 million in capitalized software projects that were permanently suspended in response to the continuing impacts of the COVID-19 pandemic. Additionally, we recorded $0.3 million in additional costs for the finalization of the voluntary and involuntary separation programs discussed above.

During the year ended December 31, 2021, we recognized approximately $9.0 million of Special items expense, comprised of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the second quarter of 2021, we announced the termination of our 'Ohana by Hawaiian operations, which operated under a CPA with a third-party carrier. The asset group met the requirements for, and was reclassified as Held-for-Sale on the Consolidated Balance Sheets. We fair valued the asset group resulting in the write-down of approximately $6.4 million. Additionally, we recorded an early termination charge associated with the CPA of approximately $2.6 million.

During the year ended December 31, 2022, we recognized approximately $18.8 million of Special items expense, comprised of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the third quarter of 2022, we estimated the fair value of our remaining ATR-42 and ATR-72 aircraft, using available market information and taking into consideration recent transactions, which resulted in the recognition of a $6.3 million impairment charge as a Special Item in the Consolidated Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the fourth quarter of 2022, the Company entered into an MOU with its third-party service provider to early terminate its Amended CFS early. The Amended CFS was originally scheduled to run through December 2027, and will now terminate in April 2023. In connection with the MOU, the Company agreed to pay a total of $12.5 million in termination fees, which was recognized at execution as a Special item in the Consolidated Statements of Operations.

We believe that excluding such Special items helps investors analyze our operational performance and compare our results to other airlines in the periods presented below.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
| | **Total** | **Diluted Per Share** | **Total** | **Diluted Per Share** | **Total** | **Diluted Per Share** |
| | **(in thousands, except for per share data)** | **(in thousands, except for per share data)** | **(in thousands, except for per share data)** | **(in thousands, except for per share data)** | **(in thousands, except for per share data)** | **(in thousands, except for per share data)** |
| GAAP net loss, as reported | $(240081) | $(4.67) | $(144773) | $(2.85) | $(510935) | $(11.08) |
| &nbsp;&nbsp;Adjusted for: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CARES Act - carryback of additional NOLs |  |  |  |  | (45416) | (0.99) |
| &nbsp;&nbsp;&nbsp;&nbsp;CBA related expense | 4678 | 0.09 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special items | 18803 | 0.37 | 8983 | 0.18 | 184111 | 3.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;Government grant recognition |  |  | (320645) | (6.32) | (240648) | (5.22) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of aircraft | (2578) | (0.05) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fair value of fuel derivative contracts | 2640 | 0.05 | (382) | (0.01) | (2105) | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 8568 | 0.17 | 38889 | 0.77 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss (gain) on foreign debt | (26196) | (0.51) | (27593) | (0.54) | 14759 | 0.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss (gain) on non-designated foreign exchange positions |  |  | (1352) | (0.03) | 1327 | 0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on investment securities | 24949 | 0.49 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonoperating special items |  |  |  |  | 5682 | 0.12 |
| &nbsp;&nbsp;Tax effect of adjustments | (1242) | (0.02) | 63441 | 1.25 | 42252 | 0.92 |
| &nbsp;&nbsp;&nbsp;Adjusted net loss | $(210459) | $(4.08) | $(383432) | $(7.55) | $(550973) | $(11.96) |

---

*Operating Costs per Available Seat Mile (CASM)*

We have separately listed in the table below our fuel costs per ASM and non-GAAP unit costs, excluding fuel and Special items. These amounts are included in CASM, but for internal purposes we consistently use cost metrics that exclude fuel and Special items (if applicable) to measure and monitor its costs. CASM and CASM excluding fuel and non-recurring items are summarized in the table below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
| | **(in thousands, except for CASM figures)** | **(in thousands, except for CASM figures)** | **(in thousands, except for CASM figures)** | **(in thousands, except for CASM figures)** | **(in thousands, except for CASM figures)** | **(in thousands, except for CASM figures)** |
| **GAAP operating expenses** | $2851321 |  | $1679148 |  | $1492424 |  |
| Adjusted for: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Aircraft fuel, including taxes and delivery | (817077) |  | (363003) |  | (161363) |  |
| &nbsp;&nbsp;CBA related expense | (4678) |  |  |  |  |  |
| &nbsp;&nbsp;Special items | (18803) |  | (8983) |  | (184111) |  |
| &nbsp;&nbsp;Government grant recognition |  |  | 320645 |  | 240648 |  |
| &nbsp;&nbsp;Gain on sale of aircraft | 2578 |  |  |  |  |  |
| **Adjusted operating expenses** | $2013341 |  | $1627807 |  | $1387598 |  |
| Available Seat Miles | 18684642 |  | 14535425 |  | 7560486 |  |
| CASM—GAAP | 15.26 | ¢ | 11.55 | ¢ | 19.74 | ¢ |
| Adjusted for: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Aircraft fuel, including taxes and delivery | (4.37) |  | (2.50) |  | (2.13) |  |
| &nbsp;&nbsp;&nbsp;CBA related expense | (0.02) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Special items | (0.10) |  | (0.06) |  | (2.44) |  |
| &nbsp;&nbsp;&nbsp;Government grant recognition |  |  | 2.21 |  | 3.18 |  |
| &nbsp;&nbsp;&nbsp;Gain on sale of aircraft | 0.01 |  |  |  |  |  |
| **CASM excluding fuel and non-recurring items** | 10.78 | ¢ | 11.20 | ¢ | 18.35 | ¢ |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

***Critical Accounting Policies and Estimates***

The discussion and analysis of our financial condition and results of operations are based upon financial statements that have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates.

Critical accounting policies and estimates are defined as those accounting policies and accounting estimates that are reflective of significant judgments and uncertainties, and that potentially result in materially different results under different assumptions and conditions. Our most critical accounting policies and estimates are described below. See the summary of significant accounting policies included in Note 1 to the Notes to Consolidated Financial Statements for additional discussion of the application of these estimates and other accounting policies.

***Revenue Recognition***

*Passenger revenue.* We record direct passenger ticket sales and tickets sold by other airlines for use on Hawaiian as passenger revenue when the transportation is provided or when scheduled flights for tickets are expected to expire unused.

The value of unused passenger tickets is included in current liabilities as Air traffic liability. Prior to the second quarter of 2020, non-refundable tickets sold and credits issued generally expired 13 months from the date of issuance or flight, as applicable. In April 2020, we announced the waiver of certain change fees and extended ticket validity for up to 24 months for (a) tickets issued between March 1, 2020 and December 31, 2020 and (b) tickets issued prior to March 1, 2020 for original travel between March 1, 2020 and February 28, 2021. In December 2021, we announced the further extension of ticket validity to December 31, 2022, which also included all Main Cabin and First Class passenger tickets purchased in 2021. We record an estimate of breakage revenue on the scheduled flight date for tickets that will expire unused. These estimates are based on the evaluation of actual historical results, available market information, forecasted trends and the extension of the expiration date for certain tickets impacted by the COVID-19 pandemic. At December 31, 2022, $151.9 million of passenger tickets expired unused after the end of their extended validity dates. During the years ended December 31, 2022 and 2021, we recognized approximately $100.5 million and $51.4 million, respectively, in advanced ticket breakage related to these tickets.

Excluding tickets with extended validity dates, as discussed above, during the years ended December 31, 2022, 2021 and 2020, we recognized advanced breakage of $49.8 million, $48.3 million, and $12.8 million, respectively. Despite improvements in the industry and overall travel demand, the unflown rates continue to trend higher than historical metrics. The Company will continue to monitor customers' travel behavior and may adjust our estimates in the future.

The primary assumption utilized in our calculation of advanced ticket breakage involves an estimate of future breakage patterns, which is based on a combination of historical activity and expected customer behavior. A 10% change in this rate represents a change of approximately $5.0 million in advanced ticket breakage.

*Frequent flyer revenue. HawaiianMiles,* Hawaiian's frequent flyer travel award program, provides a variety of awards to program members based on accumulated mileage. ASC 606 requires us to account for miles earned by passengers in the *HawaiianMiles* program through flight activity as a component of the passenger revenue ticket transaction at the estimated selling price of the miles. Ticket consideration received is allocated between the performance obligations, primarily travel and miles earned by passengers. The allocated value of the miles is deferred until the free travel or other award is used by the passenger, at which time it is included in passenger revenue. The value of the ticket used in the determination of the estimated selling price is based on the historical value of equivalent flights to those provided for loyalty awards and the related miles redeemed to obtain that award adjusted for breakage or fulfillment. The equivalent ticket value (ETV) includes a fulfillment discount (breakage) to reflect the value of the award ticket over the number of miles that, based on historical experience, will be needed to obtain the award. On a quarterly basis, we calculate the ETV by analyzing the fares of similar tickets for the prior 12 months, considering cabin class and geographic region.

We also sell mileage credits to companies participating in our frequent flyer program. These contracts generally include multiple performance obligations, including the transportation that will ultimately be provided when the mileage credits are redeemed and marketing and brand related activities.

During the first quarter of 2018, we amended our partnership with Barclaycard US, Hawaiian's co-branded credit card partner. Management determined that the amendment should be accounted for as a termination of the existing contract and the creation of a new contract under ASC 606 and the relative selling price was determined for each performance obligation of the new agreement. The new agreement continues through 2024 and includes improved economics and enhanced product offerings for our Barclay's co-branded cardholders. The amended agreement did not change, and includes the following performance obligations; (i) transportation that will ultimately be provided when mileage credits are redeemed (transportation), (ii) the

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

Hawaiian Airlines brand and access to its members lists (collectively, brand performance), (iii) marketing, and (iv) airline benefits to cardholders, including discounts and anniversary travel benefits, baggage waivers and inflight purchase credits. We determined the relative fair value of each performance obligation by estimating the selling prices of the deliverables by considering discounted cash flows using multiple inputs and assumptions, including: (1) the expected number of miles to be awarded and redeemed; (2) the estimated weighted average equivalent ticket value, adjusted by a fulfillment discount; (3) the estimated total annual cardholder spend; (4) an estimated royalty rate for the Hawaiian portfolio; and (5) the expected use of each of the airline benefits. The overall consideration received is allocated to the performance obligations based on their relative selling prices.

The transportation performance obligation is deferred and recognized as passenger revenue when the transportation is provided. The value to the financial institution is provided each time a new cardholder chooses the Hawaiian branded credit card and each time a cardholder chooses to use the co-branded credit card. Therefore, we recognize revenue for the brand performance obligation as members use their co-brand credit card and the resulting mileage credits are issued to them, which best correlates with our performance toward satisfying the obligation.

Accounting for frequent flyer revenue involves the use of various techniques to estimate revenue. To determine the total estimated transaction price, we forecast future credit card activity based on historical data. The relative selling price is determined using management's estimated standalone selling price of each performance obligation. The objective of using the estimated selling price based methodology is to determine the price at which we would transact a sale if the product or service were sold on a standalone basis. Accordingly, we determine our best estimate of selling price by considering multiple inputs and methods including, but not limited to, discounted cash flows, brand value, number of miles awarded and number of miles redeemed. We estimate the selling price of miles using an ETV adjusted for a fulfillment discount as described above.

In April 2021, we announced the elimination of our HawaiianMiles expiration policy, effective April 1, 2021. Prior to this change in policy, miles expired after 18 months of member account inactivity. We review our breakage estimates annually based upon the latest available information regarding redemption and expiration patterns (e.g., credit card and non-credit card holders). Our estimate of the expected expiration of miles requires significant management judgment. Current and future changes to expiration assumptions or to the expiration policy, or to program rules and program could affect the estimated value of a mile. Due to the effects of the COVID-19 pandemic, including changes to our ticket validity and exchange policies, management continues to monitor customers' travel behavior and may adjust its estimates in the future as additional information becomes available. The change in expiration policy did not have a material impact on our accounting estimates and will continue to evaluate the impact of this change as additional information becomes available.

***Pension and Other Postretirement and Postemployment Benefits***

The calculation of pension and other postretirement and postemployment benefit expenses and its corresponding liabilities require the use of significant assumptions, including the assumed discount rate, the expected long-term rate of return on plan assets, expected mortality rates of the plan participants, and the expected health care cost trend rate. Changes in these assumptions will impact the expense and liability amounts, and future actual experience may differ from these assumptions.

The significant assumptions as of December 31, 2022 are as follows:

---

| | |
|:---|:---|
| ***Pension:*** | |
| &nbsp;&nbsp;&nbsp;Discount rate to determine projected benefit obligation | 5.58% |
| &nbsp;&nbsp;&nbsp;Expected return on plan assets | 6.06% |
| ***Postretirement:*** |  |
| &nbsp;&nbsp;&nbsp;Discount rate to determine projected benefit obligation | 5.57% |
| &nbsp;&nbsp;&nbsp;Expected return on plan assets | N/A |
| &nbsp;&nbsp;&nbsp;Expected health care cost trend rate: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initial | 6.75% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ultimate | 4.75% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Years to reach ultimate trend rate | 8 |
| ***Disability:*** |  |
| &nbsp;&nbsp;&nbsp;Discount rate to determine projected benefit obligation | 5.52% |
| &nbsp;&nbsp;&nbsp;Expected return on plan assets | 4.35% |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

N/A &nbsp;&nbsp;&nbsp;&nbsp; Not Applicable

^&nbsp;&nbsp;&nbsp;&nbsp;Expected return on plan assets used to determine the net periodic benefit expense for 2023 is 7.1% for the pension plans and 6.15% for the disability plan.

The expected long-term rate of return assumption is developed by evaluating input from the trustee managing the plans' assets, including the trustee's review of asset class return expectations by several consultants and economists, as well as long-term inflation assumptions. Our expected long-term rate of return on plan assets is based on a target allocation of assets, which is based on our goal of earning the highest rate of return while maintaining risk at acceptable levels. The Retirement Plan for Pilots of Hawaiian Airlines, Inc. and the Pilot's Voluntary Employee Beneficiary Association Disability and Survivor's Benefit Plan strive to have assets sufficiently diversified so that adverse or unexpected results from any one security class will not have an unduly detrimental impact on the entire portfolio. We believe that our long-term asset allocation on average will approximate the targeted allocation. We periodically review our actual asset allocation and rebalance the pension plan's investments to our targeted allocation when considered appropriate. Pension expense increases as the expected rate of return on plan assets decreases. Lowering the expected long-term rate of return by 100 basis points will have the following effects on our estimated 2023 pension and disability benefit expense recorded in wages and benefits and nonoperating expense:

---

| | |
|:---|:---|
| | **100 Basis Point Decrease** |
| | **(in millions)** |
| Increase in estimated 2023 pension expense | $2.7 |
| Increase in estimated 2023 disability benefit expense | 0.4 |

---

We determine the appropriate discount rate for each of our plans based on current rates on high quality corporate bonds that would generate the cash flow necessary to pay plan benefits when due. The pension and other postretirement benefit liabilities and future expense both increase as the discount rate is reduced. Lowering the discount rate by 100 basis points would have the following effects:

---

| | |
|:---|:---|
| | **100 Basis Point Decrease** |
| | **(in millions)** |
| Increase in pension obligation as of December 31, 2022 | $31.9 |
| Increase in other postretirement benefit obligation as of December 31, 2022 | 14.4 |
| Decrease in estimated 2023 pension expense (operating and nonoperating) | 0.2 |
| Increase in estimated 2023 other postretirement benefit expense (operating and nonoperating) | 1.5 |

---

The health care cost trend rate is based upon an evaluation of our historical trends and experience taking into account current and expected market conditions. Changes in the assumed current health care cost trend rate by year by 100 basis points would have the following annual effects:

---

| | |
|:---|:---|
| | **100 Basis Point Increase** |
| | **(in millions)** |
| Increase in other postretirement benefit obligation as of December 31, 2022 | $6.8 |
| Increase in estimated 2023 other postretirement benefit expense (operating and nonoperating) | 1.3 |

---

---

| | |
|:---|:---|
| | **100 Basis Point Decrease** |
| | **(in millions)** |
| Decrease in other postretirement benefit obligation as of December 31, 2022 | $6.0 |
| Increase in estimated 2023 other postretirement benefit expense (operating and nonoperating) | 1.1 |

---

***Long-Lived Assets***

Our long-lived assets used in operations, consisting principally of aircraft and other non-aircraft equipment, are classified as property and equipment, net on the Consolidated Balance Sheets, and have a carrying value of approximately $1.9 billion at December 31, 2022. We review long-lived assets used in operations for impairment when events or changes in circumstances indicate, in management's judgment, that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying value. To determine whether impairment exists for aircraft used in operations, assets are grouped at the fleet-type level (the lowest level for which there are identifiable cash flows) and future cash flows are estimated based on projections of capacity, passenger mile yield, fuel costs, labor costs and other relevant

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

factors. If, at any time, management determines the net carrying value of an asset is not recoverable, the amount is reduced to its fair value during the period in which such determination is made. Any changes in the estimated useful lives of these assets will be accounted for prospectively.

As a result of the COVID-19 pandemic, in 2020 we identified indicators of impairment of our long-lived assets. During the second quarter of 2020, it was determined that the net carrying values of our ATR-42 and ATR-72 fleets and assets held under our commercial real estate subsidiary were not recoverable through the generation of future undiscounted cash flows as of June 30, 2020. We estimated the fair value of our ATR-42 and ATR-72 fleets using a third-party valuation, which takes into consideration market pricing information, among other factors, and resulted in a $27.5 million impairment charge. We estimated the fair value of our commercial real-estate entity using a combination of a market and income-based approach, which estimates fair value based upon projections of future revenues, expenses, and cash flows discounted to its present value, which resulted in a $3.4 million impairment charge. The principal assumptions used in our discounted cash flow analysis consisted of (a) the long-term projections of future financial performance and (b) the weighted-average cost of capital of market participants, adjusted for the risk attributable to us and the industry in which we operate.

During the years ended December 31, 2022, 2021, and 2020, the Company recorded impairment of $6.3 million, $6.4 million, and $39.4 million, respectively as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the fourth quarter of 2020, we recorded long-lived asset impairment of approximately $5.4 million, comprised of an additional write-down of our ATR-42 and ATR-72 fleet of $4.9 million as a result of ongoing market uncertainty attributed to the COVID-19 pandemic. We also wrote off of approximately $0.5 million in capitalized software projects that were permanently suspended in response to the continuing impacts of the COVID-19 pandemic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the second quarter of 2021, we announced the termination of our 'Ohana by Hawaiian operations, which utilizes the ATR-42 and ATR-72 fleet, and was operated under a CPA with a third-party carrier. Following the termination of the operations, which were temporarily suspended in late 2020, management committed to a plan of sale and wrote-down the related assets by approximately $6.4 million to fair value, less cost to sell, and classified approximately $23.4 million as assets held for sale on the Consolidated Balance Sheets. Additionally, during the second quarter of 2021, management committed to a plan to sell certain commercial real-estate assets held by one of the Company's subsidiaries. Management fair valued the assets, less the cost to sell, which did not result in a write-down to the asset group, and as of December 31, 2021, reclassified approximately $6.1 million as assets held for sale on the Consolidated Balance Sheets. Management expects to complete the sale of the above referenced assets within the upcoming 12 months, and will continue to monitor the asset groups for potential impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the second quarter of 2022, the Company sold three ATR-72 aircraft and recognized a $2.6 million gain on the transactions, which was recorded in Other operating expense in the consolidated statements of operations. During the third quarter of 2022, the Company estimated the fair value of its remaining ATR-42 and ATR-73 aircraft, using available market information and in consideration of recent transactions, which resulted in the recognition of a $6.3 million impairment charge, which was recorded as a Special item in the consolidated statements of operations.

The Company estimated the fair value of its ATR-42 and ATR-72 fleets using a third-party valuation, available market information, and consideration of recent transactions and estimated the fair value of the assets held in its commercial real-estate subsidiary using a combination of a market and income-based approach, which estimates fair value based upon projections of future revenues, expenses, and cash flows discounted to its present value. The principal assumptions used in the Company's discounted cash flow analysis consisted of (a) the long-term projections of future financial performance and (b) the weighted-average cost of capital of market participants, adjusted for the risk attributable to the Company and the industry in which it operates.

**ITEM 7A.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

We are subject to market risk exposure related to commodity (fuel) prices, interest rates, and foreign currency exchange rates. The adverse effects of potential changes in these market risks are discussed below. In an effort to manage our exposure to these risks, we may enter into derivative contracts from time to time and may revise our derivative portfolio as market conditions change.

The sensitivity analyses presented do not consider the effects that such adverse changes may have on overall economic activity nor do they consider additional actions we might undertake to mitigate our exposure to such changes. Actual results may differ.

***Aircraft Fuel***

Aircraft fuel costs constitute a significant portion of our operating expense and changes in fuel prices could materially impact the results of operations. Fuel expense represented 29% of our operating expenses for the year ended December 31, 2022.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

Approximately 62% of our fuel was purchased based on Singapore jet fuel prices, 31% was purchased based on U.S. West Coast jet fuel prices, and 7% on other jet fuel prices. We periodically enter into derivative financial instruments to manage our exposure to changes in the price of jet fuel. As of December 31, 2022, we hedged approximately 21% of our projected fuel requirements for 2023. Based on gallons expected to be consumed in 2023, for every one cent increase in the cost of a gallon of jet fuel, our fuel expense would result in approximately $2.8 million in additional annual fuel expense.

***Interest Rates***

Our exposure to market risk associated with changes in interest rates is primarily associated with our debt obligations. At December 31, 2022, we had $1.6 billion of fixed-rate and no variable-rate debt. Market risk associated with our fixed rate long-term debt relates to the potential reduction in fair value from an increase in interest rates. An increase of 100 basis points in average annual interest rates would have decreased the estimated fair value of our fixed-rate long-term debt by $40.0 million at December 31, 2022.

***Foreign Currency***

We have exposure to market risk associated with changes in foreign currency exchange rates because we generate sales, incur expenses, and have debt denominated and paid in foreign currencies, predominantly in Japanese Yen and to a lesser extent, the Australian Dollar.

To manage exchange rate risk, we transact our international sales and expenditures in the same foreign currency, to the extent practical. Additionally, our Yen denominated debt serves as a natural hedge against the volatility of exchange rates against cash inflows. We also have an established foreign currency derivative program, where we periodically enter into foreign currency forward contracts. At December 31, 2022, the Company did not have any open derivative instruments designated for hedge accounting. We estimate that a 10% depreciation or appreciation in the U.S. dollar, relative to the Japanese Yen and Australian Dollar, would result in a change in annual pretax income of approximately $36.3 million.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.**

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| | **Page** |
| **Hawaiian Holdings, Inc.** | |
| <u>[Report of Independent Registered Public Accounting Firm](#i59f265a498f14e94937a15d1b876d549_52)</u> (PCAOB ID: 42) | <u>[58](#i59f265a498f14e94937a15d1b876d549_52)</u> |
| <u>[Consolidated Statements of Operations for the years ended December 31, 2022, 2021, and 2020](#i59f265a498f14e94937a15d1b876d549_55)</u> | <u>[60](#i59f265a498f14e94937a15d1b876d549_58)</u> |
| <u>[Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2022, 2021, and 2020](#i59f265a498f14e94937a15d1b876d549_61)</u> | <u>[61](#i59f265a498f14e94937a15d1b876d549_61)</u> |
| <u>[Consolidated Balance Sheets as of December 31, 2022 and 2021](#i59f265a498f14e94937a15d1b876d549_67)</u> | <u>[62](#i59f265a498f14e94937a15d1b876d549_67)</u> |
| <u>[Consolidated Statements of Shareholders' Equity for the years ended December 31, 2022, 2021, and 2020](#i59f265a498f14e94937a15d1b876d549_73)</u> | <u>[63](#i59f265a498f14e94937a15d1b876d549_73)</u> |
| <u>[Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021, and 2020](#i59f265a498f14e94937a15d1b876d549_79)</u> | <u>[64](#i59f265a498f14e94937a15d1b876d549_79)</u> |
| <u>[Notes to Consolidated Financial Statements](#i59f265a498f14e94937a15d1b876d549_82)</u> | <u>[65](#i59f265a498f14e94937a15d1b876d549_82)</u> |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of Hawaiian Holdings, Inc.

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheets of Hawaiian Holdings, Inc. (the Company) as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and financial statement schedules listed in the Index at Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 15, 2023 expressed an unqualified opinion thereon.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

---

| | |
|:---|:---|
| | ***Calculation and recognition of air traffic liability breakage*** |
| *Description of the Matter* | At December 31, 2022, the Company's Air traffic liability (excluding frequent flyer) was $424.6 million, for which tickets sold generally expire thirteen months from the date of issuance or the scheduled flight date, according to the Company's policy. As discussed in Notes 1 and 4 to the consolidated financial statements, the Company records an estimate of breakage revenue in proportion to the pattern of rights exercised by related passengers (e.g., scheduled departure dates) for tickets that will expire unused based on actual historical results and forecasted trends. <br>Auditing the estimate of breakage revenue was complex and highly judgmental due to significant judgments required in determining the breakage rate to be applied to tickets. The estimate is more complex due to the continually evolving travel market and recent changes to the Company's expiration policies.  |
| *How We Addressed the Matter in Our Audit* | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management's determination of the significant underlying assumptions and data inputs used in the model. <br>To test the estimated breakage rates, our audit procedures included, among others, evaluating the methodology, significant assumptions, and underlying data utilized by the Company. We evaluated the methodology and significant assumptions applied by management in their calculation of breakage for consistency with prior reporting periods and appropriateness based on the applicable accounting framework. We compared the forecasted usage data to recent actual results and evaluated the sensitivity of the breakage revenue caused by variations in the forecasted data. |

---

/s/ ERNST & YOUNG LLP<br>

We have served as the Company's auditor since 1999.

Honolulu, Hawai'i

February 15, 2023

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**Hawaiian Holdings, Inc.**

**Consolidated Statements of Operations**

**For the Years ended December 31, 2022, 2021 and 2020** 

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| | **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** |
| **Operating Revenue:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Passenger | $2335440 | $1370902 | $664799 |
| &nbsp;&nbsp;&nbsp;Other | 305827 | 225682 | 180014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 2641267 | 1596584 | 844813 |
| **Operating Expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Wages and benefits | 833137 | 698101 | 628558 |
| &nbsp;&nbsp;&nbsp;Aircraft fuel, including taxes and delivery | 817077 | 363003 | 161363 |
| &nbsp;&nbsp;&nbsp;Aircraft rent | 103846 | 109476 | 103890 |
| &nbsp;&nbsp;&nbsp;Maintenance materials and repairs | 236153 | 170048 | 121571 |
| &nbsp;&nbsp;&nbsp;Aircraft and passenger servicing | 152550 | 105675 | 58016 |
| &nbsp;&nbsp;&nbsp;Commissions and other selling | 113843 | 72512 | 46297 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 136169 | 138299 | 151665 |
| &nbsp;&nbsp;&nbsp;Other rentals and landing fees | 147143 | 116772 | 73808 |
| &nbsp;&nbsp;&nbsp;Purchased services | 129350 | 103213 | 99050 |
| &nbsp;&nbsp;&nbsp;Special items | 18803 | 8983 | 184111 |
| &nbsp;&nbsp;&nbsp;Government grant recognition |  | (320645) | (240648) |
| &nbsp;&nbsp;&nbsp;Other | 163250 | 113711 | 104743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 2851321 | 1679148 | 1492424 |
| **Operating Loss** | (210054) | (82564) | (647611) |
| **Nonoperating Income (Expense):** |  |  |  |
| &nbsp;&nbsp;&nbsp;Other nonoperating special items |  |  | (5682) |
| &nbsp;&nbsp;&nbsp;Interest expense and amortization of debt discounts and issuance costs | (95815) | (110431) | (40439) |
| &nbsp;&nbsp;&nbsp;Interest and dividend income | 32141 | 8603 | 8731 |
| &nbsp;&nbsp;&nbsp;Capitalized interest | 4244 | 3357 | 3236 |
| &nbsp;&nbsp;&nbsp;Other components of net periodic benefit cost, excluding settlements | 5065 | 3566 | 1300 |
| &nbsp;&nbsp;&nbsp;Gains (losses) on fuel derivatives | (3041) | 217 | (6930) |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | (8568) | (38889) |  |
| &nbsp;&nbsp;&nbsp;Gains (losses) on investments, net | (43082) | 1426 | 271 |
| &nbsp;&nbsp;&nbsp;Gains (losses) on foreign debt | 26667 | 27773 | (14913) |
| &nbsp;&nbsp;&nbsp;Other, net | (1406) | 1619 | 1985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | (83795) | (102759) | (52441) |
| **Loss Before Income Taxes** | (293849) | (185323) | (700052) |
| &nbsp;&nbsp;&nbsp;Income tax benefit | (53768) | (40550) | (189117) |
| **Net Loss** | $(240081) | $(144773) | $(510935) |
| **Net Loss Per Common Stock Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(4.67) | $(2.85) | $(11.08) |
| &nbsp;&nbsp;&nbsp;Diluted | $(4.67) | $(2.85) | $(11.08) |
| **Weighted Average Number of Common Stock Shares Outstanding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 51361 | 50769 | 46100 |
| &nbsp;&nbsp;&nbsp;Diluted | 51361 | 50769 | 46100 |
| **Cash Dividends Declared Per Common Share** | $— | $— | $0.12 |

---

See accompanying Notes to Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**Hawaiian Holdings, Inc.**

**Consolidated Statements of Comprehensive Income (Loss)**

**For the Years ended December 31, 2022, 2021 and 2020** 

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Net Loss** | $(240081) | $(144773) | $(510935) |
| **Other Comprehensive Income (Loss), net:** |  |  |  |
| &nbsp;&nbsp;Net change related to employee benefit plans, net of tax expense of $5,250 for 2022, net of tax expense of $13,107 for 2021, and net of tax benefit of $2,315 for 2020 | 15586 | 41156 | (8153) |
| &nbsp;&nbsp;Net change in derivative instruments, net of tax benefit of $1,098 for 2020 |  |  | (3341) |
| &nbsp;&nbsp;Net change in available-for-sale investments, net of tax benefit of $9,446 for 2022, net of tax benefit of $2,784 for 2021, and net of tax expense of $273 for 2020 | (28914) | (8467) | 850 |
| **Total Other Comprehensive Income (Loss)** | (13328) | 32689 | (10644) |
| **Total Comprehensive Loss** | $(253409) | $(112084) | $(521579) |

---

See accompanying Notes to Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**Hawaiian Holdings, Inc.**

**Consolidated Balance Sheets**

**December 31, 2022 and 2021**

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| | **(in thousands, except share data)** | **(in thousands, except share data)** |
| **ASSETS** |  |  |
| **Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $229122 | $490561 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 17498 | 17267 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 1147193 | 1241752 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 113862 | 92888 |
| &nbsp;&nbsp;&nbsp;Income taxes receivable | 70204 | 71201 |
| &nbsp;&nbsp;&nbsp;Spare parts and supplies, net | 36875 | 34109 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other | 63553 | 66127 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 1678307 | 2013905 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 1874352 | 1957623 |
| **Other Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Assets held for sale | 14019 | 29449 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 459128 | 536154 |
| &nbsp;&nbsp;&nbsp;Long-term prepayments and other | 100317 | 80489 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 13500 | 13500 |
| &nbsp;&nbsp;&nbsp;**Total Assets** | $4139623 | $4631120 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $196009 | $114400 |
| &nbsp;&nbsp;&nbsp;Air traffic liability and current frequent flyer deferred revenue | 590796 | 631157 |
| &nbsp;&nbsp;&nbsp;Other accrued liabilities | 182036 | 165050 |
| &nbsp;&nbsp;&nbsp;Current maturities of long-term debt, less discount | 47836 | 97096 |
| &nbsp;&nbsp;&nbsp;Current maturities of finance lease obligations | 25789 | 24149 |
| &nbsp;&nbsp;&nbsp;Current maturities of operating leases | 77858 | 79158 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 1120324 | 1111010 |
| **Long-Term Debt** | 1583889 | 1704298 |
| **Other Liabilities and Deferred Credits:** |  |  |
| &nbsp;&nbsp;&nbsp;Noncurrent finance lease obligations | 75221 | 100995 |
| &nbsp;&nbsp;&nbsp;Noncurrent operating leases | 347726 | 423293 |
| &nbsp;&nbsp;&nbsp;Accumulated pension and other postretirement benefit obligations | 135775 | 160817 |
| &nbsp;&nbsp;&nbsp;Other liabilities and deferred credits | 94654 | 78340 |
| &nbsp;&nbsp;&nbsp;Noncurrent frequent flyer deferred revenue | 318369 | 296484 |
| &nbsp;&nbsp;&nbsp;Deferred tax liability, net | 130400 | 186797 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 1102145 | 1246726 |
| **Commitments and Contingent Liabilities** |  |  |
| **Shareholders' Equity:** |  |  |
| &nbsp;&nbsp;Special preferred stock, $0.01 par value per share, three shares issued and outstanding at December 31, 2022 and 2021 |  |  |
| &nbsp;&nbsp;Common stock, $0.01 par value per share, 51,450,904 and 51,233,369 shares issued and outstanding as of December 31, 2022 and 2021, respectively | 514 | 512 |
| &nbsp;&nbsp;&nbsp;Capital in excess of par value | 287161 | 269575 |
| &nbsp;&nbsp;&nbsp;Accumulated income | 140756 | 380837 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (95166) | (81838) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 333265 | 569086 |
| &nbsp;&nbsp;&nbsp;**Total Liabilities and Shareholders' Equity** | $4139623 | $4631120 |

---

See accompanying Notes to Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**Hawaiian Holdings, Inc.**

**Consolidated Statements of Shareholders' Equity**

**For the Years ended December 31, 2022, 2021 and 2020**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common<br>Stock(\*)** | **Special<br>Preferred<br>Stock(\*\*)** | **Capital In Excess of Par Value** | **Accumulated Income** | **Accumulated Other Comprehensive Income (Loss)** | **Total** |
| | | | **(in thousands)** | **(in thousands)** | | |
| **Balance at December 31, 2019** | $461 | $— | $135651 | $1049567 | $(103883) | $1081796 |
| Net Loss |  |  |  | (510935) |  | (510935) |
| Dividends declared on common stock |  |  |  | (5514) |  | (5514) |
| Other comprehensive loss |  |  |  |  | (10644) | (10644) |
| Issuance of 143,354 shares of common stock, net of shares withheld for taxes | 1 |  | (1374) |  |  | (1373) |
| Repurchase and retirement of 259,910 shares common stock | (2) |  |  | (7508) |  | (7510) |
| CARES Act warrant issuance, net of tax |  |  | 7409 |  |  | 7409 |
| Share-based compensation expense |  |  | 4936 |  |  | 4936 |
| Issuance of 2,139,790 shares of common stock related to At-the-market offering | 21 |  | 41971 |  |  | 41992 |
| **Balance at December 31, 2020** | $481 | $— | $188593 | $525610 | $(114527) | $600157 |
| Net Loss |  |  |  | (144773) |  | (144773) |
| Other comprehensive income |  |  |  |  | 32689 | 32689 |
| Issuance of 228,066 shares of common stock, net of shares withheld for taxes | 2 |  | (2022) |  |  | (2020) |
| CARES Act warrant issuance, net of tax |  |  | 4419 |  |  | 4419 |
| Share-based compensation expense |  |  | 8645 |  |  | 8645 |
| Issuance of 2,860,210 shares of common stock related to At-the-market offering | 29 |  | 69940 |  |  | 69969 |
| **Balance at December 31, 2021** | $512 | $— | $269575 | $380837 | $(81838) | $569086 |
| Net Loss |  |  |  | (240081) |  | (240081) |
| Other comprehensive loss |  |  |  |  | (13328) | (13328) |
| Issuance of 217,535 shares of common stock, net of shares withheld for taxes | 2 |  | (1894) |  |  | (1892) |
| Amazon warrant issuance |  |  | 11571 |  |  | 11571 |
| Share-based compensation expense |  |  | 7909 |  |  | 7909 |
| **Balance at December 31, 2022** | $514 | $— | $287161 | $140756 | $(95166) | $333265 |

---

(\*)&nbsp;&nbsp;&nbsp;&nbsp;Common Stock—$0.01 par value; 118,000,000 authorized as of December 31, 2022 and 2021.

(\*\*)&nbsp;&nbsp;&nbsp;&nbsp;Special Preferred Stock—$0.01 par value; 2,000,000 shares authorized as of December 31, 2022 and 2021.

See accompanying Notes to Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**Hawaiian Holdings, Inc.**

**Consolidated Statements of Cash Flows**

**For the Years ended December 31, 2022, 2021 and 2020**

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Cash Flows From Operating Activities:** |  |  |  |
| Net Loss | $(240081) | $(144773) | $(510935) |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization of property and equipment | 136169 | 138299 | 151665 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes, net | (52202) | (41624) | (72188) |
| &nbsp;&nbsp;&nbsp;Goodwill impairment |  |  | 106662 |
| &nbsp;&nbsp;&nbsp;Impairment of assets | 6303 | 6383 | 38933 |
| &nbsp;&nbsp;&nbsp;Stock compensation | 7909 | 8645 | 4936 |
| &nbsp;&nbsp;&nbsp;Loss on contract termination | 12500 |  |  |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 8568 | 38889 |  |
| &nbsp;&nbsp;&nbsp;Amortization of debt discounts and issuance costs | 8881 | 9223 | 4012 |
| &nbsp;&nbsp;&nbsp;Employer contributions to pension and other postretirement plans | (11861) | (10232) | (7691) |
| &nbsp;&nbsp;&nbsp;Pension and postretirement benefit cost | 7846 | 8178 | 8398 |
| &nbsp;&nbsp;&nbsp;Special termination benefits and curtailment loss |  |  | 5682 |
| &nbsp;&nbsp;&nbsp;Change in unrealized (gain) loss on fuel derivative contracts | 2638 | (383) | (2106) |
| &nbsp;&nbsp;&nbsp;Change in unrealized loss on investments | 24949 |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency debt remeasurement (gain) loss | (26196) | (27593) | 14760 |
| &nbsp;&nbsp;&nbsp;Other, net | (835) | 7275 | (7007) |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (20974) | (25361) | 29853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | 997 | 23804 | (30810) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spare parts and supplies, net | (5824) | (1562) | (1066) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (29300) | (13140) | 24410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 92812 | 5785 | (49469) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Air traffic liability | (36886) | 146655 | (117279) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 16795 | 24366 | (18025) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Frequent flyer deferred revenue | 18410 | 46045 | 70318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities, net | 21630 | 52459 | 46239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (57752) | 251338 | (310708) |
| **Cash Flows From Investing Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Additions to property and equipment, including pre-delivery deposits | (47532) | (39264) | (105313) |
| &nbsp;&nbsp;&nbsp;Proceeds from purchase assignment and sale leaseback transactions |  |  | 114000 |
| &nbsp;&nbsp;&nbsp;Proceeds from disposition of equipment | 12182 | 755 |  |
| &nbsp;&nbsp;&nbsp;Purchases of investments | (859833) | (1856035) | (395793) |
| &nbsp;&nbsp;&nbsp;Sales of investments | 880161 | 958242 | 288336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (15022) | (936302) | (98770) |
| **Cash Flows From Financing Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the issuance of common stock |  | 68132 | 41196 |
| &nbsp;&nbsp;&nbsp;Long-term borrowings |  | 1251705 | 602264 |
| &nbsp;&nbsp;&nbsp;Repayments of long-term debt and finance lease obligations | (184306) | (611725) | (78824) |
| &nbsp;&nbsp;&nbsp;Dividend payments |  |  | (5514) |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock |  |  | (7510) |
| &nbsp;&nbsp;&nbsp;Debt issuance costs and discounts | (2236) | (24776) | (4975) |
| &nbsp;&nbsp;&nbsp;Other | (1892) | (183) | (576) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | (188434) | 683153 | 546061 |
| **Net increase (decrease) in cash and cash equivalents** | (261208) | (1811) | 136583 |
| **Cash, cash equivalents, and restricted cash—Beginning of Year** | 507828 | 509639 | 373056 |
| **Cash, cash equivalents, and restricted cash—End of Year** | $246620 | $507828 | $509639 |

---

See accompanying Notes to Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>,

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements**

**1. Summary of Significant Accounting Policies**

***Basis of Presentation***

Hawaiian Holdings, Inc. (Holdings) and its direct wholly-owned subsidiary, Hawaiian Airlines, Inc. (Hawaiian), are incorporated in the State of Delaware. Holdings' primary asset is its sole ownership of all issued and outstanding shares of common stock of Hawaiian. References to the "Company", "we," "us," "our" in these Notes to Consolidated Financial Statements include both Holdings and Hawaiian unless the context requires otherwise.

The consolidated financial statements include the accounts of Holdings and its wholly-owned subsidiaries, including its principal subsidiary, Hawaiian, through which the Company conducts substantially all of its operations. All significant inter-company balances and transactions have been eliminated upon consolidation.

The Company reclassified certain prior period amounts to conform to current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes.

***Use of Estimates***

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates.

***Significant Accounting Policies***

*Cash and Cash Equivalents and Short-Term Investments*

Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents. Investments with maturities greater than three months are classified as short-term investments and stated at fair value. Investments with maturities beyond one year when purchased may be classified as short-term investments if they are expected to be available to support our short-term liquidity needs. Realized gains and losses on sales of investments as well as unrealized gains and losses related to changes in the fair value of equity securities and investment derivative contracts are reflected in Gains (losses) on investments, net within nonoperating income (expense) on the Consolidated statements of operations. Unrealized gains and losses on debt securities are reflected as a component of accumulated other comprehensive income (loss).

The Company reviews debt securities quarterly for credit losses and impairment. If the cost of an investment exceeds its fair value, the Company will evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. This determination requires significant judgment. In making this judgment, the Company employs a systematic methodology that considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. In addition, the Company considers specific adverse conditions related to the financial health of, and business outlook for, the investee. If the Company has plans to sell the security or it is more likely than not that the Company will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in Other, net, within non-operating expense on the Consolidated Statements of Operations, and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments.

*Spare Parts and Supplies*

Spare parts and supplies are valued at average cost, and primarily consist of expendable parts for flight equipment and other supplies. An allowance for obsolescence of expendable parts is provided over the estimated useful lives of the related aircraft and engines for spare parts expected to be on hand at the date the aircraft are retired from service. These allowances are based on management's estimates and are subject to change.

*Property, Equipment and Depreciation*

Property and equipment are stated at cost and depreciated on a straight-line basis to their estimated residual values over the asset's estimated useful life. Depreciation begins when the asset is placed into service. Aircraft and related parts begin depreciating on the aircraft's first revenue flight.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The following table summarizes the Company's property and equipment:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| | **(in thousands)** | **(in thousands)** |
| Flight equipment | $2492722 | $2482686 |
| Pre-delivery deposits on flight equipment | 83034 | 83034 |
| Other property and equipment | 433858 | 391869 |
|  | 3009614 | 2957589 |
| Less accumulated depreciation and amortization | (1135262) | (999966) |
| Total property and equipment, net | $1874352 | $1957623 |

---

Estimated useful lives and residual values of property and equipment are as follows:

---

| | |
|:---|:---|
| Boeing 717-200 aircraft and engines | 15-16 years, 5 - 34% residual value |
| Airbus A330-200 aircraft and engines | 25 years, 10% residual value |
| Airbus A321neo aircraft and engines | 25 years, 10% residual value |
| Flight and ground equipment under finance lease | Shorter of lease term or useful life |
| Major rotable parts | Average lease term or useful life for related aircraft, 10% - 15% residual value |
| Improvements to leased flight equipment and the cargo maintenance hangar | Shorter of lease term or useful life |
| Facility leasehold improvements | Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life |
| Furniture, fixtures and other equipment | 3 - 7 years, no residual value |
| Capitalized software | 3 - 7 years, no residual value |

---

Additions and modifications that significantly enhance the operating performance and/or extend the useful lives of property and equipment are capitalized and depreciated over the lesser of the remaining useful life of the asset or the remaining lease term, as applicable. Expenditures that do not improve or extend asset lives are charged to expense as incurred. Pre-delivery deposits are capitalized when paid.

Aircraft under finance leases are recorded at an amount equal to the present value of minimum lease payments utilizing the Company's incremental borrowing rate at lease inception and amortized on a straight-line basis over the lesser of the remaining useful life of the aircraft or the lease term. The amortization is recorded in depreciation and amortization expense on the Consolidated Statement of Operations. Accumulated amortization of aircraft and other finance leases was $171.3 million and $147.8 million as of December 31, 2022 and 2021, respectively.

The Company capitalizes certain costs related to the acquisition and development of computer software and amortizes these costs using the straight-line method over the estimated useful life of the software. The net book value of computer software, which is included in Other property and equipment on the Consolidated Balance Sheets, was $31.6 million and $21.1 million at December 31, 2022 and 2021, respectively. The value of construction in progress, primarily consisting of aircraft and software-related projects in 2022 and 2021, which is included in property and equipment on the Consolidated Balance Sheets, was $55.5 million and $42.4 million as of December 31, 2022 and 2021, respectively. Amortization expense related to computer software was $12.3 million, $13.1 million and $15.7 million for the years ended December 31, 2022, 2021, and 2020 respectively.

*Aircraft Maintenance and Repair Costs*

Maintenance and repair costs for owned and leased flight equipment, including the overhaul of aircraft components, are charged to operating expenses as incurred. Engine overhaul costs covered by power-by-the-hour arrangements are paid and expensed as incurred or expensed on a straight-line basis and are based on the amount of hours flown per contract. Under the terms of these power-by-the-hour agreements, the Company pays a set dollar amount per engine hour flown on a monthly basis and the third-party vendor assumes the obligation to repair the engines at no additional cost, subject to certain specified exclusions. As of December 31, 2022 and 2021, the Company had approximately $0.0 million and $5.9 million, respectively, in prepayments to one of its power-by-the-hour vendors.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

Additionally, although the Company's aircraft lease agreements specifically provide that it is responsible for maintenance of the leased aircraft, the Company pays maintenance reserves to the aircraft lessors that are applied toward the cost of future maintenance events. These reserves are calculated based on a performance measure, such as flight hours, and are available for reimbursement to the Company upon the completion of the maintenance of the leased aircraft. However, reimbursements are limited to the available reserves associated with the specific maintenance activity for which the Company requests reimbursement.

Under certain aircraft lease agreements, the lessor is entitled to retain excess amounts on deposit at the expiration of the lease, if any; whereas at the expiration of certain other existing aircraft lease agreements any such excess amounts are returned to the Company, provided that it has fulfilled all of its obligations under the lease agreements. The maintenance reserves paid under the lease agreements do not transfer either the obligation to maintain the aircraft or the cost risk associated with the maintenance activities to the aircraft lessor. In addition, the Company maintains the right to select any third-party maintenance provider.

Maintenance reserve payments that are expected to be recovered from lessors are recorded as deposits in the Consolidated Balance Sheets as an asset until it is less than probable that any portion of the deposit is recoverable. In addition, payments of maintenance reserves that are not substantially and contractually related to the maintenance of the leased assets are accounted for as lease payments. In order to properly account for the costs that are related to the maintenance of the leased asset, the Company bifurcates its maintenance reserves between deposits and lease payments.

*Goodwill and Intangible Assets*

The Company has indefinite-lived intangible assets, including goodwill. Goodwill and indefinite-lived intangible assets are not amortized and the Company assesses the carrying value of goodwill and indefinite-lived intangible assets on an annual basis and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. The Company assesses the value of its goodwill and indefinite-lived intangible assets under either a qualitative or quantitative approach.

When the Company evaluates goodwill for impairment using a quantitative approach, it estimates the fair value of the reporting unit by considering the market capitalization. If the reporting unit's fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit's carrying value exceeds its fair value, the Company then determines the amount of the impairment charge, if any. The Company recognizes an impairment charge if the carrying value of the reporting unit's goodwill exceeds its estimated fair value.

During the first quarter of 2020, the adverse economic impact and declining passenger demand attributed to the COVID-19 pandemic drove the Company's stock price to 52-week lows and significantly reduced future cash flow projections. The Company qualitatively assessed that an impairment loss may have been incurred as of March 31, 2020 and performed an interim test of the recoverability of its goodwill and indefinite-lived intangible assets. The Company determined that the estimated fair value of the Company's one reporting unit was less than its carrying value and that the deficit between fair value and the carrying value of the reporting unit exceeded the amount of goodwill on the Company's Consolidated Balance Sheets, leading to the recognition of a goodwill impairment charge of $106.7 million in the first quarter of 2020. Fair value was determined using a combination of an income approach, which estimates fair value based upon projections of future revenues, expenses, and cash flows discounted to its present value, and a market approach. The valuation methodology and underlying financial information included in the Company's determination of fair value required significant judgments by management. The principal assumptions used in the Company's discounted cash flow analysis consisted of (a) the long-term projections of future financial performance and (b) the weighted-average cost of capital of market participants, adjusted for the risk attributable to the Company and the industry in which it operates. Under the market approach, the principal assumption included an estimate for a control premium.

As of December 31, 2022, the Company had approximately $13.5 million in indefinite-lived intangible assets subject to impairment. The Company assesses its indefinite-lived assets under a qualitative approach, analyzing market factors to determine if events and circumstances have affected the fair value of the indefinite-lived intangible assets.

*Impairment of Long-Lived Assets*

Long-lived assets used in operations, consist principally of property and equipment and have a carrying value of approximately $1.9 billion at December 31, 2022. Long-lived assets are tested for impairment when events or changes in circumstances indicate, in management's judgment, that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amount. To determine whether impairment exists for aircraft used in

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

operations, assets are grouped at the fleet-type level (the lowest level for which there are identifiable cash flows) and future cash flows are estimated based on projections of capacity, passenger mile yield, fuel costs, labor costs and other relevant factors. If, at any time, management determines the net carrying value of an asset is not recoverable, the amount is reduced to its fair value during the period in which such determination is made. Any changes in the estimated useful lives of these assets will be accounted for prospectively.

During the years ended December 31, 2022, 2021, and 2020, the Company recorded impairment of $6.3 million, $6.4 million, and $39.4 million, respectively, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** In 2020, the Company recorded impairment of $39.4 million related to its ATR-42 and ATR-72 fleet, assets held under its commercial real estate subsidiary, and software-related projects that were discontinued as a result of the COVID-19 pandemic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2021, the Company announced the termination of its 'Ohana by Hawaiian operations, which operated the ATR-42 and ATR-72 aircraft under a capacity purchase agreement with a third-party carrier. Following the termination of the operations, management committed to a plan of sale and wrote down the related assets by approximately $6.4 million to fair value, less cost to sell, and reclassified approximately $23.4 million as assets held for sale on the Consolidated Balance Sheets. Additionally, in the second quarter of 2021, management committed to a plan to sell certain commercial real-estate assets held by one of the Company's subsidiaries. Management fair valued the assets, less the cost to sell, which did not result in a write-down to the asset group, and reclassified approximately $6.1 million as assets held for sale on the Consolidated Balance Sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2022, the Company recorded impairment of $6.3 million on its remaining ATR-42 and ATR-72 aircraft, using available market information and taking into consideration recent transactions.

The Company estimated the fair value of its ATR-42 and ATR-72 fleets using a third-party valuation, available market information, and consideration of recent transaction and estimated the fair value of the assets held in its commercial real-estate subsidiary using a combination of a market and income-based approach, which estimates fair value based upon projections of future revenues, expenses, and cash flows discounted to its present value. The principal assumptions used in the Company's discounted cash flow analysis consisted of (a) the long-term projections of future financial performance and (b) the weighted-average cost of capital of market participants, adjusted for the risk attributable to the Company and the industry in which it operates.

*Assets Held for Sale* 

Long-lived assets that meet the held for sale criteria are held for sale and reported at the lower of their carrying amount or fair value less cost to sell. Gains and losses realized on transactions are recognized immediately. If the determination is made that the Company no longer expects to sell an asset within the next year, the asset is reclassified out of assets held for sale. See Note 11 of the Notes to the Consolidated Financial Statements for additional discussion.

*Revenue Recognition*

The Company records direct passenger ticket sales and tickets sold by other airlines for use on Hawaiian as passenger revenue when the transportation is provided or upon scheduled flights for tickets expected to expire unused. The value of unused passenger tickets is included in current liabilities as Air traffic liability. Passenger revenue associated with unused tickets, which represent unexercised passenger rights, is recognized in proportion to the pattern of rights exercised by related passengers (e.g. scheduled departure dates).

Prior to the second quarter of 2020, non-refundable tickets sold and credits issued generally expired 13 months from the date of issuance or flight, as applicable. In April 2020, the Company announced the waiver of certain change fees and extended ticket validity for up to 24 months for (a) tickets issued between March 1, 2020 and December 31, 2020 and (b) tickets issued prior to March 1, 2020 for original travel between March 1, 2020 and February 28, 2021. In December 2021, the Company announced the further extension of ticket validity for eligible tickets impacted by the COVID-19 pandemic, including all Main Cabin and First Class passenger tickets purchased in 2021, to December 31, 2022. The Company records an estimate of breakage revenue on the scheduled flight date for tickets that will expire unused. To calculate the portion to be recognized as revenue in the period, the Company utilizes historical information, available market information, forecasted trends, and the extension of the ticket validity date for those tickets impacted by COVID-19 and applies the estimated spoilage rate to passenger revenues for each specific period. Given the ongoing impacts of the COVID-19 pandemic on actual results, the Company continues to monitor customers' travel behavior and may adjust its estimates in the future.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

In 2020, the Company amended its policy to eliminate ticket change fees, excluding its Main Cabin Basic products. Ticket change fees are recorded in Air traffic liability and recognized when the related transportation is provided. During the twelve months ended December 31, 2022, 2021 and 2020, the Company recognized approximately $5.3 million, $4.8 million and $11.3 million, respectively in ticket change fee revenue related to tickets sold prior to the policy change.

Certain governmental taxes are imposed on the Company's ticket sales through a fee included in ticket prices. The Company collects these fees and remits them to the appropriate government agency. Management has elected (via a practical expedient election) to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer, e.g., sales, use, value added, and certain excise taxes. These fees have been presented on a net basis in the accompanying Consolidated Statements of Operations and recorded as a liability until remitted.

*Frequent Flyer Program*

*HawaiianMiles,* Hawaiian's frequent flyer travel award program, provides a variety of awards to program members based on accumulated mileage. ASC 606 requires the Company to account for miles earned by passengers in the *HawaiianMiles* program through flight activity as a component of the passenger revenue ticket transaction at the estimated selling price of the miles. Ticket consideration received is allocated between the performance obligations, primarily travel and miles earned by passengers. The allocated value of the miles is deferred until the free travel is used by the passenger, at which time it is included in revenue. The value of the ticket used in the determination of the estimated selling price is based on the historical value of equivalent flights to those provided for loyalty awards and the related miles redeemed to obtain that award adjusted for breakage or fulfillment. The equivalent ticket value (ETV) includes a fulfillment discount (breakage) to reflect the value of the award ticket over the number of miles that, based on historical experience, will be needed to obtain the award. The Company's estimate of ETV takes into consideration quantitative and qualitative factors, such as program changes and fares of similar tickets, and consideration of cabin class and geographic region.

The Company also sells mileage credits to companies participating in its frequent flyer program. These contracts generally include multiple performance obligations, including the transportation that will ultimately be provided when the mileage credits are redeemed and marketing and brand related activities. The marketing and brand performance obligations are effectively provided each time a HawaiianMiles members uses the co-branded credit card and monthly access to customers lists and marketing is provided, which corresponds to the timing of when the Company issues or is obligated to issue the mileage credits to the HawaiianMiles member. Therefore, the Company recognizes revenue for the marketing and brand performance obligation when HawaiianMiles members use their co-brand credit card and the resulting mileage credits are issued to them, which best correlates with the Company's performance in satisfying the obligation.

In 2018, the Company amended its partnership with Barclaycard US, Hawaiian's co-branded credit card partner. Management determined that the amendment should be accounted for as a termination of the existing contract and the creation of a new contract under ASC 606 and the relative selling price was determined for each performance obligation of the new agreement. The new agreement continues through 2024 and includes improved economics and enhanced product offerings for the Company's co-branded cardholders. The amended agreement did not change, and includes the following performance obligations; (i) transportation that will ultimately be provided when mileage credits are redeemed (transportation), (ii) the Hawaiian Airlines brand and access to its members lists (collectively, brand performance), (iii) marketing, and (iv) airline benefits to cardholders, including discounts and anniversary travel benefits, baggage waivers and inflight purchase credits. The Company determined the relative fair value of each performance obligation by estimating the selling prices of the deliverables by considering discounted cash flows using multiple inputs and assumptions, including: (1) the expected number of miles to be awarded and redeemed; (2) the estimated weighted average equivalent ticket value, adjusted by a fulfillment discount; (3) the estimated total annual cardholder spend; (4) an estimated royalty rate for the Hawaiian portfolio; and (5) the expected use of each of the airline benefits. The overall consideration received is allocated to the performance obligations based on their relative selling prices.

Accounting for frequent flyer revenue involves the use of various techniques to estimate revenue. To determine the total estimated transaction price, the Company forecasts future credit card activity based on historical data. The relative selling price is determined using management's estimated standalone selling price of each performance obligation. The objective of using the estimated selling price based methodology is to determine the price at which the Company would transact a sale if the product or service were sold on a standalone basis. Accordingly, the Company determines its best estimate of selling price by considering multiple inputs and methods including, but not limited to, discounted cash flows, brand value, number of miles

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

awarded and number of miles redeemed. The Company estimates the selling price of miles using an ETV adjusted for a fulfillment discount as described above.

In April 2021, the Company announced the elimination of its HawaiianMiles expiration policy, effective immediately. Prior to April 2021, miles expired after 18 months of member account inactivity. The Company reviews its breakage estimates, which impacts ETV and loyalty recognition patterns, annually based upon the latest available information regarding redemption and expiration patterns (e.g., credit card and non-credit card holders). The Company's estimate of the expected expiration of miles requires management judgment. Current and future changes to expiration assumptions or to the expiration policy, or to program rules and program could affect the estimated value of a mile. Management continues to monitor customers' travel behavior, changes in policies, and other factors, and may adjust its estimates in the future as additional information becomes available.

*Accounts Receivable*

Accounts receivable primarily consist of amounts due from credit card companies, non-airline partners, and cargo transportation customers. The Company provides an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical chargebacks, write-offs, bankruptcies and other specific analyses. Bad debt expense was not material in any period presented.

*Costs to Obtain or Fulfill a Contract*

In order for the Company to provide transportation to its customers, the Company incurs fulfillment costs (booking fees, credit card fees, and commission/selling costs), which are deferred until the period in which the flight occurs. As of December 31, 2022 and 2021, the Company's asset balance associated with these costs were $13.2 million and $13.9 million, respectively. During the twelve months ended December 31, 2022, 2021, and 2020, expenses related to these costs totaled to $83.1 million, $45.1 million, and $24.6 million, respectively. To determine the amount to capitalize and expense at the end of each period, the Company uses historical sales data and estimates the amount associated with unflown tickets.

*Pension and Postretirement and Postemployment Benefits*

The Company accounts for its defined benefit pension and other postretirement and postemployment plans in accordance with ASC 715, *Compensation—Retirement Benefits* (ASC 715), which requires companies to measure their plans' assets and obligations to determine the funded status at fiscal year-end, reflect the funded status in the statement of financial position as an asset or liability, and recognize changes in the funded status of the plans in comprehensive income during the year in which the changes occur. Pension and other postretirement and postemployment benefit expenses are recognized on an accrual basis over each employee's service periods. Pension expense is generally independent of funding decisions or requirements.

The Company uses the corridor approach in the valuation of its defined benefit pension and other postretirement and postemployment plans. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and actuarial assumptions. These unrecognized actuarial gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the expected average remaining service period of active plan participants for the open plans and is amortized over the expected average remaining lifetime of inactive participants for plans whose population is "all or almost all" inactive.

*Advertising Costs*

Advertising costs are expensed when incurred. Advertising expense was $22.6 million, $20.2 million and $15.3 million for the years ended December 31, 2022, 2021, and 2020, respectively.

*Capitalized Interest*

Interest is capitalized upon the payment of predelivery deposits for aircraft and engines, and is depreciated over the estimated useful life of the asset from service inception date.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

*Share-Based Compensation*

The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value of the awards is estimated using the following: (1) option-pricing models for grants of stock options or (2) fair value at the measurement date (usually the grant date) for restricted stock units (RSU) subject to service and / or performance-based vesting. The resulting cost is recognized as compensation expense over the period of time during which an employee is required to provide services to the Company (the service period) in exchange for the award, the service period generally being the vesting period of the award. The Company's policy is to recognize forfeitures as they occur.

*Financial Derivative Instruments*

The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global aircraft fuel prices, interest rates and foreign currency exchange rates. Derivative instruments in the Company's fuel and investment portfolios were not designated as hedges under ASC Topic 815, *Derivatives and Hedging (ASC 815)*, for hedge accounting treatment, and as a result, any change in the fair value of these derivative instruments is adjusted through Other Nonoperating Income (Expense) in the Consolidated Statement of Operations in the period of change.

All cash flows associated with purchasing and settling derivatives are classified as Operating cash flows in the Consolidated Statements of Cash Flows.

*Income Taxes*

We account for deferred income taxes under the liability method. We recognize deferred tax assets and liabilities based on the tax effects of temporary differences between the financial statement and tax basis of assets and liabilities, as measured by enacted tax rates. Deferred tax assets and liabilities are net by jurisdiction and are recorded as noncurrent on the consolidated balance sheets.

A valuation allowance is recorded to reduce deferred tax assets when necessary. We periodically assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred income tax assets. We establish valuation allowances if it is not likely we will realize our deferred income tax assets. In making this determination, we consider available positive and negative evidence and make certain assumptions. We consider, among other things, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, our historical financial results and tax planning strategies, where applicable. See Note 10 of the Notes to the consolidated financial statements for additional discussion.

The Company has recorded reserves for income taxes and associated interest that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, the Company nevertheless has established tax and interest reserves in recognition that various taxing authorities may challenge certain of the positions taken by the Company, potentially resulting in additional liabilities for taxes and interest. The Company's uncertain tax position reserves are reviewed periodically and are adjusted as events occur that affect its estimates, such as the availability of new information, the lapsing of applicable statutes of limitation, the conclusion of tax audits, the measurement of additional estimated liability, the identification of new tax matters, the release of administrative tax guidance affecting its estimates of tax liabilities, or the rendering of relevant court decisions. The Company records penalties and interest relating to uncertain tax positions as part of income tax expense in its Consolidated Statements of Operations.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**2. Accumulated Other Comprehensive Loss**

Reclassifications out of accumulated other comprehensive loss by component is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | |
|<br>**Details about accumulated other comprehensive loss components** | **2022** | **2021** | **2020** |<br>**Affected line items in the statement where net income is presented** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |  |
| **Derivatives designated as hedging instruments under ASC 815** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency derivative gains | $— | $— | $(3075) | Passenger revenue |
| &nbsp;&nbsp;&nbsp;Foreign currency derivative gains |  |  | (3945) | Nonoperating income (expense), other, net |
| &nbsp;&nbsp;&nbsp;Total before tax |  |  | (7020) |  |
| &nbsp;&nbsp;&nbsp;Tax expense |  |  | 1737 |  |
| &nbsp;&nbsp;&nbsp;Total, net of tax | $— | $— | $(5283) |  |
| **Amortization of defined benefit pension items** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Actuarial loss | $2063 | $4195 | $4048 | Nonoperating income (expense), other, net |
| &nbsp;&nbsp;&nbsp;Prior service cost | 438 | 370 | 712 | Nonoperating income (expense), other, net |
| &nbsp;&nbsp;&nbsp;Special termination benefits |  |  | 5258 | Other nonoperating special items |
| &nbsp;&nbsp;&nbsp;Curtailment loss |  |  | 424 | Other nonoperating special items |
| &nbsp;&nbsp;&nbsp;Total before tax | 2501 | 4565 | 10442 |  |
| &nbsp;&nbsp;&nbsp;Tax benefit | (640) | (1103) | (2309) |  |
| &nbsp;&nbsp;&nbsp;Total, net of tax | $1861 | $3462 | $8133 |  |
| **Short-term investments** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized gain on sales of investments | (228) | (2208) | (959) | Gains (losses) on investments, net |
| &nbsp;&nbsp;&nbsp;Realized loss on sales of investments, net | 22222 | 677 | 270 | Gains (losses) on investments, net |
| &nbsp;&nbsp;&nbsp;Total before tax | 21994 | (1531) | (689) |  |
| &nbsp;&nbsp;&nbsp;Tax expense | (5428) | 379 | 168 |  |
| &nbsp;&nbsp;&nbsp;Total, net of tax | 16566 | (1152) | (521) |  |
| **Total reclassifications for the period** | $18427 | $2310 | $2329 |  |

---

A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **<u>Year ended December 31, 2022</u>** | **Defined<br>Benefit<br>Pension Items** | **Short-Term Investments** | **Total** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Beginning balance** | $(75025) | $(6813) | $(81838) |
| Other comprehensive income (loss) before reclassifications, net of tax | 13725 | (45480) | (31755) |
| Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1861 | 16566 | 18427 |
| Net current-period other comprehensive income (loss), net of tax | 15586 | (28914) | (13328) |
| **Ending balance** | $(59439) | $(35727) | $(95166) |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

---

| | | | |
|:---|:---|:---|:---|
| **<u>Year ended December 31, 2021</u>** | **Defined<br>Benefit<br>Pension Items** | **Short-Term Investments** | **Total** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Beginning balance** | $(116181) | $1654 | $(114527) |
| Other comprehensive income (loss) before reclassifications, net of tax | 37694 | (7315) | 30379 |
| Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 3462 | (1152) | 2310 |
| Net current-period other comprehensive income (loss), net of tax | 41156 | (8467) | 32689 |
| **Ending balance** | $(75025) | $(6813) | $(81838) |

---

**3. Earnings (Loss) Per Share**

Basic earnings (loss) per share, which excludes dilution, is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.

The potentially dilutive shares that were excluded from the computation of diluted weighted average common stock shares outstanding because their effect would have been antidilutive was 398,509 and 550,112 for the twelve months ended December 31, 2022 and 2021, respectively. Unvested warrant shares held by Amazon have not been included in the computation as their performance condition has not yet been satisfied. As of December 31, 2022, the unvested Amazon warrant shares excluded from antidilutive shares were 8,183,451. Refer to Note 14 to the Notes to Consolidated Financial Statements for additional discussion.

The following table shows the Company's computation of basic and diluted earnings (loss) per share:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands, except for per share data)** | **(in thousands, except for per share data)** | **(in thousands, except for per share data)** |
| **Numerator:** |  |  |  |
| Net Loss | $(240081) | $(144773) | $(510935) |
| **Denominator:** |  |  |  |
| Weighted average common shares outstanding—Basic | 51361 | 50769 | 46100 |
| &nbsp;&nbsp;&nbsp;Dilutive effect of share-based awards and warrants |  |  |  |
| Weighted average common shares outstanding—Diluted | 51361 | 50769 | 46100 |
| **Net Loss Per Common Stock Share:** |  |  |  |
| Basic | $(4.67) | $(2.85) | $(11.08) |
| Diluted | $(4.67) | $(2.85) | $(11.08) |

---

**4. Revenue Recognition**

*Passenger & Other revenue -* The Company's contracts with customers have two principal performance obligations, which are the promise to provide transportation to the passenger and the frequent flyer miles earned on the flight. In addition, the Company often charges additional fees for items such as baggage and other miscellaneous ancillary services. Such items are not capable of being distinct from the transportation provided because the customer can only benefit from the services during the flight. The transportation performance obligation, including the redemption of *HawaiianMiles* awards for flights, is satisfied, and revenue is recognized, as transportation is provided. In some instances, tickets sold by the Company can include a flight segment on another carrier which is referred to as an interline segment. In this situation, the Company acts as an agent for the other carrier and revenue is recognized net of cost in other revenue. Tickets sold by other airlines where the Company provides the transportation are recognized as passenger revenue at the estimated value to be billed to the other airline when travel is provided.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The majority of the Company's revenue is derived from transporting passengers on its aircraft. Holdings' primary operations are that of its wholly-owned subsidiary, Hawaiian. Principally all operations of Hawaiian either originate and/or end in the state of Hawai'i. The management of such operations is based on a system-wide approach due to the interdependence of Hawaiian's route structure in its various markets. As Hawaiian offers only one significant line of business (i.e., air transportation), management has concluded that it has only one segment. The Company's operating revenues by geographic region (as defined by the Department of Transportation, DOT) are summarized below:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Domestic | $2304522 | $1504151 | $640153 |
| Pacific | 336745 | 92433 | 204660 |
| Total operating revenue | $2641267 | $1596584 | $844813 |

---

Hawaiian attributes operating revenue by geographic region based on the destination of each flight segment. Hawaiian's tangible assets consist primarily of flight equipment, which are mobile across geographic markets, and, therefore, have not been allocated to specific geographic regions. Domestic revenue includes the company's North America and Interisland operations. During the years ended December 31, 2022, 2021, and 2020, North America routes accounted for approximately 82%, 83% and 78% of domestic revenue, respectively.

Other operating revenue consists of cargo revenue, ground handling fees, commissions, and fees earned under certain joint marketing agreements with other companies. These amounts are recognized when the service is provided.

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| Passenger Revenue by Type | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Passenger revenue, excluding frequent flyer | $2152536 | $1264059 | $616214 |
| Frequent flyer revenue, transportation component | 182904 | 106843 | 48585 |
| Passenger Revenue | $2335440 | $1370902 | $664799 |
| Other revenue (e.g. cargo and other miscellaneous) | $182468 | $126349 | $94187 |
| Frequent flyer revenue, marketing and brand component | 123359 | 99333 | 85827 |
| Other Revenue | $305827 | $225682 | $180014 |

---

For the twelve months ended December 31, 2022, 2021, and 2020, the Company's total revenue was $2.6 billion, $1.6 billion, and $0.8 billion, respectively. As of December 31, 2022 and 2021, the Company's Air traffic liability balance as it relates to passenger tickets (excluding frequent flyer) was $414.5 million and $448.2 million, respectively, which represents future revenue that is expected to be realized.

During the twelve months ended December 31, 2022, 2021, and 2020, the amount of revenue recognized that was included in Air traffic liability as of the beginning of the respective period was $436.5 million, $184.0 million, and $254.8 million, respectively.

Prior to the second quarter of 2020, non-refundable tickets sold and credits issued generally expired 13 months from the date of issuance or scheduled flight, as applicable. In April 2020, the Company announced the waiver of certain change fees and extended ticket validity for up to 24 months for (a) tickets issued between March 1, 2020 and December 31, 2020 and (b) tickets issued prior to March 1, 2020 for original travel between March 1, 2020 and February 28, 2021. In December 2021, the Company announced the further extension of ticket validity to December 31, 2022, which also included all Main Cabin and First Class passenger tickets purchased in 2021. The Company records an estimate of breakage revenue on the scheduled flight date for tickets that will expire unused. These estimates are based on the evaluation of actual historical results, available market information, forecasted trends and the extension of the expiration date for certain tickets impacted by the COVID-19 pandemic.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

At December 31, 2022, $151.9 million of passenger tickets expired unused after receiving extended validity dates throughout the past two years. During the years ended December 31, 2022 and 2021, the Company recognized approximately $100.5 million and $51.4 million, respectively, in advanced ticket breakage related to these tickets.

Excluding tickets with extended validity dates, as discussed above, the Company recognized advanced breakage of $49.8 million, $48.3 million, and $12.8 million, during the years ended December 31, 2022, 2021 and 2020, respectively. Despite improvements in the industry and overall travel demand, the unflown rates continue to have higher than normal volatility in comparison to historical trends. The Company will continue to monitor customers' travel behavior and may adjust its estimates in the future.

*Frequent Flyer* 

The Company's frequent flyer liability is recorded in Air traffic liability (short-term) and Noncurrent frequent flyer deferred revenue in the Company's Consolidated Balance Sheet based on estimated and expected redemption patterns using historical data and analysis. As of December 31, 2022 and 2021, the balances were as follows:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2022** | **2021** |
| | **(in thousands)** | **(in thousands)** |
| Air traffic liability (current portion of frequent flyer deferred revenue) | $166211 | $169687 |
| Noncurrent frequent flyer deferred revenue | 318369 | 296484 |
| Total frequent flyer liability | $484580 | $466171 |

---

The table below presents a roll forward of Frequent flyer deferred revenue for the years ended December 31, 2022 and 2021:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** |
| | **(in thousands)** | **(in thousands)** |
| Total Frequent flyer liability - beginning balance | $466171 | $420125 |
| Miles awarded | 205614 | 155178 |
| Travel miles redeemed (Passenger Revenue) | (182904) | (106843) |
| Non-travel miles redeemed (Other Revenue) | (4301) | (2289) |
| Total Frequent flyer liability - ending balance | $484580 | $466171 |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**5. Short-Term Investments**

The following is a summary of short-term investments held as of December 31, 2022 and 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2022** | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Debt securities |  |  |  |  |
| &nbsp;&nbsp;Corporate debt securities | $340493 | $139 | $(23009) | $317623 |
| &nbsp;&nbsp;U.S. government and agency securities | 467049 | 181 | (12341) | 454889 |
| &nbsp;&nbsp;Other fixed income securities | 110881 | 23 | (6499) | 104405 |
| &nbsp;&nbsp;Asset-backed securities | 30205 |  | (2039) | 28166 |
| &nbsp;&nbsp;Collateralized loan obligations | 43736 | 130 | (3684) | 40182 |
| &nbsp;&nbsp;Bank notes | 11493 | 3 | (192) | 11304 |
| Derivatives | 43 | 1433 | (178) | 1298 |
| Equity securities | 213569 |  | (26109) | 187460 |
| Other investments measured at net asset value | 2087 |  | (221) | 1866 |
| Total short-term investments | $1219556 | $1909 | $(74272) | $1147193 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2021** | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Debt securities |  |  |  |  |
| &nbsp;&nbsp;Corporate debt securities | $450954 | $277 | $(4652) | $446579 |
| &nbsp;&nbsp;U.S. government and agency securities | 374113 | 87 | (1893) | 372307 |
| &nbsp;&nbsp;Other fixed income securities | 142035 | 62 | (564) | 141533 |
| &nbsp;&nbsp;Asset-backed securities | 19372 | 7 | (71) | 19308 |
| &nbsp;&nbsp;Collateralized loan obligations | 51082 | 32 | (116) | 50998 |
| &nbsp;&nbsp;Bank notes | 8110 |  | (20) | 8090 |
| Derivatives |  | 821 | (74) | 747 |
| Equity securities | 202068 | 1 | (2023) | 200046 |
| Other investments measured at net asset value | 2193 |  | (49) | 2144 |
| Total short-term investments | $1249927 | $1287 | $(9462) | $1241752 |

---

The following tables present fair values and gross unrealized losses by security type and length of time that individual securities have been in a continuous unrealized loss position:

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less than 12 Months** | **Less than 12 Months** | **12 Months or Greater** | **12 Months or Greater** | **Total** | **Total** |
| **December 31, 2022** | **Fair Value** | **Unrealized Losses** | **Fair Value** | **Unrealized Losses** | **Fair Value** | **Unrealized Losses** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Debt securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt | $145299 | $(10104) | $159216 | $(12905) | $304515 | $(23009) |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government and agency debt | 314790 | (8097) | 98653 | (4244) | 413443 | (12341) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other fixed income securities | 17836 | (1191) | 23316 | (5308) | 41152 | (6499) |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 11155 | (755) | 14435 | (1284) | 25590 | (2039) |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized loan obligations | 28133 | (2372) | 9491 | (1312) | 37624 | (3684) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank notes | 2836 | (192) |  |  | 2836 | (192) |
| Other investments measured at net asset value | 865 | (221) |  |  | 865 | (221) |
|  | $520914 | $(22932) | $305111 | $(25053) | $826025 | $(47985) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less than 12 Months** | **Less than 12 Months** | **12 Months or Greater** | **12 Months or Greater** | **Total** | **Total** |
| **December 31, 2021** | **Fair Value** | **Unrealized Losses** | **Fair Value** | **Unrealized Losses** | **Fair Value** | **Unrealized Losses** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Debt securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt | $316719 | $(4239) | $83889 | $(413) | $400608 | $(4652) |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government and agency debt | 291949 | (1716) | 52501 | (177) | 344450 | (1893) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other fixed income securities | 28198 | (638) |  |  | 28198 | (638) |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 16949 | (67) | 1046 | (4) | 17995 | (71) |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized loan obligations | 24030 | (116) |  |  | 24030 | (116) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank notes | 3990 | (20) |  |  | 3990 | (20) |
| Other investments measured at net asset value | 2144 | (49) |  |  | 2144 | (49) |
|  | $683979 | $(6845) | $137436 | $(594) | $821415 | $(7439) |

---

As of December 31, 2022 and December 31, 2021, the Company's unrealized losses from debt securities were generated from 496 positions out of 547 positions and 451 positions out of 558 positions, respectively.

Debt securities in a continuous unrealized loss position for twelve months or greater as of December 31, 2022 and December 31, 2021 were primarily attributable to changes in interest rates, relative to when the investment securities were purchased. The Company does not intend to sell any of these investments and it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis, which may be at maturity. Accordingly, the Company has determined that the unrealized losses on our debt securities as of December 31, 2022 were temporary in nature.

The Company has also evaluated its debt securities and did not recognize any significant credit losses as of December 31, 2022 and December 31, 2021.

For the twelve months ended December 31, 2022 and 2021, the unrealized losses on equity securities were $26.3 million and $2.1 million, respectively.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

Contractual maturities of short-term investments as of December 31, 2022 are shown below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Under 1 Year** | **1 to 5 Years** | **Over 5 Years** | **Total** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Debt securities |  |  |  |  |
| &nbsp;&nbsp;Corporate debt securities | $2794 | $236545 | $78284 | $317623 |
| &nbsp;&nbsp;U.S. government and agency securities | 39472 | 406126 | 9291 | 454889 |
| &nbsp;&nbsp;Other fixed income securities | 60884 | 29671 | 13850 | 104405 |
| &nbsp;&nbsp;Asset-backed securities | 481 | 18238 | 9447 | 28166 |
| &nbsp;&nbsp;Collateralized loan obligations |  |  | 40182 | 40182 |
| &nbsp;&nbsp;Bank notes |  | 7260 | 4044 | 11304 |
| **Total debt securities** | $103631 | $697840 | $155098 | $956569 |

---

The Company classifies investments as current assets as these securities are available for use in its current operations.

**6. Fair Value Measurements**

ASC 820 defines fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities;

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term for the assets or liabilities; and

Level 3 - Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The following tables present information about the Company's financial assets and liabilities measured at fair value on a recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements as of December 31, 2022** | **Fair Value Measurements as of December 31, 2022** | **Fair Value Measurements as of December 31, 2022** | **Fair Value Measurements as of December 31, 2022** |
| | **Total** | **Level 1** | **Level 2** | **Level 3** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Cash equivalents | $46729 | $46535 | $194 | $— |
| Restricted cash | 17498 | 17498 |  |  |
| Short-term investments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities | 317623 |  | 309450 | 8173 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government and agency securities | 454889 |  | 454889 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other fixed income securities | 104405 |  | 104405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 28166 |  | 19133 | 9033 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized loan obligations | 40182 |  | 37624 | 2558 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank notes | 11304 |  | 1878 | 9426 |
| &nbsp;&nbsp;Derivatives | 1298 |  | 1298 |  |
| &nbsp;&nbsp;Equity securities | 187460 | 186670 | 790 |  |
| &nbsp;&nbsp;Other investments measured at net asset value | 1866 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total short-term investments | 1147193 | 186670 | 929467 | 29190 |
| Other Assets |  |  |  |  |
| Assets held for sale | 14019 |  |  | 14019 |
| Crude oil call options | 5308 |  | 5308 |  |
| **Total assets measured at fair value** | $1230747 | $250703 | $934969 | $43209 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements as of December 31, 2021** | **Fair Value Measurements as of December 31, 2021** | **Fair Value Measurements as of December 31, 2021** | **Fair Value Measurements as of December 31, 2021** |
| | **Total** | **Level 1** | **Level 2** | **Level 3** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Cash equivalents | $339522 | $239912 | $99610 | $— |
| Restricted cash | 17267 | 17267 |  |  |
| Short-term investments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities | 446579 |  | 446579 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government and agency securities | 372307 |  | 372307 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other fixed income securities | 142280 |  | 142280 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 18561 |  | 14558 | 4003 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized loan obligations | 50998 |  | 47676 | 3322 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank notes | 8090 |  | 1337 | 6753 |
| &nbsp;&nbsp;&nbsp;Derivatives | 747 |  | 747 |  |
| &nbsp;&nbsp;&nbsp;Equity securities | 200046 | 200046 |  |  |
| &nbsp;&nbsp;&nbsp;Other investments measured at net asset value | 2144 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total short-term investments | 1241752 | 200046 | 1025484 | 14078 |
| Assets held-for-sale | 29449 |  |  | 29449 |
| **Total assets measured at fair value** | $1627990 | $457225 | $1125094 | $43527 |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

*Cash equivalents and restricted cash.* The Company's Level 1 cash equivalents consist of money market securities and mutual funds, which are valued based on quoted prices in an active market. The carrying amounts approximate fair value because of the short-term maturity of these assets. Level 2 cash equivalents consist primarily of debt securities with original maturity dates less than 90 days. The fair value of these instruments is based on a market approach using prices generated by market transactions involving similar assets. Restricted cash includes funds held in a controlled account to be used for debt service payments associated with the Company's loyalty and intellectual brand offering. As of December 31, 2022, approximately $17.5 million was held in the controlled account designated for debt servicing and was classified as restricted cash on the Company's Consolidated Balance Sheets.

*Short-term investments.* The Company's Level 1 short-term investments consist of equity mutual funds, which are valued based on a market approach using prices generated by market transactions involving identical assets. Level 2 short-term investments consist of corporate debt securities, U.S. government and agency securities, other fixed income securities, asset-backed securities, collateralized loan obligations, bank notes, equity securities, and derivative instruments as further discussed in Note 5, which are valued based on a market approach using industry standard valuation techniques that incorporate inputs such as quoted prices for similar assets, interest rates, benchmark curves, credit ratings, and other observable inputs or market data. Certain asset-backed securities, collateralized loan obligations, and private bank notes that are not readily marketable are classified as Level 3 in the fair value hierarchy and valued using certain unobservable inputs including future cash flows and discount rates.

The reconciliation of the Company's short-term investments measured at fair value on a recurring basis using unobservable inputs (Level 3) for the year ended December 31, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Short-term Investment Activity for the Twelve Months Ended December 31, 2022** | **Short-term Investment Activity for the Twelve Months Ended December 31, 2022** | **Short-term Investment Activity for the Twelve Months Ended December 31, 2022** | **Short-term Investment Activity for the Twelve Months Ended December 31, 2022** | **Short-term Investment Activity for the Twelve Months Ended December 31, 2022** |
| | **Asset-backed securities** | **Bank notes** | **Collateralized loan obligations** | **Corporate debt securities** | **Total** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Beginning balance as of January 1, 2022 | $4003 | $6753 | $3322 | $— | $14078 |
| &nbsp;&nbsp;&nbsp;Purchases | 5449 | 3440 | 2100 | 8593 | 19582 |
| &nbsp;&nbsp;&nbsp;Proceeds from sale |  |  | (122) |  | (122) |
| &nbsp;&nbsp;&nbsp;Redemptions and paydowns | (143) | (747) | (2852) |  | (3742) |
| &nbsp;&nbsp;&nbsp;Amortization and accretion, net | 98 | 9 | (10) | 47 | 144 |
| &nbsp;&nbsp;Realized and unrealized gains (losses), net | (374) | (29) | 120 | (467) | (750) |
| Ending balance as of December 31, 2022 | $9033 | $9426 | $2558 | 8173 | $29190 |

---

*Other investments at net asset value (NAV)*. In accordance with relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are investments in a partnership for which a secondary market does not exist. Investments in the partnership are carried at estimated net asset value as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. The Company can redeem its shares upon approval by the respective partnerships' managing member.

*Fuel derivative contracts.* The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global fuel prices. The Company's operations are inherently dependent upon the price and availability of aircraft fuel. To manage economic risks associated with fluctuations in aircraft fuel prices, the Company periodically enters into derivative financial instruments. Any changes in fair value of these derivative instruments are adjusted through other nonoperating income (expense) in the period of change. The Company's fuel derivative contracts consist of crude oil call options, which are not traded on a public exchange. The fair value of these instruments is determined based on inputs available or derived from public markets including contractual terms, market prices, yield curves, and measures of volatility, among others.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

*Assets held for sale*. The Company's assets held for sale consist of aircraft, engine, rotable and expendable aircraft parts related to the ATR-42 and ATR-72 fleet, and commercial real estate. These assets are measured at the lower of the carrying amount or fair value less cost to sell and a loss is recognized for any initial adjustment of the assets' carrying amount to fair value less cost to sell. The fair value measurements for the Company's held for sale assets were based on Level 3 inputs, which include information obtained from third-party valuation sources and other market sources. Refer to Note 11 of the Notes to Consolidated Financial Statements for additional discussion.

