Document:

Exhibit 4.8 

	 

 

PARTICIPATION AGREEMENT

 

(MSN 6698)

 

Dated as of July 29, 2015

 

among

 

LATAM AIRLINES GROUP S.A.,

 

PARINA LEASING LIMITED,

 

WILMINGTON TRUST COMPANY,

as Pass Through Trustee under each of the

Pass Through Trust Agreements,

 

WILMINGTON TRUST COMPANY,

as Subordination Agent,

 

WILMINGTON TRUST COMPANY,

as Loan Trustee,

 

and

 

WILMINGTON TRUST COMPANY,

in its individual capacity as set forth
herein

 

*

 

One Airbus A321-200 Model Aircraft

Chilean Registration No. CC-BEE

 

	 

 

     

     

    

  

Table of Contents

 

	 	Page
	 	 
	ARTICLE I DEFINITIONS	2
	 	 
	Section 1.01. Definitions	2
	 	 
	ARTICLE II THE FINANCING	2
	 	 
	Section 2.01. The Loans.	2
	Section 2.02. Issuance of Equipment Notes.	2
	Section 2.03. The Lease	3
	Section 2.04. The Closing	3
	 	 
	ARTICLE III CONDITIONS PRECEDENT	3
	 	 
	Section 3.01. Conditions Precedent to Obligations of the Pass Through Trustees	3
	Section 3.02. Conditions Precedent to Obligations of the Owner	10
	 	 
	ARTICLE IV REPRESENTATIONS, WARRANTIES AND INDEMNITIES	11
	 	 
	Section 4.01. Representations and Warranties of the Owner	11
	Section 4.02. Representations and Warranties of LATAM	14
	Section 4.03. General Indemnity	16
	Section 4.04. General Tax Indemnity	22
	Section 4.05. Payments	32
	Section 4.06. Interest.	32
	Section 4.07. Benefit of Indemnities.	32
	Section 4.08. Certain Payments	32
	 	 
	ARTICLE V REPRESENTATIONS, WARRANTIES AND COVENANTS OF WTC	33
	 	 
	Section 5.01. Representations, Warranties and Covenants of WTC	33
	 	 
	ARTICLE VI OTHER COVENANTS AND AGREEMENTS	36
	 	 
	Section 6.01. Other Agreements	36
	Section 6.02. Certain Covenants of the Owner	38

 

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	Section 6.03. Certain Covenants of LATAM	40
	 	 
	ARTICLE VII MISCELLANEOUS	43
	 	 
	Section 7.01. Notices	43
	Section 7.02. Survival of Representations, Warranties, Indemnities, Covenants and Agreements	43
	Section 7.03. Governing Law	44
	Section 7.04. Severability	44
	Section 7.05. No Oral Modifications or Continuing Waivers; Consents	44
	Section 7.06. Effect of Headings and Table of Contents	44
	Section 7.07. Successors and Assigns.	44
	Section 7.08. Benefits of Agreement	45
	Section 7.09. Counterparts	45
	Section 7.10. Submission to Jurisdiction	45
	Section 7.11. No Petition	46
	Section 7.12. Normal Commercial Relations	46
	Section 7.13. No Waiver	46
	Section 7.14. Further Assurances.	47
	Section 7.15. Limited Recourse	47

 

	Schedule I	-	Certain Terms
	Schedule II 	-	Equipment Notes, Purchasers and Original Principal Amounts
	Schedule III	-	Trust Supplements
	 	 	 
	Exhibit A-1	-	Form of Opinion of NY Counsel for the Owner, Lessee
	Exhibit A-2	-	Form of Opinion of In-House Counsel for Lessee
	Exhibit A-3	-	[Reserved].
	Exhibit A-3	-	Form of Opinion of Special Florida counsel
	Exhibit B	-	Form of Opinion of Special Counsel for the Loan Trustee, the Pass Through Trustees, the Subordination Agent and WTC
	Exhibit C-1	-	Form of Opinion of Special Chilean Counsel
	Exhibit C-2	-	[Reserved].
	Exhibit C-3 	-	[Reserved].
	Exhibit D	-	Form of Opinion of Special Cayman Islands Counsel
	 	 	 
	Annex A	-	Definitions

 

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PARTICIPATION AGREEMENT

 

(MSN 6698)

 

This PARTICIPATION
AGREEMENT (MSN 6698) (“Agreement”), dated as of  July
29, 2015, is made by and among LATAM AIRLINES GROUP S.A., a corporation organized under the laws of the Chile (together
with its successors and permitted assigns, “LATAM” or the “Lessee”), PARINA LEASING LIMITED,
an exempted company with limited liability incorporated under the laws of the Cayman Islands (together with its successors and
permitted assigns, the “Owner”), WILMINGTON TRUST COMPANY, a Delaware trust company (in its individual capacity,
together with its successors and permitted assigns, “WTC”), not in its individual capacity except as otherwise
expressly provided in any of the Financing Agreements or the Pass Through Documents, but solely as Pass Through Trustee under each
of the Pass Through Trust Agreements (such terms and other capitalized terms used herein without definition being defined as provided
in Section 1.01), WILMINGTON TRUST COMPANY, a Delaware trust company, as subordination agent and trustee (in such capacity, together
with any successor trustee in such capacity, the “Subordination Agent”) under the Intercreditor Agreement,
and WILMINGTON TRUST COMPANY, a Delaware trust company as loan trustee (in such capacity, together with any successor trustee in
such capacity, the “Loan Trustee”) under the Indenture.

 

WITNESSETH:

 

WHEREAS, the
Owner is the owner of that certain aircraft of the make and model set forth in Schedule I hereto as more particularly described
in the Indenture Supplement originally executed and delivered under the Indenture;

 

WHEREAS, concurrently
with the execution and delivery of this Agreement, the Owner and the Loan Trustee are entering into the Indenture, pursuant to
which, among other things, the Owner will issue two separate series of Equipment Notes, which Equipment Notes are to be secured
by a security interest in all right, title and interest of the Owner in and to the Aircraft and certain other property described
in the Indenture;

 

WHEREAS, pursuant
to the Basic Pass Through Trust Agreement and each of the Trust Supplements set forth in Schedule III hereto, the Pass Through
Trusts in existence as of the date hereof were created and the Pass Through Certificates issued and sold;

 

WHEREAS, pursuant
to the Intercreditor Agreement, the Subordination Agent will hold the Equipment Notes on behalf of the Pass Through Trusts;

 

WHEREAS, concurrently
with the issuance of the Equipment Notes the Owner will lease the Aircraft to the Lessee;

 

     

     

    

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual agreements herein contained, and of other good and valuable consideration
the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01.
Definitions. For the purposes of this Agreement, unless the context otherwise requires, capitalized terms used but not defined
herein shall have the respective meanings set forth or incorporated by reference in Annex A.

 

ARTICLE II

 

THE FINANCING

 

Section
2.01. The Loans. Subject to the terms and conditions of this Agreement and the other Financing Documents, on the Closing
Date, the Pass Through Trustee for each Pass Through Trust in existence as of the Closing Date shall make a loan to the Owner by
paying to the Owner the aggregate original principal amounts of the Equipment Notes being issued to such Pass Through Trust as
set forth on Schedule II opposite the name of such Pass Through Trust. The Pass Through Trustees, on behalf of the Pass
Through Trusts in existence as of the Closing Date, shall make such loans to the Owner no later than 10:00 a.m. (New York City
time) on the Closing Date by transferring such amount in immediately available funds to Airbus at its account:

 

	Account Name:	AIRBUS SAS Account 
	Number/IBAN:	0200210962USD00170
	Bank Name 	BNP Paribas
	Bank Address:	BNP Paribas, 787 seventh avenue, New York, NY, 10019
	BIC SWIFT :	BNPAUS3NXXX
	ABA / Branch Code :	026007689

 

Section 2.02.
Issuance of Equipment Notes. Upon the occurrence of the above payments by the Pass Through Trustee for each Pass Through
Trust in existence as of the Closing Date to the Owner, the Owner shall issue, pursuant to and in accordance with Article II of
the Indenture, to the Subordination Agent as agent and trustee for the Pass Through Trustee for each such Pass Through Trust, one
or more Equipment Notes of the Series, maturity and aggregate original principal amount and bearing the interest rate set forth
in Schedule II opposite the name of such Pass Through Trust. Each such Equipment Note shall be duly authenticated
by the Loan Trustee pursuant to the Indenture, registered in the name of the Subordination Agent and dated the Closing Date and
shall be delivered by the Loan Trustee to the Subordination Agent. In addition, subject to Section 4(b)(iv) of the Note Purchase
Agreement and Section 8.01(c) or 8.01(d) of the Intercreditor Agreement, as applicable, the Lessee shall have the option after
the Closing Date, from time to time, to cause the Owner (i) to redeem all but not less than all of the Series B Equipment Notes
(or all but not less than all of any Additional Series Equipment Notes) and to issue under the Indenture new Equipment Notes with
the same Series designation as, but with terms that may be the same as or different from those of, the redeemed Equipment Notes
and (ii) to issue one or more series of Additional Series Equipment Notes under the Indenture. If new Series B Equipment Notes
or Additional Series Equipment Notes are so issued after the Closing Date, each Noteholder of such Equipment Notes shall be deemed
to be a party hereto without further act, and shall be entitled to execute, and at the request of the Lessee shall execute, a counterpart
to this Agreement.

 

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Section 2.03. The Lease.
Subject to the terms and conditions of this Agreement and the other Financing Documents, on the Closing Date, the Owner shall lease
the Aircraft to the Lessee under the Lease.

 

Section 2.04.
The Closing. The closing (the “Closing”) of the transactions contemplated hereby shall take place at
the offices of Clifford Chance US LLP, 31 West 52nd Street, New York, NY 10019 at 10:00 a.m.
(New York City time) on July, 29, 2015, or at such other time or place as the parties shall agree.

 

ARTICLE III

 

CONDITIONS PRECEDENT

 

Section
3.01. Conditions Precedent to Obligations of the Pass Through Trustees. The obligation of each Pass Through Trustee of
each Pass Through Trust in existence as of the Closing Date to make the loan contemplated by Article II is subject to the
fulfillment (or the waiver by such Pass Through Trustee) prior to or on the Closing Date of the following conditions
precedent:

 

(a)          Authentication.
The Owner shall have tendered the Equipment Notes being issued on the Closing Date to the Loan Trustee for authentication, and
the Loan Trustee shall have authenticated such Equipment Notes and shall have tendered such Equipment Notes to the Subordination
Agent on behalf of the applicable Pass Through Trustee, against receipt of the loan proceeds, in accordance with Section 2.02.

 

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(b)          No
Changes in Law. No change shall have occurred after the date of this Agreement in applicable law or regulations thereunder
or interpretations thereof by appropriate regulatory authorities or any court that would make it a violation of law or governmental
regulations for such Pass Through Trustees to make the loans contemplated by Section 2.01 or to acquire the Equipment Notes or
to realize the benefits of the security afforded by the Indenture or any of the other Security Documents.

 

(c)          Documentation.
This Agreement and the following documents shall have been duly authorized, executed and delivered by the respective party or parties
thereto (other than the Pass Through Trustees or the Loan Trustee), shall be in full force and effect and executed counterparts
(or copies thereof where indicated) thereof shall have been delivered to each Pass Through Trustee:

 

(i)          the
Intercreditor Agreement;

 

(ii)         each
Pledge Agreement, each Put Option Agreement and each Call Option Agreement;

 

(iii)        each
Note Guarantee;

 

(iv)        the
Liquidity Facilities in effect as of the Closing Date;

 

(v)         the
Pass Through Trust Agreements in effect as of the Closing Date;

 

(vi)        the
Indenture;

 

(vii)       the
Local Mortgage;

 

(viii)      the
Assignment of Insurances;

 

(ix)         the
Lease along with the Lease Supplement and the Acceptance Certificate and chattel paper originals thereof;

 

(x)          [Reserved].

 

(xi)         the
Warranty Assignments;

 

(xii)        [Reserved].

 

(xiii)       a
copy of the Warranty Bill of Sale;

 

(xiv)      a
valid Lessee Power of Attorney and Lessor Power of Attorney; and

 

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(xv)       [a
copy of a current, valid Export Certificate of Airworthiness duly issued by the EASA.]

 

(d)          Perfection
Requirements.

 

(i)          Financing
Statements (Indenture and Aircraft Security Documents). A Uniform Commercial Code financing statement or statements
covering the security interest created by the Indenture, and the Aircraft Security Documents, naming the Owner or LATAM, as applicable,
as debtor, and the Loan Trustee, as secured party, shall have been duly filed in all places necessary or desirable within the District
of Columbia and the State of Florida.

 

(ii)         Financing
Statement (Lease). A Uniform Commercial Code financing statement or statements covering the security interest created by the
Lease, naming LATAM, as debtor, Owner, as secured party and the Loan Trustee, as assignee of the secured party, shall have been
duly filed in all places necessary or desirable within the State of Florida.

 

(iii)        Chilean
Perfection Requirements. Evidence that all authorizations necessary for any matter or thing contemplated by the Aircraft Security
Documents and for the legality, validity, enforceability, admissibility in evidence and effectiveness of the Aircraft Security
Documents have been obtained or effected on an unconditional basis and remain in full force and effect (or, in the case of effecting
of any registrations and filings, that arrangements satisfactory to Loan Trustee have been made for the effecting of the same simultaneous
with delivery of the Aircraft), including but not limited to, filing with the Aviation Authority of the following documents:

 

(A)         Bill
of Sale over the Aircraft;

 

(B)         Certificate
of Cancelation of prior registration of the Aircraft or Certificate evidencing no prior registration exists;

 

(C)         Export
Certificate of Airworthiness;

 

(D)         InvoiceissuedinrespectoftheAircraftbythe
Manufacturer in the name of the Owner;

 

(E)         Lease;

 

(F)         Local
Mortgage; and

 

(G)         Any
other document the Aviation Authority may require.

 

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(iv)
        
[Reserved].

 

(e)
          Certain
Closing Certificates.Each such Pass Through Trustee shall have received the following:

 

(i)          a
certificate dated the Closing Date of a Director of the Owner, certifying as to (A) a copy of the resolutions of the Directors
of the Owner duly authorizing the transactions contemplated hereby and the execution, delivery and performance by the Owner of
this Agreement, the Indenture, the Aircraft Security Documents to which the Owner is a party, the Lease and each other document
required to be executed and delivered by the Owner in accordance with the provisions hereof or thereof and (B) a copy of the certificate
of incorporation and memorandum and articles of association of the Owner, as in effect on the Closing Date;

 

(ii)         a
certificate or other evidence from the Cayman Islands Registry of Companies, dated as of a date reasonably near the Closing Date,
as to the due incorporation and good standing of the Owner in such country;

 

(iii)        an
incumbency certificate of the Owner as to the person or persons authorized to execute and deliver this Agreement, the Indenture,
the Aircraft Security Documents to which the Owner is a party, the Lease and each other document to be executed by the Owner in
connection with the transactions contemplated hereby and thereby, and the specimen signatures of such person or persons;

 

(iv)        a
certificate dated the Closing Date an officer of LATAM, certifying as to (A) a copy of the resolutions of the Board of Directors
of LATAM duly authorizing the transactions contemplated hereby and the execution, delivery and performance by LATAM of this Agreement,
the Lease, the Aircraft Security Documents to which LATAM is a party and each other document required to be executed and delivered
by LATAM in accordance with the provisions hereof or thereof and (B) a copy of the certificate of incorporation and by-laws of
LATAM, as in effect on the Closing Date;

 

(v)         a
certificate (Copia de Inscripción con Vigencia) from the Santiago Registry of Commerce (Registro de Comercio de
Santiago), dated as of a date reasonably near the Closing Date, as to the due incorporation and good standing of LATAM in such
country;

 

(vi)        an
incumbency certificate of LATAM as to the person or persons authorized to execute and deliver this Agreement, the Lease, the Aircraft
Security Documents to which LATAM is a party and each other document to be executed by LATAM in connection with the
transactions contemplated hereby and thereby, and the specimen signatures of such person or persons;

 

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(vii)       one
or more certificates of the Loan Trustee and the Subordination Agent certifying to the reasonable satisfaction of such Pass Through
Trustees as to the due authorization, execution, delivery and performance by the Loan Trustee and the Subordination Agent of each
of the Financing Agreements to which the Loan Trustee or the Subordination Agent is or will be a party and any other documents
to be executed by or on behalf of the Loan Trustee or Subordination Agent in connection with the transactions contemplated hereby
or thereby;

 

(viii)      [Reserved].

 

(ix)         [Reserved].

 

(f)          Representations;
No Event of Default or Event of Loss. On the Closing Date, the following statements shall be correct: (i) the representations
and warranties herein of each of LATAM and the Owner are correct in all material respects as though made on and as of such date,
except to the extent that such representations and warranties relate solely to an earlier date (in which case such representations
and warranties are correct on and as of such earlier date) and (ii) no event has occurred and is continuing that constitutes
an Indenture Event of Default, a Lease Event of Default or an Event of Loss with respect to the Aircraft or would constitute an
Indenture Event of Default, a Lease Event of Default or such an Event of Loss but for the requirement that notice be given or
time elapse or both.

 

(g)          Opinions
of Counsel to the Owner. Each such Pass Through Trustee and the Loan Trustee shall have received (i) an opinion addressed
to it from Clifford Chance US LLP, New York counsel to the Owner and Lessee, substantially in the form set forth in Exhibit
A-1, (ii) an opinion addressed to it from in-house counsel for the Lessee, substantially in the form set forth in Exhibit
A-2, (iii) an opinion addressed to it from Greenberg Traurig LLP, special Florida counsel, substantially in the form
of Exhibit A-4, (iv) an opinion addressed to it from Maples and Calder, special Cayman Islands counsel to the Owners,
substantially in the form set forth in Exhibit D, and (v) an opinion addressed to it from Philippi, Prietocarrizosa
& Uría, special Chilean counsel, substantially in the form set forth in Exhibit C-1,

 

(h)          Opinion
of Counsel to WTC, the Loan Trustee, the Pass Through Trustees and the Subordination Agent. Each Pass Through Trustee
and the Loan Trustee shall have received an opinion addressed to it from Morris James LLP, special counsel for WTC, the Loan Trustee,
the Pass Through Trustees in existence as of the Closing Date and the Subordination Agent, substantially in the form set forth
in Exhibit B.

 

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(i)          [Reserved].

 

(j)          [Reserved].

 

(k)          Certification
from LATAM. Each such Pass Through Trustee and the Loan Trustee shall have received a certificate or certificates signed by
the chief financial or accounting officer, any Senior Vice President, the Treasurer, any Vice President or any Assistant Treasurer
(or any other Responsible Officer) of LATAM, dated the Closing Date, certifying as to the correctness of each of the matters stated
in Section 3.01(f).

 

(l)          Certification
from WTC, Loan Trustee and Subordination Agent. Each Pass Through Trustee shall have received a certificate from WTC in its
individual capacity and as Loan Trustee and Subordination Agent, as applicable, dated the Closing Date, signed by an authorized
officer of WTC in its individual capacity and as Loan Trustee and Subordination Agent, as applicable, certifying for each such
entity that no Loan Trustee Liens or Other Party Liens attributable to it, as applicable, exist, and further certifying as to the
correctness of each of the matters stated in Section 5.01.

 

(m)         [Reserved].

 

(n)         Insurance
Matters. The Loan Trustee shall have received an insurance report of an independent insurance broker and the related
certificates of insurance, each in form and substance reasonably satisfactory to the Loan Trustee, as to the compliance with the
terms of Section 10 of the Lease relating to insurance with respect to the Aircraft.

 

(o)          No
Proceedings. No action or proceeding shall have been instituted nor shall governmental action be threatened before any court
or governmental agency, nor shall any order, judgment or decree have been issued or proposed to be issued by any court or governmental
agency at the time of the Closing to set aside, restrain, enjoin or prevent the completion and consummation of this Agreement or
the transactions contemplated hereby.

 

(p)          Funding
of Pass Through Trusts. Each such Pass Through Trustee shall have received in immediately available funds an amount at least
equal to the aggregate purchase price of the Equipment Notes to be purchased from the Owner by such Pass Through Trustee.

 

(q)          [Reserved].

 

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(r)          Governmental
Approvals. All appropriate action required to have been taken prior to the Closing Date by the Aviation Authority or any governmental
or political agency, subdivision or instrumentality of the Cayman Islands, Chile or the United States in connection with the transactions
contemplated by this Agreement has been taken, and all orders, permits, waivers, authorizations, exemptions and approvals of such
entities required to be in effect on the Closing Date in connection with the transactions contemplated by this Agreement have been
issued.

 

(s)          Title.
The Owner shall have good title to the Aircraft and to the other Collateral pledged by it under the Indenture and the Aircraft
Security Documents to which it is a party, free and clear of all Liens except Permitted Liens. LATAM shall have good title to the
Collateral pledged by it under the Security Documents to which it is a party.

 

(t)          Satisfaction
of Requirements under the Note Purchase Agreement. The conditions precedent set forth in Section 2 of the Note Purchase Agreement,
and the requirements set forth in Section 1 of the Note Purchase Agreement relating to the Aircraft and the Equipment Notes, shall
have been satisfied.

 

(u)          Post-Closing
Registration and Filing.

 

(v)         [Reserved].

 

(ii)         [Reserved].

 

(iii)        Chilean
Perfection Requirements.

 

(A)         LATAM
shall as soon as practicable after the Delivery Date for the Aircraft, provide the Loan Trustee with evidence, in form and substance
satisfactory to such party, that all registration formalities with respect to the registration of the Local Mortgage and the Lease
Supplement have been completed.

 

(B)         LATAM
shall as soon as practicable, but in any event within fifteen (15) Business Days after the Delivery Date for the Aircraft provide
to the Loan Trustee evidence of (i) the delivery to Chilean Customs Authority of the communication indicating the application of
the temporary admissions regime over the Aircraft; (ii) the filing of the Local Mortgage and Lease with the Chilean Aircraft Registry.

 

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(C)         LATAM
shall as soon as practicable, but in any event within fifteen (15) Business Days after the Delivery Date for the Aircraft provide
the Loan Trustee a copy of the DGAC Registration Certificate (Certificado de Matrícula) with respect of the Aircraft.

 

(D)         LATAM
shall as soon as practicable, but in any event within fifteen (15) Business Days after the Date for the Aircraft provide the Loan
Trustee a copy of the standard airworthiness certificate (Certificado de Aeronavegabilidad Estándar) issued by the
DGAC respect of the Aircraft.

 

(E)         Upon
the completion of (B)-(D) above LATAM shall procure a legal opinion from their Chilean counsel confirming that each of (B)-(D)
has been satisfied.

 

(iv)        [Reserved].

 

Section
3.02. Conditions Precedent to Obligations of the Owner. The obligation of the Owner to issue and sell the Equipment Notes
is subject to the fulfillment (or waiver by the Owner) prior to or on the Closing Date of the following conditions precedent:

 

(a)          No
Changes in Law. No change shall have occurred after the date of this Agreement in applicable law or regulations thereunder
or interpretations thereof by appropriate regulatory authorities or any court that would make it a violation of law or governmental
regulations for LATAM or the Owner to enter into any transaction contemplated by the Financing Agreements, the Note Purchase Agreement
or the other Pass Through Documents.

 

(b)          Documentation.
The documents referred to in Section 3.01(c) shall have been duly authorized, executed and delivered by the respective party or
parties thereto (other than the Owner), shall be in full force and effect and executed counterparts (or copies thereof where indicated)
thereof shall have been delivered to the Owner, and the Owner shall have received such documents and evidence with respect to WTC,
each Liquidity Provider of each Liquidity Facility in effect as of the Closing Date, the Loan Trustee, the Subordination Agent
and each Pass Through Trustee of each Pass Through Trust in existence as of the Closing Date as the Owner may reasonably request
in order to establish the consummation of the transactions contemplated by this Agreement, the taking of all corporate and other
proceedings in connection therewith and compliance with the conditions herein set forth.

 

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(c)          Representations
and Warranties. On the Closing Date, the representations and warranties herein of WTC, the Loan Trustee, the Subordination
Agent and the Pass Through Trustees of each Pass Through Trust in existence as of the Closing Date shall be correct as though made
on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date (in which
case such representations and warranties shall have been correct on and as of such earlier date), and, insofar as such representations
and warranties concern WTC, the Loan Trustee, the Subordination Agent or any such Pass Through Trustee, such party shall have so
certified to the Owner.

 

(d)          Certain
Opinions and Certificates. The Owner shall have received the opinion referred to in Section 3.01(h), such opinion addressed
to the Owner or accompanied by a letter from the counsel rendering such opinion authorizing the Owner to rely on such opinion as
if it were addressed to the Owner, and the certificates referred to in Sections 3.01(e)(vii) and 3.01(l).

 

(e)         [Reserved].

 

(f)         No
Proceedings.No action or proceeding shall have been instituted nor shall governmental action be threatened before
any court or governmental agency, nor shall any order, judgment or decree have been issued or proposed to be issued by any court
or governmental agency at the time of the Closing to set aside, restrain, enjoin or prevent the completion and consummation of
this Agreement or the transactions contemplated hereby.

 

(g)          No
Other Party Liens, etc. The Owner shall have received a certificate from WTC dated the Closing Date, signed by an authorized
officer of WTC, certifying for each Pass Through Trustee of each Pass Through Trust in existence as of the Closing Date that no
Other Party Liens attributable to it exist and further certifying as to the correctness of each of the matters stated in Section
5.01.

 

(h)          Payment
for Equipment Notes. The Owner shall have been paid by each Pass Through Trustee of each Pass Through Trust in existence as
of the Closing Date the aggregate original principal amount of the Equipment Notes being issued to such Pass Through Trustee as
set forth on Schedule II opposite the name of such Pass Through Trust.

 

ARTICLE IV

 

REPRESENTATIONS, WARRANTIES
AND INDEMNITIES

 

Section 4.01. Representations
and Warranties of the Owner. The Owner represents and warrants
that:

 

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(a)          Organization;
Authority; Qualification. The Owner is an exempted limited liability company duly incorporated and validly existing in good
standing under the laws of the Cayman Islands, has the corporate power and authority to own or hold under lease its properties
and to enter into and perform its obligations under the Financing Agreements to which it is a party and is duly qualified to do
business as a foreign corporation in good standing in each other jurisdiction in which the failure to so qualify would have a material
adverse effect on the transactions contemplated hereby.

 

(b)          Corporate
Action and Authorization; No Violations. The execution, delivery and performance by the Owner of this Agreement and the other
Financing Agreements to which the Owner is a party have been duly authorized by all necessary corporate action on the part of the
Owner, do not require any stockholder approval or approval or consent of any trustee, except such as have been duly obtained and
are in full force and effect, and do not contravene any law, governmental rule, regulation, judgment or order binding on the Owner
or the certificate of incorporation or memorandum and articles of association of the Owner or result in the creation of any Lien
(other than as permitted under the Indenture and the other Aircraft Security Documents) upon the property of the Owner.

 

(c)          Governmental
Approvals. Neither the execution and delivery by the Owner of this Agreement and the other Financing Agreements to which it
is a party, nor the consummation by the Owner 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, or the International Registry, except for (i) the registration
of the issuance and sale of the Pass Through Certificates under the Securities Act and under the securities laws of any state
or other jurisdiction in which the Pass Through Certificates may be offered for sale if the laws of such state or other jurisdiction
require such action, (ii) the qualification of the Pass Through Trust Agreements under the Trust Indenture Act, (iii)
the orders, permits, waivers, exemptions, authorizations and approvals of the regulatory authorities having jurisdiction over
the Owner’s ownership or use of the Aircraft required to be obtained on or prior to the Closing Date, which orders, permits,
waivers, exemptions, authorizations and approvals have been duly obtained and are, or on the Closing Date will be, in full force
and effect, (iv) the filings and registrations referred to in Section 4.01(e), (v) authorizations, consents, approvals,
notices and filings required to be obtained, taken, given or made under securities or Blue Sky or similar laws of the various
states and foreign jurisdictions, and (vi) consents, approvals, notices, registrations and other actions required to be
obtained, given, made or taken only after the date hereof.

 

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(d)          Valid
and Binding Agreements. This Agreement and each other Financing Agreement to which the Owner is a party have been duly executed
and delivered by the Owner and constitute the legal, valid and binding obligations of the Owner enforceable against the Owner 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 and except, in the case of the Indenture and
the Aircraft Security Documents to which the Owner is a party, as limited by applicable laws that may affect the remedies provided
in the Indenture or such Aircraft Security Documents, which laws, however, do not make the remedies provided in the Indenture or
such Aircraft Security Documents inadequate for the practical realization of the rights and benefits intended to be provided thereby.

 

(e)          Filings
and Recordation. Except for (i) with respect to the security interests created by the Indenture (with the Indenture
Supplement covering the Aircraft), the filing of financing statements (and continuation statements at periodic intervals) under
the Uniform Commercial Code of the District of Columbia, (ii) filing of the Local Mortgage and the Lease with the Aviation
Authority, and, no further filing or recording of any document is necessary or advisable under the laws of the United States or
any state thereof, the Cayman Islands or, Chile, as of the Closing Date in order to establish and perfect the security interest
in the Aircraft created under the Indenture or in the Collateral created under the Aircraft Security Documents to which the Owner
is a party in favor of the Loan Trustee as against the Owner and any third parties in any applicable jurisdiction in the Cayman
Islands, Chile or the United States.

 

(f)          Investment
Company Act. The Owner is not required to be registered as an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

 

(g)          Title.
As of the Closing Date, (i) the Owner has good title to the Aircraft, free and clear of Liens other than Permitted Liens,
(ii) the Aircraft has been duly certified by the Aviation Authority as to type and airworthiness in accordance with the
terms of the Lease, (iii) the Aircraft is duly registered with the Aviation Authority in the name of the Owner.

 

(h)          UCC
Location. The Owner is located (as defined in Section 9-307 of the UCC) in the District of Columbia.

 

    	 	13	 

     

    

  

(i)          Security
Interest. (A) Each of the Indenture and the Local Mortgage creates in favor of the Loan Trustee, for the benefit of the Noteholders,
the Indenture Indemnitees and the Related Indenture Indemnitees, a valid and perfected Lien on the Aircraft purported to be subjected
to the Lien of the Indenture and the Local Mortgage on the Closing Date, subject to no equal or prior Lien, except Permitted Liens,
(B) each of the Aircraft Security Documents to which the Owner is a party creates in favor of the Loan Trustee, for the benefit
of the Noteholders, the Indenture Indemnitees and the Related Indenture Indemnitees, a valid and perfected Lien over the Collateral
described therein purported to be subjected to the Lien thereof on the Closing Date, subject to no equal or prior Lien, except
Permitted Liens.

 

Section 4.02. Representations
and Warranties of LATAM. LATAM represents and warrants that:

 

(a)          Organization;
Authority; Qualification. LATAM is a company duly established and validly existing under the laws of the Chile, has the corporate
power and authority to own or hold under lease its properties and to enter into and perform its obligations under the Financing
Agreements to which it is a party and is duly qualified to do business as a foreign corporation in good standing in each other
jurisdiction in which the failure to so qualify would have a material adverse effect on the consolidated financial condition of
LATAM and its subsidiaries, considered as a whole.

 

(b)          UCC
Location. LATAM is a “foreign air carrier” within the meaning of the Act and is located (as defined in Section
9-307 of the UCC) in the State of Florida.

 

(c)          Corporate
Action and Authorization; No Violations. The execution, delivery and performance by LATAM of this Agreement and the other Financing
Agreements to which LATAM is a party have been duly authorized by all necessary corporate action on the part of LATAM, do not require
any stockholder approval or approval or consent of any trustee or holder of any indebtedness or obligations of LATAM, except such
as have been duly obtained and are in full force and effect, and do not contravene any law, governmental rule, regulation, judgment
or order binding on LATAM or the certificate of incorporation or by-laws of LATAM or contravene or result in a breach of, or constitute
a default under, or result in the creation of any Lien (other than as permitted under the Indenture) upon the property of LATAM
under, any material indenture, mortgage, contract or other agreement to which LATAM is a party or by which it or any of its properties
may be bound or affected.

 

    	 	14	 

     

    

  

(d)          Governmental
Approvals. Neither the execution and delivery by LATAM of this Agreement and the other Financing Agreements to which it is
a party, nor the consummation by LATAM 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, or the International Registry, except for (i) the orders, permits,
waivers, exemptions, authorizations and approvals of the regulatory authorities having jurisdiction over LATAM’s registration
or use of the Aircraft required to be obtained on or prior to the Closing Date, which orders, permits, waivers, exemptions, authorizations
and approvals have been duly obtained and are, or on the Closing Date will be, in full force and effect, (ii) the filings
and registrations referred to in Section 4.02(f) and (iii) consents, approvals, notices, registrations and other actions
required to be obtained, given, made or taken only after the date hereof.

 

(e)          Valid
and Binding Agreements. This Agreement and each other Financing Agreement to which LATAM is a party have been duly executed
and delivered by LATAM and constitute the legal, valid and binding obligations of LATAM enforceable against LATAM 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 and except, in the case of the Aircraft Security
Documents to which LATAM is a party, as limited by applicable laws that may affect the remedies provided in such Aircraft Security
Documents, which laws, however, do not make the remedies provided in such Aircraft Security Documents inadequate for the practical
realization of the rights and benefits intended to be provided thereby.

 

(f)          Filings
and Recordation. Except for (i) with respect to the security interests created by such documents, the filing of financing
statements (and continuation statements at periodic intervals) under the Uniform Commercial Code of the State of Florida, and
(ii) the filing of the documents listed in Section 3.01(d)(iii), no further filing or recording of any document is necessary
or advisable under the laws of the United States, Chile, or any state thereof as of the Closing Date in order to establish and
perfect the security interest in the Collateral created under the Aircraft Security Documents to which LATAM is a party in favor
of the Loan Trustee as against LATAM and any third parties in any applicable jurisdiction in Chile or the United States.

 

(g)          Investment
Company Act. LATAM is not required to be registered as an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

 

(h)          Title.
As of the Closing Date, (i) LATAM has good title to the Collateral pledged by it pursuant to the Security Documents to
which LATAM is a party, free and clear of Liens other than Permitted Liens, (ii) the Aircraft has been duly certified by
the Aviation Authority as to type and airworthiness in accordance with the terms of the Lease and (iii) the Aircraft is
duly registered with the Aviation Authority in the name of the Owner.

 

    	 	15	 

     

    

  

(i)          Security
Interest. Each of the Aircraft Security Documents to which LATAM is a party creates in favor of the Loan Trustee, for the benefit
of the Noteholders, the Indenture Indemnitees and the Related Indenture Indemnitees, a valid and perfected Lien on the Collateral
purported to be subjected to the Lien of such Aircraft Security Document on the Closing Date, subject to no equal or prior Lien,
except Permitted Liens.

 

Section 4.02A. [Reserved].

 

Section 4.03. General Indemnity.

 

(a)          Indemnitee Defined. For the purposes of this Section 4.03, “Indemnitee” means
(i) the Owner, (ii) WTC, WTNA and the Loan Trustee, (iii) each separate or additional trustee appointed pursuant
to Section 8.02 of the Indenture, (iv) so long as it holds any Equipment Notes as agent and trustee of any Pass Through
Trustee, the Subordination Agent, (v) so long as it is the holder of any Equipment Notes, each Pass Through Trustee, (vi)
each Liquidity Provider, (vii) any Related Noteholder, (viii) the Escrow Agent, (ix) the Paying Agent and
(x) each of their respective successors and permitted assigns in such capacities, agents, servants, officers, employees
and directors, provided that such Persons shall, to the extent they are not signatories to this Agreement, have expressly
agreed in writing to be bound by the terms of this Section 4.03 prior to, or concurrently with, the making of a claim hereunder.
If an Indemnitee fails to comply with any duty or obligation under this Section 4.03 with respect to any Expense, such Indemnitee
shall not, to the extent such failure was prejudicial to the Owner, be entitled to any indemnity with respect to such claim under
this Section 4.03. No holder of a Pass Through Certificate in its capacity as such holder shall be an Indemnitee for purposes hereof.

 

(b)          Claims
Indemnified. Whether or not any of the transactions contemplated hereby are consummated, LATAM shall indemnify, protect, defend
and hold harmless each Indemnitee from, against and in respect of, and shall pay on a net After-Tax Basis, any and all Expenses
of any kind or nature whatsoever that may be imposed on, incurred by or asserted against any Indemnitee, relating to, resulting
from, or arising out of or in connection with, any one or more of the following:

 

(i)          The
Operative Agreements or the enforcement of any of the terms of any of the Operative Agreements;

 

    	 	16	 

     

    

  

(ii)         The
Aircraft, the Airframe, any Engine or any Part, including, without limitation, with respect thereto, (i) the manufacture, design,
purchase, acceptance, nonacceptance or rejection, ownership, registration, reregistration, deregistration, delivery, nondelivery,
lease, sublease, assignment, possession, use or non-use, operation, maintenance, testing, repair, overhaul, condition, alteration,
modification, addition, improvement, storage, airworthiness, replacement, repair, sale, substitution, return, abandonment, redelivery
or other disposition of the Aircraft, any Engine or any Part, (ii) any claim or penalty arising out of violations of applicable
laws by LATAM (or any Permitted Sublessee), (iii) tort liability, whether or not arising out of the negligence of any Indemnitee
(whether active, passive or imputed), (iv) death or property damage of passengers, shippers or others, (v) environmental control,
noise or pollution and (vi) any Liens in respect of the Aircraft, any Engine or any Part;

 

(iii)        The
offer, sale, or delivery of any Equipment Notes, Pass Through Certificates or any interest therein or represented thereby; and

 

(iv)        Any
breach of or failure to perform or observe, or any other noncompliance with, any covenant or agreement or other obligation to be
performed by LATAM under any Operative Agreement to which it is party or the falsity of any representation or warranty of LATAM
in any Operative Agreement to which it is party.

 

(c)          Claims
Excluded. Notwithstanding anything contained in Section 4.03(b), LATAM shall not be required to indemnify, protect, defend
and hold harmless any Indemnitee pursuant to Section 4.03(b) in respect of any Expense of such Indemnitee:

 

(i)          For
any Taxes or a loss of Tax benefit, whether or not LATAM is required to indemnify therefor pursuant to Section 4.04;

 

(ii)         Except
to the extent attributable to acts or events occurring prior thereto, acts or events (other than acts or events related to the
performance by LATAM of its obligations pursuant to the terms of the Operative Agreements) that occur after the Indenture is required
to be terminated in accordance with Section 10.01 of the Indenture; provided, that nothing in this clause (ii) shall be deemed
to exclude or limit any claim that any Indemnitee may have under applicable law by reason of an Indenture Event of Default or for
damages from LATAM for breach of LATAM’s covenants contained in the Operative Agreements or to release LATAM from any of
its obligations under the Operative Agreements that expressly provide for performance after termination of the Indenture;

 

(iii)        To
the extent attributable to any Transfer (voluntary or involuntary) by or on behalf of such Indemnitee of any Equipment Note or
interest therein, except for out-of-pocket costs and expenses incurred as a result of any such Transfer pursuant to the exercise
of remedies under any Operative Agreement;

 

    	 	17	 

     

    

  

(iv)        To
the extent attributable to the gross negligence or willful misconduct of such Indemnitee or any related Indemnitee (as defined
below) (other than gross negligence or willful misconduct imputed to such person solely by reason of its interest in the Aircraft
or any Operative Agreement);

 

(v)         To
the extent attributable to the incorrectness or breach of any representation or warranty of such Indemnitee or any related Indemnitee
contained in or made pursuant to any Operative Agreement;

 

(vi)        To
the extent attributable to the failure by such Indemnitee or any related Indemnitee to perform or observe any agreement, covenant
or condition on its part to be performed or observed in any Operative Agreement;

 

(vii)       To
the extent attributable to the offer or sale by such Indemnitee or any related Indemnitee of any interest in the Aircraft, the
Equipment Notes, the Pass Through Certificates, or any similar interest, in violation of the Securities Act or other applicable
federal, provincial, state or foreign securities laws (other than any thereof caused by acts or omissions of LATAM);

 

(viii)      (A)
With respect to any Indemnitee (other than Loan Trustee), to the extent attributable to the failure of Loan Trustee to distribute
funds received and distributable by it in accordance with the Indenture, (B) with respect to any Indemnitee (other than Subordination
Agent), to the extent attributable to the failure of Subordination Agent to distribute funds received and distributable by it in
accordance with the Intercreditor Agreement, (C) with respect to any Indemnitee (other than the Pass Through Trustees), to the
extent attributable to the failure of a Pass Through Trustee to distribute funds received and distributable by it in accordance
with the Pass Through Trust Agreements, (D) with respect to any Indemnitee (other than Escrow Agent), to the extent attributable
to the failure of Escrow Agent to pay funds received and payable by it in accordance with any Escrow Agreement, (E) with respect
to any Indemnitee (other than Paying Agent), to the extent attributable to the failure of Paying Agent to distribute funds received
and distributable by it in accordance with any Escrow Agreement, (F) to the extent attributable to the failure of Depositary to
pay funds payable by it in accordance with any Deposit Agreement, (G) with respect to Loan Trustee, to the extent attributable
to the gross negligence or willful misconduct of Loan Trustee in the distribution of funds received and distributable by it in
accordance with the Indenture, (H) with respect to Subordination Agent, to the extent attributable to the gross negligence or willful
misconduct of Subordination Agent in the distribution of funds received and distributable by it in accordance with the Intercreditor
Agreement, (I) with respect to the Pass Through Trustees, to the extent attributable to the gross negligence or willful misconduct
of a Pass Through Trustee in the distribution of funds received and distributable by it in accordance with the Pass Through Trust
Agreements, (J) with respect to Escrow Agent, to the extent attributable to the gross negligence or willful misconduct of Escrow
Agent in the payment of funds received and payable by it in accordance with any Escrow Agreement, (K) with respect to Paying Agent,
to the extent attributable to the gross negligence or willful misconduct of Paying Agent in the distribution of funds received
and distributable by it in accordance with any Escrow Agreement and (L) with respect to Securities Intermediary, to the extent
attributable to the gross negligence or willful misconduct of Securities Intermediary in the distribution of funds received and
distributable by it in accordance with the Indenture.

 

    	 	18	 

     

    

  

(ix)         Other
than during the continuation of an Indenture Event of Default, to the extent attributable to the authorization or giving or withholding
of any future amendments, supplements, waivers or consents with respect to any Operative Agreement other than such as have been
requested by LATAM or as are required by or made pursuant to the terms of the Operative Agreements (unless such requirement results
from the actions of an Indemnitee not required by or made pursuant to the Operative Agreements);

 

(x)          To
the extent attributable to any amount which any Indemnitee expressly agrees to pay or such Indemnitee expressly agrees shall not
be paid by or be reimbursed by LATAM;

 

(xi)         To
the extent that it is an ordinary and usual operating or overhead expense;

 

(xii)        For
any Lien attributable to such Indemnitee or any related Indemnitee;

 

(xiii)       If
another provision of an Operative Agreement specifies the extent of LATAM’s responsibility or obligation with respect to
such Expense, to the extent arising therefrom other than the failure of LATAM to comply with such specified responsibility or obligation;
or

 

(xiv)      To
the extent incurred by or asserted against an Indemnitee as a result of any “prohibited transaction”, within the meaning
of Section 406 of ERISA or Section 4975(c)(1) of the Code.

 

For purposes of this Section
4.03, a Person shall be considered a “related” Indemnitee with respect to an Indemnitee if such Person is an Affiliate
or employer of such Indemnitee, a director, officer, employee, agent, or servant of such Indemnitee or any such Affiliate or a
successor or permitted assignee of any of the foregoing.

 

    	 	19	 

     

    

  

(d)          Separate
Indemnity. This Agreement constitutes a separate agreement with respect to each Indemnitee and is enforceable directly by each
such Indemnitee.

 

(e)          Notice.
If a claim for any Expense that an Indemnitee shall be indemnified against under this Section 4.03 is made, such Indemnitee shall
give prompt written notice thereof to LATAM. Notwithstanding the foregoing, the failure of any Indemnitee to notify LATAM as provided
in this Section 4.03(e), or in Section 4.03(f), shall not release LATAM from any of its obligations to indemnify such Indemnitee
hereunder, except to the extent that such failure results in an additional Expense to LATAM (in which event LATAM shall not be
responsible for such additional expense) or materially impairs LATAM’s ability to contest such claim.

 

(f)          Notice
of Proceedings; Defense of Claims; Limitations.

 

(i)          In
case any action, suit or proceeding shall be brought against any Indemnitee for which LATAM is responsible under this Section 4.03,
such Indemnitee shall notify LATAM of the commencement thereof and LATAM may, at its expense, participate in and to the extent
that it shall wish (subject to the provisions of the following paragraph), assume and control the defense thereof and, subject
to Section 4.03(f)(iii), settle or compromise the same.

 

(ii)         LATAM
or its insurer(s) shall have the right, at its or their expense, to investigate or, if LATAM or its insurer(s) shall agree not
to dispute liability to the Indemnitee giving notice of such action, suit or proceeding under this Section 4.03(f) for indemnification
hereunder or under any insurance policies pursuant to which coverage is sought, control the defense of, any action, suit or proceeding,
relating to any Expense for which indemnification is sought pursuant to this Section 4.03, and each Indemnitee shall cooperate
with LATAM or its insurer(s) with respect thereto; provided, that LATAM shall not be entitled to control the defense of any such
action, suit, proceeding or compromise any such Expense during the continuance of any Indenture Event of Default. In connection
with any such action, suit or proceeding being controlled by LATAM, such Indemnitee shall have the right to participate therein,
at its sole cost and expense, with counsel reasonably satisfactory to LATAM; provided, that such Indemnitee’s participation
does not, in the reasonable opinion of the independent counsel appointed by LATAM or its insurers to conduct such proceedings,
interfere with the defense of such case.

 

    	 	20	 

     

    

  

(iii)        In
no event shall any Indemnitee enter into a settlement or other compromise with respect to any Expense without the prior written
consent of LATAM, which consent shall not be unreasonably withheld or delayed, unless such Indemnitee waives its right to be indemnified
with respect to such Expense under this Section 4.03.

 

(iv)        In
the case of any Expense indemnified by LATAM hereunder which is covered by a policy of insurance maintained by LATAM pursuant to
Section 10 of the Lease, at LATAM’s expense, each Indemnitee agrees to cooperate with the insurers in the exercise of their
rights to investigate, defend or compromise such Expense as may be required to retain the benefits of such insurance with respect
to such Expense.

 

(v)         If
an Indemnitee is not a party to this Agreement, LATAM may require such Indemnitee to agree in writing to the terms of this Article
IV and Sections 7.03 and 7.10 prior to making any payment to such Indemnitee under this Article IV.

 

(vi)        Nothing
contained in this Section 4.03(f) shall be deemed to require an Indemnitee to contest any Expense or to assume responsibility for
or control of any judicial proceeding with respect thereto.

 

(g)          Information.
LATAM shall provide the relevant Indemnitee with such information not within the control of such Indemnitee, as is in LATAM’s
control or is reasonably available to LATAM, which such Indemnitee may reasonably request and shall otherwise cooperate with such
Indemnitee so as to enable such Indemnitee to fulfill its obligations under Section 4.03(f). The Indemnitee shall supply LATAM
with such information not within the control of LATAM, as is in such Indemnitee’s control or is reasonably available to such
Indemnitee, which LATAM may reasonably request to control or participate in any proceeding to the extent permitted by Section 4.03(f).

 

(h)          Effect
on Other Indemnities; Subrogation; Further Assurances. Upon the payment in full by LATAM of any indemnity provided for under
this Agreement, LATAM without any further action and to the full extent permitted by law, will be subrogated to all rights and
remedies of the person indemnified (other than with respect to any of such Indemnitee’s insurance policies) in respect of
the matter as to which such indemnity was paid. Each Indemnitee will give such further assurances or agreements and cooperate with
LATAM to permit LATAM to pursue such claims, if any, to the extent reasonably requested by LATAM and at LATAM’s expense.

 

(i)          Refunds.
If an Indemnitee receives any refund, in whole or in part, with respect to any Expense paid by LATAM hereunder, it shall promptly
pay the amount refunded (but not an amount in excess of the amount LATAM or any of its insurers has paid in respect of such Expense)
over to LATAM unless an Indenture Event of Default shall have occurred and be continuing, in which case such amounts shall be paid
over to Loan Trustee to hold as security for LATAM’s obligations under the Operative Agreements or, if requested by LATAM,
applied to satisfy such obligations.

 

    	 	21	 

     

    

  

Section 4.04. General Tax Indemnity.

 

(a)          General.
Except as provided in Section 4.04(b), LATAM and the Owner agree that each payment paid by (or on behalf of) the Owner to a Tax
Indemnitee under the Equipment Notes, and any other payment or indemnity paid by (or on behalf of) the Owner or LATAM to a Tax
Indemnitee under any Operative Agreement, shall be free of all withholdings or deductions with respect to Taxes of any nature (other
than U.S. federal, state or local withholding taxes on, based on or measured by gross or net income and any Taxes imposed under
FATCA), and in the event that the Owner or LATAM or any applicable withholding agent (“Payor”) shall be required
by applicable law to make any such withholding or deduction for or on account of Taxes (x) Payor shall make all such withholdings
or deductions, (y) the amount payable by Payor shall be increased so that after making all required withholdings or deductions
(including any withholdings or deductions applicable to additional amounts payable under this Section 4.04(a)) such Tax Indemnitee
receives the same amount that it would have received had no such withholdings or deductions been made, and (z) Payor shall pay
the full amount withheld or deducted to the relevant Taxing Authority in accordance with applicable law. Except as provided in
Section 4.04(b) and whether or not any of the transactions contemplated hereby are consummated, the Owner and LATAM shall pay,
indemnify, protect, defend and hold each Tax Indemnitee harmless from all Taxes imposed by any Taxing Authority that may from time
to time be imposed on or asserted against any Tax Indemnitee or the Aircraft, the Airframe, any Engine or any Part or any interest
in any of the foregoing, upon or with respect to the Operative Agreements or the transactions or payments contemplated thereby,
including but not limited to any Tax imposed upon or with respect to (x) the Aircraft, the Airframe, any Engine, any Part, any
Operative Agreement (including without limitation any Equipment Notes) or any data or any other thing delivered or to be delivered
under an Operative Agreement, (y) the purchase, manufacture, acceptance, rejection, sale, transfer of title, return, ownership,
mortgaging, delivery, transport, charter, rental, lease, re-lease, sublease, assignment, possession, repossession, presence, use,
condition, storage, preparation, maintenance, modification, alteration, improvement, operation, registration, transfer or change
of registration, re- registration, repair, replacement, overhaul, location, control, the imposition of any Lien, financing, refinancing
requested by LATAM, abandonment or other disposition of the Aircraft, the Airframe, any Engine, any Part, any data or any other
thing delivered or to be delivered under an Operative Agreement or (z) interest, fees or any other income, proceeds, receipts or
earnings, whether actual or deemed, arising upon, in connection with, or in respect of, any of the Operative Agreements (including
the property or income or other proceeds with respect to property held as part of the Collateral) or the transactions contemplated
thereby.

 

    	 	22	 

     

    

  

LATAM shall be jointly and severally
liable with the Owner in respect of obligations of the Owner under this Article IV.

 

(b)          Certain
Exceptions. The provisions of Section 4.04(a) shall not apply to, and neither LATAM nor the Owner shall have any liability
hereunder for, Taxes:

 

(i)          imposed
on a Tax Indemnitee by the federal government of the United States or any Taxing Authority or governmental subdivision of the United
States or therein (including any state or local Taxing Authority) (i) on, based on, or measured by, gross or net income or gross
or net receipts, including capital gains taxes, excess profits taxes, minimum taxes from tax preferences, alternative minimum taxes,
branch profits taxes, accumulated earnings taxes, personal holding company taxes, succession taxes and estate taxes, any withholding
taxes on, based on or measured by net income or receipts, and any Taxes imposed under FATCA or any intergovernmental agreement
entered into in connection with FATCA or (ii) on, or with respect to, or measured by, capital or net worth or in the nature of
a franchise tax or a tax for the privilege of doing business (other than, in the case of clause (i) or (ii), sales, value added
(which are not in substitution for or in the nature of an income tax), use, license or property Taxes);

 

(ii)         imposed
on a Tax Indemnitee by any Taxing Authority or governmental subdivision thereof or therein outside of the United States (including
any Taxing Authority in or of a territory, possession or commonwealth of the United States) (i) on, based on, or measured by, gross
or net income or gross or net receipts, including capital gains taxes, excess profits taxes, minimum taxes from tax preferences,
alternative minimum taxes, branch profits taxes, accumulated earnings taxes, personal holding company taxes, succession taxes and
estate taxes or (ii) on, or with respect to, or measured by, capital or net worth or in the nature of a franchise tax or a tax
for the privilege of doing business (other than, in the case of clause (i) or (ii), (A) sales, use, value added, license or property
Taxes, or (B) any Taxes imposed by any Taxing Authority (other than a Taxing Authority within whose jurisdiction such Tax Indemnitee
is incorporated or organized or maintains its principal place of business) if such Tax Indemnitee would not have been subject to
Taxes of such type by such jurisdiction but for (I) the location, use or operation of the Aircraft, the Airframe, any Engine or
any Part thereof by a Person within the jurisdiction of the Taxing Authority imposing such Tax, (II) the activities of any such
Person in such jurisdiction, including, but not limited to, use of any other aircraft by LATAM or the Sublessee in such jurisdiction,
(III) the status of the Owner, LATAM, or the Sublessee as a resident of or as engaged in business in such jurisdiction, (IV) the
status of any Tax Indemnitee as a non-resident of such jurisdiction provided such Tax Indemnitee has no present or former
connection with such jurisdiction other than arising solely from such Tax Indemnitee’s having executed, delivered, performed
its obligations or received a payment under, or enforced, or engaged in any other transaction pursuant to and in accordance with
any Operative Agreement, (V) LATAM or the Owner having made (or having been deemed to have made) payments to such Tax Indemnitee
from the relevant jurisdiction or (VI) in the case of the Owner, the Pass Through Trustees, the Noteholders or any related Tax
Indemnitee, LATAM, the Owner, or the Sublessee being incorporated or organized or maintaining a place of business or conducting
activities in such jurisdiction);

 

    	 	23	 

     

    

  

(iii)        on,
or with respect to, or measured by, any trustee fees, commissions or compensation received by the Pass Through Trustee, Subordination
Agent or Loan Trustee;

 

(iv)        that
are being contested as provided in Section 4.04(d) hereof;

 

(v)         imposed
on any Tax Indemnitee to the extent that such Taxes result from the gross negligence or willful misconduct of such Tax Indemnitee
or a related Indemnitee;

 

(vi)        imposed
on or with respect to a Tax Indemnitee (including the transferee in those cases in which the Tax on transfer is imposed on, or
is collected from, the transferee) as a result of a transfer or other disposition (including a deemed transfer or disposition)
by such Tax Indemnitee or a related Tax Indemnitee of any interest in the Aircraft, the Airframe, any Engine or any Part, any interest
arising under the Equipment Notes or the Operative Agreements or as a result of a transfer or disposition (including a deemed transfer
or disposition) of any interest in a Tax Indemnitee (other than (A) a substitution or replacement of the Aircraft, the Airframe,
any Engine or any Part by an Owner Person that is treated for Tax purposes as a transfer or disposition, or (B) a transfer pursuant
to an exercise of remedies upon an Indenture Event of Default that shall have occurred and have been continuing);

 

(vii)       Taxes
in excess of those that would have been imposed had there not been a transfer or other disposition by or to a Tax Indemnitee or
a related Tax Indemnitee described in paragraph (vi) above;

 

(viii)      consisting
of any interest, penalties or additions to tax imposed on a Tax Indemnitee as a result of (in whole or in part) failure of such
Tax Indemnitee or a related Tax Indemnitee to file any return properly and timely, unless such failure shall be caused by the failure
of the Owner or LATAM to fulfill its obligations, if any, under Section 4.04(f) with respect to such return;

 

    	 	24	 

     

    

  

(ix)         resulting
from, or that would not have been imposed but for, any Liens arising as a result of claims against, or acts or omissions of, or
otherwise attributable to such Tax Indemnitee or a related Tax Indemnitee that neither the Owner nor LATAM nor the Sublessee is
obligated to discharge under the Operative Agreements;

 

(x)          imposed
on any Tax Indemnitee as a result of the breach by such Tax Indemnitee or a related Tax Indemnitee of any covenant of such Tax
Indemnitee or any related Tax Indemnitee contained in any Operative Agreement (including any Pass Through Trust Agreement) or the
inaccuracy of any representation or warranty by such Tax Indemnitee or any related Tax Indemnitee in any Operative Agreement (including
any Pass Through Trust Agreement);

 

(xi)         in
the nature of a franchise, an intangible or similar Tax upon or with respect to the value or principal amount of the interest of
any Noteholder in any Equipment Note or the loan evidenced thereby but only if such Taxes are in the nature of franchise Taxes
or result from the Tax Indemnitee doing business in the taxing jurisdiction and are imposed because of the place of incorporation
or the activities unrelated to the transactions contemplated by the Operative Agreements in the taxing jurisdiction by such Tax
Indemnitee;

 

(xii)        imposed
on a Tax Indemnitee by a Taxing Authority of a jurisdiction outside the United States or Chile to the extent that such Taxes would
not have been imposed but for a connection between the Tax Indemnitee or a related Tax Indemnitee and such jurisdiction imposing
such Tax unrelated to the transactions contemplated by the Operative Agreements; or

 

(xiii)       imposed
as a result of a failure by such Tax Indemnitee (other than Owner) or a holder of the Pass Through Certificates to provide proper
documentation establishing an exemption from or reduction of such Tax to which such Tax Indemnitee or Pass Through Certificate
holder is entitled, where the Owner, LATAM or a Trustee has requested by written notice given a reasonable period of time (and
in any event at least 30 days) before such Tax is due that such documentation be provided and where such Tax Indemnitee or Pass
Through Certificate holder is legally entitled to provide such documentation; or

 

(xiv)      Taxes
relating to ERISA or Section 4975 of the Code.

 

For purposes
hereof, a Person (whether or not such Person is a Tax Indemnitee as defined in Annex A) shall be considered a related Tax Indemnitee
if such Person is an Affiliate or employer of a Tax Indemnitee, a director, officer, employee, agent, or servant of a Tax Indemnitee
or any such Affiliate or a successor or permitted assignee of any of the foregoing.

 

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Notwithstanding
anything in this Agreement or any other Operative Agreement to the contrary, in the event any amount is withheld by a Person, on
account of a Tax for which the Owners and LATAM do not have liability under Section 4.04, from a payment or indemnity payable pursuant
to any Operative Agreement to a Tax Indemnitee, the amount so withheld shall be considered for purposes of the Operative Agreements
to have been paid to such Tax Indemnitee.

 

		(c)	Payment.

 

(i)          A
Payor’s indemnity obligation to a Tax Indemnitee under this Section 4.04 shall be determined on an After-Tax Basis, provided
that nothing herein contained shall interfere with the right of the Tax Indemnitee to arrange its Tax affairs in whatever manner
it reasonably thinks fit and, in particular, the Tax Indemnitee shall be under no obligation to claim relief for Tax purposes,
or to claim such relief in priority to any other claims, release, credits or deductions available to it.

 

(ii)         At
LATAM’s request, the computation of the amount of any indemnity payment owed by a Payor or any amount owed by a Tax Indemnitee
to Payor pursuant to this Section 4.04 shall be verified and certified by an independent public accounting firm selected by such
Tax Indemnitee and reasonably satisfactory to LATAM. Such verification shall be binding, absent manifest error. The costs of such
verification (including the fee of such public accounting firm) shall be borne by LATAM unless such verification shall result in
an adjustment in a Payor’s favor of 5% or more of the net present value of the payment as computed by such Tax Indemnitee,
in which case the costs shall be paid by such Tax Indemnitee.

 

(iii)        Each
Tax Indemnitee shall provide the Owner and LATAM with such certifications, information and documentation as shall be in such Tax
Indemnitee’s possession and as shall be reasonably requested by the Owner or LATAM to minimize any indemnity payment pursuant
to this Section 4.04 unless so doing would be prohibited by applicable law; provided that, notwithstanding anything to the contrary
contained herein, no Tax Indemnitee shall be required to provide the Owner or LATAM with any Tax returns.

 

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(iv)        Each
Tax Indemnitee shall promptly forward to the Owner and LATAM any written notice, bill or advice received by it from any Taxing
Authority concerning any Tax for which it seeks indemnification under this Section 4.04. LATAM or Owner shall pay any amount for
which it is liable pursuant to this Section 4.04 directly to the appropriate Taxing Authority if legally permissible or upon demand
of a Tax Indemnitee, to such Tax Indemnitee within 30 days of such demand (or, if a contest occurs in accordance with Section 4.04(d),
within 30 days after a Final Determination (as defined below)), but in no event more than one Business Day prior to the date the
Tax to which such amount payable hereunder relates is due. If requested by a Tax Indemnitee in writing, Payor shall promptly furnish
to the appropriate Tax Indemnitee the original or a certified copy of a receipt for Payor’s payment of any Tax paid by Payor
or such other evidence of payment of such Tax as is reasonably acceptable to such Tax Indemnitee. Payor shall also furnish promptly,
with a copy to LATAM in the case Payor is the Owner (or a withholding agent), upon written request such data as any Tax Indemnitee
may reasonably require to enable such Tax Indemnitee to comply with the requirements of any taxing jurisdiction unless such data
is not reasonably available to Payor or, unless such data is specifically requested by a Taxing Authority, is not customarily furnished
by international air carriers under similar circumstances. For purposes of this Section 4.04 a “Final Determination”
shall mean (i) a decision, judgment, decree or other order by any court of competent jurisdiction that occurs pursuant to the provisions
of Section 4.04(d), which decision, judgment, decree or other order has become final and unappealable, (ii) a closing agreement
or settlement agreement entered into in accordance with Section 4.04(d) that has become binding and is not subject to further review
or appeal (absent fraud, misrepresentation, etc.), or (iii) the termination of administrative proceedings and the expiration of
the time for instituting a claim in a court proceeding.

 

(v)         If
any Tax Indemnitee shall actually realize a tax savings by reason of any Tax paid or indemnified by Payor pursuant to this Section
4.04 (whether such tax savings shall be by means of a foreign tax credit, depreciation or cost recovery deduction or otherwise)
and such savings is not otherwise taken into account in computing such payment or indemnity such Tax Indemnitee shall pay to Payor
an amount equal to the lesser of (i) the amount of such tax savings, plus any additional tax savings recognized as the result of
any payment made pursuant to this sentence, when, as, if, and to the extent, realized or (ii) the amount of all payments pursuant
to this Section 4.04 by Payor to such Tax Indemnitee (less any payments previously made by such Tax Indemnitee to Payor pursuant
to this Section 4.04(c)(v)) (and the excess, if any, of the amount described in clause (i) over the amount described in clause
(ii) shall be carried forward and applied to reduce only to the extent of such excess, any subsequent obligations of Payor to make
payments to such Tax Indemnitee pursuant to this Section 4.04); provided, that such Tax Indemnitee shall not be required to make
any payment pursuant to this sentence so long as an Indenture Event of Default of a monetary nature has occurred and is continuing.
If a tax benefit is later disallowed or denied, the disallowance or denial shall be treated as a Tax indemnifiable under Section
4.04 without regard to the provisions of Section 4.04(b) (other than Section 4.04(b)(v)). Each such Tax Indemnitee shall in good
faith use reasonable efforts in filing its tax returns and in dealing with Taxing Authorities to seek and claim any such tax benefit
provided that nothing herein shall interfere with a Tax Indemnitee’s right to arrange its affairs in whatever manner it reasonably
thinks fit and a Tax Indemnitee shall be under no obligation to claim relief for Tax purposes in priority to any other claims,
reliefs, creditor or deductions available to it.

 

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(d)          Contest.

 

(i)          If
a written claim is made against a Tax Indemnitee for Taxes with respect to which LATAM or Owner could be liable for payment or
indemnity hereunder, or if a Tax Indemnitee makes a determination that a Tax is due for which LATAM or Owner could have an indemnity
obligation hereunder, such Tax Indemnitee shall promptly give the Owner and LATAM notice in writing of such claim (provided, that
failure to so notify the Owner or LATAM shall not relieve LATAM or Owner of its indemnity obligations hereunder unless such failure
to notify effectively forecloses the Owner’s or LATAM’s rights to require a contest of such in which case the Owner
and LATAM are relieved of their indemnity obligations to the extent their right to contest is foreclosed) and shall take no action
with respect to such claim without the prior written consent of LATAM for 30 days following the receipt of such notice by the Owner
and LATAM; provided, that, in the case of a claim made against a Tax Indemnitee, if such Tax Indemnitee shall be required by law
to take action prior to the end of such 30-day period, such Tax Indemnitee shall, in such notice to the Owner and LATAM, so inform
the Owner and LATAM, and such Tax Indemnitee shall take no action for as long as it is legally able to do so (it being understood
that a Tax Indemnitee shall be entitled to pay the Tax claimed and sue for a refund prior to the end of such 30-day period if (i)(A)
the failure to so pay the Tax would result in substantial penalties (unless immediately reimbursed by LATAM or Owner) and the act
of paying the Tax would not materially prejudice the right to contest or (B) the failure to so pay would result in criminal penalties,
and (ii) such Tax Indemnitee shall take any action so required in connection with so paying the Tax in a manner that is the least
prejudicial to the pursuit of the contest). In addition, such Tax Indemnitee shall (provided, that the Owner and LATAM shall have
agreed to keep such information confidential other than to the extent necessary in order to contest the claim) furnish the Owner
and LATAM with copies of any requests for information from any Taxing Authority relating to such Taxes with respect to which LATAM
or Owner may be required to indemnify hereunder. If requested by the Owner and LATAM in writing within 30 days after its receipt
of such notice, such Tax Indemnitee shall, at the expense of LATAM (including, without limitation, all reasonable costs, expenses
and reasonable attorneys’ and accountants’ fees and disbursements), in good faith contest (or, if permitted by Applicable
Law, allow LATAM or Owner to contest) through appropriate administrative and judicial proceedings the validity, applicability or
amount of such Taxes by (I) resisting payment thereof, (II) not paying the same except under protest if protest is necessary and
proper or (III) if the payment is made, using reasonable efforts to obtain a refund thereof in an appropriate administrative and/or
judicial proceeding. If requested to do so by the Owner and LATAM, the Tax Indemnitee shall appeal any adverse administrative or
judicial decision, except that the Tax Indemnitee shall not be required to pursue any appeals to the United States Supreme Court
or the highest relevant court of Chile. If and to the extent the Tax Indemnitee is able to separate the contested issue or issues
from other issues arising in the same administrative or judicial proceeding that are unrelated to the transactions contemplated
by the Operative Agreements without, in the good faith judgment of such Tax Indemnitee, adversely affecting such Tax Indemnitee,
such Tax Indemnitee shall permit LATAM or Owner to control the conduct of any such proceeding and shall provide to LATAM or Owner
(at LATAM or Owner’s cost and expense) with such information or data that is in such Tax Indemnitee’s control or possession
that is reasonably necessary to conduct such contest. In the case of a contest controlled by a Tax Indemnitee, such Tax Indemnitee
shall consult with LATAM and Owner in good faith regarding the manner of contesting such claim and shall keep LATAM and Owner reasonably
informed regarding the progress of such contest. A Tax Indemnitee shall not fail to take any action expressly required by this
Section 4.04(d) (including, without limitation, any action regarding any appeal of an adverse determination with respect to any
claim) or settle or compromise any claim without the prior written consent of LATAM (except as contemplated by Section 4.04(d)(ii)
or 4.04(d)(iii)).

 

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(ii)         Notwithstanding
the foregoing, in no event shall a Tax Indemnitee be required to pursue any contest (or to permit LATAM or Owner to pursue any
contest) unless (i) LATAM or Owner shall have agreed to pay such Tax Indemnitee on demand all reasonable costs and expenses incurred
by such Tax Indemnitee in connection with contesting such Taxes, including, without limitation, all reasonable out of pocket costs
and expenses and reasonable attorneys’ and accountants’ fees and disbursements, (ii) if such contest shall involve
the payment of the claim, LATAM or Owner shall advance the amount thereof (to the extent indemnified hereunder) plus interest,
penalties and additions to tax with respect thereto that are required to be paid prior to the commencement of such contest on an
interest-free, after-Tax basis to such Tax Indemnitee (and such Tax Indemnitee shall promptly pay to LATAM or Owner any net realized
tax benefits resulting from such advance including any tax benefits resulting from making such payment), (iii) such Tax Indemnitee
shall have reasonably determined that the action to be taken will not result in any material risk of forfeiture, sale or loss of
the Aircraft (unless LATAM or Owner shall have made provisions to protect the interests of any such Tax Indemnitee in a manner
reasonably satisfactory to such Tax Indemnitee) (provided, that such Tax Indemnitee agrees to notify the Owner and LATAM in writing
promptly after it becomes aware of any such risk), (iv) no Indenture Event of Default shall have occurred and be continuing unless
LATAM or Owner has provided security for its obligations hereunder by advancing to such Tax Indemnitee before proceeding or continuing
with such contest, the amount of the Tax being contested, plus any interest and penalties and an amount estimated in good faith
by such Tax Indemnitee for expenses, and (v) prior to commencing any judicial action controlled by LATAM or Owner, LATAM or Owner
shall have acknowledged its liability for such claim hereunder, provided that LATAM or Owner shall not be bound by its acknowledgment
if the Final Determination articulates conclusions of law and fact that demonstrate that LATAM or Owner has no liability for the
contested amounts hereunder. Notwithstanding the foregoing, if any Tax Indemnitee shall release, waive, compromise or settle any
claim which may be indemnifiable by LATAM or Owner pursuant to this Section 4.04 without the prior written permission of LATAM,
LATAM or Owner’s obligation to indemnify such Tax Indemnitee with respect to such claim (and all directly related claims
and claims based on the outcome of such claim) shall terminate, subject to Section 4.04(d)(iii), and subject to Section 4.04(d)(iii),
such Tax Indemnitee shall promptly repay to LATAM or Owner any amount previously paid or advanced to such Tax Indemnitee with respect
to such claim, plus interest at the rate that would have been payable by the relevant Taxing Authority with respect to a refund
of such Tax.

 

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(iii)        Notwithstanding
anything contained in this Section 4.04, a Tax Indemnitee will not be required to contest the imposition of any Tax and shall be
permitted to settle or compromise any claim without LATAM’s consent if such Tax Indemnitee (i) shall waive its right to indemnity
under this Section 4.04 with respect to such Tax (and any directly related claim and any claim the outcome of which is determined
based upon the outcome of such claim), (ii) shall pay to LATAM or Owner any amount previously paid or advanced by LATAM or Owner
pursuant to this Section 4.04 with respect to such Tax, plus interest at the rate that would have been payable by the relevant
Taxing Authority with respect to a refund of such Tax, and (iii) shall agree to discuss with LATAM the views or positions of any
relevant Taxing Authority with respect to the imposition of such Tax.

 

(e)          Refund.
If any Tax Indemnitee shall receive a refund of, or be entitled to a credit against other liability for, all or any part of any
Taxes paid, reimbursed or advanced by LATAM or Owner, such Tax Indemnitee shall pay to LATAM or Owner within 30 days of such receipt
an amount equal to the lesser of (a) the amount of such refund or credit plus any net tax benefit (taking into account any Taxes
incurred by such Tax Indemnitee by reason of the receipt of such refund or realization of such credit) actually realized by such
Tax Indemnitee as a result of any payment by such Tax Indemnitee made pursuant to this sentence (including this clause (a)) and
(b) such tax payment, reimbursement or advance by LATAM or Owner to such Tax Indemnitee theretofore made pursuant to this Section
4.04 (and the excess, if any, of the amount described in clause (a) over the amount described in clause (b) shall be carried forward
and applied to reduce, only to the extent of such excess, any subsequent obligation of LATAM or Owner to make payments to such
Tax Indemnitee pursuant to this Section 4.04). If, in addition to such refund or credit, such Tax Indemnitee shall receive (or
be credited with) an amount representing interest on the amount of such refund or credit, such Tax Indemnitee shall pay to LATAM
or Owner within 30 days of such receipt or realization of such credit that proportion of such interest (net of Taxes) that shall
be fairly attributable to Taxes paid, reimbursed or advanced by LATAM or Owner prior to the receipt of such refund or realization
of such credit.

 

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(f)          Tax
Filing. If any report, return or statement is required under applicable law to be filed with respect to any Tax which is subject
to indemnification under this Section 4.04, Payor shall timely file the same (except for any such report, return or statement which
a Tax Indemnitee has timely notified the Owner and LATAM in writing that such Tax Indemnitee intends to file, or for which such
Tax Indemnitee is required by law to file, in its own name); provided, that the relevant Tax Indemnitee shall furnish the Owner
and LATAM with any information in such Tax Indemnitee’s possession or control that is reasonably necessary to file any such
return, report or statement and is reasonably requested in writing by the Owner and LATAM (it being understood that the Tax Indemnitee
shall not be required to furnish copies of its actual tax returns, although it may be required to furnish relevant information
contained therein). Payor shall either file such report, return or statement and send a copy of such report, return or statement
to such Tax Indemnitee, or, where Payor is not permitted to file such report, return or statement, it shall notify such Tax Indemnitee
of such requirement and prepare and deliver such report, return or statement to such Tax Indemnitee in a manner reasonably satisfactory
to such Tax Indemnitee within a reasonable time prior to the time such report, return or statement is to be filed.

 

(g)          Forms.
Each Tax Indemnitee agrees to furnish from time to time to the Owner, LATAM or Loan Trustee or to such other person as the Owner,
LATAM or Loan Trustee may designate, at the Owner’s, LATAM’s or Loan Trustee’s request, such duly executed and
properly completed forms as are necessary pursuant to applicable law or the official practice of the relevant Taxing Authority
in order to claim any reduction of or exemption from any withholding or other Tax imposed by any Taxing Authority, if (x) such
reduction or exemption is available to such Tax Indemnitee and (y) the Owner and LATAM have provided such Tax Indemnitee with any
information necessary to complete such form not otherwise reasonably available to such Tax Indemnitee. Without limiting the foregoing,
each Tax Indemnitee shall provide to LATAM or the Loan Trustee, at such person’s request, such forms, documents and information
as are necessary or appropriate for LATAM or the Loan Trustee to comply with its reporting, withholding and other obligations under
FATCA.

 

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(h)          Non-Parties.
If a Tax Indemnitee is not a party to this Agreement, the Owner and LATAM, acting together, may require the Tax Indemnitee to agree
in writing, in a form reasonably acceptable to the Owner and LATAM, to the terms of this Section 4.4           and
Section 7.03 and 7.10 prior to making any payment to such Tax Indemnitee under this Section 4.04.

 

(i)          Subrogation.
Upon payment of any Tax by Payor pursuant to this Section 4.4           to
or on behalf of a Tax Indemnitee, LATAM or Owner, without any further action, shall be subrogated to any claims that such Tax Indemnitee
may have relating thereto. Such Tax Indemnitee shall cooperate with LATAM or Owner (to the extent such cooperation does not result
in any unreimbursed cost, expense or liability to such Tax Indemnitee) to permit Payor to pursue such claims.

 

Section 4.05. Payments.
Any payments made pursuant to Section 4.03 or 4.04 shall be due on the 60th day after demand therefor and shall be made directly
to the relevant Indemnitee or Tax Indemnitee or to LATAM or Owner, or to the relevant Taxing Authority if so directed by the relevant
Indemnitee or Tax Indemnitee, in immediately available funds at such bank or to such account as specified by such Indemnitee or
Tax Indemnitee or LATAM or Owner, as the case may be, in written directives to the payor, or, if no such direction shall have been
given, by check of the payor payable to the order of, and mailed to, such Indemnitee or Tax Indemnitee or LATAM or Owner, as the
case may be, by certified mail, postage prepaid, at its address as set forth in this Agreement.

 

Section 4.06. Interest. If
any amount, payable by LATAM or Owner, any Indemnitee or any Tax Indemnitee under Section 4.03 or 4.04 is not paid when due under
the terms of this Agreement, the person obligated to make such payment shall pay on demand, to the extent permitted by applicable
law, to the person entitled thereto, interest on any such amount for the period from and including the due date for such amount
to but excluding the date the same is paid, at the Past Due Rate. Such interest shall be paid in the same manner as the unpaid
amount in respect of which such interest is due.

 

Section 4.07. Benefit of Indemnities.
The obligations of LATAM and Owner in respect of all indemnities, obligations, adjustments and payments in Section 4.03 or 4.04
are expressly made for the benefit of, and shall be enforceable by, the Indemnitee or Tax Indemnitee entitled thereto, notwithstanding
any provision of the Indenture.

 

Section 4.08. Certain Payments.
LATAM agrees to pay to the Owner (who shall, pursuant to Section 2.14 of the Indenture, pay such amounts to the Loan Trustee) for
distribution by the Loan Trustee in accordance with Section 3.04 of the Indenture the amounts specified in Section 2.14 of the
Indenture, on the same terms and conditions set forth therein.

 

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ARTICLE V

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

OF WTC

 

Section 5.01.
Representations, Warranties and Covenants of WTC. WTC, generally, and each of the Loan Trustee, the Subordination Agent
and the Pass Through Trustee of each Pass Through Trust in existence as of the Closing Date as it relates to it, represents, warrants
and covenants that:

 

(a)          Organization;
Authority. WTC is a Delaware trust company duly organized and validly existing in good standing under the laws of the State
of Delaware, holds a valid certificate to do business as a Delaware trust company, is eligible to be the Loan Trustee under Section
8.01(a) of the Indenture, will promptly comply with Section 8.01(a) of the Indenture and has full power, authority and legal right
to enter into and perform its obligations under each of the Financing Agreements and the Pass Through Documents to which WTC, the
Loan Trustee, the Subordination Agent or such Pass Through Trustee is a party and, in its capacity as Loan Trustee and Pass Through
Trustee, respectively, to authenticate the Equipment Notes and the Pass Through Certificates, respectively. WTC is qualified to
act as Loan Trustee under Section 8.01(c) of the Indenture.

 

(b)          Due Authorization; No Violations. The execution, delivery and performance by WTC, individually or in its
capacity as Loan Trustee, Subordination Agent or such Pass Through Trustee, as the case may be, of this Agreement, each of the
other Financing Agreements and each of the Pass Through Documents to which WTC, the Loan Trustee, the Subordination Agent or such
Pass Through Trustee is a party, the performance by WTC, individually or in its capacity as Loan Trustee, Subordination Agent or
such Pass Through Trustee, as the case may be, of its obligations thereunder and the consummation on the Closing Date or the Issuance
Date, as the case may be, of the transactions contemplated thereby, and the authentication of the Equipment Notes and the Pass
Through Certificates, respectively, to be delivered on the Closing Date or the Issuance Date, as the case may be: (i) have been
duly authorized by all necessary action on the part of WTC, the Loan Trustee, the Subordination Agent and such Pass Through Trustee,
as the case may be, (ii) and do not violate any law or regulation of the United States or of the state of the United States
in which WTC is located and which governs the trust powers of WTC or any order, writ, judgment or decree of any court, arbitrator
or governmental authority applicable to WTC, the Loan Trustee, the Subordination Agent or such Pass Through Trustee or any of their
assets, (iii) will not violate any provision of the charter of WTC and (iv) will not violate any provision of, or
constitute a default under, any mortgage, indenture, contract, agreement or undertaking to which any of WTC, the Loan Trustee,
the Subordination Agent or such Pass Through Trustee is a party or by which any of them or their respective properties may be bound
or affected.

 

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(c)          Approvals. Neither the execution and delivery by WTC, individually or in its capacity as Loan Trustee,
Subordination Agent or Pass Through Trustee, as the case may be, of this Agreement, any other Financing Agreement or any Pass Through
Document to which WTC, the Loan Trustee, the Subordination Agent or such Pass Through Trustee is a party, nor the consummation
by WTC, the Loan Trustee, the Subordination Agent or such Pass Through Trustee 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, (i) any governmental authority or agency of the United States or the state of the United States
where WTC is located and regulating the trust powers of WTC, or (ii) any trustee or other holder of any debt of WTC.

 

(d)          Valid
and Binding Agreements. This Agreement, each other Financing Agreement and each Pass Through Document to which WTC, the Loan
Trustee, the Subordination Agent or such Pass Through Trustee is a party have been duly executed and delivered by WTC, individually
and in its capacity as Loan Trustee, Subordination Agent or such Pass Through Trustee, as the case may be, and constitute the legal,
valid and binding obligations of WTC, the Loan Trustee, the Subordination Agent and such Pass Through Trustee, to the extent it
is a party thereto, enforceable against it in accordance with its 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.

 

(e)          No
Loan Trustee Liens or Other Party Liens. It unconditionally agrees with and for the benefit of the parties to this Agreement
that it will not directly or indirectly create, incur, assume or suffer to exist any Loan Trustee Lien or Other Party Lien attributable
to it, and it agrees that it will, at its own cost and expense, promptly take such action as may be necessary to discharge and
satisfy in full any such Lien.

 

(f)          Intercreditor
Agreement. The Equipment Notes to be issued to the Subordination Agent pursuant hereto are being acquired by it to be held
under the Intercreditor Agreement.

 

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(g)          Funds
Transfer Fees. Each of WTC, the Loan Trustee, the Subordination Agent and each Pass Through Trustee agrees that it will not
impose any lifting charge, cable charge, remittance charge or any other charge or fee on any transfer by the Owner of funds to,
through or by WTC, the Loan Trustee, the Subordination Agent or such Pass Through Trustee pursuant to this Agreement, any other
Financing Agreement or any Pass Through Document, except as may be otherwise agreed to in writing by the Owner.

 

(h)          Confidentiality.
Each of WTC, the Loan Trustee, the Subordination Agent and any Pass Through Trustee agrees to be bound by the terms of Section
10.16 of the Indenture.

 

(i)          Certain
Tax Matters. There are no Taxes payable by WTC, the Loan Trustee, the Subordination Agent or such Pass Through Trustee imposed
by the State of Delaware or any political subdivision or taxing authority thereof, in connection with the execution, delivery or
performance by WTC, the Loan Trustee, the Subordination Agent or such Pass Through Trustee of any Operative Agreements or any Pass
Through Document (other than franchise or other taxes based on or measured by any fees or compensation received by any such Person
for services rendered in connection with the transactions contemplated by the Operative Agreements or the Pass Through Documents),
and there are no Taxes payable by such Pass Through Trustee imposed by the State of Delaware or any political subdivision thereof
in connection with the acquisition, possession or ownership by such Pass Through Trustee of any of the Equipment Notes (other than
franchise or other taxes based on or measured by any fees or compensation received by such Pass Through Trustee for services rendered
in connection with the transactions contemplated by the Operative Agreements or the Pass Through Documents) and, assuming that
the Pass Through Trusts in existence as of the Closing Date will not be taxable for Federal income tax purposes as corporations,
but, rather, will be characterized for such purposes as grantor trusts or partnerships, such Pass Through Trusts will not be subject
to any Taxes imposed by the State of Delaware or any political subdivision thereof.

 

(j)          Limitation
on Situs of Activities. Except with the consent of the Owner, which shall not be unreasonably withheld, WTC will act as Pass
Through Trustee, Subordination Agent and Loan Trustee solely through its offices within the State of Delaware, except for such
services as may be performed for it by independent agents in the ordinary course of business, but not directly by it, in other
states.

 

(k)          No
Proceedings. There are no pending or, to its knowledge, threatened actions or proceedings against WTC, the Loan Trustee, the
Subordination Agent or such Pass Through Trustee before any court or administrative agency which individually or in the aggregate,
if determined adversely to it, would materially adversely affect the ability of WTC, the Loan Trustee, the Subordination Agent
or such Pass Through Trustee to perform its obligations under any Financing Agreement or any Pass Through Document.

 

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(l)          Other
Representations. The representations and warranties contained in Section 7.15 of the Basic Pass Through Trust Agreement and
Section 7.04 of each Trust Supplement are true, complete and correct as of the Closing Date.

 

ARTICLE VI

 

OTHER COVENANTS AND AGREEMENTS

 

Section 6.01. Other Agreements.

 

(a)          Fees
and Expenses. Each of LATAM and the Owner, jointly and severally, agrees promptly to pay (without duplication of any other
obligation LATAM may have to pay such amounts) (1) the initial and annual fees and (to the extent the Loan Trustee is entitled
to be reimbursed for its reasonable expenses) the reasonable expenses of the Loan Trustee in connection with the transactions contemplated
hereby and (2) the following expenses incurred by the Loan Trustee, the Subordination Agent and the Pass Through Trustees
in connection with the negotiation, preparation, execution and delivery of this Agreement, the other Financing Agreements and the
other documents or instruments referred to herein or therein:

 

(i)          the
reasonable fees, expenses and disbursements of (A) Morris James LLP, special counsel for the Loan Trustee, the Subordination
Agent and the Pass Through Trustees of the Pass Through Trusts in existence as of the Closing Date, (B) Maples & Calder,
special Cayman Islands counsel, and (C) Philippi, Prietocarrizosa & Uría, special Chilean counsel; and

 

(ii)         all
reasonable expenses actually incurred in connection with printing and document production or reproduction expenses, and in connection
with the filing of Uniform Commercial Code financing statements.

 

(b)          Continuing
Registration and Re-Registration. The Loan Trustee, the Noteholders, the Subordination Agent and each Pass Through Trustee
agree to execute and deliver, at LATAM’s expense, all such documents and consents as the Owner or LATAM may reasonably request
for the purpose of continuing the registration of the Aircraft at the Aviation Authority in the Owner’s name. In addition,
each of the Loan Trustee, the Subordination Agent, each Pass Through Trustee and any other Noteholder agrees, for the benefit of
the Owner, to cooperate with the Owner in effecting any foreign registration of the Aircraft pursuant to Section 7.02(b) of the
Lease; provided that prior to any such change in the country of registry of the Aircraft the conditions set forth in Section 7.02(b)
of the Lease are met to the reasonable satisfaction of, or waived by, the Loan Trustee.

 

    	 	36	 

     

    

  

(c)          Quiet
Enjoyment. Each of WTC, the Loan Trustee, the Subordination Agent, each Pass Through Trustee and any other Noteholder and the
Class A Liquidity Provider (by having entered into the Class A Liquidity Facility) and the Class B Liquidity Provider (by having
entered into the Class B Liquidity Facility) agrees that, unless an Indenture Event of Default shall have occurred and be continuing,
it shall not (and shall not permit any Affiliate or other Person claiming by, through or under it to) take any action contrary
to, or otherwise in any way interfere with or disturb (and then only in accordance with the Indenture), the quiet enjoyment of
the use and possession of the Aircraft, the Airframe, any Engine or any Part by the Owner, LATAM or any transferee of any interest
in any thereof permitted under the Indenture.

 

(d)          No
Noteholder Liens. Each Noteholder, including, without limitation, the Subordination Agent and each Pass Through Trustee, unconditionally
agrees with and for the benefit of the parties to this Agreement that it will not directly or indirectly create, incur, assume
or suffer to exist any Noteholder Liens, and such Noteholder agrees that it will, at its own cost and expense, promptly take such
action as may be necessary to discharge and satisfy in full any such Noteholder Lien; and each Noteholder hereby agrees to indemnify,
protect, defend and hold harmless each Indemnitee and the Owner against Claims in any way resulting from or arising out of a breach
by it of its obligations under this Section 6.01(d).

 

(e)          Agreement to be Bound; Transfer. By its acceptance of its Equipment Notes, each Noteholder unconditionally
agrees for the benefit of the Owner and the Loan Trustee: (i) to be bound by and to perform and comply with all of the terms of
such Equipment Notes, the Indenture and this Agreement applicable to such Noteholder; and (ii)         that
it will not transfer any Equipment Note (or any part thereof) to any entity unless such transfer complies with and does not violate
the Securities Act (or require registration under such Act) or any other law (including, without limitation, ERISA, the Code and
Similar Law), and does not create a relationship that would be in violation thereof, or result in a “prohibited transaction”
under Section 406 of ERISA, Section 4975 of the Code or Similar Law or require qualification of an indenture under the Trust Indenture
Act.

 

    	 	37	 

     

    

  

(f)          Tax
Returns. Each Pass Through Trustee shall file any tax returns required to be filed by the related Pass Through Trust and LATAM
shall pay the Applicable Portion of any expenses relating thereto. LATAM shall be responsible for the Applicable Portion of any
interest or penalties related to any Pass Through Trustee’s failure to file any such tax returns required to be filed by
the relevant Pass Through Trust, except to the extent that such failure is attributable to the gross negligence or willful misconduct
of such Pass Through Trustee. For purposes of this Section 6.01(f), the “Applicable Portion” of any amount
shall equal such amount multiplied by a fraction, the numerator of which shall be the sum of the then outstanding aggregate principal
amount of the Equipment Notes held by the relevant Pass Through Trustee, and the denominator of which shall be the sum of the outstanding
aggregate principal amount of all “Equipment Notes” issued under each of the “Indentures” (in each case
as defined in the Intercreditor Agreement) held by such Pass Through Trustee.

 

(g)          Maintenance
of Filings. Each of LATAM and the Owner, jointly and severally and at their joint and several expense, will take, or cause
to be taken, such action with respect to the due and timely recording, filing, re-recording and refiling of the Local Mortgage
and any financing statements and any continuation statements or other instruments as are necessary to maintain, so long as the
Indenture is in effect, the perfection of the security interests created by the Indenture, the Local Mortgage, the other Aircraft
Security Documents to which the Owner or LATAM is a party or will furnish the Loan Trustee timely notice of the necessity of such
action, together with such instruments, in execution form, and such other information as may be required to enable the Loan Trustee
to take such action. In addition, LATAM and the Owner will, jointly and severally, pay any and all recording, stamp and other similar
taxes payable in the Cayman Islands and Chile, and in any other jurisdiction where the Aircraft is registered, in connection with
the execution, delivery, recording, filing, re-recording and refiling of the Local Mortgage or any such Aircraft Security Document
or any such financing statements or other instruments. LATAM will notify the Loan Trustee of any change in its location (as such
term is used in Section 9-307 of the Uniform Commercial Code as in effect in the State of New York) promptly after making such
change or in any event within the period of time necessary under applicable law to prevent the lapse of perfection absent refiling)
of financing statements filed under the Operative Agreements.

 

Section 6.02.
Certain Covenants of the Owner. The Owner covenants and agrees with the Loan Trustee as follows:

 

(a)          Further
Assurances. On and after the Closing, the Owner will cause to be done, executed, acknowledged and delivered such further acts,
conveyances and assurances as the Loan Trustee shall reasonably request for accomplishing the purposes of this Agreement and the
other Financing Agreements; provided that any instrument or other document so executed by the Owner will not expand any
obligations or limit any rights of the Owner in respect of the transactions contemplated by the Financing Agreements.

 

(b)          Registration
of International Interests.

 

(i)          [Reserved].

 

    	 	38	 

     

    

  

(ii)         Chilean
Filing Requirements. On or prior to the Closing Date, the Owner will cause the registration or the filing of the documents
listed in Section 3.01(d)(iii), and thereafter the Owner will cause the registration or the filing of the documents listed in Section
3.01(u)(iii).

 

(iii)        [Reserved].

 

(c)          [Reserved].

 

(d)          Maintenance
of Corporate Existence. The Owner shall at all times maintain its corporate existence.

 

(e)          Merger;
Consolidation; Transfer of Assets. The Owner shall not consolidate with or merge into any other Person or convey, transfer
or lease any of its assets to any Person except for the leasing the Aircraft pursuant to the Lease, the leasing of any Related
Aircraft pursuant to any Related Leases and any conveyance, transfer or lease permitted under the Operative Agreements.

 

(f)          Special
Purpose. The Owner shall not:

 

(i)          enter
into any business or other activity other than (A) the entry into, exercise of rights under, and the performance of all obligations
to be performed by it pursuant to, the Operative Agreements or any documents executed or to be executed by it in connection with
the transactions contemplated thereby, (B) paying expenses incurred in the ordinary course of the business contemplated by the
Operative Agreements, and (C) activities incidental to the foregoing, including without limitation arrangements for the management
and/or administration of the Owner;

 

(ii)         contract
for, create, incur or assume any indebtedness (including contingent liability therefor), grant any credit, guarantee any debts
or grant any indemnity other than pursuant to the Operative Agreements; and

 

(iii)        enter
into any contract or agreement with any Person, nor create or incur, any liability to any Person, other than such contracts or
liabilities, or both, as expressly provided for or permitted or contemplated by the Operative Agreements to which the Owner is
a party, and contracts, liabilities, ordinary operating costs and overhead expenses as have arisen or may arise in the ordinary
course of carrying on business in accordance with this Section 6.02(f).

 

(g)          Independent
Director. The Owner shall at all times have at least one Independent Director, who may be the Independent Director serving
on its board of directors. The Owner shall not take any action that would constitute a Reserved Matter without the prior consent
of the Independent Director.

 

    	 	39	 

     

    

  

(h)          Separateness.
The Owner shall conduct its business such that it is a separate and readily identifiable business from, and independent of, LATAM
and any other Person (collectively, “Unrelated Parties”), and further covenants as follows:

 

(i)          The
Owner will observe all corporate formalities necessary to remain a legal entity separate and distinct from, and independent of,
each Unrelated Party;

 

(ii)         The
Owner shall maintain its assets and liabilities separate and distinct from those of each Unrelated Party, and will not commingle
its assets with those of any Unrelated Party;

 

(iii)        The
Owner shall maintain its accounts and funds separate and distinct from the accounts and funds of each Unrelated Party and will
receive, deposit, withdraw and disburse its funds separately from any funds of any Unrelated Party, except as provided in the Financing
Agreements;

 

(iv)        The
Owner shall maintain records, books, accounts and minutes separate from those of any Unrelated Party;

 

(v)         The
Owner shall conduct its own business in its own name, and not in the name of any Unrelated Party;

 

(vi)        The
Owner shall maintain separate financial statements from each Unrelated Party or, if it is part of a consolidated group, then it
will be shown as a separate member of such group;

 

(vii)       The
Owner shall not hold out that it is a division of any Unrelated Party, or that any Unrelated Party is a division of it; and

 

(viii)      The
Owner shall observe all corporate or other procedures required under applicable law and under its constitutive documents.

 

Section 6.03. Certain Covenants
of LATAM. LATAM covenants and agrees with the Loan Trustee as follows:

 

(a)          Further
Assurances. On and after the Closing, LATAM will cause to be done, executed, acknowledged and delivered such further acts,
conveyances and assurances as the Loan Trustee shall reasonably request for accomplishing the purposes of this Agreement and the
other Financing Agreements; provided that any instrument or other document so executed by LATAM will not expand any obligations
or limit any rights of LATAM in respect of the transactions contemplated by the Financing Agreements.

 

    	 	40	 

     

    

  

(b)          Registration
of International Interests and Local Filings.

 

(i)          [Reserved].

 

(ii)         Chilean
Filing Requirements. On or prior to the Closing Date, LATAM will cause the registration or the filing of the documents listed
in Section 3.01(d)(iii), and thereafter LATAM will cause the registration or the filing of the documents listed in Section 3.01(u)(iii).

 

(iii)        [Reserved].

 

(c)          Subleasing;
Purchase Option. In circumstances where applicable law requires that any sublease or interchange agreement must contain, in
favor of the Permitted Sublessee or Interchange Counterparty, a purchase option or other right to acquire title to the Aircraft,
in circumstances permitted by Section 7(e)(v)(19) of the Lease, LATAM shall procure that the relevant Permitted Sublessee or Interchange
Counterparty shall execute, in favor of the Loan Trustee, an undertaking confirming that any such purchase option or other right
to acquire title to the Aircraft will not be exercised. LATAM agrees that if any such Permitted Sublessee or Interchange Counterparty
fails to provide such undertaking on or prior to entering into such sublease or interchange agreement or exercises such purchase
option or other right to acquire title to the Aircraft, such exercise shall constitute an immediate Indenture Event of Default.

 

(d)          Maintenance
of Corporate Existence. LATAM shall at all times maintain its corporate existence except as permitted by Section 6.03(e).

 

(e)          Merger;
Consolidation; Transfer of Substantially All Assets.

 

(i)          LATAM
shall not consolidate with or merge into any other Person under circumstances where LATAM is not the surviving Person or convey,
transfer or lease substantially all of its assets as an entirety to any Person unless (A) immediately prior to such transaction
and immediately after giving effect to such transaction no Lease Event of Default or Indenture Event of Default will have occurred
or be continuing; (B) the Person formed by such consolidation or into which LATAM is merged or the Person that acquires by conveyance,
transfer or lease substantially all of the assets of LATAM as an entirety shall be organized and validly existing under (x) the
laws of the Chile or any territory thereof or (y) the laws of the United States of America or any state thereof or the District
of Columbia, provided that, in the case of clause (y), such Person shall be a United States certificated air carrier, if
and so long as such status is a condition of entitlement to the benefits of Section 1110 of the United States Bankruptcy Reform
Act of 1978, as amended, with respect to the Lease or the Aircraft, and (C) such Person shall execute and deliver to the Pass
Through Trustees, the Subordination Agent, the Escrow Agent and the Paying Agent an agreement in form and substance reasonably
satisfactory to them containing an assumption by such successor Person of the due and punctual performance and observance of each
covenant and condition of LATAM under this Note Purchase Agreement and the Financing Agreements to which LATAM is a party.

 

    	 	41	 

     

    

  

(ii)         Upon
any consolidation or merger, or any conveyance, transfer or lease of substantially all of the assets of LATAM as an entirety in
accordance with this Section 6.03(e), the successor Person formed by such consolidation or into which LATAM is merged or to which
such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of,
LATAM under this Agreement with the same effect as if such successor Person had been named as the Lessee and under the Financing
Agreements.

 

(iii)        The
Loan Trustee, each of the Pass Through Trustees and the Subordination Agent, the Escrow Agent and the Paying Agent may request
an officer’s certificate and an opinion of counsel of LATAM (or such successor) as conclusive evidence that any such consolidation,
merger, conveyance, transfer or lease, and any such assumption, complies with the provisions of this Section 6.03(e).

 

(f)          Lease
Obligations. LATAM shall at all times comply with the provisions of, and perform all of its obligations under, each of the
Lease and each other Financing Agreement to which it is a party.

 

(g)          Covenants
in Respect of Owner. So long as LATAM is a shareholder of the Owner, LATAM shall not (i) except pursuant to the Put Option
Agreement or the Call Option Agreement in respect of the Owner, sell, assign, transfer or otherwise dispose of, or agree to sell,
assign, transfer or otherwise dispose of, its ownership interest in the Owner, (ii) amend, supplement or otherwise modify or waive
any term or provision of memorandum and articles of association of the Owner (or consent to any of the foregoing) or (iii) take,
or omit to take, any action within its control that would result in the Owner breaching any of its obligations under Section 6.02
above.

 

    	 	42	 

     

    

  

(h)          Consent
to Security for Owner’s Obligations. In order to secure the repayment, among other things, of the Secured Obligations,
Owner has agreed in the Indenture, among other things, to assign to Loan Trustee its right, title and interest in and to the Lease,
including all associated rights related thereto, subject to the reservations and conditions therein set forth. LATAM hereby consents
to such assignment (and to any further assignment by Loan Trustee in connection with an exercise of its remedies under the Indenture)
and acknowledges receipt of a copy of the Indenture. Until the Lien of the Indenture has been released, (a) LATAM shall, notwithstanding
anything in the Lease or the other Financing Agreements to the contrary, make all payments of Rent (including all payments of Basic
Rent and Supplemental Rent) in accordance with the Indenture and such payments shall not be subject to any defense, counterclaim,
set-off or other right or claim of any kind which LATAM may be able to assert against Owner or any other Person in an action brought
by any thereof on the Lease or any other Financing Agreement, (b) all rights of Owner with respect to the Lease (including all
consent, waiver and notice rights), the Aircraft, the Airframe, any Engine or any Part thereof, to the extent set forth in and
subject in each case to the exceptions set forth in the Financing Agreements, shall be exercisable by Loan Trustee (to the exclusion
of Owner) and (c) all documents, notices, certificates and opinions of counsel sent by LATAM to Owner under the Lease shall also
be sent to Loan Trustee.

 

ARTICLE VII

 

MISCELLANEOUS

 

Section 7.01.
Notices. Unless otherwise expressly specified or permitted by the terms hereof, all notices required or permitted under
the terms and provisions of this Agreement shall be in English and in writing, and given by registered or certified United States
mail, overnight courier service or facsimile, and any such notice shall be effective when received (or, if delivered by facsimile,
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: (a) if to LATAM, the Owner, WTC,
the Loan Trustee, the Subordination Agent or any Pass Through Trustee, to its respective address (including facsimile number) set
forth on Schedule I, or (b) if to any subsequent Noteholder, addressed to such Noteholder at its address set forth
in the Equipment Note Register maintained pursuant to Section 2.07 of the Indenture.

 

Any party,
by notice to the other parties hereto, may designate additional or 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 set forth in this Section 7.01.

 

Section
7.02. Survival of Representations, Warranties, Indemnities, Covenants and Agreements. Except as otherwise provided
for herein, the representations, warranties, indemnities, covenants and agreements of the Owner, WTC, LATAM, the Loan Trustee,
the Subordination Agent, each Pass Through Trustee and the Noteholders provided for in this Agreement, and each of their obligations
hereunder, shall survive the making of the loans, any return of the Aircraft, the transfer of any interest by any Noteholder of
its Equipment Note and the expiration or termination (to the extent arising out of acts or events occurring prior to such expiration)
of any Financing Agreements.

 

    	 	43	 

     

    

 

Section
7.03. Governing Law. THIS AGREEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

 

Section
7.04. Severability. To the extent permitted by applicable law, any provision of this Agreement 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 provision in any other jurisdiction.

 

Section 7.05.
No Oral Modifications or Continuing Waivers; Consents. No terms or provisions of this Agreement may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by the party against which the enforcement of the
change, waiver, discharge or termination is sought; provided that no such change, waiver, discharge or termination shall
be effective unless a signed copy thereof is delivered to the Loan Trustee.

 

Section
7.06. Effect of Headings and Table of Contents. The headings of the various Articles and Sections herein and in the Table
of Contents are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.

 

Section 7.07.
Successors and Assigns. All covenants, agreements, representations and warranties in this Agreement by LATAM, by the Owner,
by WTC, individually or as Loan Trustee, Subordination Agent or Pass Through Trustee, or by any Noteholder, shall bind and inure
to the benefit of and be enforceable by the Owner, LATAM, and subject to the terms of Section 6.03(e), its successors and permitted
assigns, each Pass Through Trustee and any successor or other trustee under the Pass Through Trust Agreement to which it is a party,
the Subordination Agent and its successor under the Intercreditor Agreement and the Loan Trustee and its successor under the Indenture,
whether so expressed or not.

 

    	 	44	 

     

    

  

Section
7.08. Benefits of Agreement. Nothing in this Agreement, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, any benefit or any legal or equitable right, remedy or claim under this Agreement, except
as provided expressly herein. Each of LATAM and the Owner agrees and acknowledges that the Indemnitees and Tax Indemnitees that
are not parties to this Agreement are third party beneficiaries of the indemnities by LATAM contained in Sections 4.03 and 4.04
and that each Liquidity Provider is a third party beneficiary of the Owner’s representations and warranties in Section 4.01,
LATAM’s representations and warranties in Section 4.02, the covenant and agreement of the Owner contained in Section 6.02(e)
and the covenant and agreement of LATAM contained in Section 4.08 and Section 6.03(e), and that such Persons may rely on such indemnities,
representations and warranties or covenants and agreements, as the case may be, to the same extent as if such indemnities, representations
and warranties or covenants and agreements were made to such Indemnitees and Tax Indemnitees or such Liquidity Provider, as the
case may be, directly. WTC, generally, and each of the Loan Trustee, the Subordination Agent and each Pass Through Trustee of each
Pass Through Trust in existence as of the Closing Date, insofar as relating to each such Person, agrees and acknowledges that each
Liquidity Provider is a third party beneficiary of the representations and warranties set forth in Section 5.01, and that such
Liquidity Provider may rely on such representations and warranties to the same extent as if such representations and warranties
were made to such Liquidity Provider directly.

 

Section 7.09.
Counterparts. This Agreement may be executed in any number of counterparts (and each of the parties hereto shall not be
required to execute the same counterpart). Each counterpart of this Agreement including a signature page or pages executed by each
of the parties hereto shall be an original counterpart of this Agreement, but all of such counterparts shall together constitute
one instrument.

 

Section
7.10. Submission to Jurisdiction. Each of the parties hereto, to the extent it may do so under applicable law, for purposes
hereof and of all other Financing Agreements hereby (a) irrevocably submits itself to the non-exclusive jurisdiction of
the courts of the State of New York sitting in the City of New York and to the non-exclusive jurisdiction of the United States
District Court for the Southern District of New York, for the purposes of any suit, action or other proceeding arising out of this
Agreement, the subject matter hereof or any of the transactions contemplated hereby brought by any party or parties hereto or thereto,
or their successors or permitted assigns and (b) waives, and agrees not to assert, by way of motion, as a defense, or otherwise,
in any such suit, action or proceeding, that the suit, action or proceeding is brought in an inconvenient forum, that the venue
of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof or any of the transactions contemplated
hereby may not be enforced in or by such courts. The Owner hereby irrevocably consents and agrees to the service of any and all
legal process, summons, notices and documents of any of the aforementioned courts in any such suit, action or proceeding may be
made by mailing copies thereof by registered or certified mail, postage prepaid, to its agent for process set forth in Schedule
IV to the Note Purchase Agreement.

 

    	 	45	 

     

    

  

Section 7.11.
No Petition. Each of LATAM, the Owner, the Loan Trustee, each Pass Through Trustee, the Subordination Agent and any other
Noteholder covenants that (i)          until one year and one day after the Series A Equipment Notes have been paid in full, it shall not acquiesce,
petition or otherwise invoke or cause or join in invoking or causing the Class A Pass Through Trust or any other Person to invoke
the process of any governmental authority for the purpose of commencing or sustaining a case (whether voluntary or not) against
the Class A Pass Through Trust under any bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Class A Pass Through Trust or any substantial part of its property
or ordering the winding-up or liquidation of the affairs of the Class A Pass Through Trust, (ii) until one year and one
day after the Series B Equipment Notes have been paid in full, it shall not acquiesce, petition or otherwise invoke or cause or
join in invoking or causing the Class B Pass Through Trust or any other Person to invoke the process of any governmental authority
for the purpose of commencing or sustaining a case (whether voluntary or not) against the Class B Pass Through Trust under any
bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Class B Pass Through Trust or any substantial part of its property or ordering the winding-up or liquidation
of the affairs of the Class B Pass Through Trust, (iii) if any Additional Series Equipment Notes of any series shall have
been issued, until one year and one day after such Additional Series Equipment Notes have been paid in full, it shall not acquiesce,
petition or otherwise invoke or cause or join in invoking or causing the related Additional Series Pass Through Trust or any other
Person to invoke the process of any governmental authority for the purpose of commencing or sustaining a case (whether voluntary
or not) against such Additional Series Pass Through Trust under any bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of such Additional Series Pass Through Trust or
any substantial part of its property or ordering the winding-up or liquidation of the affairs of such Additional Series Pass Through
Trust.

 

Section
7.12. Normal Commercial Relations. Anything contained in this Participation Agreement to the contrary notwithstanding, the
Loan Trustee, any Noteholder or any other party to any of the Financing Agreements or the Pass Through Documents or any of their
affiliates may conduct any banking or other financial transactions, and have banking or other commercial relationships, with LATAM
or the Owner , fully to the same extent as if this Participation Agreement were not in effect, including without limitation the
making of loans or other extensions of credit to LATAM for any purpose whatsoever, whether related to any of the transactions contemplated
hereby or otherwise.

 

Section 7.13.
No Waiver. To the extent permitted by applicable law, no failure on the part of any party hereto to exercise, and no delay
by any party hereto in exercising, any of its respective rights, powers, remedies or privileges under this Agreement or provided
at law, in equity or otherwise shall impair, prejudice or constitute a waiver of any such right, power, remedy or privilege or
be construed as a waiver of any breach hereof or default hereunder or as an acquiescence therein nor shall any single or partial
exercise of any such right, power, remedy or privilege preclude any other or further exercise thereof by it or the exercise of
any other right, power, remedy or privilege by it. To the extent permitted by applicable law, no notice to or demand on any party
hereto in any case shall, unless otherwise required under this Agreement, entitle such party to any other or further notice or
demand in similar or other circumstances or constitute a waiver of the rights of any party hereto to any other or further notice,
in any circumstances without notice or demand.

 

    	 	46	 

     

    

  

Section 7.14.
Further Assurances. Each party hereto shall execute, acknowledge and deliver or shall cause to be executed, acknowledged
and delivered, all such further agreements, instruments, certificates or documents, and shall do and cause to be done such further
acts and things, in any case, as any other party hereto shall reasonably request in connection with the administration of, or to
carry out more effectively the purposes of, or to better assure and confirm to such other party the rights and benefits to be provided
under this Agreement, the other Financing Agreements and the Pass Through Documents.

 

Section 7.15.
Limited Recourse. Notwithstanding any other provision of this Agreement or any other Financing Agreement, the obligations
of the Owner to make any payments under the Equipment Notes, this Agreement or any other Financing Agreement shall be equal to
the nominal amount of each payment or, if less, the actual amount received or recovered from time to time by or on behalf of the
Owner which consists of funds which are entitled to be applied by the Owner in making such payment in accordance with this Agreement
and the other Financing Agreements from the Collateral, including amounts payable to the Owner under the Lease and the proceeds
of any contingent claims that are included in the Collateral, and no party hereto will have further recourse to the Owner in respect
of such obligations beyond its rights under this Agreement and the other Financing Agreements. On enforcement of this Agreement
and the other Financing Agreements, after realization of the Collateral, including amounts payable to the Owner under the Lease
and liquidation of any contingent claims that are included in the Collateral, and distribution of all proceeds the Collateral,
including the proceeds of any such Lease payments and contingent claims, in accordance with this Agreement and the other Financing
Agreements, none of the parties hereto may take any further steps against the Owner or against any of its directors or officers
in respect of such obligations. No party hereto (other than the Loan Trustee acting on the direction of the Controlling Party)
will, until the expiry of one year and one day after the payment of all sums outstanding and owing under the latest maturing Equipment
Note then rated, take any corporate action or other steps or legal proceedings for the winding-up, dissolution or re-organization
or for the appointment of a receiver, administrator, administrative receiver, trustee, liquidator, examiner, sequestrator or similar
officer of the Owner, or against any of the revenues and assets of the Owner; provided, however, that nothing shall prevent any
party hereto from otherwise participating in such bankruptcy or other proceeding instituted by any other Person. This Section 7.15
shall not prevent any payment becoming due for the purposes of an Indenture Event of Default.

 

[Signature Pages Follow.]

 

    	 	47	 

     

    

  

IN
WITNESS WHEREOF, the parties hereto have caused this Participation Agreement to be duly executed by their respective officers thereunto
duly authorized as of the date first above written.

 

	 	LATAM AIRLINES GROUP S.A.
	 	 	 
	 	BY:	/s/ Pilar Duarte
	 	 	Name:	Pilar Duarte
	 	 	Title: 	Senior Legal Financing Director

 

	 	PARINA LEASING LIMITED
	 	 	 
	 	BY:	/s/ Pilar Duarte
	 	 	Name:	Pilar Duarte
	 	 	Title: 	Authorized Signatory

 

[Signature Page to Participation Agreement
2015-1 EETCJ]

 

     

     

    

  

	 	
        WILMINGTON TRUST COMPANY,

        as Pass Through Trustee under each of the Pass
        Through Trust Agreements

	 	 	 
	 	BY:	/s/ Drew H. Davis
	 	 	Name:	Drew H. Davis
	 	 	Title: 	Assistant Vice President
	 	 
	 	
        WILMINGTON TRUST COMPANY,

        As Subordination Agent

	 	 	 
	 	BY:	/s/ Drew H. Davis
	 	 	Name:	Drew H. Davis
	 	 	Title: 	Assistant Vice President

 

	 	
        WILMINGTON TRUST COMPANY,

        As Loan Trustee

	 	 	 
	 	BY:	/s/ Drew H. Davis
	 	 	Name:	Drew H. Davis
	 	 	Title: 	Assistant Vice President

 

	 	
        WILMINGTON TRUST COMPANY,

        in its individual capacity
        solely as expressly set

        forth herein

	 	 	 
	 	BY:	/s/ Drew H. Davis
	 	 	Name:	Drew H. Davis
	 	 	Title: 	Assistant Vice President

 

[Signature Page to Participation Agreement
2015-1 EETCJ]

 

     

     

    

 

SCHEDULE I to

PARTICIPATION AGREEMENT

 

CERTAIN TERMS

 

	Aircraft Model:	Airbus A321-200
	 	 
	Chilean Registration Number:	CC-BEE
	 	 
	Manufacturer’s Serial Number:	6698
	 	 
	Purchase Agreement:	“Purchase Agreement” means Second A320 Family Purchase Agreement, dated as of March 20, 1998, as amended pursuant to Amendment No.1, dated February 24, 2000, and as amended and restated pursuant to a deed of amendment and restatement dated August 1, 2000, between Airbus S.A.S. (f/k/a Airbus GIE and Airbus Industrie GIE), as seller, and LATAM (f/k/a LAN Airlines S.A. and LAN Chile S.A.), as buyer, as further amended, supplemented or modified from time to time (including all exhibits thereto, together with all letter agreements entered into that by their terms constitute part of such Purchase Agreement).
	 	 
	Warranty Rights:	“Warranty Rights” means all right and interest of the Owner in to and under the warranty rights given by the Manufacturer in respect of the Airframe to the Owner pursuant to clause 12 (Warranties and Service Life Policy) and clause 13 (Trade Secret, Patent and Copyright Indemnity) of the Purchase Agreement, including all post-delivery rights in respect thereof insofar as they relate to the Airframe, in each case, as are specifically set forth in the Manufacturer Consent and as are and remain available on the date hereof, it being understood that the Warranty Rights exclude any and all other right, title and interest of the Owner, in, to and under the Purchase Agreement and that the Warranty Rights and the grant of a security interest therein are subject to the terms and conditions of the Warranty Assignments.

 

     

     

    

  

Addresses for Notices and Account Details

 

	LATAM:

    LATAM Airlines Group S.A.	LATAM Airlines Group S.A.

    Edificio Huidobro	Bank: Citibank
    N.A. 

ABA No.:  02-10-0008-9
		Avda. Presidente Riesco 5711 Piso 20	Account No.: 36186062
    
	 	Las Condes, Santiago Chile	SWIFT: CITIUS33
	 	Attention: General Counsel/Corporate

Finance Director	Reference:  LATAM
    2015-1

    EETC
		Telephone:     + 56 2 565 3952

    Fax:            + 56 2 565 8764	
	 	E-mail: GrupoTesoreriaPagosChile_2@lanchile.com	 

 

	Owner:	c/o Maples Corporate Services Limited	 
	Parina Leasing Limited	PO Box 309	 
	 	Ugland House 	 
	 	Grand Cayman 	 
	 	KY1-1104	 
	 	Cayman Islands	 

 

	WTC:	Wilmington
    Trust Company 	Bank: Wilmington
    Trust Company
	Wilmington Trust
    Company	1100 North Market Street
    	Wilmington, Delaware
    
	 	Wilmington, Delaware
    19890 	ABA No.: 031-100092
	 	Attention: Corporate
    Trust 	Account No.: 112242-000
    
	 	Admin/Drew Davis

    Reference: LATAM 2015-1	Attention: Corporate
    Trust

    Administration
	 	EETC

    Telephone: 302-636-6182	Reference: LATAM 2015-1

    EETC
	 	Facsimile: 302-636-4140
    E-mail:	 
	 	DHDavis@Wilmingtontrust.co
    m	 

 

    	 	Sch. I - 2	 

     

    

  

	Loan Trustee:	Wilmington
    Trust Company	Bank:
    Wilmington Trust Company
	Wilmington
        Trust Company
	1100 North Market Street	Wilmington,
    Delaware
	 	Wilmington,
    Delaware 19890	ABA
    No.: 031-100092
	 	Attention:
    Corporate Trust	Account
    No.: 112242-000
	 	Admin/Drew
    Davis	Attention:
    Corporate Trust
	 	Reference:
                                         LATAM 2015-1

                                                       EETC
	Administration
Reference: LATAM 2015-1
	 	Telephone:
        302-636-6182

        Facsimile:
        302-636-4140
	   EETC
	 	E-mail:	 
	 	DHDavis@Wilmingtontrust.com	 
	 		 
	Pass Through
    Trustee:	Wilmington
    Trust Company	Bank:
    Wilmington Trust
	Wilmington Trust
    Company	1100
        North Market Street

        Wilmington,
        Delaware 19890
	Company

        Wilmington,
        Delaware

	 	Attention:
    Corporate Trust	ABA
    No.: 031-100092
	 	Admin/Drew
    Davis	Account
    No.: 112396-000
	 	Reference:
    LATAM 2015-1

    EETC	Attention:
    Corporate Trust

    Administration
	 	Telephone:
        302-636-6182

        Facsimile:
        302-636-4140
	Reference:
        LATAM 2015-1

        EETC

	 	E-mail:	 
	 	DHDavis@Wilmingtontrust.com	 
	 		 
	Subordination
    Agent:	Wilmington
    Trust Company	Bank:
    Wilmington Trust
	Wilmington Trust
    Company	1100
        North Market Street

        Wilmington,
        Delaware 19890
	Company

        Wilmington,
        Delaware

	 	Attention:
    Corporate Trust	ABA
    No.: 031-100092
	 	Admin/Drew
    Davis	Account
    No.: 112242-000
	 	Reference:
    LATAM 2015-1	Attention:
    Corporate Trust
	 	EETC

        Telephone:
        302-636-6182

        Facsimile:
        302-636-4140
	Administration

        Reference:
        LATAM 2015-1

        EETC

	 	E-mail:	 
	 	DHDavis@Wilmingtontrust.com	 

 

    	 	Sch. I - 3	 

     

    

 

SCHEDULE II to

PARTICIPATION AGREEMENT

 

EQUIPMENT NOTES,

PURCHASERS AND ORIGINAL
PRINCIPAL AMOUNTS

  

	 	 	Description of	 	 	 	 	 	 	Original	 
	Purchaser	 	Equipment Notes	 	Maturity	 	Interest Rate	 	 	Principal Amount	 
	 	 	 	 	 	 	 	 	 	 	 
	LATAM Pass Through Trust 2015-1A	 	Series 2015-1A 6698 Equipment Notes	 	November 15, 2027	 	 	4.200	%	 	$	33,556,000.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	LATAM Pass Through Trust 2015-1B	 	Series 2015-1B 6698 Equipment Notes	 	November 15, 2023	 	 	4.500	%	 	$	6,496,000.00	 

 

     

     

    

 

SCHEDULE III to

PARTICIPATION AGREEMENT

 

TRUST SUPPLEMENTS

 

Trust Supplement No. 2015-1A,
dated as of the Issuance Date, among LATAM and the Pass Through Trustee in respect of LATAM Pass Through Trust 2015-1A.

 

Trust Supplement No. 2015-1B, dated
as of the Issuance Date, between LATAM and the Pass Through Trustee in respect of LATAM Pass Through Trust 2015-1B.

 

     

     

    

 

EXHIBIT A-1 to

PARTICIPATION AGREEMENT

 

FORM OF OPINION OF

NEW YORK COUNSEL FOR THE
OWNER, LESSEE

 

[Attached.]

 

     

     

    

  

EXHIBIT A-1

FORM OF OPINION OF NY COUNSEL
TO THE OWNER, LESSEE [AND SUBLESSEE]

 

[●]

 

To the Addressees set

forth on the attached Schedule
1

 

Ladies and Gentlemen:

 

We have acted as New York counsel
to [Parina][Cucillo][Rayador][Canastero] Leasing Limited, an exempted limited liability company incorporated under the laws of
the Cayman Islands (the “Owner”), [and] LATAM Airlines Group S.A., a company organized under the laws of the
Republic of Chile (the “Company”) [and TAM Linhas Aereas S.A., a company organized under the laws of the Federal
Republic of Brazil (the "Sublessee")], in connection with the participation agreement ([MSN]) (the “Participation
Agreement”) dated as of [●], 201[_] among, inter alios, the Owner, the Company, Wilmington Trust Company,
individually and as Pass Through Trustee under each of the Pass Through Trust Agreements, Loan Trustee and Subordination Agent.

 

This opinion is being delivered
to you pursuant to Section 3.01(g)(i) of the Participation Agreement. Capitalized terms used herein but not otherwise defined in
this letter shall have the respective meanings given to them in the Indenture (as defined below) or in the Participation Agreement..

 

In rendering the opinions expressed
below, we have examined originals, or copies certified or otherwise identified to our satisfaction, of such corporate and limited
liability company records and agreements of the Owner[,] [and] the Company [and the Sublessee] and agreements and other instruments,
certificates of public officials and of officers, directors and representatives of the Owner[,] [and] the Company[, the Sublessee]
and others, and other documents as we have deemed necessary or appropriate as a basis for the opinions hereinafter expressed, including
the following:

 

(a)          Participation
Agreement;

 

(b)          the
indenture and security agreement ([MSN]) dated as of [●], between the Owner and the Loan Trustee (the “Indenture”);

 

(c)          the
indenture and security agreement supplement ([MSN]) in relation to the Indenture dated [●], made by the Owner (the “Indenture
Supplement”); and

 

(d)          forms
of the Equipment Notes;

 

     

     

    

 

(e)          the
lease agreement ([MSN]) dated as of [●], between the Owner, as lessor, and the Company, as lessee (the "Lease");

 

(f)          the
lease supplement in relation to the Lease dated [●] made by the Company, as lessee (the "Lease Supplement");
[and]

 

(g)          the
assignment of insurances dated [●] made by the Company in favor of the Loan Trustee (the "Assignment of Insurances")[.][;

 

(h)          [the
sublease agreement ([MSN]) dated as of [●], between the Company, as sublessor, and the Sublessee, as sublessee (the "Sublease");

 

(i)          the
acceptance certificate in relation to the Sublease dated [●], made by the Sublessee (the "Acceptance Certificate");
and

 

j)         the
sublease assignment in relation to the Sublease dated [●], among the Company and the Loan Trustee (the "Sublease
Assignment");

 

k)          the
lease assignment ([MSN]) in relation to the Lease dated [●], among the Owner and the Loan Trustee (the "Lease Assignment");

 

(l)          the
subordination acknowledgement in relation to the Sublease dated [●], made by the Sublessee in favor of the Loan Trustee (the
"Subordination Agreement").]

 

Each of the Owner[,][and] the
Company [and the Sublessee] is referred to herein as an "Obligor". When used in this opinion, the term “Transaction
Documents” shall mean the documents listed in items (a), (b), (c) and (e) through [(g)] [(l)] above, and a reference
to “Transaction Document” is a reference to any of them as the context may require.

 

In our examination, we have
assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted
to us as originals and the conformity with the original documents of all documents submitted to us as certified or photostatic
copies. We have also assumed the documents submitted to us are complete and have not been amended other than pursuant to documents
submitted to us. As to factual matters relevant to our opinions expressed below, we have, without independent investigation, relied
upon the representations and warranties made in or pursuant to the Participation Agreement and the Transaction Documents. We have
not reviewed the dockets or other records of any court, arbitrator or governmental or regulatory body or agency.

 

    	 	- 2 -	 

     

    

  

In rendering the opinions expressed
below, we have assumed, with respect to all of the documents referred to in this opinion letter, that (except, to the extent set
forth in the opinions expressed below, as to the Obligors): (i) such documents have been duly authorized by, have been duly executed
and delivered by, and constitute legal, valid, binding and enforceable obligations of, all of the parties to such documents; (ii)
all signatories to such documents have been duly authorized; (iii) each of the parties to such documents are duly organized, validly
existing and, where applicable, in good standing under the laws of the relevant jurisdiction of organization of such party, and
have the full power, authority (corporate, partnership, trust or other) and legal right to carry on its business and execute, deliver
and perform its obligations under such documents; (iv) all authorizations, approvals, licenses or consents of, and all filings
or registrations with, and any other action by, any governmental authority or agency required under any law or any corporate or
other organizational documents of any party to such documents or any agreement or instrument to which such party is a party or
that binds or affects it or any of its property, for the making and performance by such party of the Participation Agreement and
each Transaction Document to which is it a party have been obtained or made and are valid and sufficient for their intended purposes
and in full force and effect; (v) the choice of New York law contained in each of the Transaction Documents is legal and valid
under the laws of any jurisdiction outside the State of New York relevant to the parties thereto and that insofar as any obligation
referred to therein is to be performed in, or by a party organized under the laws of, any jurisdiction outside the State of New
York, its performance will not be illegal or ineffective in that jurisdiction by virtue of the law of that jurisdiction; and (vi)
the execution, delivery and performance of such documents by the respective parties thereto do not, in the case of each such party,
(a) contravene or constitute a breach or violation of the constitutive documents of such party or of any agreement or instrument
binding on such party or any of its properties or (b) contravene or constitute a breach of, and such agreements are not invalid
or unenforceable under, any law, rule or regulation of any governmental authority or body of any jurisdiction.

 

Based upon and subject to the foregoing
and subject also to the assumptions, exceptions, qualifications and limitations set forth herein, and having considered such questions
of law as we have deemed necessary as a basis for the opinions expressed below, we are of the opinion that:

 

1.          Each
Transaction Document constitutes the legal, valid and binding obligations of each Obligor that is a party thereto and is enforceable
against each such Obligor in accordance with its terms, except as may be limited by (a) applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or transfer, or similar laws relating to or affecting creditors' rights and remedies generally,
(b) general principles of equity (regardless of whether considered in a proceeding in equity or at law), including, without limitation,
(i) the possible unavailability of specific performance, injunctive relief or any other equitable remedy and (ii) concepts of materiality,
reasonableness, good faith and fair dealing, and (iii) possible judicial action giving effect to foreign governmental actions or
foreign law; and (c) the fact that rights to indemnity and contribution may be limited by applicable law or principles of public
policy.

 

2.          The
execution and delivery by each Obligor of, the performance and incurrence by each Obligor of its obligations and liabilities under,
and the consummation by each Obligor of the transactions contemplated by, the Transaction Documents to which such Obligor is a
party do not violate any Applicable Law.

 

    	 	- 3 -	 

     

    

  

3.          No
consent, approval, authorization or filing of or with any Governmental Authority pursuant to any Applicable Law, is required for
the execution and delivery by each Obligor of the Transaction Documents to which it is a party or the granting or perfection of
any security interests under the Indenture, as supplemented by the Indenture Supplement [the Lease Assignment and the Sublease
Assignment], except (a) the filings, registrations and other actions required by the Participation Agreement for the perfection
of security interests granted pursuant to the Indenture, as supplemented by the Indenture Supplement [the Lease Assignment and
the Sublease Assignment], (b) such other consents, approvals, authorizations, orders or filings, each of which has been obtained,
filed or made and, to our knowledge after due inquiry, remains in full force and effect and (c) in the case of collateral constituting
securities, as may be required in connection with any disposition of such collateral.

 

4.          Upon
issuance, execution, authentication and delivery of the Equipment Notes at the Closing on the date hereof, the Indenture, as supplemented
by the Indenture Supplement, is effective to create, in favor of the Loan Trustee, for the benefit of the Note Holders and each
of the Indenture Indemnitees, a valid security interest in all of the Owner's right, title and interest of the to and in the Collateral
(as defined in the Indenture) to the extent a security interest may be created under Article 9 of the Uniform Commercial Code as
in effect in the State of New York (the "NYUCC"), provided that (a) such security interest will continue in the
Collateral after any disposition thereof and in any "proceeds" (as such term is defined in Section 9-102(a)(64) of the
NYUCC) only to the extent provided in Section 9-315 of the NYUCC and comparable provisions of the DCUCC (as defined below) and
(b) such security interest in any portion of the Collateral in which the Owner acquires rights after the commencement of a case
under United States Bankruptcy Code, 11 U.S.C. Section 101 et seq (the “Bankruptcy Code”), in respect
of the Owner may be limited by Section 552 of the Bankruptcy Code.

 

5.          If
the Owner’s place of business or (if it has more than one place of business) chief executive office is in a country which
constitutes a filing jurisdiction as hereinafter defined (as to which we express no opinion), under Section 9-301 and Section 9-307
of the NYUCC, the local law of such country governs perfection, the effect of perfection or nonperfection and the priority of the
security interests created by the Indenture, as supplemented by the Indenture Supplement, to the extent granted by the Owner. If
the Owner’s place of business or (if it has more than one place of business) chief executive office is in a country which
does not constitute a filing jurisdiction as hereinafter defined, (a) the Owner will be deemed to be located in the District of
Columbia for purposes of Article 9 of the NYUCC, (b) under Section 9-301 and Section 9-307 of the NYUCC, the local law of the District
of Columbia governs perfection, the effect of perfection or nonperfection and the priority of the security interests purported
to be created by the Indenture, as supplemented by the Indenture Supplement, to the extent granted by the Owner and (c) pursuant
to Section 9-501 of the Uniform Commercial Code as in effect in the District of Columbia (the "DCUCC"), upon the
acceptance for filing in the office of the Recorder of Deeds in the District of Columbia of the DCUCC financing statements in the
forms attached as Annex I hereto naming the Loan Trustee as secured party and the Owner as debtor, the Loan Trustee will have a
perfected security interest in the collateral described therein to the extent the perfection of a security interest therein may
be effected under Article 9 of the NYUCC and the DCUCC by the filing of a financing statement. As used herein, “filing jurisdiction”
means a jurisdiction whose law generally requires information concerning the existence of a nonpossessory security interest to
be made generally available in a filing, recording or registration system as a condition or result of the security interest’s
taking priority over the rights of a lien creditor (as defined Section 9-102(a)(52) of the NYUCC) with respect to collateral.