The reconciliation of our assets held for sale measured at fair value on a recurring basis using unobservable inputs (Level 3) for the year ended December 31, 2022 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Assets Held for Sale Activity for the Twelve Months Ended December 31, 2022** | **Assets Held for Sale Activity for the Twelve Months Ended December 31, 2022** | **Assets Held for Sale Activity for the Twelve Months Ended December 31, 2022** |
| | **ATR Aircraft** | **Commercial Real Estate** | **Total** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Beginning balance as of January 1, 2022 | $23158 | $6291 | $29449 |
| &nbsp;&nbsp;&nbsp;Additions |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale | (12580) |  | (12580) |
| &nbsp;&nbsp;&nbsp;Impairment charge | (6303) |  | (6303) |
| &nbsp;&nbsp;&nbsp;Realized gains | 3460 |  | 3460 |
| &nbsp;&nbsp;&nbsp;Realized losses | (7) |  | (7) |
| Ending balance as of December 31, 2022 | $7728 | $6291 | $14019 |

---

The table below presents the Company's debt measured at fair value:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fair Value of Debt** | **Fair Value of Debt** | **Fair Value of Debt** | **Fair Value of Debt** | **Fair Value of Debt** | **Fair Value of Debt** | **Fair Value of Debt** | **Fair Value of Debt** | **Fair Value of Debt** | **Fair Value of Debt** |
| **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| **Carrying<br>Amount** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | **Carrying<br>Amount** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
| **Carrying<br>Amount** | **Total** | **Level 1** | **Level 2** | **Level 3** | **Carrying<br>Amount** | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| $1631725 | $1356561 | $— | $— | $1356561 | $1838954 | $1808530 | $— | $— | $1808530 |

---

The fair value estimates of the Company's debt were based on the discounted amount of future cash flows using the Company's current incremental rate of borrowing for similar obligations.

The carrying amounts of cash, other receivables, and accounts payable approximate fair value due to the short-term nature of these financial instruments.

**7. Financial Derivative Instruments**

The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global fuel prices.

***Fuel Risk Management***

The Company's operations are inherently dependent upon the price and availability of aircraft fuel. To manage economic risks associated with fluctuations in aircraft fuel prices, the Company periodically enters into derivative financial instruments. The Company uses a combination of derivative contracts to hedge its aircraft fuel expense.

The following table reflects the amount of realized and unrealized gains and losses recorded as Nonoperating income (expense) in the Consolidated Statements of Operations.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Losses realized at settlement | $(401) | $(165) | $(9035) |
| Prior period unrealized amounts |  | 382 | 2487 |
| Unrealized gains (losses) that will settle in future periods | (2640) |  | (382) |
| Gains (losses) on fuel derivatives recorded as nonoperating income (expense) | $(3041) | $217 | $(6930) |

---

***Investment Portfolio Management***

The Company's investment managers use a combination of derivative instruments (swaps, futures, options and forward contracts) to manage risk associated with its investment portfolio, including the volatility in interest rates and currency exchange rates on foreign denominated debt securities. As of December 31, 2022 and 2021, the Company's derivative positions reflected a net asset position of $1.3 million and $0.7 million within the portfolio. During the years ended December 31, 2022 and 2021, the Company recognized net realized and unrealized gain of $5.1 million and $0.1 million, respectively, through Nonoperating income (expense). During the year ended December 31, 2020, no realized and unrealized gains and losses were recognized through nonoperating income (expense).

The following table presents the gross fair value of asset and liability derivatives that are designated as hedging instruments under ASC 815 and derivatives that are not designated as hedging instruments under ASC 815, as well as the net derivative positions and location of the asset and liability balances within the Consolidated Balance Sheets.

*Derivative positions as of December 31, 2022*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Balance Sheet<br>Location** | **Notional Amount** | **Final<br>Maturity<br>Date** | **Gross fair<br>value of<br>assets** | **Gross fair<br>value of<br>(liabilities)** | **Net<br>derivative<br>position** |
| | | **(in thousands)** | | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| *Derivatives not designated as hedges* |  |  |  |  |  |  |
| Fuel derivative contracts | Prepaid expenses and other | 57,288 gallons | December 2023 | $5308 | $— | $5308 |
| Foreign currency derivatives | Short-term investments | 36,426 European Dollars | March 2025 | $1254 | $(46) | $1208 |
| Interest rate contracts | Short-term investments | 32,891 US Dollars | March 2026 | $190 | $(100) | $90 |

---

As of December 31, 2021, the Company did not hold any derivative positions.

***Risk and Collateral***

The financial derivative instruments expose the Company to possible credit loss in the event the counterparties to the agreements fail to meet their obligations. To manage such credit risks, the Company (1) selects its counterparties based on past experience and credit ratings, (2) limits its exposure to any single counterparty, and (3) periodically monitors the market position and credit rating of each counterparty. Credit risk is deemed to have a minimal impact on the fair value of the derivative instruments as cash collateral would be provided to or by the counterparties based on the current market exposure of the derivative.

The Company's agreements with its counterparties also require the posting of cash collateral in the event the aggregate value of the Company's positions exceeds certain exposure thresholds. The aggregate fair value of the Company's derivative instruments that contain credit-risk related contingent features was in a net asset position of $6.6 million and $0.0 million as of December 31, 2022 and 2021.

ASC 815 requires a reporting entity to elect a policy of whether to offset rights to reclaim cash collateral or obligations to return cash collateral against derivative assets and liabilities executed with the same counterparty under a master netting agreement, or present such amounts on a gross basis. The Company's accounting policy is to present its derivative assets and liabilities on a net basis, including any collateral posted with the counterparty. The Company had no collateral posted with its counterparties as of December 31, 2022 and 2021, respectively.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The Company is also subject to market risk in the event these financial instruments become less valuable in the market. However, changes in the fair value of the derivative instruments will generally offset the change in the fair value of the hedged item, limiting the Company's overall exposure.

**8. Debt**

Long-term debt, net of unamortized discounts and issuance costs, is outlined as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| | **(in thousands)** | **(in thousands)** |
| Class A EETC-13, fixed interest rate of 3.9%, semiannual principal and interest payments, remaining balance due at maturity in January 2026 | $184572 | $196338 |
| Class B EETC-13, fixed interest rate of 4.95%, semiannual principal and interest payments |  | 45090 |
| Japanese Yen denominated financing, fixed interest rate of 1.05%, quarterly principal and interest payments, remaining balance due at maturity in May 2030 | 23524 | 30213 |
| Japanese Yen denominated financing, fixed interest rate of 1.01%, semiannual principal and interest payments, remaining balance due at maturity in June 2030 | 20350 | 26271 |
| Japanese Yen denominated financing, fixed interest rate of 0.65%, quarterly principal and interest payments, remaining balance due at maturity in March 2025 | 64276 | 91041 |
| Japanese Yen denominated financing, fixed interest rate of 0.76%, semiannual principal and interest payments, remaining balance due at maturity in September 2031 | 55731 | 70269 |
| Class A EETC-20, fixed interest rate of 7.375%, semiannual principal and interest payments |  | 48245 |
| Class B EETC-20, fixed interest rate of 11.25%, semiannual principal and interest payments |  | 19504 |
| CARES Act Payroll Support Program, fixed interest rate of 1.0% for the first through fifth years and variable interest of SOFR plus a margin of 2.0% for the sixth year through maturity, semiannual interest payments, principal balance due at maturity in April 2030 through September 2030 | 60278 | 60278 |
| Payroll Support Program Extension, fixed interest rate of 1.0% for the first through fifth years and variable interest of SOFR plus a margin of 2.0% for the sixth year through maturity, semiannual interest payments, principal balance due at maturity in March 2031 through April 2031 | 27797 | 27797 |
| Payroll Support Program 3, fixed interest rate of 1.0% for the first through fifth years and variable interest of SOFR plus a margin of 2.0% for the sixth year through maturity, semiannual interest payments, principal balance due at maturity in June 2031 | 23908 | 23908 |
| Loyalty Program Financing, fixed interest of 5.75%, quarterly interest payments, principal balance due at maturity in January 2026 | 1200000 | 1200000 |
| Unamortized debt discount and issuance costs | (28711) | (37560) |
| Total debt | $1631725 | $1801394 |
| &nbsp;&nbsp;&nbsp;Less: Current maturities of long-term debt | (47836) | (97096) |
| Long-Term Debt, less discount | $1583889 | $1704298 |

---

***Enhanced Equipment Trust Certificates (EETC)***

In 2013, Hawaiian consummated an EETC financing, whereby it created two pass-through trusts, each of which issued pass-through certificates. The proceeds of the issuance of the pass-through certificates were used to purchase equipment notes issued by the Company to fund a portion of the purchase price for six Airbus aircraft, all of which were delivered in 2013 and 2014. The equipment notes are secured by a lien on the aircraft, and the payment obligations of Hawaiian under the equipment notes will be fully and unconditionally guaranteed by the Company. The Company issued the equipment notes to the trusts as aircraft were delivered to Hawaiian. Hawaiian received all proceeds from the pass-through trusts by 2014 and recorded the debt obligation upon issuance of the equipment notes rather than upon the initial issuance of the pass-through certificates.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

In August 2020, the Company completed a $262.0 million offering of Class A and B pass-through certificates, Series 2020-1 utilizing a pass through trust (the 2020-1 EETC). The terms of the loans had a final maturity date of September 2027 and September 2025, at fixed installment coupon rates of 7.375% and 11.250%, respectively. The 2020-1 EETC was secured by two A330-200 aircraft and six A321-200neo aircraft.

The Company evaluated whether the pass-through trusts formed are variable interest entities (VIEs) required to be consolidated by the Company under applicable accounting guidance, and determined that the pass-through trusts are VIEs. The Company determined that it does not have a variable interest in the pass-through trusts. Neither the Company nor Hawaiian invested in or obtained a financial interest in the pass-through trusts. Rather, Hawaiian has an obligation to make interest and principal payments on the equipment notes held by the pass-through trusts, which are fully and unconditionally guaranteed by the Company. Neither the Company nor Hawaiian intends to have any voting or non-voting equity interest in the pass-through trusts or to absorb variability from the pass-through trusts. Based on this analysis, the Company determined that it is not required to consolidate the pass-through trusts.

In October 2021, the Company repurchased approximately $160.9 million of its outstanding 7.375% Series 2020-1A Pass Through Certificates due 2027 and 11.250% Series 2020-1B Pass Through Certificates due 2025. The Company paid a premium on the repurchase, which resulted in the recognition of a loss on the extinguishment of debt of $34.9 million reflected as nonoperating income (expense) in the Consolidated Statement of Operations.

In January 2022, the Company made the final scheduled principal payment of $45.1 million for its Class B EETC-13 debt obligation.

In June 2022, the Company repurchased the remaining $62.4 million of outstanding Series 2020-1A and Series 2020-1B Equipment Notes. The repurchase resulted in the recognition of a loss on extinguishment of debt of $8.6 million during the year ended December 31, 2022, which is reflected in the nonoperating income (expense), Loss on extinguishment of debt line item on the Consolidated Statements of Operations.

***Foreign Denominated Financing***

In 2018, the Company entered into two Japanese Yen denominated financings with a total value of approximately $86.5 million (¥9.6 billion), collateralized by the aircraft financed with a net book value of $106.1 million. Each financing is for a term of 12 years with quarterly or semiannual principal and interest payments, respectively, at fixed installment coupon rates of 1.01% and 1.05%, respectively.

In 2019, the Company entered into two Japanese Yen denominated agreements totaling $227.9 million (¥24.7 billion), which were collateralized through a combination of two A321neo and four A330-200 aircraft with a net book value of approximately $382.7 million. The terms of the loans are 12 years and 5.5 years, at fixed installment coupon rates of 0.76% and 0.65%, respectively.

At each balance sheet date, the Company remeasures the outstanding principal balance at the spot rate for the respective period and records any gain or loss at the current rate within the other nonoperating income (expense) line item in the Consolidated Statements of Operations. During 2022 and 2021, the Company recorded foreign currency unrealized gains of $26.2 million and $27.6 million, respectively.

***Revolving Credit Facility***

In March 2020, the Company drew down $235 million in revolving loans pursuant to its Amended and Restated Credit and Guaranty Agreement (the Credit Agreement) dated December 11, 2018. In February 2021, the Company repaid the $235 million outstanding amount drawn on its revolving credit facility.

In August 2022, the Company entered into an Amended and Restated Credit and Guarantee Agreement (the Revolving Credit Facility). The Revolving Credit Facility has an aggregate principal amount not to exceed $235 million and matures in December 2025. The Company may, from time to time, grant liens on certain eligible account receivables, aircraft, spare engines, ground support equipment and route authorities, as well as cash and certain cash equivalents, in order to secure its outstanding obligations under the Revolving Credit Facility. Indebtedness under the Revolving Credit Facility will bear interest, at a per annum rate based on, at the Company's option: (1) a variable rate equal to the Secured overnight financing rate plus a margin of 3.0%; or (2) Alternate base rate (as defined in the Revolving Credit Facility) plus a margin of 2.0%. The Revolving Credit

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

Facility requires that the Company maintain $300 million in liquidity, as defined under the Credit Agreement. In the event that the requirement is not met, or other customary conditions are not satisfied, the due date of the revolving loans may be accelerated. As of December 31, 2022, the Company has $235 million undrawn and available under its revolving credit facility.

***Payroll Support Program Loans***

The Company participated in the initial PSP, the PSP Extension, and the PSP3. During the twelve months ended December 31, 2021, the Company received $372.4 million in payroll support payments. The support payments included total grants of $320.6 million that were recognized as a contra-expense in the Consolidated Statements of Operations. A summary of the amounts received and warrants issued as of December 31, 2022 under these programs is set forth in the following table:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of payroll support program activity** | **Summary of payroll support program activity** | | | | |
| **(in millions, except percentages)** | **Total Amount** | **Grant** | **Loan** | **Number of warrants** | **Percentage of outstanding shares at December 31, 2022** |
| Payroll Support Program | $300.9 | $240.6 | $60.3 | 0.5 | 1.0% |
| Payroll Support Program Extension | 192.7 | 164.9 | 27.8 | 0.2 | 0.3% |
| Payroll Support Program 3 | 179.7 | 155.8 | 23.9 | 0.1 | 0.2% |
| Total | $673.3 | $561.3 | $112.0 | 0.8 | 1.5% |

---

*Payroll Support Program.* In April 2020, the Company entered into a Payroll Support Program agreement (the PSP Agreement) with the U.S. Department of Treasury (the Treasury) under the CARES Act. Pursuant to the PSP Agreement, the Treasury provided the Company with financial assistance, paid in installments, totaling approximately $300.9 million. The Company issued a promissory note to the Treasury (the PSP Note) for approximately $60.3 million and agreed to issue to the Treasury a total of 509,964 warrants to purchase shares of the Company's common stock at an exercise price of $11.82 per share (the PSP Warrants) pursuant to the PSP Agreement. The PSP Warrants are non-voting, freely transferable, may be settled as net shares or in cash at the Company's option, expire five years from the date of issuance, and contain registration rights and customary anti-dilution provisions. The Company recorded the value of the PSP Note and the PSP Warrants on a relative fair value basis as $53.6 million in noncurrent debt and $6.7 million in additional paid in capital, respectively.

*Payroll Support Program Extension.* In January 2021, the Company entered into a PSP extension agreement (the PSP Extension Agreement) and contemporaneously entered into a warrant agreement (the Warrant Extension Agreement) with the Treasury and issued a promissory note to the Treasury (the PSP Extension Note). During the twelve months ended December 31, 2021, the Company received a total of $192.7 million in financial assistance, to be used exclusively for continuing to pay employee salaries, wages and benefits, including the payment of lost wages, salaries and benefits to certain returning employees as defined in the PSP Extension Agreement. These support payments consisted of $164.9 million in a grant and $27.8 million in an unsecured 10-year low interest loan, and as compensation to the U.S. government, and pursuant to the Warrant Extension Agreement, the Company issued warrants to the Treasury to purchase up to a total of 156,340 shares of its common stock at an exercise price of $17.78 per share (the PSP Extension Warrants). The PSP Extension Warrants are non-voting, freely transferable, may be settled as net shares or in cash at the Company's option, expire five years from the date of issuance, and contain registration rights and customary anti-dilution provisions. The Company recorded the value of the PSP Extension Note and the PSP Extension Warrants on a relative fair value basis as $23.8 million in noncurrent debt and $4.0 million in additional paid in capital, respectively.

*Payroll Support Program 3*. In April 2021, the Company entered into a Payroll Support Program 3 Agreement with the Treasury (PSP3 Agreement), a promissory note (the PSP3 Note), and a Warrant Agreement (the PSP3 Warrant Agreement). The PSP3 Agreement extends (i) the prohibition on conducting involuntary employee layoffs or furloughs through September 2021 or the date on which assistance provided under the agreement is exhausted, whichever is later, (ii) the prohibitions on share repurchases and dividends through September 2022, and (iii) the limitations on executive compensation through April 1, 2023.

During the twelve months ended December 31, 2021, the Company received $179.7 million in payroll support payments under the PSP3 Agreement, consisting of $155.8 million in a grant and $23.9 million in an unsecured 10-year low interest loan. As compensation to the U.S. government, and pursuant to the PSP3 Warrant Agreement, the Company issued warrants to the

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

Treasury to purchase up to a total of 87,670 shares of its common stock at an exercise of $27.27 per share (the PSP3 Warrants). The terms of the PSP3 Note and PSP3 Warrants are consistent with those of the original PSP and the first PSP Extension. The Company recorded the value of the PSP3 Note and the PSP3 Warrants on a relative fair value basis as $22.1 million in noncurrent debt and $1.8 million in additional paid in capital, respectively.

***Economic Relief Program***

In 2020, the Company entered into and subsequently amended and restated its Loan Agreement with the Treasury (Amended and Restated Loan Agreement), which increased the maximum facility available to be borrowed by the Company to $622.0 million. As of September 30, 2020, the Company borrowed $45.0 million under the ERP and may, at its option, borrow additional amounts in up to two subsequent borrowings until March 26, 2021. The Company recorded the value of the loan and the ERP Warrants on a relative fair value basis as $41.9 million in noncurrent debt and $3.1 million in additional paid in capital, respectively.

On February 4, 2021, the Company repaid in full the $45.0 million loan under the ERP, and in connection with this repayment, terminated the Amended and Restated Loan Agreement. The debt extinguishment resulted in the recognition of a loss of $4.0 million during the twelve months ended December 31, 2021, which is reflected in nonoperating income (expense) in the Consolidated Statement of Operations. The warrants issued under the ERP Warrant Agreement remain outstanding pursuant to its terms.

***Loyalty Program and Intellectual Property Financing***

In February 2021, the Company completed the private offering (the Notes Offering) by Hawaiian Brand Intellectual Property, Ltd., an indirect wholly owned subsidiary of Hawaiian (the Brand Issuer), and HawaiianMiles Loyalty, Ltd., an indirect wholly owned subsidiary of Hawaiian (the Loyalty Issuer and, together with the Brand Issuer, the Issuers) of an aggregate of $1.2 billion principal amount of their 5.750% senior secured notes due 2026 (the Notes). The Notes require interest only payments, payable quarterly in arrears on July 20, October 20, January 20 and April 20 of each year, which began on July 20, 2021.

The Notes are fully and unconditionally guaranteed, jointly and severally, by (i) Hawaiian Finance 1 Ltd., a direct wholly owned subsidiary of Hawaiian (HoldCo 1), (ii) Hawaiian Finance 2 Ltd., a direct subsidiary of HoldCo 1 and indirect wholly owned subsidiary of Hawaiian (HoldCo 2 and, together with HoldCo 1, the Cayman Guarantors), (iii) Hawaiian and (iv) Holdings (Holdings, together with Hawaiian, the Parent Guarantors and the Parent Guarantors, together with the Cayman Guarantors, the Guarantors). The Notes were issued pursuant to the Indenture, among the Issuers, the Guarantors and Wilmington Trust, National Association, as trustee, collateral custodian.

In connection with the issuance of the Notes, Hawaiian contributed to the Brand Issuer, which is a newly-formed subsidiary structured to be bankruptcy remote, all worldwide rights, owned or purported to be owned, or later developed or acquired and owned or purported to be owned, by Hawaiian or any of its subsidiaries, in and to all intellectual property, including all trademarks, service marks, brand names, designs, and logos that include the word "Hawaiian" or any successor brand and the "hawaiianairlines.com" domain name and similar domain names or any successor domain names (the Brand IP). The Brand Issuer indirectly granted Hawaiian an exclusive, worldwide, perpetual and royalty-bearing sublicense to use the Brand IP. Further, Hawaiian contributed to the Loyalty Issuer its rights to certain other collateral owned by Hawaiian, including, to the extent permitted by such agreements or otherwise by operation of law, any of Hawaiian's rights under the HawaiianMiles Agreements and the IP Agreements (each as defined in the Indenture), together with HawaiianMiles program (HawaiianMiles) customer data and certain other intellectual property owned or purported to be owned, or later developed or acquired and owned or purported to be owned, by Hawaiian or any of its subsidiaries (including the Issuers) and required or necessary to operate HawaiianMiles (the Loyalty Program IP) (all such collateral being, the Loyalty Program Collateral). The Loyalty Issuer indirectly granted Hawaiian an exclusive, worldwide, perpetual and royalty-free sub-license to use the Loyalty Program IP.

As of December 31, 2022, approximately $17.5 million in cash was held in the Interest Reserve Account designated for debt servicing, and is classified as restricted cash on the Company's Consolidated Balance Sheets.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

***Schedule of Debt Maturities***

As of December 31, 2022, the scheduled maturities of debt, excluding debt issuance costs, are as follows (in thousands):

---

| | |
|:---|:---|
| 2023 | $49118 |
| 2024 | 46978 |
| 2025 | 60697 |
| 2026 | 1339518 |
| 2027 | 12065 |
| Thereafter | 152060 |
|  | $1660436 |

---

***Covenants***

The Company's debt agreements contain various affirmative, negative and financial covenants as discussed above within this Note. We were in compliance with the covenants in these debt agreements as of December 31, 2022.

**9. Leases**

The Company leases aircraft, engines, airport terminal facilities, maintenance hangars, commercial real estate, and other property and equipment, among other items. The Company combines lease and non-lease components in calculating the Right-of-Use (ROU) asset and lease liabilities for the aforementioned asset groups. Certain leases include escalation clauses, renewal options, and/or termination options. When lease renewals or termination options are considered to be reasonably certain, such periods are included in the lease term and fixed payments are included in the calculation of the lease liability and ROU asset.

The Company's leases do not provide a readily determinable implicit rate; therefore, the Company utilizes an incremental borrowing rate to discount lease payments based on information available at lease commencement. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates.

***Sale-Leaseback Transactions***

During the twelve months ended December 31, 2020, the Company entered into sale-leaseback transactions for two A321-200 aircraft. The transactions qualified as a sale, generating an immaterial loss, and the associated assets were removed from property and equipment, net and recorded as operating lease right-of-use assets on the Company's Consolidated Balance Sheets. The liabilities are recorded within current and noncurrent operating lease liabilities on the Company's Consolidated Balance Sheets.

***Aircraft, Engines, and Aircraft Equipment***

As of December 31, 2022, the Company leased 21 of its 64 aircraft. Of the 21 lease contracts, 4 aircraft lease contracts were accounted for as finance leases, with the remaining 17 lease contracts accounted for as operating leases. These aircraft leases have remaining lease terms ranging from 1 year to 10 years. The Company also has 2 engines under operating lease with remaining lease terms of 3 years and 4 years, respectively. The Company has a flight simulator under a finance lease with a remaining lease term of approximately 3 years.

***Airport Terminal Facilities***

The Company's facility leases are primarily for terminal space at airports that it serves, most notably, its operations in the state of Hawai'i. These leases are classified as operating leases and reflect the Company's use of airport terminals, office space, cargo and maintenance facilities. The Company leases space from government agencies that control the use of the airport. The remaining lease terms vary from 1 month to 27 years. At the majority of U.S. airports, the lease rates depend on airport

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

operating costs or the use of the facilities and are reset at least annually. Because of the variable nature of the rates, these leases are not recorded on the Company's balance sheet as a ROU asset and lease liability.

***Other Commercial Real Estate***

The Company leases non-airport facility office space supporting its operations, including its headquarters in Honolulu, Hawai'i. These leases are classified as operating and have remaining lease terms ranging between 1 to 4 years.

***Maintenance Hangar***

The Company leases a cargo and maintenance hangar at the Daniel K. Inouye International Airport. The lease is accounted for as an operating lease and has a remaining lease term of 29 years as of December 31, 2022.

***Other Property and Equipment***

The Company leases certain IT assets (including data center access, equipment, etc.) and various other non-aircraft equipment. The remaining lease terms range from 1 to 3 years. Certain lease IT assets are embedded within service agreements. The combined lease and non-lease components of those agreements are included in the ROU asset and lease liability.

***Lease Position as of December 31, 2022***

The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheet.

---

| | | | |
|:---|:---|:---|:---|
| | | **As of December 31,** | **As of December 31,** |
| |<br>**Classification on the Balance Sheet** | **2022** | **2021** |
| | | **(in thousands)** | **(in thousands)** |
| **Assets:** |  |  |  |
| Operating lease assets | Operating lease right-of use assets | $459128 | $536154 |
| Finance lease assets | Property and equipment, net | 90847 | 114376 |
| Total lease assets |  | $549975 | $650530 |
| **Liabilities:** |  |  |  |
| Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating | Current maturities of operating leases | $77858 | $79158 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance | Current maturities of finance lease obligations | 25789 | 24149 |
| Noncurrent |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating | Noncurrent operating leases | 347726 | 423293 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance | Finance lease obligations | 75221 | 100995 |
| Total lease liabilities |  | $526594 | $627595 |
| Weighted-average remaining lease term |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases |  | 10.4 years | 10.4 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance leases |  | 6.9 years | 7.2 years |
| Weighted-average discount rate |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases (1) |  | 5.72% | 5.63% |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance leases |  | 4.30% | 4.37% |

---

<sup>(1)</sup> Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

***Lease Costs***

During the twelve months ended December 31, 2022 and 2021, the total lease costs for finance and operating leases were as follows:

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Finance lease cost: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | $23265 | $23339 | $23197 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest of lease liabilities | 4963 | 6022 | 6887 |
| Operating lease cost (1) | 105445 | 110864 | 108505 |
| Short-term lease cost (1) | 2650 | 2909 | 981 |
| Variable lease cost (1) | 142894 | 112475 | 68212 |
| Total lease cost | $279217 | $255609 | $207782 |

---

<sup>(1)</sup> Expenses are classified within aircraft rent and other rentals and landing fees in the Consolidated Statements of Operations.

During the twelve months ended December 31, 2022, the cash paid for amounts included in the measurement of lease liabilities were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Operating cash flows for operating leases | 105021 | 110286 | 113585 |
| Operating cash flows for finance leases | 4948 | 5997 | 6887 |
| Financing cash flows for finance lease | 24137 | 23040 | 22295 |

---

***Undiscounted Cash Flows***

As of December 31, 2022, the scheduled future minimum rental payments under finance leases and operating leases with non-cancellable basic terms of more than one year are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Finance Leases** | **Finance Leases** | **Operating Leases** | **Operating Leases** |
| | **Aircraft** | **Other** | **Aircraft** | **Other** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| 2023 | $22972 | $6564 | $86467 | $13154 |
| 2024 | 16669 | 1175 | 77497 | 13249 |
| 2025 | 11941 | 974 | 56045 | 12084 |
| 2026 | 11047 | 236 | 49734 | 10127 |
| 2027 | 11047 | 236 | 34772 | 6072 |
| Thereafter | 27400 | 6170 | 60233 | 148767 |
| Total minimum lease payments | $101076 | $15355 | $364748 | $203453 |
| Less: amounts representing interest | (12240) | (3180) | (58918) | (83699) |
| Present value of future minimum lease payments | $88836 | $12175 | $305830 | $119754 |
| Less: current maturities of lease obligations | (19602) | (6187) | (70537) | (7321) |
| Long-term lease obligations | $69234 | $5988 | $235293 | $112433 |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**10. Income Taxes**

The significant components of income tax expense (benefit) are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Current |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | $(1073) | $1522 | $(113010) |
| &nbsp;&nbsp;&nbsp;State | (493) | (448) | (3919) |
|  | $(1566) | $1074 | $(116929) |
| Deferred |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | $(49646) | $(39589) | $(52824) |
| &nbsp;&nbsp;&nbsp;State | (2556) | (2035) | (19364) |
|  | $(52202) | $(41624) | $(72188) |
| Income tax benefit | $(53768) | $(40550) | $(189117) |

---

The income tax benefit differed from amounts computed at the statutory federal income tax rate as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Income tax benefit computed at the statutory federal rate | $(61709) | $(38918) | $(147012) |
| Increase (decrease) resulting from: |  |  |  |
| &nbsp;&nbsp;&nbsp;State income taxes, net of federal tax effect | (11186) | (6203) | (22508) |
| &nbsp;&nbsp;&nbsp;Nondeductible meals | 597 | 466 | 271 |
| &nbsp;&nbsp;&nbsp;Goodwill impairment |  |  | 22399 |
| &nbsp;&nbsp;&nbsp;Change in valuation allowance | 17805 | 4445 | 7070 |
| &nbsp;&nbsp;&nbsp;CARES Act (NOL carryback) |  |  | (45417) |
| &nbsp;&nbsp;&nbsp;Stock compensation | 920 | 436 | 473 |
| &nbsp;&nbsp;&nbsp;Other | (195) | (776) | (4393) |
| Income tax benefit | $(53768) | $(40550) | $(189117) |

---

On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, allows for net operating losses (NOLs) incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes and eliminates the 80 percent limitation on carried back NOLs. During the year ended December 31, 2020, the carryback of NOLs to preceding tax years resulted in the recognition of a tax benefit of approximately $45.4 million.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The components of the Company's deferred tax assets and liabilities were as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| | **(in thousands)** | **(in thousands)** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Accumulated pension and other postretirement benefits | $35384 | $41740 |
| &nbsp;&nbsp;&nbsp;Operating leases liabilities | 104938 | 124570 |
| &nbsp;&nbsp;&nbsp;Finance leases | 2616 | 2641 |
| &nbsp;&nbsp;&nbsp;Air traffic liability and frequent flyer liability | 84723 | 118005 |
| &nbsp;&nbsp;&nbsp;Partnership deferred revenue | 4377 | 5242 |
| &nbsp;&nbsp;&nbsp;Federal and state net operating loss carryforwards | 86452 | 26725 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 16720 | 15377 |
| &nbsp;&nbsp;&nbsp;Other accrued assets | 16803 | 14360 |
| &nbsp;&nbsp;&nbsp;Capital losses | 10271 |  |
| &nbsp;&nbsp;&nbsp;Deferred interest under IRC Section 163(j) | 34132 | 18956 |
| &nbsp;&nbsp;&nbsp;Other assets | 23612 | 14090 |
| &nbsp;&nbsp;&nbsp;Total gross deferred tax assets | 420028 | 381706 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Valuation allowance | (31867) | (14062) |
| &nbsp;&nbsp;&nbsp;Net deferred tax assets | $388161 | $367644 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Intangible assets | $(3205) | $(3223) |
| &nbsp;&nbsp;&nbsp;Property and equipment, principally accelerated depreciation | (377943) | (394207) |
| &nbsp;&nbsp;&nbsp;Finance leases | (787) | (5228) |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | (115765) | (135659) |
| &nbsp;&nbsp;&nbsp;Other liabilities | (20861) | (16124) |
| &nbsp;&nbsp;&nbsp;Total deferred tax liabilities | (518561) | (554441) |
| Net deferred tax liability | $(130400) | $(186797) |

---

As of December 31, 2022, the Company had federal and state NOL carryforwards of $236.0 million and $708.0 million, respectively. The Company's federal NOLs have an indefinite carryover period and state net operating losses will begin to expire in 2024 if not utilized. Utilization of the Company's NOL carryforwards may be subject to annual limitations due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. The Company's NOL carryforwards could expire before utilization if subject to annual limitations. As of December 31, 2022, the Company had gross realized capital loss carryforwards of $16.7 million, which expire in 2027 if not utilized.

As of December 31, 2022, the Company had research and development tax credit and Work Opportunity tax credit carryforwards totaling $3.9 million, which may be used to offset future tax liabilities, and which will begin to expire in 2034.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including the reversal of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. The Company assesses the realizability of its deferred tax assets and records a valuation allowance when it is more likely than not, that a portion, or all, of the deferred tax assets will not be realized.

The tax benefit of the state NOL carryforwards as of December 31, 2022 was $37.0 million, of which $21.6 million has a valuation allowance. The tax benefit of the capital loss carryforwards as of December 31, 2022 was $10.3 million, of which $4.1 million relates to net realized capital losses that will expire in 2027 if not utilized and $6.2 million relates to net unrealized capital losses. A full valuation allowance has been recorded against this entire amount. The tax benefit of the state NOL carryforwards as of December 31, 2021 was $25.6 million, of which $14.1 million has a valuation allowance.

In accordance with ASC 740, the Company reviews its uncertain tax positions on an ongoing basis. The Company may be required to adjust its liability as these matters are finalized, which could increase or decrease its income tax expense and

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

effective income tax rates or result in an adjustment to the valuation allowance. The Company records the uncertain tax position liability in Other accrued liabilities (current) and Other liabilities and deferred credits (non-current) in the Consolidated Balance Sheet, based on the period in which the Company expects the unrecognized tax benefits will be resolved. As of December 31, 2022, the Company has $0.8 million of uncertain tax positions that may decrease within the next twelve months due to the expiration of the statute of limitations.

The table below reconciles beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions:

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| | (in thousands) | (in thousands) | (in thousands) |
| Balance at January 1 | $3771 | $3449 | $6263 |
| Increases related to prior year tax positions | (81) | 11 | 104 |
| Increases related to current year tax positions | 568 | 672 | 562 |
| Settlements with taxing authority |  |  | (1063) |
| Effect of the expiration of statutes of limitation | (513) | (361) | (2417) |
| Balance at December 31 | $3745 | $3771 | $3449 |

---

The Company's policy is to recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes. In 2022, 2021, and 2020, the Company recognized expense (benefit) of $0.0 million, $0.0 million, and $(0.7) million, respectively, for interest and penalties on uncertain tax positions. As of December 31, 2022 and 2021, the Company accrued approximately $0.1 million and $0.2 million, respectively, for the payment of interest and penalties related to uncertain tax positions.

The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company's federal income tax returns for tax years 2018 and beyond, and state income tax returns for tax years 2017 and beyond remain subject to examination by the Internal Revenue Service and state taxing authorities.

**11. Assets Held-For-Sale**

During the second quarter of 2021, the Company reclassified approximately $29.5 million in long-lived assets as held for sale as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company announced the termination of its 'Ohana by Hawaiian operations, which utilizes its ATR-42 and ATR-72 fleet, and was operated under a capacity purchase agreement (CPA) with a third-party carrier. Following the termination of the operations, management committed to a plan of sale and wrote-down the related assets by approximately $6.4 million to fair value, less cost to sell, and classified approximately $23.4 million as assets held for sale on the Consolidated Balance Sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company committed to a plan to sell certain commercial real-estate assets held by one of the Company's subsidiaries. Management fair valued the assets, less the cost to sell, which did not result in a write-down to the asset group, and reclassified approximately $6.1 million as assets held for sale on the Consolidated Balance Sheets.

During the second quarter of 2022, the Company sold three ATR-72 aircraft and recognized a $2.6 million gain on the transactions, which was recorded in Other operating expense in the consolidated statements of operations. During the third quarter of 2022, the Company estimated the fair value of its remaining ATR-42 and ATR-73 aircraft, using available market information and in consideration of recent transactions, which resulted in the recognition of a $6.3 million impairment charge, which was recorded as a Special item in the Consolidated Statements of Operations.

As of December 31, 2022 and 2021, the Company had approximately $14.0 million and $29.4 million, respectively, in assets held for sale on the Consolidated Balance Sheets. Management continues to actively market the above referenced assets and expects their sale within the upcoming 12 months, and will continue to monitor the asset groups for potential impairment.

**12. Special Items**

Special items in the Consolidated Statements of Operations consisted of the following:

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Operating special items:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract termination fee (1) | $12500 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held-for-sale impairment (2) | 6303 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ohana by Hawaiian termination (3) |  | 8983 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Collective bargaining agreement payment (4) |  |  | 20242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment (5) |  |  | 106662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-lived asset impairment (6) |  |  | 38933 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized software projects (6) |  |  | 509 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance and benefit costs (7) |  |  | 17765 |
| Total Operating special items | $18803 | $8983 | $184111 |
| **Nonoperating special items:** |  |  |  |
| Other nonoperating special items: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special termination benefits (8) | $— | $— | $5258 |
| &nbsp;&nbsp;&nbsp;&nbsp;Curtailment loss (8) |  |  | 424 |
| Total Other nonoperating special items | $— | $— | $5682 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)In December 2022, the Company entered into a Memorandum of Understanding (MOU) with its third-party service provider to early terminate its Amended and Restated Complete Fleet Services (CFS) Agreement (Amended CFS). The Amended CFS was originally scheduled to run through December 2027, and will now terminate in April 2023. In connection with the MOU, the Company agreed to pay a total of $12.5 million in termination fees, which was recognized at execution as a Special item in the Consolidated Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)As discussed in Note 11, during the year ended December 31, 2022, the Company recognized impairment of $6.3 million related to its assets held-for-sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)In the second quarter of 2021, the Company announced the termination of its 'Ohana by Hawaiian operations. The Company wrote-down the asset group to fair value, less cost to sell by approximately $6.4 million. Additionally, the Company recorded a one-time charge of approximately $2.6 million for the early termination of its CPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)In March 2020, the Company reached an agreement in principle with the flight attendants of Hawaiian, represented by the Association of Flight Attendants (the AFA) on a new five-year contract that runs through April 2025. On April 3, 2020, the Company received notice from the AFA that the collective bargaining agreement (the CBA) was ratified by its members. The ratified CBA provides for, among other things, a ratification payment to be paid over a one-year term, increased medical cost sharing, improved pay scales, and a one-time medical savings contribution to eligible flights attendants upon retirement. During the twelve months ended December 31, 2020, the Company recorded a $23.5 million ratification bonus, of which $20.2 million was related to service prior to January 1, 2020, and was recorded as a Special item in the Consolidated Statements of Operations. The remaining $3.3 million was recorded as a component of Wages and benefits in the Consolidated Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)As discussed in Note 1, the Company recognized a goodwill impairment charge of $106.7 million during the twelve months ended December 31, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)As discussed in Note 1, the Company recognized an impairment of long-lived assets of $39.4 million during the twelve months ended December 31, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)During the third quarter of 2020, the Company announced and completed voluntary separation program offerings across each of its labor groups. In addition to separation payments, the Company offered its employees, based on labor group, age, and years of service, special termination benefits in the form of retiree healthcare benefits as discussed below. The election and revocation windows for these programs closed during the quarter. Additionally, the Company announced involuntary separations and temporary leave programs, the majority of which were effective October 1, 2020. Combined, the separation and temporary leave programs represented a reduction of approximately 32% of the

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

Company's workforce. The Company recorded $17.8 million during the twelve months ended December 31, 2020 related to the workforce reduction and separation programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)During the twelve months ended December 31, 2020, the Company recorded $5.7 million in special termination benefits and curtailment losses related to the Company's pension and other postretirement benefit plans in connection with its voluntary separation programs. See Note 13 for additional information.

**13. Employee Benefit Plans**

***Defined Benefit Plans***

Hawaiian sponsors a defined benefit pension plan covering the ALPA and prior to August 2017, sponsored the defined benefit pension plans for the International Association of Machinists and Aerospace Workers (AFL-CIO) (IAM) and other personnel (salaried, Transport Workers Union, Network Engineering Group). The plans for the IAM and other employees were frozen in September 1993. Effective January 1, 2008, benefit accruals for pilots under age 50 as of July 1, 2005 were frozen (with the exception of certain pilots who were both age 50 and older and participants of the plan on July 1, 2005) and Hawaiian began making contributions to an alternate defined contribution retirement program for its pilots. All of the pilots' accrued benefits under their defined benefit plan at the date of the freeze were preserved. In addition, Hawaiian sponsors four unfunded defined benefit postretirement medical and life insurance plans and a separate plan to administer the pilots' disability benefits.

In 2016, the Hawaiian Airlines, Inc. Pension Plan for Salaried Employees (Salaried Plan) was consolidated into the Hawaiian Airlines, Inc. Pension Plan for Employees Represented by the International Association of Machinists (IAM), which established a merged plan (the Merged Plan). At that time, the net liabilities of the Salaried Plan were transferred to the Merged Plan. In 2017, the Company completed the termination of the plan by transferring the assets and liabilities to a third-party insurance company. The Company no longer has any expected contributions to the Merged Plan due to the final settlement.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The following tables summarize changes to projected benefit obligations, plan assets, funded status and applicable amounts included in the Consolidated Balance Sheets:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2021** | **2021** |
| | **Pension** | **Other** | **Pension** | **Other** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| ***Change in projected benefit obligations*** |  |  |  |  |
| Benefit obligations, beginning of year | $(452625) | $(165729) | $(474750) | $(171480) |
| Service cost |  | (9568) |  | (11744) |
| Interest cost | (13101) | (5220) | (12216) | (4769) |
| Actuarial gains | 102544 | 42834 | 9738 | 16623 |
| Benefits paid | 25637 | 6728 | 24603 | 5641 |
| &nbsp;&nbsp;&nbsp;Less: federal subsidy on benefits paid | N/A |  | N/A |  |
| Plan amendments |  | (1750) |  |  |
| Benefit obligation at end of year (a) | $(337545) | $(132705) | $(452625) | $(165729) |
| ***Change in plan assets*** |  |  |  |  |
| Fair value of assets, beginning of year | $405366 | $44632 | $382846 | $38710 |
| Actual return on plan assets | (93701) | (6879) | 46297 | 3357 |
| Employer contribution |  | 4045 |  | 4008 |
| Benefits paid | (24813) | (1904) | (23777) | (1443) |
| Fair value of assets at end of year | $286852 | $39894 | $405366 | $44632 |
| Unfunded status at December 31 | $(50693) | $(92811) | $(47259) | $(121097) |
| ***Amounts recognized in the statement of financial position consist of:*** |  |  |  |  |
| Current benefit liability | $(789) | $(6941) | $(800) | $(6739) |
| Noncurrent benefit liability | (49904) | (85870) | (46459) | (114358) |
|  | $(50693) | $(92811) | $(47259) | $(121097) |
| ***Amounts recognized in accumulated other comprehensive loss*** |  |  |  |  |
| Unamortized actuarial loss (gain) | $106906 | $(49505) | $94537 | $(16161) |
| Prior service cost (credit) |  | 5002 |  | 3690 |
|  | $106906 | $(44503) | $94537 | $(12471) |

---

_______________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The accumulated pension benefit obligation as of December 31, 2022 and 2021 was $337.5 million and $452.6 million, respectively.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The following table sets forth the net periodic benefit cost:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
| | **Pension** | **Other** | **Pension** | **Other** | **Pension** | **Other** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| ***Components of Net Periodic Benefit Cost*** |  |  |  |  |  |  |
| Service cost | $— | $9568 | $— | $11744 | $12 | $10791 |
| Other cost: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest cost | 13101 | 5220 | 12216 | 4769 | 14639 | 5167 |
| &nbsp;&nbsp;&nbsp;Expected return on plan assets | (23809) | (2077) | (23327) | (1785) | (23418) | (1746) |
| &nbsp;&nbsp;&nbsp;Recognized net actuarial loss (gain) | 2596 | (533) | 4407 | (212) | 4091 | (43) |
| &nbsp;&nbsp;&nbsp;Prior service cost |  | 438 |  | 370 |  | 288 |
| Total other components of the net periodic benefit cost | $(8112) | $3048 | $(6704) | $3142 | $(4688) | $3666 |
| Special/contractual termination benefits |  |  |  |  |  | 5258 |
| Curtailment loss |  |  |  |  |  | 424 |
| Net periodic benefit cost | $(8112) | $12616 | $(6704) | $14886 | $(4676) | $20139 |
| ***Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss*** |  |  |  |  |  |  |
| Current year actuarial (gain) loss | $14966 | $(35051) | $(32709) | $(16989) | $8376 | $3409 |
| Current year prior service cost |  | 1750 |  |  |  | 3260 |
| Amortization of actuarial gain (loss) | (2596) | 533 | (4407) | 212 | (4091) | 43 |
| Amortization of prior service cost |  | (438) |  | (370) |  | (712) |
| Settlement and curtailment loss |  |  |  |  |  |  |
| Total recognized in other comprehensive loss | $12370 | $(33206) | $(37116) | $(17147) | $4285 | $6000 |
| Total recognized in net periodic benefit cost and other comprehensive loss | $4258 | $(20590) | $(43820) | $(2261) | $(391) | $26139 |

---

Service costs are recorded within Wages and benefits in the Consolidated Statements of Operations. Total other components of the net periodic benefit cost are recorded within the Nonoperating income (expense), other line item in the Consolidated Statements of Operations. During the twelve months ended December 31, 2022 and 2021, the Company was not required to and did not make cash contributions to its defined benefit and other post-retirement plans.

The weighted average actuarial assumptions used to determine the net periodic benefit expense and the projected benefit obligation were as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Pension** | **Pension** | **Pension** | | **Postretirement** | **Postretirement** | **Disability** | **Disability** | **Disability** | |
| | **2022** | | **2021** | | **2022** | **2021** | **2022** | | **2021** | |
| Discount rate to determine net periodic benefit expense | 2.98% |  | 2.63% |  | 3.02% | 2.62% | 3.03% |  | 2.67% |  |
| Discount rate to determine projected benefit obligation | 5.58% |  | 2.98% |  | 5.57% | 2.99% | 5.52% |  | 3.03% |  |
| Expected return on plan assets | 6.06% | <sup>\*\*</sup> | 6.29% |  | N/A | N/A | 4.35% | <sup>\*\*</sup> | 4.28% |  |
| Rate of compensation increase | Various | <sup>\*</sup> | Various | <sup>\*</sup> | N/A | N/A | Various | <sup>\*</sup> | Various | <sup>\*</sup> |
| Health care trend rate to determine net periodic benefit expense | N/A |  | N/A |  | 6.25% | 6.50% | N/A |  | N/A |  |
| &nbsp;&nbsp;&nbsp;Ultimate trend rate | N/A |  | N/A |  | 4.75% | 4.75% | N/A |  | N/A |  |
| &nbsp;&nbsp;&nbsp;Years to reach ultimate trend rate | N/A |  | N/A |  | 5 | 6 | N/A |  | N/A |  |
| Health care trend rate to determine projected benefit obligation | N/A |  | N/A |  | 6.75% | 6.25% | N/A |  | N/A |  |
| &nbsp;&nbsp;&nbsp;Ultimate trend rate | N/A |  | N/A |  | 4.75% | 4.75% | N/A |  | N/A |  |
| &nbsp;&nbsp;&nbsp;Years to reach ultimate trend rate | N/A |  | N/A |  | 8 | 6 | N/A |  | N/A |  |

---

_______________________________________________________________________________

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

\* Differs for each pilot based on current fleet and seat position on the aircraft and seniority service. Negotiated salary increases and expected changes in fleet and seat positions on the aircraft are included in the assumed rate of compensation increase, which ranged from 2.0% to 7.25% in both 2022 and 2021).

\*\* Expected return on plan assets used to determine the net periodic benefit expense for 2023 is 7.1% for Pension and 6.2% for Disability.

Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2023 are as follows:

---

| | | |
|:---|:---|:---|
| | **Pension** | **Other** |
| | **(in thousands)** | **(in thousands)** |
| Actuarial (gain) loss | $3975 | $(2345) |
| Amortization of prior service cost |  | 497 |
| To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss | $3975 | $(1848) |

---

***Plan Assets***

The Company develops the expected long-term rate of return assumption based on historical experience and by evaluating input from the trustee managing the plan's assets, including the trustee's review of asset class return expectations by several consultants and economists, as well as long-term inflation assumptions. The Company's expected long-term rate of return on plan assets is based on a target allocation of assets, which is based on the goal of earning the highest rate of return while maintaining risk at acceptable levels. The Retirement Plan for Pilots of Hawaiian Airlines, Inc. and the Pilot's Voluntary Employee Beneficiary Association Disability and Survivor's Benefit Plan (VEBA) strive to have assets sufficiently diversified so that adverse or unexpected results from any one security class will not have an unduly detrimental impact on the entire portfolio. Prior to termination, the Merged Plan targeted to have its assets align with the potential liability as of the expected settlement date. The actual allocation of the Company's pension and disability plan assets and the target allocation of assets by category at December 31, 2022 are as follows:

---

| | | |
|:---|:---|:---|
| | **Asset Allocation for Pilots pension and VEBA Plans** | **Asset Allocation for Pilots pension and VEBA Plans** |
| | **2022** | **Target** |
| Equity securities | 55% | 60% |
| Fixed income securities | 41% | 35% |
| Real estate investment trusts | 4% | 5% |
|  | 100% | 100% |

---

The table below presents the fair value of the Company's pension plan and other postretirement plan investments (excluding cash and receivables):

---

| | | |
|:---|:---|:---|
| | **Fair Value Measurements as of December 31,** | **Fair Value Measurements as of December 31,** |
| | **2022** | **2021** |
| | **(in thousands)** | **(in thousands)** |
| *Pension Plan Assets:* |  |  |
| Equity index funds | $158580 | $226291 |
| Fixed income funds | 113029 | 158334 |
| Real estate investment fund | 12844 | 18614 |
| Insurance company pooled separate account | 2399 | 2127 |
| &nbsp;&nbsp;&nbsp;Total | $286852 | $405366 |
| *Postretirement Assets:* |  |  |
| Common collective trust fund | $39716 | $44509 |
| Money market fund | 178 | 123 |
|  | $39894 | $44632 |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The fair value of each of the investments in the table above has been estimated using the net asset value per share, and in accordance with subtopic ASC 820-10, *Fair Value Measurement and Disclosures*, is not required to be presented in the fair value hierarchy.

*Equity index funds.* The investment objective of these funds is to obtain a reasonable rate of return while investing principally or entirely in foreign or domestic equity securities. There are currently no redemption restrictions on these investments.

*Fixed income funds.* The investment objective of these funds is to obtain a reasonable rate of return while principally investing in foreign and domestic bonds, mortgage-backed securities, and asset-backed securities. There are currently no redemption restrictions on these investments.

*Real estate investment fund.* The investment objective of this fund is to obtain a reasonable rate of return while principally investing in real estate investment trusts. There are currently no redemption restrictions on these investments.

*Insurance Company Pooled Separate Account.* The investment objective of the Insurance Company Pooled Separate Account is to invest in short-term cash equivalent securities to provide a high current income consistent with the preservation of principal and liquidity.

*Common collective trust (CCT).* The postretirement plan's CCT investment consists of a balanced profile fund and a conservative profile fund. These funds primarily invest in mutual funds and exchange-traded funds. The balanced profile fund is designed for participating trusts that seek substantial capital growth, place modest emphasis on short-term stability, have long-term investment objectives, and accept short-term volatility in the value of the fund's portfolio. The conservative profile fund is designed for participating trusts that place modest emphasis on capital growth, place moderate emphasis on short-term stability, have intermediate-to-long-term investment objectives, and accept moderate short-term volatility in the value of the fund's portfolio. There are currently no redemption restrictions on these investments.

Based on current legislation and assumptions, the Company does not expect to have a minimum contribution requirement for 2023 as sufficient funding balance exists to cover all funding requirements in 2023. The Company projects that Hawaiian's pension plans and other postretirement benefit plans will make the following benefit payments, which reflect expected future service, during the years ending December 31:

---

| | | | |
|:---|:---|:---|:---|
| | | **Other Benefits** | **Other Benefits** |
| | **Pension<br>Benefits** | **Gross** | **Expected<br>Federal Subsidy** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| 2023 | $26886 | $9388 | $— |
| 2024 | 27424 | 8935 |  |
| 2025 | 27668 | 8973 |  |
| 2026 | 27760 | 9701 |  |
| 2027 | 27718 | 9856 |  |
| 2028 - 2032 | 133029 | 54916 |  |
|  | $270485 | $101769 | $— |

---

***Defined Contribution Plans***

The Company also sponsors separate defined contribution plans for its pilots, flight attendants and ground personnel, and salaried personnel. Contributions to the Company's defined contribution plans were $57.0 million, $47.3 million and $43.6 million for the years ended December 31, 2022, 2021 and 2020, respectively.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**14. Amazon Agreement**

On October 20, 2022, Hawaiian and Amazon.com Services LLC (Customer), a wholly owned subsidiary of Amazon.com, Inc. (Amazon), entered into an Air Transportation Services Agreement (the ATSA) under which the Company will provide certain air cargo transportation services to the Customer for an initial term of eight years. Thereafter, the Customer may elect to extend the ATSA for two years and, at the end of such period, the parties may mutually agree to extend the term for three additional years.

The ATSA provides for the Company to initially operate ten A330-300F aircraft for air cargo transportation services, with the Customer having the right to enter into work orders for additional aircraft. The Company will supply flight crews, perform maintenance and certain administrative functions, and procure aircraft insurance. The Customer will pay the Company a fixed monthly fee per aircraft, a per flight hour fee, and a per flight cycle fee for each flight cycle operated. The Customer will also reimburse the Company for certain operating expenses, including fuel, certain maintenance, and insurance premiums. As part of the ATSA, the Company received $11.5 million toward start-up costs which has been recorded in Other liabilities in the Consolidated Balance Sheet. The deferred up-front payment will be amortized into revenue on a pro-rata basis over the term of the contract. Operations under the ATSA are expected to commence in the fourth quarter of 2023. During the year ended December 31, 2022, $0 was amortized into revenue on the Company's Consolidated Statements of Operations.

The Company and Amazon also entered into a Transaction Agreement, under which, the Company agreed to issue to Amazon.com NV Investment Holdings LLC, a wholly owned subsidiary of Amazon, a warrant (the Warrant) to acquire up to 9,442,443 shares (the Warrant Shares), of the Company's common stock, par value $0.01 per share, valued at approximately $82.5 million, which will be recognized as a reduction of revenue over the vesting period. At execution, 1,258,992 Warrant Shares, valued at $11.6 million, vested upon warrant issuance, and are recorded in Other assets in the Consolidated Balance Sheet. Future vesting is based on payments to be made by Amazon or its affiliates either under the ATSA or generally with respect to air cargo or air charters, excluding commercial passenger service, up to $1.8 billion in the aggregate. Subject to certain conditions, including vesting, the Warrant may be exercised, in whole or in part and for cash or on a net exercise basis, at any time before October 20, 2031. The exercise price with respect to the first 6,294,962 Warrant Shares that vest will be $14.71 per share (the First Tranche). The exercise price with respect to the remaining 3,147,481 Warrant Shares (Second Tranche) will be determined based on the 30-day volume-weighted average price of the Company's common stock as of the earlier of (i) October 20, 2025, or (ii) the date that the entire First Tranche is vested. The exercise prices and the Warrant Shares issuable are subject to customary antidilution adjustments.

The Company valued the First Tranche of warrant shares using the Monte Carlo Simulation model, based on the following assumptions; (i) exercise price of $14.71, (ii) risk-free interest rate of 4.28%, (iii) dividend yield of —%, (iv) expected life of 9.0 years, and (v) volatility of 54.0%. The Company valued the Second Tranche using a Monte Carlo Simulation model, using the above referenced assumptions, as well as an estimate for the weighted average price of Holding's common stock over the 30 trading days immediately preceding the earlier of (i) the 3-year anniversary of executing the Warrant Agreement or (ii) full vesting of the First Tranche.

**15. Capital Stock and Share-based Compensation**

***Common Stock***

The Company has one class of common stock issued and outstanding. Each share of common stock is entitled to one vote per share.

***Special Preferred Stock***

The IAM, AFA, and ALPA each hold one share of Special Preferred Stock, which entitles each union to nominate one director to the Company's Board of Directors. In addition, each series of the Special Preferred Stock, unless otherwise specified: (i) ranks senior to the Company's common stock and ranks *pari passu* with each other series of Special Preferred Stock with respect to liquidation, dissolution and winding up of the Company and will be entitled to receive $0.01 per share before any payments are made, or assets distributed to holders of any stock ranking junior to the Special Preferred Stock; (ii) has no dividend rights unless a dividend is declared and paid on the Company's common stock, in which case the Special Preferred Stock would be entitled to receive a dividend in an amount per share equal to two times the dividend per share paid on the common stock; (iii) is entitled to one vote per share of such series and votes with the common stock as a single class on all

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

matters submitted to holders of the Company's common stock; and (iv) automatically converts into the Company's common stock on a 1:1 basis, at such time as such shares are transferred or such holders are no longer entitled to nominate a representative to the Company's Board of Directors pursuant to their respective collective bargaining agreements.

***Dividends***

Pursuant to the Company's receipt of financial assistance under the federal government's Payroll Support Programs, the Company was restricted from making dividend payments until September 30, 2022. Prior to the suspension of dividend payments, the Company paid cash dividends of $5.5 million during the year ended December 31, 2020.

***Stock Repurchase Program***

In November 2018, the Company's Board of Directors approved the repurchase of up to $100 million of its outstanding common stock over a two-year period through December 2020. On March 18, 2020, the Company announced the suspension of its stock repurchase program and pursuant to its receipt of financial assistance under the federal government's Payroll Support Programs, it was restricted from making any stock repurchases until September 30, 2022.

The Company had no stock repurchase activity during the twelve months ended December 31, 2022 and 2021. Prior to the suspension of its stock repurchase program, the Company spent $7.5 million to repurchase approximately 0.3 million shares of the Company's common stock in open market transactions for the year ended December 31, 2020.

***At-the-Market Offering Program***

On December 1, 2020, the Company entered into the Equity Distribution Agreement with the Managers relating to the issuance and sale from time to time by the Company through the Managers, of up to 5,000,000 shares of the Company's common stock, par value $0.01 per share. Sales of the shares, if any, under the Equity Distribution Agreement may be made in any transactions that are deemed to be "at-the-market" offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Under the terms of the Equity Distribution Agreement, the Company will set the parameters for the sale of the shares, including the number of the shares to be issued, the time period during which sales are requested to be made, limitation on the number of the shares that may be sold in any one trading day and any minimum price below which sales may not be made. During the twelve months ended December 31, 2021, the Company sold 2.9 million shares pursuant to the Equity Distribution Agreement at an average price of $24.47 per share, with net proceeds totaling approximately $68.1 million. On March 5, 2021, the Company completed the sale of the 5.0 million shares authorized under the Equity Distribution Agreement at an average price of $22.46 per share, with total net proceeds of approximately $109.3 million.

***Share-Based Compensation***

Total share-based compensation expense recognized by the Company under ASC 718 was $7.9 million, $8.6 million and $4.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, $5.8 million of share-based compensation expense related to unvested RSU (inclusive of $0.5 million for RSU granted to non-employee directors) attributable to future performance and has not yet been recognized. The related expense will be recognized over a weighted average period of approximately 1.5 years.

*Performance and Market-Based RSU*

During 2022, the Company granted two types of performance-based RSUs covering 143,849 shares of common stock (the Target Award) with a maximum payout of 254,530 shares of common stock (the Maximum Award) to employees pursuant to the Company's 2015 Stock Incentive Plan. These awards vest over a three year period and were valued as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Awards with a market condition were valued using a binomial-lattice model (i.e. Monte Carlo simulation model). The Monte Carlo Simulation model required key assumptions: including the (a) expected volatility of the Company's common stock, (b) expected life of the RSU, (c) risk-free interest rate, and (d) dividend yield. The effect of market conditions is considered in determining the grant date fair value, which is not subsequently revised based on actual performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Awards with a performance condition were valued using grant date fair values equal to the Company's share price on the measurement date.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The Company valued the 2022 awards at $2.7 million, which will be recognized as stock-based compensation expense over the vesting period.

During 2021, the Company granted performance-based RSUs covering 141,473 shares of common stock (the Target Award) with a maximum payout of 212,210 shares of common stock (the Maximum Award) to employees pursuant to the Company's 2015 Stock Incentive Plan. These awards vest over a three-year period. The 2021 performance-based RSU include a market condition and were valued using a binomial-lattice model (i.e. Monte Carlo simulation model). The Monte Carlo Simulation model required key assumptions: including the (a) expected volatility of the Company's common stock, (b) expected life of the RSU, (c) risk-free interest rate, and (d) dividend yield. The Company valued the 2021 awards at $3.0 million, which will be recognized as stock-based compensation expense over the vesting period. The effect of market conditions is considered in determining the grant date fair value, which is not subsequently revised based on actual performance.

During 2020, the Company granted performance-based stock awards without a market condition, covering 204,589 shares of common stock (the Target Award) with a maximum payout of 406,916 shares of common stock (the Maximum Award) to employees pursuant to the Company's 2015 Stock Incentive Plan. These awards vest over a three-year period. The Company valued the performance-based stock awards using grant date fair values equal to the Company's share price on the measurement date.

The following table summarizes information about performance-based stock awards:

---

| | | |
|:---|:---|:---|
| | **Number of units** | **Weighted average grant date fair value** |
| Non-vested at January 1, 2020 | 301583 | $33.40 |
| &nbsp;&nbsp;&nbsp;Granted | 216369 | 25.71 |
| &nbsp;&nbsp;&nbsp;Vested | (61073) | 43.62 |
| &nbsp;&nbsp;&nbsp;Forfeited | (14926) | 33.00 |
| Non-vested at December 31, 2020 | 441953 | $30.98 |
| &nbsp;&nbsp;&nbsp;Granted | 141473 | 21.52 |
| &nbsp;&nbsp;&nbsp;Vested | (67695) | 37.20 |
| &nbsp;&nbsp;&nbsp;Forfeited | (70108) | 39.09 |
| Non-vested at December 31, 2021 | 445623 | $25.76 |
| &nbsp;&nbsp;&nbsp;Granted | 143849 | 18.51 |
| &nbsp;&nbsp;&nbsp;Vested | (101125) | 23.82 |
| &nbsp;&nbsp;&nbsp;Forfeited | (73318) | 31.03 |
| Non-vested at December 31, 2022 | 415029 | $22.78 |

---

The fair value of performance-based RSUs vested in the years ended December 31, 2022, 2021 and 2020 was $2.4 million, $1.9 million and $1.7 million, respectively.

*Service-Based RSU*

During 2022, the Company awarded 274,832 service-based RSUs to employees and non-employee directors, pursuant to the Company's 2015 Stock Incentive Plan. These stock awards vest over one, two, or three year periods and have a grant date fair value equal to the Company's share price on the measurement date.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

The following table summarizes information about outstanding service-based RSUs:

---

| | | |
|:---|:---|:---|
| | **Number of units** | **Weighted average grant date fair value** |
| Non-vested at January 1, 2020 | 233282 | $31.80 |
| &nbsp;&nbsp;&nbsp;Granted | 353538 | 19.71 |
| &nbsp;&nbsp;&nbsp;Vested | (129297) | 29.20 |
| &nbsp;&nbsp;&nbsp;Forfeited | (9692) | 27.18 |
| Non-vested at December 31, 2020 | 447831 | $23.09 |
| &nbsp;&nbsp;&nbsp;Granted | 270282 | 21.65 |
| &nbsp;&nbsp;&nbsp;Vested | (248432) | 21.75 |
| &nbsp;&nbsp;&nbsp;Forfeited | (12313) | 20.12 |
| Non-vested at December 31, 2021 | 457368 | $23.09 |
| &nbsp;&nbsp;&nbsp;Granted | 274832 | 18.15 |
| &nbsp;&nbsp;&nbsp;Vested | (251024) | 24.03 |
| &nbsp;&nbsp;&nbsp;Forfeited | (11002) | 22.12 |
| Non-vested at December 31, 2022 | 470174 | $19.74 |

---

The fair value of service-based RSUs vested in 2022, 2021, and 2020 was $6.0 million, $5.4 million and $2.8 million, respectively.

**16. Commitments and Contingent Liabilities**

***Commitments***

The Company has commitments with a third-party to provide aircraft maintenance services which include fixed payments as well as variable payments based on flight hours for the Company's Airbus fleet through 2027. The Company also has commitments with third-party service providers for reservations, IT, and accounting services through 2033. Committed capital and other expenditures include escalation and variable amounts based on estimated forecasts.

The gross committed expenditures for upcoming aircraft deliveries and other commitments for the next five years and thereafter are detailed below:

---

| | | | |
|:---|:---|:---|:---|
| | **Aircraft and aircraft related** | **Other** | **Total Committed<br>Expenditures** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| 2023 | $290808 | $26728 | $317536 |
| 2024 | 482099 | 22556 | 504655 |
| 2025 | 493090 | 12657 | 505747 |
| 2026 | 396103 | 8159 | 404262 |
| 2027 | 230126 | 6036 | 236162 |
| Thereafter |  | 15564 | 15564 |
|  | $1892226 | $91700 | $1983926 |

---

As of December 31, 2022, the Company had the following capital commitments consisting of firm aircraft and engine orders and purchase rights:

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

---

| | | | |
|:---|:---|:---|:---|
| **<u>Aircraft Type</u>** | **Firm<br>Orders** | **Purchase<br>Rights** | **Expected Delivery Dates** |
| A321neo aircraft |  | 9 | N/A |
| B787-9 aircraft | 12 | 8 | Between 2023 and 2027 |
| General Electric GEnx spare engines: |  |  |  |
| &nbsp;&nbsp;&nbsp;B787-9 spare engines | 3 | 1 | Between 2023 and 2027 |

---

*Boeing 787-9 Purchase Agreement*

In July 2018, the Company entered into a purchase agreement for the purchase of 10 Boeing 787-9 "Dreamliner" aircraft with purchase rights for an additional 10 aircraft. In October 2018, the Company entered into a definitive agreement for the selection of GEnx engines to power its Boeing 787-9 fleet. The agreement provides for the purchase of 20 GEnx engines, the right to purchase an additional 20 GEnx engines and the purchase of up to four spare engines.

In December 2022, the Company entered into a supplemental agreement to its B787-9 purchase agreement, pursuant to which (a) the Company agreed with Boeing to defer the delivery of the B787-9 aircraft, which will now be delivered between the fourth quarter of 2023 and 2027, and (b) agreed to exercise purchase options for an additional two B787-9 aircraft. The committed expenditures under the amended purchase agreement is reflected in the table above.

In order to complete the purchase of these aircraft and fund related costs, the Company may need to secure acceptable financing. The Company has backstop financing available from aircraft and engine manufacturers, subject to certain customary conditions. Financing may be necessary to satisfy the Company's capital commitments for firm order aircraft and other related capital expenditures. The Company can provide no assurance that any financing not already in place for aircraft and spare engine deliveries will be available to us on acceptable terms when necessary or at all.

***Litigation and Contingencies***

The Company is subject to legal proceedings arising in the normal course of its operations. Management does not anticipate that the disposition of any currently pending proceeding will have a material effect on the Company's operations, business or financial condition.

***General Guarantees and Indemnifications***

In the normal course of business, the Company enters into numerous aircraft financing and real estate leasing arrangements that have various guarantees included in such contracts. It is common in such lease transactions for the lessee to agree to indemnify the lessor and other related third-parties for tort liabilities that arise out of, or relate to, the lessee's use of the leased aircraft or occupancy of the leased premises. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by such parties' gross negligence or willful misconduct. Additionally, the lessee typically indemnifies such parties for any environmental liability that arises out of or relates to the lessee's use of the real estate leased premises. The Company believes that it is insured (subject to deductibles) for most of the tort liabilities and related indemnities described above with respect to the aircraft and real estate that it leases. The Company cannot reasonably estimate the potential amount of future payments, if any, under the foregoing indemnities and agreements.

***Credit Card Holdback***

Under the Company's bank-issued credit card processing agreements, certain proceeds from advance ticket sales may be held back to serve as collateral to cover any possible chargebacks or other disputed charges that may occur. As of December 31, 2022 and 2021, there were no holdbacks held with the Company's credit card processors.

In the event of a material adverse change in the Company's business, the credit card processor could increase holdbacks to up to 100% of the amount of outstanding credit card tickets that are unflown (e.g., Air traffic liability, excluding frequent flyer deferred revenue), which would result in a restriction of cash. If the Company were unable to obtain a waiver of, or otherwise mitigate the increase in the restriction of cash, it could have a material impact on the Company's operations, business or financial condition.

***Labor Negotiations***

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

As of December 31, 2022, approximately 81.3% of employees were represented by unions.

In February 2022, the Company's International Association of Machinists and Aerospace Workers (IAM-M) and International Association of Machinists and Aerospace Workers - Clerical Division (IAM-C) employees ratified a new collective bargaining agreement (CBA), which included scheduled pay rate increases, a signing bonus valued at approximately $2.1 million, improved health benefits and cost sharing, as well as the establishment of Health Retirement Accounts (HRAs) for retirees. During the second quarter, the Company recorded approximately $2.6 million in one-time CBA related expenses associated with a voluntary separation program and establishment of the HRA plan.

In April 2022, flight dispatch personnel represented by the Transport Workers Union (TWU), ratified a new CBA. The terms of the new CBA were consistent with those of the IAM discussed above; however, the impact of the TWU CBA was not material to the Company's financial statements.

Additionally, the CBA for employees represented by the Air Line Pilots Association (ALPA), which represents 14.2% of employees, became amendable on July 1, 2022. In February 2023, the Company and employees represented by ALPA voted to ratify a new four year CBA, which includes, amongst other things, a signing bonus, pay scale increases across all fleet types, improved health benefits and cost sharing, and enhancements to the Company's postretirement and disability plans.

**17. Supplemental Cash Flow Information**

Supplemental disclosures of cash flow information and non-cash investing and financing activities were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Cash payments for interest (net of amounts capitalized) | $85370 | $91927 | $23951 |
| Cash payments (refunds) for income taxes | 1233 | (23123) | (81372) |
| Investing and Financing Activities Not Affecting Cash: |  |  |  |
| Property and equipment acquired through a finance lease |  | 8121 | 939 |
| Right-of-use assets acquired under operating leases | 2625 |  | 75667 |

---

**18. Condensed Consolidating Financial Information**

The following condensed consolidating financial information is presented in accordance with Regulation S-X paragraph 210.3-10 because, in connection with the issuance by two pass-through trusts formed by Hawaiian (which is also referred to in this Note 18 as Subsidiary Issuer / Guarantor) of pass-through certificates, as discussed in Note 8, the Company (which is also referred to in this Note 18 as Parent Issuer / Guarantor), is fully and unconditionally guaranteeing the payment obligations of Hawaiian, which is a 100% owned subsidiary of Holdings, under equipment notes to be issued by Hawaiian to purchase new aircraft.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

Condensed consolidating financial statements are presented in the following tables:

**Condensed Consolidating Statements of Operations and Comprehensive Loss** 

**Year Ended December 31, 2022** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Parent Issuer /<br>Guarantor** | **Subsidiary Issuer / Guarantor** | **Non-Guarantor<br>Subsidiaries** | **Eliminations** | **Consolidated** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Operating Revenue** | $— | $2637422 | $45924 | $(42079) | $2641267 |
| **Operating Expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Aircraft fuel, including taxes and delivery |  | 817077 |  |  | 817077 |
| &nbsp;&nbsp;&nbsp;Wages and benefits |  | 833137 |  |  | 833137 |
| &nbsp;&nbsp;&nbsp;Aircraft rent |  | 103846 |  |  | 103846 |
| &nbsp;&nbsp;&nbsp;Maintenance materials and repairs |  | 235749 | 404 |  | 236153 |
| &nbsp;&nbsp;&nbsp;Aircraft and passenger servicing |  | 152550 |  |  | 152550 |
| &nbsp;&nbsp;&nbsp;Commissions and other selling | 18 | 113469 | 852 | (496) | 113843 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 136169 |  |  | 136169 |
| &nbsp;&nbsp;&nbsp;Other rentals and landing fees |  | 147259 |  | (116) | 147143 |
| &nbsp;&nbsp;&nbsp;Purchased services | 224 | 127873 | 1517 | (264) | 129350 |
| &nbsp;&nbsp;&nbsp;Special items |  | 12500 | 6303 |  | 18803 |
| &nbsp;&nbsp;&nbsp;Other | 6821 | 198610 | (978) | (41203) | 163250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 7063 | 2878239 | 8098 | (42079) | 2851321 |
| **Operating Income (Loss)** | (7063) | (240817) | 37826 |  | (210054) |
| **Nonoperating Income (Expense):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Undistributed net loss of subsidiaries | (233288) | (31357) |  | 264645 |  |
| &nbsp;&nbsp;&nbsp;Interest expense and amortization of debt discounts and issuance costs |  | (24924) | (73891) | 3000 | (95815) |
| &nbsp;&nbsp;&nbsp;Interest income | 320 | 31219 | 3602 | (3000) | 32141 |
| &nbsp;&nbsp;&nbsp;Capitalized interest |  | 4244 |  |  | 4244 |
| &nbsp;&nbsp;&nbsp;Other components of net periodic benefit cost |  | 5065 |  |  | 5065 |
| &nbsp;&nbsp;&nbsp;Losses on fuel derivatives |  | (3041) |  |  | (3041) |
| &nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | (8568) |  |  | (8568) |
| &nbsp;&nbsp;&nbsp;Losses on investments, net |  | (43082) |  |  | (43082) |
| &nbsp;&nbsp;&nbsp;Gains on foreign debt |  | 26667 |  |  | 26667 |
| &nbsp;&nbsp;&nbsp;Other, net | (50) | (1356) |  |  | (1406) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | (233018) | (45133) | (70289) | 264645 | (83795) |
| **Loss Before Income Taxes** | (240081) | (285950) | (32463) | 264645 | (293849) |
| Income tax benefit |  | (53768) |  |  | (53768) |
| **Net Loss** | $(240081) | $(232182) | $(32463) | $264645 | $(240081) |
| **Comprehensive Loss** | $(253409) | $(245510) | $(32463) | $277973 | $(253409) |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**Condensed Consolidating Statements of Operations and Comprehensive Loss**

**Year Ended December 31, 2021**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Parent Issuer /<br>Guarantor** | **Subsidiary Issuer / Guarantor** | **Non-Guarantor<br>Subsidiaries** | **Eliminations** | **Consolidated** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Operating Revenue** | $— | $1593058 | $34850 | $(31324) | $1596584 |
| **Operating Expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Aircraft fuel, including taxes and delivery |  | 363003 |  |  | 363003 |
| &nbsp;&nbsp;&nbsp;Wages and benefits |  | 698101 |  |  | 698101 |
| &nbsp;&nbsp;&nbsp;Aircraft rent |  | 109476 |  |  | 109476 |
| &nbsp;&nbsp;&nbsp;Maintenance materials and repairs |  | 169977 | 71 |  | 170048 |
| &nbsp;&nbsp;&nbsp;Aircraft and passenger servicing |  | 105675 |  |  | 105675 |
| &nbsp;&nbsp;&nbsp;Commissions and other selling | 8 | 71171 | 1533 | (200) | 72512 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 136752 | 1547 |  | 138299 |
| &nbsp;&nbsp;&nbsp;Other rentals and landing fees |  | 116893 |  | (121) | 116772 |
| &nbsp;&nbsp;&nbsp;Purchased services | 2033 | 103749 | 2053 | (4622) | 103213 |
| &nbsp;&nbsp;&nbsp;Special items |  | 4648 | 4335 |  | 8983 |
| &nbsp;&nbsp;&nbsp;Government grant recognition |  | (320645) |  |  | (320645) |
| &nbsp;&nbsp;&nbsp;Other | 6289 | 131842 | 1961 | (26381) | 113711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 8330 | 1690642 | 11500 | (31324) | 1679148 |
| **Operating Income (Loss)** | (8330) | (97584) | 23350 |  | (82564) |
| **Nonoperating Income (Expense):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Undistributed net loss of subsidiaries | (136478) | (39344) |  | 175822 |  |
| &nbsp;&nbsp;&nbsp;Interest expense and amortization of debt discounts and issuance costs |  | (46329) | (66815) | 2713 | (110431) |
| &nbsp;&nbsp;&nbsp;Interest income | 35 | 8555 | 2726 | (2713) | 8603 |
| &nbsp;&nbsp;&nbsp;Capitalized interest |  | 3357 |  |  | 3357 |
| &nbsp;&nbsp;&nbsp;Other components of net periodic benefit cost |  | 3566 |  |  | 3566 |
| &nbsp;&nbsp;&nbsp;Gains on fuel derivatives |  | 217 |  |  | 217 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | (38889) |  |  | (38889) |
| &nbsp;&nbsp;&nbsp;Gains on investments, net |  | 1426 |  |  | 1426 |
| &nbsp;&nbsp;&nbsp;Gains on foreign debt |  | 27773 |  |  | 27773 |
| &nbsp;&nbsp;&nbsp;Other, net |  | 1619 |  |  | 1619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | (136443) | (78049) | (64089) | 175822 | (102759) |
| **Loss Before Income Taxes** | (144773) | (175633) | (40739) | 175822 | (185323) |
| Income tax benefit |  | (40550) |  |  | (40550) |
| **Net Loss** | $(144773) | $(135083) | $(40739) | $175822 | $(144773) |
| **Comprehensive Loss** | $(112084) | $(102394) | $(40739) | $143133 | $(112084) |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**Condensed Consolidating Statements of Operations and Comprehensive Loss** 

**Year Ended December 31, 2020** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Parent Issuer /<br>Guarantor** | **Subsidiary Issuer / Guarantor** | **Non-Guarantor<br>Subsidiaries** | **Eliminations** | **Consolidated** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Operating Revenue** | $— | $843197 | $14268 | $(12652) | $844813 |
| **Operating Expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Aircraft fuel, including taxes and delivery |  | 161363 |  |  | 161363 |
| &nbsp;&nbsp;&nbsp;Wages and benefits |  | 628558 |  |  | 628558 |
| &nbsp;&nbsp;&nbsp;Aircraft rent |  | 103898 | (8) |  | 103890 |
| &nbsp;&nbsp;&nbsp;Maintenance materials and repairs |  | 117210 | 5638 | (1277) | 121571 |
| &nbsp;&nbsp;&nbsp;Aircraft and passenger servicing |  | 58016 |  |  | 58016 |
| &nbsp;&nbsp;&nbsp;Commissions and other selling | (6) | 46262 | 97 | (56) | 46297 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 145712 | 5953 |  | 151665 |
| &nbsp;&nbsp;&nbsp;Other rentals and landing fees |  | 73894 | 27 | (113) | 73808 |
| &nbsp;&nbsp;&nbsp;Purchased services | 1361 | 107776 | 1102 | (11189) | 99050 |
| &nbsp;&nbsp;&nbsp;Special items |  | 148355 | 35756 |  | 184111 |
| &nbsp;&nbsp;&nbsp;Government grant recognition |  | (240648) |  |  | (240648) |
| &nbsp;&nbsp;&nbsp;Other | 6007 | 96844 | 1909 | (17) | 104743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 7362 | 1447240 | 50474 | (12652) | 1492424 |
| **Operating Loss** | (7362) | (604043) | (36206) |  | (647611) |
| **Nonoperating Income (Expense):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Undistributed net loss of subsidiaries | (505131) |  |  | 505131 |  |
| &nbsp;&nbsp;&nbsp;Other nonoperating special items |  | (5682) |  |  | (5682) |
| &nbsp;&nbsp;&nbsp;Interest expense and amortization of debt discounts and issuance costs |  | (40439) |  |  | (40439) |
| &nbsp;&nbsp;&nbsp;Interest income | 15 | 8716 |  |  | 8731 |
| &nbsp;&nbsp;&nbsp;Capitalized interest |  | 3236 |  |  | 3236 |
| &nbsp;&nbsp;&nbsp;Other components of net periodic benefit cost |  | 1300 |  |  | 1300 |
| &nbsp;&nbsp;&nbsp;Losses on fuel derivatives |  | (6930) |  |  | (6930) |
| &nbsp;&nbsp;&nbsp;Gains on investments, net |  | 271 |  |  | 271 |
| &nbsp;&nbsp;&nbsp;Losses on foreign debt |  | (14913) |  |  | (14913) |
| &nbsp;&nbsp;&nbsp;Other, net |  | 1990 | (5) |  | 1985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | (505116) | (52451) | (5) | 505131 | (52441) |
| **Loss Before Income Taxes** | (512478) | (656494) | (36211) | 505131 | (700052) |
| Income tax benefit | (1543) | (179970) | (7604) |  | (189117) |
| **Net Loss** | $(510935) | $(476524) | $(28607) | $505131 | $(510935) |
| **Comprehensive Loss** | $(521579) | $(487168) | $(28607) | $515775 | $(521579) |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**Condensed Consolidating Balance Sheets**

**December 31, 2022**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Parent Issuer /<br>Guarantor** | **Subsidiary Issuer / Guarantor** | **Non-Guarantor<br>Subsidiaries** | **Eliminations** | **Consolidated** |
| **ASSETS** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Current assets:** | | | | | |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $28620 | $151357 | $49145 | $— | $229122 |
| &nbsp;&nbsp;&nbsp;Restricted cash |  |  | 17498 |  | 17498 |
| &nbsp;&nbsp;&nbsp;Short-term investments |  | 1147193 |  |  | 1147193 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net |  | 106321 | 25785 | (18244) | 113862 |
| &nbsp;&nbsp;&nbsp;Income taxes receivable |  | 70204 |  |  | 70204 |
| &nbsp;&nbsp;&nbsp;Spare parts and supplies, net |  | 36875 |  |  | 36875 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other |  | 63524 | 29 |  | 63553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 28620 | 1575474 | 92457 | (18244) | 1678307 |
| Property and equipment at cost |  | 3009614 |  |  | 3009614 |
| &nbsp;&nbsp;&nbsp;Less accumulated depreciation and amortization |  | (1135262) |  |  | (1135262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net |  | 1874352 |  |  | 1874352 |
| &nbsp;&nbsp;&nbsp;Assets held for sale |  | 293 | 13726 |  | 14019 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets |  | 459128 |  |  | 459128 |
| &nbsp;&nbsp;&nbsp;Long-term prepayments and other |  | 99801 | 1200516 | (1200000) | 100317 |
| &nbsp;&nbsp;&nbsp;Goodwill and other intangible assets, net |  |  | 13500 |  | 13500 |
| &nbsp;&nbsp;&nbsp;Intercompany receivable |  | 609207 |  | (609207) |  |
| &nbsp;&nbsp;&nbsp;Investment in consolidated subsidiaries | 767831 | (57699) | 502 | (710634) |  |
| **TOTAL ASSETS** | $796451 | $4560556 | $1320701 | $(2538085) | $4139623 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |  |  |
| **Current liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $630 | $207294 | $617 | $(12532) | $196009 |
| &nbsp;&nbsp;&nbsp;Air traffic liability and current frequent flyer deferred revenue |  | 579872 | 10924 |  | 590796 |
| &nbsp;&nbsp;&nbsp;Other accrued liabilities |  | 172190 | 15558 | (5712) | 182036 |
| &nbsp;&nbsp;&nbsp;Current maturities of long-term debt, less discount |  | 47836 |  |  | 47836 |
| &nbsp;&nbsp;&nbsp;Current maturities of finance lease obligations |  | 25789 |  |  | 25789 |
| &nbsp;&nbsp;&nbsp;Current maturities of operating leases |  | 77858 |  |  | 77858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 630 | 1110839 | 27099 | (18244) | 1120324 |
| Long-term debt |  | 1599330 | 1184559 | (1200000) | 1583889 |
| &nbsp;&nbsp;&nbsp;Intercompany payable | 462556 |  | 146651 | (609207) |  |
| **Other liabilities and deferred credits:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noncurrent finance lease obligations |  | 75221 |  |  | 75221 |
| &nbsp;&nbsp;&nbsp;Noncurrent operating leases |  | 347726 |  |  | 347726 |
| &nbsp;&nbsp;&nbsp;Accumulated pension and other postretirement benefit obligations. |  | 135775 |  |  | 135775 |
| &nbsp;&nbsp;&nbsp;Other liabilities and deferred credits |  | 94481 | 173 |  | 94654 |
| &nbsp;&nbsp;&nbsp;Noncurrent frequent flyer deferred revenue |  | 318369 |  |  | 318369 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities, net |  | 130400 |  |  | 130400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | 1101972 | 173 |  | 1102145 |
| Shareholders' equity | 333265 | 748415 | (37781) | (710634) | 333265 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $796451 | $4560556 | $1320701 | $(2538085) | $4139623 |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**Condensed Consolidating Balance Sheets**

**December 31, 2021** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Parent Issuer /<br>Guarantor** | **Subsidiary Issuer / Guarantor** | **Non-Guarantor<br>Subsidiaries** | **Eliminations** | **Consolidated** |
| **ASSETS** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Current assets:** | | | | | |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $20803 | $434615 | $35143 | $— | $490561 |
| &nbsp;&nbsp;&nbsp;Restricted cash |  |  | 17267 |  | 17267 |
| &nbsp;&nbsp;&nbsp;Short-term investments |  | 1241752 |  |  | 1241752 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net |  | 85109 | 21348 | (13569) | 92888 |
| &nbsp;&nbsp;&nbsp;Income taxes receivable |  | 71201 |  |  | 71201 |
| &nbsp;&nbsp;&nbsp;Spare parts and supplies, net |  | 34109 |  |  | 34109 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other | 21 | 66084 | 22 |  | 66127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 20824 | 1932870 | 73780 | (13569) | 2013905 |
| Property and equipment at cost |  | 2957589 |  |  | 2957589 |
| &nbsp;&nbsp;&nbsp;Less accumulated depreciation and amortization |  | (999966) |  |  | (999966) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net |  | 1957623 |  |  | 1957623 |
| &nbsp;&nbsp;&nbsp;Assets held for sale |  | 926 | 28523 |  | 29449 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets |  | 536154 |  |  | 536154 |
| &nbsp;&nbsp;&nbsp;Long-term prepayments and other | 50 | 79953 | 1200486 | (1200000) | 80489 |
| &nbsp;&nbsp;&nbsp;Goodwill and other intangible assets, net |  |  | 13500 |  | 13500 |
| &nbsp;&nbsp;&nbsp;Intercompany receivable |  | 571096 |  | (571096) |  |
| &nbsp;&nbsp;&nbsp;Investment in consolidated subsidiaries | 1007650 | (26344) | 503 | (981809) |  |
| **TOTAL ASSETS** | $1028524 | $5052278 | $1316792 | $(2766474) | $4631120 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |  |  |
| **Current liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $422 | $122437 | $2398 | $(10857) | $114400 |
| &nbsp;&nbsp;&nbsp;Air traffic liability and current frequent flyer deferred revenue |  | 617685 | 13472 |  | 631157 |
| &nbsp;&nbsp;&nbsp;Other accrued liabilities |  | 153423 | 14339 | (2712) | 165050 |
| &nbsp;&nbsp;&nbsp;Current maturities of long-term debt, less discount |  | 97096 |  |  | 97096 |
| &nbsp;&nbsp;&nbsp;Current maturities of finance lease obligations |  | 24149 |  |  | 24149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current maturities of operating leases |  | 79158 |  |  | 79158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 422 | 1093948 | 30209 | (13569) | 1111010 |
| Long-term debt |  | 1724631 | 1179667 | (1200000) | 1704298 |
| &nbsp;&nbsp;&nbsp;Intercompany payable | 459016 |  | 112080 | (571096) |  |
| **Other liabilities and deferred credits:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noncurrent finance lease obligations |  | 100995 |  |  | 100995 |
| &nbsp;&nbsp;&nbsp;Noncurrent operating leases |  | 423293 |  |  | 423293 |
| &nbsp;&nbsp;&nbsp;Accumulated pension and other postretirement benefit obligations |  | 160817 |  |  | 160817 |
| &nbsp;&nbsp;&nbsp;Other liabilities and deferred credits |  | 78188 | 152 |  | 78340 |
| &nbsp;&nbsp;&nbsp;Noncurrent frequent flyer deferred revenue |  | 296484 |  |  | 296484 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities, net |  | 186797 |  |  | 186797 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | 1246574 | 152 |  | 1246726 |
| Shareholders' equity | 569086 | 987125 | (5316) | (981809) | 569086 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $1028524 | $5052278 | $1316792 | $(2766474) | $4631120 |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**Condensed Consolidating Statements of Cash Flows**

**Year Ended December 31, 2022**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Parent Issuer /<br>Guarantor** | **Subsidiary Issuer / Guarantor** | **Non-Guarantor<br>Subsidiaries** | **Eliminations** | **Consolidated** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Net Cash Used In Operating Activities:** | $(5401) | $(20253) | $(32098) | $— | $(57752) |
| **Cash Flows From Investing Activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net payments to affiliates |  | (47553) | 34335 | 13218 |  |
| &nbsp;&nbsp;&nbsp;Additions to property and equipment, including pre-delivery deposits |  | (47532) |  |  | (47532) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposition of property and equipment |  | 186 | 11996 |  | 12182 |
| &nbsp;&nbsp;&nbsp;Purchases of investments |  | (859833) |  |  | (859833) |
| &nbsp;&nbsp;&nbsp;Sales of investments |  | 880161 |  |  | 880161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities |  | (74571) | 46331 | 13218 | (15022) |
| **Cash Flows From Financing Activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the issuance of common stock | 13218 |  |  | (13218) |  |
| &nbsp;&nbsp;&nbsp;Repayments of long-term debt and finance lease obligations |  | (184306) |  |  | (184306) |
| &nbsp;&nbsp;&nbsp;Debt issuance costs |  | (2236) |  |  | (2236) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other |  | (1892) |  |  | (1892) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 13218 | (188434) |  | (13218) | (188434) |
| **Net increase (decrease) in cash and cash equivalents** | 7817 | (283258) | 14233 |  | (261208) |
| **Cash and cash equivalents—Beginning of Period** | 20803 | 434615 | 52410 |  | 507828 |
| **Cash and cash equivalents—End of Period** | $28620 | $151357 | $66643 | $— | $246620 |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**Condensed Consolidating Statements of Cash Flows**

**Year Ended December 31, 2021**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Parent Issuer /<br>Guarantor** | **Subsidiary Issuer / Guarantor** | **Non-Guarantor<br>Subsidiaries** | **Eliminations** | **Consolidated** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Net Cash Provided By (Used In) Operating Activities:** | $(7489) | $277635 | $(18808) | $— | $251338 |
| **Cash Flows From Investing Activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net payments to affiliates | 2725 | 1179100 | (1110610) | (71215) |  |
| &nbsp;&nbsp;&nbsp;Additions to property and equipment, including pre-delivery deposits |  | (38812) | (452) |  | (39264) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposition of property and equipment |  | 228 | 527 |  | 755 |
| &nbsp;&nbsp;&nbsp;Purchases of investments |  | (1856035) |  |  | (1856035) |
| &nbsp;&nbsp;&nbsp;Sales of investments |  | 958242 |  |  | 958242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | 2725 | 242723 | (1110535) | (71215) | (936302) |
| **Cash Flows From Financing Activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the issuance of common stock | 68132 |  |  |  | 68132 |
| &nbsp;&nbsp;&nbsp;Long-term borrowings |  | 51705 | 1200000 |  | 1251705 |
| &nbsp;&nbsp;&nbsp;Repayments of long-term debt and finance lease obligations |  | (611725) |  |  | (611725) |
| &nbsp;&nbsp;&nbsp;Debt issuance costs |  | (112) | (24664) |  | (24776) |
| &nbsp;&nbsp;&nbsp;Net payments from affiliates | (68490) |  | (2725) | 71215 |  |
| &nbsp;&nbsp;Other | 1837 | (2020) |  |  | (183) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 1479 | (562152) | 1172611 | 71215 | 683153 |
| **Net increase (decrease) in cash and cash equivalents** | (3285) | (41794) | 43268 |  | (1811) |
| **Cash, cash equivalents, and restricted cash—Beginning of Period** | 24088 | 476409 | 9142 |  | 509639 |
| **Cash and cash equivalents—End of Period** | $20803 | $434615 | $52410 | $— | $507828 |

---

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Hawaiian Holdings, Inc.**

**Notes to Consolidated Financial Statements (Continued)**

**Condensed Consolidating Statements of Cash Flows**

**Year Ended December 31, 2020**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Parent Issuer /<br>Guarantor** | **Subsidiary Issuer / Guarantor** | **Non-Guarantor<br>Subsidiaries** | **Eliminations** | **Consolidated** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Net Cash Provided By (Used In) Operating Activities:** | $2722 | $(315245) | $1815 | $— | $(310708) |
| **Cash Flows From Investing Activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net payments to affiliates | (5900) | 3696 | (766) | 2970 |  |
| &nbsp;&nbsp;&nbsp;Additions to property and equipment, including pre-delivery deposits |  | (98611) | (6702) |  | (105313) |
| &nbsp;&nbsp;&nbsp;Proceeds from purchase assignment and leaseback transactions |  | 114000 |  |  | 114000 |
| &nbsp;&nbsp;&nbsp;Purchases of investments |  | (395793) |  |  | (395793) |
| &nbsp;&nbsp;&nbsp;Sales of investments |  | 288336 |  |  | 288336 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | (5900) | (88372) | (7468) | 2970 | (98770) |
| **Cash Flows From Financing Activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the issuance of common stock | 41196 |  |  |  | 41196 |
| &nbsp;&nbsp;&nbsp;Long-term borrowings |  | 602264 |  |  | 602264 |
| &nbsp;&nbsp;&nbsp;Repayments of long-term debt and finance lease obligations |  | (78824) |  |  | (78824) |
| &nbsp;&nbsp;&nbsp;Dividend payments | (5514) |  |  |  | (5514) |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock | (7510) |  |  |  | (7510) |
| &nbsp;&nbsp;&nbsp;Debt issuance costs |  | (4975) |  |  | (4975) |
| &nbsp;&nbsp;&nbsp;Net payments from affiliates | (2930) |  | 5900 | (2970) |  |
| &nbsp;&nbsp;&nbsp;Other | 796 | (1372) |  |  | (576) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 26038 | 517093 | 5900 | (2970) | 546061 |
| **Net increase in cash and cash equivalents** | 22860 | 113476 | 247 |  | 136583 |
| **Cash, cash equivalents, and restricted cash—Beginning of Period** | 1228 | 362933 | 8895 |  | 373056 |
| **Cash, cash equivalents, and restricted cash—End of Period** | $24088 | $476409 | $9142 | $— | $509639 |

---

***Income Taxes***

The income tax expense (benefit) is presented as if each entity that is part of the consolidated group files a separate return.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**ITEM 9.&nbsp;&nbsp;&nbsp;&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.**

None.