 

    	 	- 4 -	 

     

    

  

[6. The
Sublease Assignment is effective to create, in favor of the Loan Trustee, for the benefit of the Note Holders and each of the Indenture
Indemnitees, a valid security interest in all of the Company's right, title and interest of the to and in the Lease Collateral
(as defined in the Sublease Assignment) to the extent a security interest may be created under Article 9 of the NYUCC, provided
that (a) such security interest will continue in such Lease Collateral after any disposition thereof and in any "proceeds"
(as such term is defined in Section 9-102(a)(64) of the NYUCC) only to the extent provided in Section 9-315 of the NYUCC and comparable
provisions of the Uniform Commercial Code of the State of Florida and (b) such security interest in any portion of the Lease Collateral
in which the Company acquires rights after the commencement of a case under the Bankruptcy Code in respect of the Company may be
limited by Section 552 of the Bankruptcy Code.

 

7. If the
Company’s place of business or (if it has more than one place of business) chief executive office is in a country which constitutes
a filing jurisdiction as hereinafter defined (as to which we express no opinion), under Section 9-301 and Section 9-307 of the
NYUCC, the local law of such country governs perfection, the effect of perfection or nonperfection and the priority of the security
interests created by the Sublease Assignment, to the extent granted by the Company. If the Company is a foreign air carrier under
the Federal Aviation Act of 1958, as amended, under Section 9-307(j) of the NYUCC, (a) the Company is located at the designated
office of the agent upon which service of process may be made on behalf of the carrier, (b) the Company will be deemed to be located
in the State of Florida for purposes of Article 9 of the NYUCC and (c) under Section 9-301 and Section 9-307 of the NYUCC, the
local law of the State of Florida governs perfection, the effect of perfection or nonperfection and the priority of the security
interests purported to be created by the Sublease Assignment to the extent granted by the Company.]

 

[8. The
Lease Assignment is effective to create, in favor of the Loan Trustee, for the benefit of the Note Holders and each of the Indenture
Indemnitees, a valid security interest in all of the Owner's right, title and interest of the to and in the Lease Collateral (as
defined in the Lease Assignment) to the extent a security interest may be created under Article 9 of the NYUCC, provided that (a)
such security interest will continue in such Lease Collateral after any disposition thereof and in any "proceeds" (as
such term is defined in Section 9-102(a)(64) of the NYUCC) only to the extent provided in Section 9-315 of the NYUCC and comparable
provisions of the DCUCC and (b) such security interest in any portion of the Lease Collateral in which the Company acquires rights
after the commencement of a case under the Bankruptcy Code in respect of the Company may be limited by Section 552 of the Bankruptcy
Code.

 

9.          If
the Owner’s place of business or (if it has more than one place of business) chief executive office is in a country which
constitutes a filing jurisdiction as hereinafter defined (as to which we express no opinion), under Section 9-301 and Section 9-307
of the NYUCC, the local law of such country governs perfection, the effect of perfection or nonperfection and the priority of the
security interests created by the Lease Assignment, to the extent granted by the Owner. If the Owner’s place of business
or (if it has more than one place of business) chief executive office is in a country which does not constitute a filing jurisdiction
as hereinafter defined, (a) the Owner will be deemed to be located in the District of Columbia for purposes of Article 9 of the
NYUCC, (b) under Section 9-301 and Section 9-307 of the NYUCC, the local law of the District of Columbia governs perfection, the
effect of perfection or nonperfection and the priority of the security interests purported to be created by the Indenture, as supplemented
by the Indenture Supplement, to the extent granted by the Owner and (c) pursuant to Section 9-501 of the DCUCC, upon the acceptance
for filing in the office of the Recorder of Deeds in the District of Columbia of the DCUCC financing statements in the forms attached
as Annex II hereto naming the Loan Trustee as secured party and the Owner as debtor, the Loan Trustee will have a perfected security
interest in the collateral described therein to the extent the perfection of a security interest therein may be effected under
Article 9 of the NYUCC and the DCUCC by the filing of a financing statement.]

 

    	 	- 5 -	 

     

    

  

For the purposes of this opinion,
(i) the term “Applicable Law” means laws, rules and regulations of any Governmental Authority which a New York
lawyer exercising customary professional diligence would reasonably be expected to recognize as applicable to the type of transactions
contemplated by the Transaction Documents and excluding any law that may be applicable to the Transaction Documents solely because
of the specific assets or business of any party to any of the Transaction Documents or any of its affiliates; (ii) the term “Governmental
Authority” means any United States federal or State of New York administrative, judicial or other governmental agency,
authority, tribunal or body; and (iii) the term “Governmental Approval” means any consent, authorization, approval
or order of, or registration, qualification or filing with, any Governmental Authority under Applicable Law.

 

The opinions set forth above
are subject to the following qualifications and limitations:

 

(a)          We
express no opinion as to any provision in any Transaction Document providing for indemnification or reimbursement obligations or
limitation on liability insofar as such provision provides exculpation or exemption from, or requires indemnification or reimbursement
of any Person for, such Person’s own action or inaction, where such action or inaction involves such Person's gross negligence,
willful misconduct, recklessness or unlawful conduct.

 

(b)          We
express no opinion as to any provision contained in any of the Transaction Documents that (i) purports to establish or may be construed
to establish evidentiary standards or standards for the performance of the obligations of good faith, diligence, reasonableness
and care contrary to standards prescribed by law, (ii) relates to the jurisdiction of federal courts, (iii) relates to amounts
imposed in circumstances of prepayment, termination, breach or default to the extent such amounts may be held to constitute a penalty
or forfeiture or a liquidated damages provision, (iv) provides for the waiver of any statutory right or any broadly or vaguely
stated rights or unknown future rights, or any waiver which is against public policy considerations, (v) provides for severability
of the provisions of a Transaction Document or asserting that the partial invalidity of one or more provisions thereof shall not
invalidate the remaining provisions thereof or (vi) provides that the terms thereof may not be waived or modified except in writing,
which may be limited under certain circumstances.

 

(c)          We
express no opinion as to (i) the effect of the laws of any jurisdiction in which any party is located (other than the State of
New York) that limit the interest, fees or other charges such party may impose for the loan or use of money or other credit, or
(ii) any provision of any Transaction Document that provides for an absolute and unconditional obligation to perform under such
Transaction Document even though such Transaction Document is invalid, terminated or such performance would be illegal or that
provides a waiver of any other defense that cannot, as a matter of law, be effectively waived.

 

    	 	- 6 -	 

     

    

  

(d)          Certain
of the remedial provisions of the Transaction Documents may be further limited or rendered unenforceable by applicable law, but
in our opinion such law does not make the remedies afforded by such Transaction Documents inadequate for the practical realization
of the principal benefits intended to be provided, except for the economic consequence of any delay which may be imposed by or
result from such limitations or unenforceability.

 

(e)          With
respect to our opinions in paragraphs 4 through [5][9] above: (I) we express no opinion as to (i) the creation, perfection or priority
of any security interest in (or other lien on) any portion of the Collateral to the extent that, pursuant to Section 9- 109(c)
or (d) of the NYUCC, Article 9 of the NYUCC does not apply thereto; (ii) the effect of any rule adopted by a clearing corporation
(as defined in Section 8-102(a) of the NYUCC), governing rights and obligations among such clearing corporation and its participants;
(iii) the creation of any security interest in commingled goods (as defined in Section 9-336(a) of the NYUCC); and (iv) the creation,
perfection or priority of any security interest in any obligations of the Government of the United States or any agency or instrumentality
thereof except for obligations subject to the Federal Book-Entry Regulations; and (II) (i) we assume that each endorsement, instruction
and entitlement order, as such terms are defined in Section 8-102(a) of the NYUCC, is effective in accordance with Section 8-107
of the NYUCC, (ii) the Securities Intermediary is a securities intermediary within the meaning of the NYUCC and the Federal Book-Entry
Regulations, (iii) the Securities Account and each other Eligible Account established pursuant to the Indenture is a securities
account within the meaning of Section 8-501 of the NYUCC, (iv) the Loan Trustee is the only entitlement holder within the meaning
of Section 8-102(a)(7) of the NYUCC and the Federal Book-Entry Regulations of the Securities Account and each other Eligible Account
established pursuant to the Indenture and any pledged financial assets from time to time credited to each such account, and (v)
the Securities Intermediary, if it holds any pledged financial assets directly, holds them in the Securities Account or any other
Eligible Account established pursuant to the Indenture indorsed to the Securities Intermediary or in blank. Any opinions expressed
in paragraphs 4 or 5 [or 6 or 7, 8 or 9[ above with respect to any security entitlement (as defined in Section 8-102(a) of the
NYUCC) is subject to Part 5 of Article 8 of the NYUCC. We have assumed that the Collateral exists, that the applicable Obligor
has rights in, or with respect to after-acquired property, will have rights in, the Collateral, and that value has been given for
the security interests created pursuant to the Indenture, as supplemented by the Indenture Supplement [and the Sublease Assignment].
We note that with respect to any after-acquired property, the security interest therein purported to be granted under the Indenture,
as supplemented by the Indenture Supplement, [or the Sublease Assignment] will not attach until the applicable Obligor acquires
rights therein.

 

    	 	- 7 -	 

     

    

  

(f)          We
express no opinion as to (i) the existence or ownership of, the right or title to, the interest in, or the power to transfer, any
collateral, (ii) whether any jurisdiction (other than the State of New York and the District of Columbia to the extent provided
in paragraphs 4 through [5] [9] above) will recognize the perfection of any security interest in any collateral or (iii) whether
any court other than a court of the State of New York or a federal court sitting in the State of New York and applying New York
law would give effect to the choice of New York law provided for in the Transaction Documents or would apply New York law under
Section 9-301 of the NYUCC or otherwise.

 

(g)          Except
as expressly provided in paragraphs 4 through [5][9] above, and subject further to the exceptions and qualifications specified
herein, we express no opinion as to the creation, perfection, effect of perfection or priority of any security interest in, or
other lien on, the Collateral.

 

(h)          The
continued perfection of a security interest created by the Owner in favor of the Loan Trustee and perfected by the filing of a
financing statement will depend upon the timely filing of periodic continuation statements relating to the financing statement
in accordance with the DCUCC and may depend upon (i) the continued “location” of the Owner for purposes of the NYUCC
and the DCUCC in the District of Columbia be; and (ii) the continuation of the current corporate name of the Owner.

 

(i)          We
call to your attention that the security interest in any Collateral [or Lease Collateral] constituting “payment intangibles,”
“general intangibles” or “accounts” (as such terms are defined in the NYUCC) may be subject to the rights,
claims and defenses of account debtors and the terms of agreements with account debtors. In the case of any Collateral [or Lease
Collateral] which is itself secured by other property, we express no opinion with respect to the Loan Trustee's rights in and to
such underlying property.

 

(j)          We
wish to point out that the attachment of the security interests to be granted under the Indenture[, the Lease Assignment or the
Sublease Assignment] to any property acquired by any Obligor after the Closing may constitute a voidable preference under Section
547 of the Bankruptcy Code.

 

(k)          We
draw to your attention that the legality, validity, binding effect and enforceability of any provision which (i) prohibits a party’s
assignment or transfer of its rights under an agreement, account, chattel paper, lease, payment intangible or promissory note,
(ii) requires another party’s consent to an assignment or transfer thereof or (iii) gives rise to a default or right of termination
upon an assignment or transfer thereof, is subject to Sections 9-406 through 9-409 of the NYUCC.

 

(l)          With
respect to matters involving the DCUCC, we draw your attention to the fact that we are not admitted to the bar in the District
of Columbia and are not experts in the laws of the District of Columbia and that the opinions concerning the DCUCC are based solely
upon a review of the relevant statutory text of Article 9 of the DCUCC as displayed on LEXIS/NEXIS as of the date hereof without
regard to any decisional law of the District of Columbia and in reliance on D.C. Mun. Regs., tit. 9, §513.2 which provides
(notwithstanding the provisions of Section 9-501(a) of the DCUCC specifying that the office in which to file a financing statement
for all collateral other than as- extracted collateral and timber to be cut is the Office of the Mayor) that “[a] financing
statement to perfect a security interest shall be filed with the Recorder of Deeds."

 

    	 	- 8 -	 

     

    

  

(m)          We
express no opinion as to the applicability to the obligations of any Obligor under any Transaction Document under (or the enforceability
of such obligations under) Section 548 of the Bankruptcy Code, Article 10 of the New York Debtor and Creditor Law or any other
provision of law relating to fraudulent conveyances, transfers or obligations, or the provisions of the law of the jurisdiction
of incorporation of any Obligor restricting dividends, loans or other distributions by a corporation for the benefit of its stockholders.

 

[(n) In
rendering our opinions set forth in paragraphs 6 and 7 above, we have expressly relied upon the representation of the Company
that it is a "foreign air carrier" under the Federal Aviation Act of 1958, as amended and codified at 49 U.S.C.
§40102(a)(21) and that for purposes of 49 U.S.C. §46103 and UCC 9-307, the Company has designated an agent located in
[Miami, Florida].]

 

As
used herein, "Federal Book-Entry Regulations" means (a) the federal regulations contained in Subpart B ("Treasury/Reserve
Automated Debt Entry System TRADES") governing book-entry securities consisting of U.S. Treasury notes, bills and bonds
and Subpart D ("Additional Provisions") of 31 C.F.R. Part 357, 31 C.F.R. § 357.10 through § 357.15 and
§ 357.40 through §357.45, including related defined terms in §357.2); and (b) to the extent substantially
identical to the federal regulations referred to in clause (a) above, the federal regulations governing other book-entry securities.

 

The foregoing opinions are limited
to matters involving the federal laws of the United States of America, the laws of the State of New York and, insofar as may be
relevant to our opinions expressed herein in paragraphs 4 and 5, the DCUCC, in each case as in effect on the date hereof. We are
members of the bar of the State of New York, and our opinions relating to the DCUCC are based solely on our review of statutory
compilations of such laws appearing in recognized reporting services (except as set forth in paragraph [(n)] of the qualifications
and limitations set forth above), and we do not express any opinion as to the laws of any other jurisdiction. Without limiting
the foregoing, we do not express any opinion as to the laws of any other jurisdiction, including, without limitation, the laws
of the State of Florida, the Cayman Islands, the Republic of Chile or the Federal Republic of Brazil. We express no opinion as
to federal aviation law or the Cape Town Treaty or other laws, rules or regulations applicable to the equipment subject to the
Transaction Documents. We also express no opinion as to the effect of, or compliance with, any United States federal or state laws
regarding fraudulent transfers or fraudulent conveyances or laws governing preferential transfers, taxes, ERISA or any other laws,
rules or regulations related to employee benefits or any United States federal or state securities or "blue sky" laws,
rules or regulations

 

    	 	- 9 -	 

     

    

  

The opinions set forth herein are
rendered as of the date hereof and we disclaim any undertaking to update this letter or otherwise advise you as to any changes
of law or fact that may hereafter be brought to our attention. This opinion is rendered only to you and is solely for your benefit
in connection with the closing of the transactions contemplated by the Participation Agreement and the issuance of the Equipment
Notes occurring today. Except to the extent required pursuant to applicable law, this opinion may not be relied upon by you for
any other purpose, or relied upon by any other person or for any purpose, nor may copies hereof be furnished to a third party except
your professional advisers, filed with a government agency, used, quoted, cited or otherwise referred to without our specific prior
written consent in each instance.

 

Very truly yours,

 

    	 	- 10 -	 

     

    

  

Schedule 2

 

ADDRESSEES

 

Wilmington Trust Company, in its individual capacity
and as Pass Through Trustee, Loan Trustee and Subordination Agent

 

Natixis, as Liquidity Provider

 

Standard & Poor's
Ratings Services

 

Moody's Investors Services, Inc.

 

Citigroup Global Markets Inc.

 

Deutsche Bank Securities
Inc.

 

J.P. Morgan
Securities LLC

 

Natixis Securities Americas LLC

 

    	 	Sch. 2-1 	 

     

    

  

Annex I

 

[Indenture Financing Statements]

 

     

     

    

  

[Annex II]

 

[Lease Assignment Financing Statements]

 

     

     

    

 

EXHIBIT A-2 to

PARTICIPATION AGREEMENT

 

FORM OF OPINION OF

IN-HOUSE COUNSEL FOR THE
LESSEE

 

[Attached.]

 

     

     

    

  

 

EXHIBIT A-2

FORM OF IN-HOUSE LEGAL OPINION
OF LESSEE

 

________________, 20__

 

To the Persons Listed on Schedule I Hereto

 

Ladies and Gentlemen:

 

I am General Counsel of LATAM
Airlines Group S.A. ("LATAM") and have acted in such capacity in connection with connection with the participation
agreement ([MSN]) (the “Participation Agreement”) dated as of [●], 201[_] among, inter alios, the
[Parina][Cucillo][Rayador][Canastero] Leasing Limited (the "Owner"), LATAM, Wilmington Trust Company, individually
and as Pass Through Trustee under each of the Pass Through Trust Agreements, Loan Trustee and Subordination Agent. All capitalized
terms used herein and not otherwise defined herein shall have the respective meanings given those terms in the Participation Agreement
(including by reference to other documents). This opinion letter is being furnished to you pursuant to Section 3.01(g)(ii) of the
Participation Agreement.

 

In rendering the opinions set
forth herein, I have examined the following documents (the "Operative Documents"):

 

		(i)	the Participation Agreement;

 

		(ii)	the lease agreement ([MSN]) dated as of [●], between the Owner, as lessor, and LATAM, as
lessee;

 

		(iii)	the lease assignment ([MSN]) dated as of [●] among the LATAM, the Owner and the Loan Trustee;

 

		(iv)	[the
                                         sublease agreement ([MSN]) dated as of [●], between LATAM, as sublessor, and the
                                         Sublessee, as sublessee (the "Sublease")];1

 

		(v)	[the
                                         sublease assignment in relation to the Sublease dated as of [●], among LATAM, the
                                         Loan Trustee and Sublessee together with the form of subordination acknowledgment];2

 

		(vi)	the assignment of insurances dated as of [●] made by LATAM in favor of the Loan Trustee;

 

		(vii)	[the
                                         Purchase Agreement Assignment dated as of [●] among The Boeing Company, LATAM,
                                         the Owner and the Loan Trustee];3

 

		(viii)	[the
                                         Purchase Agreement Assignment dated as of [●] between LATAM, as lessee, and the
                                         Owner];4

 

 

1 Include if the Aircraft is
subleased to Sublessee at delivery.

2 Include if the Aircraft is
subleased to Sublessee at delivery.

3 Include for Boeing aircraft.

4 Include for Airbus aircraft.

 

     

     

    

  

		(ix)	[the
                                         Airframe Warranties Agreement dated as of [●] among Airbus S.A.S, the Owner, LATAM
                                         and the Loan Trustee];5

 

		(x)	[the
                                         Airframe Warranties Agreement dated as of [●] among Airbus S.A.S., the Owner, LATAM,
                                         the Initial Sublessee and the Loan Trustee];6

 

		(xi)	[the
                                         Engine Warranties Agreement dated as of [●] among the Engine Manufacturer, LATAM,
                                         the Owner and the Loan Trustee];7

 

		(xii)	[the
                                         Engine Warranties Agreement dated as of [●] among the Owner, LATAM and the Loan
                                         Trustee];8 and

 

		(xiii)	[the
                                         Engine Warranties Agreement dated as of [●] among the Owner, LATAM, the Initial
                                         Sublessee and the Loan Trustee]9.

 

I have also examined such other
documents, instruments and materials as I have considered relevant in connection with the opinions set forth herein.

 

Subject to the comments and qualifications set forth
below, I am of the opinion that:

 

(a)          LATAM
is duly organized and validly existing and in good standing under the laws of its jurisdiction except where the failure to be so
qualified or in good standing would not have a material adverse effect on the business of LATAM.

 

(b)          LATAM
is duly qualified or otherwise authorized to do business as an air carrier in all jurisdictions in which it has air routes except
for jurisdictions where failure to so qualify or obtain authorization would not have a material adverse effect on the business
of LATAM.

 

(c)          The
execution, delivery and performance by LATAM of the Operative Documents to which it is party, and the consummation of the transactions
contemplated thereby, do not (i) contravene any judgment, order, writ, injunction or decree of any court or governmental authority
applicable to LATAM or (ii) require any stockholder approval or the approval or consent of any trustee or holders of any Financial
Indebtedness or other obligations of LATAM, except such as have been duly obtained and remain in full force and effect.

 

(d)          The
execution, delivery and performance by LATAM of the Operative Documents to which it is a party, and the consummation of the transactions
contemplated thereby, do not violate or constitute a default under, or result in the creation of any Lien (other than Permitted
Liens) upon the Aircraft under, any indenture, mortgage, contract, or other agreement known to me to which LATAM is a party or
by which any of its properties may be bound.

 

(e)          There
are no pending or, to the best of my knowledge and information, threatened investigations, judgments, suits or proceedings before
any court or administrative agency or arbitrator against LATAM or affecting LATAM or its properties that relate to the transactions
contemplated by the Operative Documents that, if adversely determined, would materially adversely affect LATAM’s ability
to perform its respective obligations under the Operative Documents.

 

 

5 Include for Airbus Chilean aircraft.

6 Include for Airbus Brazilian aircraft.

7 Include for Aircraft using Rolls Royce engines.

8 Include for Chilean Aircraft using CFM engines.

9 Include for Brazilian aircraft using CFM engines.

 

     

     

    

  

(f)          To
the best of my knowledge, LATAM is not in default in any material respect under any material agreement to which it is a party or
by which it may be bound.

 

Whenever a statement herein
is qualified by "to the best of my knowledge and information" or similar phrase, it is intended to indicate that neither
I nor any lawyer employed by LATAM has current actual knowledge of the inaccuracy of such statement. However, except as otherwise
expressly indicted, I have not undertaken any independent investigation to determine the accuracy of any such statement, and no
inference that I have any knowledge of any matters pertaining to such statement should be drawn.

 

	 	Very truly yours,
	 	 
	 	 
	 	[_____________________]
	 	General Counsel

 

     

     

    

 

 

 

SCHEDULE I

 

Wilmington Trust Company, as Pass Through Trustee, Loan
Trustee and Subordination Agent

 

Natixis, acting through its New York Branch, as Liquidity Provider

 

Standard & Poor's Ratings Services

 

Moody's Investors
Services, Inc.

 

Citigroup Global Markets Inc.

 

Deutsche Bank Securities
LLC

 

J.P. Morgan
Securities LLC

 

Natixis Securities Americas LLC

 

     

     

    

 

EXHIBIT A-3 to

PARTICIPATION AGREEMENT

 

[RESERVED].

 

[Attached.]

 

     

     

    

 

EXHIBIT A-4 to

PARTICIPATION AGREEMENT

 

FORM OF OPINION OF SPECIAL FLORIDA COUNSEL
(LEASE)

 

[Attached.]

 

     

     

    

 

[______________________,
201 ]

 

To: Each of the Addressees

       Listed on Schedule I hereto

 

Re:       LATAM
/ [[Parina Leasing Limited/Rayador Leasing Limited/Cuclillo Leasing Limited/Canastero Leasing Limited] (the “Owner”)]
- MSN [•]

 

Ladies and Gentlemen:

 

We have
acted as special Florida counsel to LATAM Airlines Group S.A., a company organized under the laws of the Republic of Chile (the
“Lessee”) and TAM Linhas Aéreas S.A., a company organized under the laws of the Federative Republic
of Brazil (the “Sublessee”) in connection with the transactions contemplated by that certain Participation
Agreement dated as of [, 201 ] (the “Participation Agreement”) among, inter alios,
the Owner, the Lessee, the Sublessee, Wilmington Trust Company, individually and as Pass Through Trustee under each of the Pass
Through Trust Agreements, Loan Trustee and Subordination Agent, regarding, inter alios, the leasing of one (1) [Airbus/Boeing]
[A321/A350/787-[9]] aircraft, bearing manufacturer’s serial number [•] and Registration Number [•], together with
two (2) [Rolls-Royce Trent/CFM International] model [XWB-84/1000/CFM 56-5B3/3] aircraft engines, bearing manufacturer’s serial
numbers [•]and [•]] (collectively, the “Aircraft”).

 

This opinion letter is being delivered
to you pursuant to Section 3.01(g) of the Participation Agreement. Capitalized terms used in this opinion and not otherwise defined
herein shall have the meanings ascribed to them (or incorporated by reference) in the Participation Agreement.

 

In our examination
of the documents referred to below, we have assumed the genuineness of all signatures, the legal capacity of natural persons, the
authenticity of all documents submitted to us as originals and the conformity to authentic originals of all documents submitted
to us as copies. As to any facts relevant to the opinion expressed below we have, without independent verification or investigation,
relied upon certificates, statements and representations of the Lessee and the Sublessee and their respective officers and other
representatives, of other parties to the Financing Agreements, and of public officials.

 

In rendering
the opinions set forth herein, we have examined and relied on originals or copies of the following:

 

		(a)	the Participation Agreement;

 

     

     

    

  

		(b)	the Lease Agreement MSN [•] dated as of [_______________, 2015] (the “Lease”),
between the Owner, as lessor, and the Lessee, as lessee;

 

		(c)	the Acceptance Certificate dated as of dated the date hereof (the “Lease Acceptance
Certificate”), made by the Lessee in respect of the Aircraft;

 

		(d)	the Lease Security Assignment dated the date hereof (the “Lease Assignment”),
among the Owner, as grantor, and the Loan Trustee;

 

		(e)	the Aircraft Lease Agreement dated as of [_____________, 2015] (the “Sublease”),
between the Lessee, as sublessor, and the Sublessee, as sublessee;

 

		(f)	the Aircraft Acceptance Certificate dated the date hereof (the “Sublease Acceptance
Certificate”), made by the Sublessee in respect of the Aircraft;

 

		(g)	the Sublease Security Assignment dated the date hereof (the “Sublease Assignment”),
among the Lessee, as grantor, and the Loan Trustee; and

 

		(h)	the UCC1 Financing Statements attached hereto as Annex A, which name (i) the Lessee, as debtor, the Owner, as assignor secured
party, and the Loan Trustee, as assignee secured party; and (ii) the Lessee, as debtor, and the Loan Trustee, as secured party
(each a “Financing Statement” and collectively, the “Financing Statements”).

 

We have also
examined such other corporate documents and records, and such other certificates, opinions and instruments, and have conducted
such investigation, as we have deemed necessary as a basis for the opinion expressed below.

 

The documents
referred to in clauses (a) through (g) above shall hereinafter be referred to collectively as the “Financing Agreements”.
References contained herein to (i) the term “Applicable Laws” shall mean the laws, rules and regulations
of the State of Florida; (ii) the term “Governmental Authorities” means any Florida executive, legislative,
judicial, administrative or regulatory body; (iii) the term “Governmental Approval” means any consent,
approval, license, authorization or validation of, or filing, recording or registration with, any Governmental Authority pursuant
to Applicable Laws; (iv) the term “UCC” means the Uniform Commercial Code as adopted and in effect on
the date hereof in the State of Florida and as codified in Chapter 670 et seq. of the Florida Statutes; (v) the term “Federal
Aviation Code” means the sections of Title 49 of the United States Code relating to aviation, as amended from time
to time, or any similar legislation of the United States enacted in substitution or replacement therefor; and (vi) the term “Cape
Town Treaty” means the Cape Town Convention on International Interests in Mobile Equipment and the related Aircraft
Equipment Protocol, as in effect in the United States of America.

 

We are admitted
to the Bar in the State of Florida. We express no opinion as to the laws of any jurisdiction other than the laws of the State of
Florida. In this respect we call to your attention that certain of the Financing Agreements are governed by the laws of jurisdictions
other than those of the State of Florida and we express no opinion as to the effect of any such other laws on the opinions expressed
herein.

 

    	 	2	 

     

    

  

In rendering this opinion, we have assumed, with your
consent, that:

 

(i)          each
of the Financing Agreements has been duly authorized, executed and delivered by each party thereto;

 

(ii)         each
party to the Financing Agreements (A) has been duly organized and is validly existing and in good standing under the laws of its
jurisdiction of organization, and (B) has the power and authority to execute, deliver and perform all of its obligations under
each of the Financing Agreements to which it is a party;

 

(iii)        the
execution and delivery by each party to any Financing Agreements to which it is a party, and the performance by each party of any
of its obligations thereunder, do not and will not conflict with, contravene, violate or constitute a default under (A) any lease,
indenture, instrument or other agreement to which such party or its property is subject, (B) any law, rule or regulation to which
such party is subject, (C) any judicial or administrative order or decree of any court, governmental authority or regulatory body,
or (D) its certificate of formation, charter, by-laws, or similar instrument; and

 

(iv)        no
authorization, consent, license or other approval of, notice to or filing with any court, governmental authority or regulatory
body is required to authorize or is required in connection with the execution, delivery or performance by any party of any Financing
Agreement to which it is a party or the transactions contemplated thereby.

 

Our opinions
are also subject to the following assumptions, qualifications, exceptions and limitations:

 

(A)         We
have assumed that each of the Financing Agreements constitutes the legal, valid and binding obligation of each party thereto, enforceable
against such parties in accordance with its terms.

 

(B)         We
express no opinion as to the effect on the opinions herein stated of (i) the compliance or non-compliance of any party to the Financing
Agreements with any state, federal or other laws or regulations applicable to them or (ii) the legal or regulatory status or the
nature of the business of any such party.

 

(C)         In
rendering our opinion expressed below, we express no opinion as to the applicability or effect of Section 548 of the United States
Bankruptcy Code (the “Bankruptcy Code”) or any fraudulent transfer or comparable provision of state law
on the Financing Agreements or any transactions contemplated thereby.

 

(D)         In
rendering our opinion expressed below, we express no opinion as to the applicability or effect of Section 547 of the Bankruptcy
Code or any comparable provision of state law on the Financing Agreements or any transaction contemplated thereby.

 

    	 	3	 

     

    

  

(E)         We
express no opinion with respect to (i) the laws, rules, regulations, ordinances, administrative decisions or orders of any county,
town or municipality or governmental subdivision or agency thereof, (ii) state securities or blue sky laws or federal securities
laws, including the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, (iii) any federal or
state tax, labor, banking, antitrust, intellectual property, anti-money laundering, anti-terrorism, environmental or fraudulent
transfer or conveyance laws, (iv) the Public Utility Holding Company Act of 2005, as amended, (v) the Employee Retirement Income
Security Act of 1974, as amended, or (vi) the Federal Aviation Code, the Cape Town Treaty or any other laws, rules or regulations
governing, regulating or relating to the acquisition, ownership, registration, use, maintenance or sale of an aircraft, an airframe,
or an aircraft engine.

 

(F)         We
call to your attention that provisions of the Financing Agreements which provide that a guaranty by a party thereto or the grant
of a lien or security interest by a party thereto to secure the obligations of a third party shall not be affected by changes in
or amendments to the Financing Agreements or other relevant documents might be enforceable only to the extent such changes or amendments
are not so material as to constitute a new agreement among the parties to such documents.

 

(G)         We
have assumed for purposes of the opinion set forth below that each of the Lessee and the Sublessee has rights in the collateral
as described in the Financing Agreements and its name, identity, corporate structure, jurisdiction of organization, principal place
of business and chief executive office have not been nor will be changed. To the extent that any Financing Agreement purports to
create a security interest in property in which each of the Lessee and the Sublessee has no present rights, such security interest
will attach and be enforceable only when each of the Lessee and the Sublessee acquires rights in such property (as contemplated
by Section 679.2031 of the UCC). The opinion set forth below is further subject to each of the qualifications, limitations, exceptions
and exclusions set forth in Chapter 679 of the UCC (including but not limited to (a) limitations on the continued perfection of
security interests (i) in proceeds under Section 679.3151 of the UCC and (ii) after five years from the date of filing the UCC
Financing Statements under Section 679.515 of the UCC and (b) the rights of certain buyers or holders of property constituting
collateral to take such property free of any security interest in favor of the Lessee as provided in Sections 679.320, 679.321,
679.323, 679.330 and

679.331 of the UCC).

 

(H)         We
have assumed for purposes of the opinion set forth below that each of the Lessee and the Sublessee is located (within the meaning
of Section 679.3071(10) of the UCC) in the State of Florida.

 

(I)         We
have not made any examination of, and express no opinion with respect to (and to the extent relevant have assumed the accuracy
and sufficiency of), (i) descriptions of, the legal or beneficial ownership of, or the title or condition of title to, the Aircraft
or any other collateral set forth in the Financing Agreements, (ii) except as expressly set forth below, the existence, creation,
validity, attachment or perfection of any security interest thereon, and (iii) the priority of any security interest thereon. We
call to your attention the fact that Section 552 of the Bankruptcy Code limits the extent to which property acquired by a debtor
after the commencement of a case under the Bankruptcy Code may be subject to a security interest arising from a security agreement
entered into by such debtor before the commencement of such case.

 

    	 	4	 

     

    

  

(J)         In
the case of any collateral (including, without limitation, any “account” or “general intangible” (as such
terms are defined in Chapter 679 of the UCC)) which itself is secured by other property, we express no opinion with respect to
the Lessee or any other Person’s rights in and to such other property.

 

(K)         We
express no opinion as to any security interest in any collateral excluded from, or not governed by, Chapter 679 of the UCC, or
in any “fixtures”, “cooperative interests”, “commercial tort claims”, “consumer goods”,
“timber to be cut”, “as-extracted collateral” or “farm products” (as such terms are defined
or used in the UCC). We call your attention to (and, to the extent that any opinion is expressed with respect to such matters below
or such matters are relevant to the opinion expressed below, our opinions are qualified by) the following:

 

(i)          the
effectiveness of any UCC financing statement filed in the Florida terminates five years after the date of filing (or at the end
of such longer period as may be applicable in certain cases under Section 679.515 of the UCC) unless a continuation statement is
filed within the period of six months prior to such termination in accordance with Section 679.515 of the UCC;

 

(ii)         Section
679.5071 of the UCC provides that if the relevant debtor so changes its name that a filed UCC financing statement becomes seriously
misleading, such UCC financing statement is not effective to perfect a security interest in collateral acquired by such debtor
more than four months after such change unless an appropriate amendment to the relevant UCC financing statement is filed before
the expiration of that period;

 

(iii)        if
the debtor changes its “location” as determined under Section 679.3071 of the UCC, or if a “new debtor”
becomes bound by the relevant security agreement under Section 679.2031(4) of the UCC, certain actions (within or outside of Florida)
may be required under Section 679.3161 of the UCC to continue the perfection of a security interest perfected at the time of the
change of the debtor’s location or of the new debtor becoming so bound; and, in addition, certain actions may be required
under Section 679.508 and other provisions of Chapter 679 of the UCC to perfect a security interest in collateral acquired by the
debtor after the time of the change of its location or by the new debtor after the time of the new debtor becoming bound;

 

(iv)        there
exist certain limitations resulting from the operation of Section 679.3151 of the UCC on the perfection of any security interest
in proceeds of collateral, such that further action (within or outside of Florida) may be necessary to maintain perfection of such
interests;

 

(v)         under
Section 547 of the Bankruptcy Code, a security interest that is deemed transferred within the relevant period set forth in Section
547(b)(4) of the Bankruptcy Code may be avoidable under certain circumstances;

    	 	5	 

     

    

 

(vi)        the
filing of UCC financing statements will not result in the perfection of a security interest in (without limitation) (x) items of
collateral that are subject to a certificate of title or registration statute or other statute which specifies a method of security
interest perfection different than the filing of UCC financing statements and (y) items of collateral (such as “deposit accounts”
(as defined in the UCC)) as to which perfection may be achieved only by “control” or “possession” (in the
manner specified in the UCC);

 

(vii)       a
security interest may not attach or become enforceable or be perfected as to contracts, licenses, permits, or other rights or benefits
which are not assignable under applicable law, or are not assignable by their terms, or which are assignable only with the consent
of government agencies or officers, except to the extent provided in Sections 680.303, 679.4061, 679.4071 or 679.4081 of the UCC,
as applicable;

 

(viii)      under
Section 678.3031 of the UCC, a “protected purchaser” (as defined in such Section 678.3031(1)) of a security, or of
an interest therein, may acquire its interest in such security free of any adverse claim thereto;

 

(ix)         we
express no opinion herein as to whether the Lessee, the Loan Trustee or any other Person may be a “holder in due course”
(as defined in the UCC) of any applicable negotiable instrument, or a holder to whom any applicable negotiable document of title
has been duly negotiated;

 

(x)          a
purchaser may obtain priority over or take free of a perfected security interest under Section 679.338 or Section 679.516(4) of
the UCC; and a security interest perfected by filing may be junior to a security interest that was perfected by an earlier effective
filing mis-indexed by the applicable UCC filing office;

 

(xi)         we
assume that none of the parties to the Financing Agreements is a “transmitting utility” (as such term is defined in
Chapter 679 of the UCC); and

 

(xii)        any
security interests in the collateral may be subject to the limitations set forth in Section 679.4041, 679.4051 and 679.4081 of
the UCC; and, in any event, any security interests in the assets of each of the Lessee and the Sublessee may be subject to the
economic effects of valid recoupments, offsets, counterclaims, and similar rights of account debtors or other contractual parties,
the terms of contracts between the Lessee, the Sublessee and such other parties, and any claims or defenses of such other parties
against the Lessee and the Sublessee arising under or extrinsic to such contracts.

 

(L)         The
exercise of rights and remedies under Chapter 679 of the UCC is subject to the limitations set forth in Part VI thereof.

 

    	 	6	 

     

    

  

Based upon the foregoing and
subject to the limitations, qualifications, exceptions and assumptions set forth herein, we are of the opinion that [each] [the]
UCC Financing Statement (i) is in appropriate form for filing with the Florida Secured Transaction Registry in the State of Florida,
and (ii) upon its proper filing (within the meaning of Section 679.516(1) of the UCC) with the Florida Secured Transaction Registry
in the State of Florida and the payment of all filing fees and other applicable charges with respect to such UCC Financing Statement,
is sufficient under Applicable Law to perfect the security interests of the Lessee and/or the Loan Trustee, in such portion of
the collateral described in such UCC Financing Statement to the extent that security interests in such collateral may be perfected
by filing financing statements in the State of Florida under Chapter 679 of the UCC.

 

This opinion
is limited to the matters expressly set forth herein, and no opinion is implied or may be inferred beyond the matters expressly
so stated. This opinion is given as of the date hereof, and we do not undertake any liability or responsibility to inform you of
any change in circumstances occurring, or additional information becoming available to us, after the date hereof that might alter
the opinions contained herein.

 

This opinion is furnished to you
solely for your benefit under the Participation Agreement in connection with the transactions described above and is not to be
used, circulated, quoted, relied upon or otherwise referred to for any other purpose without our prior written consent in each
instance (except that you may furnish a copy of this opinion for information purposes (but not reliance) to the extent required
by law or by any governmental agency with regulatory authority over the Lessee or the Loan Trustee), and this opinion may not be
relied upon by you for any other purpose or by any other Person in any manner or for any purpose without our prior consent.

 

	 	Very truly yours,

 

    	 	7	 

     

    

 

SCHEDULE I

 

ADDRESSEES

 

		-	Natixis, acting through its New York Branch, as Liquidity Provider and as Depositary

 

		-	Standard & Poor’s Rating Services

 

		-	Moody’s Investors Services, Inc.

 

		-	Wilmington Trust Company, as Pass Through Trustee under each of the Pass Through Trust Agreements

 

		-	Wilmington Trust Company, as Subordination Agent

 

		-	Wilmington Trust Company, as Loan Trustee

 

		-	Wilmington Trust Company, as Escrow Agent

 

		-	Wilmington Trust Company, in its individual capacity

 

		-	LATAM Airlines Group S.A.

 

		-	TAM Linhas Aéreas S.A.

 

		-	Citigroup Global Markets, Inc.

 

		-	Deutsche Bank Securities Inc.

 

		-	J.P. Morgan Securities LLC

 

		-	Natixis Securities Americas LLC

 

    	 	8	 

     

    

 

ANNEX A

 

UCC FINANCING STATEMENTS

 

[Attached]

 

    	 	9	 

     

    

 

EXHIBIT B to

PARTICIPATION AGREEMENT

 

FORM OF OPINION OF

SPECIAL COUNSEL FOR THE LOAN
TRUSTEE, THE PASS THROUGH 

TRUSTEES, THE SUBORDINATION AGENT AND WTC

 

[Attached.]

 

     

     

    

  

______, 2015

 

To Each of the Parties Listed 

on Schedule A Hereto

 

		Re:	LATAM Group S.A. - Financing of One [____] Model [_____] Aircraft Bearing Manufacturer’s Serial Number [         ]

 

Ladies and Gentlemen:

 

We have acted as counsel to Wilmington
Trust Company, a Delaware trust company (“WTC”), in connection with the Indenture and Security Agreement ([_______]),
dated as of____, 2015 (the “Indenture”), among WTC as Loan Trustee (the “Loan Trustee”), and [insert relevant
issuer] (the “Owner”). Pursuant to the Participation Agreement ([_______]), dated as of________, 2015 (the “Participation
Agreement”), among the Owner, LATAM Airlines Group S.A. and WTC, in its individual capacity as set forth therein, as Loan
Trustee, as Subordination Agent under the Intercreditor Agreement (as defined in the Participation Agreement) and as Pass Through
Trustee (as defined in the Participation Agreement), financing is being provided for one [________] Model [       ]
aircraft bearing manufacturer’s serial number [          ]. This opinion
is furnished pursuant to Section 3.01(h) of the Participation Agreement. Capitalized terms used herein and not otherwise defined
are used as defined in the Indenture, except that reference herein to any document shall mean such document as in effect on the
date hereof.

 

We have examined originals or copies of the following
documents:

 

		(a)	The Indenture and the initial Indenture Supplement;

 

		(b)	The Participation Agreement;

 

		(c)	The Chilean law aircraft mortgage ([MSN]) dated as of [●] granted by LATAM, as lessor, in favor of the Loan Trustee;

 

		(d)	[the
                                         first priority Brazilian law aircraft mortgage ([MSN]) dated as of [●] granted
                                         by LATAM in favor of the Loan Trustee];1

 

		(e)	[the
                                         sublease assignment in relation to the Sublease dated as of [●], among LATAM, the
                                         Loan Trustee and Sublessee];2

 

 

1
Include if the Aircraft is subleased to Sublessee at delivery.

2
Include if the Aircraft is subleased to Sublessee at delivery.

 

     

     

    

  

To Each of the Parties Listed

on Schedule A Hereto

_____, 2015

Page 2

 

		(f)	the
                                         subordination agreement in relation to the Sublease dated [●], made by the Sublessee
                                         in favor of the Loan Trustee (the "Subordination Agreement");3

 

		(g)	[the
                                         Purchase Agreement Assignment dated as of [●] among The Boeing Company, LATAM,
                                         the Owner and the Loan Trustee];4

 

		(h)	[the
                                         Airframe Warranties Agreement dated as of [●] among Airbus S.A.S, the Owner, LATAM
                                         and the Loan Trustee];5

 

		(i)	[the
                                         Airframe Warranties Agreement dated as of [●] among Airbus S.A.S., the Owner, LATAM,
                                         the Initial Sublessee and the Loan Trustee];6

 

		(j)	[the
                                         Engine Warranties Agreement dated as of [●] among the Engine Manufacturer, LATAM,
                                         the Owner and the Loan Trustee];7

 

		(k)	[the Engine Warranties Agreement dated as of [●] among the Owner, LATAM and the Loan Trustee];8

 

		(l)	[the
                                         Engine Warranties Agreement dated as of [●] among the Owner, LATAM, the Initial
                                         Sublessee and the Loan Trustee]9 (the
                                         documents referred to in paragraphs (a) and ([●]) above being collectively referred
                                         to as the “Loan Trustee Documents”); and

 

		(m)	The Equipment Notes being issued today and authenticated by the Loan Trustee (the “Equipment Notes”).

 

We have also examined originals
or copies of such other documents and such corporate records, certificates and other statements of governmental officials and corporate
officers and other representatives of the corporations or entities referred to herein as we have deemed necessary or appropriate
for the purposes of this opinion. Moreover, as to certain facts material to the opinions expressed herein, we have relied upon
representations and warranties contained in the documents referred to in this paragraph.

 

 

3
Include if the Aircraft is subleased to Sublessee at delivery.

4
Include for Boeing aircraft.

5
Include for Airbus Chilean aircraft.

6
Include for Airbus Brazilian aircraft.

7
Include for Aircraft using Rolls Royce engines.

8
Include for Chilean Aircraft using CFM engines.

9
Include for Brazilian aircraft using CFM engines.

 

     

     

    

  

To Each of the Parties Listed

on Schedule A Hereto

_____, 2015

Page 3

 

Based upon the foregoing and upon
an examination of such questions of law as we have considered necessary or appropriate, and subject to the assumptions, exceptions
and qualifications set forth below, we advise you that, in our opinion:

 

1.          WTC
has been duly incorporated and is validly existing in good standing as a trust company under the laws of the State of Delaware,
is a “citizen of the United States” within the meaning of Section 40102(a)(15) of Title 49 of the United States Code,
as amended, and has full power, authority and legal right to execute, deliver and perform its obligations under the Loan Trustee
Documents and to authenticate the Equipment Notes.

 

2.          The
Loan Trustee, the Subordination Agent, the Pass Through Trustee or WTC, as the case may be, has duly authorized, executed and delivered
each Loan Trustee Document to which it is a party, and each such document constitutes a legal, valid and binding obligation of
the Loan Trustee, the Subordination Agent, the Pass Through Trustee or WTC, as the case may be, enforceable against the Loan Trustee,
the Subordination Agent, the Pass Through Trustee or WTC, as the case may be, in accordance with its terms.

 

3.          The
execution, delivery and performance by the Loan Trustee, Subordination Agent, Pass Through Trustee or WTC, as the case may be,
of the Loan Trustee Documents to which it is a party, the authentication by the Loan Trustee of the Equipment Notes and the consummation
by the Loan Trustee, the Subordination Agent, the Pass Through Trustee or WTC, as the case may be, of any of the transactions contemplated
thereby are not in violation of the charter or by-laws of WTC, of any law, governmental rule or regulation of the State of Delaware
or the United States governing the trust powers of WTC or, to our knowledge, any indenture, mortgage, bank credit agreement, note
or bond purchase agreement, long-term lease, license or other agreement or instrument to which WTC is a party or by which it is
bound or, to our knowledge, any judgment or order applicable to WTC.

 

4.          None
of the execution and delivery by the Loan Trustee, the Subordination Agent, the Pass Through Trustee or WTC, as the case may be,
of the Loan Trustee Documents to which it is a party, the authentication of the Equipment Notes or the consummation of any of the
transactions by the Loan Trustee, the Subordination Agent, the Pass Through Trustee or WTC, as the case may be, contemplated thereby,
requires the consent or approval of, the giving of notice to, the registration with or the taking of any other action in respect
of any governmental authority or agency of the State of Delaware or the United States governing the trust powers of WTC or under
any Delaware law.

 

5.          No
taxes, fees or other charges (other than taxes payable by WTC on or measured by any compensation received by WTC for its services
as Loan Trustee, Subordination Agent or Pass Through Trustee) are required to be paid by the Subordination Agent, the Pass Through
Trustee or the Loan Trustee or the trust created by the Indenture under the laws of the State of Delaware, or any political subdivision
thereof, in connection with the execution, delivery or performance of the Loan Trustee Documents to which the Loan Trustee, the
Subordination Agent or the Pass Through Trustee is party and the Equipment Notes, which taxes, fees or other charges would not
be required to be paid if WTC were not a Delaware trust company and did not perform its obligations as Loan Trustee under the Indenture
in the State of Delaware.

 

     

     

    

  

To Each of the Parties Listed

on Schedule A Hereto

_____, 2015

Page 4

  

6.          The
Equipment Notes have been duly and validly authenticated by the Loan Trustee in accordance with the Indenture.

 

7.          To
our knowledge, there are no proceedings pending or threatened against or affecting the Loan Trustee, the Subordination Agent, the
Pass Through Trustee or WTC in any court or before any governmental authority, agency, arbitration board or tribunal which, if
adversely determined, individually or in the aggregate, would materially and adversely affect the property included in the Collateral
or the right, power and authority of the Loan Trustee, the Subordination Agent, the Pass Through Trustee or WTC, as the case may
be, to enter into or perform its obligations under the Loan Trustee Documents to which it is party.

 

The foregoing opinions are subject to the
following assumptions, exceptions and qualifications:

 

A.           We
are admitted to practice law in the State of Delaware and we do not hold ourselves out as being experts on the law of any other
jurisdiction. The foregoing opinions are limited to the laws of the State of Delaware (and its political subdivisions to the extent
set forth in paragraph 5 above and the federal laws of the United States of America governing the trust powers of WTC, except that
we express no opinion with respect to (i) federal securities laws, including the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, the Investment Company Act of 1940, as amended, and the Indenture Act of 1939, as amended, (ii)
Part A of Subtitle VII of Title 49 of the United States Code, as amended (except with respect to the opinion set forth in paragraph
1 above concerning the citizenship of WTC), (iii) the Federal Communications Act of 1934, as amended, (iv) state securities or
blue sky laws, or (v) laws, rules and regulations applicable to the particular nature of the equipment acquired by the Owner. Insofar
as the foregoing opinions relate to the validity and enforceability of the Loan Trustee Documents expressed to be governed by the
laws of the State of New York, we have assumed that each such document is legal, valid, binding and enforceable in accordance with
its terms under such laws (as to which we express no opinion).

 

B.           The
foregoing opinions regarding enforceability are subject to (i) applicable bankruptcy, insolvency, moratorium, reorganization, receivership,
fraudulent conveyance and similar laws relating to or affecting the enforcement of the rights and remedies of creditors generally,
and (ii) principles of equity (regardless of whether considered and applied in a proceeding in equity or at law).

 

C.           We
have assumed that each of the parties to the Loan Trustee Documents and the Equipment Notes (except the Loan Trustee, the Subordination
Agent, the Pass Through Trustee or WTC, as the case may be) has full power, authority and legal right to execute, deliver and perform
each such document and that each such document has been duly authorized, executed and delivered by each such party.

 

     

     

    

  

To Each of the Parties Listed

on Schedule A Hereto

____, 2015

Page 5

 

D.           We
have assumed that all signatures (other than signatures of officers of WTC) on documents examined by us are genuine, that all documents
submitted to us as originals are authentic and that all documents submitted to us as copies conform with the originals, which facts
we have not independently verified.

 

E.           We
have assumed that the Participation Agreement and the transactions contemplated thereby are not within the prohibitions of Section
406 of the Employee Retirement Income Security Act of 1974, as amended.

 

F.           No
opinion is expressed as to the creation, attachment, perfection or priority of any mortgage or security interests or as to the
nature or validity of title to any part of the property included in the Collateral.

 

G.           The
opinion set forth in paragraph 1 above concerning the citizenship of WTC is based upon an affidavit of WTC made by one of its Vice
Presidents, the facts set forth in which we have not independently verified.

 

H.           In
basing the opinions set forth herein on “our knowledge,” the words “our knowledge” signify that no information
has come to the attention of the attorneys in the firm who are directly involved in the representation of WTC in this transaction
that would give us actual knowledge that any such opinions are not accurate. Except as otherwise stated herein, we have undertaken
no independent investigation or verification of such matters.

 

This opinion may be relied upon
by you in connection with the matters set forth herein. This opinion may also be relied upon by any transferee of a Noteholder,
subject to the understanding that the opinions expressed herein are rendered as of the date hereof and only with respect to the
laws, rules and regulations in effect as of such date. Otherwise, without our prior written consent, this opinion may not be relied
upon by any other person or entity for any purpose.

 

	 	Very truly yours,

 

LCL/pab

 

     

     

    

 

SCHEDULE A

 

Loan Trustee, Subordination Agent and

and Pass Through Trustee

Wilmington Trust Company

 

Paying Agent

Wilmington Trust Company

 

Owner

[insert relevant issuer]

 

Escrow Agent

Wilmington Trust, National Association

 

Liquidity Provider and Depositary Natixis

 

Rating Agencies

Standard & Poor’s Ratings Services, a Standard &
Poor’s Financial Services LLC business Moody’s Investors Service, Inc.

 

Initial Purchasers

Citigroup Global Markets Inc. Deutsche Bank Securities Inc.

J.P. Morgan Securities LLC

Natixis Securities Americas LLC

 

     

     

    

 

EXHIBIT C-1 to

PARTICIPATION AGREEMENT

 

FORM OF OPINION OF SPECIAL CHILEAN COUNSEL

 

[Attached.]

 

     

     

    

  

To            The parties listed in Appendix A

 

Santiago, [_], 2015

 

LATAM Airlines Group S.A. – Series 2015-1
Pass Through Trust Certificates, Delivery of Aircraft MSN [ ].

 

Ladies and Gentlemen:

 

We have
acted as special Chilean counsel to [2015/2016 Wide/Narrow Body Owner], an exempted company with limited liability incorporated
under the laws of the Cayman Islands (the “Owner”), [Other Owners] (collectively the “Owners”),
and LATAM Airlines Group S.A., a corporation (sociedad anónima) organized under the laws of the Republic of Chile
(the “Company”), in connection with the Note Purchase Agreement dated as of [_], 2015, (the “NPA”)
among, inter alios, the Owner, the Company, the [other Owners][2015/2016 Wide/Narrow Body Owner], Wilmington Trust Company,
as Pass Through Trustee under each of the Pass Through Trust Agreements, Loan Trustee, Securities Intermediary, Subordination Agent
and Paying Agent, and Wilmington Trust Company, National Association, as Escrow Agent. This opinion is furnished to you pursuant
to paragraph 3.01(g) of the Participation Agreement.

 

In connection
therewith, we have examined a copy of the NPA and each of the documents set forth on Appendix B, which are hereinafter each referred
to as the “Relevant Operative Document” and collectively as the “Relevant Operative Documents”
and the Indenture, the Chilean Mortgage, Option Agreements and Share Pledge and Security Agreementsare referred to herein as
the “Security Documents”.

 

     

     

    

  

In addition
we have examined such corporate records, certificates and other documents, such governmental approvals and filings, and such questions
of law, as we have considered necessary or appropriate for the purposes of this opinion.

 

In our examination,
we have assumed (without investigation on our part) the genuineness of all signatures, the authenticity of all documents submitted
to us as originals and the conformity with authentic original documents of all documents submitted to us as copies. When relevant
facts were not independently established, we have relied upon statements of governmental officials and upon representations made
in or pursuant to the Relevant Operative Documents.

 

In giving the opinions below, we have assumed (without
investigation on our part):

 

(i)
          the due authorization, execution and delivery of the Relevant
Operative Documents by each of the parties thereto (other than the Company);

 

(ii)         that
each of such parties (other than the Company) has the power and authority to execute, deliver and perform the Relevant Operative
Documents and has obtained or made all necessary consents, approvals, filings and registrations in connection therewith (except
any required by the Company, the Owner or any other party with respect to the Relevant Operative Documents under the laws to which
the opinion set forth below is limited); and

 

(iii)        that
the Relevant Operative Documents (other than the Chilean Mortgage) constitute, under the law expressly stated therein to govern
the same, the legal, valid and binding obligation of the party or parties thereto and do not contravene such law.

 

In addition,
our opinions in paragraph (4) below as to the enforceability in Chile of the Relevant Operative Documents are subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors' rights.

 

Based upon
and subject to the foregoing and subject also to the comments and qualifications set forth below, and having regard to legal considerations
we deem relevant, we advise you that in our opinion, as a matter of Chilean law:

 

		(1)	The Company is a corporation duly organized and validly
existing under the laws of Chile. The Company holds an air carrier operating certificate issued by the civil Aeronautical Directorate
in Chile (Dirección General de Aeronáutica Civil). The Company has all requisite corporate power and authority
to own and operate its properties, to carry on its business as now conducted and to enter into and perform its obligations under
the Relevant Operative Documents to which it is a party.

 

     

     

    

  

		(2)	The Company has full power and authority to enter into the Relevant Operative Documents to which
it is a party, and to incur and perform the obligations provided for therein. Neither the execution, delivery nor performance by
the Company of the Relevant Operative Documents to which it is a party requires any stockholder approval or the approval or consent
of any trustee or holders of any Indebtedness or other obligations of the Company, except such as have been duly obtained and remain
in full force and effect.

 

		(3)	The execution, delivery and performance by the Company of the Relevant Operative Documents to which
it is a party (i) will not violate any treaty, law, statute, regulation, or decree in or of Chile, (ii) will not violate or conflict
with the estatutos of the Company, (iii) will not conflict with, or result in any breach of, or constitute a default under,
to the best of our knowledge, any subsisting debenture or other deed, mortgage, contract or other undertaking or instrument to
which any of them is a party or which is binding upon it or on any of its assets, or (iv) will not result in the creation or imposition
under Chilean law of any Lien, security interest, charge or encumbrance of any nature upon any property of the Company.

 

		(4)	The making and performance by the Company of the Relevant Operative Documents to which it is a
party, has been duly authorized by all requisite action and the Relevant Operative Documents to which the Company is a party have
been duly executed and delivered by the Company, and constitute the valid and legally binding obligation of each of the Company,
enforceable against the Company in accordance with its terms.

 

		(5)	All authorizations, approvals and consents from, giving of notice, and registrations, filings and
recordations with, governmental authorities in Chile which are necessary for the execution, delivery and performance the Company
of the Relevant Operative Documents to which it is a party, the incurrence by the Company of its obligations thereunder and the
operation of its business as it is currently conducted, have been obtained or made and are in full force and effect, other than
the official translation mentioned in paragraph (7) hereunder.

 

		(6)	It is not necessary or desirable to ensure (i) the priority, validity and enforceability of all
the obligations of the Owners and the Company under the Operative Documents to which they are a party or (ii) the admissibility
in evidence in a court in Chile of the Operative Documents, that they be filed, registered, recorded or notarized in any public
office or elsewhere or that any other instrument relating thereto be signed, delivered, filed, registered or recorded, that any
tax or duty be paid or that any other action whatsoever be taken, other than (A) the notarization and registration of the Lease
Agreement and the Chilean Mortgage with the Chilean Civil Aviation Authority, and (B) the official translation mentioned in paragraph
8 hereunder.

 

		(7)	No income, stamp or other taxes or levies, imposts, deductions, charges, compulsory loans or withholdings
whatsoever are or will be, under applicable law in Chile currently in effect, imposed, assessed, levied or collected upon or with
respect to any payment (including, without limitation, payment of Rent) under the Relevant Operative Documents, by Chile or any
political subdivision or taxing authority thereof or therein on or in respect of the Relevant Operative Documents.

     

     

    

  

		(8)	The Relevant Operative Documents are in proper legal form for the effectiveness and enforcement
thereof in the courts of Chile, except that an official translation to Spanish of such Relevant Operative Document would be required
for purposes of enforcement proceedings in Chile.

 

		(9)	The choice of the law of the State of New York to govern the Relevant Operative Documents (other
than the Chilean Mortgage), is, under the laws of Chile, a valid choice of governing law and will be honored in a suit on such
Relevant Operative Document brought in the courts of Chile.

 

		(10)	The Company is subject to civil and commercial law with respect to its obligations under the Relevant
Operative Documents, and the execution, delivery and performance by the Company constitute commercial acts. Neither the Company
nor any of its properties or revenues has in Chile any immunity from jurisdiction or process of any court or from any legal process
in Chile (whether through service, notice, attachment prior to judgment, attachment in aid of execution, execution, set-off or
otherwise).

 

		(11)	Pursuant to Chilean law the Owner will be considered as a separate entity from the Company and,
consequently, its assets and liabilities will not be consolidated with those of Company either before or after any reorganization
or liquidation or other like bankruptcy proceeding initiated against Company.

 

		(12)	(a) The submission by the Company to the non-exclusive jurisdiction of the Supreme Court of the
State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and
any appellate court from any thereof (herein called the "Foreign Jurisdiction") with respect to matters arising
under or in connection with the Relevant Operative Documents to which the Company is a party, as set forth therein is valid and
effective under the laws of Chile.

 

(b) A final judgment against
the Company for the payment of money obtained in any such court pursuant to personal service of process on an agent of the Company
in the manner specified in the relevant Relevant Operative Document providing for such service of process would be recognized,
conclusive and enforceable in the courts of Chile without reconsideration on the merits, so long as the following conditions were
met:

 

(i)          If
there were a treaty in force between Chile and the Foreign Jurisdiction with respect to the enforcement of foreign judgments, the
provisions of such treaty, if relevant, would be applied. At the date hereof, there is no such treaty in force between Chile and
the Foreign Jurisdiction.

 

(ii)         If
there were no such treaty, the judgment would be enforced if there were reciprocity as to the enforcement of judgments (i.e.,
a court sitting in the Foreign Jurisdiction would enforce a comparable judgment of a Chilean court in comparable circumstances).

 

     

     

    

  

(iii)        If
it could be proven that there were no such reciprocity, the judgment could not be enforced.

 

(iv)        If
reciprocity does not exist, the judgment would be enforced if it were not contrary to public policy of Chile and had not been rendered
by default within the meaning of Chilean law.

 

We are of the opinion that
the judgment would not be considered to be rendered by default if personal service of process were made on the Company's process
agent in the Foreign Jurisdiction, assuming such manner of service to be valid under the laws applicable in such relevant Foreign
Jurisdiction, except that it may be a defense to the enforcement of such a judgment in Chile if the Company would prove that because
of circumstances beyond its control it was prevented from asserting defenses available to it before the court rendering such judgment.
In all events, the judgment must comply with international standards. We are of the opinion that such a judgment would comply with
international standards if the following conditions were met:

 

(i)          The
court in the Foreign Jurisdiction rendering the judgment had jurisdiction, under the law of the Foreign Jurisdiction, over the
Company and the subject matter of the suit;

 

(ii)         The
judgment is enforceable in the Foreign Jurisdiction;

 

(iii)        The
Company (or its process agent designated pursuant to the Relevant Operative Documents, as applicable) received due notice of the
suit (assuming such manner of service to be valid under the law of the Foreign Jurisdiction) and was afforded an opportunity to
defend in such suit;

 

(iv)        The
document in which the judgment is set forth has been duly legalized by the Chilean Consul in the Foreign Jurisdiction; and

 

(v)         The
text of the judgment has been duly translated into Spanish by a sworn public translator in Chile.

 

Assuming such a foreign final
judgment complies with the standards set forth in this paragraph (10) (b), and in the absence of any condition referred to above
which would render a foreign judgment unenforceable, such judgment would be enforceable in Chile by proceedings for the enforcement
of a foreign final judgment under the laws of Chile.

 

With respect to principles
of Chilean public policy referred to above, assuming (as we understand to be the case) that payments of compensation or indemnities
and reimbursement of costs and expenses represent usual conditions prevailing in such markets, we have no reason to believe that
any of the transactions contemplated by the Relevant Operative Documents are contrary to the public policy of Chile. Nevertheless,
we are of the opinion that, generally, any provisions purporting to authorize conclusive determinations by any person whether for
interest, indemnities, costs or otherwise may not be enforceable if they are based upon a determination which is so arbitrary and
unreasonable as to be contrary to basic and fundamental principles of Chilean law or public policy. Disclaimers of liability will
only be enforceable if there is no gross negligence or willful misconduct on the part of the party making such disclaimer.

 

     

     

    

  

(c) We express no opinion as
to the enforceability in Chile of a foreign judgment against the Company obtained in any court other than the courts of the Foreign
Jurisdiction.

 

		(13)	(a) The Owner and the Loan Trustee, as assignee of the
Owner's rights in the Lease pursuant to the Trust Indenture (as defined in the Lease), are each entitled to bring a legal action
in the courts of Chile against Company in respect of the Lease as supplemented by the Lease Supplement, and it is not a condition
to such ability to bring a legal action in the courts of Chile, that such Person has complied with any requirements in Chile necessary
to enable it to do or carry on business in Chile. The Subordination Agent, is entitled to bring a legal action in the courts of
Chile against the Company in respect of the Chilean Mortgage, and it is not a condition to such ability to bring a legal action
in the courts of Chile, that such Person has complied with any requirements in Chile necessary to enable it to do or carry on
business in Chile.

 

(b) None of the Certificateholders,
the Pass Through Trustee (as Pass Through Trustee under each of the Pass Through Trust Agreements), the Subordination Agent, the
Owner[, the Sublessee] or the Loan Trustee is or will not be deemed resident, carrying on business or subject to taxation in Chile
by reason only of the execution or delivery, or enforcement in Chile, of the Relevant Operative Document to which it is a party.

 

		(14)	The obligations of each of the Company under the Relevant Operative Documents will be direct and
unconditional general obligations of the Company, and will rank in right of payment at least pari passu with all unsecured
and unsubordinated debt of the Company, whether now or hereafter outstanding, subject to any bankruptcy, insolvency, reorganization
or other similar laws affecting the rights of creditors generally and to obligations preferred by Chilean law and not by contract.

 

The obligations of each of
the Company under the Relevant Operative Documents, are not subject to any law, rule or regulation of Chile or any agency or instrumentality
thereof (including, without limitation, the Central Bank of Chile) with regard to any preference for payment of obligations or
any rescheduling of the payment of any debt or other obligations, except for applicable bankruptcy, insolvency or other similar
laws affecting creditors’ rights generally.