**ITEM 9A.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES.**

***Management's Evaluation of Disclosure Controls and Procedures***

Our management, including our principal executive officer and principal financial officer, evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation, our management, including our principal executive officer and principal financial officer, concluded that our disclosure controls and procedures were effective as of December 31, 2022, and provide reasonable assurance that the information required to be disclosed by the Company in reports it files under the Securities Exchange Act of 1934, as amended (the Exchange Act), is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

***Management's Report on Internal Control over Financial Reporting***

Our management is responsible for establishing and maintaining effective internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2022 was conducted. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in *Internal Control—Integrated Framework* (2013 framework). Based on their assessment, we concluded that, as of December 31, 2022, the Company's internal control over financial reporting was effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. We reviewed the results of management's assessment with the Audit Committee of our Board of Directors.

The effectiveness of our internal control over financial reporting as of December 31, 2022, has been audited by Ernst & Young LLP, the independent registered public accounting firm who also has audited our Consolidated Financial Statements included in this Annual Report on Form 10-K. Ernst & Young's report on our internal control over financial reporting appears below.

***Remediation of Previously Disclosed Material Weakness***

Subsequent to the filing of our Quarterly Report on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022, our management, with the participation of our principal executive officer and principal financial officer, identified a material weakness in our internal control over financial reporting, related to the accounting for unrealized gains and losses on equity securities in that our controls were not designed to effectively evaluate the accounting treatment for changes in value of certain securities in our investments portfolio.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Management arrived at such conclusion as a result of the restatement of our previously issued financial statements in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022.

In response to the material weakness, we designed and implemented improved processes and internal controls to evaluate our accounting for each investment type with the applicable accounting guidance, including ongoing senior management review and audit committee oversight. During the fourth quarter of 2022, we successfully completed the testing of our improved processes and internal controls to evaluate our accounting for each investment type with applicable accounting guidance and determined that such improved processes and internal controls have been appropriately designed and implemented and operated effectively as of December 31, 2022 to conclude that the previously identified material weakness has been remediated.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

***Changes in Internal Control over Financial Reporting***

Other than the remediation steps taken above, there were no additional changes in our internal control over financial reporting that occurred during the period covered by this Annual Report on Form 10-K that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

***Inherent Limitations on Effectiveness of Controls***

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs.

Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors of Hawaiian Holdings, Inc.

**Opinion on Internal Control over Financial Reporting** 

We have audited Hawaiian Holdings, Inc.'s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Hawaiian Holdings, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and financial statement schedules listed in the Index at Item 15(a) (collectively referred to as the "Consolidated Financial Statements") and our report dated February 15, 2023 expressed an unqualified opinion thereon.

**Basis for Opinion** 

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying "Management's Report on Internal Control Over Financial Reporting." Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ ERNST & YOUNG LLP

Honolulu, Hawai'i

February 15, 2023

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**ITEM 9B.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION.**

None.

**ITEM 9C.&nbsp;&nbsp;&nbsp;&nbsp;DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.**

Not applicable.

**PART III**

**ITEM 10.&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.**

The information required by this item is incorporated herein by reference from our definitive proxy statement relating to our 2023 Annual Meeting of Stockholders.

**ITEM 11.&nbsp;&nbsp;&nbsp;&nbsp;EXECUTIVE COMPENSATION.**

The information required by this item is incorporated herein by reference from our definitive proxy statement relating to our 2023 Annual Meeting of Stockholders.

**ITEM 12.&nbsp;&nbsp;&nbsp;&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.**

The information required by this item is incorporated herein by reference from our definitive proxy statement relating to our 2023 Annual Meeting of Stockholders.

**ITEM 13.&nbsp;&nbsp;&nbsp;&nbsp;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.**

The information required by this item is incorporated herein by reference from our definitive proxy statement relating to our 2023 Annual Meeting of Stockholders.

**ITEM 14.&nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL ACCOUNTANT FEES AND SERVICES.**

The information required by this item is incorporated herein by reference from our definitive proxy statement relating to our 2023 Annual Meeting of Stockholders.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**PART IV**

**ITEM 15.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS, FINANCIAL STATEMENT SCHEDULES.**

(a)*Financial Statements and Financial Statement Schedules:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Financial Statements of Hawaiian Holdings, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;&nbsp;&nbsp;&nbsp;Report of Ernst & Young LLP, Independent Registered Public Accounting Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Operations for the Years ended December 31, 2022, 2021 and 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Comprehensive Income, December 31, 2022, 2021 and 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance Sheets, December 31, 2022 and 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Shareholders' Equity, Years ended December 31, 2022, 2021 and 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Cash Flows for the Years ended December 31, 2022, 2021 and 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii.&nbsp;&nbsp;&nbsp;&nbsp;Notes to Consolidated Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Schedule of Valuation and Qualifying Accounts of Hawaiian Holdings, Inc.

The information required by Schedule I, "Condensed Financial Information of Registrant" has been provided in Note 17 to the Consolidated Financial Statements. All other schedules have been omitted because they are not required.

(b)*Exhibits:* The documents listed in the Exhibit Index of the Annual Report on Form 10-K are incorporated by reference or are filed with this Annual Report on Form 10-K, in each case as indicated therein (numbered in accordance with Item 601 of Regulation S-K).

**Exhibit Index**

3.1 <u>[Amended and Restated Certificate of Incorporation of Hawaiian Holdings, Inc. (filed as Exhibit 3.1 to the Form S-1, File No. 333-129503, filed by Hawaiian Holdings, Inc. on November 7, 2005).\*](http://www.sec.gov/Archives/edgar/data/1172222/000110465905052798/a05-19598_1ex3d1.htm)</u>

3.2 <u>[Amended and Restated By-Laws of Hawaiian Holdings, Inc. (filed as Exhibit 3.1 to the Form 8-K, File No. 001-31443, filed by Hawaiian Holdings, Inc. on August 5, 2022).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222222000075/hhibylawsupdates.htm)</u>

4.1 <u>[Description of Securities.](ex41-hhixdescriptionofsecu.htm)</u>

4.2 <u>[Warrant Agreement, dated as of April 22, 2020, by and between Hawaiian Holdings, Inc. and the United States Department of the Treasury (filed as Exhibit 4.1 to the Form 10-Q filed by Hawaiian Holdings, Inc. on May 7, 2020).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222220000043/ex41q12020.htm)</u>

4.3 <u>[Form of Warrant to Purchase Common Stock (included in Exhibit 4.2 as Annex B).](http://www.sec.gov/Archives/edgar/data/1172222/000117222220000043/ex42q12020.htm)</u>

4.4 <u>[Promissory Note, dated as of April 22, 2020, issued by Hawaiian Airlines, Inc. to the United States Department of the Treasury, with Hawaiian Holdings, Inc. as guarantor (filed as Exhibit 4.3 to the Form 10-Q filed by Hawaiian Holdings, Inc. on May 7, 2020).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222220000043/ex43q12020.htm)</u>

4.5 <u>[Warrant Agreement, dated as of September 25, 2020, between Hawaiian Holdings, Inc. and The United States Department of the Treasury (filed as Exhibit 4.9 to Form 10-Q filed October 28, 2020 and incorporated herein by reference).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222220000085/ex49warrantagreement.htm)</u>

4.6 <u>[Form of Warrant (included in Exhibit 4.5 as Annex B thereto).](http://www.sec.gov/Archives/edgar/data/1172222/000117222220000085/ex49warrantagreement.htm)</u>

4.7 <u>[Warrant Agreement, dated as of January 15, 2021, between Hawaiian Holdings, Inc. and the United States Department of the Treasury (filed as Exhibit 4.15 to Form 10-K filed February 12, 2021 and incorporated herein by reference).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000027/ex415warrantagreement.htm)</u>

4.8 <u>[Form of Warrant (included in Exhibit 4.7 as Annex B thereto).](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000027/ex415warrantagreement.htm)</u>

4.9 <u>[Promissory Note, dated as of January 15, 2021, issued by Hawaiian Airlines, Inc. to the United States Department of the Treasury, with Hawaiian Holdings, Inc. as guarantor (filed as Exhibit 4.17 to Form 10-K filed February 12, 2021 and incorporated herein by reference).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000027/ex417promissorynote.htm)</u>

4.10 <u>[Indenture, dated as of February 4, 2021, by and among Hawaiian Brand Intellectual Property, Ltd., HawaiianMiles Loyalty, Ltd., the guarantors named therein and Wilmington Trust, National Association, as trustee, collateral agent and collateral custodian, governing the](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000021/ha-indenture8kx99796880_2x.htm)</u> <u>[5.750](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000021/ha-indenture8kx99796880_2x.htm)</u> <u>[% Senior Secured Notes due 2026 (filed as Exhibit 4.1 to Form 8-K filed February 4, 2021 and incorporated herein by reference).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000021/ha-indenture8kx99796880_2x.htm)</u>

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

4.11 <u>[Form of 5.750% Senior Secured Notes due 2026 (included in Exhibit 4.1](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000021/ha-indenture8kx99796880_2x.htm) [0](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000021/ha-indenture8kx99796880_2x.htm) [as Exhibit A thereto).](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000021/ha-indenture8kx99796880_2x.htm)</u>

4.12 <u>[Warrant Agreement, dated as of April 23, 2021, between Hawaiian Holdings, Inc. and The United States Department of the Treasury (filed as Exhibit 4.1 to Form 10-Q filed July 29, 2021 and incorporated herein by reference).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000075/ex41warrantagreement3.htm)</u>

4.13 <u>[Form of Warrant (included in Exhibit 4.12 as Annex B thereto).](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000075/ex41warrantagreement3.htm)</u>

4.14 <u>[Promissory Note, dated as of April 23, 2021, issued by Hawaiian Airlines, Inc. to the United States Department of the Treasury, with Hawaiian Holdings, Inc. as guarantor (filed as Exhibit 4.3 to Form 10-Q filed July 29, 2021 and incorporated herein by reference).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000075/ex43promissorynote3.htm)</u>

4.15 <u>[Warrant to Purchase Common Stock, issued on October 20, 2022, by and between Hawaiian Holdings, Inc. and Amazon.com NV Investment Holdings LLC (filed as Exhibit 4.1 to the Form S-3 filed by Hawaiian Holdings, Inc. on November 18, 2022)\*‡](https://www.sec.gov/Archives/edgar/data/1172222/000119312522288979/d418007dex41.htm)</u>

10.1 <u>[Form of Hawaiian Holdings, Inc. Stock Option Agreement for certain employees and executive officers (filed as Exhibit 10.14 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 26, 2009).\*+](http://www.sec.gov/Archives/edgar/data/1172222/000104746909001839/a2190926zex-10_14.htm)</u>

10.2 <u>[Hawaiian Holdings, Inc. 2016 Management Incentive Plan (filed as Exhibit 10.9 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 16, 2017).\*+](http://www.sec.gov/Archives/edgar/data/1172222/000117222217000018/a10kexhibit109managementin.htm)</u>

10.3 <u>[Hawaiian Holdings, Inc. Outside Director Compensation Policy (filed as Exhibit 10.10 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 16, 2017).\*+](http://www.sec.gov/Archives/edgar/data/1172222/000117222217000018/a10kexhibit10102016outside.htm)</u>

10.4 <u>[Hawaiian Holdings, Inc. 2015 Stock Incentive Plan (filed as Exhibit 10.1 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 12, 2015).\*+](http://www.sec.gov/Archives/edgar/data/1172222/000117222215000035/proxy8kexhibit101.htm)</u>

10.5 <u>[Form of Hawaiian Holdings, Inc. Restricted Stock Unit Agreement (filed as Exhibit 10.2 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 28, 2015).\*+](http://www.sec.gov/Archives/edgar/data/1172222/000117222215000047/exhibit102-form8xk5272015.htm)</u>

10.6 <u>[Form of Hawaiian Holdings, Inc. Performance Restricted Stock Unit Agreement (filed as Exhibit 10.3 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 28, 2015).\*+](http://www.sec.gov/Archives/edgar/data/1172222/000117222215000047/exhibit103-form8xk5272015.htm)</u>

10.7 <u>[Form of Hawaiian Holdings, Inc. Stock Option Agreement (filed as Exhibit 10.4 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 28, 2015).\*+](http://www.sec.gov/Archives/edgar/data/1172222/000117222215000047/exhibit104-form8xk5282015.htm)</u>

10.8 <u>[Form of Hawaiian Holdings, Inc. Indemnification Agreement for directors and executive officers (filed as Exhibit 10.20 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 16, 2017).\*+](http://www.sec.gov/Archives/edgar/data/1172222/000117222217000018/a10kexhibit1020indemnifica.htm)</u>

10.9 <u>[Form of Change in Control and Severance Agreement for executive officers (filed as Exhibit 10.21 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 16, 2017).\*+](http://www.sec.gov/Archives/edgar/data/1172222/000117222217000018/a10kexhibit1021severanceag.htm)</u>

10.10 <u>[Airbus A320 Family Purchase Agreement, dated as of March 18, 2013, between Airbus S.A.S. and Hawaiian Airlines, Inc. (filed as Exhibit 10.1 to Form 10-Q/A filed by Hawaiian Holdings, Inc. on October 17, 2013 in redacted form since confidential treatment has been granted for certain provisions thereof pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended).\*‡](http://www.sec.gov/Archives/edgar/data/1172222/000110465913076112/a13-21879_1ex10d1.htm)</u>

10.10.1 <u>[Amendment #1 to Airbus A320 Family Purchase Agreement, dated as of March 18, 2013, between Airbus S.A.S. and Hawaiian Airlines, Inc. (filed as Exhibit 10.62.1 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 9, 2015).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222215000012/exhibit10621.htm)</u>

10.10.2 <u>[Amendment #2 to Airbus A320 Family Purchase Agreement, dated as of March 18, 2013, between Airbus S.A.S. and Hawaiian Airlines, Inc. (filed as Exhibit 10.62.2 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 9, 2015 in redacted form since confidential treatment has been granted for certain provisions thereof pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended).\*‡](http://www.sec.gov/Archives/edgar/data/1172222/000117222215000012/exhibit10622.htm)</u>

10.11 <u>[Pass Through Trust Agreement, dated May 29, 2013, between Hawaiian Airlines, Inc. and Wilmington Trust, National Association, as trustee (filed as Exhibit 4.1 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_1.htm)</u>

10.12 <u>[Trust Supplement No. 2013-1A-O, dated as of May 29, 2013, between Wilmington Trust, National Association, as Trustee, and Hawaiian Airlines, Inc. to Pass Through Trust Agreement, dated as of May 29, 2013 (filed as Exhibit 4.2 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_2.htm)</u>

10.13 <u>[Trust Supplement No. 2013-1A-S, dated as of May 29, 2013, between Wilmington Trust, National Association, as Trustee, and Hawaiian Airlines, Inc. to Pass Through Trust Agreement, dated as of May 29, 2013 (filed as Exhibit 4.3 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_3.htm)</u>

10.14 <u>[Trust Supplement No. 2013-1B-O, dated as of May 29, 2013, between Wilmington Trust, National Association, as Trustee, and Hawaiian Airlines, Inc. to Pass Through Trust Agreement, dated as of May 29, 2013 (filed as Exhibit 4.4 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_4.htm)</u>

10.15 <u>[Trust Supplement No. 2013-1B-S, dated as of May 29, 2013, between Wilmington Trust, National Association, as Trustee, and Hawaiian Airlines, Inc. to Pass Through Trust Agreement, dated as of May 29, 2013 (filed as Exhibit 4.5 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_5.htm)</u>

10.16 <u>[Revolving Credit Agreement (2013-1A), dated as of May 29, 2013, between Wilmington Trust, National Association, as subordination agent, as agent and trustee, and as borrower, and Natixis S.A., acting via its New York Branch, as liquidity provider (filed as Exhibit 4.6 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_6.htm)</u>

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

10.17 <u>[Revolving Credit Agreement (2013-1B), dated as of May 29, 2013, between Wilmington Trust, National Association, as subordination agent, as agent and trustee, and as borrower, and Natixis S.A., acting via its New York Branch, as liquidity provider (filed as Exhibit 4.7 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_7.htm)</u>

10.18 <u>[Intercreditor Agreement, dated as of May 29, 2013, among Wilmington Trust, National Association, as trustee, Natixis S.A., acting via its New York Branch, as liquidity provider, and Wilmington Trust, National Association, as subordination agent and trustee (filed as Exhibit 4.8 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_8.htm)</u>

10.19 <u>[Deposit Agreement (Class A), dated as of May 29, 2013, between Wells Fargo Bank Northwest, National Association, as escrow agent, and Natixis S.A., acting via its New York Branch, as depositary (filed as Exhibit 4.9 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_9.htm)</u>

10.20 <u>[Deposit Agreement (Class B), dated as of May 29, 2013, between Wells Fargo Bank Northwest, National Association, as escrow agent, and Natixis S.A., acting via its New York Branch, as depositary (filed as Exhibit 4.10 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_10.htm)</u>

10.21 <u>[Escrow and Paying Agent Agreement (Class A), dated as of May 29, 2013, among Wells Fargo Bank Northwest, National Association, as escrow agent, Citigroup Global Markets Inc., Goldman, Sachs & Co. and Morgan Stanley & Co. LLC, for themselves and on behalf of the several Underwriters of the Certificates, Wilmington Trust, National Association, as trustee, and Wilmington Trust, National Association, as paying agent (filed as Exhibit 4.11 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_11.htm)</u>

10.22 <u>[Escrow and Paying Agent Agreement (Class B), dated as of May 29, 2013, among Wells Fargo Bank Northwest, National Association, as escrow agent, Citigroup Global Markets Inc., Goldman, Sachs & Co. and Morgan Stanley & Co. LLC, for themselves and on behalf of the several Underwriters of the Certificates, Wilmington Trust, National Association, as trustee, and Wilmington Trust, National Association, as paying agent (filed as Exhibit 4.12 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_12.htm)</u>

10.23 <u>[Note Purchase Agreement, dated as of May 29, 2013, among Hawaiian Airlines, Inc., Wilmington Trust, National Association, as trustee, Wilmington Trust, National Association, as subordination agent, Wells Fargo Bank Northwest, National Association, as escrow agent, and Wilmington Trust, National Association, as paying agent (filed as the Exhibit 4.13 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_13.htm)</u>

10.24 <u>[Form of Participation Agreement (Participation Agreement between Hawaiian Airlines, Inc. and Wilmington Trust, National Association, as mortgagee, subordination agent and trustee) (Exhibit B to Note Purchase Agreement) (filed as Exhibit 4.14 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_14.htm)</u>

10.25 <u>[Form of Indenture (Trust Indenture and Mortgage between Hawaiian Airlines, Inc. and Wilmington Trust, National Association, as mortgagee and securities intermediary) (Exhibit C to Note Purchase Agreement) (filed Exhibit 4.15 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_15.htm)</u>

10.26 <u>[Form of Hawaiian Airlines Pass Through Certificate, Series 2013-1A-O (filed as Exhibit 4.16 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_2.htm)</u>

10.27 <u>[Form of Hawaiian Airlines Pass Through Certificate, Series 2013-1B-O (filed as Exhibit 4.17 to the Form 8-K filed by Hawaiian Holdings, Inc. on May 31, 2013).\*](http://www.sec.gov/Archives/edgar/data/1172222/000095015513000032/e62340466ex4_4.htm)</u>

10.28 <u>[Lease Agreement, dated as of November 15, 2016 between Hawaiian Airlines, Inc. and the Department of Transportation of the State of Hawai'i (filed as Exhibit 10.45 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 16, 2017).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222217000018/haleaseagreement.htm)</u>

10.29 <u>[Aircraft General Terms Agreement Number AGTA-HWI, dated as of July 18, 2018 between The Boeing Company and Hawaiian Airlines, Inc. (filed as Exhibit 10.1 to the Form 10-Q filed by Hawaiian Holdings, Inc. on October 24, 2018 in redacted form since confidential treatment has been granted for certain provisions thereof pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended).\*‡](http://www.sec.gov/Archives/edgar/data/1172222/000117222218000063/exhibit101aircraftgeneralt.htm)</u>

10.30 <u>[Purchase Agreement No. PA-04749, dated as of July 18, 2018, between the Boeing Company and Hawaiian Airlines, Inc. (filed as Exhibit 10.2 to the Form 10-Q filed by Hawaiian Holdings, Inc. on October 24, 2018 in redacted for since confidential treatment has been granted for certain provisions thereof pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended).\*‡](http://www.sec.gov/Archives/edgar/data/1172222/000117222218000063/exhibit102purchaseagreement.htm)</u>

10.31 <u>[Supplemental Agreement to that certain Purchase Agreement No. PA-04749, dated as of July 18, 2018, between the Boeing Company and Hawaiian Airlines, Inc., dated as of December 30, 2022, between Hawaiian Airlines, Inc. and the Boeing Company.](ex1031-boeingsupplementala.htm)</u>

10.32 <u>[General Terms Agreement No. 1-1026296, dated as of October 1, 2018, among General Electric Company, GE Engine Services Distribution, LLC and Hawaiian Airlines, Inc. (filed as Exhibit 10.36 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 13, 2019).\*‡](http://www.sec.gov/Archives/edgar/data/1172222/000117222219000012/a10k2018exhibit1036.htm)</u>

10.33 <u>[Letter Agreement No. 1 to General Terms Agreement No. 1-1026296, dated as of October 1, 2018, among General Electric Company, GE Engine Services Distribution, LLC and Hawaiian Airlines, Inc. (filed as Exhibit 10.37 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 13, 2019).\*‡](http://www.sec.gov/Archives/edgar/data/1172222/000117222219000012/a10k2018exhibit1037.htm)</u>

10.34 <u>[Flight Hour Agreement, dated as of October 1, 2018, between GE Engine Services, LLC and Hawaiian Airlines, Inc. (filed as Exhibit 10.38 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 13, 2019).\*‡](http://www.sec.gov/Archives/edgar/data/1172222/000117222219000012/a10k2018exhibit1038.htm)</u>

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

---

| | |
|:---|:---|
| 10.35 | <u>[Amended and Restated Credit and Guaranty Agreement, dated as of December 11, 2018, among Hawaiian Airlines, Inc., Hawaiian Holdings, Inc., certain other subsidiaries of Hawaiian Holdings, Inc., the lenders party thereto and Citibank, N.A. (filed as Exhibit 10.39 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 13, 2019), Inc., certain other subsidiaries of Hawaiian Holdings, Inc., the lenders party thereto and Citibank, N.A. (filed as Exhibit 10.39 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 13, 2019).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222219000012/a10k2018exhibit1039.htm)</u> |
| 10.36 | <u>[Amended and Restated Credit and Guaranty Agreement, dated as of August 17, 2022, among Hawaiian Airlines, Inc., Hawaiian Holdings, Inc., certain other subsidiaries of Hawaiian Holdings, Inc., the lenders party thereto and Citibank, N.A. (filed as Exhibit 10.1 to the Form 10-Q filed by Hawaiian Holdings, Inc. on October 31, 2022).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222222000095/ex101amendedandrestatedcre.htm)</u> |
| 10.37 | <u>[Payroll Support Program Agreement, dated as of April 22, 2020, by and between Hawaiian Airlines, Inc. and the United States Department of the Treasury (filed as Exhibit 10.1 to the Form 10-Q filed by Hawaiian Holdings, Inc. on May 7, 2020).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222220000043/ex101q12020.htm)</u> |
| 10.38 | <u>[Loan and Guarantee Agreement, dated as of September 25, 2020, among Hawaiian Airlines, Inc., as borrower, Hawaiian Holdings, Inc., the guarantors party thereto from time to time, The United States Department of the Treasury, and The Bank of New York Mellon, as administrative agent and collateral agent (filed as Exhibit 10.1 to the Form 10-Q filed by Hawaiian Holdings, Inc. on October 28, 2020).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222220000085/ex101loanandguaranteea.htm)</u> |
| 10.39 | <u>[Amended and Restated Loan and Guarantee Agreement, dated as of October 23, 2020, among Hawaiian Airlines, Inc., as borrower, Hawaiian Holdings, Inc., the guarantors party thereto from time to time, The United States Department of the Treasury, and The Bank of New York Mellon, as administrative agent and collateral agent (filed as Exhibit 10.2 to the Form 10-Q filed by Hawaiian Holdings, Inc. on October 28, 2020).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222220000085/ex102restatedloanandgu.htm)</u> |
| 10.40 | <u>[Amendment to Loan and Guarantee Agreement, dated as of January 15, 2021, among Hawaiian Airlines, Inc,, as borrower, Hawaiian Holdings, Inc., the guarantors party thereto from time to time, the United States Department of the Treasury, and The Bank of New York Mellon, as administrative agent and collateral agent (filed as Exhibit 10.39 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 12, 2021).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000027/ex1039amendmenttoloanandgu.htm)</u> |
| 10.41 | <u>[Payroll Support Program Extension Agreement, dated as of January 15, 2021, by and between Hawaiian Airlines, Inc. and the United States Department of the Treasury (filed as Exhibit 10.40 to the Form 10-K filed by Hawaiian Holdings, Inc. on February 12, 2021).\*](https://www.sec.gov/Archives/edgar/data/1172222/000117222221000027/ex1040payrollsupportprogra.htm)</u> |
| 10.42 | <u>[Payroll Support Program 3 Agreement, dated as of April 23, 2021, by and between Hawaiian Airlines, Inc. and the United States Department of the Treasury (filed as Exhibit 10.1 to the Form 10-Q filed by Hawaiian Holdings, Inc. on July 29, 2021).\*](http://www.sec.gov/Archives/edgar/data/1172222/000117222221000075/ex101payrollsupportprogram.htm)</u> |
| 10.43 | <u>[Transaction Agreement, dated as of October 20, 2022, by and between Hawaiian Holdings, Inc. and Amazon.com, Inc. (filed as Exhibit 10.1 to the Form S-3 filed by Hawaiian Holdings, Inc. on November 18, 2022)\*‡](https://www.sec.gov/Archives/edgar/data/1172222/000119312522288979/d418007dex101.htm)</u> |
| 10.44 | <u>[Air Transportation Services Agreement, dated as of October 20, 2022, by and between Hawaiian Airlines, Inc. and Amazon.com Services LLC.](ex1044_projectavion-atsawi.htm)</u> |
| 21.1 | <u>[List of Subsidiaries of Hawaiian Holdings, Inc.](a10k2022exhibit211.htm)</u> |
| 23.1 | <u>[Consent of Ernst & Young LLP.](a10k2022exhibit231.htm)</u> |
| 24.1 | <u>[Power of Attorney](#i59f265a498f14e94937a15d1b876d549_184)</u> |
| 31.1 | <u>[Rule 13a-14(a) Certification of Chief Executive Officer.](a10k2022exhibit311.htm)</u> |
| 31.2 | <u>[Rule 13a-14(a) Certification of Chief Financial Officer.](a10k2022exhibit312.htm)</u> |
| 32.1 | <u>[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](a10k2022exhibit321.htm)</u> |
| 32.2 | <u>[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](a10k2022exhibit322.htm)</u> |
| 101.INS | XBRL Instance Document. |
| 101.SCH | XBRL Taxonomy Extension Schema Document. |
| 101.CAL | XBRL Taxonomy Extension Valuation Linkbase Document. |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data Files (formatted as inline XBRL and contained in Exhibit 101) |

---

+&nbsp;&nbsp;&nbsp;&nbsp;These exhibits relate to management contracts or compensatory plans or arrangements.

\*&nbsp;&nbsp;&nbsp;&nbsp;Previously filed; incorporated herein by reference.

‡&nbsp;&nbsp;&nbsp;&nbsp;Confidential treatment has been requested for a portion of this exhibit.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**Schedule II—Hawaiian Holdings, Inc.**

**Valuation and Qualifying Accounts**

**Years Ended December 31, 2022, 2021 and 2020**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **COLUMN A** | **COLUMN B** | **COLUMN C<br>ADDITIONS** | **COLUMN C<br>ADDITIONS** | **COLUMN C<br>ADDITIONS** | **COLUMN D** | | **COLUMN E** |
| **<u>Description</u>** | **Balance at Beginning of Year** | **Charged to Costs and Expenses** | | **Charged to Other Accounts** | **Deductions** | | **Balance at End of Year** |
| | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Allowance for Doubtful Accounts** | | | | | | | |
| &nbsp;&nbsp;&nbsp;2022 | $844 | 1407 |  |  | (1512) | (a) | $739 |
| &nbsp;&nbsp;&nbsp;2021 | $2096 | 317 |  |  | (1569) | (a) | $844 |
| &nbsp;&nbsp;&nbsp;2020 | $651 | 5004 |  |  | (3559) | (a) | $2096 |
| **Allowance for Obsolescence of Flight Equipment Expendable Parts and Supplies** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2022 | $18733 | 3312 | (b) |  | (906) | (c) | $21139 |
| &nbsp;&nbsp;&nbsp;2021 | $17977 | 3213 | (b) |  | (2457) | (c) | $18733 |
| &nbsp;&nbsp;&nbsp;2020 | $15919 | 3254 | (b) |  | (1196) | (c) | $17977 |
| **Valuation Allowance on Deferred Tax Assets** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2022 | $14062 | 17805 |  |  |  |  | $31867 |
| &nbsp;&nbsp;&nbsp;2021 | $9617 | 4445 |  |  |  |  | $14062 |
| &nbsp;&nbsp;&nbsp;2020 | $2547 | 7070 |  |  |  |  | $9617 |

---

_______________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Doubtful accounts written off, net of recoveries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Obsolescence reserve for Hawaiian flight equipment expendable parts and supplies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Spare parts and supplies written off against the allowance for obsolescence.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | HAWAIIAN HOLDINGS, INC. | HAWAIIAN HOLDINGS, INC. |
| February 15, 2023 | By | /s/ SHANNON L. OKINAKA |
| | | Shannon L. Okinaka<br> *Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)* |

---

**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Peter R. Ingram and Shannon L. Okinaka, and each of them acting individually, as his or her true and lawful attorneys-in-fact and agents with full power of each to act alone, with full powers of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, with full power of each to act alone, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or his or her or their substitutes, may lawfully do or cause to be done by virtue hereof.

------

<u>[**Table of Contents**](#i59f265a498f14e94937a15d1b876d549_7)</u>

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on February 15, 2023.

---

| | |
|:---|:---|
| **<u>Signature</u>** | **<u>Title</u>** |
| /s/ PETER R. INGRAM | President and Chief Executive Officer, and Director (Principal Executive Officer) |
| Peter R. Ingram | |
| /s/ SHANNON L. OKINAKA | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) |
| Shannon L. Okinaka | |
| /s/ LAWRENCE S. HERSHFIELD | Chair of the Board of Directors |
| Lawrence S. Hershfield | |
| /s/ WENDY A. BECK | Director |
| Wendy A. Beck | |
| /s/ EARL E. FRY | Director |
| Earl E. Fry | |
| /s/ C. JAYNE HRDLICKA | Director |
| C. Jayne Hrdlicka | |
| /s/ MICHAEL E. MCNAMARA | Director |
| Michael E. McNamara | |
| /s/ CRYSTAL K. ROSE | Director |
| Crystal K. Rose | |
| /s/ MARK D. SCHNEIDER | Director |
| Mark D. Schneider | |
| /s/ WILLIAM S. SWELBAR | Director |
| William S. Swelbar | |
| /s/ CRAIG E. VOSBURG | Director |
| Craig E. Vosburg | |
| /s/ DUANE E. WOERTH | Director |
| Duane E. Woerth | |
| /s/ RICHARD N. ZWERN | Director |
| Richard N. Zwern | |

---

## Exhibit 4.1

**Exhibit 4.1**

**DESCRIPTION OF SECURITIES** 

References to the "Company," "we," "us," or "our" herein are, unless the context otherwise indicates, only to Hawaiian Holdings, Inc. and not to any of its subsidiaries. The following is a summary of the Company's capital stock and certain provisions of its Amended and Restated Certificate of Incorporation (the "Certificate of Incorporation") and Amended and Restated By-laws (the "By-laws"). This summary does not purport to be complete and is qualified in its entirety by the provisions of the Certificate of Incorporation, the By-laws and the Delaware General Corporation Law (the "DGCL").

**Summary** 

The authorized capital stock of the Company consists of 120,000,000 shares, consisting of (i) 118,000,000 shares of common stock, par value $0.01 per share, and (ii) 2,000,000 shares of preferred stock, par value $0.01 per share.

**Common Stock** 

A holder of common stock is entitled to one vote for each share held of record on all matters on which stockholders generally are entitled to vote. Subject to certain limitations in our Certificate of Incorporation and to the preference applicable to any outstanding Special Preferred Stock, the holders of common stock will be entitled to receive ratably such dividends as may be declared by our Board of Directors (the "Board") out of funds legally available therefor. In the event of our liquidation, dissolution or winding up, holders of the common stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preference of Special Preferred Stock. Holders of common stock have no preemptive rights and no right to convert their common stock into any other securities. The outstanding shares of common stock are fully paid and non-assessable.

**Special Preferred Stock**

The IAM, AFA and ALPA (each a "Union," and collectively, the "Unions") each hold one share of Series B Special Preferred Stock, Series C Special Preferred Stock and Series D Special Preferred Stock, respectively, that entitles each Union to nominate one director. In addition to the rights described above, each series of the Special Preferred Stock, unless otherwise specified: (i) ranks senior to the common stock and ranks pari passu with each other such series of Special Preferred Stock with respect to our liquidation, dissolution and winding up and will be entitled to receive $0.01 per share before any payments are made, or assets distributed to holders of any stock ranking junior to the Special Preferred Stock; (ii) has no dividend rights unless a dividend is declared and paid on the common stock, in which case the Special Preferred Stock would be entitled to receive a dividend in an amount per share equal to two times the dividend per share paid on the common stock; (iii) is entitled to one vote per share of such series and votes with the common stock as a single class on all matters submitted to holders of the common stock; and (iv) automatically converts into the common stock on a 1:1 basis at such time as such shares are transferred or such holders are no longer entitled to nominate a representative to our Board pursuant to their respective collective bargaining agreements. The shares of Special Preferred Stock are not redeemable, and no holder of the shares of Special Preferred Stock has any preemptive or preferential rights of subscription for or to purchase any shares of any class or stock or other securities.

------

**Treasury Warrants** 

In April 2020, we entered into a Payroll Support Program Agreement (the "PSP Agreement") with the United States Department of the Treasury (the "Treasury") under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). In connection with the PSP Agreement, we entered into a Warrant Agreement with the Treasury, dated April 22, 2020 (the "PSP Warrant Agreement"), pursuant to which we agreed to issue to the Treasury warrants to purchase shares of our common stock. Pursuant to the PSP Warrant Agreement, we issued the Treasury (i) a warrant to purchase 117,335 shares of our common stock on April 22, 2020, (ii) a warrant to purchase 148,457 shares of our common stock on May 29, 2020, (iii) a warrant to purchase 148,457 shares of our common stock on June 30, 2020, (iv) a warrant to purchase 74,228 shares of our common stock on July 30, 2020 and (v) a warrant to purchase 21,487 shares of our common stock on September 30, 2020, in each case at an exercise price of $11.82 per share ((i)-(v), collectively, the "PSP Warrants"), subject to adjustment in accordance with the terms and conditions set forth in the PSP Warrants.

In September 2020, we entered into the Amended and Restated Loan Agreement (the "Amended and Restated Loan Agreement") with the Treasury under the Economic Relief Program ("ERP") under the CARES Act. In connection with the Amended and Restated Loan Agreement, we entered into a Warrant Agreement with the Treasury dated September 25, 2020 (the "ERP Warrant Agreement"), pursuant to which, on September 25, 2020, we issued to the Treasury a warrant to purchase 380,711 shares of our common stock at an exercise price of $11.82 per share (the "ERP Warrant"), subject to adjustment in accordance with the terms and conditions set forth in the ERP Warrant.

In January 2021, we entered into the Payroll Support Program Extension Agreement (the "PSP Extension Agreement") with the Treasury under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021. In connection with the PSP Extension Agreement, we entered into a Warrant Agreement with the Treasury dated January 15, 2021 (the "PSP Extension Warrant Agreement"), pursuant to which we agreed to issue to the Treasury warrants to purchase shares of our common stock. Pursuant to the PSP Extension Warrant Agreement, we issued the Treasury (i) a warrant to purchase 113,940 shares of our common stock on March 5, 2021 and (ii) a warrant to purchase 42,400 shares of our common stock on April 23, 2021, in each case at an exercise price of $17.78 per share ((i) and (ii), collectively, the "PSP Extension Warrants"), subject to adjustment in accordance with the terms and conditions set forth in the PSP Extension Warrants.

In April 2021, we entered into a Payroll Support Program 3 Agreement (the "PSP3 Agreement") with the Treasury under Section 7301 of the American Rescue Plan Act of 2021. In connection with the PSP3 Agreement, we entered into a Warrant Agreement with the Treasury dated April 23, 2021 (the "PSP3 Warrant Agreement" and, together with the PSP Warrant Agreement, the ERP Warrant Agreement and the PSP Extension Warrant Agreement, the "Warrant Agreements"), pursuant to which, on June 3, 2021, we issued to the Treasury a warrant to purchase 87,670 shares of our common stock at an exercise price of $27.27 per share (the "PSP3 Warrant" and, together with the PSP Warrants, the ERP Warrant and the PSP Extension Warrants, the "Treasury Warrants"), subject to adjustment in accordance with the terms and conditions set forth in the PSP3 Warrant.

The Treasury Warrants may be exercised, in whole or in part and for cash or on a net exercise basis, at any time before 5:00 p.m. New York City time on the fifth anniversary of the issue date of the respective Treasury Warrant. The Treasury Warrants are freely transferable, may be settled as net shares or in cash at our option and contain customary anti-dilution provisions. The holder of the Treasury Warrants has certain customary registration rights with respect to the Treasury Warrants and the common stock issuable upon exercise of the Treasury Warrants

------

pursuant to the terms of the Warrant Agreements. The Treasury Warrants do not entitle the holder to stockholder voting rights or other rights as a stockholder.

The foregoing summary is qualified in its entirety by reference to the Treasury Warrants, forms of which are incorporated by reference as Exhibit 4.2, Exhibit 4.5, Exhibit 4.7, and Exhibit 4.10 to Post-Effective Amendment No. 1 to our Registration Statement on Form S-3ASR (File No. 333-242409) filed by us on February 14, 2023.

**Amazon Warrant**

On October 20, 2022, we entered into a Transaction Agreement (the "Transaction Agreement") with Amazon.com, Inc. ("Amazon"), pursuant to which, among other things, we agreed to issue to Amazon.com NV Investment Holdings LLC, a wholly-owned subsidiary of Amazon ("Amazon.com NV"), a warrant (the "Amazon Warrant") to purchase up to 9,442,443 shares of our common stock (the "Amazon Warrant Shares"), subject to adjustment and vesting in accordance with the terms and conditions set forth in the Amazon Warrant. The Transaction Agreement was entered into, and the Amazon Warrant was issued in connection with the entry into certain commercial arrangements between us and Amazon and its affiliates, including that certain Air Transportation Services Agreement, dated as of October 20, 2022, between Hawaiian Airlines, Inc. ("Hawaiian") and Amazon.com Services LLC ("Amazon Services"), a wholly-owned subsidiary of Amazon (the "ATSA"), under which Hawaiian will provide certain air cargo transportation services to Amazon Services for an initial term of eight years.

The Amazon Warrant Shares will vest over time based on payments to us by Amazon (whether made directly from Amazon, its affiliates or by a third party on behalf of Amazon) pursuant to the ATSA or certain other commercial arrangements (the "Qualified Payments") of up to $1.8 billion. Upon the issuance of the Amazon Warrant, 1,258,992 Amazon Warrant Shares vested. Subject to vesting and certain conditions set forth in the Amazon Warrant, 6,294,962 Amazon Warrant Shares may be exercised, in whole or in part and for cash or on a net exercise basis, at any time before 5:00 p.m., Seattle time, on October 20, 2031 at an exercise price of $14.71 per share (the "First Tranche"), and the remaining Amazon Warrant Shares may be exercised in whole or in part and for cash or on a net exercise basis, at any time before 5:00 p.m., Seattle time, on October 20, 2031 at an exercise price equal to the 30-day volume weighted average price for our common stock as of the earlier of (i) October 20, 2025 or (ii) the date that the entire First Tranche has vested. The exercise price and the Amazon Warrant Shares issuable upon exercise of the Amazon Warrant are subject to customary antidilution adjustments.

Upon the consummation of certain acquisition transactions (as set forth in the Amazon Warrant), an amount of the unvested Amazon Warrant Shares will automatically vest and become exercisable as follows: (i) if the Qualified Payments collectively paid to us or any of our affiliates are equal to or less than $350 million, 25% of the Amazon Warrant Shares that are not vested as of such date, (ii) if the Qualified Payments collectively paid to us or any of our affiliates exceed $350 million but are not greater than $650 million, 50% of the Amazon Warrant Shares that are not vested as of such date, (iii) if the Qualified Payments collectively paid to us or any of our affiliates exceed $650 million but are not greater than $950 million, 75% of the Amazon Warrant Shares that are not vested as of such date, or (iv) if the Qualified Payments collectively paid to us or any of our affiliates exceed $950 million, 100% of the Amazon Warrant Shares that are not vested as of such date.

The Amazon Warrant also limits Amazon.com NV's beneficial ownership to 4.999% of our outstanding shares unless Amazon.com NV amends or waives this limit by written notice to us, which will not be effective until the 61st day after such notice.

------

The holder of the Amazon Warrant has certain customary registration rights with respect to the Amazon Warrant and the Amazon Warrant Shares pursuant to the terms of the Transaction Agreement. The Amazon Warrant does not entitle the holder to stockholder voting rights.

The foregoing summary is qualified in its entirety by reference to the Amazon Warrant, which is filed as Exhibit 4.1 to the Form S-3ASR (File No. 333-268473) filed by us on November 18, 2022.

**Anti-Takeover Effects of Our Certificate of Incorporation and By-laws, of Delaware Law and of Federal Law**

Certain provisions of our Certificate of Incorporation and By-laws, and of the DGCL could have the effect of delaying, deferring, or discouraging another party from acquiring control of us. These provisions, which are summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids and are also designed to encourage persons seeking to acquire control of us to first negotiate with our Board. However, these provisions could also have the effect of discouraging others from attempting hostile takeovers. These provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests.

***Board of Directors Vacancies***

Our Certificate of Incorporation and By-laws authorize the majority of directors then in office to fill vacant directorships, including newly created seats; provided however, that so long as there is a holder of Series B Special Preferred Stock, Series C Special Preferred Stock or Series D Special Preferred Stock, the board may fill a Series B-, Series C- or Series D- nominated director vacancy, respectively, with only a person nominated to the Board by the respective holder of Series B Special Preferred Stock, Series C Special Preferred Stock or Series D Special Preferred Stock. In accordance with the procedures provided in the By-laws, if a Series B, Series C, or Series D vacancy on the Board is not filled within 30 days, the relevant series may fill such vacancy by majority vote. In addition, the number of directors constituting our Board are permitted to be set only by a resolution adopted by a majority vote of our entire Board. These provisions would prevent a stockholder from increasing the size of our Board and then gaining control of our Board by filling the resulting vacancies with its own nominees. This will make it more difficult to change the composition of our Board and will promote continuity of management.

***Stockholder Action; Special Meeting of Stockholders***

We have provided in our Certificate of Incorporation that the holders of our common stock may not act by written consent. This limit on the ability of the holders of our common stock to act by written consent may lengthen the amount of time required to take stockholder actions. As a result, no stockholder, regardless of how large its holdings of our stock are, would be able to amend our By-laws or remove directors without holding a stockholders meeting.

Further, we have provided in our By-laws that special meetings of our stockholders may be called only by our Board or the chairman of our Board, thus prohibiting a stockholder from calling a special meeting. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders controlling a majority of our capital stock to take any action, including the removal of directors.

------

***Undesignated Preferred Stock***

The ability to authorize undesignated preferred stock makes it possible for our Board to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to acquire us. These and other provisions may have the effect of deferring or preventing hostile takeovers or delaying or preventing changes in control or management of our company.

***Exclusive Forum***

Our By-laws provide that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware or, if such court lacks jurisdiction, any other state or federal court located in the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of us; (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our current or former directors, officers, stockholders or other employees to us or our stockholders; (iii) any action asserting a claim against us or any of our directors, officers or other employees arising pursuant to any provision of the DGCL or our Certificate of Incorporation or By-laws (as each may be amended or restated from time to time); or (iv) any action asserting a claim against us or any of our directors, officers or other employees governed by the internal affairs doctrine. This exclusive forum provision will not apply to any causes of action arising under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or any other claim for which the federal courts have exclusive jurisdiction. Although we believe these provisions benefit us by providing increased consistency in the application of Delaware law for the specified types of actions and proceedings, the provisions may have the effect of discouraging lawsuits against us or our directors and officers.

***Amendment of Charter Provisions***

Amendments to our Certificate of Incorporation requires the approval of the holders of at least 2/3rds of our then outstanding capital stock.

***Requirements for Advance Notification of Stockholder Nominations and Proposals***

The By-laws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the Board or a committee of our Board. The By-laws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed. These provisions may also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to obtain control of our company.

***Provisions of Delaware Law Governing Business Combinations***

We have elected not to be governed by Section 203 of the General Corporation Law.

***Ownership by Non-U.S. Citizens***

Federal law prohibits non-U.S. citizens from owning more than 25% of the voting interest of a U.S. air carrier or controlling a U.S. air carrier. Our Certificate of Incorporation prohibits the ownership or control of more than 25% (to be increased or decreased from time to time, as permitted under the laws of the U.S.) of our issued and

------

outstanding voting capital stock by persons who are not "citizens of the United States". As of December 31, 2019, we believe we were in compliance with federal law as it relates to voting stock held by non-U.S. citizens.

**Listing**

Our Common Stock is listed on The Nasdaq Global Select Market under the symbols "HA".

## Exhibit 10.31

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO ITEM 601(b)(10)(iv) WHEREBY CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED: [\*\*\*]

Supplemental Agreement No. 6 ("SA-6")

To

Purchase Agreement No. PA-04749

Between

The Boeing Company

And

Hawaiian Airlines, Inc.

Relating to Boeing Model 787 Aircraft

THIS SUPPLEMENTAL AGREEMENT NO. 6 (***<u>SA-6</u>***), entered into as of December 30, 2022, by and between THE BOEING COMPANY (***<u>Boeing</u>***) and HAWAIIAN AIRLINES, INC. (***<u>Customer</u>***);

WHEREAS, Boeing and Customer entered into Purchase Agreement No. PA-04749 dated July 18, 2018, (as amended, supplemented or modified from time to time prior to the date hereof, the ***<u>Purchase Agreement</u>***) relating to Boeing Model 787 aircraft (***<u>Aircraft</u>***);

WHEREAS, Boeing and Customer have agreed, pursuant to the terms of agreement no. 6-1162-AYL-023, to revise the scheduled delivery month of ten (10) 787-9 Aircraft as follows:

---

| | |
|:---|:---|
| **Contract Month Prior to SA-6** | **New Delivery Month Commencing with SA-6** |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |

---

**P.A. 04749&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SA-6**

------

Supplemental Agreement No. 6 <br> to Purchase Agreement No. PA-04749

WHEREAS, Boeing and Customer agree to exercise Purchase Rights for two (2) Boeing model 787-9 aircraft, and to add such purchase right aircraft to the Purchase Agreement as Aircraft (the "Purchase Right Aircraft").

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Purchase Agreement as follows:

1.**<u>**Table of Contents**</u>**.

The attached "**Table of Contents**" of the Purchase Agreement deletes and replaces its antecedent "**Table of Contents**" to reflect the changes made by this Supplemental Agreement No. 6.

2.**<u>Table 1 (Aircraft Information Table).</u>**

The attached Table 1 to Purchase Agreement No. PA-04749 (denoted with an "SA-6") deletes and replaces its antecedent "Table 1 to Purchase Agreement No. PA-04749" to reflect the revised scheduled delivery month and two (2) exercised Purchase Right Aircraft.

3.**<u>Letter Agreements.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;The attached Letter Agreement HWI-PA-04749-LA-1707961R3 entitled "Flexible Delivery Rights" deletes and replaces its antecedent HWI-PA-04749-LA-1707961R2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;The attached Letter Agreement HWI-PA-04749-LA-1707966R1 entitled "Advance Payment Matters" deletes and replaces its antecedent HWI-PA-04749-LA-1707966.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;The attached Letter Agreement HWI-PA-04749-LA-1708012R4 entitled "Special Matters" deletes and replaces its antecedent HWI-PA-04749-LA-1708012R3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;The attached Letter Agreement HWI-PA-04749-LA-1708019R2 entitled "MTOW Program" deletes and replaces its antecedent HWI-PA-04749-LA-1708019R1.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp;The attached Letter Agreement HWI-PA-04749-LA-1708022R2 entitled "Cap and Share Escalation Program" deletes and replaces its antecedent HWI-PA-04749-LA-1708022R1.

**P.A. 04749&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SA-6**

------

Supplemental Agreement No. 6 <br> to Purchase Agreement No. PA-04749

**4. &nbsp;&nbsp;&nbsp;&nbsp;<u>Advance Payments.</u>** 

Boeing and Customer agree that [\*\*\*] U.S. Dollars ($[\*\*\*]) will be payable by Customer as payment obligations in respect of the Purchase Right Aircraft in connection with this SA-6, and such payment will be due on [\*\*\*].

**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect on Purchase Agreement.</u>** 

Except as expressly set forth herein, all terms and provisions contained in the Purchase Agreement shall remain in full force and effect. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all previous proposals, and agreements, understandings, commitments or representations whatsoever, oral or written, and may be changed only in writing signed by authorized representatives of the parties.

The Purchase Agreement will be deemed to be supplemented to the extent herein provided as of the date hereof and as so supplemented will continue in full force and effect.

AGREED AND ACCEPTED on the day and year written above.

---

| | |
|:---|:---|
| **THE BOEING COMPANY** | **HAWAIIAN AIRLINES, INC.** |
| Signature | Signature |
| <br>Attorney-in-Fact | |
| Title | Title |

---

**P.A. 04749&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SA-6**

------

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO ITEM 601(b)(10)(iv) WHEREBY CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED: [\*\*\*]

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **<u>ARTICLES</u>** | **<u>ARTICLES</u>** |
| Article 1. | Quantity, Model and Description |
| Article 2. | Delivery Schedule |
| Article 3. | Price |
| Article 4. | Payment |
| Article 5. | Additional Terms |

---

---

| | |
|:---|:---|
| **<u>TABLE</u>** | **<u>TABLE</u>** |
| **1.** | **Aircraft Information Table.............................................................SA-6** |

---

---

| | |
|:---|:---|
| **<u>EXHIBIT</u>** | **<u>EXHIBIT</u>** |
| A. | Aircraft Configuration....................................................................SA-3 |
| B. | Aircraft Delivery Requirements and Responsibilities |

---

---

| | |
|:---|:---|
| **<u>SUPPLEMENTAL EXHIBITS</u>** | **<u>SUPPLEMENTAL EXHIBITS</u>** |
| AE1. | Airframe and Optional Features Escalation Adjustment |
| BFE1. | BFE Variables.............................................................................SA-4 |
| CS1. | Customer Support Variables |
| EE1. | Engine Escalation Adjustment, Engine Warranty and Patent Indemnity |
| SLP1. | Service Life Policy Components |

---

**P.A. 04749&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SA-6**

------

****TABLE OF CONTENTS**, CONTINUED**

**<u>LETTER AGREEMENTS</u>**

LA-1706513&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Performance Guarantees

LA-1707908&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Miscellaneous Matters.....................................................................SA-2

LA-1707910&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Airworthiness Directive Cost Materials and Labor

LA-1707960&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Installation of Cabin Systems Equipment........................................SA-3

**LA-1707961R3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Flexible Delivery Rights...................................................................SA-6**

LA-1707962&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-e-Enabling Software Matters-787

LA-1707963&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-EULA Special Matters

LA-1707964&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Liquidated Damages Non-Excusable Delay

LA-1707965&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Open Configuration Matters

**LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Advance Payment Matters...............................................................SA-6**

LA-1707967&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Post-Delivery Software and Data Loading-787

LA-1707969&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Spare Parts Initial Provisioning

**LA-1708012R4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Special Matters................................................................................SA-6**

LA-1708014&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Aircraft Model Substitution

LA-1708015R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Purchase Rights..............................................................................SA-2

LA-1708016&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Remedy Block Fuel

LA-1708017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-AGTA Terms Updates......................................................................SA-2

**LA-1708019R2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Flex Weight Program.......................................................................SA-6**

**LA-1708022R2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Cap and Share Escalation Program................................................SA-6**

**P.A. 04749&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SA-6**

------

****TABLE OF CONTENTS**, CONTINUED**

LA-1708023&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Confidential Matters

LA-1708025&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Promotional Support........................................................................SA-3

LA-1708026R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Aircraft Pre-Delivery Storage Agreement.........................................SA-4

LA-1708070&nbsp;&nbsp;&nbsp;&nbsp;LA-Request for Boeing to Act as Importer of Record for Buyer-Furnished Equipment.............................................................................................SA-5

**P.A. 04749&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SA-6**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO ITEM 601(b)(10)(iv) WHEREBY CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED: [\*\*\*]

HWI-PA-04749-LA-1707961R3

Hawaiian Airlines, Inc.

Honolulu International Airport

PO Box 30008

Honolulu, HI 96820-0008

Subject:&nbsp;&nbsp;&nbsp;&nbsp;Flexible Delivery Rights

Reference:&nbsp;&nbsp;&nbsp;&nbsp;Purchase Agreement No. PA-04749 (**Purchase Agreement**) between The Boeing Company (**Boeing**) and Hawaiian Airlines, Inc. (**Customer**) relating to Model 787-9 aircraft (**Aircraft**)

This letter agreement (**Letter Agreement**) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement will have the same meaning as in the Purchase Agreement.

1.<u>Flexible Delivery Rights</u>.

At the time of Supplemental Agreement No. 6 to the Purchase Agreement, Customer and Boeing have agreed to the delivery schedule of twelve (12) Aircraft as described in Table 1. As a condition of the business considerations provided under Supplemental Agreement No. 6, Boeing will provide Customer with [\*\*\*], as of the date of this Letter Agreement (**Flexible Delivery Rights**), subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1[\*\*\*]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2[\*\*\*]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 1

**BOEING PROPRIETARY**

------

![boeing.jpg](boeing.jpg)

2.<u>Written Notice</u>.

Customer must notify Boeing in writing no later than [\*\*\*] months prior to the [\*\*\*].

3.<u>Confidentiality</u>.

Customer and Boeing understand that certain commercial and financial information contained in this Letter Agreement are considered by Boeing and Customer as confidential and are subject to the terms and conditions set forth in Letter Agreement No. HWI-PA-04749-LA-1708023.

Very truly yours,

---

| | |
|:---|:---|
| THE BOEING COMPANY | THE BOEING COMPANY |
| By | |
| Its | Attorney-In-Fact |
| ACCEPTED AND AGREED TO this | ACCEPTED AND AGREED TO this |
| Date: | Date: |
| HAWAIIAN AIRLINES, INC. | HAWAIIAN AIRLINES, INC. |
| By | |
| Its | |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 2

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO ITEM 601(b)(10)(iv) WHEREBY CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED: [\*\*\*]

HWI-PA-04749-LA-1707966R1

Hawaiian Airlines, Inc.

Honolulu International Airport

PO Box 30008

Honolulu, HI 96820-0008

Subject:&nbsp;&nbsp;&nbsp;&nbsp;Advance Payment Matters

Reference:&nbsp;&nbsp;&nbsp;&nbsp;Purchase Agreement No. 04749 (**Purchase Agreement**) between The Boeing Company (**Boeing**) and Hawaiian Airlines, Inc. (**Customer**) relating to Model 787-9 aircraft (**Aircraft**)

This letter agreement (**Letter Agreement**) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement will have the same meaning as in the Purchase Agreement.

1.<u>Alternative Advance Payment Schedule</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1Notwithstanding the Advance Payment Schedule contained in Table 1 of the Purchase Agreement, Customer may pay advance payments, according to the following schedule, for the ten (10) Aircraft on order as of the date of signing the Purchase Agreement, and for [\*\*\*].

**<u>Due Date of Payment</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Amount Due per Aircraft</u>**

**(Percentage times Advance Payment Base Price)**

Within [\*\*\*] of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

executing the Purchase Agreement

[\*\*\*] prior to the first&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

day of the scheduled delivery

month of the Aircraft

[\*\*\*] prior to the first&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

day of the scheduled delivery

month of the Aircraft

[\*\*\*] prior to the first&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

day of the scheduled delivery

month of the Aircraft

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 1

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

[\*\*\*] prior to the first&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

day of the scheduled delivery

month of the Aircraft&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Total&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2Notwithstanding the Advance Payment Schedule contained in Table 1 of the Purchase Agreement, for the two (2) Aircraft with [\*\*\*] added to the Purchase Agreement pursuant to Supplemental Agreement No. 6, Customer will pay advance payments according to the following schedule:

**<u>Due Date of Payment</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Amount Due per Aircraft</u>**

**(Percentage times Advance Payment Base Price)**

[\*\*\*]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

[\*\*\*] prior to the first&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

day of the scheduled delivery

month of the Aircraft

[\*\*\*] prior to the first&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

day of the scheduled delivery

month of the Aircraft

[\*\*\*] prior to the first&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

day of the scheduled delivery

month of the Aircraft&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Total&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]%

2.<u>Assignment</u>.

Notwithstanding any other provisions of the Purchase Agreement, the rights and obligations described in this Letter Agreement are provided to Customer in consideration of Customer becoming the operator of the Aircraft and cannot be assigned, in whole or in part, without the prior written consent of Boeing.

3.<u>Confidential Treatment</u>.

Customer and Boeing understand that certain commercial and financial information contained in this Letter Agreement are considered by Boeing and Customer as confidential and are subject to the terms and conditions set forth in Letter Agreement No. HWI-PA-04749-LA-1708023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 2

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

Very truly yours,

---

| | |
|:---|:---|
| THE BOEING COMPANY | THE BOEING COMPANY |
| By: |  |
| Its: | Attorney-In-Fact |
| ACCEPTED AND AGREED TO this | ACCEPTED AND AGREED TO this |
| Date: | Date: |
| HAWAIIAN AIRLINES, INC. | HAWAIIAN AIRLINES, INC. |
| By: |  |
| Its: |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 3

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO ITEM 601(b)(10)(iv) WHEREBY CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED: [\*\*\*]

HWI-PA-04749-LA-1708012R4

Hawaiian Airlines, Inc.

Honolulu International Airport

PO Box 30008

Honolulu, HI 96820-0008

Subject:&nbsp;&nbsp;&nbsp;&nbsp;Special Matters

References:&nbsp;&nbsp;&nbsp;&nbsp;1) Purchase Agreement No. PA-04749 (**Purchase Agreement**) between The Boeing Company (**Boeing**) and Hawaiian Airlines, Inc. (**Customer**) relating to Model 787-9 Aircraft (**Aircraft**);

2) Letter Agreement HWI-PA-04749-LA-1708014 entitled "Aircraft Model Substitution" (**Aircraft Model Substitution Letter**); and

3) Letter Agreement HWI-PA-04749-LA-1708015R1 entitled "Right to Purchase Additional Aircraft" (**Purchase Rights Letter**)

This letter agreement (**Letter Agreement**) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement shall have the same meaning as in the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1<u>Credit Memoranda</u>. In consideration of <u>[\*\*\*]</u>, at the time of delivery of each such Aircraft, unless otherwise noted, Boeing will provide to Customer the following credit memorandum:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1<u>[\*\*\*]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2<u>[\*\*\*]</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1<u>[\*\*\*]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2<u>[\*\*\*]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3<u>Fleet Transition Credit Memoranda</u>. In consideration of <u>[\*\*\*]</u>, Boeing will provide the following credit memoranda:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.1[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.2[\*\*\*]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.2.1[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 1

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.2.2&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.3[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.4[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.5[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.6[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.7[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.8[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4<u>Purchase Right Credit Memoranda</u>. In the event that Customer exercises Purchase Right Aircraft as defined in the Purchase Rights Letter, including the [\*\*\*] Purchase Right Aircraft to be purchased pursuant to Supplemental Agreement No. 6 to the Purchase Agreement, Boeing will provide to Customer the following credit memoranda.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4.1[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4.2[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4.3[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6[\*\*\*].

Table 1

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7[\*\*\*].

Table 2

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11[\*\*\*].

2.<u>Business Considerations Under Supplemental Agreement No. 4.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1Not Used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 2

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2Not Used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Assignment.</u> Unless otherwise noted herein, the Credit Memoranda described in this Letter Agreement are provided as a financial accommodation to Customer and in consideration of Customer's taking title to the Aircraft at time of delivery and becoming the operator of the Aircraft. This Letter Agreement and the Credit Memoranda described herein cannot be assigned, in whole or in part, without the prior written consent of Boeing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Confidentiality</u>. Customer and Boeing understand that certain commercial and financial information contained in this Letter Agreement are considered by Boeing and Customer as confidential and are subject to the terms and conditions set forth in Letter Agreement No. HWI-PA-04749-LA-1708023.

Very truly yours,

---

| | |
|:---|:---|
| THE BOEING COMPANY | THE BOEING COMPANY |
| By | |
| Its | Attorney-In-Fact |
| ACCEPTED AND AGREED TO this | ACCEPTED AND AGREED TO this |
| Date: | Date: |
| HAWAIIAN AIRLINES, INC. | HAWAIIAN AIRLINES, INC. |
| By | |
| Its | |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 3

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO ITEM 601(b)(10)(iv) WHEREBY CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED: [\*\*\*]

HWI-PA-04749-LA-1708019R2

Hawaiian Airlines, Inc.

Honolulu International Airport

PO Box 30008

Honolulu, HI 96820-0008

Subject:&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] Program

References:&nbsp;&nbsp;&nbsp;&nbsp;a) Purchase Agreement No. PA-04749 (**Purchase Agreement**) between The Boeing Company (**Boeing**) and Hawaiian Airlines, Inc. (**Customer**) relating to Model 787 aircraft (**Aircraft**)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Customer Services General Terms Agreement No. 2A (**CSGTA**) between Boeing and Customer

This letter agreement (**Letter Agreement**) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

Boeing understands that Customer's [\*\*\*]. In consideration of Customer purchasing and taking delivery of the Aircraft in accordance with the Purchase Agreement, Boeing is pleased to offer to Customer [\*\*\*].

Each Aircraft listed in Table 1 as of the date of signing of this Letter Agreement will be covered by this [\*\*\*] Program (**Program Aircraft**).

1.[\*\*\*] <u>Program Description and Requirements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1Under the [\*\*\*] Program, at delivery of each Program Aircraft Boeing will provide [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2[\*\*\*].

2.[\*\*\*].

[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1[\*\*\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 1

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2[\*\*\*].

3.<u>Removal of a Program Aircraft</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1Should a Program Aircraft cease to be operated by Customer due to sale, lease or any other disposition (**Departing Aircraft**), Customer will make reasonable efforts to notify Boeing no later than [\*\*\*] days prior to such disposal event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1[\*\*\*].

4.<u>Term</u>.

[\*\*\*].

5.<u>Termination of the</u> [\*\*\*] <u>Program</u>.

[\*\*\*]. In such case Customer remains obligated to pay any outstanding invoices.

6.<u>Regulatory Agency Approval</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2[\*\*\*].

7.<u>Assignment</u>.

Notwithstanding any other provisions of the Purchase Agreement, the rights and obligations described in this Letter Agreement are provided to Customer in consideration of Customer becoming the operator of the Aircraft and cannot be assigned, in whole or in part, without the prior written consent of Boeing.

8.<u>Confidentiality</u>.

Customer and Boeing understand that certain commercial and financial information contained in this Letter Agreement are considered by Boeing and Customer as confidential and are subject to the terms and conditions set forth in Letter Agreement No. HWI-PA-04749-LA-1708023.

Very truly yours,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 2

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

---

| | |
|:---|:---|
| THE BOEING COMPANY | THE BOEING COMPANY |
| By | |
| Its | Attorney-In-Fact |
| ACCEPTED AND AGREED TO this | ACCEPTED AND AGREED TO this |
| Date: | Date: |
| HAWAIIAN AIRLINES, INC. | HAWAIIAN AIRLINES, INC. |
| By | |
| Its | |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 3

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO ITEM 601(b)(10)(iv) WHEREBY CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED: [\*\*\*]

HWI-PA-04749-LA-1708022R2

Hawaiian Airlines, Inc.

Honolulu International Airport

PO Box 30008

Honolulu, HI 96820-0008

Subject:&nbsp;&nbsp;&nbsp;&nbsp;Cap and Share Escalation Program

Reference:&nbsp;&nbsp;&nbsp;&nbsp;Purchase Agreement No. 04749 (**Purchase Agreement**) between The Boeing Company (**Boeing**) and Hawaiian Airlines, Inc. (**Customer**) relating to Model 787-9 aircraft (**Aircraft**)

This letter agreement (**Letter Agreement**) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement will have the same meaning as in the Purchase Agreement.

1.<u>Definitions</u>.

**Airframe Price Adjustment** means the price adjustment as defined in Supplemental Exhibit AE1 to the Purchase Agreement.

**Capped Period** means the period beginning [\*\*\*] and continuing through [\*\*\*] (or, if later, the latest scheduled delivery month which may apply to the Aircraft following the exercise of any slide rights pursuant to LA-1707961R3).

**Escalation Forecast** means the bi-annual escalation forecast Boeing issues in February and August based on Boeing's then current ECI-W/ICI escalation formula.

**Escalation Notice** means the written communication from Boeing to Customer in accordance with Article 3.

**Program Aircraft** means each Aircraft in Table 1 of the Purchase Agreement as of the date of this Letter Agreement and any exercised Option or Purchase Right Aircraft scheduled to deliver within the Capped Period.

**Sharing Rate** means the Threshold Cap factor plus [\*\*\*] ([\*\*\*]%) of [\*\*\*]. The Sharing Rate factor will never exceed [\*\*\*].

**Threshold Cap** means [\*\*\*] as set forth in Attachment B.

**Midpoint Limit** means [\*\*\*] as set forth in Attachment B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 1

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

**Upper Limit** means [\*\*\*] as set forth in Attachment B.

2.<u>Applicability</u>.

Notwithstanding any other provision of the Purchase Agreement, the Escalation Adjustment for the Airframe Price and Optional Features Prices for each Program Aircraft during the Capped Period will be determined in accordance with this Letter Agreement.

3.<u>Notice of Airframe Price Forecast prior to Delivery</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1Between [\*\*\*] and [\*\*\*] months prior to a Program Aircraft scheduled delivery month, Boeing will review the Escalation Forecast [\*\*\*] in accordance with Attachment A. The Escalation Forecast period applicable to a given Program Aircraft is set forth in Attachment A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2If the Escalation Forecast projects that the escalation factor used in the Airframe Price Adjustment will be greater than the Upper Limit factor for the scheduled delivery month of a given Program Aircraft, then the Escalation Notice will, in Boeing's sole discretion, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1[\*\*\*] or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2provide Customer with the option of either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3If Boeing provides Customer the options described in Article 3.2.2, then Customer will notify Boeing in writing of its election of 3.2.2(i) or 3.2.2(ii) within [\*\*\*] business days of its receipt of such Escalation Notice from Boeing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.1If Customer elects option 3.2.2(ii), then the parties will have up to [\*\*\*] calendar days to [\*\*\*] for the specific Program Aircraft. If after [\*\*\*] calendar days, the parties fail to [\*\*\*], Customer may [\*\*\*]. If Customer elects to [\*\*\*], in accordance with this Article, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*], and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.2[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.3[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 2

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

4.<u>Airframe Price Adjustment at Delivery</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1[\*\*\*]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2[\*\*\*].

5.<u>Effect on Advance Payments</u>.

The amount and timing of advance payments Customer is required to pay to Boeing pursuant to the Purchase Agreement are unaffected by any terms set forth in this Letter Agreement.

6.<u>Applicability to Other Financial Consideration</u>.

[\*\*\*].

7.<u>Assignment</u>.

Notwithstanding any other provisions of the Purchase Agreement, the rights and obligations described in this Letter Agreement are provided to Customer in consideration of Customer becoming the operator of the Aircraft and cannot be assigned, in whole or in part, without the prior written consent of Boeing.

8.<u>Confidentiality</u>.

Customer and Boeing understand that certain commercial and financial information contained in this Letter Agreement are considered by Boeing and Customer as confidential and are subject to the terms and conditions set forth in Letter Agreement No. HWI-PA-04749-LA-1708023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 3

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

Very truly yours,

---

| | |
|:---|:---|
| THE BOEING COMPANY | THE BOEING COMPANY |
| By | |
| Its | Attorney-In-Fact |
| ACCEPTED AND AGREED TO this | ACCEPTED AND AGREED TO this |
| Date: | Date: |
| HAWAIIAN AIRLINES, INC. | HAWAIIAN AIRLINES, INC. |
| By | |
| Its | |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 4

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

**ATTACHMENT A** 

**ESCALATION FORECAST & ESCALATION NOTICE DATE**

---

| | | |
|:---|:---|:---|
| **Escalation Forecast** | **Applicable to Program Aircraft Delivering in Time Period** | **Escalation Notice Date** |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 5

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

**ATTACHMENT B**

**CUMULATIVE ANNUAL ESCALATION FACTORS – [\*\*\*]**

**BASE YEAR**

---

| | |
|:---|:---|
| **<u>Delivery Date</u>** | <u>[\*\*\*]</u>**<u>% Escalation Factors</u>** |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 6

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 7

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 8

**BOEING PROPRIETARY**

------

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

![boeing.jpg](boeing.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SA-6

HWI-PA-04749-LA-1707966R1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Page 9

**BOEING PROPRIETARY**

## Exhibit 10.44

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EXECUTION VERSION**

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO ITEM 601(b)(10)(iv) WHEREBY CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED: [\*\*\*]

**AIR TRANSPORTATION SERVICES AGREEMENT**

DATED AS OF OCTOBER 20, 2022

BETWEEN

HAWAIIAN AIRLINES, INC.

AND

AMAZON.COM SERVICES LLC

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **1.**&nbsp;&nbsp;&nbsp;&nbsp;**DEFINITIONS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **2.**&nbsp;&nbsp;&nbsp;&nbsp;**SERVICES** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;Services | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;Third Party Carriers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;Forecasts and Non-Binding Estimates | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;Service Levels; Reporting | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;Non-Reimbursable Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6&nbsp;&nbsp;&nbsp;&nbsp;Reimbursable Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7&nbsp;&nbsp;&nbsp;&nbsp;Fuel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8&nbsp;&nbsp;&nbsp;&nbsp;Ground Services | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9&nbsp;&nbsp;&nbsp;&nbsp;Training Provided by the Carrier | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10&nbsp;&nbsp;&nbsp;&nbsp;Schedule; Modifications | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11&nbsp;&nbsp;&nbsp;&nbsp;Aircraft Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[19](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12&nbsp;&nbsp;&nbsp;&nbsp;Operations for Third Parties | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[21](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13&nbsp;&nbsp;&nbsp;&nbsp;Force Majeure | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14&nbsp;&nbsp;&nbsp;&nbsp;Unavailability | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[23](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15&nbsp;&nbsp;&nbsp;&nbsp;Destruction or Casualty Loss of Aircraft | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[23](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16&nbsp;&nbsp;&nbsp;&nbsp;Sustainability; Fuel Conservation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[24](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17&nbsp;&nbsp;&nbsp;&nbsp;Reports, Audits and Record Retention | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[25](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18&nbsp;&nbsp;&nbsp;&nbsp;Information Technology Systems | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[25](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19&nbsp;&nbsp;&nbsp;&nbsp;Designated Point of Contact | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[25](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20&nbsp;&nbsp;&nbsp;&nbsp;Continuous Improvement | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[26](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21&nbsp;&nbsp;&nbsp;&nbsp;Aircraft Maintenance Technician | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[26](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22&nbsp;&nbsp;&nbsp;&nbsp;IATA BSP; Electronic Data Interchange | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[26](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23&nbsp;&nbsp;&nbsp;&nbsp;Livery | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[26](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24&nbsp;&nbsp;&nbsp;&nbsp;Maintenance Process. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[26](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **3.**&nbsp;&nbsp;&nbsp;&nbsp;**PAYMENT** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[28](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;Payment Amounts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[28](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;Start-Up Costs | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[28](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;Payment for Cancellation of Flights | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[29](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;Invoices and Payment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[29](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **4.**&nbsp;&nbsp;&nbsp;&nbsp;**TERM AND TERMINATION** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[29](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;Term; Renewal Option | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[29](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;Amazon Termination for Convenience | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[29](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;Amazon Early Termination Fee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[29](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;Payment of Amazon Early Termination Fee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[29](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;Hawaiian Termination for Convenience | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[30](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp;Events of Default; Remedies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[30](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7&nbsp;&nbsp;&nbsp;&nbsp;No Termination or Other Payment on Expiration | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[32](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |

---

i

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp;Work Orders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[32](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9&nbsp;&nbsp;&nbsp;&nbsp;Post-Expiration Agreement | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[33](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10&nbsp;&nbsp;&nbsp;&nbsp;Survival | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[33](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **5.**&nbsp;&nbsp;&nbsp;&nbsp;**REPRESENTATIONS AND WARRANTIES; COVENANTS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[33](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;Authority | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[33](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;Organization; Binding Agreement | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[33](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;Service Representations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[34](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;Proprietary Rights | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[34](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;Compliance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[34](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6&nbsp;&nbsp;&nbsp;&nbsp;Common Carrier | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[35](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7&nbsp;&nbsp;&nbsp;&nbsp;Filings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[35](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8&nbsp;&nbsp;&nbsp;&nbsp;No Liens | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[35](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9&nbsp;&nbsp;&nbsp;&nbsp;Flight Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[35](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10&nbsp;&nbsp;&nbsp;&nbsp;Trade Restrictions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[36](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **6.**&nbsp;&nbsp;&nbsp;&nbsp;**CONFIDENTIALITY; PROPRIETARY RIGHTS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[36](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[36](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;Publicity and Use Restrictions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[37](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;Work Product Ownership | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[37](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;Personal Information | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[37](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **7.**&nbsp;&nbsp;&nbsp;&nbsp;**DEFENSE/INDEMNITY** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[38](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **8.**&nbsp;&nbsp;&nbsp;&nbsp;**LOSS OR DAMAGE TO GOODS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[39](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;Liability Limit | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[39](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;Additional Coverage | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[40](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;Claims | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[40](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;Cooperation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[40](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **9.**&nbsp;&nbsp;&nbsp;&nbsp;**INSURANCE** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[40](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;Hawaiian Provider Insurance Coverage | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[40](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;Additional Policy Requirements | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[42](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;Amazon Insurance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[43](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **10.**&nbsp;&nbsp;&nbsp;&nbsp;**PERSONNEL; INDEPENDENT CONTRACTORS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[43](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;Relationship of the Parties | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[43](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;Personnel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[43](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;&nbsp;&nbsp;&nbsp;Subcontractors | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[44](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **11.**&nbsp;&nbsp;&nbsp;&nbsp;**TAXES** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[45](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **12.**&nbsp;&nbsp;&nbsp;&nbsp;**WORK ORDERS AND AMAZON AIRCRAFT LEASES/SUBLEASES** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[45](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1&nbsp;&nbsp;&nbsp;&nbsp;Committed Aircraft | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[45](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2&nbsp;&nbsp;&nbsp;&nbsp;Additional Aircraft | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[46](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3&nbsp;&nbsp;&nbsp;&nbsp;Amazon Aircraft Configuration | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[46](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| **13.**&nbsp;&nbsp;&nbsp;&nbsp;**GENERAL** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[46](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1&nbsp;&nbsp;&nbsp;&nbsp;Assignment by Hawaiian Providers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[46](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2&nbsp;&nbsp;&nbsp;&nbsp;Assignment by Amazon | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[47](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |

---

ii

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3&nbsp;&nbsp;&nbsp;&nbsp;Governing Law/Venue | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[47](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4&nbsp;&nbsp;&nbsp;&nbsp;Notices | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[47](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5&nbsp;&nbsp;&nbsp;&nbsp;Amendment and Waiver | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[47](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6&nbsp;&nbsp;&nbsp;&nbsp;Remedies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[48](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7&nbsp;&nbsp;&nbsp;&nbsp;Construction | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[48](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8&nbsp;&nbsp;&nbsp;&nbsp;Third Party Shippers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[48](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9&nbsp;&nbsp;&nbsp;&nbsp;Work Orders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[49](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10&nbsp;&nbsp;&nbsp;&nbsp;Hazardous Materials Notifications | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[49](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11&nbsp;&nbsp;&nbsp;&nbsp;Counterparts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[49](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.12&nbsp;&nbsp;&nbsp;&nbsp;Limitations of Liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[49](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[50](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.14&nbsp;&nbsp;&nbsp;&nbsp;Cooperation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[52](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.15&nbsp;&nbsp;&nbsp;&nbsp;Further Assurances | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[52](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.16&nbsp;&nbsp;&nbsp;&nbsp;Priority Over Standard Forms | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[52](#id2ad905ec96f41c7b19d2bdcc28297ff_4) |

---

Exhibit A: Committed Aircraft

Exhibit B: Form of Work Orders

Exhibit B-1:&nbsp;&nbsp;&nbsp;&nbsp;Form of CMI Work Order

Exhibit B-2:&nbsp;&nbsp;&nbsp;&nbsp;Form of ACMI Work Order

Exhibit B-3:&nbsp;&nbsp;&nbsp;&nbsp;Form of Blocked Space Work Order

Exhibit B-4:&nbsp;&nbsp;&nbsp;&nbsp;Form of Ground Services Work Order

Exhibit C: Performance Standards

Exhibit D: Invoices; Payments; Deposits; Weekly Activity Statements

Exhibit E: Price Schedule

Exhibit F: Flight Schedule

Exhibit G: USPS Provisions

Exhibit H: Third Party Information Security Requirements

Exhibit I:&nbsp;&nbsp;&nbsp;&nbsp;Form of Sublease for Amazon Aircraft

Exhibit J:&nbsp;&nbsp;&nbsp;&nbsp;Baseline Configuration

iii

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>AIR TRANSPORTATION SERVICES AGREEMENT</u>**

This Air Transportation Services Agreement, attached Exhibits and Schedules, and applicable Work Orders (collectively, this "<u>Agreement</u>") dated as of October 20, 2022 ("<u>Effective Date</u>") is entered into between Hawaiian Airlines, Inc., a corporation organized and existing under the laws of the State of Delaware ("<u>Hawaiian</u>"), and Amazon.com Services LLC, a limited liability company organized and existing under the laws of the State of Delaware ("<u>Amazon.com Services</u>").

**RECITALS**

Hawaiian, through the Hawaiian Providers (as defined in <u>Section 1</u>), provides air cargo transportation and related services;

Amazon operates an international e-commerce business distribution network;

The Parties desire to enter into an arrangement for Hawaiian to provide air cargo transportation and related services to Amazon pursuant to the terms and conditions of this Agreement; and

The Parties also desire to have Hawaiian issue warrants to Amazon.com, Inc. (a Delaware corporation of which Amazon.com Services and its Affiliates are wholly owned subsidiaries) to purchase shares representing a total of [\*\*\*] of Hawaiian's common stock.

In consideration of the premises, and of the representations, warranties, covenants, and agreements set forth herein, and intending to be legally bound, the signatories to this Agreement agree as set forth herein.

**<u>AGREEMENT</u>**

**1.<u>DEFINITIONS</u>**

"<u>ACMI Services</u>" means Services provided by a Carrier under an ACMI Work Order on an aircraft, crew, maintenance, and insurance basis using the dedicated cargo capacity of an entire Hawaiian Aircraft.

"<u>ACMI Work Order</u>" means a Work Order in the form of <u>Exhibit B-2</u>.

"<u>Additional Aircraft</u>" means any Aircraft not listed in <u>Exhibit A</u> that becomes subject to an ACMI or CMI Work Order after the Effective Date.

"<u>Additional Insureds</u>" is defined in <u>Section 9.2</u>.

"<u>Additional [\*\*\*] Spare Parts</u>" is defined in <u>Section 2.6.13</u>.

"<u>Affiliate</u>" means, with respect to a specified entity, any other entity that, directly or indirectly, controls, is controlled by, or is under common control with such specified entity,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

where "<u>control</u>" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, or otherwise.

"<u>Agreed Value</u>" means: [\*\*\*].

"<u>Agreement</u>" is defined in the Preamble, as it may be amended, amended and restated, or supplemented from time to time in accordance with the terms of this Agreement.

"<u>Aircraft</u>" means any Amazon Aircraft or Hawaiian Aircraft used to provide the Services.

"<u>Amazon</u>" means collectively, unless otherwise specified, Amazon.com Services and any of its Affiliates for which a Hawaiian Provider performs Services pursuant to a Work Order in accordance with <u>Section 13.9</u>.

"<u>Amazon Aircraft</u>" means an Aircraft that is owned by or leased to Amazon and leased or subleased to a Carrier under this Agreement.

"<u>Amazon Aircraft Heavy Maintenance</u>" means [\*\*\*]

"<u>Amazon Aircraft Lease</u>" means a lease for an Amazon Aircraft entered into between Amazon (or one of its Affiliates) and a Carrier under this Agreement, in a form to be mutually agreed containing industry standard commercial terms, subject to and incorporating, as applicable, the requirements of any financing party.

"<u>Amazon Aircraft Lease/Sublease</u>" means, as applicable: (a) an Amazon Aircraft Lease if the Aircraft is owned by Amazon or an Amazon Affiliate; or (b) or Amazon Aircraft Sublease if the Aircraft is owned by a third party and leased to Amazon or an Amazon Affiliate.

"<u>Amazon Aircraft Sublease</u>" means a sublease for an Amazon Aircraft entered into between Amazon (or one of its Affiliates) and a Carrier under this Agreement, which will be in the form of <u>Exhibit I</u> for the Committed Aircraft and any Additional Aircraft with the same head lessor, or, for any Additional Aircraft with a different head lessor, in a form to be mutually agreed containing industry standard commercial terms, subject to and incorporating, as applicable, the requirements of Amazon's third party lessor and any financing party.

"<u>Amazon Early Termination Fee</u>" is defined in <u>Section 4.3</u>.

"<u>Amazon Indemnified Parties</u>" is defined in <u>Section 7.1</u>.

"<u>Amazon Leadership Representative</u>" means a Director of Amazon, a Vice President of Amazon, or such individual(s) as Amazon may designate from time to time in writing to Hawaiian.

"<u>Amazon Parties</u>" is defined in <u>Section 9.1.5</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

"<u>Amazon Reports and Electronic Communications</u>" is defined in <u>Section 2</u> of <u>Exhibit C</u>.

"<u>Amazon Spare Request</u>" is defined in <u>Section 2.11.3</u>.

"<u>Amazon Subcontractor Claim</u>" is defined in <u>Section 10.3</u>.

"<u>Amazon.com Services</u>" is defined in the Preamble.

"<u>APU</u>" means auxiliary power unit.

"<u>Arrival Performance</u>" is defined in <u>Section 4.1</u> of <u>Exhibit C</u>.

"<u>Availability Window</u>" is defined in <u>Section 2.11.4</u>.

"<u>Baseline Configuration</u>" means, for the applicable Aircraft type, the Baseline Configuration included in <u>Exhibit J</u>.

"<u>Blocked Space</u>" is defined in the applicable Blocked Space Work Order.

"<u>Blocked Space Arrival Performance</u>" is defined in the applicable Blocked Space Work Order.

"<u>Blocked Space Performance Standards</u>" is defined in the applicable Blocked Space Work Order.

"<u>Blocked Space Services</u>" means Services provided by Hawaiian under a Blocked Space Work Order on a blocked space basis using less than the full cargo capacity of a Hawaiian Aircraft and, as well as all necessary Ground Services.

"<u>Blocked Space Work Order</u>" means a mutually agreed Work Order in the form of <u>Exhibit B-3</u>.

"<u>Block Hour</u>" means each hour that the Aircraft is operated on a flight in the performance of the Services, computed from removal of the wheel chocks from the front of the Aircraft until the placement of wheels chocks in front of the Aircraft at the end of such flight and rounded to the nearest tenth of an hour.

"<u>Business Days</u>" is defined in <u>Section 13.7</u>.

"<u>CAA</u>" means, as applicable, the United States Federal Aviation Administration, United States Department of Transportation, United States Transportation Security Administration, and any other Governmental Entity that has control or supervision of civil aviation in a country or jurisdiction over a Carrier, an Aircraft, or the Services.

"<u>Cargo Recovery Time</u>" is defined and set forth in the applicable Blocked Space Work Order.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

"<u>Cargo Services</u>" means, as applicable: (a) unloading Amazon's (or any Amazon designee's) cargo from the ground transportation vehicle; (b) loading the cargo onto Amazon's ground transportation vehicle at destination; (c) documentation check; (d) container build/break; (e) warehousing; (f) providing all cargo handling Personnel and equipment (including ULDs); and (g) X-ray and all screening as required by applicable Laws.

"<u>Cargo Tender Time</u>" is defined and set forth in the applicable Blocked Space Work Order.

"<u>Carrier</u>" is defined in <u>Section 2.2</u>.

"<u>Carrier's Costs</u>" is defined in <u>Exhibit E</u>.

"<u>Carrier Delay</u>" is defined in <u>Exhibit C</u>.

"<u>Carrier Work Order</u>" is defined in <u>Section 2.2</u> and, for clarity, includes ACMI Work Orders, CMI Work Orders, and Blocked Space Work Orders.

"<u>Change of Control</u>" means, with respect to Hawaiian: (a) the acquisition of ownership, directly or indirectly, beneficially or of record, in a transaction or series of transactions of equity securities in Hawaiian representing more than 50% of either the aggregate voting power or the aggregate equity value represented by the issued and outstanding equity securities in same, whether as a result of a merger, consolidation, reorganization (including under the any applicable bankruptcy or insolvency laws), stock purchase transaction, issuances of equity securities or otherwise, by any other Person or group of other Persons; (b) a sale, assignment, transfer, contribution or other disposition, directly or indirectly, of all or substantially all of the property, business, or assets of Hawaiian to any other Person or group of other Persons; or (c) the dissolution or liquidation of Hawaiian.

"<u>CMI Services</u>" means Services provided by a Carrier under a CMI Work Order on a crew, maintenance, and insurance basis using an Amazon Aircraft.

"<u>CMI Work Order</u>" means a Work Order in the form of <u>Exhibit B-1</u>.

"<u>Claims</u>" is defined in <u>Section 7.1</u>.

"<u>Committed Aircraft</u>" means the Amazon Aircraft listed in <u>Exhibit A</u>.

"<u>Common Carrier</u>" means any Person that is in the regular business of providing transportation services or transporting freight (as distinguished from a private carrier that only transports occasionally or as a one-time-only event).

"<u>Compliance Requirements</u>" is defined in <u>Section 5.5</u>.

"<u>Contract Year</u>" means each period during the Term of this Agreement beginning October 20 through the next following October 19.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

"<u>EHM Data</u>" is defined in <u>Section 2.24.4</u>.

"<u>Effective Date</u>" is defined in the Preamble.

"<u>ETOPS</u>" is defined in <u>Section 2.5.1</u>.

"<u>Event of Default</u>" is defined in <u>Section 4.6</u>.

"<u>Excluded Claims</u>" is defined in <u>Section 8.1</u>.

"<u>Expiration Date</u>" is defined in <u>Section 4.8</u>.

"<u>Excluded Claims</u>" is defined in <u>Section 8.1</u>.

"<u>Fixed Monthly Charge</u>" is defined in the Price Schedule.

"<u>Flight Crew</u>" means a flight crew consisting of one captain and one first officer.

"<u>Flight Cycle</u>" means a cycle consisting of one takeoff and one landing.

"<u>Flight Operations Requirements</u>" is defined in <u>Section 5.9</u>.

"<u>Flight Schedule</u>" is defined in <u>Section 2.10.1</u>.

"<u>Force Majeure</u>" is defined in <u>Section 2.13</u>.

"<u>Fuel Charges</u>" is defined in <u>Section 2.6.1</u>.

"<u>Fuel Optimization Program</u>" means Hawaiian's fuel optimization program provided to Amazon by Hawaiian on September 30, 2022.

"<u>GOM</u>" means a Carrier's CAA-approved Ground Operations Manual.

"<u>Governmental Entity</u>" means: (a) any national government, any political subdivision thereof, or local authority therein, whether foreign or domestic; (b) any agency, board, commission, department, division, organ, instrumentality, or court of any of the foregoing, however constituted; and (c) any organization, association, or institution, of which any of the foregoing is a member or to whose jurisdiction it is subject or in whose activities it is a participant.

"<u>GPU</u>" means ground power unit.

"<u>Ground Handling Services</u>" means: (a) transportation of cargo to and from warehouse storage to Aircraft (i.e., airside); (b) ground handling of Aircraft (including aircraft load and unload); (c) fueling of aircraft; (d) ramp handling; and (e) all aircraft weight and balance.

"<u>Ground Services</u>" means both Ground Handling Services and Cargo Services.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

"<u>Ground Services Work Order</u>" is defined in <u>Section 2.8.1</u>.

"<u>Hawaiian</u>" is defined in the Preamble.

"<u>Hawaiian ACMI Aircraft</u>" means a Hawaiian Aircraft subject to an ACMI Work Order.

"<u>Hawaiian Aircraft</u>" means an Aircraft provided by Hawaiian or a Hawaiian Affiliate to be used in connection with the performance of the Services.

"<u>Hawaiian C Check Costs</u>" means [\*\*\*].

"<u>Hawaiian Early Termination Fee</u>" is defined in <u>Section 4.5</u>.

"<u>Hawaiian Indemnified Parties</u>" is defined in <u>Section 7.3</u>.

"<u>Hawaiian Providers</u>" means collectively, unless otherwise specified, any Hawaiian Affiliate that performs Services for Amazon pursuant to a Work Order in accordance with <u>Section</u> <u>13.9</u>.

"<u>Hazardous Materials</u>" is defined in <u>Section 13.10</u>.

"<u>Hawaiian Maintenance</u>" means any maintenance services that are not specifically Amazon Aircraft Heavy Maintenance.

"<u>Hawaiian Subcontractor Claim</u>" is defined in <u>Section 10.3</u>.

"<u>Heavy Maintenance Plan</u>" is defined in <u>Section 2.24.2</u>.

"<u>IATA</u>" means the International Air Transportation Association.

"<u>ICAO</u>" means the International Civil Aviation Organization.

"<u>Income Taxes</u>" is defined in <u>Section 11</u>.

"<u>Initial Term</u>" is defined in <u>Section 4.1</u>.

"<u>In-Service Date</u>" means the date that Hawaiian actually begins operating an Aircraft on flights in the Amazon network (including as a Network Spare).

"<u>Insurance Requirements</u>" is defined in <u>Section 9.2</u>.

"<u>KPI</u>" is defined and set forth in the applicable Ground Services Work Order.

"<u>Law</u>" means: (a) any statute, regulation, by-law, ordinance, or subordinate legislation in force to which a Party is subject; (b) the common law as applicable to the Parties; (c) any binding court order, judgment, or decree to which a Party is subject; (d) any applicable industry code, policy or standard, in each case enforceable by law; (e) any applicable treaty or convention

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ratified by any applicable Governmental Entity, including the Convention for the Unification of Certain Rules Relating to International Carriage by Air signed in Warsaw, Poland on 12 October 1929, as amended, and the Convention for the Unification of Certain Rules for International Carriage by Air signed in Montreal, Canada on 28 May 1999, as amended; and (f) all applicable statutory and all other rules, guidance regulations, instruments and provisions in force including the rules, codes of conduct, codes of practice, practice requirements guidance, and accreditation terms stipulated by any Governmental Entity to which any Party is subject (for clarity, including rules of air navigation services providers and airport authorities).

"<u>Maintenance Data</u>" means Aircraft maintenance data for each Aircraft, including current maintenance status, Flight Crew and maintenance log pages, ACARS data, Aircraft minimum equipment list, engineering order database, maintenance program manual, maintenance planning, gateway capabilities (including staffing, qualifications, capabilities, tooling, equipment, and spare parts at each gateway), tracking of materials for scheduled and unscheduled maintenance, Aircraft trend analysis and reliability data, and engine performance data, in each case including data extraction capability, if available.

"<u>Maintenance Fuel</u>" means any aircraft fuel used outside of the loading/unloading process and in connection with Hawaiian Maintenance (e.g., for engine runs or to power the APU), calculated using a deemed fuel burn rate of [\*\*\*] lbs. of fuel per hour.

"<u>Monthly Disincentive Credit</u>" is defined in <u>Section 4.1</u> of <u>Exhibit C</u>.

"<u>Monthly Incentive Bonus</u>" is defined in <u>Section 4.1 of Exhibit C</u>.

"<u>Monthly Invoice</u>" is defined in <u>Section 4 of Exhibit D</u>.

"<u>NDA</u>" is defined in <u>Section 6.1</u>.

"<u>Network Spare</u>" is defined in <u>Section 2.11.4</u>.

"<u>NTSB</u>" means the National Transportation Safety Board.

"<u>OEM</u>" means for any Aircraft, engine, or part or component thereof, the original equipment manufacturer.

"<u>Operating Authority</u>" is defined in <u>Section 5.9</u>.

"<u>ORR</u>" is defined in <u>Section 2.24.4</u>.

"<u>Party</u>" means Hawaiian and Amazon.com Services and, as applicable, any Hawaiian Provider or Amazon Affiliate to the extent that such Hawaiian Provider or Amazon Affiliate is a party to a current Work Order.

"<u>Performance Standards</u>" is defined in <u>Section 2.4</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

"<u>Person</u>" means any body, corporate entity, association, partnership, joint venture, organization, individual, business or other trust or any other entity or organization of any kind or character, including a court or other Governmental Entity.

"<u>Personal Information</u>" is defined in <u>Section 6.4</u>.

"<u>Personnel</u>" means the employees, contractors, subcontractors, agents, and representatives of an entity.

"<u>Post-Expiration Agreement</u>" is defined in <u>Section 4.9</u>.

"<u>Price Schedule</u>" means: (a) with respect to CMI Work Orders, the Price Schedule attached as <u>Exhibit E</u> to this Agreement; and (b) with respect to all other Work Orders, the Price Schedule attached to such Work Order.

"<u>Proprietary Rights</u>" is defined in <u>Section 5.4</u>.

"<u>Records</u>" is defined in <u>Section 2.17</u>.

"<u>Retained Intellectual Property</u>" is defined in <u>Section 6.3</u>.

<u>[\*\*\*]</u>

"<u>Scheduling Constraints</u>" means, collectively: [\*\*\*].

"<u>Security Programs</u>" is defined in <u>Section 2.8.3</u>.

"<u>Services</u>" is defined in <u>Section 2.1</u>.

"<u>Services Commencement Date</u>" means the date that Hawaiian will begin providing Services using an Aircraft and, with respect to the Committed Aircraft, is listed in <u>Exhibit A</u>.

"<u>SGHA</u>" is defined in <u>Section 2.8.1</u>.

"<u>SLA</u>" is defined and set forth in the applicable Ground Services Work Order.

"<u>Spare Aircraft</u>" is defined in <u>Section 2.11.3</u>.

"<u>Start-Up Costs</u>" is defined in <u>Section 3.2</u>.

"<u>Substitute Aircraft</u>" is defined in <u>Section 2.11.1</u>.

"<u>Supplemental Blocked Space</u>" is defined in the applicable Blocked Space Work Order.

"<u>Supplemental Flying</u>" is defined in <u>Section 2.12</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

"<u>Target Arrival Performance</u>" is defined in <u>Exhibit C</u>.

"<u>Taxes</u>" is defined in <u>Section 11</u>.

"<u>Temporary Schedule Change</u>" is defined in <u>Section 2.10.3</u>.

"<u>Term</u>" means the Initial Term and any renewal terms for which this Agreement may be extended pursuant to <u>Section 4.1</u>.

"<u>Third Party Carrier</u>" is defined in <u>Section 2.2</u>.

"<u>Third Party Charters</u>" is defined in <u>Section 2.12.2</u>.

"<u>Third Party Shipper</u>" is defined in <u>Section 13.8</u>.

"<u>Training</u>" is defined in <u>Section 2.9</u>.

"<u>Transfer Taxes</u>" is defined in <u>Section 11</u>.

"<u>Unit Load Devices</u>" or "<u>ULDs</u>" is defined in <u>Section 5.9</u>.

"<u>Unscheduled Stop</u>" means an aircraft stop requested by Amazon that adds another destination/stop to a route contained in the Flight Schedule.

"<u>USPS</u>" is defined in <u>Section 2.8.11</u>.

"<u>USPS Prime Contracts</u>" is defined in <u>Section 2.8.11</u>.

"<u>Variable Charge Per Block Hour</u>" means the rate specified in the Price Schedule for each Block Hour (or portion thereof) flown by an Aircraft in the performance of the Services.

"<u>Variable Charge Per Cycle</u>" means the rate specified in the Price Schedule for each Flight Cycle flown by an Aircraft in the performance of the Services.

"<u>Variable Charges</u>" means, collectively, the amounts due for the Variable Charge Per Block Hour and the Variable Charge Per Cycle.

"<u>Weekly Activity Statement</u>" is defined in <u>Section 3</u> of <u>Exhibit D</u>.

"<u>Work Order</u>" means a Carrier Work Order, Ground Services Work Order, or any other work order entered into under this Agreement.

"<u>Work Order Aircraft</u>" is defined in the applicable ACMI Work Order or CMI Work Order.

"<u>Work Order Effective Date</u>" is defined in the applicable Work Order.

"<u>Work Order Services</u>" is defined in the applicable Work Order.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**2.<u>SERVICES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1<u>Services</u>. Hawaiian will provide, by itself or through Hawaiian Providers, the air cargo transportation, ground handling (as applicable), fuel, and other related services described in this <u>Section 2</u> and in the Work Orders entered into between Amazon and Hawaiian or any Hawaiian Provider (collectively, the "<u>Services</u>"). Other than Amazon Aircraft that Hawaiian may lease or sublease from Amazon and ground equipment or functions that Amazon may be responsible for pursuant to <u>Section 2.8</u>, Hawaiian and the Hawaiian Providers will provide all equipment, Personnel, hardware, software, systems, documentation, facilities, resources, and supplies required to perform the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2<u>Third Party Carriers</u>. With the prior written consent of an Amazon Leadership Representative (which may be granted or withheld in Amazon's sole discretion), Hawaiian may contract for the performance of Services with an appropriately certificated and licensed third party cargo air carrier (a "<u>Third Party Carrier</u>"). Hawaiian and any Third Party Carrier is referred to individually as a "<u>Carrier.</u>" References to Third Party Carriers in this Agreement do not imply that the use of Third Party Carriers will be permitted and, if Amazon consents to the use of a Third Party Carrier: (a) Amazon's payment obligations will not exceed the amount that would have been paid by Amazon had the flights been operated by Hawaiian under the relevant Carrier Work Order; and (b) Hawaiian will be solely responsible for the performance of the Third Party Carrier with respect to the determination of whether Hawaiian has met the Performance Standards. Hawaiian will remain jointly and severally responsible for the provision of Services notwithstanding any contracting of Services to any Third Party Carrier. Each Carrier performing CMI Services, ACMI Services, or Blocked Space Services under this Agreement will enter into a Carrier Work Order in the applicable form from <u>Exhibit B</u> (a "<u>Carrier Work Order</u>") and will be bound by the provisions of this Agreement with respect to such Carrier Work Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3<u>Forecasts and Non-Binding Estimates</u>. Except as expressly provided in this Agreement, Amazon makes no promises or representations whatsoever as to the amount of business Hawaiian or any of the Carriers can expect at any time under this Agreement. Amazon may give volume and other projections to Hawaiian or any Carrier, but any projections are speculative only and will not give rise to Amazon liability. Amazon may, in Amazon's sole discretion, engage the services of other companies that perform the same or similar services as those provided by Hawaiian and/or the Hawaiian Providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4<u>Service Levels; Reporting</u>. Hawaiian and the Hawaiian Providers will comply with the service levels, procedures, reporting requirements, tracking requirements, and other performance standards set forth in the attached <u>Exhibit C</u> or any applicable Carrier Work Order (the "<u>Performance Standards</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5<u>Non-Reimbursable Expenses</u>. Hawaiian (by itself or through the applicable Hawaiian Provider) will be responsible for and provide, or cause to be provided, the following Personnel, services, equipment, and other items at their expense, without reimbursement by Amazon:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.1Flight Crews which will: (a) possess current, valid licenses; (b) be fully qualified to operate the Aircraft on the Flight Schedule in compliance with all applicable Laws; (c) be employees of the Carrier; and (d) be qualified for Extended-range Twin-engine Operational Performance Standards ("<u>ETOPS</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.2For each Flight Crew: (a) operational oversight and training; (b) catering and meals; (c) visas, work permits, endorsements, airport ID/badges/access cards; and (d) compensation, benefits, transportation, hotel accommodations, uniforms, uniform cleaning, and per diem, as well as, for clarity, any increases in such expenses resulting from changes to, or in the interpretation of, the Carrier's collective bargaining agreement (unless directly attributable to a change in applicable Law relating directly to crew duty times and rest periods, in which case the Carrier will provide notice to Amazon of the specific change in applicable Law and supporting data and documentation that must be reasonably acceptable to Amazon);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.3All Hawaiian Maintenance and coordination and oversight of the scheduling, induction, maintenance provider management, and return to service of Aircraft in connection with all maintenance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.4Dispatch, flight planning, and flight-following services, including ARINC or other radio communications services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.5In-flight communications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.6Exterior cleaning of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.7Spare parts, including engine spare parts, avionics, rotables, expendables, tires, brakes, accessory items (including transportation costs), except to the extent that the spare parts are: (a) the responsibility of Amazon under <u>Sections 2.6.11</u>, <u>2.6.13</u>, or <u>2.6.14</u>, (b) replacement engine line replaceable units to the extent covered under Amazon's [\*\*\*] Program and not related to or arising out of an act or omission of a Carrier, or (c) otherwise subject to a separate agreement between the Parties, except that the Carrier may transport onboard each Aircraft, without charge: (y) a fly-away kit; and (z) aircraft parts and materials for the Aircraft on a reasonable, space-available basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.8All administrative and overhead services of the Carrier, including with respect to compliance with Laws and the provision of the authorizations, permits, and approvals, subject to <u>Sections 2.5.12</u> and <u>2.6.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.9All facilities necessary for the provision of the Services, except as otherwise provided by Amazon pursuant to <u>Section 2.8</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.10All existing ground equipment, including GPUs, towing/pushback equipment and air start units that are owned by Hawaiian or a Hawaiian Provider and located at the locations identified in the Flight Schedule, except that Amazon will be responsible for the operation, maintenance, and repair of such equipment to the extent that

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Amazon's responsibilities, if any, are expressly provided for under a Work Order, as described in <u>Section 2.8.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.11Maintenance Fuel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.12Compliance with the requirements of any applicable Governmental Entity (for clarity, including any pest control requirements, but excluding any requirements applicable to cargo before it is loaded on an Aircraft, which will be reimbursable by Amazon);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.13Services provided by Hawaiian under <u>Sections 2.7</u> or <u>2.8</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.14All Aircraft ferry and repositioning costs in connection with Blocked Space Services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.15Positioning or de-positioning of Aircraft (for clarity, including the use of a Network Spare as a Spare Aircraft) for delays or cancellations resulting from a Carrier Delay, and, except as specifically provided in <u>Section 2.6.7,</u> initial Aircraft positioning costs at the start of each ACMI Work Order and final de-positioning of an Aircraft subject to a terminated ACMI Work Order.

For clarity, this <u>Section 2.5</u> is in no way intended to limit Hawaiian's utilization of the Start-Up Costs with respect to items that are deemed non-reimbursable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6<u>Reimbursable Expenses</u>. Except to the extent provided in accordance with <u>Section 2.5</u>, a Work Order, or this <u>Section 2.6</u>, and without limiting its obligations under this Agreement, Hawaiian or the relevant Hawaiian Provider will provide or cause to be provided the Personnel, Services, equipment, and other items set forth in this <u>Section 2.6</u>, subject to reimbursement by Amazon to Hawaiian of the reasonable, documented out of pocket costs actually incurred and paid, directly or indirectly, by Hawaiian or the Hawaiian Provider to a third party that is not Hawaiian or one of its Affiliates (for clarity, the requirement that such costs be reasonable will not apply to expenses incurred indirectly by Hawaiian or any Hawaiian Provider that are reimbursable by Amazon pursuant to <u>Section 13.13.3</u> of this Agreement), which will be included in invoices provided in accordance with <u>Exhibit D</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.1Aircraft fuel (including taxes and environmental assessments, into-plane fees, and Amazon's pro rata portion of any consortium fees, but excluding Maintenance Fuel and net of any fuel tax credits or rebates received by Hawaiian or a Hawaiian Provider) for operations conducted under this Agreement, subject to the requirements of <u>Section 2.7</u> ("<u>Fuel Charges</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.2Enroute fees, air traffic control fees, navigational fees, and airport charges (slot application fees, ramp fees, parking fees, landing/departure fees);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.3Aircraft handling charges (including any airport concessions costs), including with respect to pushbacks, marshaling, lavatory, water, cleaning of cargo compartments, use of GPU, air start units, steps, and towing;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.4Deicing fluid and deicing services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.5Customs fees, permits, duties, and import/export fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.6All costs associated with diversions due to adverse weather or leaking, smoking, or damaged cargo to the extent tendered by Amazon in such condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.7Positioning or de-positioning of the Aircraft for Amazon Aircraft Heavy Maintenance, schedule changes not included in the Flight Schedule or other non-scheduled moves made at Amazon's request (for clarity, excluding any positioning or de-positioning flights resulting from a Carrier Delay), initial positioning of an Aircraft at the commencement of a CMI Work Order and final de-positioning of an Aircraft following termination of a CMI Work Order, and initial positioning of an Aircraft from any location in the United States at the commencement of an ACMI Work Order and final de-positioning of an Aircraft to any location in the United States following termination of an ACMI Work Order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.8[\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.9Noise and emission taxes, fees, and assessments not within the reasonable control of the Carrier and arising directly as a result of Services performed under a Carrier Work Order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.10Rent and any other amounts payable by the Carrier to Amazon under an Amazon Aircraft Lease/Sublease subject to the corresponding CMI or ACMI Work Order, except that the Parties may elect in writing to offset such amounts against those payable by Amazon to the Carrier so that no cash settlement is necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.11Amazon Aircraft Heavy Maintenance to the extent performed by or otherwise invoiced through (pursuant to the agreement of the Parties) a Hawaiian Provider. For clarity, except for the foregoing, all Amazon Aircraft Heavy Maintenance will be performed by a CAA-approved maintenance provider to be selected and contracted directly by Amazon, subject to approval by Hawaiian (not to be unreasonably withheld, delayed, or conditioned);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.12Any pass through of insurance costs in accordance with the Insurance Requirements as indicated on the Price Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.13[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.14[\*\*\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.15If requested by Amazon, charges for spare engines and APUs provided by Hawaiian during Amazon Aircraft Heavy Maintenance at Hawaiian's cost without markup (for clarity, if Amazon provides a spare engine or APU during Hawaiian Maintenance, Hawaiian will reimburse Amazon at Amazon's cost without markup).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Hawaiian will notify Amazon of its internal departments, Hawaiian Providers, or third party subcontractors, responsible for performance of Services and provision of assets under this <u>Section 2.6</u>, including reasonably requested details regarding those arrangements and operations. Hawaiian will use, and will cause the Hawaiian Providers to use, all commercially reasonable efforts to minimize costs and expenses pursuant to which Amazon has a direct or indirect reimbursement obligation under this Agreement and will invoice expenses to Amazon without markup and with the benefit of any discount received by Hawaiian or a Hawaiian Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7<u>Fuel</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.1<u>Fuel Purchasing</u>. Hawaiian will purchase aircraft fuel and into-plane services from fuel suppliers, distributors and into-plane providers to support the Services provided by the Carriers pursuant to the Agreement. Hawaiian will facilitate the establishment and maintenance of agreements and customer accounts between the Carriers and fuel suppliers, distributors and into-plane providers that are qualified by the Carriers at such locations and will arrange for the purchase of aircraft fuel and into-plane services in conjunction with the departure times and days specified in the Flight Schedule. Hawaiian will cause or arrange for the fuel suppliers, distributors and into-plane providers to invoice the Carriers directly for aircraft fuel and into-plane services. Notwithstanding the foregoing, Amazon may, by providing written notice to Hawaiian, elect to purchase fuel for the Aircraft at one or more locations. The Parties acknowledge and agree that any fuel provided to a Carrier by Amazon is provided "<u>as is</u>" and without warranty of any kind, including the warranties of merchantability and fitness for a particular purpose, by Amazon, and that no warranties by, through or under Amazon will be implied by Law, provided, however, that the Carrier will have the right to approve any fuel supplier selected by Amazon (such approval not to be unreasonably conditioned, delayed, or withheld) and. [\*\*\*]. To the extent Amazon elects to purchase fuel, Hawaiian: (a) hereby designates and authorizes Amazon and Amazon's Personnel to act as agents on behalf of each Carrier when purchasing fuel for the Aircraft; and (b) agrees to assist Amazon in obtaining exemptions from fuel taxes or other charges and promptly provide all documentation and take all steps reasonably requested by Amazon in connection with same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.2<u>Fuel Reconciliation</u>. Each month Hawaiian will prepare a fuel reconciliation log (with copies of relevant supporting documentation) on a weekly basis that will reflect the actual fuel used by the Aircraft in the provision of the ACMI Services and CMI Services, which Hawaiian will use to prepare invoices for fuel reimbursement under <u>Exhibit D</u> to this Agreement, as applicable. Hawaiian will also promptly provide a copy of the fuel reconciliation log to Amazon upon request. When an Aircraft enters service for Amazon under this Agreement (e.g., because it replaces or substitutes for another Aircraft, permanently or temporarily), or when an Aircraft leaves Amazon's service under this Agreement (e.g., because it is replaced, or because it was only temporarily substituting for another Aircraft) either Amazon or Hawaiian will reimburse the other for the cost of fuel in accordance with the following provisions of this <u>Section 2.7</u> but also subject to <u>Section 2.11.1</u> (Substitute Aircraft), <u>Section 2.11.3</u> (Spare Aircraft),

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

and <u>Section 2.11.4</u> (Network Spares). When an Aircraft begins being utilized in the performance of Services under an ACMI Work Order, Amazon will reimburse Hawaiian for the cost of fuel on board the Aircraft prior to its first departure flight in the provision of such Services. When a Hawaiian Aircraft ceases being utilized in the performance of CMI Services or ACMI Services, Hawaiian will reimburse Amazon for the cost of all fuel on board the Aircraft at its last arrival on a flight in the performance of such Services. The per gallon fuel price for the above calculations will be the price per gallon paid at the last refuel of the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8<u>Ground Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.1<u>Responsibility for Ground Services</u>. Amazon will be responsible for providing, at its cost, all Ground Services except as and to the extent provided by Hawaiian or a Hawaiian Provider at individual gateways as requested by Amazon. For all Ground Services, provided by a Hawaiian Provider the Parties will enter into one or more separate "<u>Ground Services Work Orders</u>" in the form of <u>Exhibit B-4</u>. For clarity, neither Hawaiian nor any Hawaiian Provider will be obligated to enter into any Ground Services Work Order. The pricing in Ground Services Work Orders will be mutually agreed and the pricing for Ground Services required in connection with Blocked Space Services will be included in the pricing for the Blocked Space Services. Hawaiian Providers entering into Ground Services Work Orders will be bound by the provisions of this Agreement with respect to such Ground Services Work Order, and Hawaiian will remain jointly and severally responsible for the provision of Services notwithstanding the contracting of Services to the Hawaiian Provider. Without limiting the provisions of any such Ground Services Work Order: (a) the Hawaiian Provider will notify Amazon of its internal departments, or its third party subcontractors, responsible for performance of services and provision of assets under this <u>Section 2.8</u>, including reasonably requested details regarding those arrangements and operations; and (b) Amazon will reimburse Hawaiian for the reasonable, documented out of pocket costs if any, actually incurred by the Hawaiian Provider in securing and providing ULDs and related equipment specifically requested by Amazon in writing for use in providing the Services. To the extent Ground Handling Services or deicing services are provided by Amazon through a subcontractor, the Carriers will enter into an IATA Standard Ground Handling Agreement with such subcontractor ("<u>SGHA</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.2<u>Personnel Training and Qualifications</u>. Unless Ground Services are being provided by a Hawaiian Provider under a Ground Services Work Order as described in <u>Section 2.8.1</u>, Amazon will ensure and require that all Personnel performing such ground handling and cargo handling functions are fully trained and qualified, and that all required training and evaluations are current and documented, in accordance with the relevant Carrier's CAA-approved programs and, further, that all equipment employed in providing such functions is serviceable, as determined in accordance with applicable CAA requirements and the Carrier's CAA-approved programs. Amazon's obligations under this <u>Section 2.8</u>, are subject to: (a) Carrier's compliance with its obligations under <u>Section 2.9</u>; and (b) Carrier providing Amazon with its GOM, Security Programs, and any other

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

manuals with which Amazon will have to comply [\*\*\*] days in advance of Amazon performing any Ground Services (or with respect to any amendments to same, with sufficient time to enable Amazon to timely train its Personnel on the amendment, but in any event no less than [\*\*\*] days in advance of the effective date of the amendment). The Carrier will provide a copy of any program (or amendment) for which CAA approval is required at the same time such program (or amendment) is submitted to the CAA and will advise Amazon in writing immediately upon receipt of approval and provide a copy of the final approved program (or amendment) and any conditions attached to such approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.3<u>Delegation of Security Functions</u>. To the extent necessary for Amazon to fulfill its obligations under this Agreement, each Carrier will delegate to Amazon, and Amazon will accept the delegation of, the cargo security inspection functions mandated by any CAA, including as prescribed in the Carrier's CAA-approved programs (collectively, "<u>Security Programs</u>"). Amazon will prepare and maintain logs of any such inspections in accordance with and to the extent required by the Security Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.4<u>Amazon Personnel as Agents of the Carrier</u>. To the extent necessary for Amazon to fulfill its obligations under this Agreement or any Work Order, Amazon and its Personnel are authorized to act as agents of the Carriers in connection with the issuance of airbills and other transportation documents, in the acceptance of materials and goods from shippers and in determining their suitability for air transportation and any other reasonably related matters. In such capacity, Amazon and its Personnel will be governed by and will act in compliance with the GOM, Security Programs, and applicable Law. Amazon and its Personnel will be authorized to act as an agent for each Carrier in determining whether to cause any materials or goods to be transported by the Carrier or to cause such materials or goods to be transported by any other air carrier on an interline or any other basis. Such authorization will include the power to complete and deliver interline manifests, airbills, or other required transportation documents. In such capacity, Amazon Personnel will meet or exceed the legal and regulatory requirements applicable to the Carrier in regard to employee training and qualifications for weight and balance, Hazardous Materials recognition, alcohol and drug testing, employee background checks, and similar matters, in accordance with applicable Laws for employees in safety sensitive positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.5<u>Procedures Under the GOM</u>. To the extent Amazon Personnel are performing the loading (including with respect to Hazardous Materials), weight and balance calculations, ramp operations, and fueling operations required by a CAA to be performed in connection with the ground handling functions, including the requirements under the GOM: (a) the Carrier will be entitled, upon [\*\*\*] Business Days' prior written notice to Amazon, to audit such employees, agents, and contractors as necessary to comply with CAA requirements; and (b) Amazon's Personnel will not become the employees of the Carrier as a consequence thereof, but will be acting as agents for the Carrier when performing such loading, weight and balance, ramp operations, and fueling operations or calculations. Any Personnel not qualified or capable of performing such

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

work will be identified to Amazon by the Carrier within [\*\*\*] Business Days following any such audit, and if requested to do so by the Carrier, such Personnel will be promptly removed from performing such work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.6<u>Transportation of Hazardous Materials</u>. Amazon will have the right to tender for transport on the Aircraft cargo of a dangerous, hazardous, or offensive nature if: (a) such cargo is properly identified, packed, marked, labeled, and placarded in accordance with applicable IATA and ICAO/CAA dangerous goods and hazardous materials regulations; (b) such transportation is in compliance with the GOM and all other applicable Laws; and (c) the Carrier is authorized by the CAA to carry such cargo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.7<u>Aircraft Payload; Limitations</u>. Except with respect to Blocked Space Services, the maximum cargo payload for each flight of the Aircraft will be calculated using Amazon's designated weight and balance software in accordance with applicable CAA-approved Aircraft limits. The actual cargo payload capable of being carried on the Aircraft will be limited by either the weight or volume depending on which is exhausted first. Operating conditions or applicable CAA requirements may result in an increase or decrease in payload weight or volume limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.8<u>Payload Reports</u>. Except with respect to Blocked Space Services, the Carriers will provide to Amazon: (a) preliminary maximum payload figures for each flight at least [\*\*\*] hours prior to the scheduled departure time set forth in the Flight Schedule; and (b) final maximum payload figures for each flight at least [\*\*\*] hours prior to the scheduled departure time set forth in the Flight Schedule. This information will be communicated to Amazon operations via email at the email address provided by Amazon and updated from time to time, and will use the most recent aviation forecasts for the scheduled departure time of the flight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.9<u>Tender of Cargo</u>. Cargo will be tendered by Amazon or any Amazon designee under the Carrier's air waybills, prepared, labeled, securely packaged, and ready for transportation by the Aircraft along with the: (a) shipment destination; (b) name and address of the recipient; (c) nature of the cargo; (d) particular marks/numbers used; (e) weight, quantity, volume, and dimensions of cargo; and (f) any special circumstances or handling information, and otherwise in accordance with all applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.10<u>Refusal to Transport</u>. The Carrier may reasonably refuse to transport any cargo that: (a) cannot be transported in accordance with <u>Sections 2.8.6</u>, <u>2.8.7</u>, or <u>2.8.9</u>; or (b) would otherwise reasonably endanger the safety or security of flight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.11<u>USPS Cargo</u>. Amazon has entered into an agreement and may enter into additional agreements (the "<u>USPS Prime Contracts</u>") with the United States Postal Service ("<u>USPS</u>") for the air transportation of USPS cargo on flights performed by Carriers under this Agreement. In connection with same, Hawaiian has reviewed and agrees that the Hawaiian Providers and their respective Personnel will comply, to the

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

extent applicable for the Services being performed by Hawaiian, with all of the requirements provided in this Agreement, including those listed in <u>Exhibit G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9<u>Training Provided by the Carrier</u>. Each Carrier will, upon [\*\*\*] days' prior written request by Amazon, [\*\*\*], provide, or cause to be provided training classes to qualify Amazon trainers (for clarity, including trainers from applicable Amazon vendors) to provide training to Amazon Personnel engaged in providing security, ground handling, and cargo handling functions in connection with the Services provided by the Carrier, including both initial, recurrent, and other required training in the Carrier's Security Programs, GOM, and other CAA-approved programs (collectively, "<u>Training</u>"). The Training will be held in [\*\*\*] or their surrounding areas and will be provided at no charge to Amazon, except that the Training may be held at a different location if mutually agreed and, in such case, Amazon will be responsible for the reasonable and documented travel expenses of Hawaiian Personnel that are required to provide the Training in accordance with Amazon's standard travel policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10<u>Schedule; Modifications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.1<u>Flight Schedule</u>. The Parties will mutually agree on the initial flight schedule prior to the commencement of CMI Services and ACMI Services, which flight schedule will be in the form attached hereto as <u>Exhibit F</u> (as subsequently amended in accordance with <u>Section 2.10.2</u>, the "<u>Flight Schedule</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.2<u>Amendments to the Flight Schedule</u>. Subject to the Scheduling Constraints, the Flight Schedule may be amended or replaced by Amazon in its sole discretion at any time. Unless a shorter period is mutually agreed, Amazon will provide Hawaiian with: (a) [\*\*\*] days' prior written notice of any proposed amendment to the Flight Schedule that requires the opening of a new station where Hawaiian does not have then-current flight operations or an increase of greater than [\*\*\*]% in the number of Flight Crews (in the aggregate) assigned to the then current Flight Schedule (or [\*\*\*] Flight Crews, whichever is greater); or (b) [\*\*\*] days' prior written notice of any other proposed amendment to the Flight Schedule. Hawaiian will incorporate such amendments into the Flight Schedule [\*\*\*] days (in the case of subsection (a)) or [\*\*\*] days (in the case of subsection (b)) after receipt of such notice from Amazon. To the extent that Hawaiian does not begin operating according to the amended Flight Schedule at that time, Amazon will be credited $[\*\*\*] for each day of delay on the next Monthly Invoice. Hawaiian must notify Amazon if it determines that any Flight Schedule is outside of the above parameters within [\*\*\*] Business Days of receipt of the Flight Schedule from Amazon, otherwise Hawaiian will be deemed to have accepted the Flight Schedule and waived any notice or other requirements hereunder. Hawaiian may only reject or request a change to Amazon's proposed amendments to the Flight Schedule on the basis that such proposed amendments do not comply with Scheduling Constraints, and, promptly after (but in any event within [\*\*\*] of providing its initial notification to Amazon), Hawaiian must provide a reasonably detailed written justification for such rejection or request for change, including references to the specific provisions of Hawaiian's collective bargaining agreements, any applicable Law and supporting data and documentation that must be acceptable to Amazon. Changes

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to the Flight Schedule will be electronically documented by Amazon and shared with Hawaiian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.3<u>Temporary Changes to the Flight Schedule</u>. Amazon may request temporary changes (including, for clarity, changes that are temporary because they do not meet the notice requirements in <u>Section 2.10.2</u>) in the departure time, the scheduled air routes, the frequency, Availability Windows, or the destinations or stops outlined in the Flight Schedule without amending the Flight Schedule, (such a change without amendment to the Flight Schedule a "<u>Temporary Schedule Change</u>"). Amazon will provide the relevant Carrier with prior written notice of each Temporary Schedule Change (including via email) and the Carrier will implement each Temporary Schedule Change as soon as reasonably practicable and will minimize any additional associated costs. The Carrier will promptly provide Amazon with its estimate of additional incremental costs that would arise from each proposed Temporary Schedule Change and, if Amazon determines to proceed with such Temporary Schedule Change after receiving such estimate, Amazon will reimburse Hawaiian for any additional incremental reasonable, documented out of pocket costs actually incurred by the Carrier arising from a Temporary Schedule Change in accordance with <u>Section 2.6</u> and <u>Exhibit D</u> of this Agreement, up to the amount of such estimate. For clarity, any change included in the Flight Schedule pursuant to <u>Section 2.10.2</u> will not be considered a Temporary Schedule Change under this <u>Section 2.10.3</u> regardless to the duration of such change. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.4<u>Unscheduled Stops</u>. For ACMI Services or CMI Services, the Carriers will make any commercially reasonable Unscheduled Stops, subject to: (a) the Flight Operations Requirements; (b) the requirements of the relevant Carrier's collective bargaining agreement; or (c) applicable Law. Amazon will reimburse Hawaiian for any additional incremental reasonable, documented out of pocket costs actually incurred by such Carrier arising from an Unscheduled Stop in accordance with <u>Section 2.6</u> and <u>Exhibit D</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11<u>Aircraft Operations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.1<u>Substitute Aircraft</u>. The Carriers may substitute for operation of the Flight Schedule any aircraft having the aggregate capacity and other performance characteristics reasonably necessary to handle the payload and timing requirements for such flights ("<u>Substitute Aircraft</u>"), except that: (a) such substitution will not interfere with performance of Services in compliance with this Agreement and the corresponding Carrier Work Order; (b) the Carriers will only provide such a Substitute Aircraft if Amazon approves of the substitution in writing (which will not be unreasonably withheld, delayed, or conditioned); and (c) the Carriers will reimburse Amazon for any landing fees or other costs (including incremental fuel burn, ferry flights and Variable Charges) in excess of those that Amazon would have incurred under <u>Section 2.6</u> had the flights been operated with the affected Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.2<u>Reserved</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.3<u>Spare Aircraft</u>. The Carriers may provide and operate one or more spare aircraft having the aggregate capacity and other performance characteristics reasonably necessary to handle the payload, flight schedule, and timing requirements for Carrier's flights ("<u>Spare Aircraft</u>") in substitution for an Aircraft that is unavailable to perform the Services under the Flight Schedule due to a Carrier Delay. In addition, each Carrier may make one or more Spare Aircraft available at Amazon's request ("<u>Amazon Spare Request</u>") to: (a) perform flights that are not part of the Flight Schedule (for clarity, including as a standby Network Spare); or (b) substitute for an Aircraft that is unavailable due to a reason that is not attributable to a Carrier Delay. In the event that an Aircraft is unavailable due to a Carrier Delay and the Carrier provides or uses a Spare Aircraft (for clarity, including the use of a Network Spare as a Spare Aircraft), the Carrier will reimburse Amazon for any landing fees or other costs (including incremental fuel burn, ferry flights and Variable Charges) in excess of those that Amazon would have incurred had the flights been operated with the affected Aircraft. In the event that a Spare Aircraft is unavailable to substitute for an Aircraft that is unavailable due to a Carrier Delay, then the resulting cancellation or delay will be factored into the calculation of Arrival Performance for the relevant period. Amazon will compensate the relevant Carrier at a mutually agreed per day rate, prorated for any portion thereof, for the use of a Spare Aircraft (by payment to Hawaiian) when the Carrier provides a Hawaiian Aircraft pursuant to an Amazon Spare Request. Except for the cost reimbursement and fees described in this <u>Section 2.11.3</u>, a Carrier's performance of the Services utilizing a Spare Aircraft in accordance with this Section will otherwise be subject to the terms and conditions of this Agreement. Hawaiian acknowledges that Amazon may source additional spare aircraft from and operated by Third Party Carriers, in which case the applicable Carrier will use its commercially reasonable efforts to coordinate (as applicable) with Amazon and the Third Party Carrier. For clarity, the Parties acknowledge that Hawaiian does not have a Spare Aircraft available as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.4<u>Network Spares</u>. Amazon may, in its sole discretion, designate one or more Aircraft (including any Spare Aircraft provided by a Carrier in response to an Amazon Spare Request) on the Flight Schedule to be available to provide backup or supplementary lift in support of Amazon's network (each, a "<u>Network Spare</u>"); provided, however, that Amazon will not designate an uncrewed Network Spare until [\*\*\*]. Hawaiian may use a Network Spare as a Substitute Aircraft or Spare Aircraft, except that: (a) such use will not interfere with the performance of Services in compliance with this Agreement; (b) Hawaiian will only use a Network Spare as a Substitute Aircraft or Spare Aircraft if an Amazon Leadership Representative provides prior written consent (which may be granted or withheld in Amazon's sole discretion); (c) Hawaiian will reimburse Amazon for any landing fees or other costs (including incremental fuel burn, ferry flights and Variable Charges) in excess of those that Amazon would have incurred had the flights been operated by the affected Aircraft, except that if a Network Spare is dispatched pursuant to <u>Section 2.11.4</u> and the flight which the Network Spare is covering is delayed such that it negatively affects the Arrival Performance calculation, then Amazon will be responsible for the cost of the ferry flight to position the Network Spare at the scheduled departure location; (d) <u>Section 2.11.1</u> (Substitute Aircraft) and <u>Section 2.11.3</u> (Spare

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Aircraft) will otherwise apply to Hawaiian's use of a Network Spare as a Substitute Aircraft or a Spare Aircraft; and (e) if directed by Amazon, Carrier will use the Network Spare as a Spare Aircraft to cover for an Aircraft that is unavailable due to a Carrier Delay, which use will not be considered an Amazon Spare Request. With respect to any Network Spare, Carrier will staff the Aircraft to be available to depart the airport listed in the Flight Schedule within [\*\*\*] minutes of Amazon's request during each Availability Window(s) specified in the Flight Schedule ("<u>Availability Window</u>"). Carrier will use commercially reasonable efforts to maximize the duration of the Availability Window and if, at any time, Carrier becomes aware that the Aircraft is not expected to be available for Amazon flights during an Availability Window, Carrier will promptly notify Amazon. If a Network Spare: (y) does not depart within [\*\*\*] minutes due to a Carrier Delay; or (z) is otherwise unavailable during an Availability Window due to a Carrier Delay (for clarity, including each subsequent day such Network Spare remains unavailable but excluding a situation in which such Network Spare is unavailable because it is being used by a Carrier as a Spare Aircraft to support an Amazon Spare Request), then Hawaiian will pay to Amazon an amount equal to [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.5<u>Intermediate Landings; Flight Disruptions</u>. If a Carrier determines that an intermediate landing is necessary due to Force Majeure, the Carrier will invoice and Amazon will reimburse reasonable and documented additional out of pocket costs incurred by the Carrier (including added Variable Charges, fuel, landing, aircraft handling costs, and ground handling costs) in accordance with <u>Section 2.6</u> and <u>Exhibit D</u> of this Agreement and any other costs will be for the account of Carrier. With respect to intermediate landings arising from a mechanical problem or technical failure of the Aircraft or any failure to meet the Compliance Requirements (including a diversion of the Aircraft or return of the Aircraft to the origin station) Amazon will pay only the Variable Charges and fuel charges as if the flight had been non-stop and according to the Flight Schedule so long as the flight is completed within [\*\*\*] of the arrival time set forth in the Flight Schedule, and the Carrier will pay the added fuel charges, landing fees, positioning and repositioning expenses, and other costs associated with such intermediate landing. If the flight is not completed within [\*\*\*] of the arrival time set forth in the Flight Schedule, then Carrier will be responsible for all Variable Charges and fuel charges. For clarity, Amazon will not be responsible for any Variable Charges with respect to Aircraft returning to the ramp before take-off caused by act or omission of the relevant Carrier, including mechanical problems or technical failure of the Aircraft or any failure to meet the Compliance Requirements and all other costs such as Aircraft handling charges arising from such circumstances will be borne by the Carrier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12<u>Operations for Third Parties</u>. The Carriers may use an Amazon Aircraft or a Hawaiian ACMI Aircraft to provide air cargo transportation services to third parties so long as: (a) such usage does not interfere in any material respect with the Carrier's performance of the Services; (b) the Carrier is not then in default under this Agreement; and (c) an Amazon Leadership Representative provides prior written consent (which may be granted or withheld in Amazon's sole discretion). If a Carrier arranges and provides air cargo transportation services to or for third parties using an Amazon Aircraft or a Hawaiian ACMI Aircraft pursuant to a charter,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

wet lease, or any other arrangement (such services hereinafter referred to as "<u>Supplemental Flying</u>"), then the Carrier will pay Amazon an agreed upon rate per day, or portion thereof, that the Carrier uses an Amazon Aircraft or a Hawaiian ACMI Aircraft for Supplemental Flying, which fee will be payable as described in <u>Section 2.12.1</u>. Except as set forth herein, all revenue from such Supplemental Flying will inure to the benefit of the relevant Carrier. The Carrier is solely responsible for all of its operating costs with respect to or associated with Supplemental Flying. For clarity, Supplemental Flying only includes air transportation services that are arranged solely by the Carrier and does not include any of the flights referenced in <u>Section 2.12.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12.1On the final invoice for each month provided in accordance with the invoicing and payment provisions of <u>Exhibit D</u> to this Agreement, Hawaiian will provide to Amazon a detailed statement setting forth the utilization of any Amazon Aircraft or Hawaiian Aircraft under an ACMI Work Order for Supplemental Flying during the prior month and a credit in the amount of the fees owing to Amazon related to such utilization. For clarity, the amounts payable to Amazon under this <u>Section 2.12</u> will not be prorated and will apply regardless as to the portion of the day an Amazon Aircraft is used for Supplemental Flying.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12.2Amazon may, from time to time, charter the Amazon Aircraft or Hawaiian ACMI Aircraft to third parties ("<u>Third Party Charters</u>") and Carrier will provide assistance as reasonably requested by Amazon in connection with such Third Party Charters. For clarity, unless otherwise mutually agreed, no additional amounts will be payable by Amazon for Third Party Charters unless the Third Party Charter is not included on the Flight Schedule in accordance with <u>Section 2.10.2</u>, in which case <u>Section 2.10.3</u> will apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13<u>Force Majeure</u>. The obligations of a Party under any Work Order may be suspended during the period and to the extent that such Party is prevented from complying with such obligations as a direct result of any of the following causes (in each case, only to the extent beyond such Party's reasonable control): severe weather preventing flight operations, destruction of flight equipment, riots or civil commotions, military emergency, terrorism, war, damages incident to a state of war, strikes, lockouts, industrial disturbances, or other labor disputes, or pandemic, epidemic, quarantine, or acts of a Governmental Entity, but in any event not including Carrier Delays (each, a "<u>Force Majeure</u>"); except that in each case nothing in this <u>Section 2.13</u> will relieve a Party of any obligation due to an event that was reasonably foreseeable, whose adverse effects could reasonably have been avoided or that otherwise could have reasonably been prevented by such Party. A Party's obligations will be suspended only to the extent that such Party provides: (a) as soon as reasonably possible (but in any event within [\*\*\*] hours of the occurrence of the event) written notice of suspension to the other Party describing the time, date, extent and cause of the Force Majeure; (b) as soon as reasonably possible (but in any event within [\*\*\*] of the occurrence of the event) the written remediation plan for such suspension with reasonable detail; and (c) as soon as reasonably possible (but in any event within [\*\*\*] of occurrence of such event) adequate evidence of the occurrence of such Force Majeure (including newspaper articles, government notices, insurance reports, sworn statements, and other evidence that objectively documents the severity of the event) that supports

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

the material adverse effect such identified Force Majeure has had on the Party's ability to fulfill its obligations under this Agreement. If a Force Majeure affects Hawaiian's or a Hawaiian Provider's ability to provide all or part of the Services, Amazon will have the right, but not the obligation, to arrange for another party to provide such Services until such time as the Force Majeure can be cured and for a reasonable period thereafter. The Fixed Monthly Charge for any affected Carrier Work Orders will be payable for the first [\*\*\*] days of the Force Majeure, but will not be payable starting on the [\*\*\*] day after the commencement of the Force Majeure and continuing until the Force Majeure has ceased. Any Party whose obligations are suspended under this Agreement will use commercially reasonable efforts to minimize the impact of the suspension and resume the performance of its obligations as soon as reasonably possible. If Hawaiian's or a Hawaiian Provider's obligations are suspended for more than [\*\*\*] out of any [\*\*\*] period under this <u>Section 2.13</u>, Amazon may thereafter immediately terminate the affected Work Order(s) by giving notice of such termination to Hawaiian without paying any termination fee or other charges. For clarity, a Party's inability or delay in satisfying its obligations due to causes resulting from the COVID-19 pandemic will not constitute Force Majeure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14<u>Unavailability</u>. Except in the case of a Force Majeure or with respect to Blocked Space Services, in the event that a Carrier Delay will result in a delay of [\*\*\*] hours or more from the scheduled arrival time set forth in the Flight Schedule, then the relevant Carrier will promptly notify Amazon of such delay and Amazon will be entitled to determine, in its sole discretion (within [\*\*\*] hours of being so notified by the Carrier), whether to proceed with the flight as soon as reasonably practicable or to cancel the flight. In either event, Amazon will be entitled to an invoice credit against the Fixed Monthly Charge as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.1$[\*\*\*] if the Aircraft is operated but arrives more than [\*\*\*] hours but less than [\*\*\*] hours late at one or more of its scheduled destinations on the Flight Schedule for that [\*\*\*] period (measured from the original scheduled departure time of the original delayed flight); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.2$[\*\*\*] if either: (a) the Aircraft is operated but arrives [\*\*\*] hours or more late at one or more of its scheduled destinations on the Flight Schedule for that [\*\*\*] period (measured from the original scheduled departure time of the original delayed flight); or (b) Amazon elects to cancel the flight.

Only one credit in the amount set forth above will apply to a given routing, even if the Aircraft arrives late at more than one scheduled destination on the Flight Schedule for that particular routing. A new routing will be deemed to commence whenever the time between the arrival time and departure time for the Aircraft's next flight (both as reflected on the Flight Schedule) exceeds [\*\*\*] hours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15<u>Destruction or Casualty Loss of Aircraft</u>. Notwithstanding anything contrary contained in this Agreement, if an Aircraft is destroyed or otherwise suffers a casualty occurrence that would constitute a total loss or a constructive total loss under the terms of the hull insurance required by Section 9.1.4 of this Agreement with respect to such Aircraft, then the affected Carrier Work Order will terminate with respect to such Aircraft and no Party will have any further obligation or liability to the other with respect to such Aircraft except that Hawaiian will use its commercially reasonable efforts to coordinate alternate lift arrangements to cover any

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

network capacity lost. For clarity, Amazon will have no obligation to pay any Carriers any fee, charge, compensation, damages, or other amount upon the expiration or termination of such Carrier Work Order, other than preexisting payment obligations then due and owing, and obligations for Services that have already been performed by the Carrier but that have not been billed in accordance with the affected Carrier Work Order and Exhibit D.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16<u>Sustainability; Fuel Conservation</u>. Hawaiian and the applicable Hawaiian Providers agree to pursue fuel conservation and sustainability efforts as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16.1<u>Fuel Optimization</u>. Hawaiian and the applicable Hawaiian Providers will implement the Fuel Optimization Program throughout the Term, except that the Parties will work together to develop commercially reasonable plans and programs to maximize each Carrier's fuel efficiency and minimize Amazon's fuel cost in the Carrier's operations for Amazon under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16.2<u>Fuel Tankering</u>. Hawaiian and the applicable Hawaiian Providers will use commercially reasonable efforts to maximize fuel purchases at optimized locations based on the Flight Schedule in order to minimize overall net fuel expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16.3<u>Fuel Burn Optimization – In-flight Operations</u>. Each Carrier will use commercially reasonable efforts to develop, implement, and maintain operating policies that minimize excessive fuel burns while in flight. Without limiting the foregoing, the Carriers will (to the extent in compliance with applicable Law): (a) create and implement a landing fuel policy that will set a specific target for reserve fuel upon arrival at destination and only deviate from that policy for specific enumerated reasons, including weather; (b) create and implement guidance for pilots to, when possible and consistent with safe operations, minimize flap usage on approach and reverse thrust on landing, increase application of single-engine taxi and air conditioning packs-off takeoff; (c) adjust the fuel planning methodology to round fuel to units of 100 lbs.; (d) use manufacturer data to reduce enroute fuel burn via computerized profiles and speed optimization; and (e) review specific city pair taxi times to more accurately estimate fuel required for specific city pairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16.4<u>Third Party Audit</u>. No more than once during each Contract Year, Hawaiian and the Hawaiian Providers, at Amazon's election and at Amazon's cost and expense, will undergo a reasonable third party audit of the fuel conservation practices described in this <u>Section 2.16</u> to be performed by a recognized industry auditor that is selected by Amazon and reasonably acceptable to Hawaiian. Amazon will promptly provide Hawaiian with a copy of the results of such audit. The Carriers will cooperate with Amazon in implementing procedures that will result in greater overall fuel efficiency, including using all commercially reasonable efforts to implement the recommendations of such audit in accordance with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16.5<u>Sustainability</u>. Each Carrier will use commercially reasonable efforts to minimize carbon emissions and participate in other sustainability efforts as may be requested by Amazon, including fuel optimization and conservation programs and the use of sustainable fuels.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17<u>Reports, Audits and Record Retention</u>. Hawaiian will provide to Amazon Reports and Electronic Communications in accordance with the requirements set forth in Exhibit C, Exhibit D, and in any applicable Work Order at no additional charge. Hawaiian and each Hawaiian Provider will keep true and accurate books and records relating to this Agreement and the Services (collectively "Records") in accordance with generally accepted accounting principles during the Term and for a period of [\*\*\*] years thereafter. At Amazon's request during the Term and for [\*\*\*] years thereafter, Hawaiian and each Hawaiian Provider will: (a) upon reasonable prior written notice, enable Amazon (at Amazon's sole cost and expense, except as provided for below) and any designee to conduct a reasonable invoicing, service, and performance audit no more than once per calendar year (except during the occurrence of any Event of Default by Hawaiian or a Hawaiian Provider, in which event Amazon's audit rights will not be limited) to determine if such Party is meeting its obligations under this Agreement, including providing access to and electronic copies of all relevant Records in a satisfactory mode and format that enables Amazon and its designee to conduct such audit; and (b) upon reasonable prior written notice (except during a Hawaiian Event of Default, in which case no prior notice will be required) and during Hawaiian's business hours, permit Amazon and any designee to conduct a reasonable on-site inspection of the facilities, processes, systems, and working conditions applicable to the provision of the Services to determine if such Party is in compliance with this Agreement, including specifically the Compliance Requirements. To the extent that any such amount is not subject to a good faith dispute, Hawaiian will reimburse Amazon for the full amount of any overcharge identified in the audit. If an audit identifies an overcharge by Hawaiian or any Hawaiian Provider, individually or in the aggregate, for the period audited in excess of [\*\*\*] for the period audited Hawaiian will also promptly reimburse Amazon for all out of pocket expenses including the cost associated with the use of third parties to perform such audit. Any payments required to be made by Hawaiian pursuant to this Section 2.17 shall be applied as a credit against the next Monthly Invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18<u>Information Technology Systems</u>. The Carriers will provide Amazon with real-time read-only access to information technology systems (or data from such systems in a format reasonably acceptable to Amazon if direct or real-time access is not available) with the following information (excluding Personal Information): (a) graphical flight schedule interface including planned and current flight schedules; (b) crew duty times; (c) ramp status; (d) weight and balance; (e) Maintenance Data; and (f) maximum payload figures. The Carriers will be responsible to ensure that the software for such information technology systems remain reasonably current and up to date. Amazon will have the option to install an aircraft interface device on each Amazon Aircraft and, if requested by Amazon, the Carriers will install aircraft interface devices on any Hawaiian Aircraft providing ACMI Services on a timeline to be mutually agreed in advance. The aircraft interface devices will be of the type specified in the Baseline Configuration unless otherwise mutually agreed. The Carriers will provide Amazon with full access to the available raw data from any installed aircraft interface devices (excluding Personal Information).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19<u>Designated Point of Contact</u>. Hawaiian will provide one senior management point of contact fully dedicated to Amazon (for clarity, in addition to the availability to their Amazon counterparts of Hawaiian's CEO and its technical operations team during normal

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

business hours) on all shifts that: (a) is fully apprised of and responsible for all aspects of the Amazon operation; (b) has immediate access to all relevant information and the ability to make real-time decisions; and (c) is available for resolution of any operational matters. Hawaiian will also provide senior management points of contact for all shifts to whom Amazon may reach out directly for an escalation in each of the following areas: (v) maintenance; (w) ground handling operations (e.g., set-up, deicing, fueling, lavatory, etc.); (x) scheduling and planning; (y) systems operations; and (z) legal and regulatory compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20<u>Continuous Improvement</u>. Hawaiian will meet with Amazon on a quarterly basis in Seattle, Washington (or such other mutually agreed location) to review operations under this Agreement and propose synergies, solutions, and ideas to lower costs and increase operational efficiency. Hawaiian will provide, no less than [\*\*\*] Business Days in advance of each such meeting, reasonably detailed: (a) financial and operational reports; and (b) other information related to the Services that may be reasonably requested by Amazon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21<u>Aircraft Maintenance Technician</u>. The Carriers will, at their sole cost, arrange for a maintenance supervisor to be present at each origination and destination location identified on the Flight Schedule for flights performed by the first Amazon Aircraft that is new or freshly converted for the first [\*\*\*] of the initial Flight Schedule after the entry into service of such Amazon Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22<u>IATA BSP; Electronic Data Interchange</u>. The Carriers will implement IATA's Billing and Settlements Program (BSP) or other mutually agreed platforms by a date to be mutually agreed, provided that the Hawaiian Providers will use commercially reasonable efforts to implement the IATA BSP or other mutually agreed platform within [\*\*\*] after the platform is agreed. The Hawaiian Providers will implement Electronic Data Interchange invoicing within [\*\*\*] of Amazon's written request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23<u>Livery</u>. If requested by Amazon, the applicable Carrier will have individual Hawaiian Aircraft subject to an ACMI Work Order painted or wrapped (as applicable) in Amazon livery on a schedule to be mutually agreed between the Parties, provided that Amazon will be responsible for: (a) providing the paint or wrap scheme; and (b) reimbursement in accordance with Section 2.6 for the direct cost of painting or wrapping and repainting or wrap removal (as applicable) after the Hawaiian Aircraft is done providing Services under an ACMI Work Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24<u>Maintenance Process</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24.1Hawaiian will be responsible for all technical aspects of scheduled and unscheduled shop level maintenance including, but not limited to, scheduling, management workscope development and technical (engineering) specifications. Such specifications and workscopes will be provided to Amazon for review and approval (such approval not to be unreasonably withheld). All Amazon Aircraft Heavy Maintenance will be performed by a CAA-approved maintenance provider to be selected and contracted directly by Amazon. [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24.2Amazon and Hawaiian project managers will lead weekly calls to discuss the maintenance status of the Amazon fleet, spare engine and APU availability, engines or APUs on watch, and upcoming inspections, waterwashes, and heavy maintenance. Amazon and Hawaiian will also jointly develop a heavy maintenance schedule for each calendar year that takes into consideration shop capacity, operational constraints, and heavy maintenance schedules of the relevant Aircraft (the "<u>Heavy Maintenance Plan</u>"). [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24.3Upon Hawaiian's receipt of an engine or APU from a maintenance provider (for clarity, including in connection with Amazon Aircraft Heavy Maintenance), Carrier will: (a) perform a full visual inspection in accordance with the Carrier's CAA-approved maintenance program within [\*\*\*] and promptly report any damage to Amazon; (b) confirm inventory of engine or APU part numbers and serial numbers and provide same to Amazon; and (c) upon Amazon's request, reinstall the engine or APU on the applicable Aircraft as soon as reasonably practicable. For clarity, to the extent Amazon requests that Hawaiian reinstall an engine or APU in accordance with subsection (c) solely to the extent requested by Amazon for the purposes of mitigating Amazon's spare engine or APU lease costs, Hawaiian will be responsible for all costs incurred in connection with such reinstallation (including the removal of the leased engine or APU) for [\*\*\*] and Amazon will be responsible for all costs incurred in connection with any further reinstallations (including removals of the leased engines or APUs), except that the foregoing cap will not apply if the reinstallation is related to or in connection with Hawaiian Maintenance, in which case Hawaiian will be responsible for the costs of the reinstallation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24.4The Carrier will use commercially reasonable efforts to use and maintain each engine provided by Amazon in accordance with the following specific parameters, consistent with [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3.<u>PAYMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1<u>Payment Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1For each CMI Work Order and ACMI Work Order, Amazon will pay to Hawaiian the Fixed Monthly Charge specified in the Price Schedule for each Aircraft during the term of each Work Order. In addition, subject to the provisions of any applicable Work Order, Amazon will pay to Hawaiian the Variable Charge Per Block Hour for each Block Hour (or portion thereof) flown by an Aircraft during such month and the Variable Charge Per Cycle for each Flight Cycle flown by an Aircraft during such month. The monthly Carrier's Costs components of the Price Schedule are currently based on Hawaiian performing CMI Services with [\*\*\*] Amazon Aircraft. For every [\*\*\*] Additional Aircraft of the same aircraft type (up to [\*\*\*] Additional Aircraft), the Carrier's Costs for each Aircraft subject to a CMI or ACMI Work Order (for clarity, including the first [\*\*\*] Amazon Aircraft) will be reduced by [\*\*\*], in each case effective as of the first day of the month immediately following the In-Service Date for such Additional Aircraft. If Amazon formally allocates more than [\*\*\*] to Hawaiian to provide CMI or ACMI Services, the Parties will [\*\*\*]. If the Work Order Effective Date under a CMI Work Order is earlier than the In-Service Date for the applicable Amazon Aircraft, Amazon's obligations to make payments under such CMI Work Order prior to the In-Service Date be limited to the Fixed Monthly Charge (excluding Carrier's Costs), any Variable Charges, and any reimbursable expenses under <u>Section 2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2All pricing components in: (a) the Price Schedule [\*\*\*]; (b) <u>Section 2.6.14</u>, <u>Section 2.14</u>; (c) <u>Section 3.1.1</u>; and (d) <u>Exhibit C</u> will be subject to an annual adjustment on July 1 of each Contract Year, with the first such adjustment taking effect on [\*\*\*]. The adjustment will be equal to: [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3Neither Hawaiian nor any Hawaiian Provider is entitled to other fees, costs, accessorials, additional expenses, charges, surcharges, tariffs or other compensation or reimbursement for the Services other than as provided in this Agreement and the relevant Work Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2<u>Start-Up Costs</u>. Amazon will make a one-time payment of $[\*\*\*] to Hawaiian within [\*\*\*] Business Days of the Effective Date for costs related to Hawaiian's preparations to begin providing the Services, including: (a) Flight Crew, dispatcher, mechanic, and ground handler training; (b) IT and systems integration; (c) flight simulator time and instruction; (d) technical due diligence; (e) manual development; (f) hiring in advance of operations; (g) legal and regulatory advisors related to start-up of operations of Airbus A330 freighter aircraft; (h) certification costs of Airbus A330 freighter aircraft, including proving runs and other CAA required actions; and (i) sufficient spare parts inventory to start-up and maintain Amazon Aircraft ("Start-Up Costs"). Within [\*\*\*] days of the In-Service Date for the 10th Amazon Aircraft, Hawaiian will provide to Amazon a report (including supporting documentation and amounts) listing the Start-Up Costs incurred by Hawaiian. [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3<u>Payment for Cancellation of Flights</u>. Except as otherwise provided in this Agreement Amazon will: (a) pay the Fixed Monthly Charge notwithstanding any cancellation of flights during the corresponding Work Order term; and (b) not otherwise be subject to any charges with respect to any cancelled flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4<u>Invoices and Payment</u>. The terms of Exhibit D will govern the rights and obligations of the Parties with respect to invoices and payment and all other subject matter addressed therein.

**4.<u>TERM AND TERMINATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1<u>Term; Renewal Option</u>. The term of this Agreement will begin as of the Effective Date and, unless earlier terminated in accordance with this Section 4, will continue for eight years ("Initial Term"). Amazon will have the option, in its sole discretion, to renew this Agreement for one additional two-year term, subject to Amazon providing Hawaiian with at least [\*\*\*] notice prior to the expiration of the Initial Term. Following the expiration of such two-year renewal term, Amazon may also renew this Agreement for one additional three-year term upon mutual agreement with Hawaiian, provided that the pricing for any such renewal term will be [\*\*\*]. With respect to such three-year renewal term Amazon will provide notice of its intent to renew this Agreement [\*\*\*] of the Effective Date, in which event the Parties will meet in person at a mutually agreeable location within [\*\*\*] to negotiate any changes to the Agreement in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2<u>Amazon Termination for Convenience</u>. Amazon may terminate this Agreement for convenience at any time by providing Hawaiian with [\*\*\*] prior written notice, provided that the effective date of such termination cannot be on or before [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3<u>Amazon Early Termination Fee</u>. In the event that Amazon terminates this Agreement for convenience pursuant to Section 4.2, Amazon will pay to Hawaiian a one-time early termination fee equal to $[\*\*\*] per each then-active CMI or ACMI Work Order plus $[\*\*\*] per each CMI or ACMI Work Order terminated in the [\*\*\*] immediately preceding Amazon's notice ("Amazon Early Termination Fee").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4<u>Payment of Amazon Early Termination Fee</u>. In the event of a termination by Amazon for convenience pursuant to Section 4.2, Amazon will, if applicable, pay to Hawaiian the Amazon Early Termination Fee on or before the date of termination of this Agreement, in addition to any other amounts due under this Agreement as of the date of termination (whether or not such amounts are yet invoiced or payable), and, except for liabilities accruing prior to termination of this Agreement, neither Party will have any further obligations or liabilities to the other Party under this Agreement following such termination. The Amazon Early Termination Fee will be deemed liquidated damages and not a penalty and will be Hawaiian's sole and exclusive remedy for a termination by Amazon for convenience pursuant to Section 4.2. For clarity, any amounts due under this Agreement to either Party as of the date of termination (whether or not such amounts are yet invoiced or payable) will remain due. The Amazon Early Termination Fee applies only in the case of the termination of this Agreement, and not the

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

termination of one or more Carrier Work Orders, unless Hawaiian deems Amazon to have terminated this Agreement pursuant to Section 4.8 of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5<u>Hawaiian Termination for Convenience</u>. Hawaiian may terminate this Agreement for convenience at any time by providing Amazon with [\*\*\*] prior written notice, provided that the effective date of such termination cannot be on or before [\*\*\*]. In the event that Hawaiian terminates this Agreement for convenience pursuant to this Section 4.5, Hawaiian will pay to Amazon a one-time early termination fee equal to $[\*\*\*] ("Hawaiian Early Termination Fee"). The Hawaiian Early Termination Fee will be: (a) paid on or before the date of termination of this Agreement; (b) deemed liquidated damages and not a penalty; and (c) Amazon's sole and exclusive remedy for a termination by Hawaiian for convenience pursuant to Section 4.5. For clarity, any amounts due under this Agreement to either Party as of the date of termination (whether or not such amounts are yet invoiced or payable) will remain due. Notwithstanding the foregoing, at any point within the [\*\*\*] following any Hawaiian notice to terminate this Agreement for its convenience Amazon may request and Hawaiian will provide up to an additional [\*\*\*] of Services to support the transition of Aircraft to another air carrier. Except for (y) Hawaiian's aforementioned obligation to provide [\*\*\*] of Services to support the transition of the Aircraft to another carrier, and (z) any liabilities accruing prior to termination of this Agreement, neither Party will have any further obligations or liabilities to the other Party under this Agreement following such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6<u>Events of Default; Remedies</u>. The occurrence of any of the following events or conditions will constitute an event of default (each an "Event of Default"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.1The Carriers' failure to maintain, starting one year after the In-Service Date of the first Amazon Aircraft, a collective Arrival Performance of at least the Target Arrival Performance in either: (a) each of any [\*\*\*] consecutive months; or (b) each of any [\*\*\*] months (whether or not consecutive) within any trailing [\*\*\*] period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.2Hawaiian or any Hawaiian Provider materially violates any of the Compliance Requirements, Insurance Requirements, or any Carrier fails to maintain its Operating Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.3Any Carrier operates an aircraft (for clarity, whether or not such aircraft is an Aircraft in connection with the Carrier's performance of the Services), involved in: (a) [\*\*\*] "<u>aircraft accidents</u>" involving a "<u>serious injury</u>" or "<u>substantial damage</u>" to the aircraft in a [\*\*\*] period; or (b) an "<u>aircraft accident</u>" involving a "<u>fatal injury;</u>" in either case for which the affected Carrier was determined to be at fault (including, for clarity, in a preliminary report) by the NTSB or an equivalent aviation authority having jurisdiction over the matter (all terms in quotations in this <u>Section 4.6.3</u> are as defined by the NTSB in 49 C.F.R. Part 830);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.4There is a Change of Control of Hawaiian not in full compliance with the notice and certification requirements in <u>Section 13.1</u>;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.5Hawaiian or any Hawaiian Provider is assessed or is subject to, by a CAA, or any other Governmental Entity: (a) a single civil penalty or aggregate civil penalties in any [\*\*\*] period, including a compromise civil penalty [\*\*\*]; or (ii) acts or omissions of Amazon, its Affiliates or Personnel in connection with the performance of ground handling functions performed by Amazon pursuant to <u>Section 2.8.1</u> that exceed $[\*\*\*] pursuant to a final agency order; or (b) an enforcement action that results in the revocation or suspension of a Carrier's Operating Authority (or the authority of such Hawaiian Provider to provide the Services);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.6A Party's material breach or failure to observe or perform, as applicable, any representation, warranty, covenant, or agreement hereunder that has occurred and is continuing for [\*\*\*] days after receipt of written notice from the non-breaching Party identifying such material breach and notice of the intent to terminate if such material breach is not cured; provided, however, that such cure period will be extended to [\*\*\*] days to the extent that (a) the breach is capable of remedy (as determined by the non-breaching Party in its reasonable sole discretion), (b) the breaching Party is diligently pursuing such remedy, and (c) there is no actual or reasonable likelihood of a material adverse effect on the breaching party's provision of the Services; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.7If: (a) a Party commences a voluntary case under Title 11 of the United States Code or the corresponding provisions of any successor Laws; (b) anyone commences an involuntary case against a Party under Title 11 of the United States Code or the corresponding provisions of any successor Laws and either (i) the case is not dismissed by midnight at the end of the [\*\*\*] day after commencement, or (ii) the court before which the case is pending issues an order for relief or similar order approving the case; (c) a court of competent jurisdiction appoints, or a Party makes an assignment of all or substantially all of its assets to, a custodian (as that term is defined in Title 11 of the United States Code or the corresponding provisions of any successor Laws) for its company or all or substantially all of its assets; or (d) a Party fails generally to pay its debts as they become due (unless those debts are subject to a good-faith dispute as to liability or amount) or acknowledges in writing that it is unable to do so.

Upon the occurrence of any Hawaiian Event of Default, Amazon may elect, in its sole discretion, to terminate this Agreement in its entirety, to terminate any or all affected Work Orders, or to terminate all Work Orders with the affected Hawaiian Provider immediately upon giving written notice of such Event of Default to Hawaiian, provided that Amazon's termination rights may only be exercised up to [\*\*\*] days after Amazon becomes aware of the occurrence of such Event of Default (unless such termination right would expire during any October 1 through January 15 period, in which case the termination right will be extended to the next-occurring January 16). Upon the occurrence and during the continuance of any Amazon Event of Default enumerated in <u>Sections 4.6.6</u> or <u>4.6.7</u>, Hawaiian may, without prejudice to any other remedy which it may have at law or in equity, terminate this Agreement by giving notice of such termination to Amazon, except that Hawaiian may not terminate this Agreement or any Work Order for any reason (including, for clarity, under <u>Section 4.5</u>) with an effective date during any October 1 through

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

January 15 period. A notice of termination by Hawaiian for any reason that would otherwise become effective during such period will be suspended until becoming effective on the next-occurring January 16.

[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7<u>No Termination or Other Payment on Expiration</u>. Except as set forth in this Section 4, no Party will be entitled to any termination payment, severance payment, penalty, damages, loss of goodwill, prospective profits, anticipated income, or other compensation in any form or manner (including on account of any expenditures, investments, leases, or commitments made by such Party) based upon the expiration of this Agreement at the end of its Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8<u>Work Orders</u>. A Work Order will be effective upon the Work Order Effective Date and will terminate on the earliest of: (a) [\*\*\*] days after Amazon, in its sole discretion, provides written notice of termination for convenience; (b) immediately if a Party terminates the Work Order for an Event of Default of the other Party pursuant to Section 4.6; (c) immediately upon the expiration or prior termination of this Agreement; or (d) on the Expiration Date of the Work Order The expiration date of all Work Orders that are not CMI or ACMI Work Orders will be as stated in the relevant Work Order, and each CMI Work Order and ACMI Work Order will have an expiration date that is coterminous with the Term (the "Expiration Date"). No Hawaiian Provider may terminate a Work Order for any reason with an effective date during any October 1 through January 15 period. Any notice of termination by a Hawaiian Provider that would otherwise become effective during such period will be suspended until becoming effective on the next-occurring January 16. For clarity, Amazon will not be subject to any penalty, or otherwise be responsible for any reimbursement of costs or expenses, in connection with a Work Order terminated in accordance with this Section 4.8 [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9<u>Post-Expiration Agreement</u>. Amazon and Hawaiian will, at Amazon's sole option and upon its prior written request, use commercially reasonable efforts to enter into an interim agreement in anticipation of the expiration of this Agreement for Hawaiian to assist Amazon in the transition from this Agreement ("Post-Expiration Agreement"). The Post-Expiration Agreement will: (a) become effective upon the expiration of this Agreement and thereafter remain in effect for a term of up to [\*\*\*] as mutually agreed between Amazon and Hawaiian; and (b) be designed to facilitate an orderly transition of the Amazon Aircraft to Third Party Carrier(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10<u>Survival</u>. No termination or expiration of this Agreement or any Work Order for any reason will relieve any Party of any liability or obligation to the extent accrued prior to such termination or expiration. The following provisions will survive termination or expiration of this Agreement under any circumstance: Reports, Audits and Record Retention (Section 2.17), Term and Termination (this Section 4), Representations and Warranties (Section 5) (which will only survive for the duration of any Post-Expiration Agreement), Confidentiality and Proprietary Rights (Section 6), Defense/Indemnity (Section 7), Loss or Damage to Goods (Section 8), Insurance (Section 9), Taxes (Section 11), General (Section 13) (of which Sections 13.1and 13.10 will only survive for the duration of any Post-Expiration Agreement).