 

		(15)	The Chilean Mortgage creates under the laws of Chile a valid and legal security interest of the
nature purported to be created thereunder. Each of the Relevant Operative Documents to which each of the Company and/or Owner is
a party and the Chilean Mortgage are in a proper form for their enforcement in the courts of Chile, subject to the notarization
of the signatures of the Chilean Mortgage and the registration of the Chilean Mortgage with the DGAC, and the translation requirement
mentioned in Paragraph (7) hereunder.

 

     

     

    

  

		(16)	In order to foreclose the Chilean Mortgage an executive title (título ejecutivo)
is required. A final judgment rendered by a Relevant Foreign Jurisdiction is considered to be a título ejecutivo,
provided the proceedings under the Supreme Court of Chile referred to in the last subparagraph of paragraph (10) above, have been
complied with.

 

		(17)	Upon termination of the Lease Agreement (whether on expiry or otherwise) as contemplated in the
Lease Agreement, the Owner would be entitled, and on the security constituted by the Security Documents having been enforced abroad
and the Owner’s rights under the Lease Agreement under applicable law having been effectively assigned to the Loan Trustee,
the Loan Trustee would be entitled to repossess the Aircraft through the appropriate court procedures;

 

		(18)	Following the termination of the Lease Agreement as per section 15 above, the relevant authorities
granted by means of the Lessee Deregistration Power of Attorney and the Owner Deregistration Power of Attorney may be exercised
by the relevant attorneys appointed therein, to:

 

(i) 
         deregister the Aircraft from the DGAC’s Aircraft Registry, acting
on behalf of the Lessee; and

 

		(ii)	additionally, export or re-export the Aircraft from Chile.

 

		(19)	The Lessee Deregistration Power of Attorney is fully effective to authorize the attorneys named
therein to act on behalf of the Lessee in accordance with the terms set out therein, and a duly appointed appointee of the attorneys
named therein may (to the extent permitted by its appointment) serve as agent for the attorneys and perform any and all acts authorized
therein as if originally authorized therein; the Lessee Deregistration Power of Attorney cannot be revoked by the Company.

 

		(20)	The Owner Deregistration Power of Attorney is fully effective to authorize the attorneys named
therein to act on behalf of the Owner in accordance with the terms set out therein, and a duly appointed appointee of the attorneys
named therein may (to the extent permitted by its appointment) serve as agent for the attorneys and perform any and all acts authorized
therein as if originally authorized therein; the Owner Deregistration Power of Attorney cannot be revoked by the Owner

 

		(21)	Under Chilean law, the Lease Agreement would not be construed as creating ownership rights in the
Aircraft in favour of the Company and there is no provision of Chilean law which would permit a creditor, or a representative of
creditors, of the Company to obtain a security interest of any nature in the Aircraft as security for any debt or obligation of
the Company.

 

     

     

    

  

		(22)	The ownership interest of the Owner and the security interests of the Loan Trustee under the Chilean
Mortgage, the Security Documents and the other Relevant Operative Documents and all rights thereunder will be recognized, considered
binding, and will be enforceable in Chile. Accordingly, and subject to the above, the Owner and the Loan Trustee will be able to
recover possession of the Aircraft through appropriate court action in Chile, in accordance with the terms of the Relevant Operative
Documents when it is situated in Chile, if they are so entitled to possession under the Relevant Operative Documents.

 

		(23)	[We
                                         hereby confirm that the Chilean Mortgage granted by the Owner in favour of the Loan Trustee
                                         on behalf of the Secured Parties, has been duly registered with the Chilean Civil Aviation
                                         Authority. As a consequence of such registration, the Chilean Mortgage has created a
                                         first priority security interest over the Aircraft in favour of the Secured Parties,
                                         enforceable against the Company and any third parties. We attach at Appendix C hereto
                                         copies of the certificates evidencing registration of the Chilean Mortgage with the Chilean
                                         Civil Aviation Authority. No further action in Chile, including any filing or recording
                                         of any document, is necessary or permissible to establish and perfect the Owner's title
                                         to and interest in, and the first priority security interest of the Loan Trustee and
                                         the Secured Parties over, the Aircraft and the other collateral referred to in the Chilean
                                         Mortgage, as against the Owner, the Company[, the Sublessee] or any third parties (including,
                                         without limitation, other creditors of trustees, custodians and other representatives
                                         or similar officials under any bankruptcy or liquidation law or regulations).]1

 

This opinion
is given for the benefit of the parties listed in Appendix A and their respective successors, permitted assigns, permitted transferees
and professional advisors and may not be relied upon by anyone other than those parties without our prior written consent.

 

This opinion
is limited to matters of the laws of Chile. We express no opinion with respect to the law of any other jurisdiction.

 

	 	Very truly yours,

 

Marcelo Armas M., Partner

Philippi, Prietocarrizosa & Uría

 

 

1 To be delivered post
closing, possibly in a separate opinion letter.

 

     

     

    

 

Appendix A

 

Standard and Poor’s Ratings Services

 

Moody’s Investors Service

 

Wilmington Trust Company, in its individual capacity and as
Mortgagee, Securities Intermediary, Subordination Agent, Paying Agent and Pass Through Trustee

 

Wilmington Trust Company, National Association, as Escrow Agent

 

Citigroup Global Markets Inc.

 

Deutsche Bank Securities Inc.

 

J.P. Morgan Securities LLC

 

Natixis Securities Americas LLC

 

Natixis, acting through its New York Branch, as Liquidity Provider
and Depositary LATAM Airlines Group S.A.

 

     

     

    

  

Appendix B

 

		(i)	the lease agreement dated as of [●], 2015 between the Owner, as lessor, and the Company,
as lessee (the "Lease");

 

		(ii)	the lease supplement in relation to the Lease dated [●], 2015 made by the Company, as lessee
(the "Lease Supplement");

 

		(iii)	the lease assignment dated as of [●], 2015 between the Owner, the Company and the Loan Trustee
(the “Lease Assignment”);

 

		(iv)	the Chilean Aircraft Mortgage dated as of [●], 2015 between the Owner, as grantor, and the
Subordination Agent, as secured party (the "Chilean Mortgage")];

 

		(v)	[the sublease agreement dated as of [●], 2015 between the Company, as sublessor, and TAM
Linhas Aereas S.A., as sublessee (the "Sublessee") (the "Sublease");

 

		(vi)	the sublease assignment dated as of [●], 2015 between the Company, as sublessor, the Sublessee
and the Loan Trustee (the “Sublease Assignment”);

 

		(vii)	the sublease supplement in relation to the Sublease dated [●], 2015 made by the Sublessee,
as lessee (the "Sublease Supplement");]

 

		(viii)	a deregistration power of attorney from the Company dated [_] (the “Lessee Deregistration
Power of Attorney”);

 

		(ix)	each of the two Share Pledge and Security Agreements, each dated as of the date hereof, between
the Company, as pledgor, and the Subordination Agent, as pledgee (each, a “Share Pledge and Security Agreement”
and, collectively, the Share Pledge and Security Agreements");

 

		(x)	each of the two Put Option Agreements, each dated as of the date hereof, between the Company, as
seller, and [●], as buyer (each, an “Option Agreement” and, collectively, the "Option Agreements");

 

		(xi)	a deregistration power of attorney from the Owner dated [_] (the “Owner Deregistration
Power of Attorney” and together with the Lessee Deregistration Power of Attorney, each a “Deregistration Power
of Attorney”);

 

		(xii)	an Indenture and Security Agreement (MSN _) dated as of [_] between the Owner and the Indenture
Trustee (the “Indenture”);

 

		(xiii)	a Participation Agreement (MSN _) dated as of [_] between the Owner, the Company, Mortgagee, Subordination
Agent, Pass Through Trustee and Wilmington Trust Company (the “Participation Agreement”);

 

     

     

    

  

		(xiv)	a Pass Through Trust Agreement dated as of [ ] between the Company and the Pass Through Trustee
(the “Pass Through Trust Agreement”);

 

		(xv)	the Equipment Notes;

 

		(xvi)	the Certificates;

 

		(xvii)	the Insurance Assignment dated as of [●] between the Company, as assignor and the Loan Trustee,
as assignee (the “Insurance Assignment”);

 

		(xviii)	Subordination Acknowledgment dated as of [●] between the Company, Sublessee, Owner and the
Loan Trustee (the “Subordination Acknowledgment”);

 

		(xix)	Purchase Agreement Assignment dated as of [●] between the Company[, Loan Trustee] and Owner
(the Purchase Agreement Assignment”);

 

		(xx)	[Airframe Warranties Agreement dated as of [●] between the Company[, TAM], Owner, Airbus
and the Loan Trustee (the “AWA”);]

 

		(xxi)	Engine Warranties Agreement dated as of [●] between the Company, [TAM], Owner, [CFM/Rolls
Royce], and the Loan Trustee (the “EWA”).

 

     

     

    

  

Appendix C

 

     

     

    

 

EXHIBIT C-2 to

PARTICIPATION AGREEMENT

 

[RESERVED].

 

[Attached.]

 

     

     

    

 

EXHIBIT C-3 to

PARTICIPATION AGREEMENT

 

[RESERVED].

 

[Attached.]

 

     

     

    

 

EXHIBIT D to

PARTICIPATION AGREEMENT

 

FORM OF OPINION OF CAYMAN ISLANDS COUNSEL

 

     

     

    

  

Our ref: SBL/703340-000001/36437291v5

 

To the Addressees named in the
First Schedule

 

[   ] May 2015

 

Dear Sirs

 

Parina Leasing Limited (the
"Company")

 

We have acted as counsel as to
Cayman Islands law to the Company in connection with its issue of certain equipment notes (the "Equipment Notes")
pursuant to the terms of, amongst other documents, a note purchase agreement dated [ ] 2015 between the Company, Cuclillo Leasing
Limited, Rayador Leasing Limited, Canastero Leasing Limited, LATAM Airlines Group S.A. ("LATAM"), Wilmington Trust
Company as Pass Through Trustee under the Pass Through Trust Agreements, Subordination Agent and Paying Agent, Wilmington Trust,
National Association as Escrow Agent and MaplesFS Limited ("MaplesFS") as Put & Call Trustee (the "Note
Purchase Agreement") and entry by the Company into the Transaction Documents (as defined below).

 

Capitalised terms used herein which are not otherwise
defined shall bear the meanings given to them in the Note Purchase Agreement, whether directly or by reference to another document.

 

		1	Documents Reviewed

 

We have reviewed originals, copies,
drafts or conformed copies of the following documents:

 

		1.1	The certificate of incorporation and memorandum and articles of association of the Company as adopted
on 15 April 2015 and amended by special resolution dated 14 May 2015 (the "Memorandum and Articles").

 

		1.2	The minutes (the "Minutes") of the meeting of the board of directors of the Company
held on 14 May 2015 (the "Meeting") and the corporate records of the Company maintained at its registered office
in the Cayman Islands.

 

		1.3	The power of attorney dated 14 May 2015 issued by the Company in favour of Andres del Valle, Pilar
Duarte, Cristian Toro, Diego Valenzuela and Elvira Vial, all of LATAM Airlines Group S.A. (the "Company Power of Attorney").

 

		1.4	The administration agreement dated [29] May 2015 between the Company, LATAM, MaplesFS and the Loan
Trustee (the "Administration Agreement").

 

     

     

    

  

		1.5	The declaration of trust dated [29] May 2015 entered into by MaplesFS (the "Declaration
of Trust").

 

		1.6	The director's services agreement dated [29] May 2015 entered into by MaplesFS, the Company and
the Loan Trustee (the "Director's Services Agreement").

 

		1.7	A certificate of good standing issued by the Registrar of Companies dated [ ] 2015 (the "Certificate
of Good Standing").

 

		1.8	A certificate from an authorised signatory of MaplesFS, a copy of which is attached to this opinion
letter (the "Trustee Certificate").

 

		1.9	A certificate from a director of the Company, a copy of which is attached to this opinion letter
(the "Director's Certificate").

 

The documents referred to in
paragraphs 1 to 15 of the Second Schedule hereto are collectively referred to as the "Transaction Documents".

 

The documents referred to in
paragraphs 1.4 to 1.6 above are collectively referred to as the "Cayman Documents"

 

		2	Assumptions

 

The following
opinions are given only as to, and based on, circumstances and matters of fact existing and known to us on the date of this opinion
letter. These opinions only relate to the laws of the Cayman Islands which are in force on the date of this opinion letter. In
giving the following opinions, we have relied (without further verification) upon the completeness and accuracy of the Director's
Certificate, the Trustee Certificate and the Certificate of Good Standing. We have also relied upon the following assumptions,
which we have not independently verified:

 

		2.1	The Transaction Documents and the Equipment Notes have been or will be authorised and duly executed,
unconditionally delivered and, if applicable, authenticated by or on behalf of all relevant parties in accordance with all relevant
laws (other than the laws of the Cayman Islands).

 

		2.2	The Transaction Documents and the Equipment Notes are, or will be, legal, valid, binding and enforceable
against all relevant parties in accordance with their terms under the laws of the State of New York (the "Relevant Law")
and all other relevant laws (other than, with respect to the Company, the laws of the Cayman Islands).

 

		2.3	The choice of the Relevant Law as the governing law of the Transaction Documents and the Equipment
Notes has been made in good faith and would be regarded as a valid and binding selection which will be upheld by the courts of
the State of New York (the "Relevant Jurisdiction") and any other relevant jurisdiction (other than the Cayman
Islands) as a matter of the Relevant Law (as the case may be) and all other relevant laws (other than the laws of the Cayman Islands).

 

		2.4	Where a Transaction Document has been provided to us in draft or undated form, it will be duly
executed, dated and unconditionally delivered by all parties thereto in materially the same form as the last version provided to
us and, where we have been provided with successive drafts of a Transaction Document marked to show changes to a previous draft,
all such changes have been accurately marked.

 

    	 	2

     

    

  

		2.5	The choice of Cayman Islands law as the governing law of the Cayman Documents has been made in
good faith.

 

		2.6	Copies of documents, conformed copies or drafts of documents provided to us are true and complete
copies of, or in the final forms of, the originals, and translations of documents provided to us are complete and accurate.

 

		2.7	All signatures, initials and seals are genuine.

 

		2.8	The capacity, power, authority and legal right of all parties under all relevant laws and regulations
(other than, with respect to the Company, the laws of the Cayman Islands) to enter into, execute, unconditionally deliver and perform
their respective obligations under the Transaction Documents, the Cayman Documents and the Equipment Notes.

 

		2.9	There is no contractual or other prohibition or restriction (other than as arising under Cayman
Islands law) binding on the Company prohibiting or restricting it from entering into and performing its obligations under the Transaction
Documents and the Equipment Notes.

 

		2.10	The capacity, power and legal right under all relevant laws (other than the laws of the Cayman
Islands) of the attorneys-in-fact named in a Power of Attorney to act as attorneys-in-fact on behalf of the Company or MaplesFS
(as the case may be).

 

		2.11	The Equipment Notes will be issued and authenticated in accordance with the provisions of the Indenture.

 

		2.12	No monies paid to or for the account of any party under the Transaction Documents represent or
will represent criminal property or terrorist property (as defined in the Proceeds of Crime Law, (2014 Revision) and the Terrorism
Law (2011 Revision), respectively).

 

		2.13	Under the Relevant Laws and all other relevant laws (other than the laws of the Cayman Islands),
including, without prejudice to the generality of the foregoing, the governing law and situs of the property subject to the security
interests created pursuant to the Transaction Documents (the "Secured Property"), the relevant Security Document
creates valid security interests over the Secured Property to which it relates, any further steps required as a matter of the Relevant
Law or other relevant laws (other than the laws of the Cayman Islands) to perfect such security interests or to regulate their
ranking in order of priority have been taken and there are no prior encumbrances or interests over the Secured Property.

 

		2.14	The valid existence of the [Charged Property] (as defined in the LATAM Share Charge) and that no
encumbrances or equities exist in respect of such Charged Property (other than arising by virtue of the laws of the Cayman Islands)
and that there is no contractual or other prohibition (other than arising by virtue of the laws of the Cayman Islands) binding
upon LATAM which would prevent LATAM from creating the security interests pursuant to the LATAM Share Charge.

 

		2.15	The Company has not received a stop notice under Order 50 r.11 of the Grand Court Rules of the
Cayman Islands in respect of the shares which are the subject of the security interest created by the LATAM Share Charge (the "Secured
Shares").

 

		2.16	The existence of the Secured Shares and that immediately prior to the creation of the LATAM Share
Charge, LATAM is the legal and beneficial owner of the Secured Shares and that no encumbrances or equities exist in respect of
the Secured Shares (other than arising by virtue of the laws of the Cayman Islands) and that there is no contractual or other prohibition
(other than one arising by virtue of the laws of the Cayman Islands) binding upon LATAM preventing LATAM from creating the first
priority security interest over the Secured Shares pursuant to the LATAM Share Charge.

 

    	 	3

     

    

  

		2.17	As a matter of the Relevant Law the LATAM Share Charge creates a valid and binding security interest
over the Secured Shares.

 

		2.18	None of the Secured Property is situated in the Cayman Islands or governed by Cayman Islands law.

 

		2.19	No invitation has been or will be made by or on behalf of the Company to the public in the Cayman
Islands to subscribe for any of the Equipment Notes.

 

		2.20	The Loan Trustee is not, and will not at any time be or become, incorporated, resident or otherwise
in existence in the Cayman Islands.

 

		2.21	The Company Powers of Attorney have not been revoked, terminated or amended and remain in full
force and effect and are effective under all relevant laws (other than the laws of the Cayman Islands).

 

		2.22	There is nothing under any law (other than the law of the Cayman Islands) which would or might
affect the opinions set out below. Specifically, we have made no independent investigation of the Relevant Law.

 

		2.23	The Court Register constitutes a complete record of the proceedings before the Grand Court as at
the time of the Litigation Search (as those terms are defined below).

 

		2.24	None of the parties to the Transaction Documents (other than the Company, Rayador Leasing Limited,
Cuclillo Leasing Limited, Canastero Leasing Limited and MaplesFS) is a company incorporated, or a partnership or foreign company
registered, under applicable Cayman Islands law and all the activities of such parties in relation to the Transaction Documents
and any transactions entered into thereunder have not been and will not be carried on through a place of business in the Cayman
Islands.

 

		3	Opinions

 

Based upon, and subject to, the foregoing assumptions
and the qualifications set out below, and having regard to such legal considerations as we deem relevant, we are of the opinion
that:

 

		3.1	Each of the Company and MaplesFS has been duly incorporated with limited liability and is validly
existing and in good standing under the laws of the Cayman Islands.

 

		3.2	Each of the Company and MaplesFS has all the requisite power and authority under its Memorandum
and Articles of Association to enter into, execute and perform its respective obligations under the Transaction Documents to which
it is a party, the Cayman Documents to which it is a party and the Equipment Notes and to issue the Equipment Notes in the case
of the Company and to enter into, execute and perform its obligations under the MaplesFS Share Charge and the Cayman Documents
in the case of MaplesFS.

 

    	 	4

     

    

  

		3.3	The issue of the Equipment Notes, the execution and delivery of the Company Power of Attorney,
the Transaction Documents, Administration Agreement and the Director's Services Agreement by the Company and the performance by
the Company of its obligations thereunder and the execution and delivery of the MaplesFS Power of Attorney and the Cayman Documents
and MaplesFS Share Charge by MaplesFS and the performance by MaplesFS of its obligations thereunder do not conflict with or result
in a breach of any of the terms or provisions of the Memorandum and Articles of Association of the Company or MaplesFS or any law,
public rule or regulation applicable to the Company or MaplesFS, as the case may be, currently in force in the Cayman Islands.

 

		3.4	The Company Powers of Attorney have been authorised by and on behalf of the Company and, assuming
that the Company Powers of Attorney have been executed by an authorised signatory of the Company, constitute each of the persons
named therein as a duly appointed attorney-in- fact of the Company with the powers and authorities therein specified.

 

		3.5	The execution, delivery and performance of the Transaction Documents have been duly authorised
by and on behalf of the Company and the execution, delivery and performance of the Cayman Documents and the MaplesFS Share Charge
have been authorised by and on behalf of MaplesFS and, upon the execution and unconditional delivery of the Transaction Documents
by a Director or attorney-in-fact of the Company pursuant to the Company Power of Attorney for and on behalf of the Company, and
upon the execution and unconditional delivery of the Cayman Documents and the MaplesFS Share Charge by an authorised signatory
of MaplesFS, the Transaction Documents, the Cayman Documents and the MaplesFS Share Charge will have been duly executed and delivered
on behalf of the Company and MaplesFS, as the case may be, and will constitute the legal, valid and binding obligations of the
Company and MaplesFS, as the case may be, enforceable in accordance with their terms.

 

		3.6	The Equipment Notes have been duly authorised by the Company and when the Equipment Notes are signed
in facsimile or manually by a director on behalf of the Company and, if appropriate, authenticated in the manner set forth in the
Indenture and delivered against due payment therefor will be duly executed, issued and delivered and will constitute the legal,
valid and binding obligations of the Company enforceable in accordance with their respective terms.

 

		3.7	No authorisations, consents, approvals, licences, validations or exemptions are required by law
from any governmental authorities or agencies or other official bodies in the Cayman Islands in connection with:

 

		(a)	the issue of the [Preliminary Offering Circular and the
Final Offering Circular];

 

		(b)	the execution, creation or delivery (and offering or issue, where applicable) of the Transaction
Documents, the Equipment Notes, the Cayman Documents and the MaplesFS Share Charge by and on behalf of the Company and MaplesFS,
as applicable;

 

		(c)	subject to the payment of the appropriate stamp duty, enforcement of the Transaction Documents,
the Equipment Notes, the Cayman Documents and [the MaplesFS Share Charge] against the Company or MaplesFS, as applicable;

 

		(d)	the offering, execution, authentication, allotment, issue or delivery of the Equipment Notes;

 

    	 	5

     

    

  

		(e)	the performance by the Company or MaplesFS of its obligations under the Equipment Notes, the Transaction
Documents, the Cayman Documents or the MaplesFS Share Charge; or

 

		(f)	the payment of the principal and interest and any other amounts under the Equipment Notes.

 

		3.8	Subject to the qualification at paragraph 4.3, no taxes,
fees or charges are payable (either by direct assessment or withholding) to the government or other taxing authority in the Cayman
Islands under the laws of the Cayman Islands in respect of:

 

		(a)	the execution or delivery of the Transaction Documents and the Equipment Notes;

 

		(b)	the enforcement of the Transaction Documents and the Equipment Notes;

 

		(c)	payments made under, or pursuant to, the Transaction Documents and the Equipment Notes; or

 

		(d)	the issue, transfer or redemption of the Equipment Notes.

 

The Cayman Islands currently have no form of income,
corporate or capital gains tax and no estate duty, inheritance tax or gift tax.

 

		3.9	The courts of the Cayman Islands will observe and give
effect to the choice of the Relevant Law (as the case may be) as the governing law of the Transaction Documents and the Equipment
Notes and to the choice of Cayman Islands law as the governing law of the Cayman Documents.

 

		3.10	Based solely on our search of the Register of Writs and Other Originating Process (the "Court
Register") maintained by the Clerk of the Court of the Grand Court of the Cayman Islands from the date of incorporation
of the Company to close of business (Cayman Islands time) on [ ] 2015 (the "Litigation Search"), the Court Register
disclosed no writ, originating summons, originating motion, petition (including any winding up petition), counterclaim nor third
party notice ("Originating Process") nor any amended Originating Process pending before the Grand Court of the
Cayman Islands, in which the Company is a defendant or respondent.

 

		3.11	Although there is no statutory enforcement in the Cayman Islands of judgments obtained in the Relevant
Jurisdiction, a judgment obtained in any such jurisdiction will be recognised and enforced in the courts of the Cayman Islands
at common law, without any re-examination of the merits of the underlying dispute, by an action commenced on the foreign judgment
debt in the Grand Court of the Cayman Islands, provided such judgment:

 

		(a)	is given by a foreign court of competent jurisdiction;

 

		(b)	imposes on the judgment debtor a liability to pay a liquidated sum for which the judgment has been given;

 

		(c)	is final;

 

		(d)	is not in respect of taxes, a fine or a penalty; and

 

    	 	6

     

    

  

		(e)	was not obtained in a manner and is not of a kind the enforcement of which is contrary to natural
justice or the public policy of the Cayman Islands.

 

		3.12	In relation to the LATAM Share Charge:

 

		(a)	the courts of the Cayman Islands will recognise the security interest created by the MaplesFS Share
Charge;

 

		(b)	no steps are required as a matter of Cayman Islands law to perfect such security interest or to
regulate its ranking in point of priority; and

 

		(c)	the security interest created by the LATAM Share Charge will have priority over any claims by third
parties (other than those preferred by law), including any liquidator or a creditor of LATAM, subject in the case of a winding
up of LATAM in a jurisdiction other than the Cayman Islands to any provisions of the laws of that jurisdiction as to priority of
claims in a winding up.

 

		3.13	In relation to any of the Security Documents:

 

		(a)	the courts of the Cayman Islands will recognise the security interest created by the applicable
Security Document;

 

		(b)	no steps are required as a matter of Cayman Islands law to perfect such security interest or to
regulate its ranking in order of priority; and

 

		(c)	the security interest created by the applicable Security Document will have priority over any claims
by third parties (other than those preferred by law), including any liquidator or a creditor of the Company, subject in the case
of a winding up of the Company in a jurisdiction other than the Cayman Islands to any provisions of the laws of that jurisdiction
as to priority of claims in a winding up. The obligations of the Company under the Transaction Documents and the Equipment Notes
(other than those preferred by law).

 

		3.14	It is not necessary to ensure the legality, validity, enforceability or admissibility in evidence
of the Transaction Documents, the Cayman Documents, the Equipment Notes and the Company Powers of Attorney that any document be
filed, recorded or enrolled with any governmental authority or agency or any official body in the Cayman Islands.

 

		3.15	The statements made in the Preliminary Offering Circular and Final Offering Circular under the
heading "Taxation" are correct in so far as such statements are summaries of or relate to Cayman Islands law.

 

		3.16	None of the parties to the Transaction Documents (other than the Company and MaplesFS) or the holders
of Equipment Notes will be required to be licensed, qualified, or otherwise entitled to carry on business in the Cayman Islands
in order to enforce their respective rights under the Transaction Documents, or as a consequence of the execution, delivery and
performance of the Transaction Documents, or the issue of the Equipment Notes and the performance and enforcement of their obligations
thereunder.

 

		3.17	There is no exchange control legislation under Cayman Islands law and accordingly there are no
exchange control regulations imposed under Cayman Islands law.

 

    	 	7

     

    

  

		3.18	The submission by the Company in the Transaction Documents to the [exclusive] jurisdiction of the
courts of the Relevant Jurisdiction, as applicable, is legal, valid and binding on the Company assuming that the same is true under
the governing law of the Transaction Documents and under the laws, rules and procedures applying in the courts of New York, as
applicable.

 

		4	Qualifications

 

The opinions expressed above are subject to the following
qualifications:

 

		4.1	The obligations assumed by the Company under the Transaction Documents and the Equipment Notes
will not necessarily be enforceable in all circumstances in accordance with their terms. In particular:

 

		(a)	enforcement may be limited by bankruptcy, insolvency,
liquidation, reorganisation, readjustment of debts or moratorium or other laws of general application relating to or affecting
the rights of creditors;

 

		(b)	enforcement may be limited by general principles of equity. For example, equitable remedies such
as specific performance may not be available, inter alia, where damages are considered to be an adequate remedy;

 

		(c)	some claims may become barred under relevant statutes of limitation or may be or become subject
to defences of set off, counterclaim, estoppel and similar defences;

 

		(d)	where obligations are to be performed in a jurisdiction outside the Cayman Islands, they may not
be enforceable in the Cayman Islands to the extent that performance would be illegal under the laws of that jurisdiction;

 

		(e)	the courts of the Cayman Islands have jurisdiction to give judgment in the currency of the relevant
obligation and statutory rates of interest payable upon judgments will vary according to the currency of the judgment. If the Company
becomes insolvent and is made subject to a liquidation proceeding, the courts of the Cayman Islands will require all debts to be
proved in a common currency, which is likely to be the "functional currency" of the Company determined in accordance
with applicable accounting principles. Currency indemnity provisions have not been tested, so far as we are aware, in the courts
of the Cayman Islands;

 

		(f)	arrangements that constitute penalties will not be enforceable;

 

		(g)	enforcement may be prevented by reason of fraud, coercion, duress, undue influence, misrepresentation,
public policy or mistake or limited by the doctrine of frustration of contracts;

 

		(h)	provisions imposing confidentiality obligations may be overridden by compulsion of applicable law
or the requirements of legal and/or regulatory process;

 

		(i)	the courts of the Cayman Islands may decline to exercise jurisdiction in relation to substantive
proceedings brought under or in relation to the Transaction Documents in matters where they determine that such proceedings may
be tried in a more appropriate forum.

 

    	 	8

     

    

  

		(j)	any provision in a Transaction Document which is governed by Cayman Islands law purporting to impose
obligations on a person who is not a party to such Transaction Document (a "third party") is unenforceable against
that third party. Any provision in a Transaction Document which is governed by Cayman Islands law purporting to grant rights to
a third party is unenforceable by that third party, except to the extent that such Transaction Document expressly provides that
the third party may, in its own right, enforce such rights (subject to and in accordance with the Contracts (Rights of Third Parties)
Law, 2014 of the Cayman Islands);

 

		(k)	we reserve our opinion as to the enforceability of the relevant provisions of the Transaction Documents
to the extent that they purport to grant exclusive jurisdiction as there may be circumstances in which the courts of the Cayman
Islands would accept jurisdiction notwithstanding such provisions; and

 

a company cannot, by agreement
or in its articles of association, restrict the exercise of a statutory power and there is doubt as to the enforceability of any
provision in the Transaction Documents whereby the Company covenants to restrict the exercise of powers specifically given to it
under the Companies Law (2013 Revision) of the Cayman Islands, including, without limitation, the power to increase its authorised
share capital, amend its memorandum and articles of association or present a petition to a Cayman Islands court for an order to
wind up the Company.

 

		4.2	Applicable court fees will be payable in respect of the
enforcement of the Transaction Documents.

 

		4.3	Cayman Islands stamp duty may be payable if the original Transaction Documents or the Equipment
Notes (if not registered Equipment Notes) are brought to or executed in the Cayman Islands.

 

		4.4	To maintain the Company in good standing under the laws of the Cayman Islands, annual filing fees
must be paid and returns made to the Registrar of Companies within the time frame prescribed by law.

 

		4.5	The Company must make an entry in its Register of Mortgages and Charges in respect of all mortgages
and charges created under the Transaction Documents in order to comply with section 54 of the Companies Law (2013 Revision) of
the Cayman Islands; failure by the Company to comply with this requirement does not operate to invalidate any mortgage or charge
though it may be in the interests of the secured parties that the Company should comply with the statutory requirements.

 

		4.6	Under the laws of the Cayman Islands any term of a Transaction Document which is governed by Cayman
Islands law may be amended or waived orally or by the conduct of the parties thereto, notwithstanding any provision to the contrary
contained in the relevant Transaction Document.

 

		4.7	The obligations of the Company may be subject to restrictions pursuant to United Nations sanctions
as implemented under the laws of the Cayman Islands and/or restrictive measures adopted by the European Union Council for Common
Foreign and Security Policy extended to the Cayman Islands by the Order of Her Majesty in Council.

 

		4.8	A certificate, determination, calculation or designation of any party to the Transaction Documents
or the Equipment Notes as to any matter provided therein might be held by a Cayman Islands court not to be conclusive final and
binding if, for example, it could be shown to have an unreasonable or arbitrary basis, or in the event of manifest error.

 

    	 	9

     

    

  

		4.9	The Litigation Search of the Court Register would not reveal, amongst other things, an Originating
Process filed with the Grand Court which, pursuant to the Grand Court Rules or best practice of the Clerk of the Courts' office,
should have been entered in the Court Register but was not in fact entered in the Court Register (properly or at all), or any Originating
Process which has been placed under seal or anonymised (whether by order of the Court or pursuant to the practice of the Clerk
of the Courts' office, in either case save for winding up petitions, which pursuant to O.24 r.6(1) of the Companies (Winding Up)
Rules (as amended) may not be placed under seal).

 

		4.10	In principle the courts of the Cayman Islands will award costs and disbursements in litigation
in accordance with the relevant contractual provisions but there remains some uncertainty as to the way in which the rules of the
Grand Court will be applied in practice. Whilst it is clear that costs incurred prior to judgment can be recovered in accordance
with the contract, it is likely that post- judgment costs (to the extent recoverable at all) will be subject to taxation in accordance
with Grand Court Rules Order 62.

 

		4.11	Preferred creditors under Cayman Islands law will rank ahead of unsecured creditors of the Company.
Furthermore, all costs, charges and expenses properly incurred in the voluntary winding up of a company, including the remuneration
of the liquidators, are payable out of the assets of the company in priority to all other unsecured claims.

 

		4.12	Following the English decision in MacMillan Inc. v Bishopsgate Trust (No. 3) [1995] 1 W.L.R.
978, which would be persuasive although not technically binding in the courts of the Cayman Islands, it is not necessarily the
case that, as a matter of Cayman Islands conflict of law rules, priorities of competing interests in shares in a Cayman Islands
company will be determined according to the jurisdiction of incorporation of such company, for example, when the register of members
is maintained in another jurisdiction.

 

		4.13	All transfers of shares and any alteration in the status of the members of the Company that take
place after the commencement of the winding up of the Company will be void unless, in the case of a transfer of shares in a voluntary
winding up, the transfer is made to or with the sanction of the liquidator or, in the case of a winding up by, or under the supervision
of, the Court, the Court consents.

 

		4.14	The articles of association of the Company contain restrictions on the transferability of shares
in the Company which may affect the ability of a mortgagee or chargee to realise his security by, for example, selling the Secured
Shares.

 

		4.15	We reserve our opinion as to the extent to which the courts of the Cayman Islands would, in the
event of any relevant illegality or invalidity, sever the relevant provisions of the Transaction Documents and enforce the remainder
of the Transaction Documents or the transaction of which such provisions form a part, notwithstanding any express provisions in
the Transaction Documents in this regard.

 

		4.16	We express no opinion as to the meaning, validity or effect of any references to foreign (i.e.
non- Cayman Islands) statutes, rules, regulations, codes, judicial authority or any other promulgations and any references to them
in the Transaction Documents or the Equipment Notes.

 

    	 	10

     

    

  

We express no view as to the
commercial terms of the Transaction Documents or the Equipment Notes or whether such terms represent the intentions of the parties
and make no comment with regard to warranties or representations that may be made by the Company.

 

The opinions in this opinion
letter are strictly limited to the matters contained in the opinions section above and do not extend to any other matters. We have
not been asked to review and we therefore have not reviewed any of the ancillary documents relating to the Transaction Documents
and express no opinion or observation upon the terms of any such document.

 

This opinion
letter is addressed to and for the benefit solely of the addressees and may not be relied upon by any other person for any purpose,
nor may it be transmitted or disclosed (in whole or part) to any other person without our prior written consent.

 

A copy of this opinion may, however,
be given to Standard & Poor’s Rating Services, a Standard & Poor's Financial Services LLC business. ("S&P")
and to Moody's Investors Service, Inc. ("Moody's") and their respective legal advisers for the purposes of information
only, since we understand that they wish to know that an opinion has been given and to be made aware of its terms. However, neither
S&P nor Moody's may rely on this opinion for its own benefit or for that of any other person.

 

Yours faithfully

 

Maples and Calder

 

    	 	11

     

    

  

First Schedule

 

		1	Parina Leasing Limited

 

		2	Wilmington Trust Company

 

		3	Wilmington Trust, National Association

 

		4	Citigroup Global Markets Inc.

 

		5	Deutsche Bank Securities Inc.

 

		6	J.P. Morgan Securities LLC

 

		7	Natixis Securities Americas LLC

 

		8	MaplesFS Limited

 

		9	LATAM Airlines Group S.A.

 

     

     

    

  

Second Schedule

 

		1	Certificate Purchase Agreement

 

		2	Note Purchase Agreement

 

		3	Participation Agreement

 

		4	Indenture

 

		5	[Airframe Warranties Agreement]

 

		6	Engine Warranties Agreement

 

		7	Indenture Supplement

 

		8	Lease

 

		9	[Lease Assignment]

 

		10	Equipment Notes

 

		11	Purchase Agreement Assignment

 

		12	[Brazilian/Chilean Mortgage]

 

		13	Note Guarantee

 

		14	The charge over shares dated [29] May 2015 executed by LATAM in favour of the Loan Trustee (the "LATAM Share Charge").

 

		15	The charge over shares dated [29] May 2015 executed by MaplesFS in favour of the Loan Trustee (the "MaplesFS Share
Charge").

 

The documents listed at 4, 7, 9, and 12 above are
collectively, the "Security Documents", each a "Security Document".

 

     

     

    

  

MSN 6698

PART I ANNEX A to

Participation Agreement,

Indenture and Security Agreement and

Lease Agreement

 

DEFINITIONS

 

“Acceptance
Certificate” means the acceptance certificate to be entered into between the Lessee and the Lessor on the Closing Date
substantially in the form of Exhibit II to the Lease.

 

“Act” means the Federal Aviation
Act of 1958.

 

“Additional Insureds” has the meaning
set forth in Section 10(b) of the Lease.

 

“Additional Series” or
“Additional Series Equipment Notes” means Equipment Notes issued under the Indenture and designated as a series
(other than “Series A”, or “Series B”, thereunder, if any, in the principal amounts and maturities and
bearing interest as specified in Schedule I to the Indenture amended at the time of original issuance of such Additional Series
under the heading for such series.

 

“Additional
Series Pass Through Certificates” means the pass through certificates, if any, issued by any Additional Series Pass Through
Trust (including, without limitation, any “Refinancing Certificates” (as such term is defined in the Intercreditor
Agreement”) issued by a “Refinancing Trust” described in clause (ii) of the definition of “Additional Series
Pass Through Trust”).

 

“Additional Series Pass Through Trust” means (i) initially, a grantor trust, if any, created
pursuant to the applicable Pass Through Trust Agreement to facilitate the issuance and sale of pass through certificates in connection
with the initial issuance of any Additional Series Equipment Notes and (ii) any “Refinancing Trust” (as such
term is defined in the Intercreditor Agreement) created in connection with any subsequent redemption of such Additional Series
Equipment Notes and issuance of new Additional Series Equipment Notes.

 

“Additional
Series Pass Through Trust Agreement” means a Trust Supplement entered into in connection with the creation of an Additional
Series Pass Through Trust, together with the Basic Pass Through Trust Agreement, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms.

 

     

     

    

  

“Additional
Series Pass Through Trustee” means, with respect to any Additional Series Pass Through Trust, the trustee under the Additional
Series Pass Through Trust Agreement for such Additional Series Pass Through Trust, in its capacity as pass through trustee thereunder.

 

“Administration
Agreement” means the administration agreement dated on or about the Issuance Date between the Owner, LATAM, the Subordination
Agent and the Administrator as to the administration of the Owner.

 

“Administrator” means MaplesFS Limited.

 

“Affected Related Aircraft” has
the meaning set forth in Section 3(e)(i) of the Lease.

  

“Affiliate”
of any Person means (i) any other Person directly or indirectly controlling, directly or indirectly controlled by, or under direct
or indirect common control with, such Person; or if such Person is a partnership, any general partner of such Person or a Person
controlling such general partner and/or (ii) any other Person who would, under IFRS, be consolidated or required to be consolidated
for accounting purposes with such Person. For purposes of this definition, "control" (including "controlled by"
and "under common control with") shall mean the power, directly or indirectly, to direct or cause the direction of the
management and policies of such Person whether through the ownership of voting securities or by contract or otherwise. In no event
shall WTC be deemed to be an Affiliate of the Loan Trustee or vice versa.

 

“After-Tax
Basis” means that indemnity and compensation payments required to be made on such basis will be supplemented by the Person
paying the base amount by that amount (the “additional amount”) which, when added to such base amount, and after
deduction of all federal, state, local and foreign Taxes required to be paid by or on behalf of the payee with respect of the receipt
or realization of the base amount and any such supplemental amounts, and after consideration of any current tax savings of such
payee resulting by way of any deduction, credit or other tax benefit actually and currently realized that is attributable to such
base amount or additional amount (or the circumstances giving rise to the payment of the base amount or the additional amount),
shall net such payee the full amount of such base amount.

 

“Agreement”
and “Participation Agreement” mean that certain Participation Agreement (6698), dated on or before the Closing
Date, among LATAM, the Owner, WTC, the Pass Through Trustee under each Pass Through Trust Agreement in effect as of the date of
execution and delivery of such Participation Agreement, the Subordination Agent and the Loan Trustee, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its terms.

 

    	 	A-2	 

     

    

  

“Aircraft”
means one (1) new Airbus model A321-200 aircraft comprising the Airframe together with the two (2) new CFM56-5B3/3 Engines described
in the Indenture Supplement originally executed and delivered under the Indenture (or any Replacement Engine that may from time
to time be substituted for any of such Engines pursuant to Section 7(j) or 9(b) of the Lease), whether or not any of such initial
or substituted Engines may from time to time be installed on such Airframe or installed on any other airframe or on any other aircraft.

 

“Aircraft
Security Documents” means the Note Guarantee, the Local Mortgage, the Assignment of Insurances, any Subordination Acknowledgment,
the Lessee Power of Attorney and the Lessor Power of Attorney and the Warranty Assignments.

 

“Airframe”
means (a) the Airbus model A321-200 airframe further described in Annex A to the Indenture Supplement originally executed
and delivered under the Indenture (except the Engines or engines from time to time installed thereon and any and all Parts related
to such Engine or engines) and (b) and any and all Parts, whether or not the same shall be incorporated or installed in
or attached to the Airframe so long as title thereto shall remain vested in the Owner in accordance with the terms of Section 8(a)
of the Lease, together with the Manuals and Technical Records therefor.

 

“Airframe
Warranties Agreement” means the airframe warranties agreement dated as of the Closing Date among the Lessee, the Lessor,
the Loan Trustee and the Manufacturer in respect of the Airframe, substantially in the form of Exhibit L-1 to the Note Purchase
Agreement, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms.

 

“Airworthiness
Directive” means any requirement for the inspection, repair or modification of the Aircraft, any Engine or any Part as
issued by the Aviation Authority.

 

“Applicable
Laws” means, with respect to any Person or property (including the Aircraft and any Collateral), all applicable laws,
treaties, conventions, ordinances, judgments, decrees, injunctions, writs, rules, regulations, orders, interpretations, licenses,
permits and orders of any Government Body in any relevant jurisdiction, in each case applicable to such Person or property (including
the Aircraft and any Collateral).

 

“Approved
Maintenance Facility” has the meaning set forth in Section 7(c)(i) of the Lease.

 

“Approved
Maintenance Program” has the meaning set forth in Section 7(c)(i) of the Lease.

 

“Assignment
of Insurances” means the Assignment of Insurances dated as of the Closing Date between LATAM and the Loan Trustee substantially
in the form of Exhibit H to the Note Purchase Agreement, as the same may be amended, supplemented or otherwise modified from time
to time in accordance with its terms.

 

    	 	A-3	 

     

    

  

“Average Life Date” means, for each Equipment Note to be redeemed, the date which follows
the redemption date by a period equal to the Remaining Weighted Average Life at the redemption date of such Equipment Note. “Remaining
Weighted Average Life” of an Equipment Note, at the redemption date of such Equipment Note, means the number of
days equal to the quotient obtained by dividing: (i) the sum of the products obtained by multiplying (A) the amount of each
then remaining installment of principal, including the payment due on the maturity date of such Equipment Note, by (B) the
number of days from and including the redemption date to but excluding the scheduled Payment Date of such principal installment
by (ii) the then unpaid principal amount of such Equipment Note.

 

“Aviation
Authority” means (i) the Dirección General de Aeronáutica Civil of Chile and any successor organization
and each other Government Body or other Person who shall from time to time be vested with the control and supervision of, or have
jurisdiction over, the registration, airworthiness and operation of aircraft or other matters relating to civil aviation in Chile,
or (ii) if the Aircraft is subleased to, or operated by, a Permitted Sublessee and is re-registered in accordance with Section
7(b) of the Lease, such Government Body or other Person who shall from time to time be vested with the control and supervision
of, or have jurisdiction over, the registration, airworthiness and operation of aircraft or other matters relating to civil aviation
in the applicable Permitted Jurisdiction.

 

“Bankruptcy
Law” means any domestic or foreign bankruptcy, insolvency, receivership or similar law.

 

“Basic
Pass Through Trust Agreement” means that certain Pass Through Trust Agreement, dated as of May 29, 2015, between LATAM
and WTC, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms (but does
not include any Trust Supplement).

 

“Basic Rent” has the meaning set
forth in Section 3(b)(i) of the Lease.

 

“Basic
Rent Payment Date” means, in respect of the Basic Rent, (x) the first Payment Date occurring after the Closing Date and
(y) each of the successive Payment Dates thereafter (or, in each case, if any such day is not a Business Day, the next succeeding
Business Day).

 

“Bill
of Sale” means the bill of sale for the Aircraft executed by the Manufacturer in favor of the Owner dated the date on
which the Aircraft is delivered to the Owner and pursuant to which the Owner obtained title to such Aircraft, substantially in
the form set out in Schedule 1 (Bill of Sale) to the Purchase Agreement Assignment. 

 

    	 	A-4	 

     

    

 

“Brazil” shall mean the Federal
Republic of Brazil.

 

“Business
Day” means any day other than a Saturday, Sunday or day on which commercial banks are required or authorized to close
in New York, New York, Santiago, Chile, Wilmington, Delaware, or, if different from the foregoing, the city in which the Loan Trustee,
any Pass Through Trustee or the Subordination Agent maintains its corporate trust office or receives and disburses funds.

 

“Call
Option Agreements” has the meaning set forth in Section 1.01 of the Intercreditor Agreement.

 

“Certificate
of Airworthiness” means with respect to the Aircraft, the certificate of airworthiness issued by the Aviation Authority.

 

“Certificate
of Registration” means, with respect to the Aircraft, the certificate of aircraft registration issued by the Aviation
Authority.

 

“Certificate
Purchase Agreement” means, as applicable, that certain Purchase Agreement, dated as of May 14, 2015, among LATAM, the
Owner, each Related Owner and Citigroup Global Markets Inc., as representative of the initial purchasers named therein, and the
Depositary, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms.

 

“Change
in Law” means, in each case after the date of the Indenture or as otherwise specified in any relevant Financing Agreements,
any implementation, introduction, abolition, withdrawal or variation of any Applicable Law, regulation, published practice or concession
or official directive, ruling, request, notice, guideline, statement of policy or practice statement by any Government Body (whether
or not having the force of law but in respect of which compliance by banks or other financial institutions in the relevant jurisdiction
is generally customary) or any change in any interpretation, or the introduction or making of any new or further interpretation,
or any new or different interpretation by any court, tribunal, governmental, revenue, local, federal, international, national,
fiscal or other competent authority or compliance with any new or different request or direction (in either case whether or not
having the force of law but in respect of which compliance by banks or other financial institutions in the relevant jurisdiction
is generally customary) from any Government Body.

 

    	 	A-5	 

     

    

  

“Charter”
shall mean any contractual agreement (other than a contractual agreement with respect to a regularly scheduled flight of the Lessee)
entered into by the Lessee with any Person other than an air carrier for the use (but not operation) of the Aircraft or any Part
thereof.

 

“Chile” shall mean the Republic
of Chile.

 

“Class
A Certificates” means Pass Through Certificates issued by the Class A Pass Through Trust.

 

“Class
A Liquidity Facility” has the meaning set forth in the Intercreditor Agreement.

 

“Class
A Liquidity Provider” has the meaning set forth in the Intercreditor Agreement.

 

“Class
A Pass Through Trust” means the LATAM Pass Through Trust 2015-1A created pursuant to the Basic Pass Through Trust Agreement,
as supplemented by Trust Supplement No. 2015-1A, dated as of the Issuance Date, between LATAM and WTC, as Class A Trustee.

 

“Class A Trustee” means the trustee
for the Class A Pass Through Trust.

 

“Class
B Certificates” means Pass Through Certificates issued by the Class B Pass Through Trust.

 

“Class
B Liquidity Facility” has the meaning set forth in the Intercreditor Agreement.

 

“Class
B Liquidity Provider” has the meaning set forth in the Intercreditor Agreement.

 

“Class
B Pass Through Trust” means the LATAM Pass Through Trust 2015-1B created pursuant to the Basic Pass Through Trust Agreement,
as supplemented by Trust Supplement No. 2015-1B, dated as of the Issuance Date, between LATAM, and WTC, as Class B Trustee.

“Class B Trustee”
means the trustee for the Class B Pass Through Trust. “Closing” has the meaning specified in Section 2.03 of
the Participation

Agreement.

 

“Closing
Date” means the date of the closing of the transaction contemplated by the Financing Agreements.

 

“Code” means the Internal Revenue
Code of 1986, as amended from time to time.

 

    	 	A-6	 

     

    

  

“Collateral”
means all or part of the property subject to the Liens created by the Indenture or any Security Document, as the context may require.

 

“Confidential
Information” has the meaning specified in Section 10.16 of the Indenture.

 

“Controlling
Party” has the meaning specified in Section 2.06 of the Intercreditor Agreement.

 

“Corporate
Trust Office” has the meaning specified in Section 1.01 of the Intercreditor Agreement.

 

“Debt Rate” means, with respect to any Series of Equipment Notes, (i) the rate per annum specified
for the applicable Series as such in Schedule I to the Indenture (as, in the case of any Additional Series Equipment Notes
issued after the Closing Date, such Schedule I may be amended in connection with such issuance) and as such rate may be
changed from time to time for such period(s), and in such amounts and circumstances, as provided in Section 2(d) of the relevant
Registration Rights Agreement, and (ii) for any other purpose, with respect to any period, the weighted average interest
rate per annum during such period borne by the outstanding Equipment Notes, excluding any interest payable at the Past Due Rate.

 

“Default”
means a Lease Event of Default or an event or a condition that, with the giving of notice or lapse of time or both, would become
a Lease Event of Default.

 

“Defaulted Operative Indenture” means any Operative Indenture (the terms “Indenture
Event of Default”, “Equipment Notes” and “Payment Default” used in this definition have the meanings
specified therefor in such Operative Indenture) with respect to which (i) a Payment Default has occurred and is continuing or an
Indenture Event of Default described in Section 4.01(a) of such Operative Indenture has occurred and is continuing or (ii)
an Indenture Event of Default other than an Indenture Event of Default described in Section 4.01(a) of such Operative Indenture
has occurred and is continuing and, in any such case, either (x) the Equipment Notes issued thereunder have been accelerated
and such acceleration has not been rescinded and annulled in accordance therewith or (y) the loan trustee under such Operative
Indenture has given the Owner a notice of its intention to exercise one or more of the remedies specified in Section 4.02(a) of
such Operative Indenture.

 

“Delivery”
shall mean the time when the Owner (through the Lessee, if applicable) shall accept delivery of the Aircraft from the Manufacturer
pursuant to the terms of the Purchase Agreement.

 

    	 	A-7	 

     

    

  

“Delivery
Date” shall mean the date on which the Delivery of the Aircraft occurs under the applicable Purchase Agreement, which
for the avoidance of doubt, shall be the same as the “Closing Date”.

 

“Deposit
Agreement” means, subject to Section 5(f) of the Note Purchase Agreement, each of the two Deposit Agreements, dated as
of the applicable Issuance Date, between the Escrow Agent and the Depositary, which relate to the Class A Pass Through Trust or
the Class B Pass Through Trust, respectively; provided that, for purposes of any obligation of Owner, no amendment, modification
or supplement to, or substitution or replacement of, any such Deposit Agreement shall be effective unless consented to by the Owner.

 

“Depositary”
means, subject to Section 5(f) of the Note Purchase Agreement, Natixis, acting through its New York Branch, as Depositary under
each Deposit Agreement.

 

“Direction” has the meaning specified
in Section 2.16 of the Indenture.

 

“Directors
Services Agreement” means the director services agreement dated on or about the Issuance Date among the Administrator,
the Owner and the Subordination Agent.

 

“Dollars”
“US Dollars”, “U.S.$”, “US$” and “$” mean immediately
available and freely transferable lawful currency of the United States of America.

 

“Dry Lease” means any lease of the
Aircraft (other than a Wet Lease).

 

“Eligible Account” means an account established by and with an Eligible Institution at the
request of the Loan Trustee, which institution agrees, for all purposes of the NY UCC including Article 8 thereof, that (a)
such account shall be a “securities account” (as defined in Section 8-501(a) of the NY UCC), (b) such institution
is a “securities intermediary” (as defined in Section 8-102(a)(14) of the NY UCC), (c) all property (other than
cash) credited to such account shall be treated as a “financial asset” (as defined in Section 8-102(a)(9) of the NY
UCC), (d) the Loan Trustee shall be the “entitlement holder” (as defined in Section 8-102(a)(7) of the NY UCC)
in respect of such account, (e) it will comply with all entitlement orders issued by the Loan Trustee to the exclusion of
the Owner, (f) it will waive or subordinate in favor of the Loan Trustee all claims (including, without limitation, claims by way
of security interest, lien or right of set-off or right of recoupment), and (g) the “securities intermediary jurisdiction”
(under Section 8-110(e) of the NY UCC) shall be the State of New York.

 

    	 	A-8	 

     

    

  

“Eligible
Institution” means the corporate trust department of (a) WTC or any other Person that becomes a successor Loan
Trustee under the Indenture, in each case, acting solely in its capacity as a “securities intermediary” (as defined
in Section 8- 102(a)(14) of the NY UCC), or (b) a depository institution organized under the laws of the United States of
America or any one of the states thereof or the District of Columbia (or any United States branch of a foreign bank), which has
a Long-Term Rating of at least A2 (or its equivalent) from Moody’s and A (or its equivalent) from S&P.

 

“Engine”
means (a) each of the two CFM International, Inc. engines (generic manufacturer and model CFM56-5B3/3) listed by manufacturer’s
serial number and further described in Annex A to the Indenture Supplement originally executed and delivered under the Indenture,
whether or not from time to time installed on the Airframe or installed on any other airframe or on any other aircraft, and (b)
any Replacement Engine; in each case whether or not such engine or Replacement Engine at any time is installed on the Aircraft
or is installed on any other aircraft or airframe, so long as title thereto shall remain vested in the Lessor in accordance with
the terms of Section 7(e) of the Lease, together with the Manual and Technical Records therefor; together in each case with any
and all related Parts, but excluding items installed or incorporated in or attached to any such engine from time to time that are
excluded from the definition of Parts. At such time as a Replacement Engine shall be so substituted and the Engine for which substitution
is made shall be released from the Lien of the Indenture and the Aircraft Security Documents, such replaced Engine shall cease
to be an Engine under the Indenture and the Aircraft Security Documents.

 

“Engine
Agreement” means the CFM General Terms Agreement No. CFM-1- 2377460475 dated 17 December 2010 between the Engine Manufacturer
CFM International, Inc. and the Lessee, but solely to the extent such General Terms Agreement relates to the Engines, as amended,
modified or supplemented from time to time, including all letter agreements thereto;

 

“Engine Manufacturer” means CFM
International, Inc..

 

“Engine
Warranties Agreement” means the Engine Warranties Agreement dated as of the Closing Date among the Owner, LATAM and the
Loan Trustee, substantially in the form of Exhibit M-2 to the Note Purchase Agreement, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with its terms.

 

“Equipment
Note” means and includes any equipment notes issued under the Indenture in the form specified in Section 2.01 thereof
(as such form may be varied pursuant to the terms of the Indenture) and any Equipment Note issued in exchange therefor or replacement
thereof pursuant to Section 2.07 or 2.08 of the Indenture.

 

“Equipment
Note Register” has the meaning specified in Section 2.07 of the Indenture.

 

    	 	A-9	 

     

    

  

“Equipment
Note Registrar” has the meaning specified in Section 2.07 of the Indenture.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings
issued thereunder. Section references to ERISA are to ERISA as in effect at the date of the Participation Agreement and any subsequent
provisions of ERISA amendatory thereof, supplemental thereto or substituted therefor.

 

“Escrow
Agent” means Wilmington Trust, National Association, a national banking association, as escrow agent under each Escrow
Agreement, or any successor agent thereto.

 

“Escrow
Agreement” means each of the two Escrow and Paying Agent Agreement, dated as of the Issuance Date, among the Escrow Agent,
the Paying Agent, Citigroup Global Markets Inc., as representative of the applicable Initial Purchasers, and one of the Pass Through
Trustees, which relate to the Class A Pass Through Trust or the Class B Pass Through Trust; provided that, for purposes
of any obligation of the Owner, no amendment, modification or supplement to, or substitution or replacement of, any such Escrow
Agreement shall be effective unless consented to by the Owner.

 

“Event
of Loss” means, with respect to the Aircraft, the Airframe or any Engine, any of the following events: (i) the destruction
of or damage to such property that renders repair uneconomic or that renders such property permanently unfit for normal use; (ii)
any damage or loss to or other circumstance in respect of such property that results in an insurance settlement with respect to
such property on the basis of a total loss, or a constructive, compromised or arranged total loss; (iii) the confiscation or nationalization
of, or requisition of title to such property by any Government Body; (iv) the theft, hijacking or disappearance of such property
that shall have resulted in the loss of possession of such property by the Lessee (or a Permitted Sublessee) for a period in excess
of sixty (60) days; (v) grounding of the Aircraft or other prohibition on the operation or use of the Aircraft in the normal course
of Lessee’s business for a period of one hundred twenty (120) consecutive days due to action by a Government Body; or (vi)
the seizure of, sequestration of, condemnation, confiscation or taking of, or requisition for use of, such property by any Government
Body that shall have resulted in the loss of possession of such property by the Lessee (or Permitted Sublessee) and such requisition
for use shall have continued beyond the earlier of (A) sixty (60) days and (B) the date of receipt of insurance or condemnation
proceeds with respect thereto. An Event of Loss with respect to the Aircraft shall be deemed to have occurred if an Event of Loss
occurs with respect to the Airframe.

 

    	 	A-10	 

     

    

  

An Event of Loss shall be deemed to have occurred:

 

(a)          in
the case of an actual total loss, at 12:00 midnight (New York time) on the actual date the Aircraft was lost or, if such date is
not known, 12:00 midnight (New York time) on the day on which the Aircraft was last heard from;

 

(b)          in
the case of any of the events described in paragraph (i) of the definition of Event of Loss above (other than an actual total loss),
upon the date of occurrence of such destruction, damage or rendering unfit;

 

(c)          in
the case of any of the events described in paragraph (ii) of the definition of Event of Loss above (other than an actual total
loss), the date and time at which either a total loss is subsequently admitted by the insurers or a competent court or arbitration
tribunal issues a judgment to the effect that a total loss has occurred;

 

(d)          in
the case of any of the events referred to in paragraph (iii) of the definition of Event of Loss above, upon the occurrence thereof;
and

 

(e)          in
the case of any of the events referred to in paragraphs (iv), (v) and (vi) of the definition of Event of Loss above, upon the expiration
of the period of time specified therein.

 

“Expenses”
means any and all liabilities, obligations, losses, damages, settlements, penalties, claims, actions, suits, reasonable costs,
reasonable expenses and disbursements (including, without limitation, reasonable fees and disbursements of legal counsel, accountants,
appraisers, inspectors or other professionals, and costs of investigation).

 

“FAA”
means the Federal Aviation Administration of the United States of America and any successor Government Body or other Person who
shall from time to time be vested with the control and supervision of, or have jurisdiction over, the registration, airworthiness
and operation of aircraft or other matters relating to civil aviation in the United States of America.

 

“Federal
Funds Rate” means a fluctuating interest rate per annum in effect from time to time, which rate per annum shall at all
times be equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding
Business Day) by the Federal Reserve Bank of New York, or if such rate is not so published for any day that is a Business Day,
the average of the quotations for such day for such transactions received by WTC from three Federal funds brokers of recognized
standing selected by it.

 

    	 	A-11	 

     

    

  

“Final
Maturity Date” means, with respect to each Equipment Note, the final scheduled Payment Date applicable to such Equipment
Note (or if such day is not a Business Day, the next succeeding Business Day).

 

“Financial
Indebtedness” of any Person shall mean, on any date, all indebtedness of such Person as of such date, and shall include
the following: (i) all indebtedness of such Person for borrowed money; (ii) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments; (iii) all obligations of such Person to pay the deferred purchase price of property
or services other than in the ordinary course of business; (iv) all obligations of such Person under finance or capital leases
which would be shown as an obligation in a balance sheet prepared in accordance with IFRS; (v) all indebtedness of others in respect
of obligations referred to in (i) to (iv) above, guaranteed in any manner, directly or indirectly, by such Person and (vi) all
net reimbursement obligations of such Person in respect of letters of credit, foreign currency sale agreements and bankers' acceptances,
except such as are obtained by such Person to secure performance of obligations (other than for borrowed money or similar obligations).
Notwithstanding the foregoing, intercompany debt and trade payables incurred in the ordinary course of business shall not constitute
“Financial Indebtedness”.

 

“Financing
Agreements” means, collectively, the Participation Agreement, the Indenture, each Indenture Supplement, the Lease, the
Aircraft Security Documents, the Manufacturer’s Consent and the Equipment Notes.

 

“Government”
means the government of any of Canada, Cayman Islands, Chile, France, Germany, Japan, The Netherlands, Sweden, Switzerland, the
United Kingdom or the United States and any instrumentality or agency thereof.

 

“Government
Body” means (whether having a distinct legal personality or not) any nation or government, any state or other political
subdivision thereof or local jurisdiction therein, any agency, authority, instrumentality, board commission, department, division,
organ, regulatory body, court, central bank or other entity, however constituted, exercising executive, legislative, judicial,
taxing, regulatory, supervisory or administrative functions of or pertaining to government, any securities exchange and any self
regulatory organization.

 

“Government
of Registry” shall mean Chile or any Permitted Jurisdiction in which the Aircraft is registered as permitted under Section
7(b) of the Lease and any agency or instrumentality thereof.

 

“Guarantor” means each Related Owner
under the Note Guarantee.

 

“IFRS” shall mean the International Financial Reporting Standards.

 

    	 	A-12	 

     

    

  

“Indemnitee”
has the meaning specified in Section 4.03(a) of the Participation Agreement.

 

“Indenture”
means that certain Indenture and Security Agreement (6698), dated as of the Closing Date, between the Owner and the Loan Trustee,
as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms, including supplementation
by an Indenture Supplement pursuant to the Indenture.

 

“Indenture
Event of Default” has the meaning specified in Section 4.01 of the Indenture.

 

“Indenture Indemnitee” means (i) the Loan Trustee, (ii) WTC, (iii) each separate
or successor or additional trustee appointed pursuant to Section 8.02 of the Indenture, (iv) so long as it holds any Equipment
Notes as agent and trustee of any Pass Through Trustee, the Subordination Agent, (v) each Liquidity Provider, (vi)
so long as it is the holder of any Equipment Notes, each Pass Through Trustee, (vii) the Paying Agent, (viii) the
Escrow Agent, and (ix) any of their respective successors and permitted assigns in such capacities, directors, officers,
employees, agents and servants. No holder of a Pass Through Certificate in its capacity as such shall be an Indenture Indemnitee.

 

“Indenture
Supplement” means a supplement to the Indenture, substantially in the form of Exhibit A to the Indenture, which shall
particularly describe the Aircraft and any Replacement Engine included in the property subject to the Lien of the Indenture.

 

“Independent
Director” means one of the directors of the Owner, who shall be a Person who, at any time during his/her/its tenure as
director or during the five years preceding his/her/its appointment as director (i) does not have and is not committed to acquire
any direct or indirect financial, legal or beneficial interest in the Owner or LATAM and is not a creditor, supplier, family member,
manager, contractor, shareholder, director, officer, employee, subsidiary or Affiliate of the Owner or LATAM; (ii) is not connected
with the Owner, LATAM or any creditor, supplier, family member, manager, contractor, shareholder, director, officer, employee,
subsidiary or Affiliate of LATAM; (iii) is not, and has not been on the board of directors of and does not control (directly, indirectly
or otherwise) LATAM or any of its Affiliates (except in the capacity of independent director of LATAM), and provided that,
for the avoidance of doubt, any director provided to the Owner by MaplesFS Limited or any of its Affiliates from time to time pursuant
to the terms of the Administration Agreement, Directors Services Agreement or any other services agreement with such entity shall
be an Independent Director for the purposes of this definition and the Articles of Association of the Owner, and provided further
that for the avoidance of doubt, in circumstances where two or more directors are provided by Maples FS Limited or any of its Affiliates
from time to time under the Administration Agreement, Directors Services Agreement or any other services agreement with such entity,
then MaplesFS Directors Limited shall be an Independent Director for the purposes of this definition.

 

    	 	A-13	 

     

    

  

“Initial
Purchaser” means, as applicable, each of the initial purchasers identified as such in the Certificate Purchase Agreement.

 

“Initial
Basic Rent Installment” shall mean the amount designated therefor in the Lease Supplement delivered on the Delivery Date.