**5.<u>REPRESENTATIONS AND WARRANTIES; COVENANTS</u>**

Each Party represents, warrants and covenants to the other Parties, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1<u>Authority</u>. Each Party has all right, power and authority to enter into this Agreement and perform its obligations under this Agreement. Each Party's entry into and performance of its obligations under this Agreement will not (with or without the passage of time or giving of notice or both) violate any governing document (including articles of organization, certificate of incorporation or bylaws as applicable), any third party agreement (including any Compliance Requirement or Insurance Requirement) or arrangement or any Law, in each case by which such Party is bound or to which such Party or its assets is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2<u>Organization; Binding Agreement</u>. Each Party is duly organized, validly existing and in good standing under the Laws of the jurisdiction in which it is organized. This Agreement constitutes a legally valid and binding agreement of the Parties, enforceable against each Party in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting generally the enforcement of creditors' rights and remedies and general principles of equity. Each Party will comply and will require their Personnel to comply in all respects with all Laws in connection with its performance under this Agreement. Hawaiian will notify Amazon in writing as promptly as practicable of the existence of any strike, lockout, job action, industrial disturbance, service disruption or other

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

labor dispute that could reasonably be expected to impair its or a Hawaiian Provider's ability to perform the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3<u>Service Representations</u>. Hawaiian, each Hawaiian Provider, and their respective Personnel, as applicable, will: (a) perform the Services in a competent and workmanlike manner in accordance with the level of professional care customarily observed by highly skilled professionals rendering similar services; (b) comply with the Performance Standards; (c) promptly upon having actual knowledge, notify Amazon of any accident, incident, or event that impairs the safety of or delays delivery of shipments, and will use reasonable care and due diligence in the protection of the goods or shipments in their possession and control; and (d) at all times have sufficient equipment, Personnel and resources available to fulfill its obligations under each Work Order and the Flight Schedule then in effect (and, in any case in which such Hawaiian Provider believes, in its reasonable business judgment, that it does not have sufficient equipment, Personnel and resources available to handle all Amazon capacity requirements, such Hawaiian Provider will promptly notify Amazon in writing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4<u>Proprietary Rights</u>. The Services performed by or on behalf of Hawaiian or a Hawaiian Provider and any reports, information, data, or other materials provided by or on behalf of Hawaiian or a Hawaiian Provider (including Amazon's exercise of its rights under this Agreement with respect to such Services and other materials) will not violate, misappropriate or infringe upon Amazon's or any third party's trademarks, trade secrets, confidentiality rights, copyrights, patents, or any other intellectual property or proprietary rights in any jurisdiction (collectively, "Proprietary Rights").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5<u>Compliance</u>. Hawaiian, each Hawaiian Provider, and their respective Personnel: (a) will comply with all applicable Laws in carrying out the Services; (b) will hold and comply with all required licenses, permits and approvals; (c) acknowledge that Amazon's Code of Business Conduct and Ethics (as may be updated from time to time) which is posted at http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-govConduct on the Effective Date prohibits the paying of bribes or facilitation payments to anyone for any reason, whether in dealings with governments or the private sector, and contains principles that are similar to Hawaiian's Code of Business Conduct and Ethics which is posted at https://newsroom.hawaiianairlines.com/investor-relations/governance/committee-charters on the Effective Date and will comply with Hawaiian's Code of Business Conduct and Ethics; (d) will comply with Amazon's Supplier Code of Conduct (as may be updated from time to time) which is posted at https://sustainability.aboutamazon.com/amazon_supply_chain_standards_english.pdf on the Effective Date; and (e) comply with Amazon's Third Party Information Security Policy attached as Exhibit H (as may be updated from time to time) (the requirements described in Section 5.10 and in this Section 5.5, the "Compliance Requirements"). Hawaiian and the Hawaiian Providers will maintain true, accurate and complete books and records concerning any payments made to another party by Hawaiian or a Hawaiian Provider under this Agreement, including on behalf of Amazon. In addition to its audit and inspection rights in Section 2.17, Amazon and its designated representative may reasonably inspect Hawaiian's or any Hawaiian Provider's books and records to verify such payments and for compliance with the Compliance Requirements at any time during the term of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6<u>Common Carrier</u>. Each Carrier is a Common Carrier and is in compliance with all Laws applicable to Common Carriers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7<u>Filings</u>. Where required by Law, Hawaiian and each Hawaiian Provider will ensure that all rates and terms and conditions that are the subject of this Agreement are filed with the appropriate Governmental Entity, if any, and, unless such shorter period is required by applicable Law, Hawaiian or such Hawaiian Provider will provide Amazon at least [\*\*\*] Business Days' notice in advance of any such filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8<u>No Liens</u>. Neither Hawaiian nor any Hawaiian Provider will hold, and to the fullest extent allowed by applicable Law, Hawaiian and each Hawaiian Provider hereby waive all rights to, any lien or encumbrance upon any Amazon shipments, property or assets, including any packages, parcels or other cargo or transportation units tendered to a Carrier or any documents relating thereto, in each case on behalf of itself and any third party landlord, contractor or other business relation engaged by Hawaiian or such Hawaiian Provider; except any lien or encumbrance not allowed to be waived by applicable Law will not be asserted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9<u>Flight Operations</u>. Each Carrier will: (a) obtain and maintain in full force and effect all necessary certificates, air transport licenses, permits and authorizations required for the operation of any particular flight, including an air operator's certificate, whether required under the Laws of the state and country in which the Aircraft is registered or any other state or country to, from or over which the Aircraft will be flown in the course of any particular flight (collectively, "<u>Operating Authority</u>"); (b) only perform the Services using Aircraft covered by the Operating Authority; (c) at its sole expense (subject to Section 2.6), perform or cause to be performed all ongoing maintenance, inspections, repairs, modifications, preventive maintenance, fueling, installations, and overhaul work for the Aircraft in accordance with the Operating Authority, such Carrier's CAA-approved maintenance and inspection program and other applicable Laws; (d) ensure that the Aircraft comply with all applicable airworthiness directives, mandatory service bulletins, alert bulletins, manufacturers' releases and insurer's requirements concerning the Aircraft; (e) at all times be the operator of the Aircraft and have complete, uninterrupted, effective and sustainable operational control of the Aircraft in accordance with the Operating Authority and other applicable Laws; (f) have possession, command, custody, and control of the Aircraft within the meaning of applicable Laws; (g) ensure that the pilot-in-command of the Aircraft will have absolute discretion in all matters concerning the preparation of the Aircraft for flight, including the load carried and its distribution, the decision whether or not a particular flight will be undertaken, the route to be flown and all matters relating to the operation of the Aircraft; (h) ensure that Flight Crew will have final and complete authority to cancel any flight for any reason or condition which in its judgment could compromise the safety or security of the flight or compliance with applicable Laws and may take any other action which in the judgment of the pilot-in-command is necessitated by consideration of safety, security compliance with applicable Laws; (i) be solely responsible for determining that containers and pallets ("<u>Unit Load Devices</u>" or "<u>ULDs</u>") and related equipment (including nets, tie downs and tensioning equipment) are suitable for air transportation in accordance with applicable Laws; and (j) not provide the Services at, to or from any origin or destination locations located outside of the United States unless included on a Flight Schedule or approved in advance in writing by an Authorized Representative of Amazon; (collectively, the "<u>Flight Operations Requirements</u>").

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10<u>Trade Restrictions</u>. Both Parties represent and warrant that: (a) neither they nor their financial institution(s) are subject to sanctions or otherwise designated on any list of prohibited or restricted parties or owned or controlled by such a party, including but not limited to the lists maintained by the United Nations Security Council, the US Government (e.g., the US Department of Treasury's Specially Designated Nationals list and Foreign Sanctions Evaders list and the US Department of Commerce's Entity List) or other applicable Governmental Entity in a jurisdiction where Hawaiian is providing Services; and (b) have measures in place to ensure that they will not directly or indirectly export, re-export, transmit, or cause to be exported, re-exported or transmitted, any commodities, software or technology to any country, individual, corporation, organization, or entity to which such export, re-export, or transmission is restricted or prohibited, including any country, individual, corporation, organization, or entity under sanctions or embargoes administered by the United Nations, US Departments of State, Treasury or Commerce or any other applicable Governmental Entity in a jurisdiction where Hawaiian is providing Services.

**6.<u>CONFIDENTIALITY; PROPRIETARY RIGHTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1<u>Confidentiality</u>. The Parties will comply with the terms of the nondisclosure agreement between Hawaiian and Amazon dated [\*\*\*], as may be amended, superseded or otherwise modified from time to time ("NDA"). In the case of any Third Party Carrier or other Hawaiian Provider, Hawaiian will procure from such Third Party Carrier or Hawaiian Provider an executed nondisclosure agreement in form and substance satisfactory to Amazon in its sole discretion. The existence of this Agreement, its terms and conditions, and any other information obtained by a Party from any other Party in connection with this Agreement or related to the Services that is identified as confidential or proprietary or that, given the nature of such information or the manner of its disclosure, reasonably should be considered confidential or proprietary (including information relating to the contents and recipients of packages, parcels and other cargo or transportation units, technology, customers, business plans, marketing activities, and finances) will be confidential information subject to the NDA. If no such agreement exists or if it has subsequently terminated or expired, each Party and their respective Personnel, as applicable: (a) will protect and keep confidential the existence of this Agreement, its terms and conditions and any other information obtained from a Party in connection with this Agreement or related to the Services that is identified as confidential or proprietary or that, given the nature of such information or the manner of its disclosure, reasonably should be considered confidential or proprietary (including all information relating to technology, customers, business plans, marketing activities, and finances); (b) will use such information only for the purpose(s) for which it was originally disclosed and in any case only for the purpose of fulfilling its obligations under this Agreement; and (c) will either (i) return all such information to the disclosing Party or (ii) destroy all such information (and provide written confirmation thereof) promptly upon the written request of the other Party. All such information will remain the exclusive property of the disclosing Party, and the receiving Party will not have any right to use such information except as expressly provided in this Agreement and the NDA. In the event that Hawaiian determines that it is required by applicable Law to file this Agreement with the U.S. Securities and Exchange Commission, it will promptly notify Amazon of such determination in writing and the Parties will reasonably cooperate in seeking confidential treatment of the Agreement to the

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

maximum extent permitted by applicable Law. For clarity, Hawaiian and the Hawaiian Providers acknowledge and agree that this <u>Section 6.1</u> strictly prohibits Hawaiian Personnel from engaging in any speculative discussion relating to Amazon's technology, customers, business plans, marketing activities, or finances at industry conferences or similar public events without the prior written authorization of an Amazon Leadership Representative (to be granted or withheld in Amazon's sole discretion).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2<u>Publicity and Use Restrictions</u>. Neither Party will use any trade name, trademark, service mark, logo or commercial symbol, or any other Proprietary Rights of the other Party or any Affiliate in any manner (including use in any client list, press release, advertisement or other promotional material) without prior written authorization of same by: (a) in the case of Amazon, an Amazon Leadership Representative (to be granted or withheld in Amazon's sole discretion), including, for clarity, such authorization with respect to Hawaiian's reasonable use to fulfill investor communications responsibilities as a publicly traded company in accordance with applicable Law; and (b) in the case of Hawaiian, a Hawaiian corporate communications department representative (to be granted or withheld in Hawaiian's sole discretion). Any granted authorizations of a continuing nature expire at the end of the Term (for purposes of this Section 6.2, including any Post-Expiration Agreement), and any further uses following the end of the Term will require additional written authorization from an Amazon Leadership Representative in each instance. Notwithstanding the above, any rights or benefits arising from a Carrier's provision of Services pursuant to this Agreement using a trade name, trademark, service mark, logo or commercial symbol, or any other Proprietary Right of Amazon or an Amazon Affiliate (including the provision of Services using an Aircraft bearing Amazon livery) is deemed to be used by Amazon and such rights and benefits will inure exclusively to the benefit of Amazon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3<u>Work Product Ownership</u>. Each Party retains all right, title and interest (including all Proprietary Rights) in and to its concepts, data, designs, developments, documentation, drawings, hardware, improvements, information, inventions, processes, software, techniques, technology, tools, and any other intellectual property, and any third party licenses or other rights to use any of the foregoing, that: (a) exists prior to the Effective Date; or (b) are developed entirely independently by a Party, at any time without any use, knowledge of, or reference to, the other Party's confidential information or other information obtained in connection with this Agreement ("<u>Retained Intellectual Property</u>"). If Hawaiian or a Hawaiian Provider delivers or is required to deliver to Amazon any work product in connection with the Services, Amazon owns, or upon assignment by the creator, will own, all right, title and interest (including, all copyrights and any other intellectual property rights) in such work product, provided that Hawaiian or the applicable Hawaiian Provider shall retain its interest in any Retained Intellectual Property contained in the work product. The work product has been specially ordered and commissioned by Amazon as "work made for hire" for copyright purposes; or, to the extent such deliverable does not so qualify, Hawaiian or such Hawaiian Provider (as applicable) hereby assigns to Amazon, its successors and assigns, all right, title and interest in and to the work product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4<u>Personal Information</u>. Neither Party nor their Personnel will: (a) will use any personally identifiable information it receives concerning the other Party's customers, suppliers, or Personnel, including names, addresses, e-mail addresses, and telephone numbers or, with respect to Hawaiian's Flight Crews, means any data, combination of data, or other information

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

that allows recorded or collected flight data to be associated with a specific Flight Crew member (collectively "Personal Information"), except solely for purposes of this Agreement; (b) transfer, rent, barter, trade, disclose, or sell such information; or (c) develop lists of or aggregate such Personal Information. To the extent permitted by Law, Hawaiian and each Hawaiian Provider will delete all instances (including backups and other copies) of Personal Information associated with each shipment within [\*\*\*] days after completing the shipment. If Hawaiian or a Hawaiian Provider is required by Law to maintain records more than [\*\*\*] days after shipment, Hawaiian or such Hawaiian Provider will delete the Personal Information as soon as it is permitted. Before disposing of any hardware, media or software (including any sale or transfer of such material or any disposition of Hawaiian's or such Hawaiian Provider's business) that contains or previously contained Personal Information, Hawaiian or such Hawaiian Provider will perform a complete forensic destruction of the Personal Information (which may include a physical destruction, preferably incineration, or secure data wipe) such that no such information can be recovered or retrieved.

**7.<u>DEFENSE/INDEMNITY</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1To the fullest extent permitted by applicable Law, Hawaiian, jointly together with each Hawaiian Provider, and each Hawaiian Provider, jointly with Hawaiian but severally among other Hawaiian Providers with respect to Services performed by such other Hawaiian Providers, hereby releases and will indemnify, defend and hold harmless Amazon, each of its Affiliates, and their respective directors, officers, Personnel, shareholders, successors, and assigns of the foregoing (the "Amazon Indemnified Parties"), from and against any loss, claim, damage, suit, judgment, settlement, cost, expense, interest, fees, fines, penalties, government investigation or inquiry, remediation, and mitigation efforts regardless of whether required by Law and any other liability and costs and expenses relating thereto (including reasonable attorneys' fees, expert fees and court costs) arising out of, in connection with, or related to any third party allegation or claim (collectively, "Claims") based on or relating to: (a) the death of or injury to any Person whomsoever, including Personnel of the Amazon Indemnified Parties or the Hawaiian Indemnified Parties, loss of, damage to, delay or destruction of any goods or property whatsoever, including cargo, the Aircraft and any property of the Hawaiian Indemnified Parties or the Amazon Indemnified Parties or third parties, in any case caused by or resulting from an act or omission by Hawaiian, a Hawaiian Provider, or any of their respective Affiliates or Personnel in connection with the performance of the Services or their possession, use, operation or maintenance of the Aircraft or any equipment, machinery, spare engines and spare parts utilized to provide such Services; (b) breach of any material term by Hawaiian or any Hawaiian Provider, including any penalties, fines, or other costs associated with any government investigation relating thereto; (c) any infringement or misappropriation of any Proprietary Right by Hawaiian or a Hawaiian Provider; (d) any theft, embezzlement, forgery, fraud or other criminal act of Hawaiian or its Affiliates or any of their respective Personnel; or (e) any allegation or claim of negligence, willful misconduct or strict liability by or of Hawaiian or a Hawaiian Provider arising from an act or omission by Hawaiian, a Hawaiian Provider, or any of the respective Personnel of the foregoing. However, the foregoing indemnification obligation does not apply to an Amazon Indemnified Party to the extent such Claim results from the gross negligence or willful misconduct of such Amazon Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2Hawaiian's and each Hawaiian Provider's duty to defend is independent of its duty to indemnify. Hawaiian's and each Hawaiian Provider's obligations under this Section 7

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

are independent of all of its other obligations under this Agreement. Hawaiian and the applicable Hawaiian Provider will use counsel reasonably satisfactory to Amazon to defend each Claim, and Amazon will reasonably cooperate (at Hawaiian's or Hawaiian Provider's expense, as the case may be) in the defense. Neither Hawaiian nor any Hawaiian Provider will consent to the entry of any judgment or enter into any settlement in connection with a Claim without Amazon's prior written consent, which may not be unreasonably withheld, delayed, or conditioned. Subject to the foregoing, Amazon will have the additional right to participate at any time and at its own expense in any indemnification action or related settlement negotiations using counsel of its own choice. The Parties agree that this Section 7 does not apply to claims for loss or damage under <u>Section 8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3To the fullest extent permitted by applicable Law, Amazon will indemnify and hold Hawaiian, each Hawaiian Provider (with respect to Services performed by such Hawaiian Provider), each of their respective Affiliates, and the respective directors, officers, Personnel, successors, and assigns of the foregoing (collectively, the "<u>Hawaiian Indemnified Parties</u>"), harmless from any Claim based on or relating to: (a) the death of or injury to any Person whomsoever, including Personnel of the Amazon Indemnified Parties or the Hawaiian Indemnified Parties, loss of, damage to, delay or destruction of any goods or property whatsoever, including cargo, the Aircraft and any property of the Hawaiian Indemnified Parties or the Amazon Indemnified Parties or third parties, in any case caused by or resulting from an act or omission by Amazon, or any of its Affiliates or Personnel in connection with the performance of ground handling functions that are the responsibility of Amazon pursuant to <u>Section 2.8.1</u>; or (b) cargo tendered directly by Amazon or its Personnel for transportation under this Agreement; (c) Amazon's breach of any material term of this Agreement, including any penalties, fines, or other costs associated with any government investigation relating thereto; (d) any infringement or misappropriation of any Proprietary Right by Amazon; or (e) any theft, embezzlement, forgery, fraud or other criminal act of Amazon. However, the foregoing indemnification obligation in clause (b) does not apply to a Hawaiian Indemnified Party to the extent: (i) such Claim results from a violation of applicable Law with respect to such cargo by, or the gross negligence or willful misconduct of, such Hawaiian Indemnified Party; or (ii) Amazon is acting as a broker or air freight forwarder on behalf of Hawaiian or a Hawaiian Provider with respect to third party cargo. For any Claim under this Section 7.3 that may be covered under the applicable SGHA, the Carrier will first pursue all rights and remedies available under such SGHA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4Amazon's duty to defend is independent of its duty to indemnify. Amazon's obligations under this Section 7 are independent of all of its other obligations under this Agreement. Amazon will use counsel reasonably satisfactory to Hawaiian to defend each Claim, and Hawaiian and any applicable Hawaiian Indemnified Party will reasonably cooperate (at Amazon's expense) in the defense. Amazon will not consent to the entry of any judgment or enter into any settlement in connection with a Claim without Hawaiian's prior written consent, which may not be unreasonably withheld, delayed, or conditioned. Subject to the foregoing, the applicable Hawaiian Indemnified Party will have the additional right to participate at any time and at its own expense in any indemnification action or related settlement negotiations using counsel of its own choice. The Parties agree that this Section 7 does not apply to claims for loss or damage under <u>Section 8</u>.

**8.<u>LOSS OR DAMAGE TO GOODS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1<u>Liability Limit</u>. Except as otherwise provided under applicable Law, neither Hawaiian nor any Hawaiian Provider will be liable for any loss, theft or damage to goods for any

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

action: (a) unrelated to Hawaiian's or a Hawaiian Provider's performance of the Services, (b) arising solely as a result of Force Majeure, (c) that is reasonable wear and tear or (d) relating solely to ground equipment or functions that Amazon is performing under Section 2.8 (to the extent not provided by a Hawaiian Provider under a Ground Services Work Order) ("Excluded Claims"). To the extent that there is any loss, theft or damage to goods for any action unrelated to Excluded Claims, Hawaiian and the applicable Hawaiian Provider's liability will be limited to the greater of: (y) $[\*\*\*] per package and (z) $[\*\*\*] per shipment, except: (i) to the extent such loss or damage is attributable to the gross negligence or misconduct of Hawaiian, any Hawaiian Providers, or their respective Personnel; or (ii) as set forth in <u>Section 8.2</u>. For purposes of this <u>Section 8.1</u>, a "<u>shipment</u>" refers to all of the packages to be transported together on any given flight. For all purposes hereunder, a "<u>package</u>" refers to an individual sellable unit, which may be shipped by a Carrier as part of a larger transportation unit containing multiple packages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2<u>Additional Coverage</u>. With respect to any shipment(s) or class(es) of shipments, Amazon, Hawaiian, and each Hawaiian Provider (all acting reasonably and in good faith), with the concurrence of Hawaiian's or the Hawaiian Provider's insurers (as applicable), may mutually agree in writing on a special compensation to be paid by Amazon to increase the liability of the Hawaiian or the Hawaiian Provider in excess of the limits specified above in case of any loss, theft or damage to goods, effective upon mutual written agreement of authorized representatives of the Parties (including via email) indicating the shipment(s) or class(es) covered, the increased limit of Hawaiian's or the Hawaiian Provider's liability and the special compensation payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3<u>Claims</u>. Subject to <u>Section 8.1</u>, each Hawaiian Provider will be responsible for all loss of or damage to packages while in the possession, care, or control of such Hawaiian Provider and all of their respective Personnel and will pay claims at Amazon's actual cost, including replacement cost of goods and direct costs associated with packaging, handling and shipping. Claims for lost or damaged packages may be based upon Amazon's manifest and any other materially relevant information, may be initiated electronically (including via e-mail), and may be filed at any time within [\*\*\*] days after the item was tendered to such Hawaiian Provider. The Hawaiian Provider will acknowledge claims within [\*\*\*] days of receipt and will process all claims to conclusion and pay Amazon or credit its account, to the extent applicable, within [\*\*\*] days of receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4<u>Cooperation</u>. Hawaiian and each Hawaiian Provider agrees to cooperate as reasonably requested at their respective expense with Amazon loss prevention and investigative personnel in the conduct of investigations and preparation of reports related to loss, damage, fraud, shrinkage, mis-delivery, theft and other matters of mutual concern.

**9.<u>INSURANCE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1<u>Hawaiian Provider Insurance Coverage</u>. Throughout the Term, and as otherwise required herein, Hawaiian and each Hawaiian Provider, as applicable, will carry at its expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1Aviation Liability insurance as of the Effective Date and continuing for a period of [\*\*\*], including commercial general liability insurance, third party legal liability including passenger liability, third party war and allied perils, property

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

damage liability, premises liability, products and completed operations liability with respect to any maintenance, and contractual liability (which, without limitation, will specifically insure the indemnity of Carrier in <u>Section 7</u> hereof subject to the terms and conditions of such policy), and provide a breach of warranty clause, a severability of interest clause and a waiver of subrogation in favor of the Additional Insureds, and evidence worldwide policy territory, if applicable, subject to any exclusions then standard in the commercial aviation insurance market, with limits of not less than USD $[\*\*\*] combined single limit for bodily injury and property damage each occurrence (and USD $[\*\*\*] per occurrence and in the aggregate with respects war and allied perils);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.2Business Automobile liability insurance as required by Law in all jurisdictions where Hawaiian or a Hawaiian Provider performs Services for Amazon with a combined single limit of not less than USD $[\*\*\*] per occurrence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.3Worker's Compensation insurance in all jurisdictions where Hawaiian or a Hawaiian Provider performs the Services, and Employer's Liability insurance with a limit of not less than USD $[\*\*\*] per occurrence, both with a waiver of subrogation in favor of the Additional Insureds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.4Aircraft Hull and Hull War insurance that, on or prior to the applicable Work Order Effective Date, each Carrier will maintain (or cause to be maintained) in full force and effect on terms substantially similar to and no less favorable than insurance carried by the Carrier on similar aircraft in its fleet, all risk-ground and flight aircraft hull insurance covering the Aircraft (including coverage of the engines and parts while temporarily removed from or not installed on the Aircraft and spare parts, engines, and APUs), in amounts denominated and payable in United States Dollars not less than, in respect of the Aircraft, the Agreed Value, and with respect to any engines or parts while removed from the Aircraft on a replacement value basis. The Carrier will maintain such insurance covering any loss or damage arising from: (a) war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power, or attempts at usurpation of power; (b) strikes, riots, civil commotions, or labor disturbances; (c) any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional; (d) any malicious act or act of sabotage; (e) confiscation, nationalization, seizure, restraint, detention, appropriation, requisition for title, or use by or under the order of any Governmental Entity; and (f) hijacking or any unlawful seizure or wrongful exercise of control of the Aircraft or any airframe on which any engine is installed or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft or such airframe acting without the consent of the insured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.5Hawaiian and each Hawaiian Provider, as applicable, covenants that all policies and subsequent policies taken out in accordance with this <u>Section 9.1.5</u> will: (a) be issued by insurance companies or underwriters of internationally recognized standing in the aviation industry; (b) with respect to the insurance required under <u>Section 9.1.4</u>, be endorsed to name Amazon (and as directed by Amazon, Amazon's Aircraft

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

lessor and any other party with an interest in the Aircraft as may be reasonably requested by Amazon), as the loss payee to the extent of its interests in respect of hull claims that become payable on the basis of a total loss and will provide that any other loss will be settled (net of any relevant policy deductible) with Amazon as may be necessary to repair the Aircraft unless otherwise agreed in writing; (c) provide that insurers will waive all rights of subrogation as against Amazon and each of its Affiliates and their officers, directors, employees, lessors and any other parties as reasonably requested by Amazon ("<u>Amazon Parties</u>"); (d) waive any right of the insurers to any setoff, counterclaim or other deduction against the Amazon Parties; (e) with respect to the insurance required under <u>Section 9.1.4</u>, contain a 50/50 claims funding clause in the form of Lloyd's standard provision AVS103 in the event of a dispute as to which policy will pay in the event of a loss; and (f) have deductibles (not applicable in case of a total, constructive total and/or arranged total loss) standard in the industry which do not exceed, per occurrence, (i) USD $[\*\*\*] (provided that the Parties will use commercially reasonable efforts to obtain lower deductibles if available) or (ii) such lower amounts carried by the Carrier with respect to other aircraft similar to the Aircraft and operated on similar routes or which are otherwise reasonably acceptable to, and approved in writing by Amazon. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.6All insurance coverage will be subject to Endorsement AVN67B (or a comparable endorsement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.7Cargo legal liability insurance with limits sufficient to cover the Carrier's obligations per <u>Section 8</u>, but in no event less than USD $[\*\*\*] per loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2<u>Additional Policy Requirements</u>. All such policies will also cover Hawaiian's and a Hawaiian Provider's (as applicable) liability under this Agreement for any acts by subcontractors and will afford coverage for the Aircraft both in flight and not in flight, as applicable. In the event that any insurance on the Aircraft which is required by this <u>Section 9</u> is invalidated or is otherwise not in effect for any reason, the Aircraft must not be used to perform the Services until such time as the insurance is again valid and in full force and effect; except that such lapse in insurance will not excuse a breach of the Carrier's obligations under this Agreement. Hawaiian and the Hawaiian Provider (as applicable) will not permit its insurance policy coverage limits to be reduced below the minimum amounts set forth above or any such policy to be cancelled or allowed to expire without at least [\*\*\*] days ([\*\*\*] days for nonpayment of premiums and [\*\*\*] days, or such other period as is then customarily obtainable in the industry, in the case of any hull war and allied perils coverage) prior written notice to Amazon (provided that such notice will be a lesser period customary in the commercial aviation insurance industry with respect to war risk coverage). Hawaiian and each Hawaiian Provider (as applicable) will cause Amazon and each of its Affiliates and their officers, directors, employees, lessors and any other parties required by Amazon, at Amazon's reasonable request, ("<u>Additional Insureds</u>") to be named as additional insureds and coverage will be primary, without right of contribution from the Additional Insureds or their insurers on the policies required pursuant to this <u>Section 9.1.1</u> and <u>9.1.2</u> and will submit certificates of insurance for the coverage required under this <u>Section 9</u> at commencement of the Services and at Amazon's request. The Carrier will send certificates of insurance via email to coi-air@amazon.com. Amazon's knowledge or approval of any of Hawaiian's or a Hawaiian Provider's insurance policies does not relieve or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

limit any of Hawaiian's or such Hawaiian Provider's obligations under this Agreement, including liability under <u>Section 7</u> or <u>Section 8</u> for claims exceeding required insurance limits. The requirements described in this <u>Section 9</u> are collectively referred to as the "<u>Insurance Requirements</u>." To the extent there is a higher standard or additional insurance requirements under any Amazon Aircraft Lease/Sublease such higher standard or additional insurance requirement will be deemed to be an Insurance Requirement hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3<u>Amazon Insurance</u>. Throughout the Term, and as otherwise required herein, Amazon (including its Affiliates, as applicable), will carry at its expense: (a) Commercial General Liability insurance with limits of not less than USD $[\*\*\*] per occurrence and USD $[\*\*\*] in the aggregate; (b) Worker's Compensation insurance in all jurisdictions in the United States where Amazon Personnel perform services under this Agreement as required by law; and Employer's Liability insurance with a limit of not less than $[\*\*\*] per occurrence; and (c) Business Automobile Liability insurance as required by law with a combined single limit of not less than USD $[\*\*\*] per occurrence. Amazon will provide certificates of insurance for the coverage required under this <u>Section 9.3</u> upon the commencement of the Services in such jurisdictions and at Hawaiian's reasonable request.

**10.<u>PERSONNEL; INDEPENDENT CONTRACTORS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1<u>Relationship of the Parties</u>. Each of Hawaiian and Amazon are independent contractors. Nothing in this Agreement is to be construed as creating an agency, partnership, or joint venture relationship between or among any of the Parties, and no Party will be entitled to act on behalf of or bind the other in any manner, except to extent expressly set forth in this Agreement or any Work Order (if at all).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2<u>Personnel</u>. All Personnel furnished by a Party to provide Services are employees, agents, or subcontractors of such Party and are not employees, agents, or subcontractors of any other Party. Each Party has exclusive responsibility for and exclusive control over its Personnel, its labor and employee relations, and its policies relating to wages, hours, working conditions, and other employment conditions. Each Party: (a) will ensure that its respective Personnel comply with the other Party's rules and policies while on such other Party's premises (to the extent that such other Party has informed such Party of such rules and policies with reasonable prior notice), and, for transportation to or from the premises of a customer, supplier, or other business relation of such other Party, such Party will ensure that their respective Personnel comply with such third party's rules and policies while on such third party's premises (to the extent that such Party has received reasonable prior notice of the rules and policies); (b) has the exclusive right to hire, transfer, suspend, layoff, recall, promote, discipline, discharge, and adjust grievances with its respective Personnel; (c) is solely responsible for all salaries and other compensation of their respective Personnel who provide Services and is solely responsible for making all deductions and withholdings from the salaries and other compensation of its respective Personnel and for paying all contributions, taxes and assessments. Neither (w) Hawaiian's nor any Hawaiian Provider's Personnel are eligible to participate in any employment benefit plans or other benefits available to Amazon employees, nor (x) Amazon's nor any Amazon Affiliate's Personnel are eligible to participate in any employment benefit plans or other benefits available to Hawaiian or Hawaiian Provider employees, as applicable. Neither

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(y) Hawaiian nor any Hawaiian Provider has any authority to bind Amazon to any agreement or obligation, nor (z) Amazon nor any Amazon Affiliate has any authority to bind Hawaiian or any Hawaiian Provider to any agreement or obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3<u>Subcontractors</u>. Notwithstanding the existence or terms of any subcontract or any contracting of Services by Hawaiian or a Hawaiian Provider as described in this <u>Section 10.3</u>, Hawaiian and each Hawaiian Provider will remain jointly and severally responsible for the full performance of the Services in accordance with the Performance Standards and other requirements of this Agreement and any applicable Work Order (to the extent such Hawaiian Provider is party to such Work Order). The terms and conditions of this Agreement and any and all Work Orders are binding upon Hawaiian Providers, their Affiliates and their respective Personnel, to the extent a Hawaiian Provider is party to such Work Orders. Hawaiian and each Hawaiian Provider will: (a) ensure that their Personnel comply with this Agreement and such Work Orders; and (b) be responsible for all acts, omissions, negligence and misconduct of their Personnel. Hawaiian and any applicable Hawaiian Provider will also ensure that all of its subcontractors effectively and irrevocably waive, to the fullest extent permitted by Law, any lien upon (or other right with respect to) the packages, parcels and other cargo or transportation units transported, regardless of whether such subcontractor would otherwise be entitled to such lien or other rights under contract or applicable Law (or if and to the extent any such lien may not be waived under applicable Law, agree not to assert such lien), and waive any claim (including for amounts owed for delivery services) against Amazon and any recipient. Without in any way limiting any of Hawaiian's or any Hawaiian Provider's obligations or Amazon's rights under <u>Section 7</u>, if any subcontractor of Hawaiian or any Hawaiian Provider asserts any claim, demand, suit, or action ("<u>Hawaiian Subcontractor Claim</u>") against Amazon or any of its Affiliates and Hawaiian or a Hawaiian Provider, as the case may be, is then undergoing any bankruptcy proceeding, then Amazon may at its sole discretion, but is not obligated to, defend or settle such Hawaiian Subcontractor Claim at the cost and expense of Hawaiian, except that, for clarity, if Amazon incurs or pays any loss, damage, settlement, cost, expense, or any other liability (including reasonable attorneys' fees) relating to such Hawaiian Subcontractor Claim, Amazon may set off such amounts in full against any amounts Amazon owes to Hawaiian or demand immediate full reimbursement from Hawaiian or such Hawaiian Provider. Amazon will remain responsible for the full performance if its obligations under this Agreement. To extent Amazon subcontracts any of its obligations under this Agreement, Amazon will: (y) ensure that such entities and individuals comply with this Agreement; and (z) be responsible for all acts, omissions, gross negligence and willful misconduct of such entities and individuals. Without in any way limiting any of Amazon's obligations or Hawaiian's or any Hawaiian Provider's rights under <u>Section 7</u> if any subcontractor asserts any claim, demand, suit, or action ("<u>Amazon Subcontractor Claim</u>") against Hawaiian or any Hawaiian Provider, as the case may be, is then undergoing any bankruptcy proceeding, then Hawaiian may at its sole discretion, but is not obligated to, defend or settle such Amazon Subcontractor Claim at the cost and expense of Amazon, except that, for clarity, if Hawaiian or any Hawaiian Provider incurs or pays any loss, damage, settlement, cost, expense, or any other liability (including reasonable attorneys' fees) relating to such Amazon Subcontractor Claim, Hawaiian and the Hawaiian Providers may set off such amounts in full against any amounts Hawaiian owes to Amazon or demand immediate full reimbursement from Amazon.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**11.<u>TAXES</u>**

Hawaiian and the Hawaiian Providers are liable for, and agree to pay, all income, gross receipts, franchise, or similar taxes (including interest and penalties) associated with this Agreement or the Services provided under this Agreement that are imposed upon, as applicable, Hawaiian or the Hawaiian Providers ("<u>Income Taxes</u>").

Hawaiian and each Hawaiian Provider (as applicable) may charge and Amazon will pay applicable national, state, or local sales or use taxes, excise or value added taxes that Hawaiian or such Hawaiian Provider is legally obligated to remit ("<u>Transfer Taxes</u>"), if Hawaiian's or such Hawaiian Provider's invoices state those Transfer Taxes separately and meet the appropriate tax requirements for a valid tax invoice. Amazon may provide Hawaiian or the applicable Hawaiian Provider an exemption certificate or equivalent information acceptable to the relevant taxing authority, in which case Hawaiian or such Hawaiian Provider will not collect (or, as applicable will charge a reduced rate) the Transfer Taxes covered by such certificate. Each Party may deduct or withhold any taxes that it is legally obligated to deduct or withhold from any amounts payable to other Party under this Agreement, and will provide the other Party with documentation evidencing payment of such tax to the applicable taxing authority. If tax withholding applies to a payment under this Agreement, the Parties will cooperate with one another in using reasonable efforts to avoid or reduce such withholding, including by providing any tax forms that may be necessary in order for the other Party to not withhold tax or to withhold tax at a reduced rate. Payment to a Party, as reduced by such deductions or withholdings, will constitute full payment and settlement to the other Party of amounts payable under this Agreement. Throughout the Term, each Party will provide any forms, documents, or certifications as may be required for the other Party to satisfy any information reporting or withholding tax obligations with respect to any payments under this Agreement. Each Party will cooperate as and to the extent reasonably requested by the other Party in connection with the filing of tax returns and any tax proceeding with respect to taxes relating to payments under this agreement, and in using reasonable efforts to reduce or obtain a refund of such taxes. For the avoidance of doubt, the Hawaii General Excise Tax will be considered a Transfer Tax, and not an Income Tax, for purposes of this Section 11.

In the event that Hawaiian, any Hawaiian Provider, or Amazon fails to pay the Income Taxes or the Transfer Taxes (collectively, the "<u>Taxes</u>") that it is responsible for under this <u>Section 11</u> and such Taxes are levied upon, assessed against, collected from or otherwise imposed upon another party, the party responsible for such Taxes under this <u>Section 11</u> will immediately indemnify, defend, and hold the other harmless from and against all such indemnified taxes, including any interest or penalties associated with such Taxes. In addition, the indemnifying party will be subrogated to any rights the indemnified party may have to contest, dispute, or appeal the imposition of such Taxes.

**12.<u>WORK ORDERS AND AMAZON AIRCRAFT LEASES/SUBLEASES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1<u>Committed Aircraft</u>. Provided that this Agreement remains then in effect and no Hawaiian Event of Default has occurred and is continuing, Amazon and Carrier will enter into a CMI Work Order in the form of <u>Exhibit B-1</u> and an Amazon Aircraft Sublease in the form of

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<u>Exhibit I</u> concurrently with the delivery date for each of the Committed Aircraft. With respect to the first Committed Aircraft, Hawaiian will promptly notify Amazon of data required in connection with the addition of Airbus A330- freighter aircraft to Carrier's Operating Authority and Amazon will use commercially reasonable efforts to provide same in a timely manner. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2<u>Additional Aircraft</u>. Amazon will have the right to enter into CMI Work Orders and an Amazon Aircraft Lease/Sublease for Additional Aircraft to be operated under this Agreement upon the provision of not less than [\*\*\*] days' notice as long as the model and type of Amazon Aircraft is then-currently on the Carrier's Operating Authority, provided, however that unless otherwise mutually agreed, Amazon will not add more than [\*\*\*] Amazon Aircraft per rolling [\*\*\*] period and not more than [\*\*\*] Amazon Aircraft per rolling [\*\*\*] period. In such event the Price Schedule will apply and the Parties will enter into a CMI Work Order and an Amazon Aircraft Lease/Sublease concurrently with the delivery date for the Additional Aircraft. Should a Hawaiian Aircraft of the same aircraft type as the Amazon Aircraft be available to perform ACMI Services and the Parties elect to enter into an ACMI Work Order for same, the pricing for CMI Services in the Price Schedule will apply, except that the Aircraft and heavy maintenance components of the Price Schedule will be mutually agreed to reflect any differences reasonably associated with Hawaiian's cost of ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3<u>Amazon Aircraft Configuration</u>. At the time of delivery to Carrier, each Amazon Aircraft will be in the Baseline Configuration. Any additional modifications necessary to satisfy Carrier's operational requirements or for any other reason will be the responsibility of Carrier and must be approved in advance in writing by Amazon.

**13.<u>GENERAL</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1<u>Assignment by Hawaiian Providers</u>. Except as otherwise permitted in accordance with <u>Section 2.3</u>, the Parties acknowledge and agree that they have a strong and special personal and confidential relationship and trust in each Party's abilities and integrity in connection with the critical and difficult services contemplated under this Agreement and that neither Hawaiian nor any Hawaiian Provider may assign or otherwise transfer this Agreement (in whole or in part, directly, indirectly or by operation of Law), or subcontract or delegate any of their respective obligations, duties, or rights under this Agreement, without Amazon's prior written consent. For the purposes of this <u>Section 13.1</u>, an assignment will be deemed to include any Change of Control. Any attempt to assign, subcontract or delegate by Hawaiian or a Hawaiian Provider in violation of this <u>Section 13.1</u> will be void in each instance. Hawaiian or a Hawaiian Provider (as applicable) will give Amazon prompt written notice of any Change of Control including, within [\*\*\*] Business Days of Amazon's request but in no event less than [\*\*\*] Business Days prior to the closing of the Change of Control transaction, a certification to Amazon by the acquiring or surviving entity (including such other documentation as may be reasonably requested by Amazon), that it will continue providing the Services and that it will not otherwise discontinue, deprioritize or make business changes that will adversely impact Amazon's operations for the duration of the Term pursuant to the terms and conditions of this Agreement, the sufficiency of which documentation will be determined in Amazon's reasonable discretion. If a Change of Control occurs during the Term and Amazon has not provided its consent as provided above

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Amazon will have the right to terminate this Agreement and any Work Order upon written notice to Hawaiian or the applicable Hawaiian Provider, effective as of the date of the Change of Control or other time specified by Amazon in its notice. Subject to the foregoing in this <u>Section 13.1</u>, this Agreement will be binding upon, and inure to the benefit of, the Parties and their respective permitted successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2<u>Assignment by Amazon</u>. Amazon may assign this Agreement or any Work Order to an Affiliate or in connection with any merger, reorganization, sale of all or substantially all of its assets, or any similar transaction without the consent of Hawaiian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3<u>Governing Law/Venue</u>. The internal laws of the State of New York, excluding its conflicts of law rules, govern this Agreement. Amazon, Hawaiian, and each Hawaiian Provider irrevocably submit to the exclusive jurisdiction of the courts located in New York County, New York for the resolution of any claim or dispute arising out of or in connection with this Agreement and waives all objections to jurisdiction and venue of such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4<u>Notices</u>. Notices under this Agreement are sufficient only if made in writing and delivered by personal delivery, certified mail, nationally-recognized overnight courier service, or email with confirmed read receipt, in each case in accordance with this Section 13.4. Such notice will be deemed effective: (a) when delivered personally; (b) three Business Days after sent by certified mail (return receipt requested) to the applicable address(es) set forth in the signature blocks below or in the applicable Work Order; (c) on the next business day after being sent by a nationally recognized courier service to the applicable address(es) set forth in the signature blocks below; or (d) on the day acknowledged in writing (email or otherwise) by the recipient Party when delivered by email, but only to the extent such email notice has been sent to an employee of the recipient Party having knowledge of the matter contained in the notice (and, in the case of notice to Amazon, with a copy to contractslegal@amazon.com and airlegal@amazon.com, and in the case of notice to Hawaiian, with a copy to AvionNotices@HawaiianAir.com and is conspicuously identified as a notice under this Agreement. Any notice to Amazon must include an additional copy to: Amazon.com, Inc. Attn: General Counsel P.O. Box 81226 Seattle, WA 98108-1226. Any notice to Hawaiian must include an additional copy to: Hawaiian Airlines, Inc. Attn: Chief Legal Officer, P.O. Box 30008, Honolulu, HI 96820.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5<u>Amendment and Waiver</u>. Except as set forth in this <u>Section 13.5</u>, this Agreement may not be amended, suspended, superseded or otherwise modified except by a written instrument, expressly identifying the modifications made and signed by the authorized representative of each of the Parties provided that, except as expressly provided in or with respect to any Work Order or exhibit, in each instance in this Agreement where reference has been made to establishing or deviating from the terms of this Agreement as "<u>mutually agreed</u>" (or with substantially similar terms), the Parties may so agree solely by written instrument signed by both Parties explicitly modifying this Agreement. No waiver will be effective under this Agreement except by a written instrument, expressly identifying the rights waived and signed by the authorized representative of each Person to be bound thereby. A waiver regarding any breach or default will not constitute a waiver with respect to any different or subsequent default unless expressly provided in such waiver instrument. Without limiting the

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

generality of the foregoing, a Party will not be deemed to modify any term or waive any right or remedy under this Agreement by failing to insist on compliance with any of the terms of this Agreement or by failing in one or more instances to exercise any right under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6<u>Remedies</u>. The rights and remedies of the Parties under this Agreement are cumulative, and any Party may enforce any of its rights or remedies under this Agreement or other rights and remedies available to it at law or in equity, except that the Parties will not be entitled to any double recovery. Hawaiian and the Hawaiian Providers, will, at no cost to Amazon, promptly and satisfactorily correct any Services provided in a manner not in conformity with the requirements of this Agreement or any other noncompliance with this Agreement noted in connection with any review or inspection. Hawaiian and the Hawaiian Providers acknowledge that any material breach of this Agreement by Hawaiian or the Hawaiian Providers may cause Amazon irreparable harm for which Amazon may have no adequate remedies at Law. Accordingly, Amazon is entitled to seek specific performance of this Agreement or injunctive relief for any such breach. Each Party waives all claims for damages by reason of the wrongful issuance of an injunction and acknowledges that their only remedy in that case is the dissolution of that injunction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7<u>Construction</u>. Each Work Order, addendum, exhibit and schedule associated with this Agreement is hereby incorporated by reference, as if fully set forth herein, and each reference to an exhibit in this Agreement will include all subsections or portions of such exhibit, except that a Work Order or Work Orders may be referenced separately as context requires. If any provision of this Agreement is determined to be unenforceable in any jurisdiction, the Parties intend that this Agreement be enforced in such jurisdiction as if the unenforceable provisions were not present and that any partially valid and enforceable provisions be enforced in such jurisdiction to the extent that they are enforceable, and further agree to substitute for the invalid provision a valid provision (with respect to such jurisdiction) which most closely approximates the intent and economic effect of the invalid provisions. The Section headings of this Agreement are for convenience only and have no interpretive value. References to currency or "<u>USD</u>" or "<u>$</u>" in this Agreement refer to the United States of America Dollar unless otherwise expressly noted. Unless the context otherwise requires, as used in this Agreement, all terms used in the singular will be deemed to refer to the plural as well, and vice versa. The use of the word "including" and similar terms in this Agreement will be construed without limitation. References in this Agreement to "Business Days" will refer to each day other than a Saturday or Sunday or a day that commercial banking institutions in Seattle, Washington or Honolulu, Hawaii are authorized or required by Law to remain closed, "days" means consecutive calendar days, and "<u>week</u>" will mean a calendar week commencing on Sunday and ending on Saturday. Each Party and its counsel has reviewed and jointly participated in the establishment of this Agreement. No rule of strict construction or presumption that ambiguities will be construed against any drafter will apply. Except as expressly set forth in <u>Sections 13.8</u> and <u>13.9</u>, the terms and conditions of this Agreement will apply solely for the benefit of the Parties (including their permitted successors and assigns), and nothing under this Agreement will give any other third party any benefit, right or remedy under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8<u>Third Party Shippers</u>. Amazon may from time to time use the Services on behalf of, or make the Services available to, one or more third parties (including third parties using any

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

e-commerce website operated in whole or in part by Amazon) under this Agreement (including, for clarity, <u>Section 2.12.2</u>) (a "<u>Third Party Shipper</u>"), it being understood that Amazon shall be jointly and severally liable with such Third Party Shipper for all of obligations of "Amazon" pursuant to this Agreement in connection with such Services and Hawaiian or the applicable Hawaiian Provider may be able to assert any of its rights in connection with such Services directly against Amazon. Any deviation from the above shall require the execution of a separate agreement by and among Hawaiian, Amazon and the applicable Third Party Shipper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9<u>Work Orders</u>. This Agreement governs each Work Order. If any provision of any Work Order conflicts with the terms of this Agreement, then the terms of the Work Order will prevail to the extent necessary to resolve the conflict (but with such modification limited solely to the scope of the Work Order effecting such modification). Amazon and any of its Affiliates will have the right to enter into Carrier Work Orders and Ground Services Work Orders with Hawaiian or Hawaiian Providers pursuant to this Agreement, and this Agreement will apply to each such Work Order as if the Amazon Affiliate was a signatory to the Agreement. With respect to such Work Orders, such Amazon Affiliate becomes a Party to this Agreement and references to Amazon in this Agreement are deemed to be references to such Affiliate unless otherwise specified. Each Work Order is a separate obligation of the Amazon Affiliate that executes such Work Order, and no other Amazon Affiliate has any liability or obligation under such Work Order. Each Amazon Affiliate receiving Services under this Agreement is an express intended third party beneficiary of this Agreement and will be entitled to enforce this Agreement as if an original signatory hereto. Hawaiian will remain jointly and severally responsible for the provision of Services notwithstanding any contracting of Services to any Hawaiian Provider or any Work Orders entered into by a Hawaiian Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10<u>Hazardous Materials Notifications</u>. Hawaiian or the applicable Hawaiian Provider will notify Amazon's dangerous goods compliance department (at the phone number or email address designated by Amazon for this purpose) promptly (and in any event within [\*\*\*]) after Hawaiian or such Hawaiian Provider becomes aware of any: (a) injury to persons, property damage, environmental damage, fire, breakage, spillage, leakage, or any other accident or incident involving any product defined, designated, or classified as hazardous material, hazardous substance, or dangerous good (including for clarity, limited and excepted quantities, consumer commodity, ORM-D, lithium batteries, and radioactive and magnetic materials) under any applicable Law and transported or likely to be transported by a Carrier under this Agreement (collectively, "<u>Hazardous Materials</u>"); (b) event or circumstance involving Hazardous Materials that violates or is reasonably likely to violate any applicable Law, or (c) investigation of any shipment containing Hazardous Materials by any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11<u>Counterparts</u>. Each Party may effect the execution and delivery of this Agreement and any Work Order, amendment or addendum hereto or thereto by facsimile or electronic transmission (including in portable document format or by electronic signature) of one or more signed counterparts that together will constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.12<u>Limitations of Liabilities</u>. Under no circumstances will: (a) any Party be liable for any special, incidental, consequential, or indirect damages arising from or in relation to this

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Agreement, regardless as to the cause of action and however alleged or arising; or (b) Amazon's total aggregate liability to Hawaiian or any Hawaiian Providers under this Agreement exceed $[\*\*\*]. Notwithstanding the foregoing, nothing in this Agreement will limit a Party's liability with respect to: [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13<u>Entire Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13.1This Agreement, together with the NDA and all other documents referenced in this Agreement (including, as applicable, any then-effective Work Orders and Amazon Aircraft Lease/Sublease), constitutes the complete and final agreement of the Parties pertaining to the Services and supersedes the Parties' prior agreements, understandings, communications and discussions, oral or written, relating to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13.2In the event of a conflict between an Amazon Aircraft Sublease and this Agreement solely with respect to which Party is responsible for any costs (including costs in connection with the use, maintenance, operation and Redelivery Conditions (as defined in the Amazon Aircraft Sublease), expenses, payments, indemnification, or remedies, this Agreement will prevail to the extent necessary to resolve the conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13.3As between the Parties with respect to each Amazon Aircraft Sublease, the following expenses will be reimbursable by Amazon to Hawaiian [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)[\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)[\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)[\*\*\*];

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)[\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)[\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)[\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)[\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13.4 As between the Parties with respect to each Amazon Aircraft Sublease, the following remedies provisions of such Amazon Aircraft Sublease will not apply: [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.14<u>Cooperation</u>. Each Party will cooperate with the other Party in good faith in the performance of its respective activities contemplated by this Agreement through, among other things, making available, as reasonably requested by the other Party, such management decisions, information, approvals and acceptances in order that the provision of the Services under this Agreement may be accomplished in a proper, timely and efficient manner. Except as expressly provided otherwise, where agreement, approval, acceptance, or consent of a Party is required by any provision of this Agreement, such action will not be unreasonably withheld or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.15<u>Further Assurances</u>. The Parties agree to execute and deliver such other instruments and documents as another Party reasonably requests to evidence or effect the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.16<u>Priority Over Standard Forms</u>. The Parties may use standard business forms, including bills of lading, waybills, proof of delivery documents and invoices, but use of such forms is for convenience only and does not alter the provisions of this Agreement or any Work Order even if signed by any Party. THE PARTIES WILL BE BOUND BY, AND EACH SPECIFICALLY OBJECTS TO, ANY PROVISION THAT IS DIFFERENT FROM OR IN ADDITION TO THIS AGREEMENT (WHETHER PROFFERED ORALLY OR IN ANY WRITING, INCLUDING ANY QUOTATION, INVOICE, SHIPPING DOCUMENT, BILL OF LADING, WAYBILL, ACCEPTANCE, CONFIRMATION, CORRESPONDENCE, TARIFF, OR CIRCULAR).

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

This Air Transportation Services Agreement is signed by duly authorized representatives of the Parties.

---

| | |
|:---|:---|
| AMAZON:<br>Amazon.com Services LLC<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Amazon.com Services LLC<br>Attention: Director, Global Fleet & Aviation Sourcing<br>(if by mail):<br>P.O. Box 81226<br>Seattle, WA 98108-1226<br>(if by courier):<br>410 Terry Avenue North<br>Seattle, WA 98109-5210 USA<br>Phone: (206) 266-1000<br>Facsimile: (206) 266-2009<br><u>With a copy to</u>:<br>Attention: General Counsel<br>(same P.O. box and courier address)<br>Email: airlegal@amazon.com and contracts legal@amazon.com<br>Facsimile: (206) 266-1440 | HAWAIIAN:<br>Hawaiian Airlines, Inc.<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Hawaiian Airlines, Inc.<br>Attention: Chief Financial Officer<br>(if by USPS):<br>P.O. Box 30008<br>Honolulu, HI 96820<br>(if by courier):<br>3375 Koapaka Street<br>Suite G350<br>Honolulu, HI 96819<br>USA<br>Facsimile: (808) 840-8369<br>Phone: (808) 835-3700<br><u>With a copy to</u>:<br>Attention: Chief Legal Officer<br>(same P.O. box and courier address)<br>Email: AvionNotices@HawaiianAir.com<br>Facsimile: (808) 840-8369 |

---

*(Signature Page to Air Transportation Services Agreement)*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit A</u><br> Committed Aircraft**

---

| | | | |
|:---|:---|:---|:---|
| **Amazon Aircraft No.** | **Estimated Delivery Date** | **Services Commencement Date** | **MSN\*** |
| **#1** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |
| **#2** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |
| **#3** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |
| **#4** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |
| **#5** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |
| **#6** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |
| **#7** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |
| **#8** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |
| **#9** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |
| **#10** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] |

---

*\*The serial numbers provided are for planning purposes only and the order in which specific aircraft are delivered is subject to change by Amazon in its discretion*[\*\*\*].

*Exhibit A-1*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit B-1</u><br> Form of CMI Work Order**

This CMI WORK ORDER No. C-[●] (this "<u>Work Order</u>") is effective as of [●] ("<u>Work Order Effective Date</u>") and entered into and made a part of the Air Transportation Services Agreement between Hawaiian Airlines, Inc. ("<u>Hawaiian</u>") and Amazon.com Services LLC ("<u>Amazon</u>"), effective as of October 20, 2022 (the "<u>Agreement</u>"), to apply to the Amazon entity signatory hereto (solely for the purposes of this Work Order, "<u>Amazon</u>") and the Carrier entity signatory hereto (solely for the purposes of this Work Order, "<u>Carrier</u>") for the Services described below. Carrier and Amazon hereto each hereby joins the Agreement with respect to all rights and obligations under this Work Order. Nothing in this Work Order will relieve Amazon or Hawaiian of their respective responsibilities for the performance of any obligations under the Agreement. All capitalized terms not defined in this Work Order have the respective meanings set forth in the Agreement. In the event of a conflict between any term in the Agreement and any term in this Work Order, the term in this Work Order will prevail to the extent necessary to resolve the conflict.

1. WORK ORDER AIRCRAFT; PROVISION OF SERVICES

1.1Carrier and Amazon acknowledge that Amazon and Carrier have entered into an "<u>Aircraft [Lease/Sublease] Agreement (MSN [●]),</u>" dated [●] (the "<u>Aircraft [Lease/Sublease]</u>"), under which Carrier [leases/subleases] from Amazon one [●] Amazon Aircraft bearing Manufacturer's Serial Number [●] and Registration Number N[●] (the "<u>Work Order Aircraft</u>").

1.2Carrier will operate the Work Order Aircraft in the performance of the cargo flights set forth in the Flight Schedule. The flights described in the Flight Schedule and the other Services performed by Carrier hereunder will, for purposes of this Work Order, be referred to as the "<u>Work Order Services.</u>"

2. EQUIPMENT AND SERVICES; REIMBURSABLE EQUIPMENT AND SERVICES

Carrier will provide, or cause to be provided, the Personnel, capabilities, equipment and other items described in <u>Section 2.5</u> of the Agreement as needed to provide Work Order Services.

3. COMPENSATION

Compensation for the Work Order Services will be as provided in the Price Schedule and as otherwise specified in the Agreement.

4. CHANGES IN SCOPE; AMENDMENTS TO WORK ORDERS

Any change to Carrier's scope of Work Order Services under this Work Order must be authorized in writing by both parties, and in the case of Amazon, is binding only if signed by an Amazon Leadership Representative.

*Exhibit B-1*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

5. EFFECTIVENESS AND TERM OF WORK ORDER

This Work Order will be effective upon the Work Order Effective Date and will terminate in accordance with <u>Section 4.6</u> or <u>4.8</u> of the Agreement.

6.[LEASE/SUBLEASE]

Amazon and Carrier acknowledge and agree that this Work Order will terminate upon the expiration or prior termination of the Aircraft [Lease/Sublease].

SIGNATURE PAGE IMMEDIATELY FOLLOWS]

*Exhibit B-2*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

This Work Order has been duly executed and delivered by duly authorized officers of the Parties on the date first written above.

---

| | |
|:---|:---|
| AMAZON:<br>Amazon.com Services LLC<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Amazon.com Services LLC<br>Attention: Director, Global Fleet & Aviation Sourcing<br>(if by mail):<br>P.O. Box 81226<br>Seattle, WA 98108-1226<br>(if by courier):<br>410 Terry Avenue North<br>Seattle, WA 98109-5210 USA<br>Phone: (206) 266-1000<br>Facsimile: (206) 266-2009<br><u>With a copy to</u>:<br>Attention: General Counsel<br>(same P.O. box and courier address)<br>Email: airlegal@amazon.com and<br>contractslegal@amazon.com<br>Facsimile: (206) 266-1440 | CARRIER:<br>Hawaiian Airlines, Inc.<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Hawaiian Airlines, Inc.<br>Attention: Chief Financial Officer<br>(if by USPS):<br>P.O. Box 30008<br>Honolulu, HI 96820<br>(if by courier):<br>3375 Koapaka Street<br>Suite G350<br>Honolulu, HI 96819<br>USA<br>Facsimile: (808) 840-8369<br>Phone: (808) 835-3700<br><u>With a copy to</u>:<br>Attention: Chief Legal Officer<br>(same P.O. box and courier address)<br>Email: <u>AvionNotices@HawaiianAir.com</u><br>Facsimile: (808) 840-8369 |

---

*Exhibit B-3*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit B-2</u><br> Form of ACMI Work Order**

This ACMI WORK ORDER No. C-[●] (this "<u>Work Order</u>") is effective as of [●] ("<u>Work Order Effective Date</u>") and entered into and made a part of the Air Transportation Services Agreement between Hawaiian Airlines, Inc. ("<u>Hawaiian</u>") and Amazon.com Services LLC ("<u>Amazon</u>"), effective as of October 20, 2022 (the "<u>Agreement</u>"), to apply to the Amazon entity signatory hereto (solely for the purposes of this Work Order, "<u>Amazon</u>") and the Carrier entity signatory hereto (solely for the purposes of this Work Order, "<u>Carrier</u>") for the Services described below. Carrier and Amazon hereto each hereby joins the Agreement with respect to all rights and obligations under this Work Order. Nothing in this Work Order will relieve Amazon or Hawaiian of their respective responsibilities for the performance of any obligations under the Agreement. All capitalized terms not defined in this Work Order have the respective meanings set forth in the Agreement. In the event of a conflict between any term in the Agreement and any term in this Work Order, the term in this Work Order will prevail to the extent necessary to resolve the conflict.

1. WORK ORDER AIRCRAFT; PROVISION OF SERVICES`

1.1Carrier will provide one [●] Hawaiian Aircraft to be used in connection with the Services (the "<u>Work Order Aircraft</u>").

1.2Carrier will operate the Work Order Aircraft in the performance of the cargo flights set forth in the Flight Schedule. The flights described in the Flight Schedule and the other Services performed by Carrier hereunder will, for purposes of this Work Order, be referred to as the "<u>Work Order Services.</u>"

2. EQUIPMENT AND SERVICES; REIMBURSABLE EQUIPMENT AND SERVICES

Carrier will provide, or cause to be provided, the following Personnel, services, equipment and other items at Carrier's expense, without reimbursement by Amazon:

2.1The Work Order Aircraft; and

2.2The Personnel, capabilities, equipment and other items described in <u>Section 2.5</u> of the Agreement as needed to provide Work Order Services.

3. COMPENSATION

Compensation for the Work Order Services will be as provided in the Price Schedule and as otherwise specified in the Agreement.

4. CHANGES IN SCOPE; AMENDMENTS TO WORK ORDERS

Any change to Carrier's scope of Work Order Services under this Work Order must be authorized in writing by both parties, and in the case of Amazon, is binding only if signed by an Amazon Leadership Representative.

*Exhibit B-4*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

5. EFFECTIVENESS AND TERM OF WORK ORDER

This Work Order will be effective upon the Work Order Effective Date and will terminate in accordance with <u>Section 4.6</u> or <u>4.8</u> of the Agreement.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

*Exhibit B-5*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

This Work Order has been duly executed and delivered by duly authorized officers of the Parties on the date first written above.

---

| | |
|:---|:---|
| AMAZON:<br>Amazon.com Services LLC<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Amazon.com Services LLC<br>Attention: Director, Global Fleet & Aviation Sourcing<br>(if by mail):<br>P.O. Box 81226<br>Seattle, WA 98108-1226<br>(if by courier):<br>410 Terry Avenue North<br>Seattle, WA 98109-5210 USA<br>Phone: (206) 266-1000<br>Facsimile: (206) 266-2009<br><u>With a copy to</u>:<br>Attention: General Counsel<br>(same P.O. box and courier address)<br>Email: airlegal@amazon.com and<br>contractslegal@amazon.com<br>Facsimile: (206) 266-1440 | CARRIER:<br>Hawaiian Airlines, Inc.<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Hawaiian Airlines, Inc.<br>Attention: Chief Financial Officer<br>(if by USPS):<br>P.O. Box 30008<br>Honolulu, HI 96820<br>(if by courier):<br>3375 Koapaka Street<br>Suite G350<br>Honolulu, HI 96819<br>USA<br>Facsimile: (808) 840-8369<br>Phone: (808) 835-3700<br><u>With a copy to</u>:<br>Attention: Chief Legal Officer<br>(same P.O. box and courier address)<br>Email: <u>AvionNotices@HawaiianAir.com</u><br>Facsimile: (808) 840-8369 |

---

*Exhibit B-6*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit B-3</u><br> Blocked Space Work Order No. BS-[●]\***

*\* Subject to such other terms and conditions as may be mutually agreed upon by the parties hereto.*

This BLOCKED SPACE WORK ORDER No. BS-[●] (this "<u>Work Order</u>") is effective as of [●] ("<u>Work Order Effective Date</u>") and entered into and made a part of the Air Transportation Services Agreement between Hawaiian Airlines, Inc. ("<u>Hawaiian</u>") and Amazon.com Services LLC ("<u>Amazon</u>"), effective as of October 20, 2022 (the "<u>Agreement</u>"), to apply to the Amazon entity signatory hereto (solely for the purposes of this Work Order, "<u>Amazon</u>") and the Carrier entity signatory hereto (solely for the purposes of this Work Order, "<u>Carrier</u>") for the Services described below. Carrier and Amazon each hereby joins the Agreement with respect to all rights and obligations under this Work Order. Nothing in this Work Order will relieve Amazon or Hawaiian of their respective responsibilities for the performance of any obligations under the Agreement. All capitalized terms not defined in this Work Order have the respective meanings set forth in the Agreement. In the event of a conflict between any term in the Agreement and any term in this Work Order, the term in this Work Order will prevail to the extent necessary to resolve the conflict.

1. PROVISION OF SERVICES

1.1Carrier will operate the flights pursuant to the flight schedule attached hereto as Attachment 1 ("<u>Flight Schedule</u>") and Amazon will have access to cargo space of [●] on each flight set forth in the Flight Schedule (the "<u>Blocked Space</u>"). Amazon may also request from Carrier additional blocked space on space available basis ("<u>Supplemental Blocked Space</u>").

1.2Carrier will provide Amazon at least [●] days' notice of any changes to the Flight Schedule.

1.3Amazon will tender the cargo no later than [●] minutes prior to the scheduled departure times set forth on the Flight Schedule (or as otherwise mutually agreed) ("<u>Cargo Tender Time</u>"); provided, however, that Carrier will use all commercially reasonable efforts to transport any cargo delivered by Amazon after such time. Carrier will tender all cargo to Amazon or Amazon's representative no later than [●] minutes following the actual arrival time of each Blocked Space flight ("<u>Cargo Recovery Time</u>").

1.4Within [●] hours after the completion of a flight, Carrier will provide Amazon with the following reports: (a) cargo tender receipt (including actual Cargo Tender Time, weight, package count); (b) actual flight departure time, (c) actual flight arrival time, and (d) actual Cargo Recovery Time, in a format acceptable to Amazon.

1.5[●] will provide all Ground Services at the origin and destination stations.

1.6Carrier's Blocked Space Arrival Performance will be governed by the performance standards set forth in Attachment 2 ("<u>Blocked Space Performance Standards</u>").

*Exhibit B-7*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1.7The provision of the Blocked Space and any Supplemental Blocked Space on flights described in the Flight Schedule and the other Services performed by Carrier hereunder in connection with same will, for purposes of this Work Order, be referred to as the "<u>Work Order Services</u>".

2. COMPENSATION

2.1Compensation for the Work Order Services will be $[●] per flight for the Blocked Space. For any Supplemental Blocked Space mutually agreed in writing, the compensation will be $[●] per [●] on each flight

2.2If a flight is cancelled for any reason (including Force Majeure), Carrier will promptly notify Amazon and will place Amazon's cargo on the next flight on the route at no additional cost to Amazon in excess of the cost that would have been incurred by Amazon had the flight operated as scheduled.

2.3<u>Section 2.6</u> of the Agreement will not apply to the Work Order Services.

2.4No other amounts will be payable by Amazon to Carrier for the Work Order Services.

3. SPECIFIC AGREEMENT TERMS

The Parties agree that 2.8.8 (Payload Reports), 2.10.2 (Amendments to Flight Schedule), 2.10.3 (Temporary Changes to Flight Schedule), 2.10.4 (Unscheduled Stops), 2.11 (Aircraft Operations), 2.12 (Operations for Third Parties), 2.15 (Destruction or Casualty Loss of Aircraft), 2.16 (Sustainability; Fuel Conservation), and 2.18 (Information Technology Systems) will not apply to the Work Order Services.

4. CHANGES IN SCOPE; AMENDMENTS TO WORK ORDERS

Any change to Carrier's scope of Work Order Services under this Work Order must be authorized in writing by both parties, and in the case of Amazon, is binding only if signed by an Amazon Leadership Representative.

5. EFFECTIVENESS AND TERM OF WORK ORDER

This Work Order will be effective upon the Work Order Effective Date and will continue until [●], unless (a) earlier terminated by either Party for its convenience on [●] calendar days' notice; or (b) earlier terminated by either Party in accordance with <u>Section 4.6</u> or <u>4.8</u> of the Agreement.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

*Exhibit B-8*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

This Work Order has been duly executed and delivered by duly authorized officers of the Parties on the date first written above.

---

| | |
|:---|:---|
| AMAZON:<br>Amazon.com Services LLC<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Amazon.com Services LLC<br>Attention: Director, Global Fleet & Aviation Sourcing<br>(if by mail):<br>P.O. Box 81226<br>Seattle, WA 98108-1226<br>(if by courier):<br>410 Terry Avenue North<br>Seattle, WA 98109-5210 USA<br>Phone: (206) 266-1000<br>Facsimile: (206) 266-2009<br><u>With a copy to</u>:<br>Attention: General Counsel<br>(same P.O. box and courier address)<br>Email: airlegal@amazon.com and<br>contractslegal@amazon.com<br>Facsimile: (206) 266-1440 | CARRIER:<br>Hawaiian Airlines, Inc.<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Hawaiian Airlines, Inc.<br>Attention: Chief Financial Officer<br>(if by USPS):<br>P.O. Box 30008<br>Honolulu, HI 96820<br>(if by courier):<br>3375 Koapaka Street<br>Suite G350<br>Honolulu, HI 96819<br>USA<br>Facsimile: (808) 840-8369<br>Phone: (808) 835-3700<br><u>With a copy to</u>:<br>Attention: Chief Legal Officer<br>(same P.O. box and courier address)<br>Email: AvionNotices@HawaiianAir.com<br>Facsimile: (808) 840-8369 |

---

*Exhibit B-9*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Attachment 1 to Blocked Space Work Order<br>FLIGHT SCHEDULE**

[●]

*Exhibit B-10*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Attachment 2 to Blocked Space Work Order**

**BLOCKED SPACE PERFORMANCE STANDARDS**

1. The term "<u>Blocked Space Arrival Performance</u>" means the percentage of flights flown in performing the Blocked Space Services during [\*\*\*] where the Aircraft arrives within [\*\*\*] minutes of the scheduled arrival time for the flight based on the Flight Schedule. In determining Blocked Space Arrival Performance, only delays that are attributable to Carrier Delays will be considered. For clarity, flights that are cancelled by Carrier for Carrier Delays will be considered delayed for the purposes of determining Blocked Space Arrival Performance and flights that are cancelled due to Force Majeure will not be considered delayed for the purposes of determining Blocked Space Arrival Performance.

2. The Parties acknowledge that the cumulative Blocked Space Arrival Performance target for this Agreement is [●]%. Carrier will use its best efforts to achieve and maintain this target Blocked Space Arrival Performance.

3. Amazon will receive a credit (calculated based on <u>Section 5</u> below) if Carrier's Blocked Space Arrival Performance is less than [●]% for the month ("Performance Penalty"). For clarity, there will be no Performance Penalty if the cumulative Blocked Space Arrival Performance for a month is equal to or greater than [●]%. Any Performance Penalty will be applied by Carrier on the Monthly Invoice (or, as applicable, upon the termination or expiration of this Work Order).

4. Amazon will pay a bonus (calculated based on <u>Section 5</u> below) if Carrier's Blocked Space Arrival Performance is greater than or equal to [●]% for the [\*\*\*] ("Performance Bonus"). Any Performance Bonus will be charged by Carrier on the Monthly Invoice (or, as applicable, upon the termination or expiration of this Work Order).

5. The Performance Penalty or Bonus will be calculated for each flight delayed or cancelled due to a Carrier Delay according to the length of the delay as shown in the below table. For clarity, the Performance Penalty or Bonus for a month will be cumulative of the amounts for all such delayed flights.

Average Blocked Space Arrival Performance Bonus/Penalty for Blocked Space Arrival Performance

---

| | | | | |
|:---|:---|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

*Exhibit B-11*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit B-4</u><br> Form of Ground Services Work Order**

This GROUND SERVICES WORK ORDER No. G-[●] (this "<u>Work Order</u>") is effective as of [●] ("<u>the Work Order Effective Date</u>") and entered into and made a part of the Air Transportation Services Agreement between Hawaiian Airlines, Inc. ("<u>Hawaiian</u>") and Amazon.com Services LLC ("<u>Amazon</u>"), effective as of October 20, 2022 (the "<u>Agreement</u>"), to apply to the Amazon entity signatory hereto (solely for the purposes of this Work Order, "<u>Amazon</u>") and the Provider entity signatory hereto (solely for the purposes of this Work Order, "<u>Provider</u>") for the Services described below. Provider and Amazon each hereby join the Agreement with respect to all rights and obligations under this Work Order. Nothing in this Work Order will relieve Amazon and Hawaiian of their respective responsibilities for the performance of any obligations contained in the Agreement. All capitalized terms not defined in this Work Order have the respective meanings set forth in the Agreement. In the event of a conflict between any term in the Agreement and any term in this Work Order, the term in this Work Order will prevail to the extent necessary to resolve the conflict.

1. GROUND SERVICES.

1.1Provider will provide the following categories of facilities or services, or to cause the following categories of facilities or services to be provided, at the airport identified on Attachment A (the "<u>Gateway</u>"): [(a) the cargo and warehouse handling services (the "<u>Cargo Services</u>"); and (b) the aircraft handling services (the "<u>Ground Handling Services</u>") to support the Services provided by the Carriers pursuant to the Agreement, as described on Attachment A (collectively, the "<u>Ground Services</u>").]

1.2In the performance of the Ground Services, Provider will comply, and will cause its Personnel to comply, with the service levels, procedures, reporting requirements, tracking requirements, and other performance standards set forth in Attachment B (the "<u>Ground Services Performance Standards</u>").

2. COMPENSATION.

Amazon will pay to Hawaiian the compensation set forth in Attachment C.

3. CHANGES IN SCOPE.

Any change to the scope of the Ground Services provided by Provider under this Work Order must be authorized in writing by both Parties (except as provided in <u>Section 4.2</u> of this Work Order), and in the case of Amazon, is binding only if signed by an Amazon Leadership Representative.

4. EFFECTIVENESS AND TERM OF WORK ORDER.

4.1This Work Order will be effective upon the Work Order Effective Date and will have an Expiration Date that is [\*\*\*] from the Work Order Effective Date. It will thereafter

*Exhibit B-12*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

automatically renew for subsequent [\*\*\*] terms unless terminated in accordance with <u>Section 4.6</u> or <u>4.8</u> of the Agreement.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

*Exhibit B-13*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Amazon and Provider Services have executed this Work Order effective as of the day and year first set forth above.

---

| | |
|:---|:---|
| AMAZON:<br>Amazon.com Services LLC<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Amazon.com Services LLC<br>Attention: Director, Global Fleet & Aviation Sourcing<br>(if by mail):<br>P.O. Box 81226<br>Seattle, WA 98108-1226<br>(if by courier):<br>410 Terry Avenue North<br>Seattle, WA 98109-5210 USA<br>Phone: (206) 266-1000<br>Facsimile: (206) 266-2009<br><u>With a copy to</u>:<br>Attention: General Counsel<br>(same P.O. box and courier address)<br>Email: airlegal@amazon.com and<br>contractslegal@amazon.com<br>Facsimile: (206) 266-1440 | PROVIDER:<br>Hawaiian Airlines, Inc.<br>By:________________________________<br>Name:______________________________<br>Title:_______________________________<br>Date Signed:_________________________<br><u>Address</u>:<br>Hawaiian Airlines, Inc.<br>Attention: Chief Financial Officer<br>(if by USPS):<br>P.O. Box 30008<br>Honolulu, HI 96820<br>(if by courier):<br>3375 Koapaka Street<br>Suite G350<br>Honolulu, HI 96819<br>USA<br>Facsimile: (808) 840-8369<br>Phone: (808) 835-3700<br><u>With a copy to</u>:<br>Attention: Chief Legal Officer<br>(same P.O. box and courier address)<br>Email: AvionNotices@HawaiianAir.com<br>Facsimile: (808) 840-8369 |

---

*Exhibit B-14*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ATTACHMENT A TO WORK ORDER: GROUND SERVICES\*

*\*Note: Specific Services, equipment and facilities are subject to mutual agreement.*

1. Airport:

[Name]

2. Aircraft Handling Services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Ground handling of aircraft (including aircraft loading and unloading, and pushback);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Facilitate aircraft fueling;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Ramp handling (including lavatory and potable water servicing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)All aircraft weight and balance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Aircraft load planning in accordance with Amazon's instructions, and Carrier Programs and instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Marshaling and wingwalking;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Required ground support equipment and related maintenance, supplies and fuel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Facilities, including parking positions, as necessary to handle the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)ULD unloading for inbound aircraft; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)ULD loading for outbound aircraft.

3. Cargo Services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Removal of gaylords, pallets, bags, and packages from ULDs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Loading and sorting of gaylords, pallets, bags, and packages on outbound trucks owned or procured by Amazon ("<u>Trucks</u>") in accordance with Amazon's procedures and instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Unloading of gaylords, pallets, bags, and packages from inbound Trucks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Loading and sorting of gaylords, pallets, bags and packages onto ULDs in accordance with Amazon's procedures and instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Loading of empty ULDs and related equipment onto outbound aircraft in accordance with Amazon's instructions, Carrier Programs, and Carrier instructions;

*Exhibit B-15*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Providing required facilities and equipment and related maintenance and supplies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Scanning of ULD, gaylord, pallet and package shipment labels; printing, reprinting and applying shipment labels; recording aircraft and truck movements in software provided by Amazon, in accordance with Amazon's procedures and instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Weighing processed freight and ULDs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Ordering ad hoc Trucks, in accordance with Amazon's procedures and instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Ferrying ULDs, gaylords, pallets and packages between facilities on Trucks, as guided by and agreed upon with Amazon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Snow removal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Gateway oversight, reporting, and administration, to include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Operation recap reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Tracking and reporting ULD inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Reporting using Amazon's Case Management system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Maintaining Truck activity log;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Maintaining scale activity log;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Handling of Bills of Lading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Dolly audits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)Scale calibrations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)Sealing Trucks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)Staffing log, to include actual and planned staffing, by shift; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)Other administrative functions in accordance with Amazon's procedures and instructions.

4.[Truck Yard Management Services\*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Providing required facilities and equipment and related maintenance and supplies to operate and maintain a truck yard;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Facilitate vehicle and equipment fueling;

*Exhibit B-16*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Truck spotting services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Security services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Snow removal; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Janitorial services.]

\*Rates and services (if available) subject to mutual agreement by parties.

*Exhibit B-17*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ATTACHMENT B TO WORK ORDER: GROUND SERVICES PERFORMANCE STANDARDS\*

*\*Note: Attachment B to include only the below KPIs and associated SLAs and reports applicable to the Ground Services to be provided.*

1. Except in the case of Force Majeure, the Ground Services Key Performance Indicators ("KPIs") are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)On Time Flight Departure ([\*\*\*]): Completion of the Ground Services and the Aircraft ready to depart no later than the departure time set forth in the Flight Schedule, as same may be changed from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)On Time Line Haul Departure: Completion of the Ground Services and both scheduled and ad hoc Trucks ready to depart with all planned freight as soon as reasonably possible after aircraft arrival no later than the scheduled departure time (SDT) set forth in the Package Flow Plan, as same may be changed from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Scan Compliance: Scanning of shipment labels in accordance with Amazon's procedures and instructions in order to maximize the ratio of scanned labels to scannable labels at both origin and destination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Aircraft Build Plan Compliance: Completion of the Ground Services with the ULDs, bags, and packages loaded on the Aircraft in compliance with the Build Plan and with the physical weights and positions in compliance with the Load Data Message (LDM), in accordance with Amazon's procedures and instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Rolled Freight: Completion of the Warehouse and Cargo Handling Services with all packages departed on their scheduled outbound Truck or aircraft no later than the scheduled departure time for those packages as set in the Package Flow Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Aircraft CAPS: Completion of the Ground Services in accordance with complete utilization of Aircraft capacity with no CAPS instituted, as set in the Package Flow Plan.

2. The Warehouse and Cargo Handling Services Service Level Agreements ("SLAs") for certain KPI are as follows:

*Exhibit B-18*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

3. Warehouse and Cargo Handling Services performance bonuses or penalties may increase or decrease the amount payable by Amazon pursuant to Exhibit C to this Work Order ("Ground Services Fee") and, if applicable, will be reconciled on a monthly basis. A performance bonus equal to [\*\*\*]% of the total Ground Services Fee for a calendar month will be payable by Amazon to Provider if the Target SLA listed in the above table for a KPI is met or exceeded for the month. An additional performance bonus equal to [\*\*\*]% of the total Ground Services Fee for a calendar month will be payable by Amazon to Provider if the Secondary Bonus SLA listed in the above table for a KPI is met for the month (not to exceed [\*\*\*]).

4. A performance penalty equal to [\*\*\*]% of the total Ground Services Fee for a calendar month will be deducted from the total Ground Service Fee if the Baseline SLA listed in the above table for a KPI is not met or exceeded for the month. An additional performance penalty equal to [\*\*\*]% of the total Ground Services Fee for a calendar month will be deducted from the total Ground Service Fee if the if the Secondary Penalty

*Exhibit B-19*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

SLA listed in the above table for a KPI is not met or exceeded for the month (not to exceed [\*\*\*]).

5. If any KPI for any four consecutive weeks falls under [\*\*\*]% (or, in the case of Rolled Freight, above [\*\*\*]%), this will constitute an Event of Default under the Agreement.

6. Failure to Report Aircraft Damage: If at any point during the term of this Work Order, Provider does not immediately report aircraft damage to Amazon and Carrier, Amazon will charge Provider a $[\*\*\*] penalty for each unreported aircraft damage, to be deducted from the total Ground Services Fee (in addition to any claims for which Provider may be responsible).

7. Provider will provide to Amazon daily electronic reports in a format acceptable to Amazon documenting, among other information as requested by Amazon within timeframe defined by Amazon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the arrival and departure time of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the arrival and departure time of Trucks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the number, type and serial number of ULDs unloaded from the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the number type and serial number of ULDs left on the Aircraft designated as pass-through cargo, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the number of gaylords, pallets, bags and packages loaded onto Trucks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)the number, type and serial number of ULDs loaded onto the aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)the number, make, model, availability status, and type of each ground support equipment and other equipment used by Provider to perform Services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)any material damage to ULDs, gaylords, pallets, bags, equipment, or packages or aircraft, whether or not caused by Provider;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)staffing plans in accordance with the then current MOP, to include critical roles, and carrier trained Personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)any delays or failures to meet the Performance Standards, including a detailed description of the root cause of the delay and corrective actions.

8. In addition to the KPIs defined in <u>Section 1</u> above, Amazon will track and measure, and Provider will, at all times during the term of this Work Order, use commercially reasonable efforts to continuously improve its performance of the Services as measured against the following KPIs:

*Exhibit B-20*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Cargo overspill: The number of gaylords, pallets and packages left after departure of the flight

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Number of ad hoc outbound Trucks ordered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The rate of correct identification of ULD movements in the Integrated Load Plan Viewer (ILPV), and any other system as directed by the Amazon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Addition of correct departure and arrival timestamps for Trucks and aircraft in Yard Management System ("<u>YMS</u>") and as measured by actual departure and arrival times of Trucks and Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Volume of any missorted gaylords, pallets, packages, ULDs, or cargo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Categorized (bucketed) number of packages processed by the Gateway that failed delivery on the promised customer delivery day due to reasons under the reasonable control of Provider; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)ULD load factor: The total number of packages scanned to aircraft divided by total count of ULDs processed by the vendor and loaded onto the Aircraft.

*Exhibit B-21*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ATTACHMENT C TO WORK ORDER: PRICE SCHEDULE

*Exhibit B-22*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit C</u>**

**Performance Standards**

1.<u>Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1To the extent ULDs are provided by Amazon, the Carrier will return ULDs that are not suitable for air transportation and carrier-damaged ULDs to the address or addresses designated by Amazon at Amazon's cost in accordance with <u>Section 2.6</u> of the Agreement. The Carrier's return delivery of such ULDs will be made according to agreed procedures, and the Carrier will use commercially reasonable efforts to develop a mutually-acceptable system of consolidating these ULDs to minimize Amazon's shipping costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2The Carrier will meet the flight availability commitments set forth in the Flight Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3The Carrier will in no circumstances alter any information on the label provided by Amazon on any package provided by Amazon or any third party for shipment as part of the Services.

2.<u>Reports and Electronic Communications</u>. The Carrier will provide daily electronic reports including: (a) performance and exception reports; (b) electronic summary reports itemizing volume on a periodic basis determined by Amazon; (c) such other reports described in this Agreement; and (d) such other reports reasonably requested by Amazon, in the formats Amazon provides (collectively, "<u>Amazon Reports and Electronic Communications</u>").

3.<u>Service Disruption</u>. If the Carrier experiences any material stoppage or disruption that generally diminishes its capacity to transport and deliver parcels, it will allocate its remaining available cargo freighter capacity, if any, to Amazon's account on terms no less favorable than those granted to any other of the Carrier's customers.

4.<u>Arrival Performance Incentive/Disincentive</u>. This <u>Section 4</u> will not apply for Blocked Space Services or any Aircraft designated as a Network Spare unless the Network Spare is operating as a Spare Aircraft for a flight under the Flight Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1Amazon will pay to Hawaiian a monthly financial incentive bonus ("<u>Monthly Incentive Bonus</u>") for achieving an Arrival Performance greater than or equal to [\*\*\*]% during such month ("<u>Target Arrival Performance</u>"). Alternatively, Hawaiian will provide Amazon with a credit ("<u>Monthly Disincentive Credit</u>") against amounts owed by Amazon to Hawaiian hereunder as a financial disincentive for achieving an Arrival Performance less than the Target Arrival Performance during such month. The Monthly Incentive Bonus and the Monthly Disincentive Credit to which Hawaiian may be entitled or subject to each month will be paid or credited on a per Aircraft basis, as set forth in the table below. For

*Exhibit C-1*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

clarity, payment to Hawaiian of a Monthly Incentive Bonus or Monthly Disincentive Credit will not cure a Hawaiian or Carrier Event of Default.

For purposes of this Agreement, including for the purpose of determining the Monthly Incentive Bonus and the Monthly Disincentive Credit under this Agreement, the term "<u>Arrival Performance</u>" means, the percentage of all flights flown in performing the CMI or ACMI Services under this Agreement (including flights cancelled for a Carrier Delay), in any given calendar month which arrive within not more than [\*\*\*] minutes after the scheduled arrival time for each flight. If a secondary flight (i.e., any flight leg in a rotation subsequent to the initial flight leg) is delayed following earlier delayed flight leg(s) in the same rotation in the prior [\*\*\*] hour period (measured from the original scheduled departure time of the original delayed flight), the scheduled arrival time of the delayed secondary flight will be deemed to be extended by the length of the delay(s) that were experienced by such prior flight legs within the rotation, except that if the arrival time and the departure time for the Aircraft's next flight (both as reflected on the Flight Schedule) exceeds [\*\*\*] hours, then delays from prior flight legs will not be taken into account and there will be no such deemed extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2In determining whether a flight has arrived within not more than [\*\*\*] minutes after its scheduled arrival time, (a) only delays that are attributable to circumstances that are within the reasonable control of the Carrier will be taken into account, which delays will be presumed to include: (i) the mechanical breakdown of an Aircraft, (ii) the unavailability of an Aircraft due to regular scheduled maintenance, (iii) the acts or omissions of a Flight Crew, (iv) the unavailability of an Aircraft or Substitute Aircraft and (v) flight planning, flight following or dispatch issues (collectively, "<u>Carrier Delays</u>"); and (b) no flight directly affected by Force Majeure will be deemed to be delayed, regardless of its arrival time. Notwithstanding the foregoing, the delay codes labelled as Carrier Controllable in the below table will be deemed to be Carrier Delays because they are within the reasonable control of a Carrier except that delay codes marked with a "<u>YES\*</u>" will only be presumed to represent delays within the reasonable control of a [\*\*\*]. For clarity, although the table is intended to be comprehensive, it may not cover all delays that are within the reasonable control of a Carrier.

*Exhibit C-2*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**DELAY CODE TABLE**

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

*Exhibit C-3*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

*Exhibit C-4*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

*Exhibit C-5*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3The Monthly Incentive Bonus or Monthly Disincentive Credit will be: (a) assessed on a monthly basis per Aircraft providing CMI or ACMI Services (up to [\*\*\*] Aircraft, excluding any Network Spares); and (b) reflected by Hawaiian on the Monthly Invoice provided in accordance with this <u>Exhibit C</u> for the preceding calendar month in which the incentive or credit has been calculated. The Monthly Incentive Bonus/Monthly Disincentive Credit will not begin to apply until the first day of the month following the effective date (as defined in the applicable Work Order) for the third CMI (or ACMI, if applicable) Work Order.

ARRIVAL PERFORMANCE INCENTIVE/DISINCENTIVE TABLE

---

| | | |
|:---|:---|:---|
| **Monthly Network Arrival Performance** | **Monthly Bonus/Credit Amount** | **Monthly Bonus/Penalty Credited to** |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

*Exhibit C-6*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit D</u>**

**Invoices; Payments; Deposits; Weekly Activity Statements**

1.<u>Invoices</u>. Hawaiian will provide monthly electronic invoices to Amazon as set forth in this <u>Exhibit D</u>. Each such invoice will reflect the relevant charges due from Amazon to Hawaiian for the relevant period on a consolidated basis for Hawaiian and all Hawaiian Providers providing Services under the Agreement during that period.

2.<u>Monthly Deposits by Amazon</u>. On or before the [\*\*\*] day of each month (or the subsequent business day if the [\*\*\*] is not a business day) during which Services are provided under the Agreement, Amazon will provide to Hawaiian, [\*\*\*]. With respect to Network Spares, Amazon will pay [\*\*\*]% of the applicable Fixed Monthly Costs listed in the Price Schedule for each Network Spare but no assumed usage will apply.

3.<u>Weekly Activity Statements Provided by Hawaiian</u>. Hawaiian will provide to Amazon a weekly statement of activity under the Agreement (a "<u>Weekly Activity Statement</u>") within [\*\*\*] Business Days following the end of each week when Services were performed during the preceding week. Each such Weekly Activity Statement will contain an identification of the flights performed, the date of performance, the Carrier and Amazon reference identification numbers, and flight origin and destination, reflecting the number of Block Hours and Flight Cycles actually flown by all Carriers under this Agreement during the previous week.

4.<u>Monthly Invoice; Reconciliation</u>. Within [\*\*\*] Business Days following the end of each calendar month during which Services are provided under the Agreement, Hawaiian will provide to Amazon one or more invoices with respect to the preceding calendar month (a "<u>Monthly Invoice</u>") reflecting the following with respect to the preceding month:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1<u>Reconciliation of Fixed Monthly Charge</u>. A statement reconciling (1) the amount of the estimated Fixed Monthly Charge deposited with Hawaiian under the monthly deposit during the preceding calendar month with (2) the Fixed Monthly Charge actually payable under the Agreement for the preceding calendar month, together with a statement of any additional amount due from Amazon to Hawaiian or any credit due from Hawaiian to Amazon as a result of that reconciliation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2<u>Reconciliation of Variable Charges</u>. A statement reconciling (1) the amount of the estimated Variable Charges deposited with Hawaiian under the monthly deposit during the preceding calendar month with (2) the actual Variable Charges payable by Amazon under the Agreement for the preceding calendar month, together with a statement of any additional amount due from Amazon to Hawaiian or any credit due from Hawaiian to Amazon as a result of that reconciliation. With respect to Network Spares, if the actual Variable Charges accrued by the Network Spare for the month are less than the Minimum Availability Window Charge specified in the Price Schedule for the applicable number of Availability Windows, then Amazon will be responsible to pay the applicable Minimum

*Exhibit D-1*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Availability Window Charge instead of the actual Variable Charges accrued by the Network Spare.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3<u>Reconciliation of Fuel Charges</u>. A statement reconciling (1) the amount of the estimated Fuel Charges deposited with Hawaiian under the monthly deposit during the preceding calendar month with (2) the actual Fuel Charges payable by Amazon under the Agreement for the preceding calendar month, together with a statement of any additional amount due from Amazon to Hawaiian or any credit due from Hawaiian to Amazon as a result of that reconciliation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4<u>Reconciliation of Maintenance Fuel</u>. A statement reconciling the Maintenance Fuel used during the preceding calendar month including details of the dates, locations and applicable engine hours when Maintenance Fuel was used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5<u>Performance Incentive or Disincentive</u>. A statement showing the calculation of the Arrival Performance achieved by the Carriers under the Agreement during the preceding calendar month covered by the Monthly Invoice together with a statement of the Monthly Incentive Bonus or Monthly Disincentive Credit, if any, payable or due with respect to the preceding calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6<u>Other Amounts Payable or Reimbursable</u>. A statement of any other amounts payable or reimbursable by Amazon to Hawaiian or creditable from Hawaiian to Amazon under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7<u>Amount Payable or Credit Due</u>. A statement of the sum total amount due from Amazon to Hawaiian or the total credit due from Hawaiian to Amazon with the Monthly Invoice.

5.<u>Payment of Monthly Invoice</u>. If the Monthly Invoice shows a sum total amount payable by Amazon to Hawaiian, that amount will be paid within [\*\*\*] days following Amazon's receipt of the Monthly Invoice [\*\*\*] Business Days of receipt for any amounts owed for Fuel Charges). If the Monthly Invoice shows a sum credit due to Amazon from Hawaiian, that credit will be applied first against any amount then remaining unpaid under any Monthly Invoice, from oldest to newest, and then against the Fixed Monthly Charge payment next payable by Amazon to Hawaiian hereunder.

6.<u>Invoice Data</u>. Hawaiian will provide each Monthly Invoice in a manner that complies with all requirements of applicable tax laws and accounting standards and which, together with the Weekly Activity Statements and supporting documentation for the calendar month covered by that invoice, provides sufficient information for Amazon to determine the accuracy of the amounts invoiced thereon. Hawaiian and the Carriers will retain copies of relevant documentation supporting the invoiced amounts for a period of three years from the date of the Monthly Invoice to which such documentation relates and, during that three-year period, Amazon may inspect and audit such documentation upon request to Hawaiian.

*Exhibit D-2*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

7.<u>Segregating Accounts</u>. At Amazon's election from time to time, Hawaiian will promptly create separate accounts and issue separate invoices for Amazon and each Amazon Affiliate for which it provides Services and, to the extent applicable, each Third Party Shipper. Amazon shall be jointly and severally liable with the applicable Amazon Affiliate or Third Party Shipper for any payment obligation under each such separate account.

8.<u>Payment; Disputes; Setoff</u>. Amazon will pay undisputed portions of Hawaiian's properly submitted invoices within [\*\*\*] days of receipt of the relevant invoice. Disputed invoices, payments, credits or other amounts will be rejected, challenged or short paid (as applicable) with appropriate explanation of the discrepancy. In the event that any invoice, payment, credit or other amount is reasonably disputed, the disputing Party will notify the other Party of such dispute on or before the date that such invoice, payment or credit is due to be paid or issued (the "<u>Disputed Notice Date</u>"). The notification of a dispute will not relieve the disputing Party of its obligations with respect to any non-disputed amounts. As soon as possible after receipt of notification of a dispute, the Parties will convene their responsible managers in order to resolve such dispute in good faith and through the application of reasonable commercial efforts. In the event that the responsible managers are unable to resolve such dispute within [\*\*\*] days after the Disputed Notice Date (in which case the settled amount will be paid within [\*\*\*] days of such resolution), then such dispute will be escalated to the Director, Global Fleet and Aviation Sourcing of Amazon and the Chief Financial Officer of Hawaiian for resolution. In the event that the Director, Global Fleet and Aviation Sourcing of Amazon and Chief Financial Officer of Hawaiian are unable to resolve the dispute or the disputing Party has not paid the disputed amount within [\*\*\*] days after the Disputed Notice Date (in which case the settled amount will be paid within [\*\*\*] days of such resolution), then the Parties may pursue their respective rights in accordance with <u>Section 13.3</u> of the Agreement. Without limiting the foregoing, Amazon may also withhold payment of any sums due and payable to Hawaiian or its Affiliates, in whole or in part, to offset any amounts due and payable by Amazon to Hawaiian (including, for clarity, damages, costs, or expenses incurred by Amazon on account of any Hawaiian Event of Default).

9. All payments to Hawaiian will be made in U.S. Dollars and will be sent at Amazon's expense via irrevocable wire transfer in immediately available funds to the following account:

*Exhibit D-3*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |

---

*Exhibit D-4*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit E</u>**

**Price Schedule**

[\*\*\*]

*Exhibit E-1*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit F</u>**

**Flight Schedule**

Amazon-Hawaiian Flight Schedule No. [●]

This Flight Schedule No. [●] is effective as of [●] and entered into and made a part of the Air Transportation Services Agreement between Hawaiian Airlines, Inc. and Amazon.com Services LLC, effective as of October 20, 2022.

Effective as of [●]

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **FLT NUM** | **GAUGE** | **CARRIER** | **START (Z)** | **END (Z)** | **FREQ (Z)** | **ORIG** | **DEST** | **DEP (Z)** | **ARR (Z)** | **BLK** |

---

*Exhibit F-1*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit G</u>**

**USPS Provisions**

[\*\*\*]

*Exhibit G-1*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit H</u>**

**Third Party Information Security Requirements**

[\*\*\*]

*Exhibit H-1*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit I</u>**

**Form of Sublease for Amazon Aircraft**

**[Included on the following pages]**

*Exhibit I-1*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Exhibit J</u>**

**Baseline Configuration**

---

| | | |
|:---|:---|:---|
| ATA | Description | Specification |
| 3 | [\*\*\*] | [\*\*\*] |
| 3 | [\*\*\*] | [\*\*\*] |
| 22 | [\*\*\*] | [\*\*\*] |
| 22 | [\*\*\*] | [\*\*\*] |
| 22 | [\*\*\*] | [\*\*\*] |
| 22 | [\*\*\*] | [\*\*\*] |
| 22 | [\*\*\*] | [\*\*\*] |
| 22 | [\*\*\*] | [\*\*\*] |
| 23 | [\*\*\*] | [\*\*\*] |
| 23 | [\*\*\*] | [\*\*\*] |
| 25 | [\*\*\*] | [\*\*\*] |
| 27 | [\*\*\*] | [\*\*\*] |
| 27 | [\*\*\*] | [\*\*\*] |
| 31 | [\*\*\*] | [\*\*\*] |
| 31 | [\*\*\*] | [\*\*\*] |
| 31 | [\*\*\*] | [\*\*\*] |
| 34 | [\*\*\*] | [\*\*\*] |
| 34 | [\*\*\*] | [\*\*\*] |
| 34 | [\*\*\*] | [\*\*\*] |
| 34 | [\*\*\*] | [\*\*\*] |
| 34 | [\*\*\*] | [\*\*\*] |
| 34 | [\*\*\*] | [\*\*\*] |
| 34 | [\*\*\*] | [\*\*\*] |
| 34 | [\*\*\*] | [\*\*\*] |
| 46 | [\*\*\*] | [\*\*\*] |
| 46 | [\*\*\*] | [\*\*\*] |
| 46 | [\*\*\*] | [\*\*\*] |
| 72 | [\*\*\*] | [\*\*\*] |

---

***Exhibit J***

------

---

| |
|:---|
| **Aircraft Sublease Agreement relating to One Airbus A330-300 Aircraft Manufacturer's Serial Number [__]** |
| **Dated __________________ 202_** |
| **(1)&nbsp;&nbsp;&nbsp;&nbsp;Amazon.com Services LLC**<br>**(2)&nbsp;&nbsp;&nbsp;&nbsp;Hawaiian Airlines, Inc.**<br>**[TO THE EXTENT THAT THIS AIRCRAFT SUBLEASE AGREEMENT CONSTITUTES CHATTEL PAPER (AS DEFINED IN THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN ANY APPLICABLE JURISDICTION), NO SECURITY INTEREST IN THIS AIRCRAFT SUBLEASE AGREEMENT MAY BE CREATED THROUGH TRANSFER OR POSSESSION OF ANY COUNTERPART OTHER THAN THE ORIGINAL COUNTERPART, WHICH SHALL BE IDENTIFIED AS THE COUNTERPART DESIGNATED AS THE ORIGINAL ON THE SIGNATURE PAGE OF THIS AGREEMENT BY SUBLESSOR]** |

---

***Exhibit J***

------

**Contents**

Page

---

| | |
|:---|:---|
| 1&nbsp;&nbsp;&nbsp;&nbsp;Interpretation | 1 |
| 2&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties | 1 |
| 3&nbsp;&nbsp;&nbsp;&nbsp;Indemnities | 5 |
| 4&nbsp;&nbsp;&nbsp;&nbsp;Agreement to Lease | 19 |
| 5&nbsp;&nbsp;&nbsp;&nbsp;Delivery | 19 |
| 6&nbsp;&nbsp;&nbsp;&nbsp;Manufacturer Warranties | 23 |
| 7&nbsp;&nbsp;&nbsp;&nbsp;Rental&nbsp;&nbsp;&nbsp;&nbsp; | 25 |
| 8&nbsp;&nbsp;&nbsp;&nbsp;[RESERVED] | 25 |
| 9&nbsp;&nbsp;&nbsp;&nbsp;[RESERVED] | 25 |
| 10&nbsp;&nbsp;&nbsp;&nbsp;Payments | 25 |
| 11&nbsp;&nbsp;&nbsp;&nbsp;Covenants | 27 |
| 12&nbsp;&nbsp;&nbsp;&nbsp;Reporting | 30 |
| 13&nbsp;&nbsp;&nbsp;&nbsp;Nameplates | 31 |
| 14&nbsp;&nbsp;&nbsp;&nbsp;Operation | 32 |
| 15&nbsp;&nbsp;&nbsp;&nbsp;Maintenance and Repair | 35 |
| 16&nbsp;&nbsp;&nbsp;&nbsp;Insurances | 47 |
| 17&nbsp;&nbsp;&nbsp;&nbsp;Total Loss, Damage and Requisition | 48 |
| 18&nbsp;&nbsp;&nbsp;&nbsp;[RESERVED] | 50 |
| 19&nbsp;&nbsp;&nbsp;&nbsp;Events of Default | 50 |
| 20&nbsp;&nbsp;&nbsp;&nbsp;Redelivery of the Aircraft | 55 |
| 21&nbsp;&nbsp;&nbsp;&nbsp;Acknowledgments and Disclaimers | 57 |
| 22&nbsp;&nbsp;&nbsp;&nbsp;Assignment and Transfer | 59 |
| 23&nbsp;&nbsp;&nbsp;&nbsp;Illegality | 59 |
| 24&nbsp;&nbsp;&nbsp;&nbsp;[RESERVED] | 60 |
| 25&nbsp;&nbsp;&nbsp;&nbsp;Further Assurance | 60 |
| 26&nbsp;&nbsp;&nbsp;&nbsp;[RESERVED] | 60 |
| 27&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous Provisions | 60 |

---

------

---

| | |
|:---|:---|
| 28&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous | 61 |
| 29&nbsp;&nbsp;&nbsp;&nbsp;Servicer | 63 |
| 30&nbsp;&nbsp;&nbsp;&nbsp;Governing Law | 63 |
| 31&nbsp;&nbsp;&nbsp;&nbsp;Jurisdiction | 63 |
| 32&nbsp;&nbsp;&nbsp;&nbsp;Brokers | 64 |
| Schedule 1&nbsp;&nbsp;&nbsp;&nbsp;Description of the Aircraft | 68 |
| Schedule 2&nbsp;&nbsp;&nbsp;&nbsp;Delivery Conditions – Procedures and Condition of the Aircraft at Delivery  | 69 |
| Schedule 3&nbsp;&nbsp;&nbsp;&nbsp;Aircraft Documents and Standards | 80 |
| Schedule 4&nbsp;&nbsp;&nbsp;&nbsp;Certain Economic Terms | 105 |
| Schedule 5&nbsp;&nbsp;&nbsp;&nbsp;Insurance Requirements | 106 |
| Schedule 6&nbsp;&nbsp;&nbsp;&nbsp;Redelivery Conditions – Procedures and Condition of the Aircraft at Redelivery | 111 |
| Schedule 7&nbsp;&nbsp;&nbsp;&nbsp;Specification | 124 |
| Schedule 8&nbsp;&nbsp;&nbsp;&nbsp;Other Aircraft | 125 |
| Schedule 9&nbsp;&nbsp;&nbsp;&nbsp;Conditions Precedent | 126 |
| Appendix A &nbsp;&nbsp;&nbsp;&nbsp; Acceptance Certificate | 129 |
| Appendix B&nbsp;&nbsp;&nbsp;&nbsp; Monthly Report | 138 |
| Appendix C&nbsp;&nbsp;&nbsp;&nbsp; Redelivery Acknowledgment | 141 |
| Annex A Definitions | 151 |

---

------

**Aircraft Sublease Agreement**

**Dated _______________ 202_**

**Between:** 

(1)**Amazon.com Services LLC,** a limited liability company organized under the laws of the State of Delaware, with its principal place of business at 410 Terry Avenue North, Seattle, WA 98109-5210, United States of America ("**Sublessor**"); and

(2)**Hawaiian Airlines, Inc.**, a corporation organized under the laws of the State of Delaware with its principal place of business at 3375 Koapaka St., Suite G350, Honolulu, Hawaii 96819 ("**Sublessee**").

**Whereas:**

Sublessor and Sublessee entered into an Air Transportation Services Agreement dated October 20, 2022 (as amended, supplemented or otherwise modified from time to time, the "**ATSA**"), pursuant to which Sublessor has agreed to sublease certain aircraft to Sublessee for Sublessee's use in providing air cargo transportation services to Sublessor.

Sublessor wishes to lease the Aircraft to Sublessee, and Sublessee is willing to take the Aircraft on lease from Sublessor, on the terms and conditions of this Agreement.

**It is agreed:**

**1Interpretation** 

1.1**Definitions** In this Agreement, unless the context otherwise requires, capitalised words and expressions used but not defined herein have the meanings given in, or incorporated by reference, in Annex A.

1.2Construction **For the purposes of this Agreement, the rules of construction and interpretation given in Annex A shall apply.**

**2Representations and Warranties** 

2.1**Sublessee Representations and Warranties** Sublessee acknowledges that Sublessor has, or will have, entered into this Agreement and each other Transaction Document to which Sublessor is a party in full reliance on the following representations and warranties made by Sublessee to Sublessor; and Sublessee hereby represents and warrants to Sublessor as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1**Status** Sublessee is a company duly organized and validly existing under the laws of the State of Delaware and has full corporate power, authority and legal right to own its assets and carry on its business as it is being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2**Power and authority** Sublessee has the power to enter into and perform its obligations under the Transaction Documents to which it is a party and has taken all necessary corporate action to authorize the entry into, performance and delivery of the Transaction Documents to which it is a party and the transactions contemplated by the Transaction Documents, the signatories who have or will have signed the Transaction Documents to which it is a

Sublease Agreement (MSN [__])

------

party in its name and on its behalf were or will be duly authorized or otherwise empowered to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3**Legal validity** The Transaction Documents to which it is a party have been duly authorized, executed and delivered by Sublessee, and the Transaction Documents to which it is a party constitute, or when executed and delivered by Sublessee will constitute, legal, valid and binding obligations of Sublessee, enforceable in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or principles of equity or other laws of general application affecting the enforcement of creditors' rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.4**Non-conflict** The entry into and performance by Sublessee of, and the transactions contemplated by, the Transaction Documents do not and will not: (i) conflict with any laws binding on Sublessee, (ii) conflict with the constitutional documents of Sublessee, (iii) conflict with or result in a default under any document which is binding upon Sublessee or any of its assets or (iv) result in the creation of any Lien over any of its assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.5**Authorization** All licenses, authorizations, consents, registrations, notifications, acts, conditions and things required to be done, fulfilled and performed in order (i) to enable Sublessee lawfully to enter into, exercise its rights under and perform and comply with the obligations expressed to be assumed by it in the Transaction Documents to which it is a party; and (ii) to ensure that the obligations expressed to be assumed by it in the Transaction Documents are legal, valid, binding and enforceable, have been duly obtained, done, fulfilled and performed and are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.6**No Immunity** Sublessee is subject to civil commercial law with respect to its obligations under this Agreement and the other Transaction Documents, and neither Sublessee nor any of its assets is entitled to any right of immunity from suit, execution, attachment or other legal process, and the entry into and performance by Sublessee of the Transaction Documents constitute private and commercial acts done and performed for private and commercial purposes and are of commercial benefit to it and in its commercial interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.7**Registrations** Assuming that the Head Lessor holds title to the Aircraft and the Sublessor has a valid and enforceable leasehold in the Aircraft under the Head Lease and that all actions necessary and advisable to perfect such title and such leasehold have been duly and validly taken, except for the registration of the Head Lease and this Agreement with the FAA and on the International Registry, and the filing of a precautionary Uniform Commercial Code financing statement naming Sublessee as debtor and Sublessor as secured party with the Secretary of State of the State of the State of Delaware, no further filing or recording of any document is necessary or advisable in order to establish and perfect Sublessor's rights and interests in the Aircraft against Sublessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.8**No restriction on Payments** Under the laws of the State of Registration, there is no restrictions on Sublessee making the payments required by this Agreement and the other Transaction Documents.

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.9**Taxes** Assuming that Sublessor has provided Sublessee with a duly completed IRS Form W-9 and any other appropriate forms or documentation establishing a complete exemption from U.S. federal withholding taxes with respect to any amounts payable to Sublessor under this Agreement, Sublessee is not required by law to deduct any Taxes from any payments to Sublessor under this Agreement; and no Taxes are imposed in the State of Organization on any payment to be made by Sublessee to Sublessor under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.10**[RESERVED]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.11**Litigation** Except for such matters disclosed in press releases issued by Sublessee or any Sublessee affiliate or in public filings made with the Securities and Exchange Commission under the Securities Act of 1934, as amended, by Sublessee or any Sublessee affiliate, no litigation, arbitration or administrative proceedings are pending or to Sublessee's knowledge, threatened against it which, if adversely determined, could reasonably be expected to (a) have a material and adverse effect upon Sublessee's financial condition or (b) materially and adversely affect the legality, validity, binding effect or enforceable nature of any of the Transaction Documents to which Sublessee is a party or (c) materially and adversely affect Sublessee's ability to perform its obligations under the Transaction Documents to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.12**No Event of Default** No Event of Default has occurred and is continuing or would result from the entry into or performance by Sublessee of the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.13**No Insolvency** Sublessee is not insolvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.14**Certificated Air Carrier** Sublessee is a Certificated Air Carrier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.15**Sanctions** Sublessee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)does not hold a contract or any other obligation to operate the Aircraft to or from any country which is the subject of comprehensive sanctions under any United Nations Security Council directive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)is not (i) listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list maintained pursuant to any of the rules and regulations of OFAC, (ii) located, organized or ordinarily resident in any country or territory as to which the United States of America has imposed a comprehensive embargo (currently Cuba, Iran, North Korea, Syria, and the Crimea region) or (iii) targeted pursuant to any other applicable executive orders or otherwise subject to any sanctions imposed pursuant to an OFAC implemented regulation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)has measures in place designed to ensure that the export, import, delivery, lease, sublease, reexport, or in-country transfer of the Aircraft to the Sublessee will not violate, or cause any of the

Sublease Agreement (MSN [__])

------

Indemnitees to be in violation of, any applicable Sanctions or Export Control Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.16**Investment Company Act.** Sublessee is not an "investment company" or required to be registered as an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

Sublessor Representations and Warranties **Sublessor hereby represents and warrants to Sublessee that:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.17**Status** Sublessor is a company duly organized and validly existing under the laws of the State of Delaware and has full corporate power, authority and legal right to own its assets and carry on its business as it is being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.18**Powers and Authority** The execution, delivery and performance by Sublessor of this Agreement and the other Transaction Documents to which it is or will be a party have been duly authorized by all necessary action on the part of Sublessor, as the case may be, and do not require any approval of its members or trustees or holders of any indebtedness or obligations of it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.19**Legal Validity** This Agreement has been duly executed and delivered by Sublessor and constitutes, and each other Transaction Document to which Sublessor will be a party will be duly executed and delivered by Sublessor and, when executed and delivered, will constitute, the legal, valid and binding obligations of Sublessor enforceable against Sublessor in accordance with their terms, except as the same may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the rights of creditors generally and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.20**Non-Contravention** Neither the execution and delivery by Sublessor of the Transaction Documents to which it is a party nor compliance by it with all of the provisions thereof required to be complied with by it, (i) contravenes or will contravene, or results in the creation of any Lien (other than Permitted Liens) upon any of its property under, the provisions of any law, governmental rule or regulation, or any order of any court or governmental authority or agency applicable to or binding on it or (ii) constitutes a breach of or default under, or results in the creation of any Lien (other than Permitted Liens) upon any of its property under, (A) its constituent documents or (B) any indenture, mortgage, contract or other agreement or instrument to which it is a party or by which it or any of its property may be bound or affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.21**Consents** Neither the execution and delivery by Sublessor, as the case may be, of this Agreement and the other Transaction Documents to which it is a party, nor the consummation by it of any of the transactions contemplated hereby or thereby, requires the authorization, consent or approval of, the giving of notice to, the filing or registration with or the taking of any other action in respect of, any federal or state governmental authority or agency, except for the filings as will have been made on the Delivery Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.22**Litigation** Except for such matters disclosed in press releases issued by Sublessor or any Sublessor affiliate or in public filings made with the

Sublease Agreement (MSN [__])

------

Securities and Exchange Commission under the Securities Act of 1934, as amended, by Sublessor or any Sublessor affiliate, no litigation, arbitration or administrative proceedings are pending or to Sublessor's knowledge, threatened against it which, if adversely determined, could reasonably be expected to (a) have a material and adverse effect upon Sublessor's financial condition or (b) materially and adversely affect the legality, validity, binding effect or enforceable nature of any of the Transaction Documents to which Sublessor is a party or (c) materially and adversely affect Sublessor's ability to perform its obligations under the Transaction Documents to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.23**Leasehold.** Sublessor holds a valid and effective leasehold as to the Aircraft, free and clear of any Sublessor's Liens.

**3Indemnities**

3.1**General Tax Indemnity** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1**General** Subject to Section 3.1.2, Sublessee shall defend, indemnify and hold harmless on an After-Tax Basis each Tax Indemnitee from and against any and all Taxes imposed upon such Tax Indemnitee, Sublessee, the Aircraft, the Airframe, any Engine or any Part upon or with respect to: (<u>A</u>) the Aircraft, the Airframe, any Engine or any Part or any interest therein; (<u>B</u>) the manufacture, design, purchase, ownership, delivery, redelivery, transport, location, lease, sublease, assignment, alteration, improvement, possession, registration, reregistration, deregistration, nondelivery, presence, use, nonuse, replacement, substitution, pooling, operation, insurance, installation, modification, addition, rebuilding, overhaul, condition, storage, airworthiness, maintenance, testing, repair, return, abandonment, preparation or disposition of the Aircraft, the Airframe, any Engine or any Part; (<u>C</u>) rentals, receipts, proceeds, income or earnings arising from the Aircraft, the Airframe, any Engine or any Part or any interest therein; or (<u>D</u>) the execution or delivery of any of the Transaction Documents or any future amendment, waiver or modification thereof or any amounts payable by Sublessee thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2**Exclusions** Notwithstanding the foregoing, Sublessee shall not be obligated to defend, indemnify or hold harmless any Tax Indemnitee from or against any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Taxes on, based on, measured by or with respect to the gross or net income, gross or net receipts, capital gains, capital or net worth of any Tax Indemnitee, or that are branch profits, withholding, conduct of business, minimum or alternative minimum, franchise or ad valorem Taxes imposed on any Tax Indemnitee, in each case however denominated, but excluding sales, use, license, transfer, value added and property Taxes or Taxes of a similar nature (such non-excluded Taxes, "<u>Income Taxes</u>"), imposed by the United States of America or by any state or local taxing authority thereof or therein;

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Income Taxes imposed by any Governmental Entity or other taxing authority in any jurisdiction (other than the United States of America) or by any international or multinational taxing or regulatory authority or by any territory or possession of the United States of America, except to the extent such Income Taxes result solely from (<u>A</u>) the operation, location, presence, registration or use of the Aircraft, the Airframe, any Engine or any Part in the jurisdiction imposing such Income Taxes, (<u>B</u>) the activities of Sublessee or any Affiliate thereof in the jurisdiction imposing such Income Taxes, (<u>C</u>) Sublessee making a payment from or through the jurisdiction imposing such Income Taxes, (<u>D</u>) Sublessee being incorporated, organized, maintaining a place of business or conducting activities in the jurisdiction imposing such Income Taxes or (<u>E</u>) the status of Sublessee or any Affiliate thereof as an entity that is not a "United States person" within the meaning of Section 7701(a)(30) of the Code or as an entity owned in whole or in part by persons other than "United States persons" within the meaning of Section 7701(a)(30) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Taxes imposed with respect to any period commencing after the earlier of (<u>A</u>) the return of possession of the Aircraft in accordance with Section 20 hereof and (<u>B</u>) the expiration or earlier termination of this Agreement under circumstances not requiring the return of the Aircraft, except, in each case, to the extent (<u>x</u>) such Taxes are imposed as a result of events occurring or matters arising prior to or simultaneously with such return of possession or expiration or earlier termination of this Agreement or (<u>y</u>) such Taxes relate to payments made by Sublessee under the Transaction Documents to or for the benefit of any Tax Indemnitee following such return of possession or expiration or earlier termination of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Taxes imposed with respect to any period commencing before the Delivery of the Aircraft other than in respect of any payment of Rental;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Taxes imposed as a result of any sale, assignment, transfer, participation, conveyance or other disposition (<u>A</u>) by any Tax Indemnitee of all or a portion of its interest in the Aircraft, the Airframe, any Engine, any Part, Rental, the Trust Estate, any Transaction Document, the Head Lease, the Participation Agreement or the Trust Agreement or (<u>B</u>) of any direct or indirect interest in any Tax Indemnitee, unless, in each case, such sale, assignment, transfer, participation, conveyance or other disposition occurs pursuant to (<u>x</u>) Section 14, 15, or 17 hereof or (<u>y</u>) the exercise of remedies pursuant to Section 19 hereof following the occurrence and during the continuation of an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Taxes in excess of the Taxes that would have been imposed and indemnified against by Sublessee hereunder had there not been a sale, assignment, transfer, participation, conveyance or other disposition (<u>A</u>) by any Tax Indemnitee of all or a portion of its interest in the Aircraft, the Airframe, any Engine, any Part, Rental,

Sublease Agreement (MSN [__])

------

the Trust Estate, any Transaction Document, the Head Lease, the Participation Agreement or the Trust Agreement or (<u>B</u>) of any direct or indirect interest in any Tax Indemnitee, unless, in each case, such sale, assignment, transfer, participation, conveyance or other disposition occurs pursuant to (<u>x</u>) Section 14, 15, or 17 hereof or (<u>y</u>) the exercise of remedies pursuant to Section 19 hereof following the occurrence and during the continuation of an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Taxes imposed on Trust Company on, based on, with respect to or measured by any fees payable to Trust Company for services rendered in connection with any Transaction Document, the Head Lease, the Participation Agreement or the Trust Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Taxes that would not have been imposed but for the gross negligence or willful misconduct of any Tax Indemnitee (other than the gross negligence or willful misconduct imputed as a matter of law to such Tax Indemnitee solely by reason of its interest in the Aircraft);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Taxes that would not have been imposed but for the breach or inaccuracy of any representation, warranty or covenant of any Tax Indemnitee set out in any Transaction Document, the Head Lease, the Participation Agreement or the Trust Agreement (except to the extent attributable to the breach by Sublessee of any representation, warranty or covenant set forth in any Transaction Document);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Taxes that would not have been imposed but for a failure of any Tax Indemnitee to provide any certificate, documentation or other evidence requested by Sublessee; but only if such Tax Indemnitee was eligible to provide such certificate, documentation or other evidence without any adverse consequences (other than de minimis consequences) to it for which Sublessee has not agreed to indemnify such Tax Indemnitee in a manner reasonably satisfactory to such Tax Indemnitee and, in the case of certificates, documentation or other evidence requiring disclosure of knowledge of factual information (such as the location of an Aircraft) that is known to Sublessee but not readily ascertainable by such Tax Indemnitee, only if Sublessee provides such information to such Tax Indemnitee in a timely manner, at the Tax indemnitee's reasonable request and at Sublessee's cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Taxes that would not have been imposed but for a present or future connection between a Tax Indemnitee or any Affiliate thereof and the jurisdiction imposing such Tax, other than a connection arising solely by reason of the transactions contemplated by the Transaction Documents;

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)Taxes imposed as a result of any "prohibited transaction" within the meaning of Section 406 of ERISA or Section 4975 of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)Taxes that would not have been imposed but for any amendment, waiver or modification to any Transaction Document, the Head Lease, the Participation Agreement or the Trust Agreement unless (<u>A</u>) requested in writing by Sublessee (or otherwise necessary or appropriate to effect, and in conformity with, that request), (<u>B</u>) expressly required by the Transaction Documents, (<u>C</u>) pursuant to the exercise of remedies in connection with an Event of Default that has occurred and is continuing or (<u>D</u>) required by applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)Taxes that would not have been imposed but for any indebtedness, head lease, swap, hedge or other financing arrangements of any Tax Indemnitee or any Affiliate thereof, it being understood that the provisions of the Head Lease and this Agreement, and the lease contemplated thereby, are not such indebtedness, head lease, swap, hedge or other financing arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)(A) value added or similar Taxes or (B) any other Taxes, in each case imposed by the United States of America or any state or local taxing authority thereof or therein in lieu of Income Taxes by reason of a change in law after the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)Taxes that would not have been imposed but for a Tax Indemnitee or any person holding a direct or indirect interest in a Tax Indemnitee being other than a "United States person" within the meaning of Section 7701(a)(30) of the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)Taxes imposed by reason of or pursuant to FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3**Contests** If any claim is made in writing against any Tax Indemnitee for any Taxes as to which Sublessee may have an indemnity obligation pursuant to Section 3.1.1, such Tax Indemnitee shall notify Sublessee in writing of such claim promptly and, in any case, within [\*\*\*] days after such Tax Indemnitee receives notice of such claim; <u>provided</u> that the failure to provide such notice to Sublessee shall not affect the obligation of Sublessee to provide indemnification hereunder with respect to the Taxes that are the subject of such claim except to the extent that such failure materially adversely affects the rights or ability of Sublessee to fully contest or cause a Tax Indemnitee to fully contest such Taxes or results in the imposition of, or an increase in the amount of, any penalties, interest or additions to Tax (in which event Sublessee shall not be responsible for such imposition or increase). Upon receipt of a written request from Sublessee to such Tax Indemnitee, (i) Sublessee shall be entitled, at no cost or expense to any Tax Indemnitee, (<u>A</u>) in any contest involving only Taxes indemnifiable by Sublessee hereunder ("**Indemnified Taxes**") or (<u>B</u>) in any contest involving one or more Indemnified Taxes as well as other Taxes, where the contest of such Indemnified Taxes can be severed from the contest of such other Taxes, to assume responsibility for and control of the contest in Sublessee's own name or in the name of such Tax Indemnitee, if Sublessee is permitted by law to do so ("**Sublessee Controlled Contest**"); or (ii) Sublessee and

Sublease Agreement (MSN [__])

------

such Tax Indemnitee shall negotiate with each other for a period of up to [\*\*\*] days with a view to making arrangements whereby any relevant payment can be made or received or other obligations performed in such manner, place, currency and other circumstances as shall be lawful or as shall not give rise to any applicable Taxes or requirement for payment of any additional amount, increased withholding or indemnity amount and so as to achieve substantially the same result as would have been achieved had such payment, receipt or other obligation not been rendered unlawful or subject to such Taxes, or, as the case may be, such payment, increased withholding or requirement for indemnity had not arisen ("**Tax Mitigation Action**"); <u>provided</u> in each case <u>t</u>hat Sublessee shall not be entitled to contest any claim or require any Tax Indemnitee to mitigate any claim, in each case pursuant to this paragraph (<u>i</u>) during the continuation of any Event of Default under Sections 19.1.1 or 19.1.7 hereof, (<u>ii</u>) if such contest or mitigation (as applicable) could in the good faith opinion of such Tax Indemnitee entail any risk of criminal liability to such Tax Indemnitee, (<u>iii</u>) if such contest or mitigation (as applicable) will involve a material risk of the sale, forfeiture or loss of, or the creation of any Lien (other than a Permitted Lien) on, the Aircraft or (iv) if, in the case of any Tax Mitigation Action, such Tax Indemnitee would be required to do anything which, in its reasonable opinion, might materially adversely prejudice its business interests or tax affairs or require it to disclose confidential information. Each Tax Indemnitee shall take reasonable steps to cooperate with Sublessee, at Sublessee's request and expense, in connection with any Sublessee Controlled Contest or Tax Mitigation Action.

If a Tax Indemnitee is requested in writing by Sublessee to contest any claim for Indemnified Taxes and if such claim is not being contested in a Sublessee Controlled Contest or is not otherwise subject to Tax Mitigation Action, such Tax Indemnitee shall, in good faith and with due diligence, contest the validity, applicability or amount of such Taxes ("**Tax Indemnitee Controlled Contest**"). In such Tax Indemnitee's discretion, after consultation in good faith with Sublessee, such contest may be conducted by (<u>i</u>) resisting payment of such Indemnified Taxes, (<u>ii</u>) not paying the same except under protest, if protest is necessary and proper, or (<u>iii</u>) if payment is made, using reasonable efforts to obtain promptly a refund thereof in appropriate administrative and judicial proceedings. At any time while any Tax Indemnitee is conducting a Tax Indemnitee Controlled Contest, it shall consult in good faith with Sublessee regarding the manner of conducting any such contest. A Tax Indemnitee shall not be required to take or continue any action pursuant to this paragraph unless and until (<u>A</u>) Sublessee agrees to pay, and shall pay on demand, all reasonable out-of-pocket costs and expenses that such Tax Indemnitee actually incurs in connection with and reasonably allocable to contesting such claim (including reasonable legal and accounting fees); (<u>B</u>) if an Event of Default has occurred and is continuing, Sublessee provides security reasonably satisfactory to such Tax Indemnitee for Sublessee's obligations with respect to the Tax being contested; (<u>C</u>) if such Tax Indemnitee decides after consultation with Sublessee to pay the Tax prior to the contest, Sublessee shall provide to such Tax Indemnitee an interest-free advance in an amount equal to such Tax and shall pay any additional amount required to hold such

Sublease Agreement (MSN [__])

------

Tax Indemnitee harmless against any adverse Tax consequences arising from such advance (and if such contest is finally determined adversely, the amount of such advance shall be applied against Sublessee's obligation to indemnify such Tax Indemnitee against the Tax which is the subject of such contest); and (<u>D</u>) the action to be taken will not involve any risk of criminal liability to such Tax Indemnitee or a material risk of a sale, forfeiture or loss of, or the creation of any Lien (other than a Permitted Lien) on, the Aircraft, unless (other than in the case of a risk of criminal liability) Sublessee posts a bond or other security reasonably satisfactory to such Tax Indemnitee.

If a Tax Indemnitee elects not to (i) contest any Tax that it is otherwise required to contest in accordance with this Section 3.1.3 or (ii) take Tax Mitigation Action if required in accordance with this Section 3.1.3, or settles, compromises or otherwise terminates or fails to contest any such contest that it is so otherwise required to contest without the prior written consent of Sublessee, such action shall constitute a waiver by such Tax Indemnitee of any right to any amount that might otherwise be payable by Sublessee pursuant to this Section 3.1 with respect to such Tax and any other Tax for which a successful contest is adversely affected in any material respect because of such election, settlement, compromise, termination or failure (other than any expenses of the contest). If Sublessee has theretofore provided such Tax Indemnitee with an interest-free advance to pay such amount, such Tax Indemnitee shall promptly repay such interest-free advance, together with interest on the amount of such advance for the period from and including the date on which such advance was made to, but excluding, the date of repayment pursuant to this sentence at the rate that would have been paid by the relevant Taxing Authority had such contest resulted in a refund, plus an amount equal to any Tax benefits realized by such Tax Indemnitee as a result of payment pursuant to this sentence.

If a Tax Indemnitee actually receives a refund (or would have actually received a refund but for offset for matters not indemnifiable by Sublessee under this Section 3.1) of all or any part of any Tax paid or reimbursed by Sublessee, such Tax Indemnitee shall promptly pay to Sublessee an amount equal to the amount of such refund (or the amount of such offset) plus any interest thereon received from the relevant Taxing Authority (or that would have been received with respect to the amount of such an offset) plus an amount equal to any Tax benefits realized by such Tax Indemnitee as a result of such payment (and net of any net Tax detriment resulting from the receipt of the refund and interest on the refund). Any subsequent loss or disallowance of such refund shall be treated as a Tax subject to indemnification under this Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.4**Payments and Repayments** Any amount payable by Sublessee as an indemnity to any Tax Indemnitee pursuant to this Section 3.1 shall be payable on or prior to the later of (<u>i</u>) [\*\*\*] Business Days after Sublessee's receipt of written demand by such Tax Indemnitee accompanied by a written statement describing in reasonable detail the Taxes that are the subject of and basis for such indemnity and the computation of the amount payable and (<u>ii</u>) [\*\*\*] Business Days prior to the due date for the subject Taxes (including all extensions), except that Taxes being contested pursuant to

Sublease Agreement (MSN [__])

------

Section 3.1.3 shall not be required to be paid, other than as provided in Section 3.1.3, before such contest is finally resolved. Notwithstanding any other provision of any Transaction Document, Sublessee shall have no obligation to pay or indemnify for, or pay any additional amounts with respect to, any Taxes that are not the responsibility of Sublessee under this Section 3.1, and if Sublessee makes any payment with respect to any such Taxes of any Tax Indemnitee, then such Tax Indemnitee shall pay to Sublessee, within [\*\*\*] days of Sublessee's demand therefor, an amount equal to the amount paid by Sublessee with respect to such Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.5**Reports and Returns** If any report or return is required to be made with respect to any Indemnified Tax, Sublessee shall in a timely and proper manner (<u>i</u>) to the extent required or permitted by law, make and file such return or report in its own name and (<u>ii</u>) in the case of any such return or report required to be made in the name of any Tax Indemnitee, inform such Tax Indemnitee of such fact and prepare such return or report for filing by such Tax Indemnitee or, where such return or report is required to reflect items in addition to Indemnified Taxes, provide such Tax Indemnitee with information relating to such Indemnified Taxes sufficient to permit such return or report to be properly made and timely filed no later than [\*\*\*] days prior to the due date for filing such return or report. With respect to reports to be filed in the name of Sublessee, each Tax Indemnitee shall provide to Sublessee such information within such Tax Indemnitee's possession or control as is reasonably necessary for Sublessee to properly complete and file any such report or return.

Each Tax Indemnitee agrees to furnish, upon Sublessee's written request and at Sublessee's expense, such duly executed and properly completed forms, statements or certificates as may be reasonably necessary or appropriate in order to claim any available reduction of any Tax for which Sublessee may be obligated under this Section 3.1 or to comply with the requirements of any Taxing Authority with respect to the transactions contemplated by this Agreement; <u>provided</u> that Sublessee shall have furnished such Tax Indemnitee with any information necessary to complete such form, statement or certificate that is reasonably available to Sublessee and not reasonably available to such Tax Indemnitee. If any form, statement or certificate provided by Beneficiary or another Tax Indemnitee to Sublessee pursuant to any Transaction Document incorrect or, to the actual knowledge of such person, obsolete, such person shall promptly notify Sublessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.6**Records** Within a reasonable time after Sublessee receives from a Tax Indemnitee a written request for copies of specified records with respect to the Aircraft, the Airframe, any Engine or any Part maintained in the regular course of Sublessee's business and reasonably necessary to enable such Tax Indemnitee to fulfill its Tax filing, Tax audit or other Tax obligations or to contest Taxes imposed upon it, Sublessee shall provide copies of such records to such Tax Indemnitee (at Sublessee's expense).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.7**Tax Savings** If any Indemnitee or Tax Indemnitee realizes any credits, deductions or other Tax benefits by reason of any payment or indemnity pursuant to Section 3.1 or Section 3.2 or, to the extent not otherwise taken into account in the computation of such payment or indemnity, by reason of

Sublease Agreement (MSN [__])

------

the imposition or payment of any Tax or Loss paid or indemnified against by Sublessee pursuant to Section 3.1 or Section 3.2, such Indemnitee or Tax Indemnitee shall pay to Sublessee an amount equal to the lesser of (<u>i</u>) the sum of the amount by which such credits, deductions and other Tax benefits reduce such Indemnitee's or Tax Indemnitee's Taxes plus any Tax benefit realized as the result of any payment by such Indemnitee or Tax Indemnitee made pursuant to this sentence and (<u>ii</u>) the aggregate amount of all payments by Sublessee to or for the account of such Indemnitee or Tax Indemnitee under Section 3.1 or Section 3.2 (other than any contest expenses and less the amount of any prior payments by such Indemnitee or Tax Indemnitee to Sublessee pursuant to this Section 3.1.7), with the excess of (i) over (ii), if any, being carried forward and applied to reduce <u>pro</u> <u>tanto</u> any subsequent obligations of Sublessee to make payments to such Indemnitee or Tax Indemnitee pursuant to Section 3.1 or Section 3.2. Any Taxes that are imposed on an Indemnitee or Tax Indemnitee as a result of the disallowance or reduction in a subsequent Tax year of a Tax benefit paid to Sublessee pursuant to this Section 3.1.7 shall be treated as a Tax for which Sublessee is obligated to indemnify such Indemnitee or Tax Indemnitee without regard to the exclusions set forth in Section 3.1.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.8**Verification** At Sublessee's written request after Sublessee receives an Indemnitee's or Tax Indemnitee's computations showing the amount of any indemnity payable by Sublessee to such Indemnitee or Tax Indemnitee pursuant to this Section 3.1 or any amount payable by any Indemnitee or Tax Indemnitee to Sublessee pursuant to this Section 3.1, such computations shall be subject to confidential verification in writing by a nationally recognized firm of certified public accountants jointly selected by Sublessee and such Indemnitee or Tax Indemnitee. The accounting firm shall complete its review within [\*\*\*] days of Sublessee's receipt of such Indemnitee's or Tax Indemnitee's computations. The computations of such accounting firm shall (<u>i</u>) be delivered simultaneously to Sublessee and such Indemnitee or Tax Indemnitee and (<u>ii</u>) absent prima facie error, be final, binding and conclusive upon Sublessee and such Indemnitee or Tax Indemnitee. If Sublessee pays any indemnity in whole or in part before completion of the verification procedure, appropriate adjustments will be made promptly after completion of the verification procedure (and nothing in this Section 3.1.8 shall be construed as changing the time when any such indemnity is payable under this Section 3.1) to take into account any redetermination of the indemnity by the accounting firm. The fee and disbursements of such accounting firm shall be paid by Sublessee unless such verification shall disclose an error in such Indemnitee's or Tax Indemnitee's computation in favor of such Indemnitee or Tax Indemnitee exceeding ten percent of the amount as computed by the Indemnitee or Tax Indemnitee, in which case such fee and disbursements shall be paid by such Indemnitee or Tax Indemnitee. Such Indemnitee or Tax Indemnitee shall cooperate with such accounting firm and (subject to such accounting firm's execution of a confidentiality agreement reasonably satisfactory to such Indemnitee or Tax Indemnitee) shall supply such accounting firm with all information reasonably necessary to permit such review and determination.

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.9**Defaults** If, at the time an amount would otherwise be payable to Sublessee under Section 3.1.3 or Section 3.1.7, any Event of Default shall have occurred and be continuing, such amount shall be held by the relevant Indemnitee or Tax Indemnitee as security for the obligations of Sublessee under the Transaction Documents. At such time as no Event of Default is continuing, such amount (net of any amount thereof that has been applied to Sublessee's obligations under this Agreement or the other Transaction Documents) shall be paid to Sublessee. Notwithstanding anything in this Section 3.1.9 to the contrary, if any such amount has been held by Owner Trustee as security in accordance with this Section 3.1.9 for [\*\*\*] days after any Event of Default shall have occurred and during which period (<u>i</u>) Owner Trustee shall not have been limited by operation of law or something outside of Owner Trustee's control or otherwise from exercising remedies under this Agreement (including application of such amount) and (<u>ii</u>) Owner Trustee shall not have exercised any remedy available to it under Section 19 hereof (including application of such amount), then such amount to the extent not previously applied in accordance with this Section 3.1.9 shall be paid to Sublessee or its designee promptly following the [\*\*\*] day after such Event of Default shall have occurred even if such Event of Default shall then be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.10**Non-Parties** If a Tax Indemnitee is not a party to this Agreement, Sublessee may require the Tax Indemnitee to agree to the terms of this Section 3.1 prior to making any payment to such Tax Indemnitee under this Section 3.1.

3.2**General Indemnity**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1**Losses Indemnified** Subject to Section 3.2.2, Sublessee shall defend, indemnify and hold harmless on an After-Tax Basis each Indemnitee from and against any and all Losses against such Indemnitee resulting from or arising out of (<u>i</u>) Sublessee's use, possession and operation of the Aircraft, the Airframe, any Engine or any Part, including, without limitation, the manufacture, design, purchase, ownership, delivery, redelivery, transport, location, lease, sublease, wetlease, assignment, alteration, improvement, possession, registration, reregistration, deregistration, nondelivery, presence, use, nonuse, replacement, substitution, pooling, operation, insurance, installation, modification, addition, rebuilding, overhaul, condition, storage, airworthiness, maintenance, testing, repair, return, abandonment, preparation or disposition of the Aircraft, the Airframe, any Engine or any Part (including, with respect thereto, without limitation, any Loss relating to, or arising from, death or injury to or property damage of passengers or others, any Loss with respect to violation by Sublessee of any laws, applicable rules or regulations including, without limitation, environmental control, noise and pollution laws, any Loss based on any latent or other defects, whether or not discoverable, and any Loss for patent, trademark or copyright infringement) or (<u>ii</u>) any failure by Sublessee to perform or observe, or any other non-compliance by Sublessee with, any covenant or agreement to be performed by Sublessee under the Transaction Documents to which Sublessee is a party or the inaccuracy in any representation of Sublessee under the Transaction Documents.

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2**Losses Excluded** Notwithstanding the foregoing, Sublessee shall not be obligated to defend, indemnify or hold harmless any Indemnitee from or against any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)any Loss to the extent such Loss is attributable to acts, omissions or events occurring after the earlier of (<u>A</u>) the return of possession of the Aircraft to Owner Trustee or its designee pursuant to the terms of this Agreement and (<u>B</u>) the expiration or earlier termination of this Agreement under circumstances not requiring the return of the Aircraft, unless and to the extent such Loss is fairly attributable to the failure of Sublessee to perform its obligations under this Agreement in full compliance herewith or arises in connection with the exercise of remedies pursuant to, and in accordance with, Section 19 hereof or is attributable to obligations of the Sublessee under the Transaction Documents to which it is a party that expressly provide for performance after the Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)any Loss to the extent such Loss is, or is attributable to, a Tax, whether or not indemnified against pursuant to Section 3.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)any Loss with respect to any period commencing before Delivery of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)any Loss to the extent such Loss is attributable to the gross negligence or willful misconduct of any Indemnitee or any member of any Indemnitee's Related Indemnitee Group (other than the gross negligence or willful misconduct imputed as a matter of law to such Indemnitee solely by reason of its interest in the Aircraft);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)any Loss to the extent such Loss is attributable to the noncompliance or breach by any Indemnitee or any member of any Indemnitee's Related Indemnitee Group with or of any of the terms or conditions of, or any misrepresentation of any Indemnitee or any member of such Indemnitee's Related Indemnitee Group contained in, this Agreement, any other Transaction Document to which such Indemnitee or any member of such Related Indemnitee Group is a party, the Head Lease, the Participation Agreement or the Trust Agreement or any agreement relating hereto or thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)any Loss to the extent such Loss constitutes a Permitted Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)any Loss to the extent such Loss is attributable to the offer, sale, assignment, transfer, participation, conveyance or other disposition (whether voluntary or involuntary) (<u>A</u>) by or on behalf of any Indemnitee or any member of any Indemnitee's Related Indemnitee Group of all or a portion of its interest in the Aircraft, the Airframe, any Engine, any Part, Rental, the Trust Estate, any Transaction Document, the Head Lease, the Participation Agreement or the Trust Agreement or (<u>B</u>) of any direct or indirect interest in any Indemnitee, unless, in each case, such offer, sale, assignment, transfer, participation, conveyance or other disposition occurs

Sublease Agreement (MSN [__])

------

pursuant to (<u>x</u>) Section 14, 15 or 17 hereof or (<u>y</u>) the exercise of remedies pursuant to, and in accordance with, Section 19 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)any Loss to the extent such Loss is attributable to a failure on the part of Owner Trustee to distribute in accordance with the Trust Agreement any amounts received and distributable by it thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any Loss to the extent such Loss is attributable to the authorization or giving or withholding of any future amendments, supplements, modifications, waivers or consents with respect to any Transaction Document, the Head Lease, the Participation Agreement or the Trust Agreement unless (<u>A</u>) requested in writing by Sublessee (or otherwise necessary or appropriate to effect, and in conformity with, that request); (<u>B</u>) expressly required by any Transaction Document, the Head Lease, the Participation Agreement or the Trust Agreement, it being understood and agreed that nothing in this Section 3.2.2(i) shall derogate from the rights and protections of Sublessee in Section 27.5 hereof; (<u>C</u>) pursuant to the exercise of remedies pursuant to, and in accordance with, Section 19 hereof; or (<u>D</u>) required by applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)any Loss relating to any cost, fee, expense or other payment obligation to the extent such Loss is expressly payable or borne by (<u>A</u>) Sublessee pursuant to any expense, indemnification, compensation or reimbursement provision of any Transaction Document or (<u>B</u>) a person other than Sublessee pursuant to any provision of any Transaction Document, the Head Lease, the Participation Agreement or the Trust Agreement or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)any Loss to the extent such Loss is an ordinary and usual operating or overhead expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)any Loss imposed as a result of any "prohibited transaction" within the meaning of Section 406 of ERISA or Section 4975 of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)any Loss that would not have arisen but for the appointment of a successor or additional Owner Trustee without the consent of Sublessee unless such successor or an additional Owner Trustee has been appointed in connection with the exercise of remedies pursuant to, and in accordance with, Section 19 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)any Loss to the extent attributable to the failure of Trust Company, Owner Trustee or, unless a voting trust agreement, voting powers agreement, owner trust or similar arrangement is utilized by Beneficiary for purposes of enabling the Aircraft to be registered in the name of Owner Trustee in the United States of America, Beneficiary to be a Citizen of the United States; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)any Loss that would not have arisen but for any indebtedness, head lease, swap, hedge or other financing arrangements of any Indemnitee or any Affiliate thereof, it being understood that the provisions of the Head Lease and this Agreement, and the lease

Sublease Agreement (MSN [__])

------

contemplated thereby, are not such indebtedness, head lease, swap, hedge or other financing arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)<u>Insured Losses</u>. In the case of any Loss indemnified by Sublessee hereunder that is covered by a policy of insurance maintained by Sublessee, each Indemnitee agrees to reasonably cooperate, at Sublessee's expense, with the insurers in the exercise of their rights to investigate, defend and compromise such Loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3**Claims Procedure** An Indemnitee shall promptly notify Sublessee of any Loss as to which indemnification is sought. The failure to provide such prompt notice shall not release Sublessee from any of its obligations to indemnify under this Section 3.2 except to the extent that such failure materially adversely affects the rights or ability of Sublessee to fully contest or cause an Indemnitee to fully contest such Losses or results in the imposition of, or an increase in the amount of, Losses (in which event Sublessee shall not be responsible for such imposition or increase). Such Indemnitee shall promptly submit to Sublessee all additional information in such Indemnitee's possession to substantiate such Loss as Sublessee reasonably requests. Upon receipt of a written request from Sublessee to such Indemnitee, Sublessee and such Indemnitee shall negotiate with each other for a period of up to [\*\*\*] days with a view to making arrangements whereby any relevant payment can be made or received or other obligations performed in such manner, place, currency and other circumstances as shall be lawful or as shall not give rise to any applicable Taxes or requirement for payment of any additional amount, increased withholding or indemnity amount and so as to achieve substantially the same result as would have been achieved had such payment, receipt or other obligation not been rendered unlawful or, as the case may be, such requirement for indemnity had not arisen ("<u>Loss Mitigation Action</u>"). Subject to the rights of Sublessee's insurers and provided Sublessee has not required the relevant Indemnitee to take any Loss Mitigation Action, Sublessee may, at its sole cost and expense, investigate any Loss, and may in its sole discretion defend or compromise any Loss; <u>provided</u> that Sublessee shall not be entitled to defend or compromise any Loss and no Indemnitee shall be required to take Loss Mitigation Action (<u>i</u>) during the continuation of any Event of Default under Sections 19.1.1 or 19.1.7 hereof, (<u>ii</u>) if such defense or Loss Mitigation Action (as applicable) could in the good faith opinion of such Indemnitee entail any risk of criminal liability to such Indemnitee, (<u>iii</u>) if such defense or Loss Mitigation Action (as applicable) will involve a material risk of sale, forfeiture or loss of, or the creation of any Lien (other than a Permitted Lien) on, the Aircraft, or (iv) if, in the case of any Loss Mitigation Action, such Indemnitee would be required to do anything which, in its reasonable opinion, might materially adversely prejudice its business interests or tax affairs or require it to disclose confidential information. At Sublessee's expense, any Indemnitee shall cooperate with all reasonable requests of Sublessee in connection with any Loss Mitigation Action or any defense or compromise of any Loss. No Indemnitee shall enter into a settlement or other compromise with respect to any Loss without the prior written consent of Sublessee, which consent shall not be unreasonably withheld or delayed, unless such Indemnitee waives its right to be

Sublease Agreement (MSN [__])

------

indemnified with respect to such Loss. Where Sublessee or its insurers undertake the defense of an Indemnitee with respect to a Loss, no additional legal fees or expenses of such Indemnitee in connection with the defense of such Loss shall be indemnified hereunder unless such fees or expenses were incurred at the written request of Sublessee or such insurers, or if counsel representing the interests of such Indemnitee issues a written opinion ("**<u>Conflict Opinion</u>**") that a material conflict of interest exists between the interests of Sublessee and the interests of such Indemnitee in connection with the defense of such Loss, in which case the reasonable fees and expenses of separate counsel for such Indemnitee shall be for the account of Sublessee. Subject to the requirements of any policy of insurance, an Indemnitee may participate at its own expense in any judicial proceeding controlled by Sublessee pursuant to the preceding provisions; <u>provided</u> that such party's participation does not, in the opinion of counsel appointed by Sublessee or its insurers to conduct such proceedings, interfere with such control. Such participation shall not constitute a waiver of the indemnification provided in this Section 3.2. Notwithstanding anything to the contrary contained herein, Sublessee shall not under any circumstances be liable for the fees and expenses of more than one counsel for all Indemnitees except in the case of a delivery to Sublessee of a Conflict Opinion with respect to each Indemnitee seeking to be represented by separate counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.4**Related Indemnitee Group** All rights (including, without limitation, the right to receive any indemnity payment under this Section 3.2) of an Indemnitee that is not a party to this Agreement shall be exercised solely by the member of such Indemnitee's Related Indemnitee Group that is a party to this Agreement. If any Indemnitee fails to comply with any duty or obligation under this Section 3.2 with respect to any Loss, such Indemnitee and its Related Indemnitee Group shall not be entitled to any indemnity with respect to such Loss under this Section 3.2 to the extent (but only to the extent) such failure was prejudicial to Sublessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.5**Subrogation** To the extent that a Loss is in fact paid in full by Sublessee or its insurer, Sublessee or such insurer (as the case may be) shall, without any further action, be subrogated to the rights and remedies of the Indemnitee on whose behalf such Loss was paid (other than rights of such Indemnitee under insurance policies maintained at its own expense) with respect to the transaction or event giving rise to such Loss. Such Indemnitee shall give such further assurances or agreements and shall cooperate with Sublessee or such insurer, as the case may be, to permit Sublessee or such insurer to pursue such rights and remedies, if any, to the extent reasonably requested by Sublessee and at Sublessee's expense. If an Indemnitee receives any payment, in whole or in part, from any party other than Sublessee or its insurers with respect to any Loss paid by Sublessee or its insurers, it shall promptly pay over to Sublessee such payment (but not an amount in excess of the amount Sublessee or any of its insurers has paid in respect of such Loss after subtracting the amount of reasonable and documented costs and expenses of such Indemnitee incurred in connection with such Loss to the extent such costs and expenses are due and payable to such Indemnitee under this Section 3.2 and have not already been paid or reimbursed by

Sublease Agreement (MSN [__])

------

Sublessee); <u>provided</u> that if, at the time of such receipt by the Indemnitee, any Event of Default shall have occurred and be continuing, such amount shall be held by such Indemnitee as security for the obligations of Sublessee under the Transaction Documents, and at such time as no Event of Default is continuing, such amount shall, if not previously applied to Sublessee's obligations under this Agreement or other Transaction Documents, be paid to Sublessee. Notwithstanding anything in this Section 3.2.5 to the contrary, if any such amount has been held by Owner Trustee as security in accordance with this Section 3.2.5 for [\*\*\*] days after any Event of Default shall have occurred and during which period (<u>i</u>) Owner Trustee shall not have been limited by operation of law or something outside of Owner Trustee's control or otherwise from exercising remedies under this Agreement (including application of such amount) and (<u>ii</u>) Owner Trustee shall not have exercised any remedy available to it under Section 19 hereof (including application of such amount), then such amount to the extent not previously applied in accordance with this Section 3.2.5 shall be paid to Sublessee or its designee promptly following the [\*\*\*] day after such Event of Default shall have occurred even if such Event of Default shall then be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.6**No Guaranty** Notwithstanding anything to the contrary contained in this Agreement or any other Transaction Document, Sublessee shall not have any responsibility for, or incur any liabilities as a result of, any residual value guaranty, deficiency guaranty or similar agreement in connection with the Aircraft, the Airframe, any Engine or any Part. Nothing set forth in this Section 3.2 constitutes a guarantee by Sublessee that the Aircraft at any time shall have any particular value, useful life or residual value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.7**Payments; Interest** All amounts payable by Sublessee as indemnities to any Indemnitee pursuant to this Section 3.2 shall be paid within [\*\*\*] Business Days after Sublessee's receipt of a written demand by such Indemnitee accompanied by a written statement describing in reasonable detail the Losses that are the subject of and basis for such indemnity and the computation of the amount payable. Any payments made pursuant to this Section 3.2 directly to an Indemnitee or to Sublessee, as the case may be, shall be made in immediately available funds at such bank or to such account as is specified by the payee in written directions to the payor or, if no such directions are given, by check of the payor payable to the order of the payee and mailed to the payee by certified mail, return receipt requested, postage prepaid to its address referred to in Section 28.6. To the extent permitted by applicable law, interest at the Default Rate shall be paid, on demand, on any amount or indemnity not paid when due pursuant to this Section 3.2 for the period from and including the due date for such amount to but excluding the date the same is paid. Such interest shall be paid in the same manner as the unpaid amount in respect of which such interest is due.

3.3**Survival** The indemnities and other obligations of Sublessee (subject to Sections 3.1.2(c) and 3.2.2(a)), and the obligations of each Indemnitee and Tax Indemnitee, under Section 3.1 and Section 3.2 shall survive the expiration or other termination of the Transaction Documents.

Sublease Agreement (MSN [__])

------

4.1**&nbsp;&nbsp;&nbsp;&nbsp;Agreement to Lease** Sublessor agrees to lease to Sublessee, and Sublessee agrees to lease from Sublessor in accordance with this Agreement, the Aircraft for the duration of the Sublease Period.

4.2**&nbsp;&nbsp;&nbsp;&nbsp;Risk** With effect from Delivery, all risk of physical loss, theft, damage or destruction for whatever reason or cause in relation to the Aircraft shall be the sole risk and liability of Sublessee. Sublessee agrees and confirms that, if the Aircraft, any Engine or Part is lost, confiscated, damaged, destroyed or otherwise rendered unfit or unavailable for use, Sublessor shall not be liable to repair it or supply any equipment in substitution therefor.

4.3**&nbsp;&nbsp;&nbsp;&nbsp;True Lease** This Agreement constitutes an agreement to lease and, except as otherwise provided herein with respect to replacement of Engines or Parts and in the case of a Total Loss, nothing herein shall be construed as conveying to Sublessee any right, title, or interest in the Aircraft, any Engine or any Part except as lessee only. Sublessor and Sublessee intend that this Agreement constitutes a "true lease" and an "operating lease" for all purposes (including for United States of America federal income tax purposes) and not a financing transaction or a transaction intended to create a lien in favour of Sublessor. Neither Sublessor nor Sublessee shall file any tax return or take any action which is inconsistent with the provisions of this Section 4.3.

**5Delivery**

5.1**Condition of the Aircraft** Sublessor, as a condition of Sublessee's obligation to accept the Aircraft, will, at its sole cost and expense, cause the Aircraft to meet the Delivery Conditions, subject to the provisions of Section 5.6.2.

5.2**[RESERVED]**

5.3**Delivery** Subject to the satisfaction or waiver of the Conditions Precedent and otherwise subject to the provisions of this Agreement, Sublessor will tender and Sublessee will accept delivery of the Aircraft on or about the Scheduled Delivery Date at the Delivery Location in an "**as is where is**" condition, at which time the leasing of the Aircraft pursuant to the terms and conditions of this Agreement shall commence.

5.4**[RESERVED]**

5.5**Acceptance Certificate** Sublessee shall effect acceptance of the Aircraft by delivering to Sublessor the duly completed and executed Acceptance Certificate. Sublessee's acceptance of the Aircraft pursuant to the Acceptance Certificate shall be regarded (i) for all purposes as absolute, irrevocable and unconditional and (ii) absolute, irrevocable and unconditional confirmation that Sublessee has inspected the Aircraft and the Aircraft is in all respects satisfactory for the purposes of this Agreement; provided that Sublessor shall remain obligated to rectify or procure rectification, or reimburse for or otherwise, such Minor Discrepancies as may be agreed in the Acceptance Certificate.

5.6**Inspection** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.1Prior to the Delivery Date, Sublessor shall present the Aircraft, including the Aircraft Documents, to Sublessee for inspection in accordance with the procedures set out in Schedule 2 to this Agreement in order that Sublessee

Sublease Agreement (MSN [__])

------

may verify that the Aircraft and the Aircraft Documents comply with the Delivery Conditions, subject only to Minor Discrepancies as agreed by Sublessor and Sublessee (each acting reasonably).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.2Sublessee shall promptly, but in any event within [\*\*\*] Business Days after becoming aware of such issue, notify Sublessor in writing of (i) any defect or non-conformity with the Delivery Conditions observed during the Initial Delivery Inspection or (ii) any damage sustained to the Aircraft during the Delivery Paint Positioning Flight that is not detailed in the dent and buckle chart or repair map as accepted by Sublessee at Delivery Initial Technical Acceptance and Sublessor (at its cost) shall, subject to Sublessee acting reasonably, correct or procure the correction of such defect, non-conformity or damage as promptly as practicable and in any case prior to Delivery, except to the extent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)otherwise agreed in writing between Sublessor and Sublessee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)that such correction is prohibitively expensive having regard to the Sublessor's economics in the reasonable opinion of Sublessor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the defect or non-conformity is a Minor Discrepancy provided that if such Minor Discrepancy is observed during the Initial Delivery Inspection, Sublessor will use reasonable commercial efforts to correct or procure the correction of (at Sublessor's cost) such Minor Discrepancy prior to Delivery Final Technical Acceptance.

Notwithstanding the above, Sublessor, in its sole discretion, may waive any Delivery Condition and elect to either not perform the applicable correction or delay the performance of the applicable correction until after Acceptance, subject to Sublessee's agreement (acting reasonably), as long as the failure to meet such Delivery Condition will not (i) specifically prohibit Sublessee from operating the Aircraft in accordance with its Operating Authority (as defined in the ATSA), or (ii) render the Aircraft unairworthy or inconsistent with the Baseline Configuration (as defined under the ATSA). Subject to approval by Sublessee, Sublessor may postpone the Delivery Date to the date on which Sublessor notifies Sublessee that the defect, non-conformity or damage has been corrected provided that Sublessee shall not be entitled to withhold approval to any postponement of the Delivery Date where rectification of such defect, non-conformity or damage cannot reasonably be completed prior to the intended Delivery Date. To the extent that any Delivery Condition is waived in accordance with this Section 5.6.2 the corresponding Redelivery Condition shall be deemed to be waived to the same extent. With respect to any Sublessor election above, Sublessor and Sublessee will include in the Acceptance Certificate a list of such uncorrected discrepancies and either confirmation that the correction will be made at Sublessor's cost after Acceptance or, with respect to any such uncorrected discrepancy, the corresponding Redelivery Condition will be deemed to be modified. In the event Sublessor notifies Sublessee that neither it nor Head Lessor intends to correct or procure the correction of any defect or non-conformity with the Delivery Conditions or damage, any additional costs that may be incurred by Sublessee due to waiving any such defect or non-conformity will be borne by Sublessor as follows: (y) any

Sublease Agreement (MSN [__])

------

incremental maintenance and/or operational activities that may need to be performed by Sublessee due to waiving any such defect or non-conformity, and any associated additional costs that may be incurred by Sublessee, will be mutually agreed between Sublessor and Sublessee in writing in the Acceptance Certificate; and (z) any such costs will be reimbursed by Sublessor to Sublessee pursuant to the ATSA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.3If, following good faith discussions regarding the rectification or waiver of any failure to meet a Delivery Condition, Sublessor and Sublessee agree that any such failure (a) cannot be corrected prior to acceptance or (b) cannot be waived in accordance with Section 5.6.2, then either Sublessor or Sublessee may terminate this Agreement on written notice to the other party. In the event of such a termination, all obligations of Sublessee and Sublessor under this Agreement will end on the date of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.4If Sublessor corrects or procures the correction of any defect or non-conformity in accordance with Section 5.6.2 Sublessee may further inspect the Aircraft to the extent necessary to satisfy itself in its sole discretion that the defect or non-conformity has been so corrected subject only to Minor Discrepancies.

5.7**Indemnity**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.1Sublessee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)pay to each Indemnitee on demand all Losses actually suffered by such Indemnitee to the extent such Losses were solely and directly caused by the conduct of any observer, agent, employee or representative of Sublessee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)indemnify, defend and hold harmless each of the Indemnitees from and against all Losses arising from (i) the death or injury of any observer, agent or employee of Sublessee and/or (ii) the gross negligence or wilful misconduct of any observer, agent, employee or representative of Sublessee,

in each case in connection with any operational check flight, any inspection of the Aircraft under this Section 5 or Schedule 2 to this Agreement or any inspection or visit following an Event of Default except to the extent due to the gross negligence or wilful misconduct of any Indemnitee (other than the gross negligence or wilful misconduct imputed as a matter of law to such Indemnitee solely by reason of its interest in the Aircraft).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.2Sublessor shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)pay to each Sublessee Indemnitee on demand all Losses actually suffered by such Sublessee Indemnitee to the extent such Losses were solely and directly caused by the conduct of any observer, agent, employee or representative of Sublessor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)indemnify, defend and hold harmless Sublessee Indemnitees from and against all Losses arising from (i) the death or injury of any observer, agent or employee of Sublessor and/or (ii) the gross

Sublease Agreement (MSN [__])

------

negligence or wilful misconduct of any observer, agent, employee or representative of Sublessor,

in each case in connection with any operational check flight, any inspection of the Aircraft under this Section 5 or Schedule 2 to this Agreement or any inspection or visit following an Event of Default except to the extent due to the gross negligence or wilful misconduct of any Sublessee Indemnitee (other than the gross negligence or wilful misconduct imputed as a matter of law to such Sublessee Indemnitee solely by reason of its interest in the Aircraft).

5.8**Licences** Sublessee shall at Sublessor's expense cooperate with Head Lessor's efforts to obtain all licences, permits and approvals required to export the Aircraft from the Delivery Location (including, without limitation, any ferry flight permit required to fly the Aircraft from the Delivery Location). Sublessee will provide Sublessor with such assistance, data and other information as Sublessor reasonably requests in connection with obtaining such licences, permits and approvals, and all Taxes and customs charges and duties incurred in connection with the export of the Aircraft from the Delivery Location or the import of the Aircraft into the State of Registration shall be for the account of the Sublessor, provided that Sublessee and Sublessor shall co-operate in good faith to minimise any such Taxes and customs charges or duties.

5.9**[RESERVED]** 

5.10**[RESERVED]**

5.11**[RESERVED]** 

5.12**Early Termination Option** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12.1Sublessor shall have the option to terminate the leasing of the Aircraft under this Agreement (the "**Early Termination Option**") at any time in accordance with the ATSA and any "Carrier Work Order" (as such term is defined in the ATSA) (the last day of such term as set forth in the Termination Notice, the "**Early Termination Date**"); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Sublessor shall give the Sublessee notice in writing (the "**Early Termination Notice**") of exercise of such option not less than 1 month prior to the Early Termination Date (or immediately if the "Carrier Work Order" (as such term is defined in the ATSA) for the Aircraft is terminated for any reason), which Termination Notice shall be irrevocable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)With effect from the receipt by the Sublessee of the Early Termination Notice, this Agreement shall be automatically amended so that the Termination Date is the Early Termination Date, but all other provisions of this Agreement shall remain in full and unvaried force and effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding the foregoing, this Agreement will terminate concurrently with the termination of the relevant Carrier Work Order (as defined in the ATSA) for the Aircraft entered into between Sublessee and Sublessor.

Sublease Agreement (MSN [__])

------

**6Manufacturer Warranties**

6.1**Assignment of Warranties**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1Sublessor hereby assigns to Sublessee and authorizes Sublessee to exercise, in each case with effect from Delivery and for the duration of the Sublease Period or until an Event of Default occurs, such rights as Sublessor has (if any) at the time of Delivery and which Sublessor may acquire during the Sublease Period under any warranties or guarantees (including with respect to any customer service entitlements available in relation to the Aircraft) in relation to the Aircraft, any Engine or any Part given by any Manufacturer, the P2F Converter, any supplier or any repairer, in each case to the extent capable of assignment or otherwise being made available to Sublessee. Sublessor shall enter into any other agreements or instruments necessary to further transfer any such warranties to Sublessee, and Sublessor shall use reasonable endeavours to procure the consent of any of the foregoing parties necessary to assign such warranties in favour of Sublessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2On the Termination Date (or, if applicable, the date upon which an Event of Default occurs) all rights under such warranties shall automatically and immediately revert to Sublessor (or upon its request, to Head Lessor) and Sublessee shall, promptly upon request, at Sublessor's cost, unless an Event of Default has occurred and is continuing, re-assign to Sublessor (or to such other person as Sublessor may direct) the benefit of any warranties assigned to Sublessee pursuant to Section 6.1.1, including all claims thereunder (whether or not perfected), and immediately thereafter take all steps and execute all documents provided by Sublessor required to perfect such re-assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3Sublessee will take all commercially reasonable steps as are necessary (i) to ensure that all work done on the Aircraft during the Sublease Period is covered by customary warranties which, if still in effect, would be transferable to Sublessor (or Sublessor's nominee) with any requisite consent at the end of the Sublease Period and (ii) at the end of the Sublease Period to ensure that the benefit of any and all warranties relating to the Aircraft to which this Section 6 applies and which have not expired is vested in Sublessor (or upon its request, to Head Lessor) (to the extent permitted by the relevant manufacturer, vendor or maintenance facility).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4Sublessee shall diligently and promptly pursue any valid claims it may have under the warranties assigned to it hereunder with respect to the Aircraft except as may be mutually agreed between Sublessee and Sublessor. Sublessee will provide Sublessor prompt written notice of any warranty claim of a value that is settled with Sublessee on the basis of a cash payment in excess of the Damage Notification Threshold.

6.2**Proceeds of Claims**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1Except as may otherwise be provided in the ATSA, Sublessee undertakes and agrees to apply any proceeds of any claims assigned to Sublessee pursuant to Section 6.1.1 to remedy the defect which is the subject of such claim or reimburse itself for the same. Sublessee shall, promptly following

Sublease Agreement (MSN [__])

------

receipt thereof, pay to Sublessor for Sublessor's own account (or upon its request, to Head Lessor) any and all cash payments received by Sublessee in respect of any warranty claims which relate to a diminution in value of the Aircraft, any Engine or any Part and which are not applied to the repair or remedy of defects in the Aircraft any Engine or any Part or reimbursement of Sublessee of costs expended in respect of the same and which are not in respect of compensation for loss of use of the Aircraft, any Engine or any Part during the Sublease Period due to a defect covered by such warranty and, pending such payment to Sublessor, Sublessee shall hold such monies on trust for Sublessor. So long as no Event of Default has occurred and is continuing and the leasing of the Aircraft pursuant to this Agreement has not expired or terminated, Sublessor will, subject to Section 6.1.4, co-operate with Sublessee to ensure that any such proceeds are paid to Sublessee directly. If any such proceeds are nonetheless paid to Sublessor, Sublessor agrees (subject to this Section 6.2.1) to remit such proceeds to Sublessee promptly within [\*\*\*] Business Days following Sublessor's receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2Notwithstanding the provisions of Section 6.2.1, upon the occurrence of an Event of Default which is continuing or the Termination Date Sublessor may immediately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)retain for its own account any proceeds which Sublessor would otherwise be obliged to remit to Sublessee pursuant to Section 6.2.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)take any steps which are necessary to ensure that the proceeds of any pending claims are paid to Sublessor and not to Sublessee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)recover from Sublessee the proceeds of any claims which have been previously paid to Sublessee,

in each case to the extent that such claims relate to any defect in the Aircraft, any Engine or any Part which have not been fully and completely rectified by Sublessee prior to the occurrence of such Event of Default or the Termination Date.

6.3**Engine and Parts** Sublessee will, except to the extent that Sublessor otherwise expressly agrees in the ATSA or as expressly permitted by this Agreement, procure that all engines, components, furnishings or equipment provided by any Manufacturer, supplier or repairer in replacement or repair of a defective Engine or Part pursuant to the terms of any warranty will be promptly installed by Sublessee and that title thereto, free of Liens other than Permitted Liens, vests in Head Lessor, whereupon such part will be deemed a Part and/or such engine will be deemed an Engine for the purposes of this Agreement.

6.4**Agreements with Manufacturers** To the extent that any warranties are made available under any agreement relating to the Aircraft between any Manufacturer, supplier or repairer and Sublessee, except as may otherwise be provided in the ATSA, Sublessee will apply the proceeds of any claim under any such agreement in accordance with Section 6.2 and, pending such application, will hold the claim and the proceeds thereof on trust for Sublessor.

Sublease Agreement (MSN [__])

------

**7Rental**

7.1**[RESERVED]**

7.2**Base Rental:** Sublessee shall pay Base Rental to Sublessor in advance on each Payment Date in the amount specified as "Base Rental" in paragraph 3 of Schedule 4 to this Agreement. Base Rental shall be prorated for partial Rental Periods based on the number of days in such Rental Period and the number of days in the relevant calendar month. Payment of Base Rental shall be initiated adequately in advance of the relevant Payment Date to ensure that Sublessor receives credit for such payment on such Payment Date.

7.3**Rental Periods** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.1The first Rental Period shall commence on the Delivery Date and end on the last calendar day of the calendar month in which the Delivery Date occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.2Each subsequent Rental Period shall commence on the first calendar day in the next calendar month and end on the last calendar day of such calendar month, except that if a Rental Period would otherwise end after the Termination Date, it shall end on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.3The final Rental Period shall, subject to the earlier termination of the leasing of the Aircraft in accordance with this Agreement, end on the Scheduled Termination Date.

**8[RESERVED]**

**9[RESERVED]**

**10Payments**

10.1**Accounts For Payments** All payments (including, without limitation, payments of Rental) due from Sublessee to Sublessor under this Agreement shall be made for value on the due date in Dollars and in immediately available funds by wire transfer not later than 5.00 p.m. (New York City time) (or as otherwise agreed by the parties) to the Payment Account.

10.2**Payments Due on Non-Business Days**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1If any payment by Sublessee to Sublessor falls due under this Agreement or any other Transaction Document on a day which is not a Business Day, such payment shall be made on or before the immediately succeeding Business Day with the same force and effect as if made on such due date and without adjustment in the amount due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2Payments shall be considered to be made on the date on which they are actually received in the Payment Account pursuant to Section 10.1 in the manner therein specified.

10.3**Net Lease** This Agreement is a net lease. Sublessee's obligations under this Agreement following Delivery, are absolute and unconditional irrespective of any circumstance or contingency whatsoever and Sublessee shall continue to fully

Sublease Agreement (MSN [__])

------

comply with its obligations under this Agreement irrespective of any circumstance or contingency whatsoever, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1any right of set off, counterclaim, recoupment, reimbursement, defence, abatement or other right which Sublessor or Sublessee may have against the other or against any other person for any reason whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.2any unavailability of the Aircraft for any reason, including requisition of the Aircraft or any prohibition, interruption or interference with or other restriction on Sublessee's use, operation or possession of the Aircraft (whether or not the same would, but for this Section 10.3, result in the termination of this Agreement by operation of law);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.3any lack of or invalidity of title or any other defect in the title, airworthiness, satisfactory quality, merchantability, condition, design, operation or fitness for the use of or loss or damage to the Aircraft or the ineligibility or unsuitability of the Aircraft for any particular purpose or for registration or documentation under the laws of any jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.4any insolvency, bankruptcy, reorganisation, amalgamation, arrangement, readjustment of debt, dissolution, liquidation or similar proceedings by or against Sublessor or Sublessee or any other person or the appointment of a liquidator, receiver or administrative receiver or like officer of Sublessor or Sublessee or any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.5any invalidity or unenforceability or lack of due authorisation of or other defect in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.6any Total Loss of, or damage to, the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.7any Lien or Tax; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.8any other event or circumstance which (but for this Section 10.3) would or might otherwise have the effect of terminating or in any way affecting any obligation of Sublessee under this Agreement.

Provided the ATSA is in effect with respect to the Aircraft, the provisions of the ATSA will control with respect to Sublessee's responsibility (including through one of Sublessee's Affiliates), if any, under the ATSA should the Aircraft (or any component thereof) become unavailable for use. Nothing in this Section 10.3 shall be construed to limit Sublessee's right to institute separate legal proceedings against Sublessor in the event of Sublessor's breach of this Agreement or to limit Sublessee's rights and remedies against any other person.

10.4**Default Interest** Sublessee shall pay interest on each Overdue Sum at the Default Rate for the period from the date on which such Overdue Sum was due to be paid to the date of actual payment. All such interest shall be compounded monthly and calculated on the basis of the actual number of days elapsed in the month, assuming a month of 30 days and a year of 360 days.

10.5**Currency** Sublessee acknowledges and agrees that the specification of Dollars in this Agreement is of the essence and that Dollars shall be the currency of account in all

Sublease Agreement (MSN [__])

------

circumstances. Sublessee waives any right it might have in any jurisdiction to pay any amount under this Agreement in a currency other than Dollars except for payments expressly stated in this Agreement to be payable in another currency.

10.6**Application of Moneys** Sublessor may, at its sole discretion, partly or wholly apply any money it has received or recovered from or on behalf of Sublessee either to payments due or overdue under this Agreement or any other Transaction Document at the time of such receipt or recovery, or if an Event of Default is then continuing, to any other sums payable and due under the Transaction Documents and/or any Other Agreements in such manner as Sublessor may determine.

10.7**[RESERVED]**

10.8**Certificates** Save where expressly provided to the contrary in this Agreement and provided the same contains a reasonable amount of detail (including invoices or similar evidence of costs and any requisite calculations), any certificate or determination by Sublessor as to any rate of interest or any other amount payable in accordance with a specific formula set forth in this Agreement shall, in the absence of manifest error, be conclusive and binding on Sublessee.