 

“Insolvency”
or “Liquidation Proceeding” means (i) a voluntary proceeding under any Bankruptcy Law with respect to the Owner or
the Lessee; (ii) a voluntary or involuntary appointment of a receiver, trustee, custodian, sequestrator, conservator or similar
official for the Owner or the Lessee or for a substantial part of the property of the assets of the Owner or the Lessee; (iii)
any voluntary or involuntary winding up or liquidation of the Owner or the Lessee; or (iv) a general assignment for the benefit
of creditors of the Owner or the Lessee.

 

“Insurance
Proceeds” means any and all proceeds realized from the Insurances (other than third party liability insurances).

 

“Insurances” has the meaning given
to such term in Section 10(a) of the Lease.

 

“Interchange Counterparty”
has the meaning set forth in Section 7(e)(v) of the Lease Agreement.

 

“Intercreditor
Agreement” means that certain Intercreditor Agreement, dated as of the Issuance Date, among the Pass Through Trustees,
the Liquidity Providers and the Subordination Agent, as the same may be amended, supplemented or otherwise modified from time to
time in accordance with its terms; provided that, for purposes of any obligations of LATAM or the Owner, no amendment, modification
or supplement to, or substitution or replacement of, such Intercreditor Agreement shall be effective unless consented to by LATAM.

 

“Interest
Rate” means, with respect to any period, the weighted average interest rate per annum during such period borne by the
outstanding Equipment Notes, excluding any interest payable at the Past Due Rate.

 

“Issuance Date” means May 29, 2015.

 

“LATAM”
has the meaning set forth in the first paragraph of the Participation Agreement.

 

    	 	A-14	 

     

    

  

“Lease”
or “Lease Agreement” means the Lease Agreement MSN 6698 dated as of the Closing Date between the Owner, as lessor,
and LATAM, as lessee, substantially in the form of Exhibit F to the Note Purchase Agreement, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with its terms, including as supplemented by the Lease Supplement.

 

“Lease
Event of Default” means any “Lease Event of Default” as defined under the Lease.

 

“Lease
Supplement” means the Lease Supplement substantially in the form of Exhibit I to the Lease, which shall particularly
describe the Aircraft subject to the Lease.

 

“Leasing
Affiliate” means a subsidiary of the Lessee or any other Person controlled by the Lessee, in each case that is, if the
relevant Person is the operator or proposed operator of the Aircraft, a commercial air carrier possessing at all times while the
Aircraft is operated by such person, all necessary authorizations (including, without limitation, those required to operate the
Aircraft), consents and licenses; provided that in no event shall any Person be a Leasing Affiliate if such Person is, at the time
of the proposed entry into of any sublease or interchange: (i) insolvent, or (ii) located in a country subject to EU or UN sanctions.
For the purposes of this definition, the Lessee shall be deemed to “control” another Person if:

 

(a)          Lessee
possesses, directly or indirectly, the power to direct the management or policies of such other Person whether through:

 

(i)          the
ownership of voting rights;

 

(ii)         control
of the board (including control of its composition) of the other Person;

 

(iii)        indirect
control of (i) and (ii); or

 

(b)          such
other Person would, under relevant accounting principles, be consolidated or required to be consolidated for accounting purposes
with the Lessee.

 

“Lessee”
has the meaning set forth in the first sentence of the Participation Agreement.

 

“Lessee
Bankruptcy Event” means the occurrence and continuation of a Lease Event of Default under any of clauses 13(g), (h),
(i), (j) or (k) of the Lease.

 

“Lessee
Power of Attorney” means each power of attorney executed by the Lessee in favor of the Loan Trustee in connection with
the repossession, re-export and deregistration of each Aircraft in form and substance satisfactory to the Loan Trustee.

 

“Lessor” means the Owner as lessor
under the Lease.

 

    	 	A-15	 

     

    

  

“Lessor
Parent” means the owner from time to time of the issued share capital of the Lessor, being:

 

(a)          as
at the date of this Lease Agreement, the Lessee; or

 

(b)          subject
to paragraph (c) below and at any time following the exercise by the Lessee of its option under the Put Option Agreement with respect
to the Lessor to transfer, or procure the transfer of, its holding of the issued share capital of the Lessor (which option may
only be exercised once), the person nominated as the transferee of such holding of the issued share capital of the Lessor; or

 

(c)          at
any time following the exercise of the option under the Call Option Agreement with respect to the Lessor by the Subordination Agent
(in the capacity therein described) pursuant to its terms, the Subordination Agent (in the capacity therein described) or its nominee.

 

“Lessor
Power of Attorney” means each power of attorney executed by the Owner in favor of the Loan Trustee in connection with
the repossession, re-export and deregistration of each Aircraft in form and substance satisfactory to the Loan Trustee.

 

“Lien”
means as applied to the property or assets (or the income or profits therefrom) of any Person (in each case, whether the same is
consensual or non- consensual or arises by contract, operation of law, legal process or otherwise), any lien, mortgage, hypothec,
encumbrance, pledge, attachment, levy, charge, lease, encumbrance, right of seizure or detention, inscription on a public record,
claim, prior claim, right of others or security interest of any kind, including any thereof arising under any conditional sale
or other title retention agreement and any agreement to give any thereof in respect of any property or assets of such Person, or
upon the income or profits therefrom.

 

“Liquidity
Facilities” means, collectively, the Class A Liquidity Facility and the Class B Liquidity Facility.

 

“Liquidity
Providers” means, collectively, the Class A Liquidity Provider and the Class B Liquidity Provider.

 

“Loan
Trustee” has the meaning specified in the introductory paragraph of the Indenture.

 

“Loan Trustee Liens” means any Lien attributable to WTC or the Loan Trustee with respect to
the Aircraft, any interest therein or any other portion of the Collateral arising as a result of (i) claims against WTC or the
Loan Trustee not related to its interest in the Aircraft or the administration of the Collateral pursuant to the Indenture, (ii)
acts of WTC or the Loan Trustee not permitted by, or the failure of WTC or the Loan Trustee to take any action required by, the
Financing Agreements or the Pass Through Documents, (iii) claims against WTC or the Loan Trustee relating to Taxes or claims for
Expenses that are excluded from the indemnification provided by Section 4.03 or 4.04 of the Participation Agreement pursuant to
said Section 4.03 or 4.04 or (iv) claims against WTC or the Loan Trustee arising out of the transfer by any such party of
all or any portion of its interest in the Aircraft, the Collateral, the Financing Agreements or the Pass Through Documents, except
while an Indenture Event of Default is continuing and prior to the time that the Loan Trustee has received all amounts due to it
pursuant to the Indenture.

 

    	 	A-16	 

     

    

  

“Local
Mortgage” means (i) the Chilean law aircraft mortgage dated on or about the date of the Delivery granted by the Lessor
in favor of the Loan Trustee, substantially in the form of Exhibit D to the Note Purchase Agreement or (ii) if the Aircraft is
subleased to, or operated by, a Permitted Sublessee and is registered in accordance with Section 7(b) of the Lease, an aircraft
mortgage governed by the laws of the applicable Permitted Jurisdiction granted by the Lessor in favor of the Loan Trustee dated
on or about the date of such sublease, in each case as the same may be amended, supplemented or otherwise modified from time to
time in accordance with its terms.

 

“Long-Term Rating” has the meaning
specified in the Intercreditor Agreement.

 

“Loss Payment Date” means
the earlier of (i) the date on which the Lessee, the Owner or the Loan Trustee received the insurance proceeds pursuant to Section
10 of the Lease and (ii) sixty (60) days after the occurrence of an Event of Loss.

 

“Majority
in Interest of Noteholders” means, as of a particular date of determination and subject to Section 2.16 of the Indenture,
the holders of at least a majority in aggregate unpaid principal amount of all Equipment Notes outstanding as of such date (excluding
any Equipment Notes held by LATAM, the Owner or any Affiliate thereof, it being understood that a Pass Through Trustee shall be
considered an Affiliate of the Owner as long as more than 50% in the aggregate face amount of Pass Through Certificates issued
by the corresponding Pass Through Trust are held by LATAM, the Owner or an Affiliate thereof or a Pass Through Trustee is otherwise
under the control of LATAM, the Owner or such Affiliate (unless all Equipment Notes then outstanding are held by LATAM, the Owner
or any Affiliate thereof, or any combination thereof, including the Pass Through Trustees which are considered Affiliates of LATAM
or the Owner pursuant hereto)); provided that for the purposes of directing any action or casting any vote or giving any
consent, waiver or instruction hereunder, any Noteholder of an Equipment Note or Equipment Notes may allocate, in such Noteholder’s
sole discretion, any fractional portion of the principal amount of such Equipment Note or Equipment Notes in favor of or in opposition
to any such action, vote, consent, waiver or instruction.

 

    	 	A-17	 

     

    

  

“Make–Whole Amount” means, with respect to any Equipment Note, the amount (as determined
by an independent investment banker selected by LATAM), if any, by which (i) the present value of the remaining scheduled payments
of principal and interest from the redemption date to maturity of such Equipment Note computed by discounting each such payment
on a semiannual basis from its respective Payment Date (assuming a 360-day year of twelve 30 day months) using a discount rate
equal to the Treasury Yield plus the Make-Whole Spread exceeds (ii) the outstanding principal amount of such Equipment Note
plus accrued but unpaid interest thereon to the date of redemption. For purposes of determining the Make-Whole Amount, “Treasury
Yield” means, at the date of determination, the interest rate (expressed as a semiannual equivalent and as a decimal
rounded to the number of decimal places as appears in the Debt Rate of such Equipment Note and, in the case of United States Treasury
bills, converted to a bond equivalent yield) determined to be the per annum rate equal to the semiannual yield to maturity for
United States Treasury securities maturing on the Average Life Date and trading in the public securities market either as determined
by interpolation between the most recent weekly average constant maturity, non-inflation-indexed series yield to maturity for two
series of United States Treasury securities, trading in the public securities markets, (A) one maturing as close as possible
to, but earlier than, the Average Life Date and (B) the other maturing as close as possible to, but later than, the Average
Life Date, in each case as reported in the most recent H.15(519) or, if a weekly average constant maturity, non- inflation-indexed
series yield to maturity for United States Treasury securities maturing on the Average Life Date is reported in the most recent
H.15(519), such weekly average yield to maturity as reported in such H.15(519). “H.15(519)” means the weekly
statistical release designated as such, or any successor publication, published by the Board of Governors of the Federal Reserve
System. The date of determination of a Make-Whole Amount shall be the third Business Day prior to the applicable redemption date
and the “most recent H.15(519)” means the latest H.15(519) published prior to the close of business on the third
Business Day prior to the applicable redemption date.

 

“Make-Whole
Spread” means, with respect to any Series of Equipment Notes, the percentage specified for the applicable Series as such
in Schedule I to the Indenture, as, in the case of any Additional Series of Equipment Notes issued after the Closing Date,
such Schedule I may be amended in connection with such issuance.

 

“Manuals
and Technical Records” means, with respect to the Aircraft or any Engine, all logs, logbooks, manuals and data, and inspection,
modification and overhaul records (including all job cards) and other records required to be maintained under applicable rules
and regulations of the Aviation Authority and if any of the same are not in the English language, certified English translations
thereof.

 

“Manufacturer”
means Airbus S.A.S., a société par actions simplifiée organized and existing under the laws of the
Republic of France.

 

    	 	A-18	 

     

    

  

“Material
Adverse Effect” means, in relation to any Person, as the context may require, (a) a material adverse effect upon the
business, operations or condition (financial or otherwise) of such Person or upon the ability of such Person to perform its obligations
under the Financing Agreements, (b) a material adverse effect on the validity or enforceability of any of the Financing Agreements,
(c) a material adverse effect on the rights or remedies of any Secured Party under any of the Financing Agreements or of the Owner
or any Secured Party under any manufacturer's warranty with respect to the Aircraft or any Engine or (d) any event or circumstance
which adversely affects the Airframe or any Engine or such Person's interest therein or involves any risk of the sale, seizure,
detention or forfeiture of the Airframe or any Engine or any other part of the Aircraft.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Note
Guarantee” means the Note Guarantee dated as of the Closing Date and issued by each Related Owner for the benefit of
the Loan Trustee, substantially in the form of Exhibit O to the Note Purchase Agreement, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with its terms.

 

“Note
Value” shall mean, as of any particular date of computation, an amount calculated in accordance with Schedule 2 to the
Lease Supplement.

 

“Noteholder”
means any Person in whose name an Equipment Note is registered on the Equipment Note Register (including, for so long as it is
the registered holder of any Equipment Notes, the Subordination Agent on behalf of the Pass Through Trustees pursuant to the provisions
of the Intercreditor Agreement).

 

“Noteholder
Liens” means any Lien attributable to any Noteholder on or against the Aircraft, any interest therein or any other portion
of the Collateral, arising out of any claim against such Noteholder that is not related to the Financing Agreements or Pass Through
Documents, or out of any act or omission of such Noteholder that is not related to the transactions contemplated by, or that constitutes
a breach by such Noteholder of its obligations under, the Financing Agreements or the Pass Through Documents.

 

“Note
Purchase Agreement” means the Note Purchase Agreement, dated as of the Issuance Date, among LATAM, the Owner, each Related
Owner, the Subordination Agent, the Escrow Agent, the Paying Agent, and the Pass Through Trustee under each Pass Through Trust
Agreement providing for, among other things, the issuance and sale of certain equipment notes, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with its terms.

 

“Notice
of Assignment of Insurances” means, with respect to the Assignment of Insurances, each notice of assignment of insurances
from the Lessee and the Loan Trustee to the insurer on or about the date of the Indenture substantially in the form of Exhibit
A to the Assignment of Insurances.

 

    	 	A-19	 

     

    

  

“NY UCC” means UCC as in effect
in the State of New York.

 

“Obligors”
means each of the Lessor Parent, the Owner, the Lessee and the Guarantors and “Obligor”" means the Lessor Parent,
the Owner, the Lessee or any Guarantor, as the context may require.

 

“Operative
Agreements” has the meaning set forth in Annex A to the Note Purchase Agreement.

 

“Operative
Indentures” means, as of any date, each “Indenture” (as such term is defined in the Note Purchase Agreement),
including the Indenture, whether or not any other “Indenture” shall have been entered into before or after the date
of the Indenture, but only if as of such date all “Equipment Notes” (as defined in each such “Indenture”)
are held by the “Subordination Agent” under the “Intercreditor Agreement”, as such terms are defined in
each such “Indenture”.

 

“Other
Party Liens” means any Lien attributable to any Pass Through Trustee (other than in its capacity as Noteholder), the
Subordination Agent (other than in its capacity as Noteholder) or any Liquidity Provider on or against the Aircraft, any interest
therein, or any other portion of the Collateral arising out of any claim against such party that is not related to the Financing
Agreements or the Pass Through Documents, or out of any act or omission of such party that is not related to the transactions contemplated
by, or that constitutes a breach by such party of its obligations under, the Financing Agreements or the Pass Through Documents.

 

“Owner”
means Parina Leasing Limited, an exempted company with limited liability incorporated in the Cayman Islands.

 

“Participation
Agreement” has the meaning set forth under the definition of “Agreement”.

 

“Parts”
means with respect to the Airframe or any Engine, all appliances, components, parts, instruments (including avionics), appurtenances,
accessories, furnishings and other equipment of whatever nature (other than complete Engines, or engines), that may from time to
time be incorporated or installed in or attached to the Airframe or any Engine or removed from the Airframe or such Engine so long
as the Lessor's interest therein shall continue and any Replacement Part which may from time to time be substituted for a Part.

 

“Pass
Through Certificates” means the pass through certificates issued by any Pass Through Trust (and any other pass through
certificates for which such pass through certificates may be exchanged).

 

    	 	A-20	 

     

    

  

“Pass
Through Documents” means each Pass Through Trust Agreement, the Note Purchase Agreement, each Escrow Agreement, each
Deposit Agreement, the Intercreditor Agreement and each Liquidity Facility.

 

“Pass
Through Trust” means each of the two separate grantor trusts that have been or will be created pursuant to the Pass Through
Trust Agreements to facilitate certain of the transactions contemplated by the Financing Agreements.

 

“Pass
Through Trust Agreement” means each of the two separate Trust Supplements relating to the Pass Through Trusts, together
in each case with the Basic Pass Through Trust Agreement, as the same may be amended, supplemented or otherwise modified from time
to time in accordance with its terms.

 

“Pass
Through Trustee” means the trustee under each Pass Through Trust Agreement, together with any successor in interest and
any successor or other trustee appointed as provided in such Pass Through Trust Agreement.

 

“Past Due Rate” means the lesser of (a) with respect to (i) any payment made to a Noteholder
under any Series of Equipment Notes, the Debt Rate then applicable to such Series plus 1% and (ii) any other payment made
under any Financing Agreement to any other Person, the Debt Rate plus 1% (computed on the basis of a year of 360 days comprised
of twelve 30-day months) and (b) the maximum rate permitted by applicable law.

 

“Paying
Agent” means WTC, as paying agent under each Escrow Agreement, and any successor agent thereto.

 

“Payment
Date” means, for any Equipment Note, each February 15th, May 15th,
August 15th and November 15th, commencing with May 15th
2016.

 

“Payment
Default” means the occurrence of an event that would give rise to an Indenture Event of Default under Section 4.01(a)
of the Indenture upon the giving of notice or the passing of time or both.

 

    	 	A-21	 

     

    

  

“Permitted
Investments” means each of (a) direct obligations of the United States and agencies thereof having maturities
no later than 365 days following the date of such investment; (b) obligations fully guaranteed by the United States having
maturities no later than 365 days following the date of such investment; (c) certificates of deposit issued by, or bankers’
acceptances of, or time deposits with, any bank, trust company or national banking association incorporated or doing business
under the laws of the United States or one of the states thereof having combined capital and surplus and retained earnings of
at least $100,000,000 and having a Long-Term Rating of A, its equivalent or better issued by S&P or A2 by Moody’s (or,
if neither such organization then rates such institutions, by any nationally recognized rating organization in the United States),
having maturities no later than 365 days following the date of such investment; (d) commercial paper of any holding company
of a bank, trust company or national banking association described in clause (c), having maturities no later than 365 days following
the date of such investment; (e) commercial paper of companies having a Short-Term Rating assigned to such commercial paper
by either Moody’s or S&P (or, if neither such organization then rates such commercial paper, by any nationally recognized
rating organization in the United States) equal to the highest (in case of Moody’s) or either of the two highest (in case
of S&P) ratings assigned by such organization, having maturities no later than 365 days following the date of such investment;
(f) Dollar-denominated certificates of deposit issued by, or time deposits with, the European subsidiaries of (i) any bank, trust
company or national banking association described in clause (c), or (ii) any other bank or financial institution described
in clause (g), (h) or (j) below, having maturities no later than 365 days following the date of such investment; (g) United
States-issued Yankee certificates of deposit issued by, or bankers’ acceptances of, or commercial paper issued by, any bank
having combined capital and surplus and retained earnings of at least $100,000,000 and headquartered in Canada, Japan, the United
Kingdom, France, Germany, Switzerland or The Netherlands and having a Long-Term Rating of A, its equivalent or better issued by
S&P or A2, its equivalent or better issued by Moody’s (or, if neither such organization then rates such institutions,
by any nationally recognized rating organization in the United States), having maturities no later than 365 days following the
date of such investment; (h) Dollar-denominated time deposits with any Canadian bank having a combined capital and surplus
and retained earnings of at least $100,000,000 and having a Long-Term Rating of A, its equivalent or better issued by S&P
or A2, its equivalent or better issued by Moody’s (or, if neither such organization then rates such institutions, by any
nationally recognized rating organization in the United States), having maturities no later than 365 days following the date of
such investment; (i) Canadian Treasury Bills fully hedged to Dollars having maturities no later than 365 days following the date
of such investment; (j) repurchase agreements with any financial institution having combined capital and surplus and retained
earnings of at least $100,000,000 collateralized by transfer of possession of any of the obligations described in clauses (a)
through (i) above; and (k) such other investments approved in writing by the Loan Trustee; provided that the instruments
described in the foregoing clauses shall have a maturity no later than the earliest date when such investments may be required
for distribution. The bank acting as the Pass Through Trustee or the Loan Trustee is hereby authorized, in making or disposing
of any investment described herein, to deal with itself (in its individual capacity) or with any one or more of its affiliates,
whether it or such affiliate is acting as an agent of the Pass Through Trustee or the Loan Trustee or for any third person or
dealing as principal for its own account.

 

“Permitted Jurisdiction” shall
mean any jurisdiction listed in Annex B to the Lease.

 

    	 	A-22	 

     

    

   

“Permitted
Lien” means (i) the respective rights of each of the parties to the Financing Agreements as provided in the Financing
Agreements; (ii) the rights of the Lessee and other Persons under leases and other agreements and arrangements to the extent permitted
by the terms of Sections 7 and 8 of the Lease; (iii) Liens for fees or charges of any airport or air navigation authority not yet
due and payable by the Owner or the Lessee or which are being contested in good faith, on reasonable grounds and by appropriate
proceedings so long as such Liens do not involve any material risk of the sale, seizure, forfeiture, detention or loss of the Aircraft,
any Part thereof, title thereto, or any interest therein or the use thereof (any of which a "Lien Loss"); (iv)
Liens for Taxes payable by the Owner or the Lessee either not yet overdue or being contested in good faith by appropriate proceedings
that do not involve any material risk of Lien Loss and that do not involve any potential for criminal liability, and in the case
of such proceedings so long as adequate reserves are maintained in respect of such Taxes in accordance with applicable accounting
principles; (v) materialmen's, mechanics', workmen's, repairmen's, employees' or other like Liens on the Aircraft, the Airframe
or any Engine arising in the ordinary course of business of the Lessee for amounts the payment of which is either not yet due or
which are being contested in good faith by appropriate proceedings that do not involve any material likelihood of Lien Loss and
in the case of such proceedings so long as adequate reserves are maintained by the Lessee in respect of such amounts in accordance
with applicable accounting principles; (vi) Liens arising out of judgments or awards against the Owner or the Lessee with respect
to which at the time an appeal or proceeding for review is being prosecuted in good faith by appropriate proceedings that do not
involve any material likelihood of Lien Loss and in the case of such proceedings so long as an adequate bond to stay enforcement
is in effect, and (vii) salvage or similar rights of insurers under insurance policies maintained pursuant to and in accordance
with Section 10 of the Lease.

 

“Permitted
Owner Lien” has the meaning set forth in Section 7.01 of the Indenture.

 

“Permitted Sublessee”
has the meaning set forth in Section 7(e)(v) of the Lease.

 

“Person” means any person, including any individual,
corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, trustee, unincorporated
organization or government or any agency or political subdivision thereof.

 

“Pledge
Agreements” has the meaning set forth in Section 1.01 of the Intercreditor Agreement.

 

“Post-Delivery
Authorizations and Filings” means, with respect to a Brazilian Aircraft, the authorizations and filings set out in Section
3.01(u)(iv)(A)–(H) of the Participation Agreement.

 

    	 	A-23	 

     

    

  

“Powers
of Attorney” means collectively, the Lessee Power of Attorney and the Lessor Power of Attorney.

 

“Process
Agent” means the Process Agent set forth on Schedule IV to the Note Purchase Agreement.

 

“Purchase Agreement”
means the Purchase Agreement as described in Schedule I to the Participation Agreement.

 

“Purchase
Agreement Assignment” means (i) the Purchase Agreement Assignment dated as of the Closing Date between the Lessee and
the Owner substantially in the form of Exhibit K-2 to the Note Purchase Agreement and (ii) the Airframe Warranties Agreement dated
as of the Closing Date among Airbus S.A.S, the Owner, LATAM and the Loan Trustee, substantially in the form of Exhibit L-1 to the
Note Purchase Agreement, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its
terms.

 

“Put
Option Agreements” has the meaning set forth in Section 1.01 the Intercreditor Agreement.

 

“Rating Agencies” has the meaning
specified in the Intercreditor Agreement.

 

“Reinsurances”
shall mean any and all contracts or policies of reinsurance maintained by the Owner (or the Lessee) in respect of the Aircraft
pursuant to Section 10 of the Lease.

 

“Related
Additional Series Equipment Note” means, with respect to any particular series of Additional Series Equipment Notes and
as of any date, an “Additional Series Equipment Note,” as defined in each Related Indenture, having the same designation
(i.e., “Series C” or the like) as such Additional Series Equipment Notes, but only if as of such date it is
held by the “Subordination Agent” under the “Intercreditor Agreement,” as such terms are defined in such
Related Indenture.

 

“Related Aircraft”
means each of the eleven (11) Airbus A321-200 aircraft, two (2) Airbus A350-900 aircraft, and four (4) Boeing 787-9 aircraft referred
to in Note Purchase Agreement, excluding the Aircraft, or any of them.

 

“Related
Equipment Note” means, as of any date, an “Equipment Note” as defined in each Related Indenture, but only
if as of such date it is held by the “Subordination Agent” under the “Intercreditor Agreement”, as such
terms are defined in such Related Indenture.

 

“Related
Lease” means each lease agreement in effect from time to time with respect to a Related Aircraft, or any of them.

 

    	 	A-24	 

     

    

  

“Related
Lease Event of Default” means a “Lease Event of Default” under (and as defined in) any Related Lease.

 

“Related Lessor” means each “Lessor”
as described in a Related Lease.

 

“Related
Indemnitee Group” has the meaning specified in Section 4.03(a) of the Participation Agreement.

 

“Related Indenture” means each Operative
Indenture (other than the Indenture).

 

“Related Indenture Event of Default”
means any “Indenture Event of Default” under any Related Indenture.

 

“Related Indenture Indemnitee” means
each Related Noteholder.

 

“Related
Loan Trustee” means the “Loan Trustee” as defined in each Related Indenture.

 

“Related
Make-Whole Amount” means the “Make-Whole Amount”, as defined in each Related Indenture.

 

“Related Noteholder” means a registered
holder of a Related Equipment Note.

 

“Related Obligors” means the “Obligors”
as defined in each Related Lease, or any of them, and “Related Obligor” means any of them, as the context may require.
“Related Owner” means each “Owner” as described in a Related Indenture.

 

“Related
Participation Agreement” means any “Participation Agreement” as defined in a Related Lease, or, collectively,
each of them.

 

“Related
Secured Obligations” means, as of any date, the outstanding principal amount of the Related Equipment Notes issued under
each Related Indenture, the accrued and unpaid interest (including, to the extent permitted by applicable law, post-petition interest
and interest on any overdue amounts) due thereon in accordance with such Related Indenture as of such date, the Related Make-Whole
Amount, if any, with respect thereto due thereon in accordance with such Related Indenture as of such date, and any other amounts
payable as of such date under the “Financing Agreements” (as defined in each Related Indenture).

 

“Related
Series A Equipment Note” means, as of any date, a “Series A Equipment Note”, as defined in each Related Indenture,
but only if as of such date it is held by the “Subordination Agent” under the “Intercreditor Agreement”,
as such terms are defined in such Related Indenture.

 

    	 	A-25	 

     

    

  

“Related
Series B Equipment Note” means, as of any date, a “Series B Equipment Note”, as defined in each Related Indenture,
but only if as of such date it is held by the “Subordination Agent” under the “Intercreditor Agreement”,
as such terms are defined in such Related Indenture.

 

“Rent” shall mean
collectively, Basic Rent and Supplemental Rent. “Replacement Engine” means a CFM56-5B3/3 engine (or an engine
of the same or another manufacturer of a comparable or an improved model and suitable for installation and use on the Airframe
with the other Engine (or any other Replacement Engine being substituted simultaneously therewith)) that shall have been made subject
to the Lien of the Indenture pursuant the terms thereof and Section 7(j) or 9(b) of the Lease, together with all Parts relating
to such engine, but excluding items installed or incorporated in or attached to any such engine from time to time that are excluded
from the definition of Parts.

 

“Replacement
Liquidity Facility” has the meaning set forth in the Intercreditor Agreement.

 

“Replacement
Liquidity Provider” has the meaning set forth in the Intercreditor Agreement.

 

“Reserved Matters” means the following:

  

(a)          amalgamation,
consolidation or merger of the Owner with or into any other entity;

 

(b)          submission
to the Registrar of Companies in and for the Cayman Islands of an application to strike from the Register of Companies pursuant
to Section 156 of the Companies Law (2013 Revision) of the Cayman Islands);

 

(c)          sale
of any assets of the Owner (other than the disposition of any engine or aircraft or part thereof that is permitted under the Operative
Agreements);

 

(d)          discontinuance
of the Owner under the Statute and continuance in a jurisdiction outside the Cayman Islands;

 

(e)          institution
of any proceeding by the Owner, in relation to itself, seeking liquidation, winding-up, reorganization, arrangement, adjustment,
protection, relief or composition of its debts under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other similar official for it
or for any substantial part of its property; 

 

    	 	A-26	 

     

    

 

(f)          in
the case of any such proceeding described in paragraph (e) above being instituted against the Owner (but not instituted by the
Owner), authorizing or consenting to such proceedings (including, without limitation, the entry of an order for relief against,
or the appointment of a receiver, trustee, custodian or other similar official for it, or any substantial part of its property,
or that of any subsidiary);

 

(g)          any
proposal put to the Owner’s Members (as defined in the Companies Law (2013 Revision) of the Cayman Islands) to wind up or
terminate the corporate existence of the Owner;

 

(h)          consent
to any amendment, modification or waiver of any of the Required Terms (as defined in the Note Purchase Agreement) unless the same
has been consented to by the Subordination Agent; or

 

(i)          any
proposal put to the Owner’s Members to amend and restate the memorandum of association and articles of association of the
Owner by special resolution.

 

“Responsible
Officer” means, with respect to LATAM or the Owner, its Chairman of the Board, its President, any Senior Vice President,
the Chief Financial Officer, its General Counsel, any Vice President, the Treasurer, the Assistant Treasurer, the Secretary or
any other management employee or, in the case of the Owner, any Director or, in the case of Reserved Matters, the Independent Director
(a) whose power to take the action in question has been authorized, directly or indirectly, by the Board of Directors of
LATAM or the Owner, as the case may be (b) working directly under the supervision of its Chairman of the Board, its President,
any Senior Vice President, the Chief Financial Officer, any Vice President, the Treasurer or the Secretary and (c) whose
responsibilities include the administration of the transactions and agreements contemplated by the Participation Agreement and
the Indenture.

 

“Replacement
Part” shall mean an appliance, part, accessory, furnishing, instrument, appurtenance or other item of equipment of whatever
nature (other than complete Engines or engines) which shall have been leased under the Lease and subjected to the Lien of the Lease,
the Indenture and the Local Mortgage, in each case in compliance with the requirements thereof and of the other Financing Agreements.

 

“S&P”
means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

 

“Secured Obligations”
has the meaning specified in Section 2.06 of the Indenture.

 

    	 	A-27	 

     

    

  

“Secured
Parties” shall mean, collectively, the Loan Trustee, each Pass Through Trustee, the Subordination Agent, each Liquidity
Provider and each Noteholder (but shall not include the holder of any Pass Through Certificate) and “Secured Party”
shall mean any of them.

 

“Securities Account” has the meaning
specified in Section 3.07 of the Indenture.

 

“Securities Act” means the Securities
Act of 1933, as amended from time to time.

 

“Securities Intermediary” has the
meaning specified in Section 3.07 of the Indenture.

 

“Security
Documents” means the Pledge Agreements, the Call Option Agreement, the Indenture and the Aircraft Security Documents.

 

“Series”
means any series of Equipment Notes, including the Series A Equipment Notes, the Series B Equipment Notes, or any Additional Series
Equipment Notes.

 

“Series
A” or “Series A Equipment Notes” means Equipment Notes issued and designated as “Series A Equipment
Notes” under the Indenture, in the original principal amount and maturities as specified in Schedule I to the Indenture
under the heading “Series A Equipment Notes” and bearing interest at the Debt Rate for Series A Equipment Notes specified
in Schedule I to the Indenture.

 

“Series
B” or “Series B Equipment Notes” means Equipment Notes issued and designated as “Series B Equipment
Notes” under the Indenture, in the original principal amount and maturities as specified in Schedule I to the Indenture
under the heading “Series B Equipment Notes” and bearing interest at the Debt Rate for Series B Equipment Notes specified
in Schedule I to the Indenture.

 

“Service
Bulletin” shall mean any document issued by the Manufacturer or the Engine Manufacturer recommending an improvement,
inspection, repair or modification to the Aircraft, Airframe, any Engine or any Part.

 

“Short-Term Rating” has the meaning
specified in the Intercreditor Agreement.

 

“Sublease” means any sublease
permitted by the terms of Section 7(e)(v) of the Lease.

 

“Subordination
Agent” has the meaning specified in the introductory paragraph to the Participation Agreement.

 

“Subordination
Acknowledgment" shall mean a subordination acknowledgment with respect to the rights of any Permitted Sublessee in relation
to the Aircraft under any Permitted Sublease entered into, or to be entered into, by such Permitted Sublessee substantially in
the form of Exhibit N to the Note Purchase Agreement.

 

    	 	A-28	 

     

    

  

“Supplemental
Rent” shall mean any and all amounts, liabilities and obligations (excluding Basic Rent) that the Lessee assumes or agrees
to pay to the Owner or any other Person under the Lease, the Participation Agreement or any other Financing Agreement and (without
duplication) any amount payable by the Owner under the terms of the Indenture and the Financing Agreements (including any amounts
payable in respect of amounts contemplated in Sections 4.03, 4.04 and 4.08 of the Participation Agreement and including interest
on the Equipment Notes calculated at the Past Due Rate).

 

“Tax”
and “Taxes” mean all governmental fees (including, without limitation, license, filing and registration fees)
and all taxes (including, without limitation, franchise, excise, stamp, value added, income, gross receipts, sales, use and property
taxes), withholdings, assessments, levies, imposts, duties or charges, of any nature whatsoever, together with any related penalties,
fines, additions to tax or interest thereon imposed, withheld, levied or assessed by any country, taxing authority or governmental
subdivision thereof or therein or by any international authority, including any taxes imposed on any Person as a result of such
Person being required to collect and pay over withholding taxes.

 

“Tax Indemnitee”
means (a) the Owner, (b) WTC, WTNA, and the Loan Trustee, (c) each separate or additional trustee appointed pursuant to the Indenture,
(d) so long as it holds any Equipment Notes as agent and trustee of any Pass Through Trustee, the Subordination Agent, (e) so
long as it is the holder of any Equipment Notes, each Pass Through Trustee (as Pass Through Trustee under each of the Pass Through
Trust Agreements), (f) each Liquidity Provider, (g) each Noteholder, (h) the Escrow Agent, (i) the Paying Agent and (j) the respective
successors, assigns, agents and servants of the foregoing. No holder of a Pass Through Certificate in its capacity as such holder
shall be a Tax Indemnitee.

 

“Taxing
Authority” means (a) any federal, provincial, state or local government or other taxing authority in the United States
or Chile, (b) any other government or any political subdivision or taxing authority, (c) any international taxing authority or
(d) any territory or possession of the United States or any taxing authority thereof.

 

“Term”
means (i) the period commencing on the Closing Date to and including the final scheduled Basic Rent Payment Date, or (ii) such
shorter period that may result from any earlier termination in respect of the Lease in accordance with the terms of the Lease.

 

“Transfer”
means the transfer, sale, assignment or other conveyance of all or any interest in any property, right or interest.

 

    	 	A-29	 

     

    

  

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended from time to time.

 

“Trust
Supplements” means (i) those agreements supplemental to the Basic Pass Through Trust Agreement referred to in Schedule
III to the Participation Agreement as of the Closing Date and (ii) in the case of any Additional Series Pass Through Certificates,
if issued, whether in connection with the initial issuance of any Additional Series Equipment Notes or in connection with any subsequent
redemption of any Additional Series Equipment Notes, an agreement supplemental to the Basic Pass Through Trust Agreement pursuant
to which (a) a separate trust is created for the benefit of the holders of such Additional Series Pass Through Certificates,
(b) the issuance of such Additional Series Pass Through Certificates representing fractional undivided interests in the
Additional Series Pass Through Trust is authorized and (c) the terms of such Additional Series Pass Through Certificates
are established.

 

“UCC”
or “Uniform Commercial Code” means the Uniform Commercial Code as in effect in any applicable jurisdiction.

 

“United States”, “U.S.”
or “US” means the United States of America.

 

“Warranty
Assignments” means, collectively, the Purchase Agreement Assignment and the Engine Warranties Agreement.

 

“Warranty
Bill of Sale” means the warranty (as to title) bill of sale covering the Aircraft, executed by the Manufacturer in favor
of the Owner and specifically referring to each Engine, as well as the Airframe, constituting a part of the Aircraft.

 

“Warranty
Rights” means the Warranty Rights as described in Schedule I to the Participation Agreement.

 

“Wet
Lease” means any arrangement whereby the Owner agrees to furnish the Airframe and the Engines or engines installed thereon
to an air carrier and pursuant to which the Airframe and the Engines or engines (i) shall be operated solely by cockpit crew provided
by the Owner possessing all current certificates and licenses required by Applicable Laws, (ii) shall be maintained by the Lessee
in accordance with the normal maintenance provisions of the Lease, (iii) shall continue to be insured by the Lessee in accordance
with the terms of the Lease, and (iv) shall not be subject to any change in its state of registration.

 

“WTC”
has the meaning specified in the introductory paragraph to the Participation Agreement.

 

“WTNA”
means Wilmington Trust, National Association, a national banking association in its individual capacity.

 

    	 	A-30	 

     

    

  

Annex A, Part II

Construction

 

The definitions stated in Annex
A, Part I apply equally to both the singular and the plural forms of the terms defined.

 

All references in the Participation
Agreement, the Indenture or the Lease to designated “Articles”, “Sections”, “Subsections”,
“Schedules”, “Exhibits”, “Annexes” and other subdivisions are to the designated Article, Section,
Subsection, Schedule, Exhibit, Annex or other subdivision thereof, unless otherwise specifically stated.

 

The words “herein”,
“hereof” and “hereunder” and other words of similar import refer to the Participation Agreement, the Indenture
or the Lease, as the case may be, as a whole and not to any particular Article, Section, Subsection, Schedule, Exhibit, Annex or
other subdivision.

 

All references in the Participation
Agreement, the Indenture or the Lease, as the case may be, to a “government” are to such government and any instrumentality
or agency thereof.

 

Unless the context otherwise requires,
whenever the words “including”, “include” or “includes” are used herein, they shall be deemed
to be followed by the phrase “without limitation”.

 

All references in the Participation
Agreement, the Indenture or the Lease, as the case may be, to a Person shall include successors and permitted assigns of such Person.

   

    	 	A-31Exhibit 4.9

 

 

INDENTURE AND SECURITY AGREEMENT

 

(MSN 6698)

 

Dated as of July
29, 2015

 

between

 

PARINA LEASING LIMITED,

 

and

 

WILMINGTON TRUST COMPANY,

 

as Loan Trustee

 

 

 

*

 

One Airbus A321-200 Aircraft

Chilean Registration No. CC-BEE

 

 

     

     

    

 

Table of Contents

 

	 	 	Page
	 	 	 
	Article I DEFINITIONS	5
	 	 
	Article II THE EQUIPMENT NOTES	6
	 	 	 
	Section 2.01.	Form of Equipment Notes	6
	Section 2.02.	Issuance and Terms of Equipment Notes.	12
	Section 2.03.	Method of Payment	14
	Section 2.04.	Withholding Taxes	15
	Section 2.05.	Application of Payments	15
	Section 2.06.	Termination of Interest in Collateral	16
	Section 2.07.	Registration, Transfer and Exchange of Equipment Notes	17
	Section 2.08.	Mutilated, Destroyed, Lost or Stolen Equipment Notes	18
	Section 2.09.	Payment of Expenses on Transfer; Cancellation	18
	Section 2.10.	Mandatory Redemption of Equipment Notes	18
	Section 2.11.	Voluntary Redemption of Equipment Notes.	19
	Section 2.12.	Redemptions; Notice of Redemptions; Repurchases	20
	Section 2.13.	Subordination	21
	Section 2.14.	Certain Payments	22
	Section 2.15.	Repayment of Monies for Equipment Note Payments Held by the Loan Trustee	24
	Section 2.16.	Directions by the Subordination Agent	24
	 	 	 
	Article III RECEIPT, DISTRIBUTION AND APPLICATION OF INCOME FROM THE COLLATERAL.	25
	 	 	 
	Section 3.01.	Basic Distributions	25
	Section 3.02.	Event of Loss; Mandatory Redemption; Voluntary Redemption	26
	Section 3.03.	Payments After Indenture Event of Default	27
	Section 3.04.	Certain Payments	32
	Section 3.05.	Payments to the Owner	33
	Section 3.06.	Cooperation	33
	Section 3.07.	Securities Account	33
	 	 	 
	Article IV EVENTS OF DEFAULT; REMEDIES OF LOAN TRUSTEE	34
	 	 	 
	Section 4.01.	Events of Default	34
	Section 4.02.	Remedies	36
	Section 4.03.	Remedies Cumulative	39
	Section 4.04.	Discontinuance of Proceedings	40
	Section 4.05.	Waiver of Past Defaults	40

 

    i

     

    

 

Table of Contents 

(continued)

 

	 	 	Page
	 	 	 
	Section 4.06.	Noteholders May Not Bring Suit Except Under Certain Conditions	40
	Section 4.07.	Appointment of a Receiver	41
	 	 	 
	Article V DUTIES OF THE LOAN TRUSTEE	42
	 	 	 
	Section 5.01.	Notice of Indenture Event of Default	42
	Section 5.02.	Action upon Instructions; Certain Rights and Limitations	42
	Section 5.03.	Indemnification	43
	Section 5.04.	No Duties Except as Specified in Indenture or Instructions	43
	Section 5.05.	No Action Except under Indenture or Instructions	43
	Section 5.06.	Investment of Amounts Held by the Loan Trustee	44
	 	 	 
	Article VI THE LOAN TRUSTEE	44
	 	 	 
	Section 6.01.	Acceptance of Trusts and Duties	44
	Section 6.02.	Absence of Certain Duties	45
	Section 6.03.	No Representations or Warranties as to the Documents	45
	Section 6.04.	No Segregation of Monies; No Interest	45
	Section 6.05.	Reliance; Agents; Advice of Counsel	46
	Section 6.06.	Instructions from Noteholders	46
	 	 	 
	Article VII OPERATING COVENANTS OF THE OWNER	46
	 	 	 
	Section 7.01.	Liens	46
	Section 7.02.	Merger of Owner.	47
	Section 7.03.	Possession, Operation and Use	47
	 	 	 
	Article VIII SUCCESSOR AND ADDITIONAL TRUSTEES	47
	 	 	 
	Section 8.01.	Resignation or Removal; Appointment of Successor	47
	Section 8.02.	Appointment of Additional and Separate Trustees	49
	 	 	 
	Article IX AMENDMENTS AND WAIVERS	51
	 	 	 
	Section 9.01.	Instructions of Majority; Limitations	51
	Section 9.02.	Revocation and Effect of Consents	53
	Section 9.03.	Notation on or Exchange of Equipment Notes	53
	Section 9.04.	Trustee Protected	53
	Section 9.05.	No Consent of Individual Indenture Indemnitees Required	53
	 	 	 
	Article X MISCELLANEOUS	53
	 	 	 
	Section 10.01.	Termination of Indenture	53

 

    ii

     

    

 

Table of Contents

(continued)

 

	 	 	Page
	 	 	 
	Section 10.02.	No Legal Title to Collateral in the Noteholders	54
	Section 10.03.	Sale of Aircraft by Loan Trustee Is Binding	54
	Section 10.04.	Indenture for Benefit of Owner, Noteholders, Loan Trustee, Other Indenture Indemnitees and Related Indenture Indemnitees	54
	Section 10.05.	Notices	54
	Section 10.06.	Severability	55
	Section 10.07.	No Oral Modification or Continuing Waivers	56
	Section 10.08.	Successors and Assigns.	56
	Section 10.09.	Headings	56
	Section 10.10.	[Reserved].	56
	Section 10.11.	Voting by Noteholders	56
	Section 10.12.	U.S. Tax Treatment of the Equipment Notes	56
	Section 10.13.	The Owner’s Performance and Rights	57
	Section 10.14.	Counterparts	57
	Section 10.15.	Governing Law	57
	Section 10.16.	Confidential Information	57
	Section 10.17.	Submission to Jurisdiction	58

 

	Exhibit A	—	Form of Indenture Supplement
	Schedule I	—	Description of Equipment Notes
	Schedule II 	—	Pass Through Trust Agreement and Pass Through Trust Supplements
	Annex A	—	Definitions

 

    iii

     

    

 

INDENTURE AND SECURITY
AGREEMENT

(6698)

 

This INDENTURE AND
SECURITY AGREEMENT (6698), dated as of July 29 , 2015, is
made by and between PARINA LEASING LIMITED, an exempted company with limited liability incorporated under the laws of the Cayman
Islands (together with its successors and permitted assigns, the “Owner”), and WILMINGTON TRUST COMPANY, a Delaware
trust company, not in its individual capacity, except as expressly stated herein, but solely as Loan Trustee hereunder (together
with its permitted successors hereunder, the “Loan Trustee”).

 

WITNESSETH:

 

WHEREAS, the parties desire by this Indenture (such term and other capitalized
terms used herein without definition being defined as provided in Article I), among other things, to provide for (i) the issuance
by the Owner of the Equipment Notes specified on Schedule I hereto and Additional Series and (ii) the assignment,
mortgage and pledge by the Owner to the Loan Trustee, as part of the Collateral hereunder, among other things, of all of the Owner’s
estate, right, title and interest in and to the Aircraft, as security for, among other things, the Owner’s obligations to
the Loan Trustee, for the equal and proportionate benefit and security of the Noteholders, the Indenture Indemnitees and the Related
Indenture Indemnitees, subject to Section 2.13 and Article III;

 

WHEREAS, all things
have been done to make the Equipment Notes of the Series listed on Schedule I hereto (as, in the case of any Additional
Series Equipment Notes issued after the Closing Date, such Schedule I may be amended in connection with such issuance), when executed
by the Owner and authenticated and delivered by the Loan Trustee hereunder, the valid, binding and enforceable obligations of the
Owner; and

 

WHEREAS, all things
necessary to make this Indenture a legal, valid and binding obligation of the Owner for the uses and purposes herein set forth,
in accordance with its terms, have been done and performed and have occurred;

 

GRANTING CLAUSE

 

NOW, THEREFORE, (x) to secure (i) the prompt and complete payment (whether
at stated maturity, by acceleration or otherwise) of principal of, interest on (including interest on any overdue amounts), and
Make-Whole Amount, if any, with respect to, and all other amounts due under, the Equipment Notes, (ii) all other amounts
payable by the Owner and Lessee under the Financing Agreements and (iii) the performance and observance by the Owner of
all the agreements and covenants to be performed or observed by the Owner for the benefit of the Noteholders and the Indenture
Indemnitees contained in the Financing Agreements, and (y) to secure the Related Secured Obligations, and in consideration
of the premises and of the covenants contained in the Financing Agreements and the Related Indentures, and for other good and valuable
consideration given by the Noteholders, the Indenture Indemnitees and the Related Indenture Indemnitees to the Owner at or before
the Closing Date, the receipt and adequacy of which are hereby acknowledged, the Owner does hereby grant, bargain, sell, convey,
transfer, mortgage, assign, pledge and confirm unto the Loan Trustee and its successors in trust and permitted assigns, for the
security and benefit of the Noteholders, the Indenture Indemnitees and the Related Indenture Indemnitees, a first priority security
interest in, and mortgage lien on, all estate, right, title and interest of the Owner in, to and under, all and singular, the following
described properties, rights, interests and privileges, whether now owned or hereafter acquired (which, collectively, together
with all property hereafter specifically subject to the Lien of this Indenture by the terms hereof or any supplement hereto, are
included within, and are referred to as, the “Collateral”):

 

     

     

    

 

(1)         the
Aircraft, including the Airframe and the Engines, whether or not any such Engine may from time to time be installed on the Airframe
or any other airframe or any other aircraft, and any and all Parts relating thereto, and, to the extent provided herein, all substitutions
and replacements of, and additions, improvements, accessions and accumulations to, the Aircraft, including the Airframe, the Engines
and any and all Parts (in each case other than any substitutions, replacements, additions, improvements, accessions and accumulations
that constitute items excluded from the definition of Parts by clauses (b), (c) and (d) thereof) relating thereto (such Airframe
and Engines as more particularly described in the Indenture Supplement executed and delivered with respect to the Aircraft on the
Closing Date or with respect to any substitutions or replacements therefor), and together with all flight records, logs, manuals,
maintenance data and inspection, modification and overhaul records at any time required to be maintained with respect to the Aircraft
in accordance with the rules and regulations of the applicable Aviation Authority;

 

(2)         all
right, title, interest, claims and demands of the Owner, as lessor, in, to and under the Lease, together with all rights, powers,
privileges, options and other benefits of the Owner as lessor under the Lease, including the immediate and continuing right to
receive and collect all Rent, insurance proceeds, condemnation awards and other payments, tenders and security now or hereafter
payable to or receivable by the Owner under the Lease but excluding all proceeds of, and any rights under, any insurance maintained
by the Owner and not required, or in excess of that required, under Section 10 of the Lease, and the right to make all waivers
and agreements, to give and receive copies of all notices and other instruments or communications, to accept surrender or redelivery
of the Aircraft or any part thereof, as well as all the rights, powers and remedies on the part of the Owner, as lessor, under
the Lease, to take such action upon the occurrence of a Lease Event of Default thereunder, including the commencement, conduct
and consummation of legal, administrative or other proceedings, as shall be permitted by the Lease or by applicable law, and to
do any and all other things whatsoever which the Owner or any lessor is or may be entitled to do under or in respect of the Lease
and any right to restitution from LATAM, as lessee, or any other Person in respect of any determination of invalidity of the Lease;

 

     2

     

    

 

(3)         subject
to the Warranty Assignments, the Warranty Rights, together with all rights, powers, privileges, options and other benefits of the
Owner in respect of such Warranty Rights;

 

(4)         all
requisition proceeds with respect to the Aircraft, the Airframe, any Engine or any Part thereof, and all insurance proceeds with
respect to the Aircraft, the Airframe, any Engine or any Part thereof;

 

(5)         all
moneys and securities held by the Loan Trustee pursuant to subclause (ix) of clause “third” of Section 3.03, all rents,
revenues and other proceeds collected by the Loan Trustee pursuant to Section 4.02(a), all moneys and securities from time to time
paid or deposited or required to be paid or deposited to or with the Loan Trustee by or for the account of the Owner pursuant to
any term of any Financing Agreement and held or required to be held by the Loan Trustee hereunder or thereunder, including the
Securities Account and all monies and securities deposited into the Securities Account; and

 

(6)         all
proceeds of the foregoing;

 

PROVIDED, HOWEVER,
that notwithstanding any of the foregoing provisions, so long as no Indenture Event of Default shall have occurred and be continuing,
Loan Trustee shall not take or cause to be taken any action contrary to Lessee’s right under the Lease to quiet enjoyment
of the Airframe and Engines, and to possess, use, retain and control the Airframe and Engines and all revenues, income and profits
derived therefrom;

 

TO HAVE AND TO HOLD
all and singular the aforesaid property unto the Loan Trustee, and its successors and permitted assigns, in trust for the equal
and proportionate benefit and security of the Noteholders, the Indenture Indemnitees and the Related Indenture Indemnitees, except
as otherwise provided in this Indenture, including Section 2.13 and Article III, without any priority of any one Equipment Note
over any other, or any Related Equipment Note over any other, by reason of priority of time of issue, sale, negotiation, date of
maturity thereof or otherwise for any reason whatsoever, and for the uses and purposes and in all cases and as to all property
specified in paragraphs (1) through (6) inclusive above, subject to the terms and provisions set forth in this Indenture.

 

     3

     

    

 

It is expressly agreed
that notwithstanding anything herein to the contrary, the Owner shall remain liable under the Purchase Agreement and the Lease
to perform all of its obligations thereunder, and, except to the extent expressly provided in any Financing Agreement, none of
any Noteholder, the Loan Trustee, any other Indenture Indemnitee or any Related Indenture Indemnitee shall be required or obligated
in any manner to perform or fulfill any obligations of the Owner under or pursuant to any Financing Agreement, or to have any obligation
or liability under the Purchase Agreement by reason of or arising out of the assignment hereunder, or to make any inquiry as to
the nature or sufficiency of any payment received by it, or present or file any claim or take any action to collect or enforce
the payment of any amount that may have been assigned to it or to which it may be entitled at any time or times.

 

The Owner does hereby
irrevocably constitute the Loan Trustee the true and lawful attorney of the Owner (which appointment is coupled with an interest)
with full power (in the name of the Owner or otherwise) to ask for, require, demand and receive any and all monies and claims for
monies (in each case including insurance and requisition proceeds) due and to become due to the Owner under or arising out of the
Lease, to enforce directly in the name of the Loan Trustee, any other right of the Owner under the Lease, and all other property
which now or hereafter constitutes part of the Collateral, to endorse any checks or other instruments or orders in connection therewith
and to file any claims or to take any action or to institute any proceedings which the Loan Trustee may deem to be necessary or
advisable in the premises. The Owner agrees that, promptly upon receipt thereof, to the extent required by the Financing Agreements,
it will transfer to the Loan Trustee any and all monies from time to time received by the Owner constituting part of the Collateral,
for distribution by the Loan Trustee pursuant to this Indenture.

 

The Owner does hereby
warrant and represent that it has not sold, assigned or pledged, and hereby covenants and agrees that it will not sell, assign
or pledge, so long as this Indenture shall remain in effect and the Lien hereof shall not have been released pursuant to the provisions
hereof, any of its estate, right, title or interest hereby assigned, to any Person other than the Loan Trustee, except as otherwise
provided in or permitted by any Financing Agreement.

 

The Owner agrees that
at any time and from time to time, upon the written request of the Loan Trustee, the Owner shall promptly and duly execute and
deliver or cause to be duly executed and delivered any and all such further instruments and documents as the Loan Trustee may reasonably
deem necessary to perfect, preserve or protect the mortgage, security interests and assignments created or intended to be created
hereby or to obtain for the Loan Trustee the full benefit of the assignment hereunder and of the rights and powers herein granted;
provided that any instrument or other document so executed by the Owner will not expand any obligations or limit any rights
of the Owner in respect of the transactions contemplated by the Financing Agreements.

 

     4

     

    

 

Owner hereby represents
and warrants that it has not assigned or pledged, and hereby covenants and agrees that it shall not assign or pledge, so long as
the assignment hereunder shall remain in effect, and the Lien hereof shall not have been released pursuant to Section 10.01 hereof,
any of its right, title or interest hereby assigned, to anyone other than Security Trustee, and that it shall not, except as otherwise
permitted by the Financing Agreements (i) accept any payment forming part of the Collateral from Lessee or any Permitted Sublessee
under any Financing Agreement, (ii) enter into any agreement amending or supplementing any Financing Agreement, (iii) settle or
compromise any claim arising under any Indenture Agreement or (iv) submit or consent to the submission of any dispute, difference
or other matter arising under or in respect of any Financing Agreement to arbitration thereunder.

 

Owner hereby agrees
that it shall not without the written consent of Loan Trustee receive or collect or agree to the receipt or collection of Rent,
or any other payment to be made pursuant to the Lease and which forms part of the Collateral prior to the Business Day before the
date for payment thereof provided for by the Lease or assign or transfer (other than to Loan Trustee) any Rent, or any other payment
to be made pursuant to Section 3 or 10 of the Lease (then due or to accrue in the future under the Lease) in each case in respect
of the Airframe and Engines.

 

It is hereby further
agreed that any and all Collateral described or referred to in the granting clauses hereof which is hereafter acquired by Owner
shall automatically, and without any other conveyance, assignment or act on the part of Owner or Loan Trustee, become and be subject
to the Lien herein granted as fully and completely as though specifically described herein, but nothing contained in this paragraph
shall be deemed to modify or change the obligations of Owner contained in the foregoing paragraphs.

 

Owner hereby ratifies
and confirms the Lease and hereby agrees that it shall not violate any covenant or agreement made by it therein, herein or in any
other Financing Agreement.

 

IT IS HEREBY COVENANTED
AND AGREED by and between the parties hereto as follows:

 

ARTICLE I

 

DEFINITIONS

 

For all purposes of
this Indenture, unless the context otherwise requires, capitalized terms used but not defined herein have the respective meanings
set forth or incorporated by reference in Annex A.

 

     5

     

    

 

ARTICLE II

 

THE EQUIPMENT NOTES

 

Section 2.01. Form
of Equipment Notes. The Equipment Notes shall be substantially
in the form set forth below:

 

THIS EQUIPMENT NOTE HAS NOT BEEN
REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR PURSUANT TO THE SECURITIES LAWS
OF ANY STATE OR OTHER JURISDICTION. ACCORDINGLY, THIS EQUIPMENT NOTE MAY NOT BE OFFERED FOR SALE OR SOLD UNLESS EITHER REGISTERED
UNDER THE ACT AND SUCH APPLICABLE STATE OR OTHER LAWS OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE AVAILABLE. IN ADDITION,
THIS EQUIPMENT NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO THE PARTICIPATION AGREEMENT REFERRED TO HEREIN.

 

PARINA LEASING LIMITED

SERIES 2015-1[____][6698] EQUIPMENT
NOTE DUE_______, 20____ ISSUED IN CONNECTION WITH THE AIRBUS MODEL A321-200 AIRCRAFT BEARING CHILEAN REGISTRATION NUMBER CC-BEE
BEING LEASED TO LATAM AIRLINES GROUP S.A.

 

	No.____	Date: [_______,       ]	$_______________
	DEBT RATE	 	MATURITY DATE
	[____]%	 	_____________, 20 ____

 

 

PARINA LEASING LIMITED
(together with its successors and permitted assigns, the “Owner”) hereby promises to pay to_____________, or the registered
assignee thereof, the principal amount of _____________________ Dollars ($___________) [on __________]1 [in installments
on the Payment Dates set forth in Schedule I hereto, each such installment to be in an amount set forth in Schedule I hereto opposite
the Payment Date on which such installment is due,]2 and to pay, on each Payment Date, interest in arrears on the principal
amount remaining unpaid from time to time from the date hereof, or from the most recent date to which interest hereon has been
paid or duly provided for, until paid in full at a rate per annum (calculated on the basis of a year of 360 days comprised of twelve
30-day months) equal to the Debt Rate shown above as such Debt Rate may be changed from time to time for such period(s), and in
such amount(s) and circumstances, as provided in Section 2(d) of the relevant Registration Rights Agreement. [Notwithstanding the
foregoing, the final payment made on this Equipment Note shall be in an amount sufficient to discharge in full the unpaid principal
amount and all accrued and unpaid interest on, and any other amounts due under, this Equipment Note.]3 Notwithstanding
anything to the contrary contained herein, if any date on which a payment under this Equipment Note becomes due and payable is
not a Business Day, then such payment shall not be made on such scheduled date but shall be made on the next succeeding Business
Day with the same force and effect as if made on such scheduled date, and if payment is made on such next succeeding Business Day,
no interest shall accrue on the amount of such payment from and after such scheduled date.

 

 

		1	To be inserted in non-installment Equipment Notes.

 

		2	To be inserted in installment Equipment Notes.

 

		3	To be inserted in installment Equipment Notes.

 

     6

     

    

 

For purposes hereof,
the term “Indenture” means the Indenture and Security Agreement ([MSN]), dated as of ___________ ____, 20__, between
the Owner and Wilmington Trust Company, as Loan Trustee (the “Loan Trustee”), as the same may be amended, supplemented
or otherwise modified from time to time in accordance with its terms. All capitalized terms used in this Equipment Note and not
defined herein, unless the context otherwise requires, shall have the respective meanings set forth or incorporated by reference,
and shall be construed and interpreted in the manner described, in the Indenture.

 

This Equipment Note
shall bear interest, payable on demand, at the Past Due Rate (and not the Debt Rate) (calculated on the basis of a year of 360
days comprised of twelve 30-day months) on any principal amount and (to the extent permitted by applicable law) Make-Whole Amount,
if any, interest and any other amounts payable hereunder not paid when due for any period during which the same shall be overdue,
in each case for the period the same is overdue. Amounts shall be overdue if not paid in the manner provided herein or in the Indenture
when due (whether at stated maturity, by acceleration or otherwise).

 

There shall be maintained
an Equipment Note Register for the purpose of registering transfers and exchanges of Equipment Notes at the Corporate Trust Office
of the Loan Trustee, or at the office of any successor trustee, in the manner provided in Section 2.07 of the Indenture.

 

The principal amount
and interest and other amounts due hereunder shall be payable in Dollars in immediately available funds at the Corporate Trust
Office of the Loan Trustee, or as otherwise provided in the Indenture. The Owner shall not have any responsibility for the distribution
of any such payment to the Noteholder of this Equipment Note. Each such payment shall be made on the date such payment is due and
without any presentment or surrender of this Equipment Note, except that in the case of any final payment with respect to this
Equipment Note, this Equipment Note shall be surrendered to the Loan Trustee for cancellation.

 

     7

     

    

 

The holder hereof, by its acceptance of this Equipment Note, agrees that, except
as provided in the Indenture, including the subordination provisions referred to below, each payment of an installment of principal
amount, interest and Make-Whole Amount, if any, received by it hereunder shall be applied: first, to the payment of accrued
interest on this Equipment Note (as well as any interest on (i) any overdue principal amount, and (ii) to the extent permitted
by law, any overdue Make-Whole Amount, if any, any overdue interest and any other overdue amounts hereunder) to the date of such
payment; second, to the payment of Make-Whole Amount, if any, with respect to this Equipment Note; third, to the
payment of the principal amount of this Equipment Note (or portion thereof) then due hereunder, if any; and fourth, the
balance, if any, remaining thereafter to the payment of installments of the principal amount of this Equipment Note (or portion
thereof) remaining unpaid in the inverse order of their maturity.

 

This Equipment Note
is one of the Equipment Notes referred to in the Indenture which have been or are to be issued by the Owner pursuant to the terms
of the Indenture. The Collateral is held by the Loan Trustee as security, in part, for the Equipment Notes. The provisions of this
Equipment Note are subject to the Indenture, the Related Indentures, the Participation Agreement, the other Financing Agreements
and the Pass Through Documents. Reference is hereby made to the Indenture, the Related Indentures, the Participation Agreement,
the other Financing Agreements and the Pass Through Documents for a complete statement of the rights and obligations of the holder
of, and the nature and extent of the security for, this Equipment Note (including as a “Related Equipment Note” under
each Related Indenture) and the rights and obligations of the holders of, and the nature and extent of the security for, any other
Equipment Notes executed and delivered under the Indenture, to all of which terms and conditions in the Indenture, the Related
Indentures, the Participation Agreement, the other Financing Agreements and the Pass Through Documents each holder hereof agrees
by its acceptance of this Equipment Note.

 

As provided in the
Indenture and subject to certain limitations therein set forth, this Equipment Note is exchangeable for an equal aggregate principal
amount of Equipment Notes of the same Series of different authorized denominations, as requested by the holder surrendering the
same. Prior to the due presentment for registration of transfer of this Equipment Note, the Owner and the Loan Trustee shall deem
and treat the Person in whose name this Equipment Note is registered on the Equipment Note Register as the absolute owner and holder
hereof for the purpose of receiving all amounts payable with respect to this Equipment Note and for all purposes, and neither the
Owner nor the Loan Trustee shall be affected by notice to the contrary.

 

     8

     

    

 

This Equipment Note
is subject to redemption as provided in Section 2.10, Section 2.11 and Section 2.12 of the Indenture but not otherwise. In addition,
this Equipment Note may be accelerated as provided in Section 4.02 of the Indenture.

 

This Equipment Note
is subject to certain restrictions set forth in Section 4.01(a)(ii) and Section 4.01(a)(iii) of the Intercreditor Agreement, as
further specified in Section 2.07 of the Indenture, to all of which terms and conditions in the Intercreditor Agreement each holder
hereof agrees by its acceptance of this Equipment Note.

 

The holder hereof,
by its acceptance of this Equipment Note, agrees that no payment or distribution shall be made on or in respect of the Secured
Obligations (as defined in the Indenture) or the Secured Obligations (as defined in any Related Indenture) owed to such holder,
including, without limitation, any payment or distribution of cash, property or securities after the occurrence of any of the events
referred to in Section 4.01(f) of the Indenture or after the commencement of any proceedings of the type referred to in Section
4.01(g), Section 4.01(h) or Section 4.01(i) of the Indenture, except, in each case, as expressly provided in Article III of the
Indenture or Article III of the applicable Related Indenture, as appropriate.

 

The holder hereof,
by its acceptance of this Equipment Note, agrees to treat this Equipment Note as indebtedness for all U.S. federal, state and local
income tax purposes.

 

The indebtedness evidenced by this Equipment Note is[,]4 [(i) to
the extent and in the manner provided in the Indenture, subordinate and subject in right of payment to the prior payment in full
of the Secured Obligations in respect of [Series A Equipment Notes]5 [Series A Equipment Notes and Series B Equipment
Notes]6, and certain other Secured Obligations, and (ii)]7 to the extent and in the manner provided
in each Related Indenture, subordinate and subject in right of payment to the prior payment in full under such Related Indenture
of the “Secured Obligations” in respect of the “Equipment Notes” issued under such Related Indenture, and
this Equipment Note is issued subject to such provisions. The Noteholder of this Equipment Note, by accepting the same, (a)
agrees to and shall be bound by such provisions, (b) authorizes and directs the Loan Trustee or the Related Loan Trustee
under the applicable Related Indenture, as appropriate, on such Noteholder’s behalf to take any action necessary or appropriate
to effectuate the subordination as provided in this Indenture or the applicable Related Indenture and (c) appoints the Loan
Trustee or the Related Loan Trustee under the applicable Related Indenture, as appropriate, as such Noteholder’s attorney-in-fact
for such purpose.