**11Covenants**

11.1Sublessor agrees that, except (x) as expressly permitted by Section 19.2 of this Agreement following an Event of Default that has occurred and is continuing and (y) following a termination of the leasing of the Aircraft hereunder pursuant to Section 23 of this Agreement, notwithstanding anything herein or in any other Transaction Document to the contrary, neither it nor any person claiming by, through or under it or in its name (including any Leveraging Lender) shall take or cause any action to be taken that would in any way: (a) interfere with the continued possession, use and operation of, and quiet enjoyment of, the Aircraft by Sublessee, (b) make or permit to be made, any registration with respect to the Airframe or any Engine on the International Registry, other than any such registration permitted pursuant to the Transaction Documents, (c) discharge the registration with the Aviation Authority of the Aircraft, the Head Lease or this Agreement, (d) discharge the registration with the International Registry of the International Interests arising with respect to this Agreement, (e) transfer the right to discharge any of such International Interests to any other person or cause any such right to be so transferred (other than in the case of any Leveraging Transaction that complies with Section 27.5, to the applicable Security Trustee) or (f) take or cause to be taken any action inconsistent with Sublessee's rights under this Agreement and its right to quiet enjoyment of the Aircraft, the Airframe, any Engine or any Part.

11.2From the date of this Agreement and throughout the Sublease Period, Sublessee covenants to Sublessor that it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.1perform and comply with its undertakings and covenants in this Agreement at all times during the Sublease Period and until the Aircraft has been returned to Sublessor in accordance with, and Sublessee has performed all its other obligations under, this Agreement;

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2use all reasonable endeavors to procure that none of Sublessee's officers, directors, employees, agents, affiliates, contractors or sub-contractors act in any manner inconsistent with Sublessee's obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.3preserve and maintain its corporate existence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.4pay or cause to be paid (i) all Taxes required by applicable laws to be paid by it (whether such Taxes are imposed upon it or upon its income and profits or upon any property belonging to it or otherwise) prior to the date on which any penalty accrues, except Taxes which it is contesting in good faith by appropriate proceedings provided that such contest does not involve any risk of criminal penalty on any Indemnitee or Tax Indemnitee or any material risk of sale, forfeiture, confiscation, seizure or loss of, or the imposition of any Lien on, the Aircraft, the Airframe or any Engine or any interest therein, and (ii) all other lawful claims which, if not paid, are reasonably likely to result in the imposition of a Lien upon the Aircraft or any part thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.5maintain in full force and effect all governmental consents, licenses, authorizations, approvals, declarations, filings and registrations obtained or effected by Sublessee in connection with this Agreement and every document or instrument contemplated hereby to be obtained by Sublessee (for the avoidance of doubt, excluding any such consents, licenses, authorizations, approvals, declarations, filings or registrations (i) relating to registration of the Aircraft with the FAA or any export or import of the Aircraft and (ii) to be obtained by Sublessor or any other Indemnitee under any other agreement) and to take all such additional action as may be proper or advisable in connection herewith or therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.6not consolidate with, merge with or merge into any other corporation or convey, transfer or lease substantially all of its assets as an entirety to any other Person except as provided in the ATSA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.7notify Sublessor of any change to Sublessee's registered office, principal place of business or chief executive office if there is more than one place of business within [\*\*\*] days following such change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.8pay promptly when due (i) all navigation and en-route charges and all other charges payable by Sublessee for the use of or services provided at any airport and (ii) any fines imposed by the Aviation Authority for violation of navigation rules, whether in respect of the Aircraft or any other aircraft in Sublessee's fleet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.9not at any time (i) represent or hold out Head Lessor, Sublessor, Servicer, any Leveraging Lender, any Security Trustee or any Affiliate of the foregoing as carrying goods or passengers on the Aircraft or being in any way connected to or associated with operation of the Aircraft (for the avoidance of doubt, other than identification of such parties in their capacities under the Transaction Documents or on the aircraft livery specified by Sublessor pursuant to Section 3.2 of Schedule 2) or (ii) except for the credit of Sublessor in connection with any maintenance, service, repairs, overhauls of, modifications to, or changes or alterations in the

Sublease Agreement (MSN [__])

------

Aircraft for which responsibility is allocated to a party other than Sublessee under the ATSA, pledge the credit of Sublessor or any of the other Indemnitees for any maintenance, service, repairs, overhauls of, modifications to, or changes or alterations in the Aircraft or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.10have measures in place designed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)comply with all Regulations (as defined below) and procure that the Aircraft shall in no event be used, operated, located or controlled in a manner causing Owner Trustee, Beneficiary, Servicer or any Security Trustee notified to Sublessee in writing from time to time to be in violation of any Regulations or causing Owner Trustee, Beneficiary, Servicer or any Security Trustee notified to Sublessee in writing from time to time to be subject to criminal or civil sanction or the Aircraft liable to seizure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)not cause or permit the Aircraft or any Engine to proceed to, or remain in (or be flown or transported to) any Excluded Country or any other location to the extent then prohibited by applicable Law and Sublessee shall ensure that Aircraft shall not be used in, or with respect to travel to and/or from, any of the countries or territories as to which the United States of America has imposed a comprehensive embargo (currently Cuba, Iran, North Korea, Syria, and the Crimea Region), except to the extent permitted by this Agreement as part of the CRAF Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)procure that the Aircraft will not be used for any illegal purpose or in an illegal manner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)comply with any and all reasonable requests from Head Lessor or Beneficiary to verify and/or certify compliance with the requirements of this Section 11.2.10 (including, but not limited to, providing to Head Lessor or Beneficiary upon Head Lessor's or Beneficiary's request (i) a duly completed compliance questionnaire relating to Sublessee's operations and (ii) a duly completed compliance certificate with supporting evidence and appending a copy of any and all relevant licenses pursuant to which Sublessee is seeking to evidence Sublessee's compliance with its obligations under this Agreement) (redacted as necessary to protect Sublessee's confidential information),

provided that Sublessee's obligations under Sections 11.2.10(a) and 11.2.10(d) are subject to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Sublessee obtaining any applicable consent or licence from the relevant government or other regulatory entity allowing it to locate, operate or use the Aircraft in a manner which would otherwise be prevented by the terms of Sections 11.2.10(a) or 11.2.10(b), provided that reliance on such consent or license would not cause Head Lessor,

Sublease Agreement (MSN [__])

------

Beneficiary, the Servicer or the Security Trustee to be in violation of any Regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Head Lessor waiving the terms of Sections 11.2.10(a) or 11.2.10(b) in respect of any specific set of circumstances. In deciding whether to grant such a waiver, Head Lessor agrees (at its cost) to undertake good-faith consultation with all relevant entities and take into account Sublessee's operational requirements as well as its own prevailing policy,

and further provided that a violation of this Section 11.2.10 shall not result in a Default or an Event of Default if it is an isolated extraordinary emergency event beyond Sublessee's control that Sublessee is diligently trying to rectify and the Aircraft is removed from such situation or location as promptly as practicable.

In this Section 11.2.10:

"**Regulations**" means any law or regulation, official directive or recommendation, issued by a Governmental Entity which applies to Sublessee or the Aircraft and any law or regulation, official directive or recommendation issued by a Governmental Entity which applies to Sublessor, Owner Trustee, Beneficiary, or the Servicer. For the avoidance of doubt, "Regulations" includes (i) applicable economic or financial sanctions laws or regulations or trade embargoes imposed, administered or enforced, at the time in question by the United States (including OFAC), the United Nations and the European Union and (ii) export control laws and any other economic and trade sanctions, export control, and customs laws applicable to Sublessor, Sublessee or the Aircraft, including U.S. Export Control Reform Act of 2018, U.S. International Traffic in Arms Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.11promptly after Sublessee has actual knowledge thereof, notify Sublessor of any Total Loss or any event which is likely to result in an insurance claim in excess of the Damage Notification Threshold and upon Sublessor's request, status updates relating to such claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.12promptly after Sublessee has actual knowledge thereof, notify Sublessor of the occurrence of any Default or any Event of Default and upon Sublessor's request, provide Sublessor with full details of any steps which Sublessee is taking or is proposing to take in order to remedy, or mitigate the effect of, such Default or such Event of Default; and

**12Reporting**

Sublessee shall:

12.1provide to Sublessor by the [\*\*\*] day of the succeeding calendar month a completed report substantially in the form of Appendix B for the previous calendar month;

Sublease Agreement (MSN [__])

------

12.2give to Sublessor all such information as Sublessor may from time to time reasonably request regarding the location, condition, use and operation of the Aircraft (including the time and location of the next C Check or Engine Performance Restoration);

12.3within [\*\*\*] Business Days after receipt by Sublessee of a request by Sublessor (or such shorter period as may be set forth in any written request by any Governmental Entity for information or documents), Sublessee shall furnish in writing to Sublessor such information or documents within its possession or which are reasonably available to it (or copies thereof certified as correct by an authorized officer of Sublessee) regarding the Aircraft as may reasonably be requested by Sublessor or as may be required to enable Head Lessor or Sublessor to file any report or document required to be filed by it with any Governmental Entity because of Head Lessor's ownership interest in the Aircraft, the Airframe or the Engines; provided that Sublessee shall not be required to furnish Sublessor with any such information or documents which are proprietary or confidential unless required to comply with a request from any Governmental Entity;

12.4promptly after receipt thereof, provide Sublessor with a copy of any letter, notice, claim or threat of suit, that relates specifically to the Aircraft, the Sublease and/or is related to any matter which is reasonably likely to result in the Aircraft (or any part of it) being detained, seized and/or sold; and

12.5promptly after Sublessor's request, provide Sublessor with such information as is reasonably required so that Head Lessor, Sublessor, Owner, any Security Trustee or any Leveraging Lender is able to comply with "know your customer" identification procedures, checks and requirements.

**13Nameplates**

Sublessee shall, at Sublessee's cost and expense, (a) affix promptly upon receipt thereof from the Sublessor following Delivery (but subject to no interference with the commercial operation of the Aircraft) and (b) maintain throughout the Sublease Period, fireproof identification plates in a clearly visible place in the cockpit of the Aircraft and on each Engine in the vicinity of the Manufacturer's data plate, that contains the legend:

"THIS [AIRCRAFT][ENGINE] IS OWNED BY UMB BANK, NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS OWNER TRUSTEE, AND LEASED TO AMAZON.COM SERVICES LLC, AND SUBLEASED TO HAWAIIAN AIRLINES, INC. [AND IS SUBJECT TO A MORTGAGE IN FAVOUR OF [●] AS SECURITY TRUSTEE] AND MAY NOT BE OR REMAIN IN THE POSSESSION OF, OR OPERATED BY, ANOTHER PERSON WITHOUT SUBLESSOR'S PRIOR WRITTEN CONSENT."

Sublessee shall promptly replace any such nameplate that becomes illegible, lost, damaged or destroyed for any reason (but subject to no interference with the commercial operation of the Aircraft). If at any time such legend becomes incorrect or insufficient, Sublessee will, at Sublessor's request and cost (but subject to no interference with the commercial operation of the Aircraft), promptly affix such new

Sublease Agreement (MSN [__])

------

nameplates to the Airframe and the Engines as may be required and provided by Sublessor.

**14Operation**

14.1**Use and Operation** Sublessee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)comply with the laws of any country or jurisdiction which may for the time being be applicable to the Aircraft and its use, maintenance and operation (it being understood that such laws shall be limited to the laws of the State of Registration except in connection with Redelivery), including but not limited to the holding of all applicable certificates, licenses, permits, authorizations and regulations and Sublessee will advise Sublessor promptly following actual knowledge thereof in the event any such licenses, certificates or permits are cancelled, terminated, revoked or not renewed, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)take all reasonable steps to ensure that the Aircraft is not used for any illegal purpose,

other than, in each case any laws with which Sublessee is prohibited by other applicable law from complying;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.2not use the Aircraft, any Engine or any Part in any manner contrary to (i) any Manufacturer's operating manuals or instructions, or in violation of any airworthiness certificate or registration relating thereto or (ii) any regulation of the Aviation Authority, or the State of Organization or for any purpose for which the Aircraft is not designed or reasonably suitable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.3ensure that the personnel employed by it in connection with the operation and maintenance of the Aircraft have the qualifications and licences required by the Aviation Authority and applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.4use the Aircraft solely in commercial or other operations for which Sublessee is duly authorized by the Aviation Authority and applicable law (including the CRAF Program but subject to Section 14.3.3);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.5comply with any carriage regulations or restrictions issued by IATA from time to time and not use the Aircraft for the carriage of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)whole animals living or dead;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)acids, toxic chemicals, other corrosive materials, explosives, nuclear fuels, nuclear wastes, or any nuclear assembles or components, except as permitted expressly by Sublessor and for cargo aircraft under the ICAO's Technical Instructions for the Safe Transportation of Dangerous Goods by Air (to the extent applicable to an operator in the same jurisdiction as Sublessee) from time to time and provided that all the requirements for packaging or otherwise contained therein are fulfilled; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)any illegal item or substance;

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.6not utilise the Aircraft for purposes of training, qualifying or re-confirming the status of cockpit personnel except for the benefit of Sublessee's cockpit personnel or prospective cockpit personnel that Sublessee is considering for employment and subject to Sublessor's consent, and then only if the use of the Aircraft for such purpose is not disproportionate to the use for such purpose of other similar model aircraft within Sublessee's fleet of aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.7**[RESERVED]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.8not use, operate or locate the Aircraft or suffer or permit the Aircraft to be used, operated or located for any purpose or in any manner not fully covered by the Insurances (other than any requisition or grounding by any applicable Governmental Entity which is outside the control of Sublessee), or outside any geographical limit imposed by the Insurances or in any manner which might prejudice the interests of the Indemnitees in the Insurances, the Aircraft, any Engine or any Part provided that a violation of this Section 14.1.8 shall not result in a Default or an Event of Default if it is an isolated extraordinary emergency event attributable to a hi-jacking, medical emergency, equipment malfunction, weather conditions, navigational error or other unforeseen circumstances, in each case beyond Sublessee's control that Sublessee is diligently trying to rectify and the Aircraft is removed from such situation or location as promptly as practicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.9take no action resulting in a change of the Records Location or the State of Registration without the prior written consent of Sublessor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.10obtain and maintain in full force and effect all licences, permits, certificates and authorisations from time to time required to be obtained or effected by Sublessee under this Agreement in respect of the use and operation of the Aircraft and the making of payments required by, and the compliance by Sublessee with all its other obligations under the Transaction Documents (for the avoidance of doubt, excluding any such licenses, permits, certificates or authorizations (i) relating to registration of the Aircraft with the FAA or any export or import of the Aircraft or (ii) to be obtained by Sublessor or any other Indemnitee under any other agreement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.11not discriminate in the operation, insurance, maintenance, repair, alteration, modification, servicing, installation or use of the Aircraft or any Engine or any Part when compared with the operation, insurance, maintenance, repair, alteration, modification, servicing, installation or use of other aircraft, engines or parts in Sublessee's fleet of the same type as the Aircraft, Engines or Parts utilized pursuant to the ATSA. The provisions of this Section 14.1.11 shall not derogate from or reduce the obligations of Sublessee under this Agreement.

14.2**Operational Expenses** Except as otherwise expressly provided in this Agreement (or the ATSA), Sublessee shall promptly pay and discharge all costs, expenses and other charges of any nature relating to the operation and use of the Aircraft during the Sublease Period, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.1all costs, expenses and charges incurred in the operation of the Aircraft during the Sublease Period including, without limitation, license and

Sublease Agreement (MSN [__])

------

registration fees, expenses of flight crews, cabin personnel, fuel, oil, lubricants, maintenance, insurance, landing and navigation fees, airport charges, cargo service and any and all other expenses or claims of any kind or nature incurred during the Sublease Period, arising directly or indirectly in connection with or related to the use, movement, operation, storage or location of the Aircraft or any Engine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.2all rent, charges, fees and other amounts in respect of any premises where the Aircraft, any Engine or any Part is situated from time to time.

14.3**Subleases** Sublessee shall not enter into, or agree to enter into, any further sublease or Wetlease in respect of, or otherwise part with the use or possession of, the Aircraft, any Engine or Part without the prior written consent of Sublessor, provided that (except with respect to Section 14.3.4 below) Sublessee may without such consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3.1part with possession of the Aircraft, the Airframe, any Engine or any Part to the relevant Manufacturer or an Authorized Maintenance Provider for service, repair, maintenance, overhaul, testing or similar purposes to the extent required or permitted by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3.2part with possession of the Aircraft, the Airframe, any Engine or any Part as expressly permitted by this Agreement (including, without limitation, Section 14.3.4);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3.3subject the Aircraft, the Airframe or any Engine to, or transfer possession of the Aircraft, the Airframe or any Engine to the United States of America or any instrumentality or agency thereof as part of the Civil Reserve Air Fleet program ("**CRAF Program**") provided that Sublessee (A) shall promptly provide to Sublessee a copy of the lease, sublease, contract or other instrument pursuant to which the Aircraft, Airframe or any Engine is entered into the CRAF Program for its information and records, (B) shall promptly notify Sublessor in writing upon transferring possession of the Aircraft, Airframe or any Engine pursuant to this Section 14.3.3 and (C) in the case of a transfer of possession pursuant to the CRAF Program, shall notify Sublessor in writing of the name, address and phone number of the responsible Contracting Office Representative for the Air Mobility Command of the United States Air Force or other appropriate Person to whom notices must be given and to whom requests or claims must be made to the extent applicable under the CRAF Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3.4subject to no Event of Default having occurred which is continuing at the commencement of any Wetlease, enter into a Wetlease of the Aircraft with any person in the ordinary course of Sublessee's business, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)no change occurs in the State of Registration or the Records Location will occur as a result thereof (unless agreed by Sublessor acting reasonably);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the wet lessee expressly agrees in favour of Sublessor and the Security Trustee that its rights under the Wetlease are subject and subordinate in all respects to the rights of Sublessor as owner and lessor under and pursuant to this Agreement and of the Security

Sublease Agreement (MSN [__])

------

Trustee as mortgagee, and accordingly that, if Sublessor terminates Sublessee's right to possession of the Aircraft under this Agreement, the wet lessee's right to benefit from the operation of the Aircraft under the Wetlease shall immediately terminate and the wet lessee shall make no objection to, and shall do all such things as may be necessary to facilitate, the immediate redelivery of the Aircraft by Sublessee to Sublessor. The foregoing agreement of the wet lessee shall be confirmed in writing to Sublessor by the relevant wetlessee on the request of Sublessor unless Sublessor and Security Trustee are each named as third party beneficiaries in the Wetlease, either expressly or by generic reference to the capacity in which they are acting under the Transaction Documents. Sublessee hereby covenants and undertakes to Sublessor that it shall remain at all times bound to perform all its obligations under this Agreement notwithstanding any Wetlease of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the term of any Wetlease shall in no event extend beyond the Scheduled Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Sublessee shall provide a copy of the Wetlease to Sublessor after execution.

14.4**Subordination** Anything in this Agreement to the contrary notwithstanding, the Sublessee's rights hereunder to the possession, use and enjoyment of the Airframe, and if attached to the Airframe at the commencement of the Sublease Period or if subsequently delivered to Sublessee during the Sublease Period, the Engines in accordance with the terms hereof shall be subject to the Head Lease in respect of the Aircraft, Airframe and Engines, and the Sublessee confirms and agrees that this Sublease is in all respects subject and subordinate to the Head Lease. Upon notice to the Sublessee hereunder by the Head Lessor that an Event of Default (as defined in the Head Lease) has occurred and is continuing, and that the Head Lease shall have been cancelled or terminated pursuant to the terms thereof, the Head Lessor may, at its option, by written notice to the Sublessee after the date of such cancellation or termination, terminate this Sublease and require prompt delivery by the Sublessee of the Aircraft to the Head Lessor subject to Sublessee having complied with its obligations: (a) to use and operate the Aircraft as described in Section 14.1 of this Agreement; and (b) to maintain the Aircraft in accordance with the requirements of the Maintenance Programme as described in Sections 15.1 (excluding Sections 15.1.12 and 15.1.13), 15.7, 15.9 and 15.10 of this Agreement (for clarity, without satisfaction of any other requirement or standard not incorporated in the Maintenance Programme whether or not such requirement or standard is referenced in such Sections) and comply with the restrictions set forth in Sections 15.1.12, 15.1.13, 15.3.2 and 15.3.3 of this Agreement. Unless the Sublessee shall have received any such written notice from the Head Lessor terminating this Sublease, the Sublessee shall be and remain fully obligated hereunder notwithstanding the continuance of any Event of Default under the Head Lease or the termination or cancellation thereof pursuant to the terms thereof.

**15Maintenance and Repair**

15.1**Generally** Sublessee shall:

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.1maintain, overhaul and repair the Aircraft so that the Aircraft is kept in as good operating condition and repair as the condition of the Aircraft at Delivery, subject to ordinary wear and tear and after giving effect to any post-Delivery modifications, repairs or maintenance paid for or permitted pursuant to the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.2maintain in good standing a current and effective certificate of airworthiness (issued by the Aviation Authority in the appropriate public transport category) for the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.3cause the Aircraft to be compliant with all applicable laws and regulations and the standards stipulated by FAR Part 121 and in a manner to maintain all warranty and service life policies and the requirements of all Airworthiness Directives and all service bulletins designated by the Aviation Authority or Type Authority as "mandatory" which are required to be carried out before the Scheduled Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.4cause all maintenance to be carried out according to the Maintenance Programme through an Authorized Maintenance Provider and shall cause all maintenance to be performed, and the Aircraft to be maintained, overhauled and repaired, in at least the same manner and with at least the same care, including maintenance scheduling, modification status and technical conditions, as is the case with respect to similar aircraft owned, leased or otherwise operated by Sublessee and utilized pursuant to the ATSA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.5notify Sublessor of any material change to the Maintenance Programme;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.6incorporate in the Maintenance Programme for the Aircraft a fuel tank contamination programme as recommended by the Manufacturer and/or the Aviation Authority and/or Type Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.7monitor the performance of the Engines using the Engine Manufacturer's or other generally acceptable trend monitoring software;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.8report to the Manufacturer the incorporation of service bulletins and Equipment Changes in a timely manner for the purpose of keeping the manuals published by the Manufacturer up to date with the configuration of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.9promptly repair any defects found in respect of the Aircraft, including any individual Engine or Part that is deemed unserviceable, during the Sublease Period (or, with respect to a Part, replace such Part pursuant to Section 15.3);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.10**[RESERVED]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.11notify Sublessor of all structural repairs to the Airframe and procure that all such structural repairs shall be Acceptable Repairs; notwithstanding the foregoing: (a) Sublessee shall be permitted to accomplish structural repairs to the Airframe in accordance with data that has not been approved by the Manufacturer, provided (i) each such repair has been accomplished in accordance with data approved by the FAA, (ii) Sublessee provides to Sublessor at Redelivery all reasonably pertinent records which would enable

Sublease Agreement (MSN [__])

------

Sublessor to have the repair reviewed against type design by the Airframe Manufacturer following Redelivery, and (iii) except in respect of (i) and (ii) above, the repair is otherwise compliant with the requirements for an Acceptable Repair (any such repair pursuant to the foregoing requirement an "**Adapted Acceptable Repair**"); and (b) during the Sublease Period, Sublessee shall be permitted to accomplish a [\*\*\*] with an interval for supplemental inspection less than [\*\*\*] Flight Hours and/or [\*\*\*]Cycles [\*\*\*] months or a [\*\*\*]), provided Sublessee replaces any such repair with an Acceptable Repair or an Adapted Acceptable Repair prior to the Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.12procure that no DER Repairs shall be incorporated in the Airframe, Engines or Parts, except as set out above in Section 15.1.11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.13procure that repairs to Engines shall be accomplished in accordance with the Engine Manufacturer's published manuals and that any deviations to the requirements of the Engine Manufacturer's published manuals recommended by the Engine Manufacturer which are specific to an Engine (as opposed to all engines of the same type as the Engine) shall have Type Authority approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.14except as otherwise expressly permitted herein, procure that repairs to Parts shall be accomplished in accordance with the published manuals of the Manufacturer of such Parts or in accordance with other repair data recommended by the Manufacturer of such Parts and approved by the Type Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.15Notwithstanding anything in the Transaction Documents to the contrary, except in connection with (a) the Redelivery Conditions and (b) Sublessee's compliance with Section 14.1 of this Agreement, Sublessee's performance of its obligations under Sections 15.1 (excluding Sections 15.1.12 and 15.1.13), 15.7, 15.9 and 15.10 (including any references to other sections or schedules of this Agreement contained in such sections) in accordance with the requirements of the Maintenance Programme (for clarity, without satisfaction of any other requirement or standard not incorporated in the Maintenance Programme whether or not any such requirement or standard is referenced in any such sections or schedules) shall be deemed to satisfy Sublessee's obligations hereunder. Notwithstanding anything in the Maintenance Programme to the contrary, Sublessee shall in all cases comply with the restrictions set forth in Sections 15.1.12, 15.1.13, 15.3.2 and 15.3.3. Sublessor and Sublessee agree that the cost of the performance Sublessee's obligations under this Section 15 shall be as provided in the ATSA.

15.2**Permanent Replacement of Engines**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2.1Sublessee shall as soon as reasonably practicable and in any event before the earliest to occur of (x) the Scheduled Termination Date, (y) the Termination Date, and (z) [\*\*\*] days of the occurrence of an Engine Total Loss with respect to an Engine procure the replacement of such Engine by conveying to Head Lessor title to an engine complying with the following conditions (the "**Replacement Engine**"); provided that, notwithstanding the foregoing (but without prejudice to Section 2.5.3 of the ATSA), in connection with an

Sublease Agreement (MSN [__])

------

Engine Total Loss, Sublessee's obligations hereunder shall be limited to reasonable cooperation with Sublessor, acting in good faith and with due haste, to procure a Replacement Engine:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Replacement Engine shall (i) meet the entry conditions required under the PBH Agreement between Sublessor and Engine Manufacturer, (ii) be in a condition which does not result in an entry fee or similar charges under the PBH Agreement between Sublessor and Engine Manufacturer and (iii) of be of the same type, model and manufacture as the Engine to be replaced, or an improved model of the same manufacture, and suitable for use on the Airframe and compatible with the remaining Engine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the Replacement Engine shall be of at least equivalent value, maintenance status and modification status as the Engine to be replaced, assuming that such Engine was in the condition required by the provisions of this Agreement immediately prior to its replacement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the Replacement Engine and its LLPs shall not have been involved in any incident or accident;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the Replacement Engine shall become and remain the property of Head Lessor free of all Liens (other than Permitted Liens) and on becoming the property of Head Lessor shall without further act be subject to this Agreement and may be subject to any applicable Mortgage in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Sublessee shall have full details of the Replacement Engine's source (including evidence of the chain of ownership back to the Manufacturer thereof to the extent available, provided Sublessee shall use reasonable efforts to obtain any missing evidence) and maintenance records including (1) records of shop visits performed on such engine; (2) evidence of TSN and CSN of such engine at installation on and removal from each airframe on which such engine has been installed since its manufacture, (3) a statement in respect of such engine (which may be at the aircraft or the engine level) from each operator of such engine since new manufacture confirming that the engine has never been involved in an incident or accident and (4) all certification documentation necessary to demonstrate back to birth traceability as required in accordance with D16 of Schedule 3 for the LLPs of such engine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)immediately prior to installation, the Replacement Engine must have a current Serviceable Tag compliant with the requirements of the Aviation Authority for installation on the Aircraft and indicating that such replacement engine is either new, inspected, repaired or overhauled.

In the case of an Engine Total Loss any insurance proceeds paid to Sublessee with respect to the Engine suffering such Engine Total Loss shall

Sublease Agreement (MSN [__])

------

be (x) paid over to Sublessor if Sublessor sources the Replacement Engine, or (y) retained by Sublessee if Sublessee sources the Replacement Engine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2.2At or prior to the time of any such conveyance, and as a condition to such replacement, Sublessee shall promptly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)provide Sublessor (for benefit of Head Lessor) with a warranty bill of sale with a full title guarantee and otherwise in form and substance reasonably satisfactory to Head Lessor duly conveying to Head Lessor title to such Replacement Engine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)cause an acceptance certificate and, if required, a lease supplement (each in form and substance satisfactory to Sublessor) covering such Replacement Engine and subjecting such Replacement Engine to this Agreement to be duly executed and recorded or registered pursuant to applicable law (such recordation or registration to be evidenced by the provision to Sublessor and, if required, the Security Trustee, of an opinion reasonably acceptable to Sublessor from counsel in the State of Registration);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)provide Sublessor with such evidence of compliance with the insurance provisions of this Agreement with respect to such Replacement Engine as Sublessor may request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)at Sublessor's cost, provide Sublessor and, if required by Sublessor, Security Trustee, with a customary legal opinion reasonably acceptable to Sublessor, addressed to and in form and substance satisfactory to Sublessor and the Security Trustee, confirming:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)that such Replacement Engine is duly leased hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)that any acceptance certificate and/or lease supplement referred to in Section 15.2.2(b) is valid and enforceable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)such other matters as Sublessor may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)provide Sublessor with a certificate of an aircraft engineer (who may be an employee of Sublessee) certifying that such Replacement Engine is of at least equivalent value, maintenance status and modification status as the Engine to be replaced, assuming that such Engine was in the condition required by the provisions of this Agreement immediately prior to its replacement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)provide Sublessor with evidence of the chain of ownership back to the Manufacturer in respect of such Replacement Engine to the extent available, provided Sublessee shall use reasonable efforts to obtain any missing evidence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)cause a financing statement with respect to such Replacement Engine or other documents or instruments necessary to perfect the interests of Sublessor and Security Trustee therein to be filed in such place or places as Sublessor may reasonably request in order to perfect Sublessor's interest therein in the United States of

Sublease Agreement (MSN [__])

------

America, or in such other jurisdiction in which the Aircraft is then registered; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)if the seller of the Replacement Engine is "situated in" a country that has ratified the Cape Town Convention, cause such seller to register the contract of sale to such Replacement Engine in favour of the Sublessor on the International Registry, and if the seller of the Engine is not situated in a country that has ratified the Cape Town Convention, use its best efforts to cause the seller to register the contract of sale on the International Registry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2.3Upon compliance by Sublessee with (or waiver by Sublessor of) the provisions of Sections 15.2.1 and 15.2.2 Sublessor shall transfer, subject to the rights of any third parties (including any insurers and reinsurers) and at the cost and expense of Sublessee, to the Sublessee or to its designee all its rights in and to the Engine being replaced. Such transfer will be on an "as-is, where-is" basis and without recourse or warranty except as to freedom from any Sublessor Lien express or implied, whereupon such Engine being replaced shall no longer be an "Engine" for the purposes of this Agreement and such Replacement Engine shall be an "Engine" for the purposes of this Agreement.

15.3**Permanent Replacement of Parts** Sublessee (or Sublessor to the extent agreed in the ATSA) shall procure the replacement of any Part that is worn out, unserviceable, time expired (other than in circumstances where normal practice and the manufacturer's recommendations permit continued use following proper maintenance), lost, confiscated, stolen, destroyed, seized, damaged beyond repair or permanently rendered unfit for use with a replacement part in accordance with the AMM and in any event prior to Redelivery. In addition, in the ordinary course of maintenance, service, repair, overhaul or testing, Sublessee may remove any Part, whether or not worn out, unserviceable, time expired, lost, confiscated, stolen, destroyed, seized, damaged beyond repair or permanently rendered unfit for use; <u>provided</u> that Sublessee shall either reinstall such Part or replace such Part pursuant to the terms of this Section 15.3 in accordance with the AMM, and in any event prior to Redelivery. Each replacement part shall comply with the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.1unless otherwise agreed by Sublessor, the replacement part shall be in as good an operating condition, of the same or an improved make and model and have at least the equivalent value, utility, maintenance status and modification status as the Part to be replaced assuming that such Part was in the condition required by the provisions of this Agreement immediately prior to its replacement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.2the replacement part shall not be a PMA Part, except to the extent that Sublessor has provided prior written consent to the installation of such PMA Part, and provided that, notwithstanding the foregoing, FAA or EASA approved PMA Parts may be used (a) in the repair of cabin interiors, including cargo loading systems or (b) as expendables or consumables installed during maintenance (other than any Parts of the Engines, the APU or the Landing Gear), where such PMA Parts would not need to be recorded on the Serviceable Tag for the relevant Part following its release to service

Sublease Agreement (MSN [__])

------

from such maintenance and where such use does not cause a change in the part number of the Part nor the modification level of the Part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.3the replacement part shall not incorporate a DER Repair, except as permitted by Section 15.1.11 or to the extent that Sublessor has provided prior written consent to the installation of such part incorporating a DER Repair;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.4the replacement part shall, in the case of a replacement Life Limited Part, not have been involved in any incident or accident and, in all other cases, not be known by Sublessee to have been involved in any incident or accident, or in any such case be the subject of an IATA standard "Incident Clearance Statement";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.5on installation on the Aircraft, the replacement part shall become and remain the property of Head Lessor free of all Liens (other than Permitted Liens) and shall without further act be subject to this Agreement and may be subject to any applicable Mortgage in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.6Sublessee shall have the records as would be required by Schedule 3, including, in respect of a part that is a Life Limited Part, evidence of TSN and CSN (as applicable) and all certification documentation necessary to demonstrate back to birth traceability as required in accordance with Schedule 3; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.7immediately prior to installation, the replacement part shall have a current Serviceable Tag compliant with the requirements of the Aviation Authority for installation on the Aircraft and indicating that such replacement part is either new, serviceable, repaired or overhauled.

15.4**Temporary Engine Removal and Interchange** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4.1Sublessee (or Sublessor to the extent agreed in the ATSA) shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)procure that no Engine is at any time removed from the Airframe unless it is replaced promptly and otherwise in accordance with Section 15.2 by a Replacement Engine (where an Engine has suffered an Engine Total Loss) or in accordance with Section 15.6.2, Section 15.4.3 (by a temporary replacement engine) or paragraph 6.2 of Schedule 6;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)procure that any Engine which is not installed on the Aircraft or on another aircraft pursuant to Section 15.6.2, is properly and safely stored and insured free from Liens (other than Permitted Liens); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)from time to time upon Sublessor's request, procure that any person to whom possession of an Engine is given other than (i) the Engine Manufacturer in connection with maintenance it is performing on the Engine and (ii) any Person in connection with Engine pooling conducted in accordance with Section 15.6.2 hereof, acknowledges in writing either in a recognition of rights agreement or other acknowledgment or in the applicable lease or financing agreement (which by its terms expressly or effectively states for the benefit of

Sublease Agreement (MSN [__])

------

Sublessor and any Security Trustee), that such person shall at all times respect the rights and interests of Sublessor as owner and lessor, the Beneficiary as beneficial owner and the Security Trustee as mortgagee of such Engine and shall not seek to exercise any rights whatsoever in relation to such Engine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4.2Sublessor agrees, for the benefit of any lessor, mortgagee or secured party with respect to any engine installed on the Airframe (other than an Engine or a Replacement Engine installed on the Airframe in compliance with Section 15.2) that this Agreement shall not create any interest of Sublessor, Head Lessor, Security Trustee or any Leveraging Lender in any such engine and that none of Sublessor, Head Lessor, Security Trustee or any Leveraging Lender shall acquire or claim any right, title or interest in such engine by reason solely of such installation while such engine is owned by such lessor or subject to the security interest of such mortgagee or secured party. Following a request of Sublessee, and provided that such lessor, mortgagee or secured party has provided a recognition of rights agreement in accordance with Section 15.4.1(c) and Sublessee has complied with its obligations under this Section 15.4, Sublessor will confirm and acknowledge, and will request Head Lessor, any Security Trustee and any Leveraging Lender to confirm and acknowledge, the foregoing in writing to such lessor, mortgagee or secured party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4.3Notwithstanding the other provisions of this Section 15, Sublessee may install, or permit the installation of, any engine on the Aircraft by way of temporary replacement if (i) following an Engine Total Loss, or (ii), for so long as no Event of Default has occurred and is continuing, at any other time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)there is not available to Sublessee at the time and in the place that the engine is required to be installed on the Aircraft, a replacement engine complying with the requirements of Section 15.2.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)it would result in an unreasonable disruption of the operation of the Aircraft and/or the business of Sublessee to ground the Aircraft until an engine complying with the requirements of Section 15.2.1 becomes available for installation on the Aircraft; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Sublessee removes any such engine and replaces it with an Engine or a Replacement Engine as soon as practicable and in any event no later than the earlier of (i) the Termination Date or (ii) the Scheduled Termination Date.

15.5**Temporary Parts Removal and Interchange** 

Sublessee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5.1procure that no Part is at any time removed from the Aircraft unless it is promptly reinstalled or replaced by a replacement part in compliance with the provisions of Section 15.3 or in accordance with Section 15.5.4 by a temporary replacement part, provided that title to any Part removed from the Aircraft shall remain with the Head Lessor until it is replaced in accordance with the provisions of Section 15.3;

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5.2procure that any Part which is not installed on the Aircraft or on another aircraft pursuant to Section 15.5.3 is properly and safely stored and insured free from Liens (other than Permitted Liens); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5.3be permitted, for so long as no Event of Default has occurred and is continuing to install or permit the installation of any Part on another aircraft operated by Sublessee, provided always that neither the provisions of applicable law nor the provisions of any lease or other agreement or encumbrance to which such aircraft is subject prohibit such installation or may have the effect of divesting or impairing the title, rights or interests of Head Lessor as owner and lessor, the Beneficiary as beneficial owner and any Security Trustee as mortgagee in such Part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5.4Notwithstanding the other provisions of this Section 15, Sublessee may install, or permit the installation of, any part on the Aircraft by way of temporary replacement if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)there is not available to Sublessee at the time and in the place that the engine or part is required to be installed on the Aircraft, a replacement part complying with the requirements of Section 15.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)it would result in an unreasonable disruption of the operation of the Aircraft and/or the business of Sublessee to ground the Aircraft until a part complying with the requirements of Section 15.3 becomes available for installation on the Aircraft; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Sublessee removes any such part and replaces it with the Part replaced by it or with a replacement part complying with the requirements of Section 15.3 as soon as practicable and in any event no later than the earlier of (i) the Termination Date or (ii) the Scheduled Termination Date.

15.6**Pooling of Engines** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6.1Subject to Section 15.6.2, Sublessee shall not enter into or permit any pooling agreement or arrangement in respect of any Engine without the prior written consent of Sublessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6.2**Engines Pooling within Sublessee's Fleet** Notwithstanding anything to the contrary in this Agreement, an Engine may be removed from the Aircraft and installed on another aircraft of similar model which is operated under the ATSA in Sublessee's fleet subject to prior written consent of Sublessor and, subject to satisfaction at all relevant times of the following criteria:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Sublessor has title or leases to such other aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**[RESERVED]**;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Sublessee shall re-install the Engine onto the Aircraft or an Other Aircraft prior to the Termination Date (the cost of which shall be as set forth in the ATSA); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)following the occurrence of any Event of Default, unless an "Engine" (as defined in an Other Lease Agreement) has been

Sublease Agreement (MSN [__])

------

installed on the Aircraft as a replacement for such Engine, the Sublessee shall promptly, and in any event within [\*\*\*] days, following notice by Sublessor or Servicer arrange for the re-installation of any serviceable Engine which is not installed on the Aircraft onto the Aircraft or any Other Aircraft.

15.7**Equipment Changes**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.1Sublessee may, at its own expense, make or procure the making of such modifications, alterations, additions to and removals from the Aircraft after Delivery as Sublessee may desire for the proper operation or utilization of the Aircraft (each such modification, alteration, addition, or removal made after Delivery an "**Equipment Change**") provided that Sublessee shall not make any such Equipment Change without the prior written permission of Sublessor (not to be unreasonably withheld) where such Equipment Change would materially reduce or materially impair the value, utility or maintenance condition of the Aircraft, or reduce or impair the airworthiness of the Aircraft, or materially increase the cost of operating the Aircraft by a future operator after Redelivery, or invalidate any material warranty associated with or attached to the Aircraft, or invalidate the type certification of the Aircraft issued by the Aviation Authority, or any an expected cost of more than $[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.2Sublessor's consent is not required for the incorporation of an Equipment Change that is (i) a requirement of this Agreement (including the Redelivery Conditions), (ii) required by an Airworthiness Directive issued by the Aviation Authority, (iii) required by a mandatory requirement of the Aviation Authority, (iv) a requirement for operation under FAR Part 121, or (v) a requirement for operation in commercial airspace managed by or subject to the jurisdiction of the FAA (each, a "**Desirable Change**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.3Equipment Changes which are Minor Modifications to the Airframe shall be approved by the FAA. Equipment Changes which are Major Modifications to the Airframe shall be approved by the FAA and EASA. Equipment Changes to the Engines shall be approved by the FAA, the Engine Manufacturer and EASA. Notwithstanding the foregoing, subject to the prior written consent of Sublessor, Sublessee shall be permitted to incorporate an Equipment Change which is a Major Modification to the Airframe which is approved by the FAA only provided that not later than the earlier of the Termination Date or 12 months after incorporation of such Equipment Change, such Equipment Change is approved by EASA. Notwithstanding the foregoing, to the extent that any such Major Modification or Equipment Change to an Engine is approved by the FAA but not EASA or the Engine Manufacturer, as applicable, Sublessee shall seek the approval of Sublessor before making any such Equipment Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.4Unless otherwise agreed in writing, Sublessor may require Sublessee to remove any Equipment Change from the Aircraft other than a Desirable Change and restore the Aircraft to the condition it was in immediately prior to such Equipment Change (assuming the Aircraft was then in the condition required pursuant to the provisions of this Agreement) on the Termination Date.

Sublease Agreement (MSN [__])

------

15.8**Title to Engines and Parts**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.8.1Any Engine or Part at any time removed from the Aircraft shall remain the property of Head Lessor and subject to the Mortgage until such time as a replacement shall have been effected in accordance with the provisions of this Agreement and until title to such replacement has passed in accordance with applicable laws to Head Lessor and become subject to this Agreement and may be subject to any applicable Mortgage in accordance with the terms thereof, free of all Liens (other than Permitted Liens), whereupon title to the replaced Engine or Part shall pass to Sublessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.8.2Title to all Parts installed on the Aircraft, other than Parts installed or permitted to be installed on the Aircraft as a temporary replacement in accordance with this Agreement (whether by way of replacement or by way of an alteration, addition, change or modification to the Aircraft or otherwise) shall on installation and without any further formality vest in Head Lessor subject to this Agreement free and clear of all Liens (other than Permitted Liens) and may be subject to the Mortgage in accordance with the terms thereof. Sublessee shall, at Sublessor's expense, take all such steps and execute (or procure the execution of) all such documents as Head Lessor may require and which are necessary to ensure that title does so pass to Head Lessor under applicable law. Sublessee shall, upon Sublessor's request (on behalf of Head Lessor), provide evidence to Head Lessor's reasonable satisfaction that title has so passed to Head Lessor.

15.9**Inspection**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.9.1Sublessor and any person designated by Sublessor may (at Sublessor's risk and Sublessor's cost, save as provided below) at any time on at least [\*\*\*] Business Days' prior notice visit, survey and inspect the Aircraft, any Engine, any Part or the Aircraft Documents wherever the Aircraft may be located. Such survey and inspection shall be on a non-interference non-destructive basis for the purpose of valuation and for inspecting its condition and to ascertain that the Aircraft is being used and is being maintained and repaired in each case in accordance with the provisions of this Agreement or for the purpose of satisfying Sublessor in regard to proposed or executed repairs; provided that, so long as no Event of Default has occurred and is continuing, Sublessor shall be permitted to undertake no more than one inspection in any [\*\*\*] month period and such inspection (i) shall be at Sublessor's cost and expense, (ii) shall not involve the opening of any panels or bays, (iii) shall not unreasonably interfere with Sublessee's business or operational commitments, (iv) shall be performed at a mutually agreed time when the Aircraft is scheduled to be out of service long enough for Sublessor's inspection to be completed and (v) shall not include more than two (2) people. During such inspections, Sublessee will provide reasonable support to Sublessor. Sublessee shall pay to Sublessor on demand all reasonable and documented out of pocket costs and expenses incurred by Sublessor or its designee in connection with any such visit and/or survey and/or inspection conducted during the continuance of an Event of Default.

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.9.2Any material non-compliance with the requirements of this Agreement identified by the inspection or survey shall be subject to good faith discussions with Sublessee for a period of up to [\*\*\*] days and rectified by Sublessee as agreed by Sublessor and Sublessee (each acting reasonably) at Sublessee's expense as soon as reasonably practicable and in any event within [\*\*\*] days (or [\*\*\*] days in the case of any Engine or Engine LLP) or such longer period as may be mutually agreed following the conclusion of such good faith discussions, and Sublessor shall be entitled to re-inspect and/or re-survey the Aircraft, any Engine, any Part or the Aircraft Documents to ensure that any required corrective actions have been taken by Sublessee. Following agreement by Sublessor and Sublessee on the rectification of any material non-compliance, all reasonable and documented out of pocket costs and expenses actually incurred by Sublessor or its designee in connection with such re-inspection and/or re-survey shall be borne by the parties in accordance with the terms of the ATSA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.9.3Sublessor shall have no duty to carry out and no liability arising out of carrying out or failing to carry out any visit, survey or inspection. Sublessor and its agents or representatives shall comply with all standard policies and procedures related to safety and insurance of Sublessee in connection with any such visit, survey or inspection. Sublessor shall indemnify Sublessee in connection with any Losses incurred by Sublessee which result from a failure by Sublessor or any of its agents or representatives to comply with such policies and procedures.

15.10Aircraft Documents

Sublessee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10.1procure that accurate, complete and current records as required by the Aviation Authority and the requirements of Schedule 3 are kept of all Flight Hours, Cycles, APU Hours and APU Starts accumulated by the Aircraft, the Engines and the applicable Parts and of all maintenance, alterations and repairs carried out to or on the Aircraft (including all flights made by and of all maintenance, alterations and repairs carried out to or on the Engines and Parts while removed from the Aircraft) and ensure that such records comply with the recommendations of the Manufacturer (including under Sublessee's agreements with the Engine Manufacturer) and with the customary practices of major operators of cargo aircraft operating under FAR Part 121, including with respect to retention. Such records will form part of the Aircraft Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10.2subject to Section 15.10.7 below, procure that the Aircraft Documents are retained at the Records Location;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10.3**[RESERVED]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10.4**[RESERVED]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10.5procure that back to birth traceability records in compliance with Schedule 3 are obtained and retained in respect of all Life Limited Parts installed on the Aircraft;

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10.6maintain all Aircraft Documents in the English language and up to date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10.7not relinquish possession or control of the Aircraft Documents to any other person (except any Manufacturer and any Authorized Maintenance Provider to the extent of those of the Aircraft Documents it needs in the ordinary course of its business) without Sublessor's prior written consent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10.8at Sublessor's request, within a reasonable time provide a scanned copy to Sublessor of all records generated in respect of the Aircraft since Delivery save for scanned copies of records previously provided to Sublessor pursuant to this Section 15.10.8.

**16Insurances**

16.1**Sublessee to Maintain Insurances** At all times during the Sublease Period, Sublessee shall at its expense procure and maintain in full force and effect the Insurances, which shall be in accordance with customary industry practice in the international cargo aviation insurance market and on terms at least as favourable as insurances applicable to similar aircraft and engines in Sublessee's fleet on which Sublessee carries insurance and operated by Sublessee on the same or similar routes as operated by the Aircraft. The Insurances shall at all times be maintained through the London or New York insurance markets or in any other leading insurance markets. Insurers shall be of internationally recognized responsibility and rated A- or better by AM Best.

16.2**Insurance Requirements** Sublessor's current requirements for the Insurances are as specified in this Section 16 and Schedule 5 to this Agreement. Sublessor and Sublessee may agree on other requirements for the Insurances so that (i) the scope and level of cover is maintained in line with customary practice in the international cargo aviation insurance market and (ii) the interests of Sublessor and each other Indemnitee are, and continue to be, fully protected.

16.3[**RESERVED]**

16.4**Insurance Covenants** Sublessee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4.1comply with the terms and conditions of each policy of the Insurances and not do, consent or agree to any act or omission which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)invalidates or may invalidate the Insurances; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)renders or may render void or voidable the whole or any part of any of the Insurances; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)brings any particular liability within the scope of an exclusion or exception to the Insurances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4.2not take out, without the prior written approval of Sublessor, any insurance or procure any reinsurance in respect of the Aircraft other than those required under this Agreement which may adversely affect the scope of the coverage required hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4.3with respect to each renewal of the Insurances, provide to Sublessor and Head Lessor:

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)written confirmation (which may be by electronic mail) of completion of renewal prior to each expiry date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)certificates of insurance (and, if applicable, certificates of reinsurance) and broker's (and any reinsurance broker's) letter of undertaking in a form acceptable to Sublessor detailing the coverage and confirming compliance with the specified insurance requirements of this Agreement promptly after each renewal date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4.4**[RESERVED]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4.5provide any other insurance related information or assistance in respect of the Insurances as Sublessor may reasonably request.

16.5**Failure to Comply with Insurance Provisions** If at any time the Insurances required by this Agreement are no longer in full force and effect, Sublessee shall immediately ground or cause the Aircraft to be grounded until such time as the Insurances required hereby are once again in full force and effect, and each Indemnitee shall be entitled (but not bound), without prejudice to any other rights which Sublessor may have under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5.1to pay the premiums due or to take out and maintain insurances satisfactory to Sublessor or otherwise remedy Sublessee's failure in such manner (including to effect and maintain an "owner's interest" policy) as Sublessor thinks fit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5.2at any time while such failure is continuing, to require the Aircraft to remain at any airport or to proceed to and remain at an airport designated by Sublessor until such provisions are fully complied with to Sublessor's satisfaction.

Any sums expended by any Indemnitee in connection with the foregoing shall be due and payable by Sublessee within [\*\*\*] Business Days of receipt of a written invoice therefor.

16.6**Continuing Indemnity** Sublessee shall effect and maintain insurance after the Termination Date with respect to its liability under the indemnity in Section 5.7 of this Agreement until the earlier of [\*\*\*] years after the Termination Date or commencement of the next Airframe Heavy Maintenance Check with respect to the Aircraft, which insurance shall provide for each Indemnitee to be named as an additional insured. Sublessee's obligation under this Section 16.6 to maintain insurance after the Termination Date shall not be affected by Sublessee ceasing to be the lessee of the Aircraft or any of the Indemnitees ceasing to have an interest in the Aircraft.

**17Total Loss, Damage and Requisition** 

17.1Total Loss of the Aircraft

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1If a Total Loss of the Aircraft occurs before Delivery, this Agreement and the other Transaction Documents then in effect shall immediately terminate with respect to the Aircraft and, except as expressly stated in this Agreement or such other Transaction Documents, neither party shall have any further

Sublease Agreement (MSN [__])

------

obligation or liability under this Agreement other than pursuant to Section 5.7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.2If a Total Loss of the Aircraft occurs after Delivery, Sublessee shall pay the Agreed Value to Sublessor (or upon its request, to Head Lessor) on or before the earlier of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Business Day following receipt of an amount of insurance proceeds relating to such Total Loss in an amount at least equal to the Agreed Value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the date falling [\*\*\*] days after the Total Loss Date;

provided, that if a Total Loss of the Aircraft is not attributable to the acts or omissions of Sublessee, Sublessee's obligation to pay Agreed Value to Sublessor (or to Head Lessor, as applicable) shall be limited to the proceeds, if any, received by Sublessee from the insurance maintained by Sublessee in accordance with this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.3Upon irrevocable payment in full to Sublessor (or upon its request, to Head Lessor) of the Agreed Value and all other sums then due and payable to Sublessor under or pursuant to this Agreement, Sublessor shall (or shall procure Head Lessor to) transfer to the Sublessee or its designee, subject to the rights of any third parties (including any insurers and reinsurers), all Sublessor's (or Head Lessor's) rights to any Engines and/or Parts which were not installed on the Airframe or any Engine when the Total Loss occurred. Such transfer will be on an "as is where is" basis and without recourse or warranty except as to freedom from any Sublessor Lien, and Sublessor shall (or shall procure Head Lessor to) execute and deliver to Sublessee such bills of sale or other documents as Sublessee may reasonably request to evidence such transfer. Sublessee shall indemnify Sublessor (or Head Lessor) for any and all costs, expenses and Taxes incurred by Sublessor (or Head Lessor) in connection with such transfer (other than any costs, expenses or Taxes related to the removal of any Sublessor Lien).

17.2**Requisition** During any period of requisition for use or hire of the Aircraft, any Engine or any Part where such use or hire does not constitute a Total Loss (and it being acknowledged that the use of the Aircraft, any Engine or any Part pursuant to the CRAF Program does not constitute a Total Loss):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2.1the payments of Rental and other amounts payable under this Agreement shall not be suspended or abated either in whole or in part, and Sublessee shall not be released from any of its other obligations under this Agreement (other than operational obligations with which Sublessee is unable to comply solely by virtue of such requisition);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2.2Sublessor shall be entitled to any compensation paid by the requisitioning authority in respect of Aircraft, any Engine or any Part during the Sublease Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2.3Sublessee shall, as soon as practicable after the end of any such period of requisition, cause the Aircraft to be restored to the condition required by this Agreement; and

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2.4Sublessor shall be entitled to all compensation payable by the requisitioning authority in respect of any change in the structure, state or condition of the Aircraft arising during the period of requisition, and Sublessor shall apply such compensation in reimbursing Sublessee for the cost of complying with its obligations under this Agreement in respect of any such change, provided that, if any Event of Default has occurred and is continuing under this Agreement, Sublessor may apply such compensation in or towards settlement of any amounts owing by Sublessee under this Agreement and the other Transaction Documents.

**18[RESERVED]**

**19Events of Default** 

19.1**Events Of Default** The occurrence of any of the following events or circumstances at any time shall constitute an Event of Default and a material breach of, and repudiation of, this Agreement by Sublessee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.1**Failure to Pay** Sublessee shall fail to make any payment of Rental or Agreed Value when due hereunder, and such failure shall continue for [\*\*\*] Business Days after the relevant due date or Sublessee fails to make any other payment when due hereunder, and such failure shall continue for [\*\*\*] Business Days after Sublessee receives written notice of such failure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.2**Insurance** Sublessee fails to comply with any provision of Section 16 or Schedule 5 to this Agreement or any Insurances required to be maintained hereunder are cancelled or terminated, unless Sublessee has, prior to such cancellation or termination taking effect, grounded the Aircraft and obtained ground risks insurance cover in respect of the Aircraft on terms and conditions reasonably satisfactory to Sublessor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.3**Breach Of Agreement** (i) Sublessee fails to comply with its obligations under Section 11.2.10 of this Agreement and, provided that the continuation of the leasing of the Aircraft hereunder shall not (x) cause Sublessor, Beneficiary, Servicer or any Security Trustee to be liable for criminal sanctions or fines, (y) otherwise be illegal, or (z) involve any material risk of the detention, forfeiture or loss of the Aircraft, the Airframe or any Engine, such failure or breach continues for a period in excess of [\*\*\*] days after written notice thereof is given by Sublessor to Sublessee, or (ii) Sublessee fails to perform or observe in any material respect any other of the covenants, conditions, or agreements to be performed or observed by it under any Transaction Document and such failure or breach continues for a period in excess of [\*\*\*] days after written notice thereof is given by Sublessor to Sublessee; provided that Sublessee shall have an additional [\*\*\*] days to remedy such failure if Sublessor is reasonably satisfied that such failure or breach is capable of remedy and that Sublessee is diligently seeking to rectify such failure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.4**Misrepresentation** any representation or warranty made by Sublessee herein or in any other Transaction Document shall prove to have been incorrect in any respect when made or deemed to be made and such incorrectness has a materially adverse effect on the rights or interests of any

Sublease Agreement (MSN [__])

------

Indemnitee or the ability of Sublessee to perform its obligations under the Transaction Documents and the circumstances giving rise to the breach of such representation or warranty are not remedied to Sublessor's reasonable satisfaction within [\*\*\*] days after notice requiring remedy thereof has been given by Sublessor to Sublessee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.5**Cross Default** any event of default occurs and is continuing under any Other Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.6**Approvals** any consent, licence, certificate, authorisation or approval of or registration with or declaration to any Governmental Entity which is required to be maintained or obtained by Sublessee in order to perform its obligations under this Agreement or any other Transaction Document is not granted or is revoked, suspended, cancelled, withdrawn, terminated or not renewed, or otherwise ceases to be in full force and effect or is modified in a manner that could reasonably be expected to have a material adverse effect on Sublessee's ability to perform its material obligations under this Agreement and the other Transaction Documents and is not, as applicable, restored, replaced, returned, re-granted or renewed within [\*\*\*] Business Days or such lesser time period prescribed by the applicable Government Entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.7**Insolvency** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Sublessee shall commence any case, proceeding or other action:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)under any existing or future Law relating to bankruptcy, liquidation, moratorium, insolvency, examinership, administration, reorganization or other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)seeking appointment of a receiver, trustee, liquidator, custodian, ad-hoc proxy, judicial moratorium administrator or other similar official for it or for all or any substantial part of its assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Sublessee shall make a general assignment for the benefit of its creditors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)there shall be commenced against Sublessee any case, proceeding or other action of a nature referred to in clause (a) above which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)results in the entry of an order for relief or any such adjudication or appointment, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)remains undismissed, undischarged or unvacated for a period of [\*\*\*] days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)there shall be commenced against Sublessee any case, proceeding or other action seeking issuance of an order, judgment, warrant or

Sublease Agreement (MSN [__])

------

decree of appointment or sequestration, attachment or garnishment, confiscation, including special confiscation, expropriation, nationalization, requisition, execution, distraint or similar process against all or any substantial part of its assets which results in the entry of an order for any such relief which shall not have been vacated, discharged or stayed within [\*\*\*] days from the entry thereof

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Sublessee shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (a), (b), or (c) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Sublessee admits in writing its inability to pay its debts as they fall due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.8**Rights and Remedies** this Agreement shall cease to be a valid and enforceable agreement and in full force and effect for any reason due to any action or inaction of Sublessee otherwise repudiates the same; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.9**Suspension Sublessee** suspends substantially all of its operations other than in connection with a corporate transaction permitted pursuant to the Transaction Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.10**Delivery** Subject to the satisfaction of the Conditions Precedent, Sublessee fails to comply with its obligations under Section 5 to accept delivery of the Aircraft when tendered in accordance with the requirements of the Transaction Documents, subject to any applicable grace periods which may be agreed in connection with any delivery delay; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.11**Redelivery** Sublessee fails to redeliver the Aircraft in accordance with Section 20 on the last day of the Sublease Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.12**Transfer** Sublessee makes or permits any Lien over, assignment, encumbrance or transfer of, any Transaction Document or any interest in any Transaction Document or of the right to possession of the Aircraft, the Airframe, any Engine and/or any part of any thereof, except for Permitted Liens or as otherwise expressly permitted by this Agreement, and the circumstances giving rise to such breach are not remedied to Sublessor's satisfaction within [\*\*\*] days of occurrence, provided Sublessee continues to perform all of its obligations under the Transaction Documents during such period.

19.2**Remedies** On the occurrence of an Event of Default and at any time thereafter while an Event of Default is continuing (except that an Event of Default shall be incapable of being remedied once Sublessor has terminated the leasing of the Aircraft pursuant to this Agreement), Sublessor may, at its option, without notice to Sublessee to the extent permitted by applicable law and without prejudice to any other rights and remedies which Sublessor may have in consequence thereof, in each case subject to compliance with applicable law (including the Uniform Commercial Code as in effect in the State of New York) and further provided that during any period the Aircraft is subject to the CRAF Program and is in possession of or being operated under the direction of the government of the United States of America, Sublessor shall not, on account of any Event of Default, be entitled to exercise or pursue any of

Sublease Agreement (MSN [__])

------

the powers, rights or remedies described in Section 19.2 in such manner as to limit Sublessee's control under this Agreement of the Aircraft, unless at least [\*\*\*] days' (or such other period as may then be applicable under the CRAF Program of the government of the United States of America) prior written notice of default hereunder has been given by Sublessor by registered or certified mail to Sublessee with a copy addressed to the Contracting Office Representative or other appropriate person for the Air Mobility Command of the United States Air Force under any contract with Sublessee relating to the Aircraft:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.1by notice to Sublessee and with immediate effect terminate Sublessee's right to lease the Aircraft (but without prejudice to the continuing obligations of Sublessee that survive this Agreement), whereupon all Sublessee's rights under this Agreement shall cease; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.2proceed by appropriate court action or actions to enforce performance of this Agreement and the other Transaction Documents and/ or to recover damages sustained by Sublessor because of Sublessee's breach of the applicable Transaction Documents; and/or:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.3either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)to the extent permitted by applicable law, take possession of the Aircraft, for which purpose Sublessor may enter any premises belonging to, or in the occupation of, or under the control of, Sublessee where the Aircraft may be located, or cause the Aircraft to be redelivered to Sublessor at the Redelivery Location (or such other location as Sublessor may require); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)by serving notice require Sublessee to redeliver the Aircraft to Sublessor at the Redelivery Location (or such other location as Sublessor may require) and at the time designated therein.

19.3**Sale or Re-lease** On the occurrence of an Event of Default and at any time thereafter while an Event of Default is continuing (except that an Event of Default shall be incapable of being remedied once Sublessor has terminated the leasing of the Aircraft pursuant to this Agreement), Sublessor may sell or re-lease or otherwise deal with the Aircraft at such time and in such manner and on such terms as Sublessor, in its absolute discretion, considers appropriate, free and clear of any interest of Sublessee, as if this Agreement had never been entered into, in each case subject to compliance with applicable law.

19.4**Deregistration** On the occurrence of an Event of Default and at any time thereafter while an Event of Default is continuing (except that an Event of Default shall be incapable of being remedied once Sublessor has terminated the leasing of the Aircraft pursuant to this Agreement) and subject to compliance with applicable law, Sublessor shall be entitled to take all steps necessary to effect (if applicable) deregistration of the Aircraft and the export of the Aircraft from the country where the Aircraft is at such time situated, together with any other steps necessary to enable the Aircraft to be redelivered to Sublessor in accordance with the provisions of this Agreement. Sublessee hereby irrevocably by way of security for its obligations under this Agreement appoints Sublessor as attorney for Sublessee to execute and deliver any documentation and to do any act or thing required in connection with the foregoing.

Sublease Agreement (MSN [__])

------

19.5**Default Indemnity** If an Event of Default occurs, subject to the terms of the ATSA, Sublessee shall indemnify Sublessor and each other Indemnitee on demand against any Loss which such Indemnitee may sustain or incur directly or indirectly as a result thereof, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5.1any Loss (including loss of profit) suffered by such Indemnitee because of Sublessor's inability to place the Aircraft on lease with another lessee on terms as favourable to Sublessor as those contained in this Agreement or any Loss suffered in delay in such placement, or because the use, if any, to which Sublessor is able to put the Aircraft on its return to Sublessor, or the funds arising on a sale or other disposal of the Aircraft, is not as profitable to Sublessor as performance of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5.2interest at the Default Rate on any Overdue Sums until the same are paid in full; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5.3any Loss sustained or incurred by Sublessor in or as a result of exercising any of its rights and/or remedies pursuant to Section 19.2 or as a result of Sublessee's failure to redeliver the Aircraft on the date, at the location and in the condition required by this Agreement.

In calculating Sublessor's damages hereunder, upon the occurrence of an Event of Default, all Rental and other amounts which would have been due hereunder during the period commencing on the Delivery Date and ending on the Scheduled Termination Date if an Event of Default had not occurred, together with amounts, if any, scheduled to be paid by a new lessee after any re-lease of the Aircraft, will be calculated on a present value basis using a discount rate of [\*\*\*] percent ([\*\*\*]%) per annum, discounted to the Scheduled Termination Date.

19.6**Attorney** Sublessee hereby designates and appoints Sublessor and its designees, assignees or agents as its attorney-in-fact, irrevocably and with power of substitution, with authority to take any and all action in the name of Sublessee under this Agreement if an Event of Default has occurred and at any time thereafter while an Event of Default is continuing (except that an Event of Default shall be incapable of being remedied without Sublessor's written consent once Sublessor has terminated the leasing of the Aircraft pursuant to this Agreement) and to do all other acts and things necessary and advisable in the sole discretion of Sublessor to carry out and enforce the Transaction Documents in accordance with applicable law. This power of attorney (being coupled with an interest) is irrevocable while any obligations of Sublessee are owed under any of the Transaction Documents. Without limiting the generality of the foregoing or any other right of Sublessor under this Agreement, during the continuance of an Event of Default, Sublessor shall have the sole right and power to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.6.1settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to or pertaining to the Aircraft, the Airframe, any Engine, any Part or this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.6.2make proof of loss, appear in and prosecute any action arising from or in respect of the Insurances and settle, adjust or compromise any claims for loss, damage or destruction under, or take any other action in respect of any such Insurances.

Sublease Agreement (MSN [__])

------

**20Redelivery of the Aircraft** 

20.1**Agreement to Redeliver** On the Termination Date, Sublessee shall (unless a Total Loss of the Aircraft has occurred), at Sublessor's expense (except for expenses that are allocated to Sublessee pursuant to the ATSA), redeliver the Aircraft and the Aircraft Documents to Sublessor at the Redelivery Location in accordance with the procedures and in compliance with the conditions set out in Schedule 6. Promptly on Sublessor's request, and without prejudice to any obligations of Sublessee under this Agreement that are expressed to survive redelivery of the Aircraft to Sublessor, Sublessee shall execute and deliver a document in form suitable for filing at the Aviation Authority releasing the Aircraft from this Agreement.

20.2**Condition on Redelivery** At the time of Redelivery:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.1the Aircraft shall, at Sublessor's expense to the extent set forth in Section 20.1 above, be in compliance with this Agreement and the Redelivery Conditions, subject to (i) any Minor Discrepancies, and (ii) any waivers described in Section 5.6.2 or in Section 1 of Schedule 2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.2the Aircraft shall be free and clear of all Liens (except for the respective rights of Owner Trustee, Beneficiary and Sublessor as provided in the Transaction Documents, the Head Lease, the Participation Agreement and the Trust Agreement, Sublessor Liens and any Liens falling under paragraphs (h) and (i) of the definition of "Permitted Liens");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.3Sublessee shall cooperate with Sublessor's efforts with respect to the clearance of the Aircraft through customs from the jurisdiction in which the State of Registration is located; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.4Sublessee shall cooperate with Sublessor's efforts with respect to the accomplishment of such customs formalities as are necessary in the jurisdiction where the Redelivery Location is located such that Sublessor shall not incur any delay in exporting the Aircraft from the Redelivery Location.

20.3**Rectification on Non-Compliance** If, at the time of Final Redelivery Inspection, the Aircraft does not fully comply with the Redelivery Conditions or Sublessee (for any reason not due to the gross negligence or wilful misconduct of Sublessor or any failure by Sublessor to perform any of its respective obligations under the Transaction Documents) fails to make the Aircraft available to Sublessor on a timely basis for inspection and redelivery pursuant to Section 20.1 and Schedule 6, the Sublease Period shall be extended until such time as the Aircraft has been redelivered to Sublessor in full compliance with the provisions of this Agreement, and during such extension period and until the Aircraft has been tendered for redelivery to Sublessor in full compliance with the provisions of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3.1At Sublessor's expense to the extent set forth in Section 20.1 above, Sublessee shall work diligently to rectify such non-compliance (and shall not use the Aircraft in flight operations other than for the purpose of any demonstration flight or ferry flight necessary for confirming compliance with the Redelivery Conditions);

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3.2all Sublessee's obligations under this Agreement and all terms and conditions of this Agreement shall remain in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3.3Sublessee shall pay Base Rental to Sublessor at the rate per month (calculated on a daily basis) equal to (i) the monthly Base Rental payments set out in Section 7.2 for the first [\*\*\*] days of the extension period, or (ii) if the non-compliance arises directly as a result of an Event of Force Majeure (except where caused by any act or omission of Sublessee), the monthly Base Rental payments set out in Section 7.2 for the first [\*\*\*] days of the extension period, provided in each case that Sublessee is working diligently to rectify the non-compliance during such [\*\*\*] or [\*\*\*] day period (as applicable); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3.4from the end of any such [\*\*\*] or [\*\*\*] day period (as applicable) as is referred to in Section 20.3.3, Sublessee shall pay Base Rental to Sublessor at the rate per month equal to the monthly Base Rental payments in Section 7.2 plus [\*\*\*]%.

Any such extension period shall not prejudice Sublessor's right to treat such non-compliance or failure as an Event of Default if at the end of such extension period the Aircraft is not in compliance with the requirements hereof, and in such event Sublessor shall be entitled to enforce any and all rights and remedies available to Sublessor in respect thereof under, or pursuant to, this Agreement or applicable law. Without limiting the generality of the foregoing, Sublessee's obligations to pay Base Rental under Sections 20.3.3 and 20.3.4 shall be without prejudice to Sublessor's rights to terminate the leasing of the Aircraft hereunder and to indemnification pursuant to Section 19.5.

20.4**Sublessor Option** Sublessor may elect at any time to accept redelivery of the Aircraft notwithstanding Sublessee's non-compliance with this Section 20 and/or Schedule 6, in which event Sublessee shall indemnify Sublessor for its properly incurred costs to put the Aircraft into the condition required by this Agreement in accordance with the provisions of the ATSA.

20.5**Deregistration** On Redelivery, Sublessee shall, upon Sublessor's request, provide Sublessor with all reasonably requested assistance and cooperation (including any documents required) in relation to the deregistration of the Aircraft from the register of aircraft maintained by the Aviation Authority.

20.6**Redelivery** Acknowledgment Provided that Sublessee has complied with its obligations under this Agreement, following Redelivery of the Aircraft to Sublessor at the Redelivery Location, Sublessor shall deliver to Sublessee an acknowledgment substantially in the form of Appendix C confirming that Sublessee has redelivered the Aircraft to Sublessor.

20.7**[RESERVED]**

20.8**Further Provisions** If Sublessor notifies Sublessee in writing no later than [\*\*\*] days prior to the Termination Date that it wishes (at its cost) to incorporate additional works into the Final Redelivery Check, Sublessee shall, in good faith and at Sublessor's sole cost and expense (except as provided in the ATSA), use its commercially reasonable efforts to incorporate such additional works into the Final Redelivery Check and shall consult with Sublessor in relation to such additional

Sublease Agreement (MSN [__])

------

works, provided that if the Final Redelivery Check downtime period will increase as a result of incorporating such additional works, Sublessee shall not be obliged to pay Base Rental during any such additional period of downtime to the extent directly attributable to the incorporation of such additional works.

**21Acknowledgments and Disclaimers**

21.1SUBLESSEE EXPRESSLY ACKNOWLEDGES AND AGREES THAT, BEFORE THE AIRCRAFT IS TENDERED FOR DELIVERY TO SUBLESSEE UNDER THIS AGREEMENT, THE AIRCRAFT, ENGINES, PARTS AND AIRCRAFT DOCUMENTS WILL HAVE BEEN FULLY INSPECTED BY SUBLESSEE AND/OR ITS AGENTS AND BEEN FOUND TO BE SATISFACTORY TO SUBLESSEE IN ALL RESPECTS AND SATISFY THE DELIVERY CONDITIONS (SAVE FOR ANY MINOR DISCREPANCIES) AND THAT THE CONDITION OF THE AIRCRAFT, ENGINES, PARTS AND AIRCRAFT DOCUMENTS FROM DELIVERY SHALL BE THE SOLE RESPONSIBILITY OF SUBLESSEE AND DELIVERY BY SUBLESSEE TO SUBLESSOR OF THE ACCEPTANCE CERTIFICATE SHALL BE CONCLUSIVE PROOF THEREOF.

21.2SUBLESSEE FURTHER EXPRESSLY ACKNOWLEDGES AND AGREES THAT THE AIRCRAFT SHALL BE LEASED AND DELIVERED UNDER THIS AGREEMENT IN AN "AS IS WHERE IS" CONDITION:

SUBJECT IN EACH CASE TO THE PROVISO FOLLOWING SECTION 21.2.5,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.1SUBLESSOR SHALL NOT HAVE ANY LIABILITY IN RELATION TO, AND SUBLESSOR HAS NOT, AND SHALL NOT BE DEEMED TO HAVE, MADE OR GIVEN (WHETHER BY VIRTUE OF HAVING DONE OR FAILED TO DO ANY ACT, OR HAVING ACQUIRED OR FAILED TO ACQUIRE ANY STATUS UNDER OR IN RELATION TO THIS AGREEMENT OR OTHERWISE), ANY CONDITION, WARRANTY, REPRESENTATION OR GUARANTEE WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE AIRCRAFT, ANY ENGINE OR ANY PART, INCLUDING ANY CONDITIONS, WARRANTIES, REPRESENTATIONS OR GUARANTEES AS TO ITS DESCRIPTION, AIRWORTHINESS, SERVICEABILITY, SATISFACTORY QUALITY, MERCHANTABILITY, SUITABILITY, FITNESS FOR PURPOSE OR USE, VALUE, CONDITION, DESIGN, FREEDOM FROM INFRINGEMENT OF PATENT OR OTHER PROPRIETARY RIGHTS, COMPLIANCE WITH SPECIFICATIONS, DURABILITY, SUITABILITY, PERFORMANCE OR OPERATION OR CONDITIONS, OR AS TO THE QUALITY OF MATERIALS OR WORKMANSHIP, THE ABSENCE OF LATENT OR OTHER DEFECTS (WHETHER DISCOVERABLE OR NOT) OR AS TO ANY OTHER MATTER WHATSOEVER EXPRESS OR IMPLIED, INCLUDING WARRANTIES, REPRESENTATIONS OR GUARANTEES ARISING OUT OF CUSTOMARY TRADE USAGE OR PRIOR COURSE OF DEALING; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.2SUBLESSOR SHALL NOT HAVE ANY OBLIGATION OR LIABILITY WHATSOEVER TO SUBLESSEE, WHETHER ARISING IN CONTRACT OR IN TORT, AND WHETHER ARISING BY

Sublease Agreement (MSN [__])

------

REFERENCE TO NEGLIGENCE OR STRICT LIABILITY OF SUBLESSOR OR OTHERWISE, FOR:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)ANY LIABILITY, LOSS OR DAMAGE CAUSED OR ALLEGED TO BE CAUSED DIRECTLY OR INDIRECTLY BY THE AIRCRAFT OR ANY ENGINE OR ANY PART OR BY ANY INADEQUACY THEREOF OR DEFICIENCY OR DEFECT THEREIN OR BY ANY OTHER CIRCUMSTANCE IN CONNECTION THEREWITH;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)THE USE, OPERATION OR PERFORMANCE OF THE AIRCRAFT OR ANY RISKS RELATING THERETO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)ANY INTERRUPTION OF SERVICE, LOSS OF BUSINESS OR ANTICIPATED PROFITS OR ANY OTHER DIRECT, INDIRECT OR CONSEQUENTIAL LOSS OR DAMAGE WHATSOEVER AND HOWSOEVER CAUSED; OR

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)THE DELIVERY, OPERATION, SERVICING, MAINTENANCE, REPAIR, IMPROVEMENT OR REPLACEMENT OF THE AIRCRAFT, ANY ENGINE OR ANY PART; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.3SUBLESSEE HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES AS BETWEEN ITSELF AND SUBLESSOR THE BENEFIT OF ANY CONDITIONS, WARRANTIES, REPRESENTATIONS OR GUARANTEES (EXPRESS OR IMPLIED) ON THE PART OF SUBLESSOR AND ANY CLAIMS OR ACTIONS IT MIGHT HAVE AGAINST SUBLESSOR HOWSOEVER AND WHENEVER ARISING AT ANY TIME IN RESPECT OF OR OUT OF OR IN ANY WAY CONNECTED WITH ANY OF THE MATTERS REFERRED TO IN THIS SECTION 21; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.4EACH OF SUBLESSOR AND SUBLESSEE AGREE THAT NONE OF SUBLESSEE, SUBLESSOR NOR ANY INDEMNITEE SHALL BE ENTITLED TO RECOVER, AND HEREBY DISCLAIMS AND WAIVES ANY RIGHT THAT IT MAY OTHERWISE HAVE TO RECOVER FOR INTERRUPTION OF SERVICE, LOSS OF BUSINESS, LOST PROFITS OR REVENUES OR CONSEQUENTIAL DAMAGES (AS DEFINED IN SECTION 2A-250 OF THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN THE STATE OF NEW YORK OR AS OTHERWISE DEFINED) OR ANY SPECIAL OR INDIRECT DAMAGES AS A RESULT OF ANY BREACH OR ALLEGED BREACH BY ANY PERSON (INCLUDING ANY INDEMNITEE) OF ANY OF THE AGREEMENTS, REPRESENTATIONS OR WARRANTIES CONTAINED IN THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.5SUBLESSEE AND SUBLESSOR ACKNOWLEDGE AND AGREE THAT THIS SECTION 21 HAS BEEN THE SUBJECT OF DISCUSSION AND NEGOTIATION AND IS FULLY UNDERSTOOD BY THE PARTIES AND THAT THE BASE RENTAL PAYMENTS AND THE OTHER

Sublease Agreement (MSN [__])

------

PAYMENTS AND MUTUAL AGREEMENTS OF THE PARTIES HEREIN WERE ARRIVED AT HAVING TAKEN INTO CONSIDERATION THE PROVISIONS OF THIS SECTION 21 SPECIFICALLY, INCLUDING THE ACKNOWLEDGMENTS, AGREEMENTS AND WAIVERS BY SUBLESSEE AND SUBLESSOR SET FORTH IN THIS SECTION 21;

PROVIDED THAT, OTHER THAN AS PROVIDED IN SECTION 21.2.4, NOTHING SET FORTH IN THIS SECTION 21 SHALL DEROGATE FROM THE REPRESENTATIONS, WARRANTIES AND COVENANTS MADE BY SUBLESSEE, SUBLESSOR OR ANY INDEMNITEE PURSUANT TO ANY TRANSACTION DOCUMENT OR ANY UNDERTAKINGS OF SUBLESSEE OR SUBLESSOR IN THE ACCEPTANCE CERTIFICATE.

**22Assignment and Transfer** 

22.1NO ASSIGNMENT BY SUBLESSEE. EXCEPT AS PERMITTED BY THE TRANSACTION DOCUMENTS, SUBLESSEE WILL NOT ASSIGN, DELEGATE OR OTHERWISE TRANSFER (VOLUNTARILY, INVOLUNTARILY, BY OPERATION OF LAW OR OTHERWISE) ANY OF ITS RIGHTS OR OBLIGATIONS UNDER THIS SUBLEASE OR CREATE OR PERMIT TO EXIST ANY SECURITY INTEREST OTHER THAN ANY PERMITTED LIEN OVER ANY OF ITS RIGHTS UNDER THIS SUBLEASE, AND ANY ATTEMPT TO DO SO SHALL BE NULL AND VOID.

22.2Assignment by Sublessor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2.1Sublessor may, at its own expense and without the prior consent of Sublessee, assign or transfer all of its rights and obligations under this Sublease to (a) any Affiliate of Sublessor at any time or (b) any Person who is not an Affiliate of Sublessor to whom the ATSA is assigned in connection with any merger, reorganization, sale of all or substantially all of its assets or any similar transaction upon providing prior written notice of such assignment to Sublessee, provided that such assignment or transfer does not increase Sublessee's costs or obligations, it being understood and agreed that any assignment or transfer by Sublessor to any of its Affiliates will not be deemed to increase Sublessee's costs or obligations. Upon: (a) any such assignment becoming effective; and (b) the assignee assuming all of Sublessor's obligations under this Sublease, Sublessor will be released of any further obligations under this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2.2After written notice from Sublessor of any assignment or transfer of all or any of Sublessor's rights and obligations under this Sublease, and at Sublessor's expense, Sublessee will, as soon as practicable, execute any agreements or other instruments that may be reasonably requested by Sublessor in order to allow, give effect to, or perfect any assignment or transfer of Sublessor's rights and obligations under this Sublease.

**23Illegality**

23.1Subject to Section 28.3, if (i) it is or becomes unlawful in any jurisdiction for Sublessor to give effect to any of its obligations under this Agreement, or continue to perform or (ii) it is or becomes unlawful in any jurisdiction for Sublessee to perform

Sublease Agreement (MSN [__])

------

any of its obligations under this Agreement or any of the other Transaction Documents, any such obligations cease to be in whole or in part legal, valid and enforceable in accordance with the terms thereof or any Transaction Document ceases to be in full force and effect , Sublessor or Sublessee may, by written notice to the other, terminate the leasing of the Aircraft hereunder and Sublessee shall forthwith redeliver the Aircraft to Sublessor in accordance with Section 20. Such termination shall take effect on the latest date on which Sublessor or Sublessee is permitted to continue such leasing and such obligations without being in breach of applicable law or, as the case may be, the date on which Sublessee's obligations under the relevant Transaction Document ceases to be in full force and effect. Without prejudice to the foregoing, Sublessor and Sublessee will consult in good faith up to the date on which such termination takes effect as to any steps which may be taken to restructure the transaction to avoid such unlawfulness or unenforceability, but shall be under no obligation to take any such steps. The costs of any such restructuring shall be shared equally by Sublessor and Sublessee.

**24[RESERVED]**

**25Further Assurance** 

Each party hereto agrees from time to time to do and perform such other and further acts and execute and deliver any and all such other instruments as may be required by law or reasonably requested by the other party to establish, maintain and protect the rights and remedies of each party and to carry out and effect the intent and purpose of this Agreement.

**26[RESERVED]**

**27Miscellaneous Provisions** 

27.1**Time of the Essence** The time stipulated in this Agreement for payments by either party and performance by the parties of their respective obligations under this Agreement shall, subject only in the case of Sublessee's obligations, to any periods of grace specified in this Agreement to apply before non-performance becomes an Event of Default, be of the essence of this Agreement.

27.2**No Waiver** The rights, powers and remedies of the parties provided for in this Agreement and the other Transaction Documents are cumulative and not (nor to be construed so as to be) exclusive of any rights, powers or remedies provided by law. No failure by either of the parties to exercise nor any delay on the part of either of the parties in exercising any right, power or remedy provided for in this Agreement and the other Transaction Documents or by law shall be or be construed to be a waiver thereof nor shall any single or partial exercise of any such right, power or remedy preclude any further or other exercise of the same right, power or remedy or any exercise of any other such right, power or remedy.

27.3**Survival** The obligations (including without limitation all indemnities) of Sublessee and Sublessor which arise or are attributable to circumstances occurring during the Sublease Period shall survive and remain in full force and effect, notwithstanding the expiration or termination of this Agreement and/or the leasing of the Aircraft hereunder for any reason whatsoever.

Sublease Agreement (MSN [__])

------

27.4**Sublessor's Right to Remedy** If Sublessee fails at any time to comply with any provision of this Agreement, Sublessor may (but without being obliged to do so or responsible for so doing and without prejudice to the ability of Sublessor to treat such non-compliance as a Default or an Event of Default) itself comply or perform or procure compliance and performance with such provision either in the name of Sublessor or in the name and on behalf of Sublessee whereupon, except to the extent that Sublessee is contesting in good faith such compliance or performance or the costs and expenses related to such compliance and performance, and subject to the provisions of the ATSA, Sublessee shall pay and indemnify Sublessor within [\*\*\*] Business Days of Sublessor's reasonably detailed invoice for all amounts, costs and expenses expended by Sublessor in connection therewith. For the purposes of this Section 27.4, Sublessee hereby irrevocably appoints Sublessor as Sublessee's agent, said agency being coupled with an interest, to take such action and incur such expenses as are permitted herein.

27.5Leveraging Parties Sublessee understands and acknowledges that: (a) the Sublessor is party to the Head Lease whereby it leases the Aircraft from the Head Lessor; (b) the Aircraft may be subject to one or more security interests from time to time as the result of Head Lessor or an Affiliate of Head Lessor borrowing funds from one or more persons, and (c) as a result, Head Lessor may be required to collaterally assign part or all of its interest in the Aircraft and in and under this Agreement to secure the performance of its repayment and other obligations (any such assignment, a "Leveraging Transaction") owing to Security Trustee (any other Person that is to benefit from such security interest in favour of the Security Trustee, whether a lender, noteholder, swap provider or agent or trustee acting on behalf of lenders, noteholders or swap providers, a "Leveraging Lender"). Sublessee agrees that, upon the written direction of Sublessor and provided that reasonable notice has been provided, it will consent to any such collateral assignment of Head Lessor's or Sublessor's rights under this Agreement if such collateral assignment is in form and substance satisfactory to Sublessee acting reasonably, except that Sublessor will (or will procure Head Lessor to) reimburse Sublessee for any reasonable and documented out-of-pocket expenses associated with complying with this Section 27.5 (including Sublessee's attorney's fees) and such collateral assignment (including such consent) will not increase Sublessee's obligations or risks or reduce Sublessee's rights under this Agreement or under the ATSA and will include a quiet enjoyment undertaking on terms consistent with the terms of Section 11 of this Agreement from any Security Trustee and Leveraging Lender. Head Lessor, Owner, any Security Trustee and any Leveraging Lenders shall be third party beneficiaries of the terms of this Agreement.

**28Miscellaneous**

28.1**Entire Agreement** This Agreement including its Schedules and Appendices hereto and the other Transaction Documents, constitute the entire understanding and agreement of the Parties regarding the transaction described herein, and it supersedes and replaces all previous agreements, understandings, commitments or representations, whether oral or written.

28.2**Variation of Terms** This Agreement may not be modified or amended in any way except by a subsequent written amendment executed by authorized representatives of both parties.

Sublease Agreement (MSN [__])

------

28.3**Severability of Provisions** Any applicable binding provision of this Agreement or any Transaction Document, which is prohibited or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provisions in any other jurisdiction.