 

 

		4	To be inserted in the case of a Series A Equipment Note.

 

		5	To be inserted in the case of a Series B Equipment Note.

 

		6	To be inserted in the case of an Additional Series Equipment Note

 

		7	To be inserted in the case of a Series B Equipment Note, or an Additional Series Equipment Note.

 

     9

     

    

 

Without limiting the
foregoing, the Noteholder of this Equipment Note, by accepting the same, agrees that if such Noteholder, in its capacity as a Noteholder,
shall receive any payment or distribution on any Secured Obligation in respect of this Equipment Note that it is not entitled to
receive under Section 2.13 or Article III of the Indenture, it shall hold any amount so received in trust for the Loan Trustee
and forthwith turn over such amount to the Loan Trustee in the form received to be applied as provided in Article III of the Indenture.

 

Unless the certificate
of authentication hereon has been executed by or on behalf of the Loan Trustee by manual signature, this Equipment Note shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

THIS EQUIPMENT
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE.

 

IN WITNESS WHEREOF,
the Owner has caused this Equipment Note to be executed in its corporate name by its officer thereunto duly authorized on the date
hereof.

 

	 	PARINA LEASING LIMITED
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     10

     

    

 

	 	LOAN TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Equipment Notes referred
to in the within-mentioned Indenture.

 

	 	WILMINGTON TRUST COMPANY,
	 	 
	 	not in its individual capacity but solely as Loan Trustee
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

SCHEDULE I8

 

EQUIPMENT NOTE AMORTIZATION

 

	Payment Date	 	Percentage of Original

Principal Amount

to be Paid
	 	 	 
	 	 	 
	 	 	 

 

 

8To be inserted in installment Equipment Notes.

 

     11

     

    

 

[SEE “EQUIPMENT NOTES AMORTIZATION”
ON SCHEDULE I TO

 

THIS INDENTURE]

 

ARTICLE III

 

*  *  *

 

Section 3.01. Issuance
and Terms of Equipment Notes. The Equipment Notes (other than Additional Series Equipment Notes) shall be dated the date of
issuance thereof, shall be issued in (a) separate Series consisting of Series A Equipment Notes, Series B Equipment Notes,
and Additional Series Equipment Notes (if issued) (if more than one series Additional Series Equipment Notes are so issued whether
at the same or different times, each such series shall have a different designation such as, for example, “Series C”
and “Series D”) and (b) the maturities and original principal amounts and shall bear interest at the applicable
Debt Rates specified in Schedule I hereto (as, in the case of any Additional Series Equipment Notes issued after the Closing
Date, such Schedule I may be amended in connection with such issuance). On the date of original issuance thereof, each Series A
Equipment Note, Series B Equipment Note and Additional Series Equipment Note (if issued) shall be issued to the Subordination Agent
on behalf of each of the Pass Through Trustees for the applicable Pass Through Trust created under the Pass Through Trust Agreements
referred to in Schedule II. Subject to compliance with the conditions set forth in Section 4(b)(iv) of the Note Purchase
Agreement, Section 2.02 of the Participation Agreement and Section 8.01(d) of the Intercreditor Agreement, the Owner shall have
the option to issue Additional Series Equipment Notes at any time and from time to time (including any Additional Series Equipment
notes of the same series designation as previously issued Additional Series Equipment Notes that have been paid in full). In addition,
if all of the Series B Equipment Notes (whether issued on or after the Closing Date) shall have been redeemed pursuant to Section
2.11(b), the Owner shall, subject to compliance with the conditions set forth in Section 4(b)(iv) of the Note Purchase Agreement,
Section 2.02 of the Participation Agreement and Section 8.01(c) of the Intercreditor Agreement, have the option to issue new Series
B Equipment Notes with the same Series B designation as, but with terms that may be the same as or different from those of, the
redeemed Series B Equipment Notes. Any Series B Equipment Notes issued after the Closing Date pursuant to the immediately preceding
sentence shall have such maturities, original principal amounts and interest rate as specified in Schedule I hereto in respect
of Series B Equipment Notes, as such Schedule I may be amended in connection with any such issuance. One or more separate
series of Additional Series Equipment Notes may be issued at any time and such series of Additional Series Equipment Notes shall
be dated the date of original issuance thereof and shall have such maturities, principal amounts and interest rates as specified
in an amendment to this Indenture. Without limitation of the foregoing, new Series B Equipment Notes, and, if any Additional Series
Equipment Notes shall have been issued hereunder, new Additional Series Equipment Notes may be issued pursuant to the provisions
of Section 2.11(b). The Equipment Notes shall be issued in registered form only. The Equipment Notes shall be issued in denominations
of $1,000 and integral multiples thereof, except that one Equipment Note of each Series may be in an amount that is not an integral
multiple of $1,000.

 

     12

     

    

 

Each Equipment Note
shall bear interest at the Debt Rate specified for such Series calculated on the basis of a year of 360 days comprised of twelve
30-day months, payable in arrears on each Payment Date on the unpaid principal amount thereof from time to time outstanding from
the most recent Payment Date to which interest has been paid or duly provided for (or, if no interest has been so paid or provided
for, from the date of issuance of such Equipment Note) until such principal amount is paid in full, as further provided in the
form of Equipment Note set forth in Section 2.01. The principal amount of each Series A Equipment Note, each Series B Equipment
Note, and each Additional Series Equipment Note (if issued) shall be payable in installments or in a single payment on the Payment
Dates set forth in Schedule I to such Equipment Note, each such installment, if any, to be in an amount computed by multiplying
the original principal amount of such Equipment Note by the corresponding percentage set forth in Schedule I hereto (as,
in the case of any Additional Series Equipment Notes issued after the Closing Date, such Schedule I may be amended in connection
with such issuance) applicable to such Series, the applicable portion of which shall be attached as Schedule I to such Equipment
Note, opposite the Payment Date on which such installment is due. Each Additional Series Equipment Note, if issued, shall be payable
in installments or in a single payment as set forth in an amendment to this Indenture, and if payable in installments, such installments
shall be calculated as set forth in the preceding sentence. Notwithstanding the foregoing, the final payment made under each Equipment
Note shall be in an amount sufficient to discharge in full the unpaid principal amount and all accrued and unpaid interest on,
and any other amounts due under, such Equipment Note. Each Equipment Note shall bear interest, payable on demand, at the Past Due
Rate (and not at the Debt Rate) (calculated on the basis of a year of 360 days comprised of twelve 30-day months) on any principal
amount and (to the extent permitted by applicable law) Make-Whole Amount, if any, interest and any other amounts payable thereunder
not paid when due for any period during which the same shall be overdue, in each case for the period the same is overdue. Amounts
shall be overdue under an Equipment Note if not paid in the manner provided therein or in this Indenture when due (whether at stated
maturity, by acceleration or otherwise). Notwithstanding anything to the contrary contained herein, if any date on which a payment
hereunder or under any Equipment Note becomes due and payable is not a Business Day, then such payment shall not be made on such
scheduled date but shall be made on the next succeeding Business Day with the same force and effect as if made on such scheduled
date, and if such payment is made on such next succeeding Business Day, no interest shall accrue on the amount of such payment
from and after such scheduled date.

 

The Equipment Notes
shall be executed on behalf of the Owner by the manual or facsimile signature of one of its authorized officers. Equipment Notes
bearing the signatures of individuals who were at the time of execution the proper officers of the Owner shall bind the Owner,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery
of such Equipment Notes or did not hold such offices at the respective dates of such Equipment Notes. No Equipment Note shall be
secured by or entitled to any benefit under this Indenture or be valid or obligatory for any purposes unless there appears on such
Equipment Note a certificate of authentication in the form provided herein executed by the Loan Trustee by the manual signature
of one of its authorized officers, and such certificate upon any Equipment Notes shall be conclusive evidence, and the only evidence,
that such Equipment Note has been duly authenticated and delivered hereunder.

 

     13

     

    

 

Section 3.02. Method
of Payment. The principal amount of, interest on, Make- Whole Amount, if any, and, except to the extent expressly provided
herein, all other amounts due under each Equipment Note or otherwise payable hereunder shall be payable by the Owner in Dollars
by wire transfer of immediately available funds not later than 10:00 a.m. (New York City time) on the due date of payment to the
Loan Trustee at the Corporate Trust Office for distribution among the Noteholders in the manner provided herein, and payment of
such amount by or on behalf of the Owner to the Loan Trustee shall be deemed to satisfy the Owner’s obligation to make such
payment. The Owner shall not have any responsibility for the distribution of such payment to any Noteholder. Notwithstanding the
foregoing or any provision in any Equipment Note to the contrary, the Loan Trustee will use reasonable efforts to pay or cause
to be paid, if so directed in writing by any Noteholder (with a copy to the Owner), all amounts paid by the Owner hereunder and
under such Noteholder’s Equipment Note or Equipment Notes to such Noteholder or a nominee therefor (including all amounts
distributed pursuant to Article III) by transferring, or causing to be transferred, by wire transfer of immediately available funds
in Dollars, prior to 12:00 noon (New York City time) on the due date of payment, to an account maintained by such Noteholder with
a bank located in the continental United States the amount to be distributed to such Noteholder, for credit to the account of such
Noteholder maintained at such bank; provided that, in the event the Equipment Notes are not held by the Subordination Agent
on behalf of the Pass Through Trustees, the Loan Trustee shall, unless instructed by the Owner to use another method, pay such
amounts by check mailed to the Noteholder’s address as it appears on the Equipment Note Register. If, after its receipt of
funds at the place and prior to the time specified above in the immediately preceding sentence, the Loan Trustee shall fail (other
than as a result of a failure of the Noteholder to provide it with wire transfer instructions) to make any such payment required
to be paid by wire transfer as provided in the immediately preceding sentence on the Business Day it receives such funds, the Loan
Trustee, in its individual capacity and not as trustee, agrees to compensate such Noteholders for loss of use of funds at the Federal
Funds Rate until such payment is made and the Loan Trustee shall be entitled to any interest earned on such funds until such payment
is made. Any payment made hereunder shall be made without any presentment or surrender of any Equipment Note, except that, in the
case of the final payment in respect of any Equipment Note, such Equipment Note shall be surrendered to the Loan Trustee for cancellation.
Notwithstanding any other provision of this Indenture to the contrary, the Loan Trustee shall not be required to make, or cause
to be made, wire transfers as aforesaid prior to the first Business Day on which it is practicable for the Loan Trustee to do so
in view of the time of day when the funds to be so transferred were received by it if such funds were received after 1:00 p.m.
(New York City time) at the place of payment, in which case the Loan Trustee shall make such required payment on the next succeeding
Business Day. So long as any signatory to the Participation Agreement or nominee thereof shall be a registered Noteholder, all
payments to it shall be made to the account of such Noteholder specified in Schedule I to the Participation Agreement, or otherwise
in the manner provided in or pursuant to the Participation Agreement, unless it shall have specified some other account or manner
of payment by notice to the Loan Trustee consistent with this Section 2.03.

 

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Section 3.03. Withholding
Taxes. The Loan Trustee shall exclude and withhold at the appropriate rate from each payment of principal amount of, interest
on, Make-Whole Amount, if any, and other amounts due hereunder or under each Equipment Note (which exclusion and withholding shall
constitute payment of such amounts payable hereunder or in respect of such Equipment Notes, as applicable) any and all withholding
taxes applicable thereto as required by law. The Loan Trustee agrees to act as such withholding agent and, in connection therewith,
whenever any present or future taxes or similar charges are required by law to be withheld with respect to any amounts payable
hereunder or in respect of the Equipment Notes, to withhold such amounts (which withholding shall constitute payment of such amounts
payable hereunder or in respect of such Equipment Notes, as applicable) and timely pay the same to the appropriate authority in
the name of and on behalf of the Noteholders, that it will file any necessary withholding tax returns or statements when due, and
that as promptly as possible after the payment thereof it will deliver to each Noteholder (with a copy to the Owner) appropriate
documentation showing the payment thereof, together with such additional documentary evidence as any such Noteholder may reasonably
request from time to time. The Loan Trustee agrees to file any other information reports as it may be required to file under law.

 

Section 3.04. Application
of Payments. Subject always to Section 2.13 and except as otherwise provided in Article III, in the case of each Equipment
Note, each payment of an installment of principal amount, Make-Whole Amount, if any, and interest paid thereon shall be applied:

 

first, to the payment of accrued interest on such Equipment Note (as
well as any interest on (i) any overdue principal amount, and (ii) to the extent permitted by applicable law, any overdue
Make-Whole Amount, if any, any overdue interest and any other overdue amounts thereunder) to the date of such payment;

 

second,
to the payment of Make-Whole Amount, if any, with respect to such Equipment Note;

 

third,
to the payment of the principal amount of such Equipment Note (or portion thereof) then due thereunder, if any; and

 

fourth,
the balance, if any, remaining thereafter to the payment of installments of the principal amount of such Equipment Note (or portion
thereof) remaining unpaid in the inverse order of their maturity.

 

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Section 3.05. Termination
of Interest in Collateral. No Noteholder or Indenture Indemnitee shall, as such, have any further interest in, or other right
with respect to, the Collateral when and if the principal amount of, Make-Whole Amount, if any, and interest (including, to the
extent permitted by applicable law, post-petition interest and interest on any overdue amounts) due on and all other amounts due
under all Equipment Notes held by such Noteholder and all other sums then due and payable to such Noteholder or Indenture Indemnitee,
as the case may be, hereunder and under the other Financing Agreements (including, without limitation, under Section 2.14 and under
Sections 4.03 and 4.04 of the Participation Agreement) by the Owner, or Lessee, as the case may be, (the “Secured
Obligations”) have been paid in full.

 

Subject to Section
10.01 hereof, no Related Indenture Indemnitee shall, as such, have any further interest in, or other right with respect to, the
Collateral when and if all Related Secured Obligations have been paid in full.

 

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Section
3.06. Registration, Transfer and Exchange of Equipment Notes. The Loan Trustee shall keep a register or registers (the “Equipment
Note Register”) in which the Loan Trustee shall provide for the registration of Equipment Notes and the registration
of transfers of Equipment Notes. No such transfer shall be given effect unless and until registration hereunder shall have occurred.
The Equipment Note Register shall be kept at the Corporate Trust Office of the Loan Trustee. The Loan Trustee is hereby appointed
“Equipment Note Registrar” for the purpose of registering Equipment Notes and transfers of Equipment Notes as herein
provided. A holder of any Equipment Note intending to exchange or transfer such Equipment Note shall surrender such Equipment Note
to the Loan Trustee at the Corporate Trust Office, together with a written request from the registered holder thereof for the issuance
of a new Equipment Note of the same Series, specifying, in the case of a surrender for transfer, the name and address of the new
holder or holders. Upon surrender for registration of transfer of any Equipment Note and subject to satisfaction of Section 2.09,
the Owner shall execute, and the Loan Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Equipment Notes of an equal aggregate principal amount and of the same Series. At the option of the Noteholder,
Equipment Notes may be exchanged for other Equipment Notes of the same Series of any authorized denominations of an equal aggregate
principal amount, upon surrender of the Equipment Notes to be exchanged to the Loan Trustee at the Corporate Trust Office. Whenever
any Equipment Notes are so surrendered for exchange, the Owner shall execute, and the Loan Trustee shall authenticate and deliver,
the Equipment Notes which the Noteholder making the exchange is entitled to receive. All Equipment Notes issued upon any registration
of transfer or exchange of Equipment Notes (whether under this Section 2.07 or under Section 2.08 or otherwise under this Indenture)
shall be the valid obligations of the Owner evidencing the same respective obligations, and entitled to the same security and benefits
under this Indenture, as the Equipment Notes surrendered upon such registration of transfer or exchange. Every Equipment Note presented
or surrendered for registration of transfer shall (if so required by the Owner or the Loan Trustee) be duly endorsed, or be accompanied by a written instrument
of transfer in form satisfactory to the Loan Trustee, duly executed by the Noteholder or such Noteholder’s attorney duly
authorized in writing, and the Owner and the Loan Trustee shall require evidence satisfactory to it as to the compliance of any
such transfer with the Securities Act and the securities laws of any applicable state or jurisdiction. The Loan Trustee shall make
a notation on each new Equipment Note of the amount of all payments of principal amount previously made on the old Equipment Note
or Equipment Notes with respect to which such new Equipment Note is issued and the date to which interest on such old Equipment
Note or Equipment Notes has been paid. Principal, interest and all other amounts shall be deemed to have been paid on such new
Equipment Note to the date on which such amounts shall have been paid on such old Equipment Note. The Owner shall not be required
to exchange any surrendered Equipment Notes as provided above (a) during the ten-day period preceding the due date of any
payment on such Equipment Note or (b) that has been called for redemption. The Owner and the Loan Trustee shall in all cases
deem and treat the Person in whose name any Equipment Note shall have been issued and registered on the Equipment Note Register
as the absolute owner and the Noteholder of such Equipment Note for the purpose of receiving payment of all amounts payable with
respect to such Equipment Note and for all other purposes, and neither the Owner nor the Loan Trustee shall be affected by any
notice to the contrary. The Loan Trustee will promptly notify the Owner of each registration of a transfer of an Equipment Note.
Any such transferee of an Equipment Note, by its acceptance of an Equipment Note, agrees to the provisions of the Indenture, the
Related Indentures, the Participation Agreement, the other Financing Agreements and the Pass Through Documents applicable to the
Noteholders or, in the case of each Related Indenture, Related Noteholders, and, without limiting the generality of the foregoing,
any such transferee of an Equipment Note, by its acceptance of an Equipment Note: (i) agrees to the applicable provisions of Section
6.01, Section 7.10 and Section 7.11 of the Participation Agreement, and shall be deemed to have represented, warranted and covenanted
to the parties to the Participation Agreement as to the matters represented, warranted and covenanted by the Noteholders, including
the Pass Through Trustees, in the Participation Agreement and (ii) agrees to the restrictions set forth in Section 4.01(a)(ii)
and Section 4.01(a)(iii) of the Intercreditor Agreement, and shall be deemed to have covenanted to the parties to the Intercreditor
Agreement not to give any direction to, or otherwise authorize, the Loan Trustee to take any action that would violate Section
4.01(a)(ii) or Section 4.01(a)(iii) of the Intercreditor Agreement. Subject to compliance by the Noteholder and its transferee
(if any) of the requirements set forth in this Section 2.07 and in Section 2.09, the Loan Trustee and the Owner shall use all reasonable
efforts to issue new Equipment Notes upon transfer or exchange within ten Business Days of the date an Equipment Note is surrendered
for transfer or exchange.

 

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Section 3.07. Mutilated,
Destroyed, Lost or Stolen Equipment Notes. If any Equipment Note becomes mutilated, destroyed, lost or stolen, the Owner shall,
upon the written request of the holder of such Equipment Note and subject to satisfaction of this Section 2.08 and of Section 2.09,
execute and the Loan Trustee shall authenticate and deliver in replacement thereof a new Equipment Note of the same Series, payable
in the same principal amount, dated the same date and captioned as issued in connection with the Aircraft. If the Equipment Note
being replaced has become mutilated, such Equipment Note shall be surrendered to the Loan Trustee, and a photocopy thereof shall
be furnished to the Owner. If the Equipment Note being replaced has been destroyed, lost or stolen, the holder of such Equipment
Note shall furnish to the Owner and the Loan Trustee such security or indemnity as may be required by them to save the Owner and
the Loan Trustee harmless and evidence satisfactory to the Owner and the Loan Trustee of the destruction, loss or theft of such
Equipment Note and of the ownership thereof.

 

Section 3.08. Payment
of Expenses on Transfer; Cancellation. (a) No service charge shall be made to a Noteholder for any registration of transfer
or exchange of Equipment Notes, but the Loan Trustee, as Equipment Note Registrar, may require payment of a sum sufficient to cover
any Tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Equipment
Notes.

 

(b) The Loan Trustee
shall cancel all Equipment Notes surrendered for replacement, redemption, transfer, exchange, payment or cancellation, shall keep
a copy of such cancelled Equipment Notes, and shall send the original canceled Equipment Notes marked “cancelled” to
the Owner.

 

Section 3.09. Mandatory
Redemption of Equipment Notes. (a) On the date on which the Lessee (i) is required pursuant to Section 9(a) of the Lease to
make payment for an Event of Loss with respect to the Airframe or (ii) pursuant to Section 3(e)(i) of the Lease elects to make
payment due to illegality, all of the Equipment Notes shall be redeemed in whole at a redemption price equal to 100% of the unpaid
principal amount thereof, together with all accrued interest thereon to the date of redemption and all other Secured Obligations
(plus Related Secured Obligations in respect of an Affected Related Aircraft in the case of a prepayment pursuant to clause (ii)
above) owed or then due and payable to the Noteholders but without Make-Whole Amount.

 

(b) If the Loan Trustee
receives notice from the Owner or the Lessee that the Lease or any Related Lease has been or will be terminated with respect to
the Aircraft (whether by purchase of the Aircraft by Lessee or otherwise) other than pursuant to Section 9(a) or Section 3(e)(i)
of the Lease or such Related Lease on a specified date, the Loan Trustee shall give the Noteholders revocable prior written notice
that all of the Equipment Notes will be redeemed by the Owner on such specified date, and on such specified date all the Equipment
Notes shall be redeemed in whole at a redemption price equal to 100% of the unpaid principal amount thereof, together with accrued
interest thereon to the date of redemption and all other Secured Obligations owed or then due and payable to the Noteholders, plus
Make-Whole Amount, if any.

 

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Section 3.10. Voluntary
Redemption of Equipment Notes. (a) Except as provided in Section 2.11(b), all, but not less than all, of the Equipment Notes
may be redeemed by the Owner at any time upon at least 15 days’ revocable prior written notice to the Loan Trustee and the
Noteholders, and such Equipment Notes shall be redeemed in whole at a redemption price equal to 100% of the unpaid principal amount
thereof, together with accrued and unpaid interest thereon to (but excluding) the date of redemption and all other Secured Obligations
owed or then due and payable to the Noteholders, plus Make-Whole Amount, if any; provided that no redemption shall be permitted
under this Section 2.11(a) unless, simultaneously with such redemption, the Related Equipment Notes shall also be redeemed.

 

(b)          All
of the Series B Equipment Notes, or all of any series of Additional Series Equipment Notes (or any combination of the foregoing)
may be redeemed by the Owner upon at least 15 days’ revocable prior written notice to the Loan Trustee and the Noteholders
of each Series to be redeemed, and such Series of Equipment Notes being redeemed pursuant to this Section 2.11(b) shall be redeemed
in whole at a redemption price equal to 100% of the unpaid principal amount thereof, together with accrued and unpaid interest
thereon to (but excluding) the date of redemption and all other Secured Obligations owed or then due and payable to the Noteholders
of such Series, plus Make- Whole Amount, if any; provided that:

 

(i)          no
redemption shall be permitted under this Section 2.11(b) unless, simultaneously with such redemption, the Related Series B Equipment
Notes (in the case of redemption hereunder of Series B Equipment Notes), or the Related Additional Series Equipment Notes in respect
of the Additional Series Equipment Notes being redeemed (in the case of redemption hereunder of any series of Additional Series
Equipment Notes), as the case may be, shall also be redeemed; and

 

(ii)         if,
simultaneously with such redemption, new Series B Equipment Notes (in the case of redemption hereunder of Series B Equipment Notes),
or a new series of Additional Series Equipment Notes of the same series designation as the Addition Series Equipment Notes being
redeemed (in the case of redemption hereunder of a series of Additional Series Equipment Notes), which, in any such case, may have
terms that may be the same as or different from those of the redeemed Equipment Notes, are being issued, such new Equipment Notes
shall be issued in accordance with Section 2.02 of the Participation Agreement, Section 4(b)(iv) of the Note Purchase Agreement
and Section 8.01(c) of the Intercreditor Agreement.

 

(c)          Notwithstanding
anything to the contrary in Section 2.11(a) or (b), so long as LATAM, the Owner or any of their respective Affiliates (or any combination
thereof) beneficially owns 100% of the Pass Through Certificates issued by any Pass Through Trustee, the redemption price shall
not include, and no Noteholder shall have any right to otherwise claim, any Make-Whole Amount with respect to the Series of Equipment
Notes issued to the Subordination Agent for the benefit of such Pass Through Trustee.

 

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Section 3.11. Redemptions;
Notice of Redemptions; Repurchases. (a) No redemption of any Equipment Note may be made except to the extent and in the manner
expressly permitted by this Indenture. The Owner may at any time repurchase any of the Equipment Notes not held by the Subordination
Agent at any price and may hold or resell such Equipment Notes or surrender such Equipment Notes to the Loan Trustee for cancellation.

 

(b)          Notice
of redemption with respect to the Equipment Notes shall be given by the Loan Trustee by first-class mail, postage prepaid, mailed
not less than 15 nor more than 60 days prior to the applicable redemption date, to each Noteholder of such Equipment Notes to be
redeemed, at such Noteholder’s address appearing in the Equipment Note Register; provided that such notice shall be
revocable by written notice from the Owner to the Loan Trustee given no later than three days prior to the redemption date. All
such notices of redemption shall state: (1) the redemption date, (2) the applicable basis for determining the redemption
price, (3) that on the redemption date, the redemption price will become due and payable upon each such Equipment Note,
and that, if any such Equipment Notes are then outstanding, interest on such Equipment Notes shall cease to accrue on and after
such redemption date and (4) the place or places where such Equipment Notes are to be surrendered for payment of the redemption
price.

 

(c)          On
or before the redemption date, the Owner (or any person on behalf of the Owner) shall, to the extent an amount equal to the redemption
price for the Equipment Notes to be redeemed on the redemption date shall not then be held in the Collateral, deposit or cause
to be deposited with the Loan Trustee by 11:00 a.m. (New York City time) on the redemption date in immediately available funds
the redemption price of the Equipment Notes to be redeemed.

 

(d)          Notice
of redemption having been given as aforesaid (and not revoked as permitted by this Section 2.12), the Equipment Notes to be redeemed
shall, on the redemption date, become due and payable at the Corporate Trust Office of the Loan Trustee, and from and after such
redemption date (unless there shall be a default in the deposit of the redemption price pursuant to Section 2.12(c)) any such Equipment
Notes then outstanding shall cease to bear interest. Upon surrender of any such Equipment Note for redemption in accordance with
said notice, such Equipment Note shall be redeemed at the redemption price.

 

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Section
3.12. Subordination. (a) The indebtedness evidenced by the Series B Equipment Notes is, to the extent and in the manner
provided in this Indenture, subordinate and subject in right of payment to the prior payment in full of the Secured Obligations
in respect of the Series A Equipment Notes, and the Series B Equipment Notes are issued subject to such provisions. The indebtedness
evidenced by any Additional Series Equipment Notes, if issued, will be, to the extent and in the manner provided in this Indenture
(as this Indenture may be amended in connection with any such issuance of Additional Series Equipment Notes), subordinate and subject
in right of payment to the prior payment in full of the Secured Obligations in respect of the Series A Equipment Notes, the Series
B Equipment Notes and, if applicable, any previously or concurrently issued Additional Series Equipment Notes with a series designation
ranking senior to such Additional Series Equipment Notes, and any Additional Series Equipment Notes, if issued, shall be issued
subject to such provisions. The indebtedness evidenced by the Series A Equipment Notes and the Series B Equipment Notes is, and
the indebtedness evidenced by any Additional Series Equipment Notes, if issued, will be, to the extent and in the manner provided
in each Related Indenture, subordinate and subject in right of payment to the prior payment in full under such Related Indenture
of the “Secured Obligations” in respect of the “Equipment Notes” issued under such Related Indenture, and
the Series A Equipment Notes and the Series B Equipment Notes are, and any Additional Series Equipment Notes shall be, issued subject
to such provisions. By acceptance of its Equipment Notes of any Series, each Noteholder of such Series (i) agrees to and shall be bound by such provisions, (ii) authorizes
and directs the Loan Trustee or the Related Loan Trustee under the applicable Related Indenture, as applicable, on such Noteholder’s
behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in this Indenture and
the applicable Related Indenture, and (iii) appoints the Loan Trustee or the Related Loan Trustee under the applicable Related
Indenture, as applicable, as such Noteholder’s attorney-in-fact for such purpose.

 

(b)          The
Owner, the Loan Trustee and, by acceptance of its Equipment Notes of any Series, each Noteholder of such Series, hereby agree that
no payment or distribution shall be made on or in respect of the Secured Obligations, or the “Secured Obligations”
under any Related Indenture, owed to such Noteholder of such Series, including any payment or distribution of cash, property or
securities after the occurrence of any of the events referred to in Section 4.01(f) or after the commencement of any proceedings
of the type referred to in Section 4.01(g), Section 4.01(h) or Section 4.01(i), except, in each case, as expressly provided in
Article III of this Indenture or Article III of the applicable Related Indenture, as appropriate.

 

(c)          By the acceptance of its Equipment Notes of any Series, each Noteholder of
such Series agrees that (i) if such Noteholder, in its capacity as a Noteholder, shall receive any payment or distribution on any
Secured Obligations in respect of such Series that it is not entitled to receive under this Section 2.13 or Article III hereof,
it will hold any amount so received in trust for the Loan Trustee and forthwith turn over such amount to the Loan Trustee in the
form received to be applied as provided in Article III hereof, and (ii) if such Noteholder, in its capacity as a “Noteholder”
under any Related Indenture, receives any payment or distribution on any “Secured Obligations” in respect of “Equipment
Notes” of any “Series” issued under such Related Indenture that it is not entitled to receive under Section 2.13
or Article III of such Related Indenture, it will hold any amount so received in trust for the Related Loan Trustee under such
Related Indenture and forthwith turn over such amount to such Related Loan Trustee under such Related Indenture in the form received
to be applied as provided in Article III of such Related Indenture.

 

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Section 3.13. Certain
Payments. The Owner agrees to pay to the Loan Trustee for distribution in accordance with Section 3.04:

 

(a)          an
amount or amounts equal to the fees payable to the Liquidity Providers under Section 2.03 of each Liquidity Facility and the Fee
Letter (as defined in the Intercreditor Agreement) related thereto (or similar provisions of any Replacement Liquidity Facility
therefor and any related fee letter), multiplied by a fraction, the numerator of which shall be the sum of the then outstanding
aggregate principal amount of the Series A Equipment Notes and the Series B Equipment Notes and the denominator of which shall
be the sum of the then outstanding aggregate principal amount of all “Series A Equipment Notes” and “Series B
Equipment Notes” (each as defined in the Note Purchase Agreement) with respect to all of the “Indentures” (as
defined in the Note Purchase Agreement);

 

(b)          an
amount equal to interest on any Special Termination Advance (other than any Applied Special Termination Advance) payable under
Section

3.07 of each
Liquidity Facility (or similar provisions of any Replacement Liquidity Facility therefor) minus Investment Earnings from such Special
Termination Advance, multiplied by the fraction specified in the foregoing clause (a);

 

(c)          an
amount equal to interest on any Downgrade Advance (other than any Applied Downgrade Advance) payable under Section 3.07 of each
Liquidity Facility (or similar provisions of any Replacement Liquidity Facility therefor) minus Investment Earnings from such Downgrade
Advance, multiplied by the fraction specified in the foregoing clause (a);

 

(d)          an
amount equal to interest on any Non-Extension Advance (other than any Applied Non-Extension Advance) payable under Section 3.07
of each Liquidity Facility (or similar provisions of any Replacement Liquidity Facility therefor) minus Investment Earnings from
such Non-Extension Advance, multiplied by the fraction specified in the foregoing clause (a);

 

     22

     

    

 

(e)          if
any payment default shall have occurred and be continuing with respect to interest on any “Series A Equipment Notes”
or “Series B Equipment Notes” (each as defined in the Note Purchase Agreement), (x) the excess, if any, of (1)
the amount equal to the sum of interest on any Unpaid Advance (other than a Special Termination Advance), Applied Provider Advance
or Applied Special Termination Advance payable under Section 3.07 of each Liquidity Facility (or similar provisions of any Replacement
Liquidity Facility therefor) plus any other amounts payable in respect of such Unpaid Advance, Applied Provider Advance or Applied
Special Termination Advance under Section 3.01, Section 3.03 or Section 3.09 of each Liquidity Facility (or similar provisions
of any Replacement Liquidity Facility therefor) under which such Unpaid Advance, Applied Provider Advance or Applied Special Termination
Advance was made over (2) the sum of Investment Earnings from any Final Advance plus any amount of interest at the Past
Due Rate actually payable (whether or not in fact paid) by the Owner in respect of the overdue scheduled interest on the “Series
A Equipment Notes” and “Series B Equipment Notes” (each as defined in the Note Purchase Agreement) in respect
of which such Unpaid Advance, Applied Provider Advance or Applied Special Termination Advance was made, multiplied by (y)
a fraction, the numerator of which shall be the then aggregate overdue amounts of interest on the Series A Equipment Notes and
Series B Equipment Notes (other than interest becoming due and payable solely as a result of acceleration of any such Equipment
Notes) and the denominator of which shall be the then aggregate overdue amounts of interest on all “Series A Equipment Notes”
and “Series B Equipment Notes” (each as defined in the Note Purchase Agreement) with respect to all of the “Indentures”
(as defined in the Note Purchase Agreement) (other than interest becoming due and payable solely as a result of acceleration of
any such “Equipment Notes”);

 

(f)          any
amounts owed to the Liquidity Providers by the Subordination Agent as borrower under Section 3.01 (other than in respect of an
Unpaid Advance, Applied Provider Advance or Applied Special Termination Advance), Section 3.03 (other than in respect of an Unpaid
Advance, Applied Provider Advance or Applied Special Termination Advance), Section 7.05 and Section 7.07 of each Liquidity Facility
(or similar provisions of any Replacement Liquidity Facility therefor) multiplied by the fraction specified in the foregoing clause
(a); and

 

(g)          an
amount or amounts equal to the compensation, including reasonable expenses and disbursements actually incurred, payable to the
Subordination Agent under Section 6.07 of the Intercreditor Agreement, multiplied by the fraction specified in the foregoing clause
(a) (but in any event without duplication of any amount or amounts payable by the Owner in respect of such compensation under any
other Financing Agreement or Pass Through Document).

 

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For purposes of this
paragraph, the terms “Applied Downgrade Advance”, “Applied Non-Extension Advance”, “Applied Provider
Advance”, “Applied Special Termination Advance”, “Downgrade Advance”, “Final Advance”,
“Investment Earnings”, “Non-Extension Advance”, “Special Termination Advance” and “Unpaid
Advance” shall have the meanings specified in each Liquidity Facility or the Intercreditor Agreement, as applicable.

 

Section 3.14. Repayment
of Monies for Equipment Note Payments Held by the Loan Trustee. Any money held by the Loan Trustee in trust for any
payment of the principal of, Make-Whole Amount, if any, or interest or any other amounts due on, any Equipment Note, including,
without limitation, any money deposited pursuant to Section 2.12(c) or Section 10.01, and remaining unclaimed for a 730-day period
(for purposes of calculating this 730-day period, all days on which the payment of such money shall not have been made because
of operation of law shall be excluded) after the due date for such payment (or such lesser time as the Loan Trustee shall be satisfied,
after 60 days’ notice from the Owner, is one month prior to the escheat period provided under applicable state law) shall
be paid to the Owner. The Noteholders of any outstanding Equipment Notes shall thereafter, as unsecured general creditors, look
only to the Owner for payment thereof, and all liability of the Loan Trustee with respect to such trust money shall thereupon cease;
provided that the Loan Trustee, before being required to make any such repayment, may at the expense of the Owner cause
to be mailed to each such Noteholder notice that such money remains unclaimed and that, after a date specified in such notice which
shall not be less than 30 days from the date of mailing, any unclaimed balance of such money then remaining will be repaid to the
Owner as provided herein.

 

Section 3.15. Directions
by the Subordination Agent. So long as the Subordination Agent is a Noteholder, notwithstanding anything contained herein or
in any other Financing Agreement to the contrary, in exercising its right to vote the Equipment Notes held by it, or in giving
or taking any direction, consent, request, demand, instruction, authorization, notice, waiver or other action provided by this
Indenture or in respect of the Equipment Notes to be given or taken by a Noteholder (each such vote or other action, a “Direction”)
in respect of such Equipment Notes, the Subordination Agent may act in accordance with any votes, directions, consents, requests,
demands, instructions, authorizations, notices, waivers or other actions given or taken by any applicable Pass Through Trustee
or the Controlling Party pursuant to the Intercreditor Agreement, including without limitation pursuant to Section 2.06, Article
IV or Section 8.01(b) thereof. The Subordination Agent shall be permitted (x) to give a Direction with respect to less than
the entire principal amount of any single Equipment Note held by it, and (y) to give different Directions with respect to
different portions of the principal amount of any single Equipment Note held by it. Any Direction given by the Subordination Agent
at any time with respect to more than a majority in aggregate unpaid principal amount of all of the Equipment Notes issued and
then outstanding hereunder shall be deemed to have been given by a Majority in Interest of Noteholders.

 

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ARTICLE IV

 

RECEIPT, DISTRIBUTION AND APPLICATION OF
INCOME FROM THE COLLATERAL

 

Section 4.01. Basic
Distributions. Except as otherwise provided in Section 3.02, Section 3.03 and Section 3.04, each periodic payment by the Owner
of regularly scheduled installments of principal or interest on the Equipment Notes received by the Loan Trustee shall be promptly
distributed in the following order of priority:

 

first,
so much of such payment as shall be required to pay in full the aggregate amount of the payment or payments of principal amount
and interest (as well as any interest on any overdue principal amount and, to the extent permitted by applicable law, on any overdue
interest and any other overdue amounts) then due under all Series A Equipment Notes shall be distributed to the Noteholders of
Series A Equipment Notes ratably, without priority of one over the other, in the proportion that the amount of such payment or
payments then due under each Series A Equipment Note bears to the aggregate amount of the payments then due under all Series A
Equipment Notes;

 

second,
after giving effect to clause “first” above, so much of such payment remaining as shall be required to pay in full
the aggregate amount of the payment or payments of principal amount and interest (as well as any interest on any overdue principal
amount and, to the extent permitted by applicable law, on any overdue interest and any other overdue amounts) then due under all
Series B Equipment Notes shall be distributed to the Noteholders of Series B Equipment Notes ratably, without priority of one over
the other, in the proportion that the amount of such payment or payments then due under each Series B Equipment Note bears to the
aggregate amount of the payments then due under all Series B Equipment Notes;

 

third,
after giving effect to clause “second” above (if any Additional Series Equipment Notes of a specified series shall
have been issued hereunder and except as this clause “third” may be modified pursuant to clause (xv) of Section 9.1
in connection with any issuance or redemption and issuance from time to time of Additional Series Equipment Notes of one or more
series), so much of such payment remaining as shall be required to pay in full the aggregate amount of the payment or payments
of principal amount and interest (as well as any interest on any overdue principal amount and, to the extent permitted by applicable
law, on any overdue interest and any other overdue amounts) then due under all Additional Series Equipment Notes of such series
shall be distributed to the Noteholders of Additional Series Equipment Notes of such series ratably, without priority of one over
the other, in the proportion that the amount of such payment or payments then due under each Additional Series Equipment Note of
such series bears to the aggregate amount of the payments then due under all Additional Series Equipment Notes of such series;
and

 

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fourth,
the balance, if any, of such installment remaining thereafter shall be distributed to the Owner.

 

Section 4.02. Event
of Loss; Mandatory Redemption; Voluntary Redemption. Except as otherwise provided in Section 3.03 and Section 3.04 and subject
to the following proviso, any payments (including insurance and requisition proceeds) received by the Loan Trustee as the result
of (a) an Event of Loss with respect to the Airframe or the Airframe and one or more Engines installed thereon (including
amounts paid by the Owner pursuant to Section 2.10), (b) due to illegality affecting the Lease, (c) due to termination
of the Lease or any Related Lease or (d) a voluntary redemption of Equipment Notes pursuant to Section 2.11 shall be applied
to redemption of Equipment Notes pursuant to Section 2.10 or Section 2.11, as applicable, and to payment of all other Secured Obligations
and Related Secured Obligations then due by applying such payments in the following order of priority:

 

first, so much of such payments as shall be required (i) to reimburse
the Loan Trustee and the Noteholders for any reasonable costs or expenses actually incurred in connection with such redemption
for which they are entitled to reimbursement, or indemnity by the Owner, under the Financing Agreements; and then (ii) to
pay all other Secured Obligations then due to the Noteholders, the Loan Trustee and the other Indenture Indemnitees under this
Indenture, the Aircraft Security Documents, the Participation Agreement or the Equipment Notes (other than amounts specified in
clauses “second” and “third” below);

 

second, after giving effect
to clause “first” above:

 

(i)          so
much of such payments remaining as shall be required to pay the amounts specified in subclause (i) of clause “third”
of Section 3.03 plus Make-Whole Amount, if any, then due and payable in respect of the Series A Equipment Notes;

 

(ii)         after
giving effect to subclause (i) above, so much of such payments remaining as shall be required to pay the amounts specified in subclause
(ii) of clause “third” of Section 3.03 plus Make-Whole Amount, if any, then due and payable in respect of the Series
B Equipment Notes;

 

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(iii)        after
giving effect to subclause (ii) above (if any Additional Series Equipment Notes of a specified series shall have been issued hereunder
and except as this subclause (iii) may be modified pursuant to clause (xv) of Section 9.01 in connection with the original issuance
or subsequent redemption and issuance from time to time of Additional Series Equipment Notes), so much of such payments remaining
as shall be required to pay the amounts specified in subclause (iii) of clause “third” of Section 3.03 plus Make-Whole
Amount, if any, then due and payable in respect of such Additional Series Equipment Notes of such series;

 

third,
after giving effect to clause “second” above, so much of such payments remaining as shall be required to pay the amounts
as provided in clause “third” of Section 3.03 in respect of Related Secured Obligations under each Defaulted Operative
Indenture other than subclause (ix) of clause “third” of Section 3.03; and

 

fourth,
the balance, if any, of such payments shall be distributed as provided in clause “fourth” of Section 3.03;

 

provided that (i) in the case an
Event of Loss with respect to the Airframe or the Airframe and one or more Engines installed thereon, (x) any payments,
including any insurance, condemnation, requisition or similar proceeds, resulting from such Event of Loss that are received by
the Loan Trustee shall be held or disbursed subject to Sections 9(f) and 10(c) of the Lease (provided that any such
proceeds that are held by the Loan Trustee shall be invested as provided in Section 5.06); and (y) no Make-Whole Amount
shall be payable on the Equipment Notes in connection with their redemption as a result of such Event of Loss; and (ii)
in the case of a redemption of Equipment Notes pursuant to Section 2.11(b), if a particular Series is not being redeemed pursuant
thereto, no application of funds shall be made pursuant to the paragraphs in clause “second” above that refer to such
Series in connection with such redemption.

 

Section 4.03. Payments
After Indenture Event of Default. Except as otherwise provided in Section 3.04, all payments received and amounts held or realized
by the Loan Trustee (including any amounts realized by the Loan Trustee from the exercise of any remedies pursuant to Article IV
or pursuant to any Aircraft Security Document) after both an Indenture Event of Default shall have occurred and be continuing and
the Equipment Notes shall have become due and payable pursuant to Section 4.02(a), as well as all payments or amounts then held
by the Loan Trustee as part of the Collateral, shall be promptly distributed by the Loan Trustee in the following order of priority:

 

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first,
so much of such payments or amounts as shall be required to (i) reimburse the Loan Trustee or WTC, to the extent the Loan Trustee
or WTC is entitled to be reimbursed or indemnified under the Financing Agreements, for any Tax, expense or other loss (including,
without limitation, all amounts to be expended at the expense of, or charged upon the tolls, rents, revenues, issues, products
and profits of, the property included in the Collateral pursuant to Section 4.02(a)) actually incurred by the Loan Trustee or
WTC (to the extent not previously reimbursed), the expenses of any sale, taking or other proceeding, reasonable attorneys’
fees and expenses, court costs and any other expenditures actually incurred or expenditures or advances made by the Loan Trustee,
WTC or the Noteholders in the protection, exercise or enforcement of any right, power or remedy or any damages sustained by the
Loan Trustee, WTC or any Noteholder, liquidated or otherwise, upon such Indenture Event of Default shall be applied by the Loan
Trustee as between itself, WTC and the Noteholders in reimbursement of such expenses and any other expenses for which the Loan
Trustee, WTC or the Noteholders are entitled to reimbursement under any Financing Agreement, and (ii) all Secured Obligations
then due to the other Indenture Indemnitees under this Indenture, the Participation Agreement or the Equipment Notes (other than
amounts specified in clauses “second” and “third” below); and in case the aggregate amount so to be distributed
shall be insufficient to pay as aforesaid in clauses (i) and (ii), then ratably, without priority of one over the other, in proportion
to the amounts owed each hereunder;

 

second,
after giving effect to clause “first” above, so much of such payments or amounts remaining as shall be required to
reimburse the then existing or prior Noteholders for payments made pursuant to Section 5.03 (to the extent not previously reimbursed)
shall be distributed to such then existing or prior Noteholders ratably, without priority of one over the other, in accordance
with the amount of the payment or payments made by each such then existing or prior Noteholder pursuant to Section 5.03;

 

third, after giving effect
to clause “second” above:

 

(i)          so
much of such payments or amounts remaining as shall be required to pay in full the aggregate unpaid principal amount of all Series
A Equipment Notes, and the accrued but unpaid interest and other amounts due thereon and all other Secured Obligations in respect
of the Series A Equipment Notes to the date of distribution, shall be distributed to the Noteholders of Series A Equipment Notes,
and in case the aggregate amount so to be distributed shall be insufficient to pay in full as aforesaid, then ratably, without
priority of one over the other, in the proportion that (x) the aggregate unpaid principal amount of all Series A Equipment
Notes held by each holder thereof plus the accrued but unpaid interest and other amounts due in respect thereof hereunder or thereunder
to the date of distribution bears to (y) the aggregate unpaid principal amount of all Series A Equipment Notes held by all
holders thereof plus the accrued but unpaid interest and other amounts due thereon to the date of distribution;

 

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(ii)         after
giving effect to subclause (i) above, so much of such payments or amounts remaining as shall be required to pay in full the aggregate
unpaid principal amount of all Series B Equipment Notes, and the accrued but unpaid interest and other amounts due thereon and
all other Secured Obligations in respect of the Series B Equipment Notes to the date of distribution, shall be distributed to the
Noteholders of Series B Equipment Notes, and in case the aggregate amount so to be distributed shall be insufficient to pay in
full as aforesaid, then ratably, without priority of one over the other, in the proportion that (x) the aggregate unpaid
principal amount of all Series B Equipment Notes held by each holder thereof plus the accrued but unpaid interest and other amounts
due in respect thereof hereunder or thereunder to the date of distribution bears to (y) the aggregate unpaid principal amount
of all Series B Equipment Notes held by all holders thereof plus the accrued but unpaid interest and other amounts due thereon
to the date of distribution;

 

(iii)        after
giving effect to subclause (ii) above (if any Additional Series Equipment Notes of a specified series shall have been issued hereunder
and except as this subclause (iii) may be modified pursuant to clause (xv) of Section 9.01 in connection with the original issuance
or subsequent redemption and issuance from time to time of Additional Series Equipment Notes in one or more series), so much of
such payments or amounts remaining as shall be required to pay in full the aggregate unpaid principal amount of all Additional
Series Equipment Notes of such series, and the accrued but unpaid interest and other amounts due thereon and all other Secured
Obligations in respect of such Additional Series Equipment Notes to the date of distribution, shall be distributed to the Noteholders
of Additional Series Equipment Notes of such series, and in case the aggregate amount so to be distributed shall be insufficient
to pay in full as aforesaid, then ratably, without priority of one over the other, in the proportion that (x) the aggregate
unpaid principal amount of all Additional Series Equipment Notes of such series held by each holder thereof plus the accrued but
unpaid interest and other amounts due in respect thereof hereunder or thereunder to the date of distribution bears to (y) the aggregate
unpaid principal amount of all Additional Series Equipment Notes of such series held by all holders thereof plus the accrued but
unpaid interest and other amounts due thereon to the date of distribution;

 

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(iv)        after
giving effect to subclause (iii) above, so much of such payments or amounts remaining as shall be required to pay in full the amounts
then due and covered by clause “first” of Section 3.03 of each Defaulted Operative Indenture shall be distributed to
the Related Loan Trustee under each respective Defaulted Operative Indenture, and in case the aggregate amount so to be distributed
shall be insufficient to pay in full as aforesaid, then ratably, without priority of one over the other, in accordance with the
priorities and prorations in such clause “first”;

 

(v)         after
giving effect to subclause (iv) above, so much of such payments or amounts remaining as shall be required to pay in full the amounts
then due and covered by clause “second” of Section 3.03 of each Defaulted Operative Indenture shall be distributed
to the Related Loan Trustee under each respective Defaulted Operative Indenture, and in case the aggregate amount so to be distributed
shall be insufficient to pay in full as aforesaid, then ratably, without priority of one over the other, in accordance with the
priorities and prorations in such clause “second”;

 

(vi)        after
giving effect to subclause (v) above, so much of such payments or amounts remaining as shall be required to pay in full the aggregate
amount of the payment or payments of principal amount and interest (as well as any interest on any overdue principal amount and,
to the extent permitted by applicable law, on any overdue interest and any other overdue amounts) then due under all Related Series
A Equipment Notes, if any, issued under any Defaulted Operative Indenture shall be distributed to the Related Loan Trustee under
each respective Defaulted Operative Indenture under which any Related Series A Equipment Notes are outstanding, and in case the
aggregate amount so to be distributed shall be insufficient to pay in full as aforesaid, then ratably, without priority of one
over the other, in the proportion that (x) the amount of such payment or payments then due under all Related Series A Equipment
Notes issued under each Defaulted Operative Indenture bears to (y) the aggregate amount of the payments then due under all
Related Series A Equipment Notes issued under all Defaulted Operative Indentures;

 

(vii)       after
giving effect to subclause (vi) above, so much of such payments or amounts remaining as shall be required to pay in full the aggregate
amount of the payment or payments of principal amount and interest (as well as any interest on any overdue principal amount and,
to the extent permitted by applicable law, on any overdue interest and any other overdue amounts) then due under all Related Series
B Equipment Notes, if any, issued under any Defaulted Operative Indenture shall be distributed to the Related Loan Trustee under
each respective Defaulted Operative Indenture under which any Related Series B Equipment Notes are outstanding, and in case the
aggregate amount so to be distributed shall be insufficient to pay in full as aforesaid, then ratably, without priority of one
over the other, in the proportion that (x) the amount of such payment or payments then due under all Related Series B Equipment
Notes issued under each Defaulted Operative Indenture bears to (y) the aggregate amount of the payments then due under all
Related Series B Equipment Notes issued under all Defaulted Operative Indentures;

 

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(viii)      after
giving effect to subclause (vii) above (if any Related Additional Series Equipment Notes of a specified series shall have been
issued under any Related Indenture and except as this subclause (viii) may be modified pursuant to clause (xv) of Section 9.01
in connection with the original issuance or subsequent redemption and issuance from time to time of Related Additional Series Equipment
Notes in one or more series), so much of such payments or amounts remaining as shall be required to pay in full the aggregate amount
of the payment or payments of principal amount and interest (as well as any interest on any overdue principal amount and, to the
extent permitted by applicable law, on any overdue interest and any other overdue amounts) then due under all Related Additional
Series Equipment Notes of such series, if any, issued under any Defaulted Operative Indenture shall be distributed to the Related
Loan Trustee under each respective Defaulted Operative Indenture under which any Related Additional Series Equipment Notes of such
series are outstanding, and in case the aggregate amount so to be distributed shall be insufficient to pay in full as aforesaid,
then ratably, without priority of one over the other, in the proportion that (x) the amount of such payment or payments
then due under all Related Additional Series Equipment Notes of such series issued under each Defaulted Operative Indenture bears
to (y) the aggregate amount of the payments then due under all Related Additional Series Equipment Notes of such series
issued under all Defaulted Operative Indentures; and

 

(ix)         after
giving effect to subclause (viii) above, if any Related Equipment Note is outstanding, any of such payments or amounts remaining
and any invested Permitted Investments shall be held by Loan Trustee in an Eligible Account in accordance with the provisions of
Section 3.07 (and invested as provided in Section 5.06) as additional security for the Related Secured Obligations, and such amounts
(and any investment earnings thereon) shall be distributed from time to time in accordance with the foregoing provisions of this
clause “third” as and to the extent any such Related Secured Obligation shall at any time and from time to time become
due and remain unpaid after the giving of any required notice and the expiration of any applicable grace period; and, upon the
payment in full of all such Related Secured Obligations the balance, if any, of any such remaining amounts and investment earnings
thereon shall be applied as provided in clause “fourth” of this Section 3.03; and

 

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fourth,
the balance, if any, of such payments or amounts remaining thereafter shall be distributed to the Owner.

 

No Make-Whole Amount
shall be payable on the Equipment Notes as a consequence of or in connection with an Indenture Event of Default or the acceleration
of the Equipment Notes.

 

Section 4.04. Certain
Payments. (a) Any payments received by the Loan Trustee for which provision as to the application thereof is made in this Indenture
other than in this Article III shall be applied as provided in those provisions. Without limiting the foregoing, any payments received
by the Loan Trustee which are payable to the Owner pursuant to any of the provisions of this Indenture other than those set forth
in this Article III (including Section 5.06 hereof) shall be so paid to the Owner. Any payments received by the Loan Trustee for
which no provision as to the application thereof is made in this Indenture and for which such provision is made in any other Financing
Agreement shall be applied forthwith to the purpose for which such payment was made in accordance with the terms of such other
Financing Agreement.

 

(b)          Notwithstanding
anything to the contrary contained in this Article III, the Loan Trustee will distribute promptly upon receipt any indemnity payment
received by it from LATAM pursuant to Section 4.03 or 4.04 of the Participation Agreement payable to (i) WTC and the Loan Trustee, (ii) the Subordination Agent, (iii)
any separate or additional trustee appointed pursuant to Section 8.02, (iv) the Pass Through Trustees and (v) each
Liquidity Provider, in each case, directly to the Person entitled thereto. Any payment received by the Loan Trustee from the Owner
under Section 2.14 shall be distributed to the Subordination Agent to be distributed in accordance with Section 2.04(c) of the
Intercreditor Agreement.

 

(c)          Any
payments received by the Loan Trustee not constituting part of the Collateral or otherwise for which no provision as to the application
thereof is made in any Financing Agreement shall be distributed by the Loan Trustee to the Owner. Further, and except as otherwise
provided in Section 3.02 and Section 3.03, all payments received and amounts realized by the Loan Trustee with respect to the Aircraft,
to the extent received or realized at any time after payment in full of all Secured Obligations, as well as any amounts remaining
as part of the Collateral after the occurrence of such payment in full, shall be distributed by the Loan Trustee to the Owner.

 

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Section 4.05. Payments
to the Owner. Any amounts distributed hereunder by the Loan Trustee to the Owner shall be paid to the Owner (within the time
limits contemplated by Section 2.03) by wire transfer of funds of the type received by the Loan Trustee at such office and to such
account or accounts of such entity or entities as shall be designated by notice from the Owner to the Loan Trustee from time to
time.

 

Section 4.06. Cooperation.
Prior to making any distribution under this Article III, the Loan Trustee shall consult with the Related Loan Trustees to determine
amounts payable with respect to the Related Secured Obligations. The Loan Trustee shall cooperate with the Related Loan Trustees
and shall provide such information as shall be reasonably requested by each Related Loan Trustee to enable such Related Loan Trustee
to determine amounts distributable under Article III of its Related Indenture.

 

Section 4.07. Securities Account. In furtherance of the provisions of
Section 3.03, WTC agrees to act as an Eligible Institution under this Indenture in accordance with the provisions of this Indenture
(in such capacity, the “Securities Intermediary”). Except in its capacity as Loan Trustee, WTC waives
any claim or lien against any Eligible Account it may have, by operation of law or otherwise, for any amount owed to it by the
Owner. The Securities Intermediary hereby agrees that, notwithstanding anything to the contrary in this Indenture, (i) any amounts
to be held by the Loan Trustee pursuant to subclause (ix) of clause “third” of Section 3.03 and any investment earnings
thereon or other Permitted Investments in which such amounts are invested will be credited to an Eligible Account (the “Securities
Account”) for which it is a “securities intermediary” (as defined in Section 8-102(a)(14) of the NY UCC)
and the Loan Trustee is the “entitlement holder” (as defined in Section 8-102(a)(7) of the NY UCC) of the “security
entitlement” (as defined in Section 8-102(a)(17) of the NY UCC) with respect to each “financial asset” (as defined
in Section 8-102(a)(9) of the NY UCC) credited to such Eligible Account, (ii) all such amounts, Permitted Investments and
all other property acquired with cash credited to the Securities Account will be credited to the Securities Account, (iii)
all items of property (whether cash, investment property, Permitted Investments, other investments, securities, instruments or
other property) credited to the Securities Account will be treated as a “financial asset” under Article 8 of the NY
UCC, (iv) its “securities intermediary’s jurisdiction” (as defined in Section 8-110(e) of the NY UCC)
with respect to the Securities Account is the State of New York, and (v) all securities, instruments and other property
in order or registered form and credited to the Securities Account shall be payable to or to the order of, or registered in the
name of, the Securities Intermediary or shall be indorsed to the Securities Intermediary or in blank, and in no case whatsoever
shall any financial asset credited to the Securities Account be registered in the name of the Owner, payable to or to the order
of the Owner or specially indorsed to the Owner except to the extent the foregoing have been specially indorsed by the Owner to
the Securities Intermediary or in blank. The Loan Trustee agrees that it will hold (and will indicate clearly in its books and
records that it holds) its “security entitlements” to the “financial assets” credited to the Securities
Account in trust for the benefit of the Noteholders, each Indenture Indemnitee and each Related Indenture Indemnitee as set forth
in this Indenture. The Owner acknowledges that, by reason of the Loan Trustee being the “entitlement holder” in respect
of the Securities Account as provided above, the Loan Trustee shall have the sole right and discretion, subject only to the terms
of this Indenture, to give all “entitlement orders” (as defined in Section 8-102(a)(8) of the NY UCC) with respect
to the Securities Account and any and all financial assets and other property credited thereto to the exclusion of the Owner. If
any Person asserts any Lien (including, without limitation, any writ, garnishment, judgment, warrant of attachment, execution or
similar process) against the Securities Account or any financial asset carried therein, WTC will promptly notify the Loan Trustee
and the Owner thereof.

 

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ARTICLE V

 

EVENTS OF DEFAULT; REMEDIES OF LOAN TRUSTEE

 

Section 5.01. Events
of Default. Subject to the proviso at the end of this Section 4.01, each of the following events shall constitute an “Indenture
Event of Default” whether such event shall be voluntary or involuntary or shall come about or be effected by operation
of law or pursuant to or in compliance with any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body and each such Indenture Event of Default shall be deemed to exist and continue so long as,
but only as long as, it shall not have been remedied or explicitly waived:

 

(a)          the
Owner shall fail to make any payment within 15 days after the same shall have become due of principal amount of, interest on, or
Make-Whole Amount, if any, with respect to, any Equipment Note;

 

(b)          the
Owner shall fail to make payment when the same shall become due of any amount (other than amounts referred to in Section 4.01(a))
due hereunder, under any Equipment Note or under any other Financing Agreement, and such failure shall continue unremedied for
30 days after the receipt by the Owner of written notice thereof from the Loan Trustee or any Noteholder;

 

(c)          a
Lease Event of Default shall have occurred and be continuing;

 

(d)          the
Owner shall fail to perform or observe any other covenant, condition or agreement to be performed or observed by it under any Financing
Agreement, and such failure shall continue unremedied for a period of 60 days after receipt by the Owner of written notice thereof
from the Loan Trustee or any Noteholder, provided that, if such failure is capable of being remedied, no such failure shall
constitute an Indenture Event of Default for a period of one year after such notice is received by the Owner so long as the Owner
is diligently proceeding to remedy such failure;

 

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(e)          any
representation or warranty made by LATAM or the Owner in any Financing Agreement shall prove to have been incorrect in any material
respect at the time made, and such incorrectness shall continue to be material to the transactions contemplated hereby and shall
continue unremedied for a period of 60 days after receipt by LATAM or the Owner of written notice thereof from the Loan Trustee
or any Noteholder, provided that, if such incorrectness is capable of being remedied, no such incorrectness shall constitute
an Indenture Event of Default for a period of one year after such notice is received by the Owner so long as the Owner is diligently
proceeding to remedy such incorrectness;

 

(f)          the
Owner shall consent to the appointment of or the taking of possession by a receiver, trustee or liquidator of itself or of a substantial
part of its property, shall admit in writing its inability to pay its debts generally as they come due or shall make a general
assignment for the benefit of creditors;

 

(g)          the
Owner shall file a voluntary petition in bankruptcy or a voluntary petition or an answer seeking reorganization, liquidation or
other relief as a debtor in a case under any bankruptcy laws or insolvency laws (as in effect at such time) or an answer admitting
the material allegations of a petition filed against the Owner as a debtor in any such case, or the Owner shall seek relief as
a debtor, by voluntary petition, answer or consent, under the provisions of any other bankruptcy or other similar law providing
for the reorganization or winding-up of corporations (as in effect at such time), or the Owner shall seek an agreement, composition,
extension or adjustment with its creditors under such laws;

 

(h)          an
order, judgment or decree shall be entered by any court of competent jurisdiction appointing, without the consent of the Owner,
a receiver, trustee or liquidator of the Owner or sequestering any substantial part of its property, or granting any other relief
in respect of the Owner as a debtor under any bankruptcy laws or insolvency laws (as in effect at such time), and any such order,
judgment or decree of appointment or sequestration shall remain in force undismissed, unstayed or unvacated for a period of 90
days after the date of entry thereof;

 

(i)          a
petition against the Owner as a debtor in a case under the federal bankruptcy laws or other insolvency laws (as in effect at such
time) is filed and not withdrawn or dismissed within 90 days thereafter, or if, under the provisions of any law providing for reorganization
or winding-up of corporations that may apply to the Owner, any court of competent jurisdiction assumes jurisdiction, custody or
control of the Owner or of any substantial part of its property and such jurisdiction, custody or control shall remain in force
unrelinquished, unstayed or unterminated for a period of 90 days;

 

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(j)          an
“Indenture Event of Default” (as defined in any Related Indenture) shall have occurred and be continuing; or

 

(k)          a
breach of Section 6.03(c) of the Participation Agreement shall have occurred;

 

provided that
notwithstanding anything to the contrary contained in this Section 4.01, any failure of the Owner to perform or observe any covenant,
condition or agreement shall not constitute an Indenture Event of Default if such failure arises by reason of an event referred
to in the definition of “Event of Loss” so long as the Lessee is continuing to comply with all of the terms of Section
9 of the Lease.

 

Section 5.02. Remedies.
(a) If an Indenture Event of Default shall have occurred and be continuing and so long as the same shall continue unremedied, then
and in every such case the Loan Trustee may, and upon the written instructions of a Majority in Interest of Noteholders, the Loan
Trustee shall, do one or more of the following to the extent permitted by, and subject to compliance with the requirements of,
applicable law then in effect:

 

(i)          declare
by written notice to the Owner all the Equipment Notes to be due and payable, whereupon the aggregate unpaid principal amount of
all Equipment Notes then outstanding, together with accrued but unpaid interest thereon and all other amounts due thereunder (but
for the avoidance of doubt, without Make-Whole Amount), shall immediately become due and payable without presentment, demand, protest
or other notice, all of which are hereby waived; provided that if an Indenture Event of Default referred to in Section 4.01(f),
Section 4.01(g), Section 4.01(h), Section 4.01(i) or a Lease Event of Default under Section 13(g), (h), (i), (j) or (k) of the
Lease shall have occurred and be continuing, then and in every such case the unpaid principal amount of the Equipment Notes then
outstanding, together with accrued but unpaid interest thereon and all other amounts due thereunder (but for the avoidance of doubt,
without Make-Whole Amount), shall immediately and without further act become due and payable without presentment, demand, protest
or notice, all of which are hereby waived; and, following such declaration or deemed declaration:

 

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(ii)         (A)
cause the Owner, upon the written demand of the Loan Trustee, at the Owner’s expense, to deliver promptly, and the Owner
shall deliver promptly, all or such part of the Airframe or any Engine as the Loan Trustee may so demand to the Loan Trustee or
its order, or, if the Owner shall have failed to so deliver the Airframe or any Engine after such demand, the Loan Trustee, at
its option, may enter upon the premises where all or any part of the Airframe or any Engine are located and take immediate possession
of and remove the same together with any engine which is not an Engine but which is installed on the Airframe, subject to all of
the rights of the owner, lessor, lienor or secured party of such engine; provided that the Airframe with an engine (which
is not an Engine) installed thereon may be flown or returned only to a location within the continental United States, and such
engine shall be held at the expense of the Owner for the account of any such owner, lessor, lienor, secured party; (B) sell
all or any part of the Airframe and any Engine at public or private sale, whether or not the Loan Trustee shall at the time have
possession thereof, as the Loan Trustee may determine, or otherwise dispose of, hold, use, operate, lease to others or keep idle
all or any part of the Airframe or such Engine as the Loan Trustee, in its sole discretion, determines, all free and clear of any
rights or claims of the Owner and LATAM, and the proceeds of such sale or disposition shall be applied as set forth in Section
3.03; (C) exercise any and all of the remedies pursuant to Section 14 of the Lease and pursuant to any Permitted Sublease
then in effect, or (D) exercise any other remedy of a secured party under the Uniform Commercial Code of the State of New
York (whether or not in effect in the jurisdiction in which enforcement is sought). In furtherance of the foregoing, the parties
hereto agree that the exercise of remedies hereunder and the Aircraft Security Documents is subject to other applicable law, including
without limitation, the NY UCC and applicable bankruptcy and insolvency laws, and that nothing herein derogates from the rights
of the Owner or the Loan Trustee under or pursuant to such other applicable law, including without limitation, the NY UCC or applicable
bankruptcy and insolvency laws.