28.4**English Language** All notices and documents to be given under this Agreement must be in English. If they are not in English, they must be given with a certified English translation. If there is any difference between the English version of this Agreement and any version in any other language, the English version will prevail.

28.5**Counterparts** This Agreement may be executed by the Parties in separate counterparts, each of which when executed and delivered shall be an original of this Agreement, but all such counterparts shall together constitute one and the same Agreement. Any executed version delivered via electronic mail ("PDF" format) or electronic signature (through an e-signing platform) shall be binding to the same extent as an original. Any Party who delivers such an executed version agrees to subsequently deliver an original counterpart to any Party that requests it.

28.6**Notices.** Unless otherwise expressly specified or permitted by the terms hereof, all notices, requests, demands, authorizations, directions, consents or waivers required or permitted under the terms and provisions of this Agreement shall be in English and in writing, and given by United States of America registered or certified mail, return receipt requested, postage prepaid, overnight courier service or e-mail, and any such notice shall be effective when received (or, if delivered by e-mail, upon completion of transmission and confirmation by the sender (by a telephone call to a representative of the recipient or by machine confirmation) that such transmission was received) and addressed as follows:

if to Sublessor:

Amazon.com Services LLC

410 Terry Avenue

North Seattle, WA 98109-5210

Attention: Vice President, Global Air

With a copy to:

(same address)

Email: <u>contracts-legal@amazon.com</u>

if to Sublessee:

Hawaiian Airlines, Inc.

3375 Koapaka St., Suite G350

Honolulu, Hawaii 96819

Attention: Chief Financial Officer

Facsimile: (808) 840-8369

Phone: (808) 835-3700

With a copy to:

(same address)

Attention Chief Legal Officer

Facsimile: (808) 840-8369

Sublease Agreement (MSN [__])

------

Any party, by notice to the other parties hereto, may designate different addresses for subsequent notices or communications. Whenever the words "notice" or "notify" or similar words are used herein, they mean the provision of formal notice as set forth in this Section 28.6.

**29Servicer** 

Sublessee acknowledges that the Head Lessor has appointed [\*\*\*] as servicer (the "**Servicer**") to act as lease manager and servicer in respect of the Aircraft and this Agreement and the other Transaction Documents. Notwithstanding anything to the contrary contained in this Agreement or any other Transaction Document, Sublessor confirms that the Servicer shall not at any time have or incur obligations or liabilities to Sublessee under or in connection with this Agreement or the other Transaction Documents or otherwise in relation to the Aircraft. Sublessee shall not be liable for any fees, costs or expenses of Servicer, and the obligations and risks of Sublessee shall not be increased, and the rights of Sublessee shall not be decreased, by virtue of Servicer's involvement in the Aircraft or this Agreement and the other Transaction Documents.

**30Governing Law** 

30.1**Governing Law** Any claim, controversy or dispute arising out of or related to this Agreement or any Transaction Documents, and the relationship of the Parties, shall be governed and construed in accordance with the laws of the State of New York, without giving effect to any choice or conflict of law provision or rule that would cause the application of laws of any other jurisdiction.

**31Jurisdiction** 

31.1**Submission To Jurisdiction** Each of Sublessor and Sublessee irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind whatsoever against any other party in any way arising from or relating to this Agreement or any Transaction Document and all contemplated transactions, in any forum other than the United States District Court for the Southern District of New York or, if such court does not have subject matter jurisdiction, the courts of the State of New York sitting in the Borough of Manhattan. Each of Sublessor and Sublessee irrevocably and unconditionally submits to the exclusive jurisdiction of such courts and agrees to bring any such action, litigation or proceeding only in the United States District Court for the Southern District of New York or, if such court does not have subject matter jurisdiction, the courts of the State of New York sitting in the Borough of Manhattan. Each party agrees that a final judgment in any such action, litigation or proceeding is conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

31.2Each OF SUBLESSOR AND SUBLESSEE irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any legal action, proceeding, cause of action or counterclaim arising out of or relating to this Agreement or any TRANSACTION Documents, including any

Sublease Agreement (MSN [__])

------

appendices attached to this Agreement or any TRANSACTION Document, or the transactions contemplated hereby.

31.3**Waiver of Objection Each of Sublessor and Sublessee irrevocably:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.3.1waives any objection which it may have now or hereafter to the above nominated courts on grounds of inconvenient or inappropriate forum or otherwise as regards proceedings on connection with this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.3.2waives any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement brought in the above nominated courts.

31.4**Manner of Service** Without prejudice to any other mode of service, each of Sublessee and Sublessor consents to service of process by facsimile or prepaid mailing by air mail, certified or registered mail of a copy of the process to the other at the facsimile number or address, as applicable, set forth in this Agreement or as otherwise notified to the other pursuant to this Agreement.

31.5**Submission Non-Exclusive** Notwithstanding the above, any party to this Agreement may at any time seek interim relief or provisional remedies, or similar relief, from any court of competent jurisdiction in connection with the exercise of remedies while the Aircraft is not located in the United States of America and an Event of Default or material breach by either party hereto is continuing.

31.6**Waiver of Immunity** To the extent that any party hereto or any of its properties has or may hereafter acquire any right of immunity, whether characterized as sovereign immunity or otherwise, and whether under the United States Foreign Sovereign Immunities Act of 1976 (or any successor legislation) or otherwise, from any legal proceedings, whether in the United States of America or elsewhere, to enforce or collect upon any Transaction Documents to which it is a party, including, without limitation, immunity from suit or service of process, immunity from jurisdiction or judgment of any court or tribunal or execution of a judgment, or immunity of any of its property from attachment prior to any entry of judgment, or from attachment in aid of execution upon a judgment, such party hereby irrevocably and expressly waives any such immunity, and agrees not to assert any such right or claim in any such proceeding, whether in the United States of America or elsewhere.

**32Brokers**

32.1**No Broker** Each of the parties hereby represents and warrants to the other that it has not paid, agreed to pay or caused to be paid directly or indirectly in any form, any inducement, commission, percentage, contingent fee, brokerage or other similar payments of any kind, whether lawful or unlawful, in connection with the establishment or operation of this Agreement to any person (other than fees payable to legal advisers and, in the case of Sublessor only, to the Servicer).

32.2**Indemnity** Each party agrees to indemnify and hold the other harmless from and against any and all claims, suits, damages, costs and expenses asserted by any agent, broker or other third party for any commission or compensation of any nature whatsoever based upon this Agreement or any other Transaction Document or the Aircraft, if such claim, suit, damage, cost or expense arises out of any breach by the

Sublease Agreement (MSN [__])

------

indemnifying party, its employees or agents of Section 32.1. Each party further agrees to indemnify and hold the other harmless from and against any and all civil and (to the extent legally permitted) criminal Losses which the other party may suffer or incur as a consequence of any action taken by such indemnifying party, or for which such indemnifying party is otherwise, directly or indirectly, responsible which makes any representation of such indemnifying party in Section 32.1 less than entirely accurate in every respect.

Sublease Agreement (MSN [__])

------

**Signature Page to Aircraft Sublease Agreement between Amazon.com Services LLC as Sublessor and Hawaiian Airlines, Inc. *as Sublessee* relating to one Airbus A330-300 aircraft manufacturer's serial number [__]**

In witness whereof this Agreement has been signed by Sublessor and Sublessee on the date first above written.

**Sublessor**

---

| |
|:---|
| **Amazon.com Services LLC** |
| Name<br>Title |

---

**Sublessee**

---

| |
|:---|
| **Hawaiian Airlines, Inc.** |
| Name<br>Title |

---

Sublease Agreement (MSN [__])

------

SUBLESSOR HAS ASSIGNED THIS AGREEMENT TO THE SECURITY TRUSTEE AS SECURITY. TO THE EXTENT, IF ANY, THAT THIS AGREEMENT CONSTITUTES CHATTEL PAPER (AS SUCH TERM IS DEFINED IN THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN ANY APPLICABLE JURISDICTION), NO SECURITY INTEREST IN THIS AGREEMENT MAY BE CREATED THROUGH THE TRANSFER OR POSSESSION OF ANY COUNTERPART HEREOF OTHER THAN THE ORIGINAL COUNTERPART CONTAINING THE RECEIPT THEREFOR EXECUTED BY THE SECURITY TRUSTEE IMMEDIATELY FOLLOWING THIS LEGEND.

Receipt of this original counterpart of the foregoing Aircraft **Sublease** Agreement is hereby acknowledged on this _____ day of _______________, 202__.

__________________,

as Security Trustee

By:......................................

Name:.................................

Title:...................................

Sublease Agreement (MSN [__])

------

**Schedule 1<br>Description of the Aircraft** 

**Airframe**

Manufacturer:&nbsp;&nbsp;&nbsp;&nbsp;Airbus S.A.S.

Model:&nbsp;&nbsp;&nbsp;&nbsp;A330-300

Manufacturer's Serial No:&nbsp;&nbsp;&nbsp;&nbsp;[__]

**Engines** 

Manufacturer:&nbsp;&nbsp;&nbsp;&nbsp;Rolls-Royce plc

Model:&nbsp;&nbsp;&nbsp;&nbsp;Trent 772B-60

Base Thrust Rating:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71,100 lbs

Engine Serial Nos:

#1&nbsp;&nbsp;&nbsp;&nbsp;[__]

#2&nbsp;&nbsp;&nbsp;&nbsp;[__]

Sublease Agreement (MSN [__])

------

**Schedule 2Delivery Conditions – Procedures and Condition of the Aircraft at Delivery<br> [Intentionally Omitted from FAA Filed Version]**

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

**Schedule 3Aircraft Documents and Standards**

**[Intentionally Omitted from FAA Filed Version]**

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

[\*\*\*] <br> <u>[\*\*\*]</u> <u>[\*\*\*]</u> <u>[\*\*\*]</u>

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

[\*\*\*] <br> <u>[\*\*\*]</u> <u>[\*\*\*]</u> <u>[\*\*\*]</u>

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

[\*\*\*] [\*\*\*] [\*\*\*] <br> <u>[\*\*\*]</u> <u>[\*\*\*]</u> <u>[\*\*\*]</u>

Sublease Agreement (MSN [__])

------

[\*\*\*] [\*\*\*] [\*\*\*] <br> <u>[\*\*\*]</u> <u>[\*\*\*]</u> <u>[\*\*\*]</u>

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Sublease Agreement (MSN [__])

------

**Schedule 4Certain Economic Terms**

**[Intentionally Omitted from FAA Filed Version]**

1**Confidentiality: Sublessor and Sublessee acknowledge and agree that the commercial and financial information contained in this Schedule 4 is considered by Sublessor and Sublessee to be proprietary and confidential.** [\*\*\*].

2**Base Rental**: [\*\*\*].

3**Agreed Value**: [\*\*\*].

4**Damage Notification Threshold**: $[\*\*\*].

5**Payment Account**. [\*\*\*].

Sublease Agreement (MSN [__])

------

**Schedule 5Insurance Requirements**

**[Intentionally Omitted from FAA Filed Version]**

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

**Schedule 6**Redelivery Conditions – Procedures and Condition of the Aircraft at Redelivery

**[Intentionally Omitted from FAA Filed Version]**

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

[\*\*\*]

Sublease Agreement (MSN [__])

------

**Schedule 7Specification**

**[Intentionally Omitted from FAA Filed Version]**

[\*\*\*]

Sublease Agreement (MSN [__])

------

**Schedule 8<br>Other Aircraft**

**[Intentionally Omitted from FAA Filed Version]**

[\*\*\*]

Sublease Agreement (MSN [__])

------

**Schedule 9**Conditions Precedent

**Part A – Sublessor Conditions Precedent**

1**Signing Conditions Precedent** Sublessor shall receive from Sublessee, on the date of this Agreement, each of the following in form and substance satisfactory to Sublessor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1**Documents&nbsp;&nbsp;&nbsp;&nbsp;** the Sublease and other Transaction Documents shall have been duly authorized, executed and delivered by the respective party or parties thereto (other than Sublessor), shall be in full force and effect, and executed counterparts shall have been delivered to Sublessor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2**IRS Forms** a duly completed and signed Internal Revenue Service Form W-9 as may be necessary to demonstrate that no deduction or withholding on account of United States of America taxes is required in connection with any amounts payable to the Sublessee pursuant to the Transaction Documents.

2**Delivery Date Conditions Precedent** Sublessor shall receive (except with respect to Sections 2.7.1, 2.7.3(b) and 2.9 below) from Sublessee, not later than the Delivery Date, each of the following in form and substance satisfactory to Sublessor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1**Insurances** a letter of undertaking from the insurance broker and certificates of insurance in the form required by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2**Documents** each other Transaction Document (not already dealt with in this Schedule 9) shall have been executed by the relevant parties thereto and a signed version of each Transaction Document shall have been provided to Sublessor;<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3**TUE** evidence that Sublessee is a "transacting user entity" for the purposes of the Cape Town Treaty; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4**Sublessee Documents**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.1a copy of Sublessee's air carrier operating certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.2evidence of due authorisation and execution of this Agreement by Sublessee, reasonably satisfactory to Sublessor, which may be a certificate of the secretary, director or other officer of the Sublessee, certifying (A) that attached thereto is a true, complete and up to date copy of the constitutional documents of the Sublessee as amended (if available), (B) as to the incumbency and specimen signature of each officer or attorney of the Sublessee executing this Agreement and any other Transaction Documents to which it is party on the Delivery Date; and (C) evidence authorizing the execution, delivery and performance of this Agreement and any other Transaction Documents to which it is party on the Delivery Date; and

<sup>1</sup> NTD – To add Airframe and Engine Warranty Assignment documents to the extent necessary/available.

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.3a consent and agreement of the Sublessee in respect of a Sublease Assignment in respect of this Agreement (the "**Sublessee Consent**"), duly executed and delivered on behalf of Sublessor and Sublessee and, if applicable, meeting the requirements of Section 27.5 hereof, and each of such Sublessee Consent and Sublease Assignment otherwise in form and substance reasonably satisfactory to Head Lessor, Sublessor, Sublessee and any Security Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5**Payments** if relevant, the first payment of Base Rental and any other sum due and payable under this Agreement on or before the Delivery Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6**Acceptance Certificate** the duly dated and fully completed Acceptance Certificate executed by Sublessee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7**Filings** reasonably satisfactory evidence that the following have been done or are being done contemporaneously with the closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.1the application for registration in the name of the Owner Trustee, the FAA Bill of Sale, the Head Lease, this Agreement and any applicable Sublease Assignment shall have been duly filed for recordation (or shall be in the process of being so duly filed for recordation) with the FAA pursuant to the Transportation Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.2Sublessee shall have appointed FAA Counsel, as its "professional user entity" (as defined in the Cape Town Treaty) to make registrations of this Agreement (including any Sublease Supplement) with the International Registry and shall have authorized the making of such registrations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.3(a) a precautionary UCC financing statement with respect to this Agreement and (b) any UCC financing statements with respect to any applicable Sublease Assignment shall have been duly filed (or arrangements shall have been made for filing promptly after the Delivery Date) in the State of Delaware or the State of Organisation of Sublessee (or if such Sublessee is incorporated or formed outside the United States of America, in Sublessee's jurisdiction of incorporation if there is a regime analogous to the Uniform Commercial Code or otherwise in Washington D.C.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8**Maintenance Programme** a copy of the proposed Maintenance Programme; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9**Export/Import** evidence that any required export or import licence and all customs formalities relating to the export of the Aircraft from the Delivery Location and import of the Aircraft into the State of Registration have been obtained or complied with.

3**Other Representations and Warranties On the Delivery Date, t**he representations and warranties of Sublessee under the relevant Transaction Documents are true and correct in all material respects as though made on and as of the Delivery Date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties were true as of such earlier date).

Sublease Agreement (MSN [__])

------

4**Default** On the Delivery Date no event has occurred and is continuing that constitutes a Default or Event of Default.

**Part B – Sublessee Conditions Precedent**

1**Signing Conditions Precedent** Sublessee shall receive from Sublessor, on the date of this Agreement, each of the following in form and substance satisfactory to Sublessee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1**Documents**&nbsp;&nbsp;&nbsp;&nbsp; the Sublease and other Transaction Documents shall have been duly authorized, executed and delivered by the respective party or parties thereto (other than Sublessee), shall be in full force and effect, and executed counterparts shall have been delivered to Sublessee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2**IRS Forms** a duly completed and signed Internal Revenue Service Form W-9 as may be necessary to demonstrate that no deduction or withholding on account of United States of America taxes is required in connection with any amounts payable to the Sublessor pursuant to the Transaction Documents.

2**Delivery Date Conditions Precedent** Sublessee shall receive from Sublessor, not later than the Delivery Date, each of the following in form and substance satisfactory to Sublessee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1**Documents** each other Transaction Document (not already dealt with in this Schedule 9), shall have been executed by the relevant parties thereto (other than Sublessee) and a signed version of each Transaction Document shall have been provided to Sublessee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2**Certificate of Registration** a certificate of registration for the Aircraft issued by the FAA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3**Certificate of Airworthiness** a certificate of airworthiness for the Aircraft issued by the FAA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4**Quiet Enjoyment** a quiet enjoyment undertaking on terms consistent with the terms of Section 11 of this Agreement from the Head Lessor, Sublessor, any Security Trustee and any Leveraging Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5**Representations and Warranties On the Delivery Date, t**he representations and warranties of Sublessor under the relevant Transaction Documents are true and correct in all material respects as though made on and as of the Delivery Date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties were true as of such earlier date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6**PUE Consents** Sublessor shall have appointed FAA Counsel, as its "professional user entity" (as defined in the Cape Town Treaty) to make the registrations described in Section 2.1.7 of this Agreement and shall have authorized the making of such registrations.

Sublease Agreement (MSN [__])

------

**Appendix A<br>Acceptance Certificate**

This Acceptance Certificate is delivered, on and as of the date set forth below, to Amazon.com Services LLC (the "**Sublessor**") by Hawaiian Airlines, Inc. (the "**Sublessee**") pursuant to the Aircraft **Sublease** Agreement dated [●] 202_ between Sublessor and Sublessee (the "**Agreement**"). Capitalized words and expressions used in this certificate shall have the same meaning as given to such words and expressions in the Agreement.

1Details of Acceptance

Sublessee hereby indicates and confirms to Sublessor that there was delivered to Sublessee on and Sublessee accepted at ***[insert time]*** o'clock on the ***[insert day]*** day of ***[insert month] [insert year]*** at ***[insert Delivery Location]***, the following in accordance with the provisions of the Agreement:

**(a)&nbsp;&nbsp;&nbsp;&nbsp;Airframe:**

---

| | |
|:---|:---|
| Manufacturer: | Airbus SAS |
| Type: | A330-300 |
| MSN: |  |
| Current Registration number: |  |
| Total Flight Hours since new: |  |
| Total Cycles since new: |  |
| Date last C Check performed: |  |
| Total Flight Hours since new at time of last C Check: |  |
| Total Cycles since new at time of last C Check: |  |
| Date last Airframe Mid-Life Check performed: |  |
| Total Flight Hours since new at time of last Airframe Mid-Life Check: |  |
| Total Cycles since new at time of last Airframe Mid-Life Check: |  |
| Date last Airframe Heavy Maintenance Check performed: |  |

---

Sublease Agreement (MSN [__])

------

---

| |
|:---|
| Total Flight Hours since new at time of last Airframe Heavy Maintenance Check: |
| Total Cycles since new at time of last Airframe Heavy Maintenance Check: |

---

**(b)&nbsp;&nbsp;&nbsp;&nbsp;Engines:**

---

| | | |
|:---|:---|:---|
| | Installed in Position #1 | Installed in Position #2 |
| Manufacturer: | Rolls-Royce plc | Rolls-Royce plc |
| Type: | Trent 772B-60 | Trent 772B-60 |
| Data Plate Thrust Rating (Lbs): | 71,100 lbs | 71,100 lbs |
| MSN: |  |  |
| Total Flight Hours since new: |  |  |
| Total Cycles since new: |  |  |
| Cycles remaining on Life Limited Part with lowest life remaining: |  |  |
| LLP name: |  |  |
| Date last Engine Performance Restoration shop visit performed: |  |  |
| Total Flight Hours since new at time of last Engine Performance Restoration shop visit: |  |  |
| Total Cycles since new at time of last Engine Performance Restoration shop visit: |  |  |

---

Each Engine is capable of 1750 pounds of thrust or more.

**(c)&nbsp;&nbsp;&nbsp;&nbsp;Engine Life Limited Parts**

Engine Life Limited Parts status for each Engine as per the status sheets signed by Sublessor and Sublessee and attached hereto.

Sublease Agreement (MSN [__])

------

**(d)&nbsp;&nbsp;&nbsp;&nbsp;Landing Gear:**

---

| | | | |
|:---|:---|:---|:---|
| | Nose Landing Gear Assembly | Left Main Landing Gear Assembly | Right Main Landing Gear Assembly |
| MSN: |  |  |  |
| Total Flight Hours since new: |  |  |  |
| Total Cycles since new: |  |  |  |
| Date Released from Shop at last Landing Gear Overhaul |  |  |  |
| Date last Landing Gear Overhaul performed (date of first flight post Landing Gear Overhaul): |  |  |  |
| Total Flight Hours since new at time of last Landing Gear Overhaul: |  |  |  |
| Total Cycles since new at time of last Landing Gear Overhaul: |  |  |  |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| | Depth Tire Tread Remaining (inches) | Length Brake Wear Pin Remaining (inches) |
| Left Nose Wheel |  |  |
| Right Nose Wheel |  |  |
| Main Wheel & Brake #1 FWD |  |  |
| Main Wheel & Brake #2 FWD |  |  |
| Main Wheel & Brake #3 FWD |  |  |
| Main Wheel & Brake #4 FWD |  |  |
| Main Wheel & Brake #1 AFT |  |  |
| Main Wheel & Brake #2 AFT |  |  |
| Main Wheel & Brake #3 AFT |  |  |
| Main Wheel & Brake #4 AFT |  |  |

---

Sublease Agreement (MSN [__])

------

**(e)&nbsp;&nbsp;&nbsp;&nbsp;APU:**

---

| |
|:---|
| Manufacturer: |
| Type: |
| MSN: |
| Total APU Hours since new: |
| Total APU Starts since new: |
| Date last APU Performance Restoration shop visit performed: |
| Total APU Hours since new at time of last APU Performance Restoration shop visit: |
| Total APU Starts since new at time of last APU Performance Restoration shop visit: |

---

**(f)&nbsp;&nbsp;&nbsp;&nbsp;Aircraft Documents** 

The Aircraft Documents in accordance with the list signed by Sublessor and Sublessee and attached hereto as Attachment No. 1.

**(g)&nbsp;&nbsp;&nbsp;&nbsp;Loose Equipment**

The items of loose equipment in accordance with the list signed by Sublessor and Sublessee and attached hereto as Attachment No. 2.

**(h)&nbsp;&nbsp;&nbsp;&nbsp;Fuel on board at Delivery: *[****insert amount****]* lbs.**

2Confirmation of Undertakings

Sublessee confirms to Sublessor that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Aircraft has been inspected by or on behalf of Sublessee to ensure the Aircraft conforms to Sublessee's requirements. The Aircraft is in compliance with the Delivery Conditions [except as described in Attachment No.3];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the date of acceptance set forth above constitutes the Delivery Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the Sublessee's execution and delivery of this Acceptance Certificate represents the Sublessee's acceptance of the Aircraft in accordance with the terms of the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the representations and warranties contained in Section 2.1 of the Agreement are hereby repeated as of the Delivery Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the Aircraft is insured in accordance with the provisions of the Agreement and Sublessor will procure that the undertakings described in Attachment No. 3 will be performed.

Sublease Agreement (MSN [__])

------

This Acceptance Certificate may be executed in several counterparts. This Acceptance Certificate and any and all obligations arising out of or in connection with it shall be governed by and construed in accordance with the laws of the State of New York.

**In witness whereof**, each of Sublessee and Sublessor has caused this Acceptance Certificate to be signed by its duly authorized officer(s) or representative(s) on the date written in paragraph 1 above.

**Sublessee**:

**Hawaiian Airlines, Inc.**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

**Sublessor**:

**Amazon.com Services LLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

Sublease Agreement (MSN [__])

------

**Attachment No. 1 to Acceptance Certificate**

List of Aircraft Documents

**Sublessee**:

**Hawaiian Airlines, Inc.**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

**Sublessor**:

**Amazon.com Services LLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

Sublease Agreement (MSN [__])

------

**Attachment No. 2 to Acceptance Certificate**

List of Items of Loose Equipment

**Sublessee**:

**Hawaiian Airlines, Inc.**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

**Sublessor**:

**Amazon.com Services LLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

Sublease Agreement (MSN [__])

------

**Attachment No. 3 to Acceptance Certificate Exceptions List**

The items listed below represent non-conformities to the Delivery Conditions on the Delivery Date, the corrective action (or payment to Sublessee in lieu thereof), if any, to be taken by Sublessor (or Head Lessor) and the date of accomplishment, which Sublessor expressly agrees to perform as set forth herein. Sublessee's acceptance of the Aircraft is subject to Sublessor's completion of the items set forth herein or payment to Sublessee in lieu thereof. Sublessee expressly acknowledges and agrees that Sublessor's undertakings set forth herein are in furtherance of and subject to the Aircraft Sublease Agreement dated [●] between Sublessor and Sublessee (the "**agreement**"), that Sublessor makes no representations or warranties of any kind, express or implied, hereunder and that Sublessor's undertakings are subject to each and every disclaimer of Sublessor set forth in the agreement including, without limitation, those set forth in Section 21 thereof.

**Sublessee**

**Hawaiian Airlines, Inc.**

By:

Name:

Title:

**Sublessor**

**Amazon.com Services LLC**

By:

Name:

Title:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Item No.** | **Description** | **Correction Action** | **Completion Date** | **Sublessee's Initials** |

---

Sublease Agreement (MSN [__])

------

**Appendix B<br>Monthly Report** 

To:

From:

---

| | | | |
|:---|:---|:---|:---|
| Month/Year: |  |  |  |
| Aircraft Type: |  |  |  |
| Airframe MSN: |  |  |  |
| Airframe Total Flight Hours Since New (Hrs:Mins): |  |  |  |
| Airframe Total Cycles Since New: |  |  |  |
| Airframe Flight Hours During Month (Hrs:Mins): |  |  |  |
| Airframe Cycles During Month: |  |  |  |
| Date of Last C Check: |  |  |  |
| Planned Date for Next C Check: |  |  |  |
|  | Engine No. 1 | Engine No. 2 | APU |
| Titled MSN (MSN contracted with Airframe): |  |  |  |
| Current Location of Titled MSN: |  |  |  |
| Current Thrust Rating of Titled MSN: |  |  |  |
| Titled MSN Total Flight Hours Since New (Hrs:Mins): |  |  |  |
| Titled MSN Total Cycles Since New: |  |  |  |
| Titled MSN Flight Hours During Month (Hrs:Mins): |  |  |  |
| Titled MSN Cycles During Month: |  |  |  |

---

Sublease Agreement (MSN [__])

------

---

| | | | |
|:---|:---|:---|:---|
| Titled MSN Total APU Hours Since New (Hrs:Mins): |  |  |  |
| Titled MSN APU Hours During Month (Hrs:Mins): |  |  |  |
| Titled MSN Date of Last Shop Visit: |  |  |  |
| Titled MSN Date Removed (if off wing): |  |  |  |
| Titled MSN Reason for Removal (if off wing): |  |  |  |
| Titled MSN Planned Removal Date: |  |  |  |
| Currently Installed MSN: |  |  |  |
|  | Nose | Left Main | Right Main |
| Titled MSN (MSN contracted with Airframe): |  |  |  |
| Current Location of Titled MSN: |  |  |  |
| Titled MSN Total Flight Hours Since New (Hrs:Mins): |  |  |  |
| Titled MSN Total Cycles Since New: |  |  |  |
| Titled MSN Flight Hours Flown During Month (Hrs:Mins): |  |  |  |
| Titled MSN Cycles During Month: |  |  |  |
| Titled MSN Date of last Overhaul: |  |  |  |
| Currently Installed MSN: |  |  |  |
| Report any Incident of Loss or Damage: |  |  |  |
| Report any changes of Operating Weights: |  |  |  |
| Flights flown outside the United States of America (departure and arrival): |  |  |  |
| Flights flown to the United States of America: |  |  |  |
| Flights flown from the United States of America: |  |  |  |

---

Sublease Agreement (MSN [__])

------

Flights flown to any Excluded Country:  <br> <u>Flights flown from any Excluded Country:</u> 

Sublease Agreement (MSN [__])

------

**Appendix C<br>Redelivery Acknowledgment**

This Redelivery Acknowledgment is delivered, on and as of the date set forth below, to Hawaiian Airlines, Inc. (the "**Sublessee**") by Amazon.com Services LLC (the "**Sublessor**") pursuant to the Aircraft Sublease Agreement dated [**insert date**] 202_ between Sublessor and Sublessee (the "**Agreement**"). Capitalized words and expressions used in this acknowledgment shall have the same meaning as given to such words and expressions in the Agreement.

1Details of Acceptance

Sublessor hereby indicates and confirms to Sublessee that there was delivered to Sublessor on and Sublessor accepted at **[insert time]** o'clock on the **[insert day]** day of **[insert month] [insert year]** at **[insert delivery location]**, the following in accordance with the provisions of the Agreement:

**(a)&nbsp;&nbsp;&nbsp;&nbsp;Airframe:**

---

| | |
|:---|:---|
| Manufacturer: | Airbus SAS |
| Type: | A330-300 |
| MSN: |  |
| Current Registration number: |  |
| Total Flight Hours since new: |  |
| Total Cycles since new: |  |
| Date last C Check performed: |  |
| Total Flight Hours since new at time of last C Check: |  |
| Total Cycles since new at time of last C Check: |  |
| Date last Airframe Mid-Life Check performed: |  |
| Total Flight Hours since new at time of last Airframe Mid-Life Check: |  |
| Total Cycles since new at time of last Airframe Mid-Life Check: |  |
| Date last Airframe Heavy Maintenance Check performed: |  |

---

Sublease Agreement (MSN [__])

------

---

| |
|:---|
| Total Flight Hours since new at time of last Airframe Heavy Maintenance Check: |
| Total Cycles since new at time of last Airframe Heavy Maintenance Check: |

---

Sublease Agreement (MSN [__])

------

**(b)&nbsp;&nbsp;&nbsp;&nbsp;Engines:**

---

| | | |
|:---|:---|:---|
| | Installed in Position #1 | Installed in Position #2 |
| Manufacturer: | Rolls-Royce plc | Rolls-Royce plc |
| Type: | Trent 772B-60 | Trent 772B-60 |
| Data Plate Thrust Rating (Lbs): | 71,100 lbs | 71,100 lbs |
| MSN: |  |  |
| Total Flight Hours since new: |  |  |
| Total Cycles since new: |  |  |
| Cycles remaining on Life Limited Part with lowest life remaining: |  |  |
| LLP name: |  |  |
| Date last Engine Performance Restoration shop visit performed: |  |  |
| Total Flight Hours since new at time of last Engine Performance Restoration shop visit: |  |  |
| Total Cycles since new at time of last Engine Performance Restoration shop visit: |  |  |

---

**(c)&nbsp;&nbsp;&nbsp;&nbsp;Engine Life Limited Parts**

Engine Life Limited Parts status for each Engine as per the status sheets signed by Sublessor and Sublessee and attached hereto.

Sublease Agreement (MSN [__])

------

**(d)&nbsp;&nbsp;&nbsp;&nbsp;Landing Gear:**

---

| | | | |
|:---|:---|:---|:---|
| | Nose Landing Gear Assembly | Left Main Landing Gear Assembly | Right Main Landing Gear Assembly |
| MSN: |  |  |  |
| Total Flight Hours since new: |  |  |  |
| Total Cycles since new: |  |  |  |
| Date Released from Shop at last Landing Gear Overhaul |  |  |  |
| Date last Landing Gear Overhaul performed (date of first flight post Landing Gear Overhaul): |  |  |  |
| Total Flight Hours since new at time of last Landing Gear Overhaul: |  |  |  |
| Total Cycles since new at time of last Landing Gear Overhaul: |  |  |  |

---

Sublease Agreement (MSN [__])

------

---

| | | |
|:---|:---|:---|
| | Depth Tire Tread Remaining (inches) | Length Brake Wear Pin Remaining (inches) |
| Left Nose Wheel |  |  |
| Right Nose Wheel |  |  |
| Main Wheel & Brake #1 FWD |  |  |
| Main Wheel & Brake #2 FWD |  |  |
| Main Wheel & Brake #3 FWD |  |  |
| Main Wheel & Brake #4 FWD |  |  |
| Main Wheel & Brake #1 AFT |  |  |
| Main Wheel & Brake #2 AFT |  |  |
| Main Wheel & Brake #3 AFT |  |  |
| Main Wheel & Brake #4 AFT |  |  |

---

Sublease Agreement (MSN [__])

------

**(e)&nbsp;&nbsp;&nbsp;&nbsp;APU:**

---

| |
|:---|
| Manufacturer: |
| Type: |
| MSN: |
| Total APU Hours since new: |
| Total APU Starts since new: |
| APU Starts remaining on Life Limited Part with lowest life remaining: |
| LLP name: |
| Date last APU Performance Restoration shop visit performed: |
| Total APU Hours since new at time of last APU Performance Restoration shop visit: |
| Total APU Starts since new at time of last APU Performance Restoration shop visit: |

---

**(f)&nbsp;&nbsp;&nbsp;&nbsp;Aircraft Documents:** 

The Aircraft Documents in accordance with the list signed by the Sublessor and the Sublessee and attached hereto as Attachment No.1.

**(g)&nbsp;&nbsp;&nbsp;&nbsp;Loose Equipment:** 

The items of loose equipment in accordance with the list signed by the Sublessor and the Sublessee and attached hereto as Attachment No. 2.

**(h)&nbsp;&nbsp;&nbsp;&nbsp;Fuel on board at Redelivery:** 

[***insert amount***] **lbs**.

2Confirmation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;Sublessor confirms to Sublessee that as at the time indicated above, being the Termination Date, (a) the Aircraft has been inspected by or on behalf of Sublessor to ensure that the Aircraft conforms to the Redelivery Conditions and (b) the Aircraft is in compliance with the Redelivery Conditions [except as described on the Exceptions List attached hereto as Attachment No. 3] and the Aircraft, Engines, Parts and Aircraft have been redelivered to and accepted by the Sublessor subject to the terms of the Agreement.

Sublease Agreement (MSN [__])

------

This Redelivery Acknowledgment may be executed in several counterparts. This Redelivery Acknowledgment shall be governed by and construed in accordance with the laws of the State of New York.

**In witness whereof**, each of Sublessor and Sublessor has caused this Redelivery Acknowledgment to be signed by its duly authorized officer(s) or representative(s) on the date written in paragraph 1 above.

**Sublessor**:

**Amazon.com Services LLC**

By:

Name:

Title:

**Sublessee**:

**Hawaiian Airlines, Inc.**

By:

Name:

Title:

Sublease Agreement (MSN [__])

------

**Attachment No. 1 to Redelivery Acknowledgment**

**List of Aircraft Documents**

**Sublessor**:

**Amazon.com Services LLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

**Sublessee**:

**Hawaiian Airlines, Inc.**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

Sublease Agreement (MSN [__])

------

**Attachment No. 2 to Redelivery Acknowledgment**

**List of Items of Loose Equipment** 

**Sublessor**:

**Amazon.com Services LLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

**Sublessee**:

**Hawaiian Airlines, Inc.**

By:&nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

Sublease Agreement (MSN [__])

------

**Attachment No. 3 to Redelivery Acknowledgment**

**Exceptions List**

The items listed below represent [defects or] non-conformities to the Redelivery Conditions on the Termination Date, the corrective action [(or payment to Sublessor in lieu thereof)], if any, to be taken by Sublessee and the date of accomplishment, which Sublessee expressly agrees to perform as set forth herein. Sublessor's acceptance of the Aircraft is subject to Sublessee's completion of the items set forth herein [or payment to Sublessor in lieu thereof].

**Sublessor**

**Amazon.com Services LLC**

By: &nbsp;&nbsp;&nbsp;&nbsp;

Name:&nbsp;&nbsp;&nbsp;&nbsp;

Title:&nbsp;&nbsp;&nbsp;&nbsp;

**Sublessee**

**Hawaiian Airlines, Inc.**

By: &nbsp;&nbsp;&nbsp;&nbsp;

Name:

Title:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Item No.** | **Description** | **Correction Action** | **Completion Date** | **Sublessor's Initials** |

---

Sublease Agreement (MSN [__])

------

**Annex A<br>Definitions**

**DEFINITIONS (MSN [__])**

1.1In each Transaction Document, unless the context otherwise requires, the following words and expressions have the following meanings:

"**Acceptable Repair"** means a structural repair accomplished in accordance with (a) the Manufacturer's SRM or (b) any other repair design approved by the Manufacturer and the Type Authority and accepted by the Aviation Authority and complying with the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the repair must be designated as permanent (Category A Repair or Category B Repair, as such terms are defined in the SRM) in accordance with the Manufacturer's approved data; notwithstanding the foregoing, in the event that the Manufacturer advises that a permanent repair is not possible or not economically feasible, a temporary or time limited repair shall be acceptable provided (i) there are no supplemental inspections required and (ii) the repair does not require replacement prior to the Aircraft accumulating [\*\*\*] Flight Hours since new or [\*\*\*] Cycles since new, whichever occurs first;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)damage tolerance assessment of the repair by the Manufacturer must be complete up to at least Stage 2 (identifying a threshold for any applicable supplemental damage tolerance inspections);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)damage tolerance assessment of the repair by the Manufacturer must be complete up to Stage 3 (identifying an interval and a method for inspection for any applicable supplemental damage tolerance inspections) if the threshold for any supplemental damage tolerance inspections would fall due within [\*\*\*] Flight Hours and/or [\*\*\*] Cycles and/or [\*\*\*] months after Redelivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the interval for inspection of a Category B Repair (as such term is defined in the SRM) shall not be less than [\*\*\*] Flight Hours and/or [\*\*\*] Cycles and/or [\*\*\*] months;

"**Acceptance Certificate"** means an acceptance certificate substantially in the form set out in Appendix A to the Sublease;

"**Affiliate**" means, in relation to any person, any other person directly or indirectly controlling, directly or indirectly controlled by or under direct or indirect common control with the person specified;

"**After-Tax Basis**" means that payments required to be made on such basis will be supplemented by the person paying the base amount by that amount which, when added to such base amount, and after deduction of all Taxes required to be paid by or on behalf of the payee with respect to the receipt or accrual of the base amount and any such supplemental amount, and after consideration of any current Tax savings of such payee resulting by way of any deduction, credit or other Tax benefit attributable

Sublease Agreement (MSN [__])

------

to such amounts or the Indemnified Tax or Loss, shall net such payee the full amount of such base amount;

"**Agreed Value**" has the meaning given in paragraph 7 of Schedule 4 to the Sublease;

"**AHSN**" means "APU Hours since new" being, the total APU Hours accumulated on the APU (or any other relevant auxiliary power unit) since new from manufacture;

"**Aircraft**" means the Airframe together with the Engines and includes, where the context requires, the Aircraft Documents;

"**Aircraft Documents**" means all records, logs, manuals, technical data, tags and other documents in respect of the specification, maintenance, modification and repair of the Aircraft (i) provided to Sublessee with the Aircraft at Delivery, (ii) specified in the list attached to the Acceptance Certificate, (iii) provided to Sublessee during the Sublease Period, (iv) generated by Sublessee or any third party pursuant to Section 15.10 of the Sublease, and all replacements, additions, revisions and renewals from time to time made to any of the foregoing whether printed on paper or stored on any disk or electronic medium, and in the case of the latter includes any software not generally available to Sublessor and necessary to store and retrieve such data; subject to Section 15.1.15 of the Sublease, all of the foregoing conforming to the standard and content set out in schedule 3 to the Sublease;

"**Aircraft Protocol**" means the official English language text of the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, adopted on November 16, 2001, at a diplomatic conference in Cape Town, South Africa, and all amendments, supplements, and revisions thereto, as in effect in the United States;

"**Airframe**" means the airframe described in schedule 1 to the Sublease (excluding any Engines or engines from time to time installed thereon), together with any and all Parts thereof so long as such Parts are incorporated or installed in or attached to such airframe, and any and all Parts removed therefrom so long as title thereto remains vested in Owner Trustee in accordance with the terms of the Sublease and, where the context requires, such of the Aircraft Documents as relate to such airframe and such Parts, but excludes any Part replaced in accordance with the Sublease, title to which has vested in Sublessee pursuant to the Sublease;

"**Airframe Heavy Maintenance Check**" means a single block check in respect of the Aircraft during which all those tasks per the MPD which have an interval equal to the Airframe Heavy Maintenance Check Interval are accomplished;

"**Airframe Heavy Maintenance Check Interval**" means [\*\*\*] years or such other interval as may be applied to the majority of heavy structural inspection tasks per the MPD following a revision to the MPD, it being acknowledged that such tasks have an interval of [\*\*\*];

"**Airframe Manufacturer**" means Airbus S.A.S;

"**Airframe Mid-Life Check**" means a single block check in respect of the Aircraft during which all those tasks per the MPD which have an interval equal to the Airframe Mid-Life Check Interval are accomplished;

Sublease Agreement (MSN [__])

------

"**Airframe Mid-Life Check Interval**" means [\*\*\*] years or such other interval as may be applied to the majority of mid-life structural inspection tasks per the MPD following a revision to the MPD, it being acknowledged that such tasks have an interval [\*\*\*];

**"Airworthiness Directive**" means an airworthiness directive issued by (including those issued by or those issued on behalf of or those adopted by) the Type Authority and/or any other specified authority;

[\*\*\*] **Entities**[\*\*\*];

"**AMM**" means the latest revision (as at the applicable time of reference) of the airplane maintenance manual or aircraft maintenance manual published by the Manufacturer in respect of the Aircraft;

"**AMOC**" has the meaning given in paragraph 14.2 of Schedule 6 to the Sublease;

"**APU**" means the auxiliary power unit installed on the Airframe on the Delivery Date or any replacement auxiliary power unit installed on the Airframe title to which has vested in Owner Trustee pursuant to the terms of the Sublease, all Parts thereof and, where the context requires, such of the Aircraft Documents as relate thereto, but excludes any such auxiliary power unit replaced in accordance with the Sublease title to which has passed to Sublessee pursuant to the terms of the Sublease;

"**APU Hour**" means, with respect to the APU, or any other relevant auxiliary power unit, each hour or part thereof elapsing from the moment such unit is started to the moment when it is shut down;

"**APU Performance Restoration**" means, with respect to the APU, a shop visit of the APU which includes as a minimum the disassembly, inspection and repair of the power section and load compressor of the APU in accordance with either the Maintenance Program or the APU Manufacturer's published manuals;

"**APU Start**" means, with respect to the APU, one complete operational cycle of the APU from start up to shut down and, with respect to any other auxiliary power unit, one complete operational cycle of such auxiliary power unit from start up to shut down;

"**ASSN**" means "APU Starts since new" being the total number of APU Starts accumulated on the APU (or any other relevant auxiliary power unit) since new from manufacture;

"**ATSA**" has the meaning set forth in the introductory paragraphs of the Sublease.

"**Authorized Maintenance Provider**" means Sublessee, any affiliate of Sublessee which is an FAR 145 approved maintenance provider and any other FAR 145 approved facility or other maintenance provider approved by the Aviation Authority, in any case approved for the determined scope of work to be undertaken on the Aircraft;

Sublease Agreement (MSN [__])

------

"**Aviation Authority**" means the FAA;

"**Base Rental**" means all amounts payable pursuant to Section 7.2 of the Sublease;

"**Base Thrust Rating**" means the take-off thrust rating identified for the Engines in schedule 1 to the Sublease;

"**Beneficiary**" means [\*\*\*];

"**Business Day**" means any day (other than Saturday or Sunday) on which banks are open for business in London, United Kingdom, New York, New York, U.S., Seattle, Washington, U.S. and Sublessee's State of Organization;

"**C Check**" means, however designated, a block check in respect of the Aircraft equivalent to an industry standard C Check, being a maintenance check carried out at intervals of 24 months or more and requiring sufficient downtime to carry out all work (which shall typically include system maintenance, zonal inspections, structural inspections, cabin refurbishment, cleaning and repairs) as required by the maintenance programme designated for such C Check;

"**Cape Town Convention**" means the official English language text of the Convention on International Interests in Mobile Equipment, adopted on November 16, 2001, at a diplomatic conference in Cape Town, South Africa, and all amendments, supplements, and revisions thereto, as in effect in the United States;

"**Cape Town Treaty"** means, collectively, the official English language text of (i) the Cape Town Convention, (ii) the Aircraft Protocol, (iii) all rules and regulations adopted pursuant thereto and as in effect in the United States and (iv) with respect to each of the foregoing described in clauses (i) through (iii), all amendments, supplements and revisions thereto as in effect in the United States;

"**Certificated Air Carrier**" means an air carrier holding an air carrier operating certificate issued by the Secretary of Transportation pursuant to Chapter 447 of Title 49 of the United States Code for aircraft capable of carrying ten or more individuals or 6,000 pounds or more of cargo or that otherwise is certified or registered to the extent required to fall within the purview of Section 1110 of the Bankruptcy Code of the United States;

"**Citizen of the United States**" has the meaning specified for such term in Section 40102(a)(15) of the Transportation Code or any similar legislation of the United States of America enacted in substitution or replacement therefor;

"**Code**" means the U.S. Internal Revenue Code of 1986, as amended;

"**Conditions Precedent**" means the Sublessor Conditions Precedent and the Sublessee Conditions Precedent;

"**CSN**" means "cycles since new" being the total Cycles accumulated on the relevant Aircraft, Airframe, Engine or Part (or any other applicable engine or part) since new manufacture;

Sublease Agreement (MSN [__])

------

"**Cycle**" means each take-off and landing sequence of the Airframe and, with respect to an Engine or Part, each take-off and landing sequence of the airframe on which such Engine or Part is installed and, with respect to any other engine or part, each take-off and landing sequence of the airframe on which such other engine or part is installed (one (1) "touch and go" shall count as one (1) take-off and landing sequence);

"**Damage Notification Threshold**" has the meaning given in Schedule 4 to the Sublease;

"**Data Plate Thrust Rating**" means, with respect to an engine (including an Engine), the take-off thrust rating (i) for which such engine is configured for operation, (ii) which is recorded on the data plate of such engine, (iii) which is certified for use on such engine by the Engine Manufacturer, and (iv) for which the Engine Manufacturer has been compensated or has otherwise approved such thrust rating for such engine;

"**Default**" means any event or the existence of any circumstance which is, or, with the giving of notice, the lapse of time, any relevant determination, the satisfaction of any applicable condition, or any combination of any of the foregoing, may become an Event of Default;

"**Default Rate**" means a rate equal to [\*\*\*]% per annum;

"**Delivery**" means the delivery of the Aircraft by Sublessor to, and the acceptance of the Aircraft by, Sublessee under the Sublease;

"**Delivery Conditions**" means the procedures and conditions specified in Schedule 2 to the Sublease;

"**Delivery Date**" means the date on which Delivery occurs;

"**Delivery Final Technical Acceptance**" has the meaning given in paragraph 3.4 of Schedule 2 to the Sublease;

"**Delivery Historical Records**" has the meaning given in paragraph 2.1.1 of Schedule 2 to the Sublease;

"**Delivery Initial Technical Acceptance**" has the meaning given in paragraph 1 of Schedule 2 to the Sublease;

"**Delivery Initial Technical Acceptance Location**" means the location where the P2F Conversion is to be completed;

"**Delivery Location**" means the Delivery Painting Location or such other location mutually agreed to by the Parties;

"**Delivery Paint Positioning Flight**" has the meaning given in paragraph 3.6 of Schedule 2 to the Sublease;

"**Delivery Painting Location**" means the location designated by Sublessor at which the livery painting of the Aircraft shall be completed prior to Delivery (which may be the same as the Delivery Initial Technical Acceptance Location);

"**Delivery Positioning Flight**" has the meaning given in paragraph 4.1 of Schedule 2 to the Sublease;

Sublease Agreement (MSN [__])

------

"**DER Repair**" means a repair which has not been approved for use on the Airframe or on an Engine or Part (as applicable) by the relevant Manufacturer (even if such repair is approved by an FAA designated engineering representative, or by a person or organization holding design organization approval under EASA Part 21);

"**Dollars**" and "**$**" means the lawful currency of the United States of America from time to time;

"**Early Termination Date**" has the meaning given in Section 5.12 of the Sublease;

"**Early Termination Notice**" has the meaning given in Section 5.12 of the Sublease;

"**Early Termination Option**" has the meaning given in Section 5.12 of the Sublease;

"**EASA**" means the European Aviation Safety Agency as established by European Parliament and Council Regulation (EC) No. 2018/1139 (repealing and/or amending earlier regulations and/or directives of the European Parliament and Council) and/or any other authority or person which may succeed or replace it or any of its functions from time to time;

[\*\*\*];

"**EGT Margin**" means the exhaust gas temperature margin being a measure of the difference between the temperature at a location determined by the Engine Manufacturer (typically at the inlet or exit of the low pressure turbine) and limits for exhaust gas temperature approved by the Type Authority;

"**Engine**" means, whether or not installed on the Airframe, each of the engines of the manufacture, model and serial number described in schedule 1 to the Sublease (each of which has 750 or more rated take-off horsepower or the equivalent) or any other engine of the same manufacture and model tendered to Sublessee with the Airframe as set out in the Acceptance Certificate and any Replacement Engine with effect from the time when title thereto vests in Owner Trustee pursuant to the Sublease, and in each case includes any and all Parts belonging to or installed in such engine or removed therefrom so long as title thereto remains vested in Owner Trustee in accordance with the Sublease and, where the context requires, such of the Aircraft Documents as relate thereto but excludes any engine replaced in accordance with the Sublease title to which has vested in Sublessee pursuant to the Sublease;

"**Engine Manufacturer**" means Rolls-Royce plc or its successor in title;

"**Engine Performance Restoration**" means a shop visit at which an Engine undergoes as a minimum an Engine Refurbishment Shop Visit as defined by the Engine Manufacturer's generic Engine Management Programme valid at the time of the shop visit, including Module 41 Refurbishment and Module 51 Refurbishment; in each case, with the workscope accomplished for each major module and the performance of the Engine demonstrated during test cell for such shop visit being sufficient in the Engine Manufacturer's reasonable opinion to achieve a full operating interval until the next anticipated Engine Performance Restoration shop visit and in any event not less than 6,000 Cycles (the "**Required Engine Build Level**");

"**Engine Total Loss**" means the occurrence of any of the events described in the definition of Total Loss with respect to an Engine and not the Aircraft or the Airframe, whether or not installed on the Airframe;

Sublease Agreement (MSN [__])

------

"**Equipment Change**" has the meaning given in Section 15.7 of the Sublease;

"**Eurocontrol**" means the European Organisation for the Safety of Air Navigation established by the Convention relating to Co-operation for the Safety of Air Navigation (Eurocontrol) signed on 13 December 1960 as amended by the Protocol thereto signed on 12 February 1981 as amended from time to time or any replacement therefor or successor thereto;

"**Event of Default**" means any of the events or circumstances specified in Section 19.1 of the Sublease;

"**Event of Force Majeure**" means a delay in performance on account of or arising out of (i) acts of God, (ii) war, riots, terrorism or armed hostilities, (iii) fires, floods, pandemics (including the continuing Covid-19 pandemic), earthquakes, serious accidents or the total loss of the Aircraft, (iv) strikes or labour troubles causing cessation, slowdown, or interruption of work or (v) any other cause that is beyond the reasonable control of the Sublessor or not occasioned by the fault or negligence of the Sublessor or the Beneficiary (including, without limitation, for the purposes of this item (v), damage to the Aircraft or the inability of Sublessor or any other person to procure materials, systems, accessories, equipment or parts), provided that the termination of the P2F Conversion Agreement shall not constitute an Event of Force Majeure;

"**Excluded Country**" means any country or territory to which the export and/or use of the Aircraft, any Engine or Part or engaging in business or facilitating trade or other economic activity, (whether by reason of matters relating to the Sublessor, the Sublessee, a Manufacturer or otherwise) is not permitted under any sanctions, statute, regulation or legislation from time to time promulgated by any of (i) the United Nations, (ii) the United States of America, (iii) the United Kingdom, (iv) the European Union, (v) the State of Organisation, (vi) the State of Registration, or (vii) any Governmental Entity having jurisdiction over the Sublessee, Sublessor, Beneficiary and Owner Trustee;

"**Export Control Laws**" means any applicable export control laws, such as U.S. Export Control Reform Act of 2018 and the Export Administration Regulations, 15 C.F.R. Parts 700-799, as amended from time to time, and Council Regulation (EC) No. 428/2009, as amended and updated by EU Regulation 388/2012 of 19 April 2012, and associated implementing laws and regulations of EU member states, as further updated and amended from time to time;

"**FAA**" means the Federal Aviation Administration of the Department of Transportation of the United States of America and/or such authorities or persons as shall replace it or any of its functions from time to time;

"**FAA Bill of Sale**" means the bill of sale for the Aircraft on AC Form 8050-2, executed in favour of Owner Trustee;

"**FAR**" means the Federal Aviation Regulations as set out in the Transportation Code of the United States of America as amended from time to time;

"**Final Delivery Check**" has the meaning given in paragraph 9.1 of Schedule 2 to the Sublease;

Sublease Agreement (MSN [__])

------

"**Final Destination**" has the meaning given in paragraph 4.1 of Schedule 6 to the Sublease;

"**Final Redelivery Check**" has the meaning given in paragraph 9.1 of Schedule 6 to the Sublease;

"**Final Redelivery Check Records**" has the meaning given in paragraph 2.1.1 of Schedule 6 to the Sublease;

"**Flight Hour**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)with respect to the Aircraft or Airframe, each hour or part thereof (rounded up to the nearest minute) accumulated while the Airframe is off the surface of the earth during flight; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)with respect to an Engine, Part or any other engine or part, each hour or part thereof (rounded up to the nearest minute) accumulated while the airframe on which such Engine or Part or such other engine or part, is installed is off the surface of the earth during flight;

"**Governmental Entity**" means any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)state, territory, national government or political subdivision of any thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)governmental authority, board, commission, department, division, organ, instrument, court, tribunal or agency of any state, territory or political subdivision thereof, however constituted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)association, organisation or institution to whose jurisdiction of which any entity mentioned in (a) or (b) above is a member or to whose jurisdiction any thereof is subject or in whose activities any thereof is a participant;

"**Hard Time Event**" means a visual check, operational check, functional check, inspection, maintenance, lubrication, servicing, restoration or discard & replacement for life limit for a Hard Time Part in accordance with the requirements of the MPD and/or the Maintenance Programme and/or any other maintenance programme specified in the Sublease;

"**Hard Time Part**" means a Part or replacement part which must be removed from service for a Hard Time Event at specified intervals in accordance with the MPD and/or the Maintenance Programme and/or any other maintenance programme specified in the Sublease;

"**Hawaiian's Maintenance Programme**" means Sublessee's Aviation Authority approved maintenance program applicable to aircraft of the same make and model as the Aircraft and utilized pursuant to the ATSA;

"**Head Lease**" means that certain Aircraft Lease Agreement dated as of December 7, 2021, between the Head Lessor, as lessor, and Sublessor, as lessee, as amended or supplemented from time to time;

"**Head Lessor**" means UMB Bank, National Association, not in its individual capacity, except as expressly set forth in the Head Lease, but solely as owner trustee;

Sublease Agreement (MSN [__])

------

"**IATA**" means the International Air Transport Association or any replacement therefor and/or successor thereto;

"**ICAO**" means the International Civil Aviation Organisation or any replacement therefor and/or successor thereto;

"**Indemnified Taxes**" has the meaning given in Section 3.1.3 of the Sublease;

"**Indemnitee**" means each of Sublessor, Sublessor Parent, Head Lessor, Owner Trustee, the Beneficiary, each [\*\*\*] Entity, each Leveraging Lender, any Security Trustee and all of their respective Affiliates, assigns, successors, officers, directors, partners, employees, duly authorized agents, members and managers;

"**Initial Delivery Inspection**" has the meaning given in paragraph 2.1 of Schedule 2 to the Sublease;

"**Initial Redelivery Inspection**" has the meaning given in paragraph 2.1 of Schedule 6 to the Sublease;

"**Insurances**" means insurances in respect of the Aircraft in form and substance reasonably satisfactory to Sublessor and required to be maintained pursuant to the provisions of Section 16 and Schedule 5 of the Sublease;

"**Landing Gear**" means the landing gear assemblies (and their constituent sub-assemblies and Parts) of the Aircraft, meaning the nose landing gear assembly and the left main landing gear assembly and the right main landing gear assembly; and as the context requires, "Landing Gear" may also mean each of such landing gear assemblies of the Aircraft individually, but excludes any landing gear assembly replaced in accordance with the Sublease title to which has vested in Sublessee pursuant to the Sublease;

"**Landing Gear Overhaul**" means an Overhaul in respect of the Landing Gear;

"**Leveraging Lender**" has the meaning given in Section 27.5 of the Sublease;

"**Leveraging Transaction**" has the meaning given in Section 27.5 of the Sublease;

"**Lien**" means any mortgage, charge, pledge, lien, hypothecation, lease, title retention, assignment, trust arrangement, right of possession or detention or security interest of any kind, howsoever created or arising, including an International Interest (as defined under the Cape Town Convention);

"**Life Limited Part**" means a Hard Time Part which must be removed from service and discarded at or before reaching a maximum life limit, as recommended by the Manufacturer and/or approved/mandated by the Type Authority;

"**LLP**" means a Life Limited Part;

"**LLP Life Limit**" means, with respect to an LLP, the maximum life limit recommended by the Manufacturer and/or approved by the Type Authority;

"**Loss Mitigation Action**" has the meaning given in Section 3.2.3 of the Sublease;

"**Losses**" means any and all claims, damages, losses, liabilities, demands, suits, judgments, causes of action, legal proceedings, whether civil or criminal, penalties,

Sublease Agreement (MSN [__])

------

fines and other sanctions, and any reasonable attorney's fees and other reasonable costs and expenses in connection therewith or in establishing the right to indemnification hereunder, including any of the foregoing arising or imposed with or without the fault or negligence of any Indemnitee (whether passive or active) or under the doctrine of strict or absolute liability;

"**Maintenance Programme**" means (i) Hawaiian's Maintenance Programme; provided that references to the "Maintenance Programme" in the Redelivery Conditions shall be deemed to mean a maintenance program that shall conform as a minimum to the requirements of the MPD but that otherwise conforms to Hawaiian's Maintenance Programme, or (ii) such other Aviation Authority approved maintenance program applicable to the Aircraft as may be approved by Sublessor (acting reasonably) in writing;

"**Major Modifications**" means major modifications as such term would be understood by the FAA and, solely in connection with the Redelivery Conditions, EASA;

"**Manufacturer**" means in relation to the Airframe, the Airframe Manufacturer, in relation to the Engines, the Engine Manufacturer, and, in relation to any Part, the manufacturer of such Part, or its successor in title;

"**Minor Discrepancy**" means a discrepancy which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)does not in aggregate with other Minor Discrepancies have a cost (as agreed between Sublessor and Sublessee) in excess of $[\*\*\*] (including all labour, material and transport costs) to rectify (or such greater amount as Sublessor and Sublessee may agree in writing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)does not affect the safe operation of the Aircraft or cause the Aircraft to be unairworthy or unserviceable as determined by the FAA and having regard to the Master Minimum Equipment List;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)does not affect the eligibility of the Aircraft for, or result in any conditions to, a ferry permit, an export certificate of airworthiness or render the Aircraft ineligible for an FAA certificate of airworthiness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)in respect of a Minor Discrepancy at Delivery, does not impact Sublessee's intended use for the Aircraft and Sublessor has agreed to rectify such discrepancy or to reimburse Sublessee in full in respect thereof for the rectification cost of such discrepancy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)in respect of a Minor Discrepancy at Redelivery, does not impact Sublessor's intended use for the Aircraft (including the intended use of the next operator for the Aircraft) and Sublessee has agreed to pay to Sublessor an agreed amount for the rectification cost of such discrepancy;

"**Minor Modifications**" means minor modifications as such term would be understood by the FAA and, solely in connection with the Redelivery Conditions, EASA;

"**Mortgage**" means any mortgage or similar security interest or pledge granted over the Aircraft by Owner Trustee to a Security Trustee in accordance with the provisions of the Sublease from time to time;

Sublease Agreement (MSN [__])

------

"**MPD**" means (A) solely in connection with the Redelivery Conditions, the latest revision at the applicable time of reference of the Maintenance Planning Document published by the Manufacturer in respect of aircraft of the same type as the Aircraft; a reference to the MPD shall be understood to include a reference to requirements that may be published in any separate document referenced in the MPD (e.g. certification maintenance requirements, airworthiness limitation section, etc.) and a reference to the instructions for continued airworthiness for any incorporated repairs or modifications (including the P2F Conversion) and (B) in all instances other than in connection with the Redelivery Conditions, (i) Hawaiian's Maintenance Programme or (ii) such other Aviation Authority approved maintenance programme applicable to the Aircraft as may be approved by Sublessor (acting reasonably) in writing;

"**MSN**" means the Manufacturer's serial number as assigned by the relevant Manufacturer to the Airframe, an Engine or a Part (or any other applicable airframe, engine or part);

"**OFAC**" means the Office of Foreign Assets Control, Department of the US Treasury;

"**Operating Destination**" has the meaning given in paragraph 4.1 of Schedule 2 to the Sublease;

"**Other Agreement**" means any or all, as the context may require, of any Other Lease Agreement and any Other Transaction Document;

"**Other Aircraft**" means any or all, as the context may require, of the aircraft listed in schedule 8 to the Sublease, but only if, and for so long as (i) such aircraft is under common direct or indirect ownership with the Aircraft and (ii) if the Aircraft is then subject to a financing transaction, such aircraft is also subject to such financing transaction;

"**Other Lease Agreement**" means any aircraft lease agreement relating to an Other Aircraft entered into between (i) Sublessor and (ii) Sublessee;

"**Other Transaction Document**" means, in relation to any Other Aircraft, any Transaction Document (as defined in the Other Lease Agreement relating to such Other Aircraft) relating to such Other Aircraft;

"**Overdue Sum**" means any amount which is not paid when due under or pursuant to the Sublease;

"**Overhaul**" means the work necessary to return a part (including a Part) to the highest standard specified in the relevant overhaul manual or component maintenance manual;

"**Owner Trustee**" means Head Lessor in its capacity as owner of the Aircraft or any successor trust company permitted in accordance with Section 3.04 of the Trust Agreement.

"**P2F and Final Delivery Check Records**" has the meaning given in paragraph 2.1.1 of Schedule 2 to the Sublease;

Sublease Agreement (MSN [__])

------

"**P2F Conversion**" means the conversion of the Aircraft from its passenger configuration to a freighter configuration pursuant to a Supplemental Type Certificate held by the P2F Converter and approved by EASA and the FAA;

"**P2F Conversion Agreement**" means an agreement entered into, or to be entered into, between Beneficiary and [\*\*\*] under which the Aircraft shall undergo the P2F Conversion;

"**P2F Converter**" means either or both, as the context may require, of (i) [\*\*\*] and (ii) any subcontractor performing some or all of the work comprising the P2F Conversion in accordance with the terms of the P2F Conversion Agreement;

**"Part**" means, (whether or not installed on the Aircraft, the Airframe, or any Engine) any auxiliary power unit, any landing gear, any appliances, accessories, computers, instruments, avionics, assemblies, modules, components, seats, galleys, lavatories and other items of equipment of whatever nature (other than a complete Engine), together with any necessary operating software (including loadable aircraft software parts or their equivalent), which are furnished with the Aircraft, the Airframe or any Engine on the Delivery Date or that may thereafter be incorporated or installed in or become attached to the Aircraft, the Airframe or any Engine, title to which has vested in Owner Trustee pursuant to the Sublease and, where the context requires, such of the Aircraft Documents as relate thereto but excludes any such items title to which has passed to Sublessee pursuant to the Sublease;

"**Participation Agreement**" means that certain participation agreement dated as of December 7, 2021, among Sublessor, Owner Trustee and Beneficiary;

"**Party**" means Sublessor or Sublessee and "Parties" shall mean both Sublessor and Sublessee;

"**Payment Account**" means the account specified in Schedule 4 to the Sublease or such other account designated in writing by Sublessor;

"**Payment Date**" means the first day of each Rental Period or, if such day is not a Business Day, the immediately succeeding Business Day;

"**Permitted Lien**" means any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)of the respective rights of Owner Trustee, Beneficiary, Sublessor and Sublessee as provided in the Transaction Documents, the Head Lease, the Participation Agreement and the Trust Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Sublessor Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Lien for Taxes which have not yet been assessed or are not yet due and payable or which are being contested in good faith by appropriate proceedings so long as such proceedings do not involve any material risk of the sale, forfeiture or loss of the Aircraft, the Airframe or any Engine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Lien in favour of an airport hangar keeper, workman, mechanic, maintenance provider, material man, employee, carrier or repairer or any other similar encumbrances arising in the ordinary course of business in respect of obligations which are not yet due and payable or which are being contested in good faith by appropriate proceedings so long as such

Sublease Agreement (MSN [__])

------

proceedings do not involve any material risk of the sale, forfeiture or loss of the Aircraft, the Airframe, any Engine, any APU or any Landing Gear;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Lien for airport, navigation and en-route charges arising in the ordinary course of business and for amounts the payment of which is either not yet delinquent or is being contested in good faith by appropriate proceedings so long as such proceedings do not involve any material risk of the sale, forfeiture or loss of the Aircraft, the Airframe or any Engine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Lien of insurers for salvage or similar rights of insurers under insurances policies required hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Lien (other than Liens for Taxes) arising out of any judgment or award (1) for which remains undischarged, unvacated or not reversed for less than [\*\*\*] days after the entry of such judgment or award, or if earlier, no later than the last day of the Sublease Period; or (2) during an appeal or review regarding such judgment or award with respect to which there shall have been secured a stay of execution pending such appeal or review, and in each case, provided that during such period, there is no material risk of the sale, forfeiture, confiscation, distraint, seizure or loss of the Aircraft, the Airframe or any Engine or any risk of criminal liability or material risk of civil penalty against Sublessor, Owner Trustee or Beneficiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)of the respective rights of Head Lessor any Security Trustee or any Leveraging Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any Lien arising out of any leveraging transaction or financing entered into by any Indemnitee;

"**PMA Part**" means a part which has not been approved for use on the Airframe or on an Engine by the relevant Manufacturer (even if such part is manufactured under an FAA Parts Manufacturer Approval or is approved under EASA Part 21);

"**Person**" means any individual person, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, trustee, unincorporated organization or government;

"**Previous Operator**" means [\*\*\*];

"**Records Location**" means the principal place of business of the Sublessee under the Sublease as notified by Sublessee to Sublessor prior to Delivery or such other location in the United States as is notified by Sublessee to Sublessor or, if the Aircraft is registered in a jurisdiction outside the United States of America, such location in the jurisdiction of the principal place of business of Sublessee as is notified by Sublessee to Sublessor; provided that to the extent any Aircraft Documents are maintained in an electronic format, the Records Location thereof shall be the third-party platform utilized by Sublessee to store digital aircraft records which shall be deemed to be located at Sublessee's principal place of business;

"**Redelivery**" means the redelivery of the Aircraft by Sublessee to Sublessor in accordance with the requirements of the Sublease;

"**Redelivery Conditions**" means the procedures and conditions specified in Schedule 6 to the Sublease;

Sublease Agreement (MSN [__])

------

"**Redelivery Final Technical Acceptance**" has the meaning given in paragraph 3.4 of Schedule 6 to the Sublease;

"**Redelivery Historical Records**" has the meaning given in paragraph 2.1.1 of Schedule 6 to the Sublease;

"**Redelivery Initial Technical Acceptance**" has the meaning given in paragraph 1 in Schedule 6 to the Sublease;

"**Redelivery Initial Technical Acceptance Location**" means a location designated by Sublessee which shall be the location where the Final Redelivery Check will be completed;

"**Redelivery Location**" means the Redelivery Painting Location or such other location as may be agreed in writing by Sublessor and Sublessee in order to minimise any Taxes;

"**Redelivery Paint Positioning Flight**" has the meaning given in paragraph 3.6 of Schedule 6 to the Sublease;

"**Redelivery Painting Location**" means the location designated by Sublessor at which the livery painting of the Aircraft shall be completed prior to Redelivery (which may be the same as the Redelivery Initial Technical Acceptance Location);

"**Redelivery Positioning Flight**" has the meaning given in paragraph 4.1 of Schedule 6 to the Sublease;

"**Regulations**" has the meaning given in Section 11.2.10 of the Sublease;

"**Related Indemnitee Group**" with respect to any Indemnitee means each of the individual persons acting as agents, officers, employees and directors of such Indemnitee;

"**Rental**" means all amounts of Base Rental payable pursuant to the Sublease;

"**Rental Period**" means each period ascertained in accordance with Section 7.3 of the Sublease;

"**Replacement Engine**" has the meaning given in Section 15.2.1 of the Sublease;

"**Required Engine Build Level**" has the meaning given in the definition of "Engine Performance Restoration";

"**Scheduled Delivery Date**" means (i) [__] or (ii) such other date as may be agreed in writing between Sublessor and Sublessee;

"**Scheduled Termination Date**" means the date falling 120 months after the Delivery Date;

"**Security Trustee**" means an entity holding a security interest in, to and under the Aircraft, for the benefit of one or more Leveraging Lenders in accordance with Section 27.5 of the Sublease;

"**Serviceable Tag**" means an FAA form 8130-3;

Sublease Agreement (MSN [__])

------

"**Servicer**" has the meaning given in Section 29 of the Sublease;

"**Specification**" means the specification as described in schedule 7 to the Sublease;

"**SRM**" means the latest revision, at the applicable time of reference, of the Structural Repair Manual published by the Manufacturer in respect of the Aircraft;

"**State of Organization**" means the jurisdiction of incorporation of Sublessee;

"**State of Registration**" means the United States of America or such other jurisdiction as the Aircraft may be registered in from time to time pursuant to the provisions of the Sublease;

"**Sublease**" means this Aircraft Sublease Agreement, including all appendices, exhibits and schedules hereto, as the same may be amended from time to time;

"**Sublease Assignment**" means the assignment by Sublessor of its rights under the Sublease granted by Sublessor in favour of Owner Trustee in accordance with Section 2.4.3 of Schedule 9 to the Sublease;

"**Sublease Period**" means the period commencing on the Delivery Date and ending on the Termination Date;

"**Sublessee Conditions Precedent**" means each of the items listed in Part B of Schedule 9 to the Sublease;

"**Sublessee Consent**" has the meaning given in Schedule 9 to the Sublease;

"**Sublessee Indemnitee**" means each of Sublessee, Head Lessor, Owner Trustee, the Beneficiary, each Altavair Entity, each Leveraging Lender, any Security Trustee and all of their respective Affiliates, assigns, successors, officers, directors, partners, employees, duly authorized agents, members and managers;

"**Sublessor Conditions Precedent**" means each of the items listed in Part A of Schedule 9 to the Sublease;

"**Sublessor Lien**" means any Lien on the Aircraft, any Engine or any Part or on the Sublease or any interest therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)arising from any Loss against Sublessor, Owner Trustee, Beneficiary, or any Indemnitee or any Affiliate of Sublessor, Owner Trustee or Beneficiary that is unrelated to the transactions contemplated by the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)arising or attributable to any act, claim, event, condition or circumstance existing prior to the Delivery Date or from any acts or omissions of Sublessor, Owner Trustee, any Indemnitee or Beneficiary, as applicable which is not related to the transactions contemplated by, or is in violation of the terms of, the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)arising from Taxes or Loss imposed against Sublessor, Owner Trustee, Beneficiary or any Indemnitee, as applicable, which are not indemnified against by Sublessee pursuant to the Transaction Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)arising from Taxes or Loss imposed against Sublessor, Owner Trustee, any Indemnitee or Beneficiary, as applicable, arising out of any voluntary or

Sublease Agreement (MSN [__])

------

involuntary transfer (other than (i) any transfer pursuant to the exercise of remedies in accordance with Section 19 of the Sublease in connection with an Event of Default that shall have occurred and be continuing, and (ii) any transfer pursuant to Section 14, 15 or 17 of the Sublease) by Sublessor, Owner Trustee, any Indemnitee or Beneficiary, as applicable, of its respective interest in the Aircraft, any Engine or any Part or any interest arising under the Sublease, including, without limitation, by means of granting a security interest therein,

provided that an arrangement expressly permitted by Section 27.5 of the Sublease shall not constitute a Sublessor Lien so long as such arrangement remains compliant with Section 27.5 of the Sublease;

"**Sublessor Parent**" means Amazon.com, Inc.;

"**Tax Indemnitee**" means each of Sublessor, Sublessor Parent, Head Lessor, Owner Trustee, the Beneficiary, and all of their respective assigns, successors, officers, directors, shareholders, affiliates, subsidiaries, partners, employees, duly authorized agents, members and managers;

"**Tax Indemnitee Controlled Contest**" has the meaning given in Section 3.1.3 of the Sublease;

"**Tax Mitigation Action**" has the meaning given in Section 3.1.3 of the Sublease;

"**Taxes**" means any and all present and future taxes (including, without limitation, sales, use, business, gross or net income, personal property, license, documentation, transfer, occupational, value added, turnover, excess profits, excise, gross receipts, franchise, stamp, registration and other taxes), levies, imposts, withholdings, fees, assessments, duties and other charges of any nature, and any penalties, fines, additions to tax, interest or other charges related thereto which are imposed, levied, withheld or assessed by any Governmental Entity or other taxing authority in any jurisdiction or by any international or multinational taxing or regulatory authority, and "**Tax**" shall be construed accordingly;

"**Termination Date**" means the Scheduled Termination Date or, if earlier (i) the date of any cancellation or termination of the right of Sublessee to lease the Aircraft hereunder pursuant to the provisions of the Sublease (including, without limitation, on the Early Termination Date) or (ii) subject to the provisions of Sections 17.1.1 and 17.2 of the Sublease, the date when Sublessor (or upon its request, Head Lessor) receives the Agreed Value together with any other amounts then due and unpaid under the Sublease following a Total Loss; provided that if the Sublease Period is extended pursuant to Section 20.3 of the Sublease, the Termination Date shall be the date on which the Aircraft is redelivered to Sublessor in full compliance with the Sublease;

"**TGT Margin**" means Turbine Gas Temperature Margin and is Rolls-Royce terminology equivalent to EGT Margin;

"**Thrust Rating**" means with respect to an engine (including an Engine) the take-off thrust rating for which such engine is configured for operation;

Sublease Agreement (MSN [__])

------

"**Total Loss**" means any of the following events with respect to the Aircraft (including for the purposes of this definition the Airframe):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)its agreed, actual, arranged, compromised, or constructive total loss of such item (including any damage to the same which results in an insurance settlement on the basis of a total loss); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the requisition for hire or use of the same by any Governmental Entity that does not constitute the taking of title to the same for a period in excess of nine consecutive months (or, if earlier, the Termination Date); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)determination that the same has been destroyed, damaged beyond economic repair or rendered permanently unfit for normal use by an airline for any reason whatsoever; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the requisition of title or other compulsory acquisition, condemnation or confiscation for any reason of such item by a Governmental Entity or other competent authority, whether de jure or de facto, but shall exclude requisition for use or hire not involving requisition of title of such item; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the hijacking, theft, or disappearance of such item for a period of [\*\*\*] days or more; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)the condemnation, confiscation, capture, deprivation, seizure of the same or the deprivation of the possession or use of the same as a result of any law or other action by the Aviation Authority or any Governmental Entity (other than where the same amounts to the circumstances provided in clause 5.3) which deprives any person entitled to have possession or use of the item of its possession or use for more than a period of [\*\*\*] consecutive days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)impairment of Head Lessor's title to an Engine in connection with pooling such Engine or installation of such Engine on another airframe pursuant to Section 15.6.2; or

A Total Loss with respect to the Aircraft shall be deemed to have occurred if a Total Loss occurs with respect to the Airframe;

"**Total Loss Date**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)with respect to any Total Loss set forth in paragraph (a) of the definition thereof, the earliest of (i) the date of actual loss; (ii) the date on which the loss is agreed, arranged or compromised by the insurers and (iii) [\*\*\*] days after the date of notice to Sublessee's brokers or insurers claiming the loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)with respect to any Total Loss set forth in paragraph (c) or (d) of the definition thereof, the date such event, condition or circumstance occurs or, if such date is not known, the date on which the relevant property was last known to exist; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)with respect to any Total Loss set forth in paragraph (b), (e) or (f) of the definition thereof, the earlier of (i) the date on which insurers make payment on the basis of a Total Loss and (ii) the expiration of the period described therein;

Sublease Agreement (MSN [__])

------

"**Transaction Documents**" means the Sublease, the ATSA, the Acceptance Certificate, the Sublessee Consent<sup>2</sup>, together with any schedules, exhibits or annexes to any of the foregoing and any side letters, supplements, amendments or modifications to any of the foregoing from time to time;

"**Transition**" means Delivery and/or Redelivery, as applicable;

"**Transportation Code**" means that portion of Title 49 of the United States Code comprising those provisions formerly referred to as the Federal Aviation Act of 1958, as amended, or any subsequent legislation that amends, supplements or supersedes such provisions;

"**Trust Agreement**" means the trust agreement entered into, or to be entered into, between UMB Bank, N.A., in its individual capacity, and the Beneficiary;

"**Trust Company**" means (i) UMB Bank, National Association, a national banking association, in its individual capacity, or (ii) if UMB Bank, National Association, a national banking association, is not then serving as the owner trustee under the Trust Agreement, the successor owner trustee in its individual capacity;

"**Trust Estate**" has the meaning given to it in the Trust Agreement;

"**TSN**" means Time Since New meaning the total Flight Hours accumulated on the relevant Aircraft, Airframe, Engine or Part (or any other applicable engine or part) since new manufacture;

"**Type Authority**" means (A) solely in connection with the Redelivery Conditions and with Section 15.1.13 of the Sublease, the authority or agency from time to time responsible for the approval and certification of aircraft and/or engine type designs in the State of Design (as such expression is defined in Annex 8 of the Convention on International Civil Aviation) of the Aircraft, which means EASA in respect of the Airframe and EASA in respect of the Engines and (B) in all other instances, the FAA; and

"**Wetlease**" means any arrangement whereby Sublessee agrees to furnish the Aircraft to a third party pursuant to which the Aircraft shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)operated pursuant to Sublessee's air operator's certificate and solely by regular employees of Sublessee possessing all current licences and certificates that are required by applicable law and the Aviation Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)subject to the coverage afforded by the Insurances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)maintained by Sublessee in accordance with the Maintenance Programme and the Sublease.

1.2**Construction** In each Transaction Document, unless the context otherwise requires or it is otherwise expressly provided:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1references to clauses, paragraphs, Sections, Exhibits, Schedules, Annexes and Appendices shall be construed as references to clauses, paragraphs and Sections of and Exhibits, Schedules, Annexes and Appendices to the applicable Transaction Document;

<sup>2</sup> NTD – To add any Airframe Warranties Agreement or Engine Warranties Agreement that may be applicable.

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2references to "this Agreement" or to any other document shall include references to the applicable Transaction Document, its Recitals, its Schedules, its Appendices, its Exhibits, its Annexes or to such other document as amended, varied, supplemented, wholly or partially novated, replaced and/or restated in any manner from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3subject to Section 22 of the Sublease, references to any person shall, where relevant, be deemed to be references to or to include, as appropriate, their respective lawful and permitted successors, assigns or transferees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.4references to a "person" shall include any individual, company, corporation, firm, partnership, joint venture, department, association, organisation, institution, authority, trust or agency whether or not having a separate legal personality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.5references to any enactment shall be deemed to include references to such enactment as re-enacted, substituted, amended or extended and any subordinate legislation, rules, regulations or interpretations made under or pursuant to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.6references to one gender shall include all genders and references to the singular shall include the plural and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.7references to the "assets" of any person shall be construed as a reference to the whole or any part of its business, undertaking, property, shareholdings, assets and revenues (including any right to receive revenues and uncalled capital);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.8references to "including" and "in particular" shall not be construed restrictively but shall mean "including, without prejudice to the generality of the foregoing" and "in particular, but without prejudice to the generality of the foregoing" respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.9references to "law" shall include any present or future common law, statute, statutory instrument, treaty, regulation, directive, judgment, order, decree, other legislative measure, code, circular, notice, demand or injunction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.10references to the "Aircraft" shall constitute a separate reference to the Airframe, Engines, any Part and any of the Aircraft Documents, as the context may permit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.11headings and sub-headings are inserted for convenience only and shall be ignored in construing any Transaction Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.12words or expressions defined in a Transaction Document in a clause other than this Annex A shall bear the same meaning throughout such Transaction Document unless otherwise provided in such clause or unless the context otherwise requires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.13no presumption shall arise respecting the interpretation of a Transaction Document due to the identity of the person who prepared such Transaction Document;

Sublease Agreement (MSN [__])

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.14references to a manual issued by the Airframe Manufacturer shall be deemed to include reference to any applicable P2F Supplement issued by the P2F Converter in respect of any P2F Affected Area; and references to recommendations or approvals of the Airframe Manufacturer shall be deemed a reference to recommendation or approval (as applicable) of the P2F Converter in respect of any P2F Affected Area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.15references to approval by an airworthiness authority (the Aviation Authority, the Type Authority, EASA or the FAA) shall mean either (i) direct approval by such authority, or (ii) approval by an entity approved by such authority to grant the relevant approval, or (iii) approval by such authority conferred pursuant to a published order of such authority, or (iv) approval based on a procedure approved by such authority, or (v) approval by such authority conferred by a relevant bilateral agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.16references to an accident or incident are intended to refer to accidents or serious incidents as would be defined by Annex 13 to the Convention on International Civil Aviation (but without regard to whether or not any person was on board at the time of such accident or incident) causing actual damage to the Aircraft, the Airframe, an Engine, a Part, a Replacement Engine or a replacement part, which would prevent Sublessee or any other person having adequate knowledge and acting reasonably from issuing an Accident/Incident Statement of the type referenced in item C01 of Schedule 3 to the Sublease indicating that such Aircraft, Airframe, Engine, Part, Replacement Engine or replacement part, as applicable, has not been involved in any accident or incident during the applicable period of operation unless its airworthiness status was re-established by an approved maintenance organization in accordance with the applicable airworthiness regulations and instructions of the relevant type certificate holder and/or supplemental type certificate holder and/or Manufacturer, and supported by an authorized airworthiness release certificate.

Sublease Agreement (MSN [__])

## Exhibit 21.1

**Exhibit 21.1**

**LIST OF SUBSIDIARIES OF HAWAIIAN HOLDINGS, INC.**

Hawaiian Airlines, Inc.

Hawaiian Airlines Foundation

Hawaiian Finance 1, Ltd.

Hawaiian Finance 2, Ltd.

Hawaiian Brand Intellectual Property, Ltd. (Cayman Island exempted company)

HawaiianMiles Loyalty, Ltd. (Cayman Island exempted company)

Hawaiian Gifts, LLC

Airlines Contract Maintenance and Equipment, Inc.

Aviation Legacy, LLC

HA 3049 Ualena Street, LLC

Elliott Street Holdings, Inc.

Aviation Legacy, LLC

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Registration Statement (Form S-8 No. 333-127731),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Registration Statement (Form S-8 No. 333-127732),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Registration Statement (Form S-8 No. 333-172356),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Registration Statement (Form S-8 No. 333-204383),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Registration Statement (Form S-3 No. 333-242409),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Registration Statement (Form S-3 No. 333-268473);

of our reports dated February 15, 2023, with respect to the consolidated financial statements and schedule of Hawaiian Holdings, Inc. and the effectiveness of internal control over financial reporting of Hawaiian Holdings, Inc., included in this Annual Report (Form 10-K) of Hawaiian Holdings, Inc. for the year ended December 31, 2022.

/s/ ERNST & YOUNG LLP

Honolulu, Hawai'i

February 15, 2023

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Peter R. Ingram, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Annual Report on Form 10-K of Hawaiian Holdings, Inc.;

2.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Date: | February 15, 2023 | By: | /s/ PETER R. INGRAM |
|  |  |  | Peter R. Ingram<br> *President and Chief Executive Officer* |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, Shannon L. Okinaka, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Annual Report on Form 10-K of Hawaiian Holdings, Inc.;

2.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Date: | February 15, 2023 | By: | /s/ SHANNON L. OKINAKA |
|  |  |  | Shannon L. Okinaka<br> *Executive Vice President, Chief Financial Officer and Treasurer* |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 10-K of Hawaiian Holdings, Inc. (the Company) for the period ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Peter R. Ingram, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | | |
|:---|:---|:---|:---|
| Date: | February 15, 2023 | By: | /s/ PETER R. INGRAM |
|  |  |  | Peter R. Ingram<br> *President and Chief Executive Officer* |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 10-K of Hawaiian Holdings, Inc. (the Company) for the period ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Shannon L. Okinaka, Executive Vice President, Chief Financial Officer and Treasurer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | | |
|:---|:---|:---|:---|
| Date: | February 15, 2023 | By: | /s/ SHANNON L. OKINAKA |
|  |  |  | Shannon L. Okinaka<br> *Executive Vice President, Chief Financial Officer and Treasurer* |

---

<br>