 

Upon every such taking
of possession of Collateral under this Section 4.02, the Loan Trustee may, from time to time, at the expense of the Collateral,
make all such expenditures for maintenance, insurance, repairs, alterations, additions and improvements to and of the Collateral
as it deems necessary to cause the Collateral to be in such condition as required by the provisions of this Indenture and any Aircraft
Security Document. In each such case, the Loan Trustee may maintain, use, operate, store, insure, lease, control, manage or dispose
of the Collateral and may exercise all rights and powers of the Owner relating to the Collateral as the Loan Trustee reasonably
deems best, including the right to enter into any and all such agreements with respect to the maintenance, use, operation, storage,
insurance, leasing, control, management or disposition of the Collateral or any part thereof as the Loan Trustee may reasonably
determine; and the Loan Trustee shall be entitled to collect and receive directly all tolls, rents, revenues, issues, income, products
and profits of the Collateral and every part thereof, without prejudice, however, to the rights of the Loan Trustee under any provision
of this Indenture to collect and receive all cash held by, or required to be deposited with, the Loan Trustee hereunder. Such tolls,
rents, revenues, issues, income, products and profits shall be applied to pay the expenses of the use, operation, storage, insurance,
leasing, control, management or disposition of the Collateral, and of all maintenance, repairs, replacements, alterations, additions
and improvements, and to make all payments that the Loan Trustee is required or elects to make, if any, for Taxes, insurance or
other proper charges assessed against or otherwise imposed upon the Collateral or any part thereof, and all other payments which
the Loan Trustee is required or expressly authorized to make under any provision of this Indenture, as well as just and reasonable
compensation for the services of the Loan Trustee, and shall otherwise be applied in accordance with Article III.

 

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If an Indenture Event
of Default shall have occurred and be continuing and the Equipment Notes shall either have been accelerated pursuant to this Section
4.02 or have become due at maturity and the Loan Trustee shall be entitled to exercise rights hereunder, at the request of the
Loan Trustee, the Owner shall promptly execute and deliver to the Loan Trustee such instruments of title and other documents as
the Loan Trustee reasonably deems necessary or advisable to enable the Loan Trustee or an agent or representative designated by
the Loan Trustee, at such time or times and place or places as the Loan Trustee may specify, to obtain possession of all or any
part of the Collateral to which the Loan Trustee shall at the time be entitled hereunder. If the Owner shall for any reason fail
to execute and deliver such instruments and documents after such request by the Loan Trustee, the Loan Trustee may seek a judgment
conferring on the Loan Trustee the right to immediate possession and requiring the Owner to execute and deliver such instruments
and documents to the Loan Trustee, to the entry of which judgment the Owner hereby specifically consents to the fullest extent
it may lawfully do so. All actual and reasonable expenses of obtaining such judgment or of pursuing, searching for and taking such
property shall, until paid, be secured by the Lien of this Indenture.

 

(b)          The
Loan Trustee shall give the Owner at least 30 days’ prior written notice of any public sale or of the date on or after which
any private sale will be held, which notice the Owner hereby agrees to the extent permitted by applicable law is reasonable notice.
Any Noteholder or Noteholders shall be entitled to bid for and become the purchaser of any Collateral offered for sale pursuant
to this Section 4.02 and to credit against the purchase price bid at such sale by such Noteholders all or any part of the unpaid
amounts owing to such Noteholders under the Financing Agreements and secured by the Lien of this Indenture (but only to the extent
that such purchase price would have been paid to such Noteholders pursuant to Article III if such purchase price were paid in cash
and the foregoing provision of this Section 4.02(b) were not given effect). The Loan Trustee may exercise such right without possession
or production of the Equipment Notes or proof of ownership thereof, and as a representative of the Noteholders may exercise such
right without notice to the Noteholders as party to any suit or proceeding relating to the foreclosure of any Collateral. The Owner
shall also be entitled to bid for and become the purchaser of any Collateral offered for sale pursuant to this Section 4.02.

 

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(c)          To
the extent permitted by applicable law, the Owner irrevocably appoints, while an Indenture Event of Default has occurred and is
continuing, the Loan Trustee the true and lawful attorney-in-fact of the Owner (which appointment is coupled with an interest)
in its name and stead and on its behalf, for the purpose of effectuating any sale, assignment, transfer or delivery for the enforcement
of the Lien of this Indenture, whether pursuant to foreclosure or power of sale, or otherwise, to execute and deliver all such
bills of sale, assignments and other instruments as may be necessary or appropriate, with full power of substitution, the Owner
hereby ratifying and confirming all that such attorney or any substitute shall do by virtue hereof in accordance with applicable
law; provided that if so requested by the Loan Trustee or any purchaser, the Owner shall ratify and confirm any such sale,
assignment, transfer or delivery, by executing and delivering to the Loan Trustee or such purchaser all bills of sale, assignments,
releases and other proper instruments to effect such ratification and confirmation as may reasonably be designated in any such
request.

 

(d)          At any time after the Loan Trustee has declared the unpaid principal amount
of all Equipment Notes then outstanding to be due and payable, or all Equipment Notes shall have become due and payable as provided
in the proviso to Section 4.02(a)(i), and, in either case, prior to the sale of any part of the Collateral pursuant to this Article
IV, a Majority in Interest of Noteholders, by written notice to the Owner and the Loan Trustee, may rescind and annul such declaration,
whether made by the Loan Trustee on its own accord or as directed or deemed declaration, and its consequences if: (i) there has
been paid to or deposited with the Loan Trustee an amount sufficient to pay all overdue installments of principal amount of, and
interest on, the Equipment Notes, and all other amounts owing under the Financing Agreements, that have become due otherwise than
by such declaration of acceleration and (ii) all other Events of Default, other than nonpayment of principal amount or interest
on the Equipment Notes that have become due solely because of such acceleration, have been either cured or waived; provided
that no such rescission or annulment shall extend to or affect any subsequent default or Indenture Event of Default or impair
any right consequent thereon.

 

(e)          Notwithstanding anything contained herein, (i) so long as the Pass Through
Trustee under any Pass Through Trust Agreement or the Subordination Agent on its behalf is a Noteholder, the Loan Trustee will
not be authorized or empowered to acquire title to any Collateral or take any action with respect to any Collateral so acquired
by it if such acquisition or action would cause any Pass Through Trust to fail to qualify as a “grantor trust” for
U.S. federal income tax purposes, and (ii) the Loan Trustee will not take any action that would violate Section 4.01(a)(ii)
or Section 4.01(a)(iii) of the Intercreditor Agreement.

 

Section 5.03. Remedies
Cumulative. To the extent permitted under applicable law, each and every right, power and remedy specifically given to the
Loan Trustee herein or otherwise in this Indenture shall be cumulative and shall be in addition to every other right, power and
remedy specifically given herein or now or hereafter existing at law, in equity or by statute, and each and every right, power
and remedy whether specifically given herein or otherwise existing may be exercised from time to time and as often and in such
order as may be deemed expedient by the Loan Trustee, and the exercise or the beginning of the exercise of any power or remedy
shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other right, power or remedy.
No delay or omission by the Loan Trustee in the exercise of any right, remedy or power or in the pursuance of any remedy shall,
to the extent permitted by applicable law, impair any such right, power or remedy or be construed to be a waiver of any default
on the part of the Owner or to be an acquiescence therein.

 

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Section 5.04. Discontinuance
of Proceedings. In case the Loan Trustee shall have instituted any proceedings to enforce any right, power or remedy under
this Indenture by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason
or shall have been determined adversely to the Loan Trustee, then and in every such case the Owner and the Loan Trustee shall,
subject to any determination in such proceedings, be restored to their former positions and rights hereunder with respect to the
Collateral, and all rights, remedies and powers of the Loan Trustee shall continue as if no such proceedings had been undertaken
(but otherwise without prejudice).

 

Section 5.05. Waiver of Past Defaults. Upon written instruction from
a Majority in Interest of Noteholders, the Loan Trustee shall waive any past default hereunder and its consequences, and upon any
such waiver such default shall cease to exist and any Indenture Event of Default arising therefrom shall be deemed to have been
cured for every purpose of this Indenture and the other Financing Agreements, but no such waiver shall extend to any subsequent
or other default or impair any right consequent thereon; provided that in the absence of written instructions from each
of the affected Noteholders, the Loan Trustee shall not waive any default (i) in the payment of the principal amount, Make-Whole
Amount, if any, or interest due under any Equipment Note then outstanding (other than with the consent of the holder thereof),
or (ii) in respect of a covenant or provision hereof which, under Article IX, cannot be modified or amended without the
consent of each such affected Noteholder.

 

Section 5.06. Noteholders
May Not Bring Suit Except Under Certain Conditions. A Noteholder of any Series shall not have the right to institute any suit,
action or proceeding at law or in equity or otherwise with respect to this Indenture for the appointment of a receiver or for the
enforcement of any other remedy under this Indenture, unless:

 

(1)         such
Noteholder previously shall have given written notice to the Loan Trustee of a continuing Indenture Event of Default;

 

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(2)         a
Majority in Interest of Noteholders shall have requested the Loan Trustee in writing to institute such action, suit or proceeding
and shall have offered to the Loan Trustee indemnity as provided in Section 5.03;

 

(3)         the
Loan Trustee shall have refused or neglected to institute any such action, suit or proceeding for 60 days after receipt of such
notice, request and offer of indemnity; and

 

(4)         no
direction inconsistent with such written request shall have been given to the Loan Trustee during such 60-day period by a Majority
in Interest of Noteholders.

 

Except to the extent provided in the Intercreditor Agreement or in any Indenture
Supplement, it is understood and intended that no one or more of the Noteholders of any Series shall have any right in any manner
whatsoever hereunder or under the Indenture Supplement or under the Equipment Notes of such Series to (i) surrender, impair, waive,
affect, disturb or prejudice any Collateral, or the Lien of the Indenture on any Collateral, or the rights of the Noteholders of
such Series, (ii) obtain or seek to obtain priority over or preference with respect to any other such Noteholder of such
Series or (iii) enforce any right under this Indenture, except in the manner provided in this Indenture and for the equal,
ratable and common benefit of all the Noteholders of such Series subject to the provisions of this Indenture.

 

Section 5.07. Appointment
of a Receiver. To the extent permitted by applicable law, if an Indenture Event of Default shall have occurred and be continuing,
and the Equipment Notes either shall have been accelerated pursuant to Section 4.02 or have become due at maturity, the Loan Trustee
shall, as a matter of right, be entitled to the appointment of a receiver (who may be the Loan Trustee or any successor or nominee
thereof) for all or any part of the Collateral, whether such receivership be incidental to a proposed sale of the Collateral or
the taking of possession thereof or otherwise, and, to the extent permitted by applicable law, the Owner hereby consents to the
appointment of such a receiver and will not oppose any such appointment. Any receiver appointed for all or any part of the Collateral
shall be entitled to exercise all the rights and powers of the Loan Trustee with respect to the Collateral.

 

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ARTICLE VI

 

DUTIES OF THE LOAN TRUSTEE

 

Section 6.01. Notice
of Indenture Event of Default. If the Loan Trustee shall have knowledge of an Indenture Event of Default or of a default arising
from a failure by the Owner to pay when due any payment of principal amount, interest, or Make-Whole Amount, if any, due and payable
under any Equipment Note, the Loan Trustee shall promptly give notice thereof to the Owner, each Liquidity Provider and each Noteholder
by telegram, cable, facsimile or telephone (to be promptly confirmed in writing). Subject to the terms of Section 4.02, Section
4.05, Section 5.02 and Section 5.03, the Loan Trustee shall take such action, or refrain from taking such action, with respect
to such default or Indenture Event of Default (including with respect to the exercise of any rights or remedies hereunder) as the
Loan Trustee shall be instructed in writing by a Majority in Interest of Noteholders. Subject to the provisions of Section 5.03,
if the Loan Trustee shall not have received instructions as above provided within 20 Business Days after giving notice of such
default or Indenture Event of Default to the Noteholders, the Loan Trustee may, subject to instructions thereafter received pursuant
to the preceding provisions of this Section 5.01, take such action, or refrain from taking such action with respect to such default
or Indenture Event of Default as it shall reasonably determine to be advisable and in the best interests of the Noteholders, but
shall be under no duty to take or refrain from taking any action. The Loan Trustee shall use the same degree of care and skill
in connection therewith as a prudent person would use under the circumstances in the conduct of his or her own affairs. The Loan
Trustee may not sell the Airframe or any Engine without the consent of a Majority in Interest of Noteholders.

 

For all purposes of this Indenture, in the absence of actual knowledge, the
Loan Trustee shall not be deemed to have knowledge of a default or an Indenture Event of Default unless notified in writing by
the Owner or one or more Noteholders; and “actual knowledge” (as used in the foregoing clause) of the Loan Trustee
shall mean actual knowledge of an officer in the Corporate Trust Office of the Loan Trustee; provided that the Loan Trustee
shall be deemed to have actual knowledge of (i) the failure of the Owner to pay any principal amount of, or interest on, the Equipment
Notes directly to the Loan Trustee when the same shall become due or (ii) the failure of Lessee to maintain insurance as
required under Section 10 of the Lease if the Loan Trustee receives written notice thereof from an insurer or insurance broker.

 

Section 6.02. Action upon Instructions; Certain Rights and Limitations.
Subject to the terms of Article IV and this Article V, upon the written instructions at any time of a Majority in Interest of Noteholders,
the Loan Trustee shall promptly (i) give such notice, direction, consent, waiver or approval or exercise such right, remedy or
power hereunder in respect of all or any part of the Collateral or (ii) take such other action permitted hereunder, in each
case, as is specified in such instructions.

 

The Loan Trustee will
cooperate with the Owner in connection with the recording, filing, re-recording and refiling of the Indenture and any supplements
to it and any financing statements or other documents as are necessary to maintain the perfection hereof or otherwise protect the
security interests created hereby. The Loan Trustee shall furnish to the Owner upon request such information and copies of such
documents as the Loan Trustee may have and as are necessary for the Owner to perform its duties under Article II hereof.

 

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Section 6.03. Indemnification.
The Loan Trustee shall not be required to take any action or refrain from taking any action under Section 5.01 (other than the
first sentence thereof) or Section 5.02 or Article IV unless it shall have received indemnification against any risks incurred
in connection therewith in form and substance reasonably satisfactory to it, including, without limitation, adequate advances against
costs that may be actually incurred by it in connection therewith. The Loan Trustee shall not be required to take any action under
Section 5.01 (other than the first sentence thereof) or Section 5.02 or Article IV, nor shall any other provision of any Financing
Agreement be deemed to impose a duty on the Loan Trustee to take any action, if the Loan Trustee shall have been advised by outside
counsel that such action is contrary to the terms hereof or is otherwise contrary to law.

 

Section 6.04. No
Duties Except as Specified in Indenture or Instructions. The Loan Trustee shall not have any duty or obligation to manage,
control, lease, use, sell, operate, store, dispose of or otherwise deal with the Aircraft or any other part of the Collateral,
or to otherwise take or refrain from taking any action under, or in connection with, this Indenture, except as expressly provided
by the terms of this Indenture or the Participation Agreement or as expressly provided in written instructions received pursuant
to the terms of Section 5.01 or Section 5.02; and no implied duties or obligations shall be read into this Indenture against the
Loan Trustee.

 

Section 6.05. No
Action Except under Indenture or Instructions. The Loan Trustee agrees that it will not manage, control, use, sell, lease,
operate, store, dispose of or otherwise deal with the Aircraft or any other part of the Collateral except in accordance with the
powers granted to, or the authority conferred upon, the Loan Trustee pursuant to this Indenture and in accordance with the express
terms hereof.

 

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Section 6.06. Investment of Amounts Held by the Loan Trustee. Any monies
(including for the purpose of this Section 5.06 any amounts held by the Loan Trustee pursuant to Section 3.02, Section 3.03 or
Section 3.07 or pursuant to any provision of any other Financing Agreement providing for amounts to be held by the Loan Trustee
which are not distributed pursuant to the other provisions of Article III, or any cash received by the Loan Trustee pursuant to
Section 10 of the Lease or otherwise, or Permitted Investments purchased by the use of such cash pursuant to this Section 5.06
or any cash constituting the proceeds of the maturity, sale or other disposition of any such Permitted Investments) held by the
Loan Trustee hereunder as part of the Collateral, until paid out by the Loan Trustee as herein provided, (i) subject to clause
(ii) below and Section 3.07, may be carried by the Loan Trustee on deposit with itself or on deposit to its account with any bank,
trust company or national banking association incorporated or doing business under the laws of the United States or one of the
states thereof having combined capital and surplus and retained earnings of at least $100,000,000, and the Loan Trustee shall not
have any liability for interest upon any such monies except as otherwise agreed in writing with the Owner, or (ii) at any
time and from time to time, so long as no Indenture Event of Default shall have occurred and be continuing, at the request of the
Owner, shall be invested and reinvested in Permitted Investments as specified in such request (if such investments are reasonably
available for purchase) and sold, in any case at such prices, including accrued interest or its equivalent, as are set forth in
such request, and, as provided in Section 3.07, such Permitted Investments shall be held by the Loan Trustee in trust as part of
the Collateral until so sold; provided that the Owner shall upon demand pay to the Loan Trustee the amount of any loss realized
upon maturity, sale or other disposition of any such Permitted Investment and, so long as no Indenture Event of Default or Payment
Default shall have occurred and be continuing, the Owner shall be entitled to receive from the Loan Trustee, and the Loan Trustee
shall promptly pay to the Owner, any profit, income, interest, dividend or gain realized upon maturity, sale or other disposition
of any Permitted Investment. All Permitted Investments held by the Loan Trustee pursuant to this Section 5.06 shall be held pursuant
to Section 3.07. If an Indenture Event of Default or Payment Default shall have occurred and be continuing, any net income, profit,
interest, dividend or gain realized upon maturity, sale or other disposition of any Permitted Investment shall be held as part
of the Collateral and shall be applied by the Loan Trustee at the same time, on the same conditions and in the same manner as the
amounts in respect of which such income, profit, interest, dividend or gain was realized are required to be distributed in accordance
with the provisions hereof pursuant to which such amounts were required to be held. Subject to Section 3.03, at such time as there
shall not be continuing any such Indenture Event of Default or Payment Default, such income, profit, interest, dividend or gain
shall be paid to the Owner. In addition, subject to Section 3.03, if any moneys or investments are held by the Loan Trustee solely
because an Indenture Event of Default or Payment Default has occurred and is continuing, at such time as there shall not be continuing
any such Indenture Event of Default or Payment Default, such moneys and investments shall be paid to the Owner. The Loan Trustee
shall not be responsible for any losses on any investments or sales of Permitted Investments made pursuant to the procedure specified
in this Section 5.06 other than by reason of its willful misconduct or negligence.

 

ARTICLE VII

 

THE LOAN TRUSTEE

 

Section 7.01. Acceptance
of Trusts and Duties. WTC accepts the trusts and duties created hereby and by the other Aircraft Security Documents and applicable
to it and agrees to perform such duties, but only upon the terms of this Indenture or the other Aircraft Security Documents, as
the case may be, and agrees to receive, handle and disburse all monies received by it as Loan Trustee constituting part of the
Collateral in accordance with the terms hereof. WTC shall have no liability hereunder except (a) for its own willful misconduct
or negligence, (b) as provided in the fourth sentence of Section 2.03 and the last sentence of Section 5.06, (c)
for liabilities that may result from the inaccuracy of any representation or warranty of WTC in the Participation Agreement or
expressly made hereunder and (d) as otherwise expressly provided in the Financing Agreements.

 

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For the avoidance of
doubt, the Loan Trustee shall also be accountable in its capacity as Securities Intermediary with respect to the Security Account,
as set forth in Section 3.07.

 

Section 7.02. Absence
of Certain Duties. Except in accordance with written instructions furnished pursuant to Section 5.01, Section 5.02 or Section
6.06, and except as provided in, and without limiting the generality of, Section 5.02, Section 5.03 and Section 5.04, the Loan
Trustee shall have no duty (a) to see to any registration of the Aircraft or any recording or filing of this Indenture or
any other document, or to see to the maintenance of any such registration, recording or filing, (b) to see to any insurance
on the Aircraft or to effect or maintain any such insurance, whether or not the Owner shall be in default with respect thereto,
(c) to confirm, verify or inquire into the failure to receive any financial statements of the Owner or (d) to inspect
the Aircraft at any time or ascertain or inquire as to the performance or observance of any of the Owner’s covenants hereunder
with respect to the Aircraft.

 

Section 7.03. No
Representations or Warranties as to the Documents. Except as provided in Article V of the Participation Agreement, the Loan
Trustee shall not be deemed to have made any representation or warranty as to the validity, legality, enforceability or sufficiency
of any Financing Agreement or any other document or instrument, or as to the correctness of any statement (other than a statement
by the Loan Trustee) contained herein or therein, except that the Loan Trustee hereby represents and warrants that each of said
specified documents to which it is a party has been or will be duly executed and delivered by one of its officers who is and will
be duly authorized to execute and deliver such document on its behalf.

 

Section 7.04. No
Segregation of Monies; No Interest. Subject to Section 5.06 and except as provided in Section 3.07, all moneys received by
the Loan Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received,
but need not be segregated from other funds except to the extent required by mandatory provisions of law, and neither the Loan
Trustee nor any agent of the Loan Trustee shall be under any liability for interest on any moneys received by it hereunder; provided
that any payments received, or applied hereunder, by the Loan Trustee shall be accounted for by the Loan Trustee so that any
portion thereof paid or applied pursuant hereto shall be identifiable as to the source thereof.

 

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Section 7.05. Reliance;
Agents; Advice of Counsel. The Loan Trustee shall not incur any liability to anyone in acting upon any signature, instrument,
notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper reasonably believed
by it to be genuine and reasonably believed by it to be signed by the proper party or parties. The Loan Trustee may accept a copy
of a resolution of the Board of Directors of any party to the Participation Agreement, certified by the Secretary or an Assistant
Secretary of such party as duly adopted and in full force and effect, as conclusive evidence that such resolution has been duly
adopted and that the same is in full force and effect. As to any fact or matter the manner of ascertainment of which is not specifically
described herein, the Loan Trustee may for all purposes hereof rely on a certificate, signed by a duly authorized officer of the
Owner, as to such fact or matter, and such certificate shall constitute full protection to the Loan Trustee for any action taken
or omitted to be taken by it in good faith in reliance thereon. In the administration of the trusts hereunder, the Loan Trustee
may (a) execute any of the trusts or powers hereof and perform its powers and duties hereunder directly or through agents
(including paying agents or registrars) or attorneys, and (b) at the expense of the Collateral, consult with counsel, accountants
and other skilled Persons to be selected and retained by it; provided that, prior to retaining agents (including paying
agents or registrars), counsel, accountants or other skilled Persons, so long as no Indenture Event of Default exists, the Loan
Trustee shall obtain the Owner’s consent (such consent not to be unreasonably withheld). The Loan Trustee shall not be liable
for anything done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants
or other skilled Persons acting within such counsel’s, accountants’ or Person’s area of competence (so long as
the Loan Trustee shall have exercised reasonable care and judgment in selecting such Persons).

 

Section 7.06. Instructions
from Noteholders. In the administration of the trusts created hereunder, the Loan Trustee shall have the right to seek instructions
from a Majority in Interest of Noteholders should any provision of this Indenture appear to conflict with any other provision herein
or any other Financing Agreement or Pass Through Document or should the Loan Trustee’s duties or obligations hereunder be
unclear, and the Loan Trustee shall incur no liability in refraining from acting until it receives such instructions. The Loan
Trustee shall be fully protected for acting in accordance with any instructions received under this Section 6.06.

 

ARTICLE VIII

 

OPERATING COVENANTS OF THE OWNER

 

Section 8.01. Liens.
The Owner shall not directly or indirectly create, incur, assume or suffer to exist any Lien or with respect to the Airframe or
any Engine, title to any of the foregoing or any interest of the Owner therein, except for Permitted Liens not attributable to
the Owner (a “Permitted Owner Lien”). The Owner shall promptly, at its own expense, take such action
as may be necessary to duly discharge (by bonding or otherwise) any Lien other than a Permitted Owner Lien arising at any time.

 

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Section 8.02. Merger
of Owner. Owner shall not consolidate with or merge into any other Person.

 

Section 8.03. Possession,
Operation and Use.

 

(a)          Possession.
Except pursuant to the Lease, the Owner shall not, without the prior written consent of the Loan Trustee, lease or otherwise in
any manner deliver, transfer or relinquish possession of the Aircraft, the Airframe or any Engine or install any Engine, or permit
any Engine to be installed, on any airframe other than the Airframe.

 

(b)          Identification
of Loan Trustee’s Interest. If not prevented by applicable law or regulations or by any government, the Owner agrees
to cause Lessee to affix as promptly as practicable after the Closing Date and thereafter to maintain in the cockpit of the Aircraft,
in a clearly visible location, and on each Engine, a nameplate bearing the inscription “THIS [AIRFRAME/ENGINE] IS OWNED BY
PARINA LEASING LIMITED, LEASED TO LATAM AIRLINES GROUP S.A., AND SUBJECT TO A MORTGAGE IN FAVOR OF WILMINGTON TRUST COMPANY AS
LOAN TRUSTEE ACTING ON BEHALF OF CERTAIN SECURED PARTIES.” (such nameplate to be replaced, if necessary, with a nameplate
reflecting the name of any successor Loan Trustee). Such placards may be removed temporarily, if necessary, in the course of maintenance
of the Airframe or Engines. If any such nameplate is damaged beyond repair or becomes illegible, the Owner shall promptly replace
it with a nameplate complying with the requirements of this Section.

 

ARTICLE IX

 

SUCCESSOR AND ADDITIONAL TRUSTEES

 

Section 9.01. Resignation
or Removal; Appointment of Successor. (a) The resignation or removal of the Loan Trustee and the appointment of a successor
Loan Trustee shall become effective only upon the successor Loan Trustee’s acceptance of appointment as provided in this
Section 8.01. The Loan Trustee or any successor thereto must resign if at any time it ceases to be eligible in accordance with
the provisions of Section 8.01(c) and may resign at any time without cause by giving at least 60 days’ prior written notice
to the Owner and each Noteholder. In addition, either the Owner (so long as no Indenture Event of Default or Payment Default shall
have occurred and be continuing) or a Majority in Interest of Noteholders (but only with the consent of the Owner so long as no
Indenture Event of Default or Payment Default shall have occurred and be continuing), may at any time remove the Loan Trustee without
cause by an instrument in writing delivered to the Loan Trustee and each Noteholder, and, in case of a removal by a Majority in
Interest of Noteholders, to the Owner. In the case of the resignation or removal of the Loan Trustee, the Owner shall promptly
appoint a successor Loan Trustee. If a successor Loan Trustee shall not have been appointed within 60 days after such notice of
resignation or removal, the Loan Trustee, the Owner or any Noteholder may apply to any court of competent jurisdiction to appoint
a successor Loan Trustee to act until such time, if any, as a successor shall have been appointed as above provided. The successor
Loan Trustee so appointed by such court shall immediately and without further act be superseded by any successor Loan Trustee appointed
as above provided.

 

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(b)          Any
successor Loan Trustee, however appointed, shall execute and deliver to the predecessor Loan Trustee and the Owner an instrument
accepting such appointment and assuming the obligations of the Loan Trustee arising from and after the time of such appointment,
and thereupon such successor Loan Trustee, without further act, shall become vested with all the estates, properties, rights, powers
and duties of the predecessor Loan Trustee hereunder in the trust hereunder applicable to it with like effect as if originally
named the Loan Trustee herein; but nevertheless upon the written request of such successor Loan Trustee, such predecessor Loan
Trustee shall execute and deliver an instrument transferring to such successor Loan Trustee all the estates, properties, rights
and powers of such predecessor Loan Trustee, and such predecessor Loan Trustee shall duly assign, transfer, deliver and pay over
to such successor Loan Trustee all monies or other property and all other books and records, or true, correct and complete copies
thereof, then held by such predecessor Loan Trustee hereunder.

 

(c)          This
Indenture shall at all times have a Loan Trustee, however appointed, that is a bank or trust company having a combined capital
and surplus of at least $100,000,000 (or a combined capital and surplus in excess of $5,000,000 and the obligations of which, whether
now in existence or hereafter incurred, are fully and unconditionally guaranteed by a corporation organized and doing business
under the laws of the United States or any state or territory thereof or the District of Columbia and having a combined capital
and surplus of at least $100,000,000) or a corporation with a net worth of at least $100,000,000, if there be such an institution
willing, able and legally qualified to perform the duties of the Loan Trustee hereunder upon reasonable or customary terms. If
such bank, trust company or corporation publishes reports of conditions at least annually, pursuant to law or to the requirements
of federal, state, territorial or District of Columbia supervising or examining authority, then for the purposes of this Section
8.01(c) the combined capital and surplus of such bank, trust company or corporation shall be deemed to be its combined capital
and surplus as set forth in its most recent report of conditions so published. In case at any time the Loan Trustee shall cease
to be eligible in accordance with the provisions of this Section 8.01(c), the Loan Trustee shall resign immediately in the manner
and with the effect specified in Section 8.01(a).

 

(d)          Any
corporation, bank, trust company or other financial institution into which the Loan Trustee may be merged or converted or with
which it may be consolidated, or any corporation, bank, trust company or other financial institution resulting from any merger,
conversion or consolidation to which the Loan Trustee shall be a party, or any corporation, bank, trust company or other financial
institution to which substantially all the corporate trust business of the Loan Trustee may be transferred, shall, subject to the
terms of Section 8.01(c), be a successor Loan Trustee under this Indenture without further act.

 

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Section
9.02. Appointment of Additional and Separate Trustees. (a) Whenever (i) the Loan Trustee shall deem it necessary or desirable in order to conform
to any law of any jurisdiction in which all or any part of the Collateral shall be situated or to make any claim or bring any suit
with respect to or in connection with the Collateral, any Financing Agreement or any of the transactions contemplated by the Financing
Agreements, (ii) the Loan Trustee shall be advised by counsel satisfactory to it that it is necessary or prudent in the
interests of the Noteholders (and the Loan Trustee shall so advise the Owner) or (iii) the Loan Trustee shall have been
requested to do so by a Majority in Interest of Noteholders, then in any such case, the Loan Trustee and, upon the written request
of the Loan Trustee, the Owner, shall execute and deliver an indenture supplemental hereto and such other instruments as may from
time to time be necessary or advisable either (1) to constitute one or more banks or trust companies or corporations meeting
the requirements of Section 8.01(c) and approved by the Loan Trustee, either to act jointly with the Loan Trustee as additional
trustee or trustees of all or any part of the Collateral or to act as separate trustee or trustees of all or any part of the Collateral,
in each case with such rights, powers, duties and obligations consistent with this Indenture as may be provided in such supplemental
indenture or other instruments as the Loan Trustee or a Majority in Interest of Noteholders may deem necessary or advisable, or
(2) to clarify, add to or subtract from the rights, powers, duties and obligations theretofore granted any such additional
or separate trustee, subject in each case to the remaining provisions of this Section 8.02. If no Indenture Event of Default has
occurred and is continuing, no additional or supplemental trustee shall be appointed without the Owner’s consent. If the
Owner shall not have taken any action requested of it under this Section 8.02(a) that is required by its terms within 15 days of
a written request from the Loan Trustee to do so, or if an Indenture Event of Default shall have occurred and be continuing, the
Loan Trustee may act under the foregoing provisions of this Section 8.02(a) without the concurrence of the Owner, and, to the extent
permitted by applicable law, the Owner hereby irrevocably appoints (which appointment is coupled with an interest) the Loan Trustee
as its agent and attorney-in-fact to act for it under the foregoing provisions of this Section 8.02(a). The Loan Trustee may, in
such capacity, execute, deliver and perform any such supplemental indenture, or any such instrument, as may be required for the
appointment of any such additional or separate trustee or for the clarification of, addition to or subtraction from the rights,
powers, duties or obligations theretofore granted to any such additional or separate trustee, subject in each case to the remaining
provisions of this Section 8.02. In case any additional or separate trustee appointed under this Section 8.02(a) shall become incapable
of acting, resign or be removed, all the assets, property, rights, powers, trusts, duties and obligations of such additional or
separate trustee shall revert to the Loan Trustee until a successor additional or separate trustee is appointed as provided in
this Section 8.02(a).

 

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(b)          No
additional or separate trustee shall be entitled to exercise any of the rights, powers, duties and obligations conferred upon the
Loan Trustee in respect of the custody, investment and payment of monies and all monies received by any such additional or separate
trustee from or constituting part of the Collateral or otherwise payable under any Financing Agreements to the Loan Trustee shall
be promptly paid over by it to the Loan Trustee. All other rights, powers, duties and obligations conferred or imposed upon any
additional or separate trustee shall be exercised or performed by the Loan Trustee and such additional or separate trustee jointly
except to the extent that applicable law of any jurisdiction in which any particular act is to be performed renders the Loan Trustee
incompetent or unqualified to perform such act, in which event such rights, powers, duties and obligations (including the holding
of title to all or part of the Collateral in any such jurisdiction) shall be exercised and performed by such additional or separate
trustee. No additional or separate trustee shall take any discretionary action except on the instructions of the Loan Trustee or
a Majority in Interest of Noteholders. No trustee hereunder shall be personally liable by reason of any act or omission of any
other trustee hereunder, except that the Loan Trustee shall be liable for the consequences of its lack of reasonable care in selecting,
and the Loan Trustee’s own actions in acting with, any additional or separate trustee. Each additional or separate trustee
appointed pursuant to this Section 8.02 shall be subject to, and shall have the benefit of Article IV, Article V, Article VI, Article
VIII, Article IX and Article X hereof insofar as they apply to the Loan Trustee. The powers of any additional or separate trustee
appointed pursuant to this Section 8.02 shall not in any case exceed those of the Loan Trustee hereunder.

 

(c)          If
at any time the Loan Trustee shall deem it no longer necessary or desirable for an additional or separate trustee to be appointed
hereunder or in the event that the Loan Trustee shall have been requested to do so in writing by a Majority in Interest of Noteholders,
the Loan Trustee and, upon the written request of the Loan Trustee, the Owner, shall execute and deliver an indenture supplemental
hereto and all other instruments and agreements necessary or advisable to remove any additional or separate trustee. The Loan Trustee
may act on behalf of the Owner under this Section 8.02(c) when and to the extent it could so act under Section 8.02(a) hereof.
In any case, the Owner may remove an additional or separate trustee in the manner set forth in Section 8.01.

 

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ARTICLE X

 

AMENDMENTS AND WAIVERS

 

Section 10.01. Instructions
of Majority; Limitations.

 

(a)          The
Owner agrees it shall not enter into any amendment of or supplement to the Lease or any other Financing Agreement or execute and
deliver any written waiver or modification of, or consent under, the terms of the Lease or any other Financing Agreement unless
such supplement, amendment, waiver, modification or consent is consented to in writing by the Loan Trustee and, except as otherwise
provided in Section 9.01(c), a Majority in Interest of Noteholders.

 

(b)          Subject
to (c) below, the Loan Trustee agrees with the Noteholders that it shall not enter into any amendment, waiver or modification of,
supplement or consent to this Indenture, or any other Financing Agreement to which it is a party, unless such supplement, amendment,
waiver, modification or consent is consented to in writing by a Majority in Interest of Noteholders, but upon the written request
of a Majority in Interest of Noteholders, the Loan Trustee shall from time to time enter into any such supplement or amendment,
or execute and deliver any such waiver, modification or consent, as may be specified in such request and as may be (in the case
of any such amendment, supplement or modification), to the extent such agreement is required, agreed to by the Owner and, as may
be appropriate, the Lessee, the Manufacturer or the Engine Manufacturer; provided, however, that, without the consent of each holder
of an affected Equipment Note then outstanding and the Liquidity Providers, no such amendment, waiver or modification of the terms
of, or consent under, any thereof, shall (i) modify any of the provisions of this Section 9.01, or of Article II or III or Section
4.01, 4.02 or 5.02 hereof, Section 3(a), (b) or (c), 5(a) or (b), 7(a), 9(a) or (b) or 10(c) of the Lease, Section 9 of the Note
Purchase Agreement, the definitions of “Indenture Event of Default,” “Indenture Default,” “Lease
Event of Default,” “Lease Default,” “Majority in Interest of Noteholders,” “Make-Whole Amount”
or “Noteholder,” or the percentage of Noteholders required to take or approve any action hereunder, (ii) reduce the
amount, or change the time of payment or method of calculation of any amount, of principal amount of any Equipment Note, Make-Whole
Amount, if any, or interest with respect to any Equipment Note (including in respect of any such amounts payable by the Lessee
pursuant to the Lease in connection with the termination of the Lease), or alter or modify the provisions of Article III hereof
with respect to the order of priorities in which distribution thereunder shall be made as among the Noteholders, the Owner and
Lessee, (iii) reduce, modify or amend any indemnities in favor of the Loan Trustee or the Noteholders (except that the Loan Trustee
may consent to any waiver or reduction of an indemnity payable to it), or the other Indenture Indemnitees, (iv) consent to any
change in the Indenture or the Lease which would permit redemption of Equipment Notes earlier than permitted under Section 2.10
or 2.11 hereof or the purchase of the Equipment Notes by the Owner, (v) reduce the amount or extend the time of payment of any
amount payable under Sections 9(a) or 5(a) and (b) of the Lease or Rent or other amount payable by the Lessee pursuant to Section
3(a), (b) or (c), 5(a) or (b), 7(a), 9(a) or (b) or 10(c) of the Lease, in each case as set forth in the Lease, or modify, amend
or supplement the Lease or consent to any assignment of the Lease, in either case releasing Lessee from its obligations in respect
of the payment of any amount payable under Sections 3(e), 9(a) or 5(a) and (b) of the Lease or Rent or other amount payable by
the Lessee pursuant to Section 3(a), (b) or (c), 5(a) or (b), 7(a), 9(a) or (b) or 10(c) of the Lease, in each case as set forth
in the Lease, or altering the absolute and unconditional character of the obligations of Lessee to pay Rent as set forth in Section
3 and Section 11 of the Lease, or (vi) permit the creation of any Lien on the Collateral or any part thereof other than Permitted
Liens or deprive any Noteholder of the benefit of the Lien of this Indenture or any Aircraft Security Document on the Collateral,
as the case may be, except as provided in connection with the exercise of remedies under Article IV hereof; provided, further,
that without the consent of each holder of an affected Related Equipment Note then outstanding, no such amendment, waiver or modification
of terms of, or consent under, any thereof shall modify Section 3.03 or deprive any Related Note Holder of the benefit of the Lien
of this Indenture or any Aircraft Security Document on the Collateral, as the case may be, except as provided in connection with
the exercise of remedies under Article IV hereof. Notwithstanding the foregoing, without the consent of the affected Liquidity
Provider neither the Owner nor the Loan Trustee shall enter into any amendment, waiver or modification of, supplement or consent
to this Indenture or the other Financing Agreements which shall reduce, modify or amend any indemnities in favor of such Liquidity
Provider.

 

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(c)          At
any time after the date hereof, the Owner and the Loan Trustee may enter into one or more agreements supplemental hereto and to
amend the Equipment Notes or any other Financing Agreement without the consent of any Noteholder for any of the following purposes:
(i) to evidence the succession of another Person to the Lessee and the assumption by any such successor of the covenants of the
Lessee contained in any Operative Documents pursuant to Section 6.02(e) of the Participation Agreement; (ii) (a) to cure any defect
or inconsistency herein, in any Financing Agreement or in the Equipment Notes, or to make any change not inconsistent with the
provisions hereof (provided that such change does not adversely affect the interests of any Noteholder in its capacity solely as
Noteholder, or (b) to cure any ambiguity or correct any mistake; (iii) to evidence the succession of another party as the Owner
or Loan Trustee in accordance with the terms hereof or to evidence the succession of a new trustee or securities intermediary hereunder
pursuant hereto, the removal of the trustee or securities intermediary hereunder or to provide for or facilitate the appointment
of any co-trustee or co-trustees or any separate or additional trustee or trustees pursuant to Section 8.02 hereof; (iv) to convey,
transfer, assign, mortgage or pledge any property to or with the Loan Trustee or to make any other provisions with respect to matters
or questions arising hereunder or under the other Financing Agreements so long as such action shall not adversely affect the interests
of the Noteholders in its capacity solely as Noteholder; (v) to correct or amplify the description of any property at any time
subject to the Lien of this Indenture or better to assure, convey and confirm unto the Loan Trustee any property subject or required
to be subject to the Lien of this Indenture, or to subject to the Lien of this Indenture the Airframe or Engines or any Replacement
Engine; (vi) to add to the covenants of the Owner for the benefit of the Noteholders or to surrender any rights or power herein
conferred upon the Owner or the Lessee; (vii) to add to the rights of the Noteholders, the Indenture Indemnitees or Related Indenture
Indemnitees; (viii) to provide for the reissuance of Additional Series Equipment Notes (and any Related Additional Series Equipment
Notes) and for the issuance of pass through certificates issued by any pass through trust that acquires any such Series B Equipment
Notes (and Related Series B Equipment Notes) or Additional Series Equipment Notes (and Related Additional Series Equipment Notes)
and to make changes relating to any of the foregoing, (including, without limitation, to provide for any prefunding mechanism in
connection therewith, or to provide for the relative priority of different series of Additional Series Equipment Notes as between
such series) and to provide for any credit support for any pass through certificates relating to any such Series B Equipment Notes
(and Related Series B Equipment Notes) (including, without limitation, to secure claims for fees, interest, expenses, reimbursement
of advances and other obligations arising from such credit support (including, without limitation, to specify such credit support
as a “Liquidity Facility” and the provider of any such credit support as a “Liquidity Provider” and, if
such Liquidity Facility is to be comprised of more than one instrument, to incorporate appropriate mechanics for multiple Liquidity
Facilities for a single Pass Through Trust)), provided that such Equipment Notes are issued in accordance with the Note Purchase
Agreement and Section 7.01 of the Intercreditor Agreement; and (ix) to include on the Equipment Notes any legend as may be required
by applicable law or as may otherwise be necessary or advisable; (x) to comply with any applicable requirements of the Trust Indenture
Act or any other requirements of applicable law or of any regulatory body; (xi) to give effect to the replacement of a Liquidity
Provider with a Replacement Liquidity Provider and the replacement of a Liquidity Facility with a Replacement Liquidity Facility
therefor, and, if a Replacement Liquidity Facility is to be comprised of more than one instrument as contemplated by the definition
of the term “Replacement Liquidity Facility” in the Intercreditor Agreement, to incorporate appropriate mechanics for
multiple Liquidity Facilities for a single Pass Through Trust; (xii) to give effect to the replacement of the Depositary with a
Replacement Depositary (as defined in the Note Purchase Agreement) and the replacement of a Deposit Agreement with a Replacement
Deposit Agreement (as defined in the Note Purchase Agreement); (xiii) to evidence the succession of a new escrow agent or a new
paying agent under an Escrow Agreement pursuant thereto or the removal of the escrow agent or the paying agent thereunder; and
(xiv) to provide for the issuance, in connection with a refinancing, of Series B Equipment Notes (and Related Series B Equipment
Notes) or the issuance (including the issuance of at any time following the payment in full of any previously issued Additional
Series Equipment Notes of new Additional Series Equipment Notes of the same series designation as such Additional Series Equipment
Notes that have been paid in full) or successive redemption and issuance from time to time of one or more separate series.

 

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Section 10.02. Revocation
and Effect of Consents. Until an amendment or waiver becomes effective, a consent to it by a Noteholder is a continuing consent
by the Noteholder and every subsequent Noteholder, even if notation of the consent is not made on any Equipment Note.

 

Section 10.03. Notation
on or Exchange of Equipment Notes. The Loan Trustee may place an appropriate notation about an amendment or waiver on any Equipment
Note thereafter executed. The Loan Trustee in exchange for such Equipment Notes may execute new Equipment Notes that reflect the
amendment or waiver.

 

Section 10.04. Trustee
Protected. If, in the reasonable opinion of the institution acting as the Loan Trustee hereunder, any document required to
be executed by it pursuant to the terms of Section 9.01 adversely affects any right, duty, immunity or indemnity with respect to
such institution under this Indenture, such institution may in its discretion decline to execute such document.

 

Section 10.05. No
Consent of Individual Indenture Indemnitees Required.

Notwithstanding anything in this
Indenture or any other Financing Agreement to the contrary, when any provision hereof or thereof would otherwise require a consent
of an Indenture Indemnitee, such provision shall always be construed to require only the consent of an Indenture Indemnitee other
than any Indenture Indemnitee covered by clause (ix) of the definition of “Indenture Indemnitees”.

 

ARTICLE XI

 

MISCELLANEOUS

 

Section
11.01. Termination of Indenture. Upon payment in full of the principal amount of, Make-Whole Amount, if any, and interest on and all other amounts
due under all Equipment Notes and provided that (i) there shall then be (x) no other Secured Obligations due to the Noteholders,
the Loan Trustee and the other Indenture Indemnitees hereunder, under the Participation Agreement or any other Financing Agreement,
and (y) no Related Secured Obligations due under any Related Indenture or any other “Financing Agreement” (as
defined in any Related Indenture) and (ii) in the case of any redemption of all of the Equipment Notes pursuant to Section
2.11(a), the provisions of the foregoing clause (i) shall apply and no Related Indenture Event of Default shall have occurred and
be continuing, the Owner shall direct the Loan Trustee to execute and deliver to or as directed in writing by the Owner an appropriate
instrument releasing the Aircraft and the Engines and (subject to subclause (ix) of clause “third” of Section 3.03,
if applicable) all other Collateral from the Lien of this Indenture and the Loan Trustee shall execute and deliver such instrument
as aforesaid; provided that this Indenture and the trusts created hereby shall earlier terminate and this Indenture shall
be of no further force or effect upon any sale or other final disposition by the Loan Trustee of all property constituting part
of the Collateral and the final distribution by the Loan Trustee of all monies or other property or proceeds constituting part
of the Collateral in accordance with the terms hereof. Except as aforesaid otherwise provided, this Indenture and the trusts created
hereby shall continue in full force and effect in accordance with the terms hereof.

 

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Section 11.02. No
Legal Title to Collateral in the Noteholders. No holder of an Equipment Note or a Related Equipment Note shall have legal title
to any part of the Collateral. No transfer, by operation of law or otherwise, of any Equipment Note, Related Equipment Note or
other right, title and interest of any Noteholder or Related Noteholder in and to the Collateral or hereunder shall operate to
terminate this Indenture or entitle such holder or any successor or transferee of such holder to an accounting or to the transfer
to it of any legal title to any part of the Collateral.

 

Section 11.03. Sale
of Aircraft by Loan Trustee Is Binding. Any sale or other conveyance of the Aircraft, the Airframe, any Engine or any interest
therein by the Loan Trustee made pursuant to the terms of this Indenture shall bind the Noteholders and the Owner and shall be
effective to transfer or convey all right, title and interest of the Loan Trustee, the Owner and such Noteholders in and to such
Aircraft, Airframe, Engine or interest therein. No purchaser or other grantee shall be required to inquire as to the authorization,
necessity, expediency or regularity of such sale or conveyance or as to the application of any sale or other proceeds with respect
thereto by the Loan Trustee or the Noteholders.

 

Section 11.04. Indenture
for Benefit of Owner, Noteholders, Loan Trustee, Other Indenture Indemnitees and Related Indenture Indemnitees. Nothing
in this Indenture, whether express or implied, shall be construed to give any Person other than the Owner, the Noteholders, the
Loan Trustee, the other Indenture Indemnitees, the Related Loan Trustees and the Related Indenture Indemnitees any legal or equitable
right, remedy or claim under or in respect of this Indenture.

 

Section 11.05. 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 Indenture shall be in English and in writing,
and given by United States registered or certified mail, return receipt requested, overnight courier service or facsimile, and
any such notice shall be effective when received (or, if delivered by facsimile, 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:

 

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if to the Owner, addressed to:

 

Parina Leasing Limited

c/o Maples Corporate Services Limited

PO Box 309

Ugland House

Grand Cayman

KY1-1104

Cayman Islands

 

if to the Loan Trustee, addressed
to:

 

Wilmington Trust Company

1100 North Market Street

Wilmington,
Delaware 19890

Attention: Corporate Trust Admin/Drew Davis

Reference:
LATAM 2015-1 EETC

Telephone: 302-636-6182

Facsimile: 302-636-4140

E-mail: DHDavis@Wilmingtontrust.com

 

if to any Noteholder,
addressed to such Noteholder at its address set forth in the Equipment Note Register maintained pursuant to Section 2.07;

 

if to any Indenture
Indemnitee other than the Loan Trustee, addressed to the address of such party (if any) set forth in Section 7.01 of the Participation
Agreement or to such other address as such Indenture Indemnitee shall have furnished by notice to the Owner and the Loan Trustee;
and

 

if to any Related Indenture
Indemnitee, addressed to such Related Indenture Indemnitee at its address set forth in the Equipment Note Register (defined in
the applicable Related Indenture) maintained pursuant to Section 2.07 of the applicable Related Indenture.

 

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
10.05.

 

Section 11.06. Severability.
To the extent permitted by applicable law, any provision of this Indenture that 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 provision in any other jurisdiction.

 

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Section 11.07. No
Oral Modification or Continuing Waivers. No terms or provisions of this Indenture or of the Equipment Notes may be changed,
waived, discharged or terminated orally, but only by an instrument in writing signed by the Owner and the Loan Trustee, in compliance
with Article IX. Any waiver of the terms hereof or of any Equipment Note shall be effective only in the specific instance and for
the specific purpose given.

 

Section 11.08. Successors and Assigns. All covenants and agreements
contained herein shall bind and inure to the benefit of, and be enforceable by, each of the parties hereto and the successors and
permitted assigns of each, all as herein provided. Any request, notice, direction, consent, waiver or other instrument or action
by any Noteholder shall bind the successors and permitted assigns of such Noteholder. Each Noteholder by its acceptance of an Equipment
Note agrees to be bound by (i) this Indenture and all provisions of the Participation Agreement, the other Financing Agreements
and the Pass Through Documents applicable to a Noteholder and (ii) all provisions of each Related Indenture applicable to
a Related Noteholder to the extent such Noteholder is such Related Noteholder.

 

Section 11.09. Headings.
The headings of the various Articles and Sections herein and in the Table of Contents hereto are for convenience of reference only
and shall not define or limit any of the terms or provisions hereof.

 

Section 11.10. [Reserved].

 

Section 11.11. Voting
by Noteholders. All votes of the Noteholders shall be governed by a vote of a Majority in Interest of Noteholders, except as
otherwise provided herein.

 

Section 11.12. U.S.
Tax Treatment of the Equipment Notes. All Noteholders shall be required to treat the Equipment Notes as indebtedness for all
U.S. federal, state and local tax purposes.

 

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Section 11.13. The
Owner’s Performance and Rights. Any obligation imposed on the Owner herein shall require only that the Owner perform
or cause to be performed such obligation, even if stated as a direct obligation, and the performance of any such obligation by
any permitted assignee, lessee or transferee under an assignment, lease or transfer agreement then in effect and in accordance
with the provisions of the Financing Agreements shall constitute performance by the Owner and, to the extent of such performance,
discharge such obligation by the Owner. Except as otherwise expressly provided herein, any right granted to the Owner in this Indenture
shall grant the Owner the right to permit such right to be exercised by any such assignee, lessee or transferee, and, in the case
of a lessee, as if the terms hereof were applicable to such lessee were such lessee the Owner hereunder. The inclusion of specific
references to obligations or rights of any such assignee, lessee or transferee in certain provisions of this Indenture shall not
in any way prevent or diminish the application of the provisions of the two sentences immediately preceding with respect to obligations
or rights in respect of which specific reference to any such assignee, lessee or transferee has not been made in this Indenture.

 

Section 11.14. Counterparts.
This Indenture may be executed in any number of counterparts (and each of the parties hereto shall not be required to execute the
same counterpart). Each counterpart of this Indenture including a signature page or pages executed by each of the parties hereto
shall be an original counterpart of this Indenture, but all of such counterparts together shall constitute one instrument.

 

Section 11.15. Governing
Law. THIS INDENTURE HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND THIS INDENTURE, ANY INDENTURE SUPPLEMENT AND THE EQUIPMENT
NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE.

 

Section 11.16. Confidential Information. The term “Confidential
Information” means: (a) the existence and terms of the Lease and any Permitted Sublease of the Airframe or Engines
and the identity of the Permitted Sublessee thereunder; (b) all information obtained in connection with any inspection conducted
by the Loan Trustee or their respective representatives pursuant to Section 7(h) of the Lease, (c) each certification and
all information contained in each report furnished to the Loan Trustee or any Liquidity Provider pursuant to Section 10 of the
Lease; (c) all information regarding the Warranty Rights; and (d) all other information designated by the Owner as
non-public information. All Confidential Information shall be held confidential by the Loan Trustee, each Liquidity Provider and
each Noteholder and each affiliate, agent, officer, director, or employee of any thereof and shall not be furnished or disclosed
by any of them to anyone other than (i) the Loan Trustee or any Noteholder and (ii) their respective bank examiners, auditors,
accountants, agents and legal counsel, and except as may be required by an order of any court or administrative agency or by any
statute, rule, regulation or order of any governmental authority.

 

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Section 11.17. Submission
to Jurisdiction. Each of the parties hereto, and by acceptance of Equipment Notes, each Noteholder, to the extent it may do
so under applicable law, for purposes hereof and of all other Financing Agreements hereby (a)) irrevocably submits itself
to the non-exclusive jurisdiction of the courts of the State of New York sitting in the City of New York and to the non-exclusive
jurisdiction of the United States District Court for the Southern District of New York, for the purposes of any suit, action or
other proceeding arising out of this Indenture, the subject matter hereof or any of the transactions contemplated hereby brought
by any party or parties hereto or thereto, or their successors or permitted assigns and (b) waives, and agrees not to assert,
by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, that the suit, action or proceeding is brought
in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Indenture or the Equipment
Notes or the subject matter hereof or any of the transactions contemplated hereby may not be enforced in or by such courts. The
Owner hereby irrevocably consents and agrees to the service of any and all legal process, summons, notices and documents of any
of the aforementioned courts in any such suit, action or proceeding may be made by mailing copies thereof by registered or certified
mail, postage prepaid, to its agent for process set forth in Schedule IV to the Note Purchase Agreement.

 

[Signature Pages Follow.]

 

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IN WITNESS
WHEREOF, the parties hereto have caused this Indenture to be duly executed by their respective officers thereof duly authorized,
as of the date first above written.

 

	PARINA LEASING LIMITED
	 
	BY:	/s/ Pilar Duarte
	 	Name:	Pilar Duarte
	 	Title: 	Authorized Signatory

 

	WILMINGTON TRUST COMPANY, not in its individual capcity, except as expressly provided herein, but solely as Loan Trustee
	 	 
	BY:	/s/ Drew H. Davis
	 	Name:	Drew H. Davis
	 	Title: 	Assistant Vice President

 

     

     

    

 

EXHIBIT A to

INDENTURE AND SECURITY AGREEMENT

 

FORM OF INDENTURE SUPPLEMENT

 

(A representative copy of an Indenture Supplement
is filed as Exhibit 4.10 to the Registration Statement on Form F-4 pursuant to Instruction 2 of Item 601 of Regulation S-K.)

 

     

     

    

 

SCHEDULE I to

INDENTURE AND SECURITY AGREEMENT

 

DESCRIPTION OF EQUIPMENT NOTES

 

	 	 	Original Principal Amount	 	 	Maturity Date
	 	 	 	 	 	 
	Series A 
Equipment Notes:	 	$	33,556,000.00	 	 	November 15, 2027
	 	 	 	 	 	 	 
	Series B 
Equipment Notes:	 	$	6,496,000.00	 	 	November 15, 2023

 

CERTAIN DEFINED TERMS

 

	Defined Term	 	Definition
	Debt Rate for Series A Equipment Notes	 	4.200% per annum. 
	
        Make-Whole Spread for Series A

        Equipment Notes
	 	0.30%. 
	 	 	 
	Debt Rate for Series B Equipment Notes	 	4.500% per annum. 
	
        Make-Whole Spread for Series B

        Equipment Notes
	 	0.45%.

 

     

     

    

 

Indenture and Security Agreement

(LATAM 2015-1 Aircraft EETC)

MSN 6698

 

     

     

    

 

SCHEDULE I to

INDENTURE
AND SECURITY AGREEMENT

 

EQUIPMENT NOTES
AMORTIZATION

 

SERIES A EQUIPMENT NOTES

Airbus A321-200

6698

 

	Payment Date	 	Original Principal Amount 
to be Paid	 
	 	 	 	 	 
	At Issuance	 	 	0	 
	May 15, 2016	 	 	1,680,927.90	 
	August 15, 2016	 	 	441,061.95	 
	November 15, 2016	 	 	1,941,018.75	 
	February 15, 2017	 	 	440,974.51	 
	May 15, 2017	 	 	440,929.23	 
	August 15, 2017	 	 	440,882.88	 
	November 15, 2017	 	 	440,835.43	 
	February 15, 2018	 	 	440,786.82	 
	May 15, 2018	 	 	440,737.04	 
	August 15, 2018	 	 	440,686.05	 
	November 15, 2018	 	 	440,633.80	 
	February 15, 2019	 	 	440,580.25	 
	May 15, 2019	 	 	481,492.81	 
	August 15, 2019	 	 	481,426.34	 
	November 15, 2019	 	 	481,358.16	 
	February 15, 2020	 	 	481,288.24	 
	May 15, 2020	 	 	481,216.50	 
	August 15, 2020	 	 	481,142.89	 
	November 15, 2020	 	 	481,067.33	 
	February 15, 2021	 	 	480,989.77	 
	May 15, 2021	 	 	480,910.13	 
	August 15, 2021	 	 	480,828.32	 
	November 15, 2021	 	 	480,744.28	 
	February 15, 2022	 	 	480,657.93	 
	May 15, 2022	 	 	480,569.16	 
	August 15, 2022	 	 	480,477.90	 
	November 15, 2022	 	 	480,384.06	 
	February 15, 2023	 	 	480,287.52	 
	May 15, 2023	 	 	480,188.20	 
	August 15, 2023	 	 	480,085.97	 

 

     

     

    

 

SCHEDULE I to

INDENTURE AND SECURITY AGREEMENT

 

	November 15, 2023	 	 	479,980.73	 
	February 15, 2024	 	 	479,872.35	 
	May 15, 2024	 	 	479,760.72	 
	August 15, 2024	 	 	479,645.70	 
	November 15, 2024	 	 	479,527.14	 
	February 15, 2025	 	 	479,404.91	 
	May 15, 2025	 	 	479,278.85	 
	August 15, 2025	 	 	479,148.79	 
	November 15, 2025	 	 	479,014.58	 
	February 15, 2026	 	 	478,876.02	 
	May 15, 2026	 	 	478,732.93	 
	August 15, 2026	 	 	478,585.11	 
	November 15, 2026	 	 	478,432.36	 
	February 15, 2027	 	 	478,274.43	 
	May 15, 2027	 	 	478,111.11	 
	August 15, 2027	 	 	477,942.13	 
	November 15, 2027	 	 	9,206,242.02	 

 

     

     

    

 

SCHEDULE I to

INDENTURE AND SECURITY AGREEMENT

 

SERIES B EQUIPMENT NOTES

Airbus A321-200

 

6698

 

	Payment Date	 	Original Principal Amount
 to be Paid	 
	 	 	 	 
	At Issuance	 	 	0.00	 
	May 15, 2016	 	 	768,874.04	 
	August 15, 2016	 	 	164,868.30	 
	November 15, 2016	 	 	41,217.00	 
	February 15, 2017	 	 	41,217.00	 
	May 15, 2017	 	 	41,217.00	 
	August 15, 2017	 	 	35,572.61	 
	November 15, 2017	 	 	164,740.52	 
	February 15, 2018	 	 	164,713.12	 
	May 15, 2018	 	 	164,685.06	 
	August 15, 2018	 	 	164,656.28	 
	November 15, 2018	 	 	164,626.83	 
	February 15, 2019	 	 	164,596.62	 
	May 15, 2019	 	 	164,565.67	 
	August 15, 2019	 	 	164,533.92	 
	November 15, 2019	 	 	164,501.38	 
	February 15, 2020	 	 	164,468.00	 
	May 15, 2020	 	 	164,433.75	 
	August 15, 2020	 	 	164,398.61	 
	November 15, 2020	 	 	164,362.55	 
	February 15, 2021	 	 	164,325.51	 
	May 15, 2021	 	 	164,287.48	 
	August 15, 2021	 	 	164,248.43	 
	November 15, 2021	 	 	164,208.31	 
	February 15, 2022	 	 	164,167.07	 
	May 15, 2022	 	 	164,124.70	 
	August 15, 2022	 	 	182,273.35	 
	November 15, 2022	 	 	218,601.52	 
	February 15, 2023	 	 	218,537.90	 
	May 15, 2023	 	 	273,022.85	 
	August 15, 2023	 	 	254,756.88	 
	November 15, 2023	 	 	1,131,197.74	 
	February 15, 2024	 	 	0.00	 

 

     

     

    

 

SCHEDULE I to

INDENTURE AND SECURITY AGREEMENT

 

	May 15, 2024	 	 	0.00	 
	August 15, 2024	 	 	0.00	 
	November 15, 2024	 	 	0.00	 
	February 15, 2025	 	 	0.00	 
	May 15, 2025	 	 	0.00	 
	August 15, 2025	 	 	0.00	 
	November 15, 2025	 	 	0.00	 
	February 15, 2026	 	 	0.00	 
	May 15, 2026	 	 	0.00	 
	August 15, 2026	 	 	0.00	 
	November 15, 2026	 	 	0.00	 
	February 15, 2027	 	 	0.00	 
	May 15, 2027	 	 	0.00	 
	August 15, 2027	 	 	0.00	 
	November 15, 2027	 	 	0.00	 

 

     

     

    

 

SCHEDULE II to

INDENTURE AND SECURITY AGREEMENT

 

PASS THROUGH TRUST AGREEMENT AND

PASS THROUGH TRUST SUPPLEMENTS

 

Pass Through Trust
Agreement, dated as of May 29, 2015, between LATAM Airlines Group S.A. and Wilmington Trust Company, as trustee, as supplemented
by Trust Supplement No. 2015-1A, dated as of May 29, 2015 and Trust Supplement No. 2015-1B, dated as of May 29, 2015.

 

     

     

    

 

ANNEX A to

INDENTURE AND SECURITY AGREEMENT

 

DEFINITIONS

 

     

     

    

 

MSN 6698

PART I ANNEX A to

Participation Agreement,

Indenture and Security
Agreement and

Lease Agreement

 

DEFINITIONS

 

“Acceptance
Certificate” means the acceptance certificate to be entered into between the Lessee and the Lessor on the Closing Date
substantially in the form of Exhibit II to the Lease.

 

“Act”
means the Federal Aviation Act of 1958.

 

“Additional
Insureds” has the meaning set forth in Section 10(b) of the Lease. “Additional Series” or “Additional
Series Equipment Notes” means Equipment Notes issued under the Indenture and designated as a series (other than “Series
A”, or “Series B”, thereunder, if any, in the principal amounts and maturities and bearing interest as specified
in Schedule I to the Indenture amended at the time of original issuance of such Additional Series under the heading for such series.

 

“Additional
Series Pass Through Certificates” means the pass through certificates, if any, issued by any Additional Series Pass Through
Trust (including, without limitation, any “Refinancing Certificates” (as such term is defined in the Intercreditor
Agreement”) issued by a “Refinancing Trust” described in clause (ii) of the definition of “Additional Series
Pass Through Trust”).

 

“Additional Series Pass Through Trust” means (i) initially,
a grantor trust, if any, created pursuant to the applicable Pass Through Trust Agreement to facilitate the issuance and sale of
pass through certificates in connection with the initial issuance of any Additional Series Equipment Notes and (ii) any
“Refinancing Trust” (as such term is defined in the Intercreditor Agreement) created in connection with any subsequent
redemption of such Additional Series Equipment Notes and issuance of new Additional Series Equipment Notes.

 

“Additional
Series Pass Through Trust Agreement” means a Trust Supplement entered into in connection with the creation of an Additional
Series Pass Through Trust, together with the Basic Pass Through Trust Agreement, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms.

 

     

     

    

 

“Additional
Series Pass Through Trustee” means, with respect to any Additional Series Pass Through Trust, the trustee under the Additional
Series Pass Through Trust Agreement for such Additional Series Pass Through Trust, in its capacity as pass through trustee thereunder.

 

“Administration
Agreement” means the administration agreement dated on or about the Issuance Date between the Owner, LATAM, the Subordination
Agent and the Administrator as to the administration of the Owner.

 

“Administrator”
means MaplesFS Limited.

 

“Affected
Related Aircraft” has the meaning set forth in Section 3(e)(i) of the Lease.

 

“Affiliate”
of any Person means (i) any other Person directly or indirectly controlling, directly or indirectly controlled by, or under direct
or indirect common control with, such Person; or if such Person is a partnership, any general partner of such Person or a Person
controlling such general partner and/or (ii) any other Person who would, under IFRS, be consolidated or required to be consolidated
for accounting purposes with such Person. For purposes of this definition, "control" (including "controlled by"
and "under common control with") shall mean the power, directly or indirectly, to direct or cause the direction of the
management and policies of such Person whether through the ownership of voting securities or by contract or otherwise. In no event
shall WTC be deemed to be an Affiliate of the Loan Trustee or vice versa.

 

“After-Tax
Basis” means that indemnity and compensation payments required to be made on such basis will be supplemented by the Person
paying the base amount by that amount (the “additional amount”) which, when added to such base amount, and after
deduction of all federal, state, local and foreign Taxes required to be paid by or on behalf of the payee with respect of the receipt
or realization of the base amount and any such supplemental amounts, and after consideration of any current tax savings of such
payee resulting by way of any deduction, credit or other tax benefit actually and currently realized that is attributable to such
base amount or additional amount (or the circumstances giving rise to the payment of the base amount or the additional amount),
shall net such payee the full amount of such base amount.

 

“Agreement”
and “Participation Agreement” mean that certain Participation Agreement (6698), dated on or before the Closing
Date, among LATAM, the Owner, WTC, the Pass Through Trustee under each Pass Through Trust Agreement in effect as of the date of
execution and delivery of such Participation Agreement, the Subordination Agent and the Loan Trustee, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its terms.

 

    A-2

     

    

 

“Aircraft”
means one (1) new Airbus model A321-200 aircraft comprising the Airframe together with the two (2) new CFM56-5B3/3 Engines described
in the Indenture Supplement originally executed and delivered under the Indenture (or any Replacement Engine that may from time
to time be substituted for any of such Engines pursuant to Section 7(j) or 9(b) of the Lease), whether or not any of such initial
or substituted Engines may from time to time be installed on such Airframe or installed on any other airframe or on any other aircraft.

 

“Aircraft
Security Documents” means the Note Guarantee, the Local Mortgage, the Assignment of Insurances, any Subordination Acknowledgment,
the Lessee Power of Attorney and the Lessor Power of Attorney and the Warranty Assignments.

 

“Airframe”
means (a) the Airbus model A321-200 airframe further described in Annex A to the Indenture Supplement originally executed
and delivered under the Indenture (except the Engines or engines from time to time installed thereon and any and all Parts related
to such Engine or engines) and (b) and any and all Parts, whether or not the same shall be incorporated or installed in
or attached to the Airframe so long as title thereto shall remain vested in the Owner in accordance with the terms of Section 8(a)
of the Lease, together with the Manuals and Technical Records therefor.

 

“Airframe
Warranties Agreement” means the airframe warranties agreement dated as of the Closing Date among the Lessee, the Lessor,
the Loan Trustee and the Manufacturer in respect of the Airframe, substantially in the form of Exhibit L-1 to the Note Purchase
Agreement, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms.

 

“Airworthiness
Directive” means any requirement for the inspection, repair or modification of the Aircraft, any Engine or any Part as
issued by the Aviation Authority.

 

“Applicable
Laws” means, with respect to any Person or property (including the Aircraft and any Collateral), all applicable laws,
treaties, conventions, ordinances, judgments, decrees, injunctions, writs, rules, regulations, orders, interpretations, licenses,
permits and orders of any Government Body in any relevant jurisdiction, in each case applicable to such Person or property (including
the Aircraft and any Collateral).

 

“Approved
Maintenance Facility” has the meaning set forth in Section 7(c)(i) of the Lease.

 

“Approved
Maintenance Program” has the meaning set forth in Section 7(c)(i) of the Lease.

 

“Assignment
of Insurances” means the Assignment of Insurances dated as of the Closing Date between LATAM and the Loan Trustee substantially
in the form of Exhibit H to the Note Purchase Agreement, as the same may be amended, supplemented or otherwise modified from time
to time in accordance with its terms.

 

    A-3

     

    

 

“Average Life Date” means, for each Equipment Note to be
redeemed, the date which follows the redemption date by a period equal to the Remaining Weighted Average Life at the redemption
date of such Equipment Note. “Remaining Weighted Average Life” of an Equipment Note, at the redemption
date of such Equipment Note, means the number of days equal to the quotient obtained by dividing: (i) the sum of the products obtained
by multiplying (A) the amount of each then remaining installment of principal, including the payment due on the maturity
date of such Equipment Note, by (B) the number of days from and including the redemption date to but excluding the scheduled
Payment Date of such principal installment by (ii) the then unpaid principal amount of such Equipment Note.

 

“Aviation
Authority” means (i) the Dirección General de Aeronáutica Civil of Chile and any successor organization
and each other Government Body or other Person who shall from time to time be vested with the control and supervision of, or have
jurisdiction over, the registration, airworthiness and operation of aircraft or other matters relating to civil aviation in Chile,
or (ii) if the Aircraft is subleased to, or operated by, a Permitted Sublessee and is re-registered in accordance with Section
7(b) of the Lease, such Government Body or other Person who shall from time to time be vested with the control and supervision
of, or have jurisdiction over, the registration, airworthiness and operation of aircraft or other matters relating to civil aviation
in the applicable Permitted Jurisdiction.

 

“Bankruptcy
Law” means any domestic or foreign bankruptcy, insolvency, receivership or similar law.

 

“Basic Pass
Through Trust Agreement” means that certain Pass Through Trust Agreement, dated as of May 29, 2015, between LATAM and
WTC, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms (but does not
include any Trust Supplement).

 

“Basic Rent”
has the meaning set forth in Section 3(b)(i) of the Lease.

 

“Basic Rent
Payment Date” means, in respect of the Basic Rent, (x) the first Payment Date occurring after the Closing Date and (y)
each of the successive Payment Dates thereafter (or, in each case, if any such day is not a Business Day, the next succeeding Business
Day).

 

“Bill of Sale”
means the bill of sale for the Aircraft executed by the Manufacturer in favor of the Owner dated the date on which the Aircraft
is delivered to the Owner and pursuant to which the Owner obtained title to such Aircraft, substantially in the form set out in
Schedule 1 (Bill of Sale) to the Purchase Agreement Assignment.

 

    A-4

     

    

 

“Brazil”
shall mean the Federal Republic of Brazil.

 

“Business
Day” means any day other than a Saturday, Sunday or day on which commercial banks are required or authorized to close
in New York, New York, Santiago, Chile, Wilmington, Delaware, or, if different from the foregoing, the city in which the Loan Trustee,
any Pass Through Trustee or the Subordination Agent maintains its corporate trust office or receives and disburses funds.

 

“Call Option
Agreements” has the meaning set forth in Section 1.01 of the Intercreditor Agreement.

 

“Certificate
of Airworthiness” means with respect to the Aircraft, the certificate of airworthiness issued by the Aviation Authority.

 

“Certificate
of Registration” means, with respect to the Aircraft, the certificate of aircraft registration issued by the Aviation
Authority.

 

“Certificate
Purchase Agreement” means, as applicable, that certain Purchase Agreement, dated as of May 14, 2015, among LATAM, the
Owner, each Related Owner and Citigroup Global Markets Inc., as representative of the initial purchasers named therein, and the
Depositary, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms.

 

“Change in
Law” means, in each case after the date of the Indenture or as otherwise specified in any relevant Financing Agreements,
any implementation, introduction, abolition, withdrawal or variation of any Applicable Law, regulation, published practice or concession
or official directive, ruling, request, notice, guideline, statement of policy or practice statement by any Government Body (whether
or not having the force of law but in respect of which compliance by banks or other financial institutions in the relevant jurisdiction
is generally customary) or any change in any interpretation, or the introduction or making of any new or further interpretation,
or any new or different interpretation by any court, tribunal, governmental, revenue, local, federal, international, national,
fiscal or other competent authority or compliance with any new or different request or direction (in either case whether or not
having the force of law but in respect of which compliance by banks or other financial institutions in the relevant jurisdiction
is generally customary) from any Government Body.

 

“Charter”
shall mean any contractual agreement (other than a contractual agreement with respect to a regularly scheduled flight of the Lessee)
entered into by the Lessee with any Person other than an air carrier for the use (but not operation) of the Aircraft or any Part
thereof.

 

    A-5

     

    

 

“Chile”
shall mean the Republic of Chile.

 

“Class A Certificates”
means Pass Through Certificates issued by the Class A Pass Through Trust.

 

“Class A Liquidity
Facility” has the meaning set forth in the Intercreditor Agreement.

 

“Class A Liquidity
Provider” has the meaning set forth in the Intercreditor Agreement.

 

“Class A Pass
Through Trust” means the LATAM Pass Through Trust 2015-1A created pursuant to the Basic Pass Through Trust Agreement,
as supplemented by Trust Supplement No. 2015-1A, dated as of the Issuance Date, between LATAM and WTC, as Class A Trustee.

 

“Class A Trustee”
means the trustee for the Class A Pass Through Trust.

 

“Class B Certificates”
means Pass Through Certificates issued by the Class B Pass Through Trust.

 

“Class B Liquidity
Facility” has the meaning set forth in the Intercreditor Agreement.

 

“Class B Liquidity
Provider” has the meaning set forth in the Intercreditor Agreement.

 

“Class B Pass
Through Trust” means the LATAM Pass Through Trust 2015-1B created pursuant to the Basic Pass Through Trust Agreement,
as supplemented by Trust Supplement No. 2015-1B, dated as of the Issuance Date, between LATAM, and WTC, as Class B Trustee.

 

“Class B
Trustee” means the trustee for the Class B Pass Through Trust. “Closing” has the meaning specified
in Section 2.03 of the Participation Agreement.

 

“Closing Date”
means the date of the closing of the transaction contemplated by the Financing Agreements.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

    A-6

     

    

 

“Collateral”
means all or part of the property subject to the Liens created by the Indenture or any Security Document, as the context may require.

 

“Confidential
Information” has the meaning specified in Section 10.16 of the Indenture.

 

“Controlling
Party” has the meaning specified in Section 2.06 of the Intercreditor Agreement.

 

“Corporate
Trust Office” has the meaning specified in Section 1.01 of the Intercreditor Agreement.

 

“Debt Rate” means, with respect to any Series of Equipment
Notes, (i) the rate per annum specified for the applicable Series as such in Schedule I to the Indenture (as, in the case
of any Additional Series Equipment Notes issued after the Closing Date, such Schedule I may be amended in connection with
such issuance) and as such rate may be changed from time to time for such period(s), and in such amounts and circumstances, as
provided in Section 2(d) of the relevant Registration Rights Agreement, and (ii) for any other purpose, with respect to
any period, the weighted average interest rate per annum during such period borne by the outstanding Equipment Notes, excluding
any interest payable at the Past Due Rate.

 

“Default”
means a Lease Event of Default or an event or a condition that, with the giving of notice or lapse of time or both, would become
a Lease Event of Default.

 

“Defaulted Operative Indenture” means any Operative Indenture
(the terms “Indenture Event of Default”, “Equipment Notes” and “Payment Default” used in this
definition have the meanings specified therefor in such Operative Indenture) with respect to which (i) a Payment Default has occurred
and is continuing or an Indenture Event of Default described in Section 4.01(a) of such Operative Indenture has occurred and is
continuing or (ii) an Indenture Event of Default other than an Indenture Event of Default described in Section 4.01(a) of
such Operative Indenture has occurred and is continuing and, in any such case, either (x) the Equipment Notes issued thereunder
have been accelerated and such acceleration has not been rescinded and annulled in accordance therewith or (y) the loan
trustee under such Operative Indenture has given the Owner a notice of its intention to exercise one or more of the remedies specified
in Section 4.02(a) of such Operative Indenture.

 

“Delivery”
shall mean the time when the Owner (through the Lessee, if applicable) shall accept delivery of the Aircraft from the Manufacturer
pursuant to the terms of the Purchase Agreement.

 

    A-7

     

    

 

“Delivery
Date” shall mean the date on which the Delivery of the Aircraft occurs under the applicable Purchase Agreement, which
for the avoidance of doubt, shall be the same as the “Closing Date”.

 

“Deposit Agreement”
means, subject to Section 5(f) of the Note Purchase Agreement, each of the two Deposit Agreements, dated as of the applicable Issuance
Date, between the Escrow Agent and the Depositary, which relate to the Class A Pass Through Trust or the Class B Pass Through Trust,
respectively; provided that, for purposes of any obligation of Owner, no amendment, modification or supplement to, or substitution
or replacement of, any such Deposit Agreement shall be effective unless consented to by the Owner.

 

“Depositary”
means, subject to Section 5(f) of the Note Purchase Agreement, Natixis, acting through its New York Branch, as Depositary under
each Deposit Agreement.

 

“Direction”
has the meaning specified in Section 2.16 of the Indenture.

 

“Directors
Services Agreement” means the director services agreement dated on or about the Issuance Date among the Administrator,
the Owner and the Subordination Agent.

 

“Dollars”
“US Dollars”, “U.S.$”, “US$” and “$” mean immediately
available and freely transferable lawful currency of the United States of America.

 

“Dry Lease”
means any lease of the Aircraft (other than a Wet Lease).

 

“Eligible Account” means an account established by and with
an Eligible Institution at the request of the Loan Trustee, which institution agrees, for all purposes of the NY UCC including
Article 8 thereof, that (a) such account shall be a “securities account” (as defined in Section 8-501(a) of
the NY UCC), (b) such institution is a “securities intermediary” (as defined in Section 8-102(a)(14) of the
NY UCC), (c) all property (other than cash) credited to such account shall be treated as a “financial asset”
(as defined in Section 8-102(a)(9) of the NY UCC), (d) the Loan Trustee shall be the “entitlement holder” (as
defined in Section 8-102(a)(7) of the NY UCC) in respect of such account, (e) it will comply with all entitlement orders
issued by the Loan Trustee to the exclusion of the Owner, (f) it will waive or subordinate in favor of the Loan Trustee all claims
(including, without limitation, claims by way of security interest, lien or right of set-off or right of recoupment), and (g)
the “securities intermediary jurisdiction” (under Section 8-110(e) of the NY UCC) shall be the State of New York.

 

    A-8

     

    

 

“Eligible
Institution” means the corporate trust department of (a) WTC or any other Person that becomes a successor Loan
Trustee under the Indenture, in each case, acting solely in its capacity as a “securities intermediary” (as defined
in Section 8- 102(a)(14) of the NY UCC), or (b) a depository institution organized under the laws of the United States of
America or any one of the states thereof or the District of Columbia (or any United States branch of a foreign bank), which has
a Long-Term Rating of at least A2 (or its equivalent) from Moody’s and A (or its equivalent) from S&P.

 

“Engine”
means (a) each of the two CFM International, Inc. engines (generic manufacturer and model CFM56-5B3/3) listed by manufacturer’s
serial number and further described in Annex A to the Indenture Supplement originally executed and delivered under the Indenture,
whether or not from time to time installed on the Airframe or installed on any other airframe or on any other aircraft, and (b)
any Replacement Engine; in each case whether or not such engine or Replacement Engine at any time is installed on the Aircraft
or is installed on any other aircraft or airframe, so long as title thereto shall remain vested in the Lessor in accordance with
the terms of Section 7(e) of the Lease, together with the Manual and Technical Records therefor; together in each case with any
and all related Parts, but excluding items installed or incorporated in or attached to any such engine from time to time that are
excluded from the definition of Parts. At such time as a Replacement Engine shall be so substituted and the Engine for which substitution
is made shall be released from the Lien of the Indenture and the Aircraft Security Documents, such replaced Engine shall cease
to be an Engine under the Indenture and the Aircraft Security Documents.

 

“Engine Agreement”
means the CFM General Terms Agreement No. CFM-1- 2377460475 dated 17 December 2010 between the Engine Manufacturer CFM International,
Inc. and the Lessee, but solely to the extent such General Terms Agreement relates to the Engines, as amended, modified or supplemented
from time to time, including all letter agreements thereto;

 

“Engine Manufacturer”
means CFM International, Inc..

 

“Engine Warranties
Agreement” means the Engine Warranties Agreement dated as of the Closing Date among the Owner, LATAM and the Loan Trustee,
substantially in the form of Exhibit M-2 to the Note Purchase Agreement, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms.

 

“Equipment
Note” means and includes any equipment notes issued under the Indenture in the form specified in Section 2.01 thereof
(as such form may be varied pursuant to the terms of the Indenture) and any Equipment Note issued in exchange therefor or replacement
thereof pursuant to Section 2.07 or 2.08 of the Indenture.

 

“Equipment
Note Register” has the meaning specified in Section 2.07 of the Indenture.

 

    A-9

     

    

 

“Equipment
Note Registrar” has the meaning specified in Section 2.07 of the Indenture.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings
issued thereunder. Section references to ERISA are to ERISA as in effect at the date of the Participation Agreement and any subsequent
provisions of ERISA amendatory thereof, supplemental thereto or substituted therefor.

 

“Escrow Agent”
means Wilmington Trust, National Association, a national banking association, as escrow agent under each Escrow Agreement, or any
successor agent thereto.

 

“Escrow Agreement”
means each of the two Escrow and Paying Agent Agreement, dated as of the Issuance Date, among the Escrow Agent, the Paying Agent,
Citigroup Global Markets Inc., as representative of the applicable Initial Purchasers, and one of the Pass Through Trustees, which
relate to the Class A Pass Through Trust or the Class B Pass Through Trust; provided that, for purposes of any obligation
of the Owner, no amendment, modification or supplement to, or substitution or replacement of, any such Escrow Agreement shall be
effective unless consented to by the Owner.

 

“Event of
Loss” means, with respect to the Aircraft, the Airframe or any Engine, any of the following events: (i) the destruction
of or damage to such property that renders repair uneconomic or that renders such property permanently unfit for normal use; (ii)
any damage or loss to or other circumstance in respect of such property that results in an insurance settlement with respect to
such property on the basis of a total loss, or a constructive, compromised or arranged total loss; (iii) the confiscation or nationalization
of, or requisition of title to such property by any Government Body; (iv) the theft, hijacking or disappearance of such property
that shall have resulted in the loss of possession of such property by the Lessee (or a Permitted Sublessee) for a period in excess
of sixty (60) days; (v) grounding of the Aircraft or other prohibition on the operation or use of the Aircraft in the normal course
of Lessee’s business for a period of one hundred twenty (120) consecutive days due to action by a Government Body; or (vi)
the seizure of, sequestration of, condemnation, confiscation or taking of, or requisition for use of, such property by any Government
Body that shall have resulted in the loss of possession of such property by the Lessee (or Permitted Sublessee) and such requisition
for use shall have continued beyond the earlier of (A) sixty (60) days and (B) the date of receipt of insurance or condemnation
proceeds with respect thereto. An Event of Loss with respect to the Aircraft shall be deemed to have occurred if an Event of Loss
occurs with respect to the Airframe.

 

    A-10

     

    

 

An Event of Loss shall
be deemed to have occurred:

 

(a)          in
the case of an actual total loss, at 12:00 midnight (New York time) on the actual date the Aircraft was lost or, if such date is
not known, 12:00 midnight (New York time) on the day on which the Aircraft was last heard from;

 

(b)          in
the case of any of the events described in paragraph (i) of the definition of Event of Loss above (other than an actual total loss),
upon the date of occurrence of such destruction, damage or rendering unfit;

 

(c)          in
the case of any of the events described in paragraph (ii) of the definition of Event of Loss above (other than an actual total
loss), the date and time at which either a total loss is subsequently admitted by the insurers or a competent court or arbitration
tribunal issues a judgment to the effect that a total loss has occurred;

 

(d)          in
the case of any of the events referred to in paragraph (iii) of the definition of Event of Loss above, upon the occurrence thereof;
and

 

(e)          in
the case of any of the events referred to in paragraphs (iv), (v) and (vi) of the definition of Event of Loss above, upon the expiration
of the period of time specified therein.

 

“Expenses”
means any and all liabilities, obligations, losses, damages, settlements, penalties, claims, actions, suits, reasonable costs,
reasonable expenses and disbursements (including, without limitation, reasonable fees and disbursements of legal counsel, accountants,
appraisers, inspectors or other professionals, and costs of investigation).

 

“FAA”
means the Federal Aviation Administration of the United States of America and any successor Government Body or other Person who
shall from time to time be vested with the control and supervision of, or have jurisdiction over, the registration, airworthiness
and operation of aircraft or other matters relating to civil aviation in the United States of America.

 

“Federal Funds
Rate” means a fluctuating interest rate per annum in effect from time to time, which rate per annum shall at all times
be equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business
Day) by the Federal Reserve Bank of New York, or if such rate is not so published for any day that is a Business Day, the average
of the quotations for such day for such transactions received by WTC from three Federal funds brokers of recognized standing selected
by it.

 

    A-11

     

    

 

“Final Maturity
Date” means, with respect to each Equipment Note, the final scheduled Payment Date applicable to such Equipment Note
(or if such day is not a Business Day, the next succeeding Business Day).

 

“Financial
Indebtedness” of any Person shall mean, on any date, all indebtedness of such Person as of such date, and shall include
the following: (i) all indebtedness of such Person for borrowed money; (ii) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments; (iii) all obligations of such Person to pay the deferred purchase price of property
or services other than in the ordinary course of business; (iv) all obligations of such Person under finance or capital leases
which would be shown as an obligation in a balance sheet prepared in accordance with IFRS; (v) all indebtedness of others in respect
of obligations referred to in (i) to (iv) above, guaranteed in any manner, directly or indirectly, by such Person and (vi) all
net reimbursement obligations of such Person in respect of letters of credit, foreign currency sale agreements and bankers' acceptances,
except such as are obtained by such Person to secure performance of obligations (other than for borrowed money or similar obligations).
Notwithstanding the foregoing, intercompany debt and trade payables incurred in the ordinary course of business shall not constitute
“Financial Indebtedness”.

 

“Financing
Agreements” means, collectively, the Participation Agreement, the Indenture, each Indenture Supplement, the Lease, the
Aircraft Security Documents, the Manufacturer’s Consent and the Equipment Notes.

 

“Government”
means the government of any of Canada, Cayman Islands, Chile, France, Germany, Japan, The Netherlands, Sweden, Switzerland, the
United Kingdom or the United States and any instrumentality or agency thereof.

 

“Government
Body” means (whether having a distinct legal personality or not) any nation or government, any state or other political
subdivision thereof or local jurisdiction therein, any agency, authority, instrumentality, board commission, department, division,
organ, regulatory body, court, central bank or other entity, however constituted, exercising executive, legislative, judicial,
taxing, regulatory, supervisory or administrative functions of or pertaining to government, any securities exchange and any self
regulatory organization.

 

“Government
of Registry” shall mean Chile or any Permitted Jurisdiction in which the Aircraft is registered as permitted under Section
7(b) of the Lease and any agency or instrumentality thereof.

 

“Guarantor”
means each Related Owner under the Note Guarantee.

 

“IFRS”
shall mean the International Financial Reporting Standards.

 

    A-12

     

    

 

“Indemnitee”
has the meaning specified in Section 4.03(a) of the Participation Agreement.

 

“Indenture”
means that certain Indenture and Security Agreement (6698), dated as of the Closing Date, between the Owner and the Loan Trustee,
as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms, including supplementation
by an Indenture Supplement pursuant to the Indenture.

 

“Indenture
Event of Default” has the meaning specified in Section 4.01 of the Indenture.

 

“Indenture Indemnitee” means (i) the Loan Trustee, (ii)
WTC, (iii) each separate or successor or additional trustee appointed pursuant to Section 8.02 of the Indenture, (iv)
so long as it holds any Equipment Notes as agent and trustee of any Pass Through Trustee, the Subordination Agent, (v) each
Liquidity Provider, (vi) so long as it is the holder of any Equipment Notes, each Pass Through Trustee, (vii) the
Paying Agent, (viii) the Escrow Agent, and (ix) any of their respective successors and permitted assigns in such
capacities, directors, officers, employees, agents and servants. No holder of a Pass Through Certificate in its capacity as such
shall be an Indenture Indemnitee.

 

“Indenture
Supplement” means a supplement to the Indenture, substantially in the form of Exhibit A to the Indenture, which shall
particularly describe the Aircraft and any Replacement Engine included in the property subject to the Lien of the Indenture.

 

“Independent
Director” means one of the directors of the Owner, who shall be a Person who, at any time during his/her/its tenure as
director or during the five years preceding his/her/its appointment as director (i) does not have and is not committed to acquire
any direct or indirect financial, legal or beneficial interest in the Owner or LATAM and is not a creditor, supplier, family member,
manager, contractor, shareholder, director, officer, employee, subsidiary or Affiliate of the Owner or LATAM; (ii) is not connected
with the Owner, LATAM or any creditor, supplier, family member, manager, contractor, shareholder, director, officer, employee,
subsidiary or Affiliate of LATAM; (iii) is not, and has not been on the board of directors of and does not control (directly, indirectly
or otherwise) LATAM or any of its Affiliates (except in the capacity of independent director of LATAM), and provided that,
for the avoidance of doubt, any director provided to the Owner by MaplesFS Limited or any of its Affiliates from time to time pursuant
to the terms of the Administration Agreement, Directors Services Agreement or any other services agreement with such entity shall
be an Independent Director for the purposes of this definition and the Articles of Association of the Owner, and provided further
that for the avoidance of doubt, in circumstances where two or more directors are provided by Maples FS Limited or any of its Affiliates
from time to time under the Administration Agreement, Directors Services Agreement or any other services agreement with such entity,
then MaplesFS Directors Limited shall be an Independent Director for the purposes of this definition.

 

    A-13

     

    

 

“Initial Purchaser”
means, as applicable, each of the initial purchasers identified as such in the Certificate Purchase Agreement.

 

“Initial Basic
Rent Installment” shall mean the amount designated therefor in the Lease Supplement delivered on the Delivery Date.

 

“Insolvency”
or “Liquidation Proceeding” means (i) a voluntary proceeding under any Bankruptcy Law with respect to the Owner or
the Lessee; (ii) a voluntary or involuntary appointment of a receiver, trustee, custodian, sequestrator, conservator or similar
official for the Owner or the Lessee or for a substantial part of the property of the assets of the Owner or the Lessee; (iii)
any voluntary or involuntary winding up or liquidation of the Owner or the Lessee; or (iv) a general assignment for the benefit
of creditors of the Owner or the Lessee.

 

“Insurance
Proceeds” means any and all proceeds realized from the Insurances (other than third party liability insurances).

 

“Insurances”
has the meaning given to such term in Section 10(a) of the Lease. “Interchange Counterparty” has the meaning
set forth in Section 7(e)(v) of the Lease Agreement.

 

“Intercreditor
Agreement” means that certain Intercreditor Agreement, dated as of the Issuance Date, among the Pass Through Trustees,
the Liquidity Providers and the Subordination Agent, as the same may be amended, supplemented or otherwise modified from time to
time in accordance with its terms; provided that, for purposes of any obligations of LATAM or the Owner, no amendment, modification
or supplement to, or substitution or replacement of, such Intercreditor Agreement shall be effective unless consented to by LATAM.

 

“Interest
Rate” means, with respect to any period, the weighted average interest rate per annum during such period borne by the
outstanding Equipment Notes, excluding any interest payable at the Past Due Rate.

 

“Issuance
Date” means May 29, 2015.

 

“LATAM”
has the meaning set forth in the first paragraph of the Participation Agreement.

 

“Lease”
or “Lease Agreement” means the Lease Agreement MSN 6698 dated as of the Closing Date between the Owner, as lessor,
and LATAM, as lessee, substantially in the form of Exhibit F to the Note Purchase Agreement, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with its terms, including as supplemented by the Lease Supplement.

 

    A-14

     

    

 

“Lease Event
of Default” means any “Lease Event of Default” as defined under the Lease.

 

“Lease Supplement”
means the Lease Supplement substantially in the form of Exhibit I to the Lease, which shall particularly describe the Aircraft
subject to the Lease.

 

“Leasing Affiliate”
means a subsidiary of the Lessee or any other Person controlled by the Lessee, in each case that is, if the relevant Person is
the operator or proposed operator of the Aircraft, a commercial air carrier possessing at all times while the Aircraft is operated
by such person, all necessary authorizations (including, without limitation, those required to operate the Aircraft), consents
and licenses; provided that in no event shall any Person be a Leasing Affiliate if such Person is, at the time of the proposed
entry into of any sublease or interchange: (i) insolvent, or (ii) located in a country subject to EU or UN sanctions. For the purposes
of this definition, the Lessee shall be deemed to “control” another Person if:

 

(a)          Lessee
possesses, directly or indirectly, the power to direct the management or policies of such other Person whether through:

 

(i)          the
ownership of voting rights;

 

(ii)         control
of the board (including control of its composition) of the other Person;

 

(iii)        indirect
control of (i) and (ii); or

 

(b)          such
other Person would, under relevant accounting principles, be consolidated or required to be consolidated for accounting purposes
with the Lessee.

 

“Lessee”
has the meaning set forth in the first sentence of the Participation Agreement.

 

“Lessee Bankruptcy
Event” means the occurrence and continuation of a Lease Event of Default under any of clauses 13(g), (h), (i), (j) or
(k) of the Lease.

 

“Lessee Power
of Attorney” means each power of attorney executed by the Lessee in favor of the Loan Trustee in connection with the
repossession, re-export and deregistration of each Aircraft in form and substance satisfactory to the Loan Trustee.

 

“Lessor”
means the Owner as lessor under the Lease.

 

    A-15

     

    

 

“Lessor Parent”
means the owner from time to time of the issued share capital of the Lessor, being:

 

(a)          as
at the date of this Lease Agreement, the Lessee; or

 

(b)          subject
to paragraph (c) below and at any time following the exercise by the Lessee of its option under the Put Option Agreement with respect
to the Lessor to transfer, or procure the transfer of, its holding of the issued share capital of the Lessor (which option may
only be exercised once), the person nominated as the transferee of such holding of the issued share capital of the Lessor; or

 

(c)          at
any time following the exercise of the option under the Call Option Agreement with respect to the Lessor by the Subordination Agent
(in the capacity therein described) pursuant to its terms, the Subordination Agent (in the capacity therein described) or its nominee.

 

“Lessor Power
of Attorney” means each power of attorney executed by the Owner in favor of the Loan Trustee in connection with the repossession,
re-export and deregistration of each Aircraft in form and substance satisfactory to the Loan Trustee.

 

“Lien”
means as applied to the property or assets (or the income or profits therefrom) of any Person (in each case, whether the same is
consensual or non- consensual or arises by contract, operation of law, legal process or otherwise), any lien, mortgage, hypothec,
encumbrance, pledge, attachment, levy, charge, lease, encumbrance, right of seizure or detention, inscription on a public record,
claim, prior claim, right of others or security interest of any kind, including any thereof arising under any conditional sale
or other title retention agreement and any agreement to give any thereof in respect of any property or assets of such Person, or
upon the income or profits therefrom.

 

“Liquidity
Facilities” means, collectively, the Class A Liquidity Facility and the Class B Liquidity Facility.

 

“Liquidity
Providers” means, collectively, the Class A Liquidity Provider and the Class B Liquidity Provider.

 

“Loan Trustee”
has the meaning specified in the introductory paragraph of the Indenture.

 

“Loan Trustee Liens” means any Lien attributable to WTC
or the Loan Trustee with respect to the Aircraft, any interest therein or any other portion of the Collateral arising as a result
of (i) claims against WTC or the Loan Trustee not related to its interest in the Aircraft or the administration of the Collateral
pursuant to the Indenture, (ii) acts of WTC or the Loan Trustee not permitted by, or the failure of WTC or the Loan Trustee
to take any action required by, the Financing Agreements or the Pass Through Documents, (iii) claims against WTC or the Loan Trustee
relating to Taxes or claims for Expenses that are excluded from the indemnification provided by Section 4.03 or 4.04 of the Participation
Agreement pursuant to said Section 4.03 or 4.04 or (iv) claims against WTC or the Loan Trustee arising out of the transfer
by any such party of all or any portion of its interest in the Aircraft, the Collateral, the Financing Agreements or the Pass Through
Documents, except while an Indenture Event of Default is continuing and prior to the time that the Loan Trustee has received all
amounts due to it pursuant to the Indenture.

 

    A-16

     

    

 

“Local Mortgage”
means (i) the Chilean law aircraft mortgage dated on or about the date of the Delivery granted by the Lessor in favor of the Loan
Trustee, substantially in the form of Exhibit D to the Note Purchase Agreement or (ii) if the Aircraft is subleased to, or operated
by, a Permitted Sublessee and is registered in accordance with Section 7(b) of the Lease, an aircraft mortgage governed by the
laws of the applicable Permitted Jurisdiction granted by the Lessor in favor of the Loan Trustee dated on or about the date of
such sublease, in each case as the same may be amended, supplemented or otherwise modified from time to time in accordance with
its terms.

 

“Long-Term
Rating” has the meaning specified in the Intercreditor Agreement.

 

“Loss Payment Date” means the earlier
of (i) the date on which the Lessee, the Owner or the Loan Trustee received the insurance proceeds pursuant to Section 10 of the
Lease and (ii) sixty (60) days after the occurrence of an Event of Loss.

 

“Majority
in Interest of Noteholders” means, as of a particular date of determination and subject to Section 2.16 of the Indenture,
the holders of at least a majority in aggregate unpaid principal amount of all Equipment Notes outstanding as of such date (excluding
any Equipment Notes held by LATAM, the Owner or any Affiliate thereof, it being understood that a Pass Through Trustee shall be
considered an Affiliate of the Owner as long as more than 50% in the aggregate face amount of Pass Through Certificates issued
by the corresponding Pass Through Trust are held by LATAM, the Owner or an Affiliate thereof or a Pass Through Trustee is otherwise
under the control of LATAM, the Owner or such Affiliate (unless all Equipment Notes then outstanding are held by LATAM, the Owner
or any Affiliate thereof, or any combination thereof, including the Pass Through Trustees which are considered Affiliates of LATAM
or the Owner pursuant hereto)); provided that for the purposes of directing any action or casting any vote or giving any
consent, waiver or instruction hereunder, any Noteholder of an Equipment Note or Equipment Notes may allocate, in such Noteholder’s
sole discretion, any fractional portion of the principal amount of such Equipment Note or Equipment Notes in favor of or in opposition
to any such action, vote, consent, waiver or instruction.

 

    A-17

     

    

 

“Make–Whole Amount” means, with respect to any Equipment
Note, the amount (as determined by an independent investment banker selected by LATAM), if any, by which (i) the present value
of the remaining scheduled payments of principal and interest from the redemption date to maturity of such Equipment Note computed
by discounting each such payment on a semiannual basis from its respective Payment Date (assuming a 360-day year of twelve 30 day
months) using a discount rate equal to the Treasury Yield plus the Make-Whole Spread exceeds (ii) the outstanding principal
amount of such Equipment Note plus accrued but unpaid interest thereon to the date of redemption. For purposes of determining the
Make-Whole Amount, “Treasury Yield” means, at the date of determination, the interest rate (expressed as a semiannual
equivalent and as a decimal rounded to the number of decimal places as appears in the Debt Rate of such Equipment Note and, in
the case of United States Treasury bills, converted to a bond equivalent yield) determined to be the per annum rate equal to the
semiannual yield to maturity for United States Treasury securities maturing on the Average Life Date and trading in the public
securities market either as determined by interpolation between the most recent weekly average constant maturity, non-inflation-indexed
series yield to maturity for two series of United States Treasury securities, trading in the public securities markets, (A)
one maturing as close as possible to, but earlier than, the Average Life Date and (B) the other maturing as close as possible
to, but later than, the Average Life Date, in each case as reported in the most recent H.15(519) or, if a weekly average constant
maturity, non- inflation-indexed series yield to maturity for United States Treasury securities maturing on the Average Life Date
is reported in the most recent H.15(519), such weekly average yield to maturity as reported in such H.15(519). “H.15(519)”
means the weekly statistical release designated as such, or any successor publication, published by the Board of Governors of the
Federal Reserve System. The date of determination of a Make-Whole Amount shall be the third Business Day prior to the applicable
redemption date and the “most recent H.15(519)” means the latest H.15(519) published prior to the close of business
on the third Business Day prior to the applicable redemption date.

 

“Make-Whole
Spread” means, with respect to any Series of Equipment Notes, the percentage specified for the applicable Series as such
in Schedule I to the Indenture, as, in the case of any Additional Series of Equipment Notes issued after the Closing Date,
such Schedule I may be amended in connection with such issuance.

 

“Manuals and
Technical Records” means, with respect to the Aircraft or any Engine, all logs, logbooks, manuals and data, and inspection,
modification and overhaul records (including all job cards) and other records required to be maintained under applicable rules
and regulations of the Aviation Authority and if any of the same are not in the English language, certified English translations
thereof.

 

“Manufacturer”
means Airbus S.A.S., a société par actions simplifiée organized and existing under the laws of the
Republic of France.

 

    A-18

     

    

 

“Material
Adverse Effect” means, in relation to any Person, as the context may require, (a) a material adverse effect upon the
business, operations or condition (financial or otherwise) of such Person or upon the ability of such Person to perform its obligations
under the Financing Agreements, (b) a material adverse effect on the validity or enforceability of any of the Financing Agreements,
(c) a material adverse effect on the rights or remedies of any Secured Party under any of the Financing Agreements or of the Owner
or any Secured Party under any manufacturer's warranty with respect to the Aircraft or any Engine or (d) any event or circumstance
which adversely affects the Airframe or any Engine or such Person's interest therein or involves any risk of the sale, seizure,
detention or forfeiture of the Airframe or any Engine or any other part of the Aircraft.

 

“Moody’s”
means Moody’s Investors Service, Inc.

 

“Note Guarantee”
means the Note Guarantee dated as of the Closing Date and issued by each Related Owner for the benefit of the Loan Trustee, substantially
in the form of Exhibit O to the Note Purchase Agreement, as the same may be amended, supplemented or otherwise modified from time
to time in accordance with its terms.

 

“Note Value”
shall mean, as of any particular date of computation, an amount calculated in accordance with Schedule 2 to the Lease Supplement.

 

“Noteholder”
means any Person in whose name an Equipment Note is registered on the Equipment Note Register (including, for so long as it is
the registered holder of any Equipment Notes, the Subordination Agent on behalf of the Pass Through Trustees pursuant to the provisions
of the Intercreditor Agreement).

 

“Noteholder
Liens” means any Lien attributable to any Noteholder on or against the Aircraft, any interest therein or any other portion
of the Collateral, arising out of any claim against such Noteholder that is not related to the Financing Agreements or Pass Through
Documents, or out of any act or omission of such Noteholder that is not related to the transactions contemplated by, or that constitutes
a breach by such Noteholder of its obligations under, the Financing Agreements or the Pass Through Documents.

 

“Note Purchase
Agreement” means the Note Purchase Agreement, dated as of the Issuance Date, among LATAM, the Owner, each Related Owner,
the Subordination Agent, the Escrow Agent, the Paying Agent, and the Pass Through Trustee under each Pass Through Trust Agreement
providing for, among other things, the issuance and sale of certain equipment notes, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms.

 

“Notice of
Assignment of Insurances” means, with respect to the Assignment of Insurances, each notice of assignment of insurances
from the Lessee and the Loan Trustee to the insurer on or about the date of the Indenture substantially in the form of Exhibit
A to the Assignment of Insurances.

 

    A-19

     

    

 

“NY UCC”
means UCC as in effect in the State of New York.

 

“Obligors”
means each of the Lessor Parent, the Owner, the Lessee and the Guarantors and “Obligor”" means the Lessor Parent,
the Owner, the Lessee or any Guarantor, as the context may require.

 

“Operative
Agreements” has the meaning set forth in Annex A to the Note Purchase Agreement.

 

“Operative
Indentures” means, as of any date, each “Indenture” (as such term is defined in the Note Purchase Agreement),
including the Indenture, whether or not any other “Indenture” shall have been entered into before or after the date
of the Indenture, but only if as of such date all “Equipment Notes” (as defined in each such “Indenture”)
are held by the “Subordination Agent” under the “Intercreditor Agreement”, as such terms are defined in
each such “Indenture”.

 

“Other Party
Liens” means any Lien attributable to any Pass Through Trustee (other than in its capacity as Noteholder), the Subordination
Agent (other than in its capacity as Noteholder) or any Liquidity Provider on or against the Aircraft, any interest therein, or
any other portion of the Collateral arising out of any claim against such party that is not related to the Financing Agreements
or the Pass Through Documents, or out of any act or omission of such party that is not related to the transactions contemplated
by, or that constitutes a breach by such party of its obligations under, the Financing Agreements or the Pass Through Documents.

 

“Owner”
means Parina Leasing Limited, an exempted company with limited liability incorporated in the Cayman Islands.

 

“Participation
Agreement” has the meaning set forth under the definition of “Agreement”.

 

“Parts”
means with respect to the Airframe or any Engine, all appliances, components, parts, instruments (including avionics), appurtenances,
accessories, furnishings and other equipment of whatever nature (other than complete Engines, or engines), that may from time to
time be incorporated or installed in or attached to the Airframe or any Engine or removed from the Airframe or such Engine so long
as the Lessor's interest therein shall continue and any Replacement Part which may from time to time be substituted for a Part.

 

“Pass Through
Certificates” means the pass through certificates issued by any Pass Through Trust (and any other pass through certificates
for which such pass through certificates may be exchanged).

 

    A-20

     

    

 

“Pass Through
Documents” means each Pass Through Trust Agreement, the Note Purchase Agreement, each Escrow Agreement, each Deposit
Agreement, the Intercreditor Agreement and each Liquidity Facility.

 

“Pass Through
Trust” means each of the two separate grantor trusts that have been or will be created pursuant to the Pass Through Trust
Agreements to facilitate certain of the transactions contemplated by the Financing Agreements.

 

“Pass Through
Trust Agreement” means each of the two separate Trust Supplements relating to the Pass Through Trusts, together in each
case with the Basic Pass Through Trust Agreement, as the same may be amended, supplemented or otherwise modified from time to time
in accordance with its terms.

 

“Pass Through
Trustee” means the trustee under each Pass Through Trust Agreement, together with any successor in interest and any successor
or other trustee appointed as provided in such Pass Through Trust Agreement.

 

“Past Due Rate” means the lesser of (a) with respect
to (i) any payment made to a Noteholder under any Series of Equipment Notes, the Debt Rate then applicable to such Series plus
1% and (ii) any other payment made under any Financing Agreement to any other Person, the Debt Rate plus 1% (computed on
the basis of a year of 360 days comprised of twelve 30-day months) and (b) the maximum rate permitted by applicable law.

 

“Paying Agent”
means WTC, as paying agent under each Escrow Agreement, and any successor agent thereto.

 

“Payment Date”
means, for any Equipment Note, each February 15th, May 15th, August 15th and November 15th, commencing with May 15th 2016.

 

“Payment Default”
means the occurrence of an event that would give rise to an Indenture Event of Default under Section 4.01(a) of the Indenture upon
the giving of notice or the passing of time or both.

 

    A-21

     

    

 

“Permitted
Investments” means each of (a) direct obligations of the United States and agencies thereof having maturities
no later than 365 days following the date of such investment; (b) obligations fully guaranteed by the United States having
maturities no later than 365 days following the date of such investment; (c) certificates of deposit issued by, or bankers’
acceptances of, or time deposits with, any bank, trust company or national banking association incorporated or doing business under
the laws of the United States or one of the states thereof having combined capital and surplus and retained earnings of at least
$100,000,000 and having a Long-Term Rating of A, its equivalent or better issued by S&P or A2 by Moody’s (or, if neither
such organization then rates such institutions, by any nationally recognized rating
organization in the United States), having maturities no later than 365 days following the date of such investment; (d)
commercial paper of any holding company of a bank, trust company or national banking association described in clause (c), having
maturities no later than 365 days following the date of such investment; (e) commercial paper of companies having a Short-Term
Rating assigned to such commercial paper by either Moody’s or S&P (or, if neither such organization then rates such commercial
paper, by any nationally recognized rating organization in the United States) equal to the highest (in case of Moody’s) or
either of the two highest (in case of S&P) ratings assigned by such organization, having maturities no later than 365 days
following the date of such investment; (f) Dollar-denominated certificates of deposit issued by, or time deposits with, the European
subsidiaries of (i) any bank, trust company or national banking association described in clause (c), or (ii) any other bank
or financial institution described in clause (g), (h) or (j) below, having maturities no later than 365 days following the date
of such investment; (g) United States-issued Yankee certificates of deposit issued by, or bankers’ acceptances of,
or commercial paper issued by, any bank having combined capital and surplus and retained earnings of at least $100,000,000 and
headquartered in Canada, Japan, the United Kingdom, France, Germany, Switzerland or The Netherlands and having a Long-Term Rating
of A, its equivalent or better issued by S&P or A2, its equivalent or better issued by Moody’s (or, if neither such organization
then rates such institutions, by any nationally recognized rating organization in the United States), having maturities no later
than 365 days following the date of such investment; (h) Dollar-denominated time deposits with any Canadian bank having
a combined capital and surplus and retained earnings of at least $100,000,000 and having a Long-Term Rating of A, its equivalent
or better issued by S&P or A2, its equivalent or better issued by Moody’s (or, if neither such organization then rates
such institutions, by any nationally recognized rating organization in the United States), having maturities no later than 365
days following the date of such investment; (i) Canadian Treasury Bills fully hedged to Dollars having maturities no later than
365 days following the date of such investment; (j) repurchase agreements with any financial institution having combined capital
and surplus and retained earnings of at least $100,000,000 collateralized by transfer of possession of any of the obligations described
in clauses (a) through (i) above; and (k) such other investments approved in writing by the Loan Trustee; provided that
the instruments described in the foregoing clauses shall have a maturity no later than the earliest date when such investments
may be required for distribution. The bank acting as the Pass Through Trustee or the Loan Trustee is hereby authorized, in making
or disposing of any investment described herein, to deal with itself (in its individual capacity) or with any one or more of its
affiliates, whether it or such affiliate is acting as an agent of the Pass Through Trustee or the Loan Trustee or for any third
person or dealing as principal for its own account.

 

“Permitted
Jurisdiction” shall mean any jurisdiction listed in Annex B to the Lease.

 

    A-22

     

    

 

“Permitted
Lien” means (i) the respective rights of each of the parties to the Financing Agreements as provided in the Financing
Agreements; (ii) the rights of the Lessee and other Persons under leases and other agreements and arrangements to the extent permitted
by the terms of Sections 7 and 8 of the Lease; (iii) Liens for fees or charges of any airport or air navigation authority not yet
due and payable by the Owner or the Lessee or which are being contested in good faith, on reasonable grounds and by appropriate
proceedings so long as such Liens do not involve any material risk of the sale, seizure, forfeiture, detention or loss of the Aircraft,
any Part thereof, title thereto, or any interest therein or the use thereof (any of which a "Lien Loss"); (iv)
Liens for Taxes payable by the Owner or the Lessee either not yet overdue or being contested in good faith by appropriate proceedings
that do not involve any material risk of Lien Loss and that do not involve any potential for criminal liability, and in the case
of such proceedings so long as adequate reserves are maintained in respect of such Taxes in accordance with applicable accounting
principles; (v) materialmen's, mechanics', workmen's, repairmen's, employees' or other like Liens on the Aircraft, the Airframe
or any Engine arising in the ordinary course of business of the Lessee for amounts the payment of which is either not yet due or
which are being contested in good faith by appropriate proceedings that do not involve any material likelihood of Lien Loss and
in the case of such proceedings so long as adequate reserves are maintained by the Lessee in respect of such amounts in accordance
with applicable accounting principles; (vi) Liens arising out of judgments or awards against the Owner or the Lessee with respect
to which at the time an appeal or proceeding for review is being prosecuted in good faith by appropriate proceedings that do not
involve any material likelihood of Lien Loss and in the case of such proceedings so long as an adequate bond to stay enforcement
is in effect, and (vii) salvage or similar rights of insurers under insurance policies maintained pursuant to and in accordance
with Section 10 of the Lease.

 

“Permitted
Owner Lien” has the meaning set forth in Section 7.01 of the Indenture.

 

“Permitted
Sublessee” has the meaning set forth in Section 7(e)(v) of the Lease.

 

“Person” means any person, including
any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, trustee,
unincorporated organization or government or any agency or political subdivision thereof.

 

“Pledge Agreements”
has the meaning set forth in Section 1.01 of the Intercreditor Agreement.

 

“Post-Delivery
Authorizations and Filings” means, with respect to a Brazilian Aircraft, the authorizations and filings set out in Section
3.01(u)(iv)(A)–(H) of the Participation Agreement.

 

    A-23

     

    

 

“Powers of
Attorney” means collectively, the Lessee Power of Attorney and the Lessor Power of Attorney.

 

“Process Agent”
means the Process Agent set forth on Schedule IV to the Note Purchase Agreement.

 

“Purchase
Agreement” means the Purchase Agreement as described in Schedule I to the Participation Agreement.

 

“Purchase
Agreement Assignment” means (i) the Purchase Agreement Assignment dated as of the Closing Date between the Lessee and
the Owner substantially in the form of Exhibit K-2 to the Note Purchase Agreement and (ii) the Airframe Warranties Agreement dated
as of the Closing Date among Airbus S.A.S, the Owner, LATAM and the Loan Trustee, substantially in the form of Exhibit L-1 to the
Note Purchase Agreement, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its
terms.

 

“Put Option
Agreements” has the meaning set forth in Section 1.01 the Intercreditor Agreement.

 

“Rating Agencies”
has the meaning specified in the Intercreditor Agreement.

 

“Reinsurances”
shall mean any and all contracts or policies of reinsurance maintained by the Owner (or the Lessee) in respect of the
Aircraft pursuant to Section 10 of the Lease.

 

“Related Additional
Series Equipment Note” means, with respect to any particular series of Additional Series Equipment Notes and as of any
date, an “Additional Series Equipment Note,” as defined in each Related Indenture, having the same designation (i.e.,
“Series C” or the like) as such Additional Series Equipment Notes, but only if as of such date it is held by the “Subordination
Agent” under the “Intercreditor Agreement,” as such terms are defined in such Related Indenture.

 

“Related
Aircraft” means each of the eleven (11) Airbus A321-200 aircraft, two (2) Airbus A350-900 aircraft, and four (4)
Boeing 787-9 aircraft referred to in Note Purchase Agreement, excluding the Aircraft, or any of them.

 

“Related Equipment
Note” means, as of any date, an “Equipment Note” as defined in each Related Indenture, but only if as of
such date it is held by the “Subordination Agent” under the “Intercreditor Agreement”, as such terms are
defined in such Related Indenture.

 

“Related Lease”
means each lease agreement in effect from time to time with respect to a Related Aircraft, or any of them.

 

    A-24

     

    

 

“Related Lease
Event of Default” means a “Lease Event of Default” under (and as defined in) any Related Lease.

 

“Related Lessor”
means each “Lessor” as described in a Related Lease.

 

“Related Indemnitee
Group” has the meaning specified in Section 4.03(a) of the Participation Agreement.

 

“Related Indenture”
means each Operative Indenture (other than the Indenture).

 

“Related Indenture Event of Default” means any “Indenture
Event of Default” under any Related Indenture.

 

“Related Indenture
Indemnitee” means each Related Noteholder.

 

“Related Loan
Trustee” means the “Loan Trustee” as defined in each Related Indenture.

 

“Related Make-Whole
Amount” means the “Make-Whole Amount”, as defined in each Related Indenture.

 

“Related Noteholder”
means a registered holder of a Related Equipment Note.

 

“Related Obligors”
means the “Obligors” as defined in each Related Lease, or any of them, and “Related Obligor” means any
of them, as the context may require.

 

“Related Owner” means each “Owner” as described in a Related
Indenture.

 

“Related Participation
Agreement” means any “Participation Agreement” as defined in a Related Lease, or, collectively, each of them.

 

“Related Secured
Obligations” means, as of any date, the outstanding principal amount of the Related Equipment Notes issued under each
Related Indenture, the accrued and unpaid interest (including, to the extent permitted by applicable law, post-petition interest
and interest on any overdue amounts) due thereon in accordance with such Related Indenture as of such date, the Related Make-Whole
Amount, if any, with respect thereto due thereon in accordance with such Related Indenture as of such date, and any other amounts
payable as of such date under the “Financing Agreements” (as defined in each Related Indenture).

 

“Related Series
A Equipment Note” means, as of any date, a “Series A Equipment Note”, as defined in each Related Indenture,
but only if as of such date it is held by the “Subordination Agent” under the “Intercreditor Agreement”,
as such terms are defined in such Related Indenture.

 

    A-25

     

    

 

“Related Series
B Equipment Note” means, as of any date, a “Series B Equipment Note”, as defined in each Related Indenture,
but only if as of such date it is held by the “Subordination Agent” under the “Intercreditor Agreement”,
as such terms are defined in such Related Indenture.

 

“Rent”
shall mean collectively, Basic Rent and Supplemental Rent.

 

“Replacement Engine” means a CFM56-5B3/3 engine (or
an engine of the same or another manufacturer of a comparable or an improved model and suitable for installation and use on the
Airframe with the other Engine (or any other Replacement Engine being substituted simultaneously therewith)) that shall have been
made subject to the Lien of the Indenture pursuant the terms thereof and Section 7(j) or 9(b) of the Lease, together with all Parts
relating to such engine, but excluding items installed or incorporated in or attached to any such engine from time to time that
are excluded from the definition of Parts.

 

“Replacement
Liquidity Facility” has the meaning set forth in the Intercreditor Agreement.

 

“Replacement
Liquidity Provider” has the meaning set forth in the Intercreditor Agreement.

 

“Reserved
Matters” means the following:

 

(a)          amalgamation,
consolidation or merger of the Owner with or into any other entity;

 

(b)          submission
to the Registrar of Companies in and for the Cayman Islands of an application to strike from the Register of Companies pursuant
to Section 156 of the Companies Law (2013 Revision) of the Cayman Islands);

 

(c)          sale
of any assets of the Owner (other than the disposition of any engine or aircraft or part thereof that is permitted under the Operative
Agreements);

 

(d)          discontinuance
of the Owner under the Statute and continuance in a jurisdiction outside the Cayman Islands;

 

(e)          institution
of any proceeding by the Owner, in relation to itself, seeking liquidation, winding-up, reorganization, arrangement, adjustment,
protection, relief or composition of its debts under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other similar official for it
or for any substantial part of its property;

 

    A-26

     

    

 

(f)          in
the case of any such proceeding described in paragraph (e) above being instituted against the Owner (but not instituted by the
Owner), authorizing or consenting to such proceedings (including, without limitation, the entry of an order for relief against,
or the appointment of a receiver, trustee, custodian or other similar official for it, or any substantial part of its property,
or that of any subsidiary);

 

(g)          any
proposal put to the Owner’s Members (as defined in the Companies Law (2013 Revision) of the Cayman Islands) to wind up or
terminate the corporate existence of the Owner;

 

(h)          consent
to any amendment, modification or waiver of any of the Required Terms (as defined in the Note Purchase Agreement) unless the same
has been consented to by the Subordination Agent; or

 

(i)          any
proposal put to the Owner’s Members to amend and restate the memorandum of association and articles of association of the
Owner by special resolution.

 

“Responsible
Officer” means, with respect to LATAM or the Owner, its Chairman of the Board, its President, any Senior Vice President,
the Chief Financial Officer, its General Counsel, any Vice President, the Treasurer, the Assistant Treasurer, the Secretary or
any other management employee or, in the case of the Owner, any Director or, in the case of Reserved Matters, the Independent Director
(a) whose power to take the action in question has been authorized, directly or indirectly, by the Board of Directors of
LATAM or the Owner, as the case may be (b) working directly under the supervision of its Chairman of the Board, its President,
any Senior Vice President, the Chief Financial Officer, any Vice President, the Treasurer or the Secretary and (c) whose
responsibilities include the administration of the transactions and agreements contemplated by the Participation Agreement and
the Indenture.

 

“Replacement
Part” shall mean an appliance, part, accessory, furnishing, instrument, appurtenance or other item of equipment of whatever
nature (other than complete Engines or engines) which shall have been leased under the Lease and subjected to the Lien of the Lease,
the Indenture and the Local Mortgage, in each case in compliance with the requirements thereof and of the other Financing Agreements.

 

“S&P”
means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

 

“Secured Obligations”
has the meaning specified in Section 2.06 of the Indenture.

 

“Secured Parties”
shall mean, collectively, the Loan Trustee, each Pass Through Trustee, the Subordination Agent, each Liquidity Provider and each
Noteholder (but shall not include the holder of any Pass Through Certificate) and “Secured Party” shall mean any of
them.

 

    A-27

     

    

 

“Securities
Account” has the meaning specified in Section 3.07 of the Indenture.

 

“Securities Act” means the Securities
Act of 1933, as amended from time to time.

 

“Securities Intermediary” has the meaning specified in Section 3.07
of the Indenture.

 

“Security
Documents” means the Pledge Agreements, the Call Option Agreement, the Indenture and the Aircraft Security Documents.

 

“Series”
means any series of Equipment Notes, including the Series A Equipment Notes, the Series B Equipment Notes, or any Additional Series
Equipment Notes.

 

“Series A”
or “Series A Equipment Notes” means Equipment Notes issued and designated as “Series A Equipment Notes”
under the Indenture, in the original principal amount and maturities as specified in Schedule I to the Indenture under the
heading “Series A Equipment Notes” and bearing interest at the Debt Rate for Series A Equipment Notes specified in
Schedule I to the Indenture.

 

“Series B”
or “Series B Equipment Notes” means Equipment Notes issued and designated as “Series B Equipment Notes”
under the Indenture, in the original principal amount and maturities as specified in Schedule I to the Indenture under the
heading “Series B Equipment Notes” and bearing interest at the Debt Rate for Series B Equipment Notes specified in
Schedule I to the Indenture.

 

“Service Bulletin”
shall mean any document issued by the Manufacturer or the Engine Manufacturer recommending an improvement, inspection, repair or
modification to the Aircraft, Airframe, any Engine or any Part.

 

“Short-Term
Rating” has the meaning specified in the Intercreditor Agreement.

 

“Sublease”
means any sublease permitted by the terms of Section 7(e)(v) of the Lease.

 

“Subordination
Agent” has the meaning specified in the introductory paragraph to the Participation Agreement.

 

“Subordination
Acknowledgment" shall mean a subordination acknowledgment with respect to the rights of any Permitted Sublessee in relation
to the Aircraft under any Permitted Sublease entered into, or to be entered into, by such Permitted Sublessee substantially in
the form of Exhibit N to the Note Purchase Agreement.

 

    A-28

     

    

 

“Supplemental
Rent” shall mean any and all amounts, liabilities and obligations (excluding Basic Rent) that the Lessee assumes or agrees
to pay to the Owner or any other Person under the Lease, the Participation Agreement or any other Financing Agreement and (without
duplication) any amount payable by the Owner under the terms of the Indenture and the Financing Agreements (including any amounts
payable in respect of amounts contemplated in Sections 4.03, 4.04 and 4.08 of the Participation Agreement and including interest
on the Equipment Notes calculated at the Past Due Rate).

 

“Tax”
and “Taxes” mean all governmental fees (including, without limitation, license, filing and registration fees)
and all taxes (including, without limitation, franchise, excise, stamp, value added, income, gross receipts, sales, use and property
taxes), withholdings, assessments, levies, imposts, duties or charges, of any nature whatsoever, together with any related penalties,
fines, additions to tax or interest thereon imposed, withheld, levied or assessed by any country, taxing authority or governmental
subdivision thereof or therein or by any international authority, including any taxes imposed on any Person as a result of such
Person being required to collect and pay over withholding taxes.

 

“Tax
Indemnitee” means (a) the Owner, (b) WTC, WTNA, and the Loan Trustee, (c) each separate or additional trustee
appointed pursuant to the Indenture, (d) so long as it holds any Equipment Notes as agent and trustee of any Pass Through
Trustee, the Subordination Agent, (e) so long as it is the holder of any Equipment Notes, each Pass Through Trustee (as Pass
Through Trustee under each of the Pass Through Trust Agreements), (f) each Liquidity Provider, (g) each Noteholder, (h) the
Escrow Agent, (i) the Paying Agent and (j) the respective successors, assigns, agents and servants of the foregoing. No
holder of a Pass Through Certificate in its capacity as such holder shall be a Tax Indemnitee.

 

“Taxing Authority”
means (a) any federal, provincial, state or local government or other taxing authority in the United States or Chile, (b) any other
government or any political subdivision or taxing authority, (c) any international taxing authority or (d) any territory or possession
of the United States or any taxing authority thereof.

 

“Term”
means (i) the period commencing on the Closing Date to and including the final scheduled Basic Rent Payment Date, or (ii) such
shorter period that may result from any earlier termination in respect of the Lease in accordance with the terms of the Lease.

 

“Transfer”
means the transfer, sale, assignment or other conveyance of all or any interest in any property, right or interest.

 

    A-29

     

    

 

“Trust Indenture
Act” means the Trust Indenture Act of 1939, as amended from time to time.

 

“Trust Supplements”
means (i) those agreements supplemental to the Basic Pass Through Trust Agreement referred to in Schedule III to the Participation
Agreement as of the Closing Date and (ii) in the case of any Additional Series Pass Through Certificates, if issued, whether in
connection with the initial issuance of any Additional Series Equipment Notes or in connection with any subsequent redemption of
any Additional Series Equipment Notes, an agreement supplemental to the Basic Pass Through Trust Agreement pursuant to which (a)
a separate trust is created for the benefit of the holders of such Additional Series Pass Through Certificates, (b) the
issuance of such Additional Series Pass Through Certificates representing fractional undivided interests in the Additional Series
Pass Through Trust is authorized and (c) the terms of such Additional Series Pass Through Certificates are established.

 

“UCC”
or “Uniform Commercial Code” means the Uniform Commercial Code as in effect in any applicable jurisdiction.

 

“United States”,
“U.S.” or “US” means the United States of America.

 

“Warranty
Assignments” means, collectively, the Purchase Agreement Assignment and the Engine Warranties Agreement.

 

“Warranty
Bill of Sale” means the warranty (as to title) bill of sale covering the Aircraft, executed by the Manufacturer in favor
of the Owner and specifically referring to each Engine, as well as the Airframe, constituting a part of the Aircraft.

 

“Warranty
Rights” means the Warranty Rights as described in Schedule I to the Participation Agreement.

 

“Wet Lease”
means any arrangement whereby the Owner agrees to furnish the Airframe and the Engines or engines installed thereon to an air carrier
and pursuant to which the Airframe and the Engines or engines (i) shall be operated solely by cockpit crew provided by the Owner
possessing all current certificates and licenses required by Applicable Laws, (ii) shall be maintained by the Lessee in accordance
with the normal maintenance provisions of the Lease, (iii) shall continue to be insured by the Lessee in accordance with the terms
of the Lease, and (iv) shall not be subject to any change in its state of registration.

 

“WTC”
has the meaning specified in the introductory paragraph to the Participation Agreement.

 

“WTNA”
means Wilmington Trust, National Association, a national banking association in its individual capacity.

 

    A-30

     

    

 

Annex A, Part II

Construction

 

The definitions stated in Annex A, Part
I apply equally to both the singular and the plural forms of the terms defined.

 

All references in the Participation Agreement,
the Indenture or the Lease to designated “Articles”, “Sections”, “Subsections”, “Schedules”,
“Exhibits”, “Annexes” and other subdivisions are to the designated Article, Section, Subsection, Schedule,
Exhibit, Annex or other subdivision thereof, unless otherwise specifically stated.

 

The words “herein”, “hereof”
and “hereunder” and other words of similar import refer to the Participation Agreement, the Indenture or the Lease,
as the case may be, as a whole and not to any particular Article, Section, Subsection, Schedule, Exhibit, Annex or other subdivision.

 

All references in the Participation Agreement,
the Indenture or the Lease, as the case may be, to a “government” are to such government and any instrumentality or
agency thereof.

 

Unless the context otherwise requires,
whenever the words “including”, “include” or “includes” are used herein, they shall be deemed
to be followed by the phrase “without limitation”.

 

All references in the Participation Agreement,
the Indenture or the Lease, as the case may be, to a Person shall include successors and permitted assigns of such Person.

   

    A-31

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