Document:

Exhibit 10.2

Exhibit 10.2

SLOT AND GATE SECURITY AGREEMENT 
Between
JETBLUE AIRWAYS CORPORATION,
as Grantor,
and
CITIBANK, N.A.,
as Administrative Agent
__________________________________
Dated as of April 23, 2013
__________________________________

i

Exhibit 10.2

Table of Contents
Page

		
	Section 1.
	Pledge    3

		
	Section 2.
	Security for Obligations    5

		
	Section 3.
	No Release    5

		
	Section 4.
	Representations, Warranties and Covenants    5

		
	Section 5.
	Supplements, Further Assurances    7

		
	Section 6.
	Provisions Concerning Collateral    7

		
	Section 7.
	Administrative Agent Appointed Attorney-in-Fact    9

		
	Section 8.
	Administrative Agent May Perform    9

		
	Section 9.
	The Administrative Agent    10

		
	Section 10.
	Events of Default, Remedies    10

		
	Section 11.
	Application of Proceeds    12

		
	Section 12.
	No Waiver; Discontinuance of Proceeding    12

		
	Section 13.
	Amendments, etc.    13

		
	Section 14.
	Termination; Release    13

ii

Exhibit 10.2

		
	Section 15.
	Definitions    14

		
	Section 16.
	Notices    16

		
	Section 17.
	Continuing Security Interest; Transfer of Loans    17

		
	Section 18.
	Governing Law    17

		
	Section 19.
	Consent to Jurisdiction and Service of Process    18

		
	Section 20.
	Security Interest Absolute    18

		
	Section 21.
	Severability of Provisions    18

		
	Section 22.
	Headings    18

		
	Section 23.
	Execution in Counterparts    19

		
	Section 24.
	Successors and Assigns    19

		
	Section 25.
	Construction of Schedule I    19

		
	Section 26.
	Rules of Interpretation    19

		
	Section 27.
	Intercreditor Agreement    19

Schedule I – Pledged Slots

Schedule II – Excluded Slots

iii

Exhibit 10.2

SLOT AND GATE SECURITY AGREEMENT

SLOT AND GATE SECURITY AGREEMENT, dated as of April 23, 2013 (as amended, modified or supplemented from time to time, the “Agreement”), between JETBLUE AIRWAYS CORPORATION, a Delaware corporation (together with its permitted successors and assigns, the “Grantor”) and CITIBANK, N.A., as Administrative Agent (together with its successors and permitted assigns, the “Administrative Agent”), for the benefit of the Secured Parties.  Except as otherwise defined herein, terms used herein and defined in the Credit Agreement shall be used herein as therein defined.
W I T N E S S E T H:
WHEREAS, the Grantor and the Administrative Agent are parties to (i) that certain Credit and Guaranty Agreement dated as of April 23, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Grantor, as Borrower, the subsidiaries of the Grantor party thereto, as guarantors, the Lenders party thereto, and the Administrative Agent; and
WHEREAS, pursuant to the Credit Agreement, the Grantor has agreed to grant a continuing Lien on the Collateral (as defined below) to secure the Obligations;
NOW, THEREFORE, in consideration of the premises, the mutual agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows:
Section 1.Pledge.  The Grantor hereby pledges to the Administrative Agent and grants to the Administrative Agent for the benefit of the Secured Parties a security interest in all of the following (the “Collateral”), to secure all of the Obligations:
(i)    all of the right, title and interest of the Grantor in, to and under the Pledged Slots, the Pledged Historical Rights and the Pledged Gate Leaseholds from time to time; and
(ii)    all of the right, title and interest of the Grantor in, to and under all Proceeds of any and all of the foregoing (including, without limitation, all Proceeds (of any kind) received or to be received by the Grantor upon the transfer or other such disposition of such Collateral notwithstanding whether the pledge and grant of the security interest in such Collateral is legally effective under applicable law);
provided, however, that notwithstanding any other provision of this Agreement, (1) if a Transfer Restriction would be applicable to the creation of a security interest in any asset described in clause (i) of the first sentence of this Section 1 (other than any FAA Slot or Pledged Historical Rights), such asset shall not be subject to the security interest created by this Agreement and shall not be treated as Collateral for purposes hereof and (2) if any Transfer Restriction applies to the transfer or assignment of (but not the creation of a security interest in) any of the right, title or interest referred to in clause (i) of the first sentence of this Section 1, any provision of this Agreement permitting the Administrative Agent to cause the Grantor to transfer or assign to it or any other person any of the Grantor’s right, title or interest in any such Collateral (and any right the Administrative Agent may have under applicable law to do so by virtue of the security interest granted to it under this Agreement) shall be subject to such Transfer Restriction; provided, however, that following an Event of Default, at the direction of the Administrative Agent, the Grantor shall use commercially reasonable efforts to obtain any and all approvals and consents required for the transfer of any Collateral subject to a Transfer Restriction referred to in clause (2) of the preceding proviso.  As used herein, “Transfer Restriction” means any restriction or consent requirement relating to the transfer or assignment by the Grantor of, or the grant by the Grantor of a security interest in, any right, title or interest in any type of property or any claim, right or benefit arising thereunder or resulting therefrom, if an attempted transfer or assignment thereof (or the grant of a security interest therein) without the consent of any third party would (i) constitute a violation of the terms under which the Grantor was granted such right, title or interest (or the Grantor’s interest in any agreement or license related thereto), (ii) entitle any Governmental Authority or third party to terminate or suspend any such right, title or interest (or the Grantor’s interest in any agreement or license related thereto), or (iii) violate any applicable law, rule or regulation, except, in any case, to the extent such “Transfer Restriction” shall be rendered ineffective (both to the extent that it (x) prohibits, restricts or requires consent and (y) gives rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy) by virtue of any applicable law, including Sections 9-406, 9-407, 9-408 or 9-409 of the UCC as in effect, from time to time, in the State of New York, to the extent applicable (or any corresponding sections of the UCC in a jurisdiction other than the State of New York to the extent applicable).   It is the intent of the parties hereto that the Administrative Agent shall have a perfected and first-priority Lien (subject only to Liens permitted by the Loan Documents) on the Pledged Slots and Pledged Historical Rights and that the Administrative Agent shall be entitled to all the rights, priorities and benefits afforded by the UCC as enacted in any relevant jurisdiction to perfected security interests therein.
Section 2.    Security for Obligations.  This Agreement secures, and the Collateral is collateral security for, the Obligations.
Section 3.    No Release.  Nothing set forth in this Agreement shall relieve the Grantor from the performance of any term, covenant, condition or agreement on the Grantor’s part to be performed or observed under or in respect of any of the Collateral or from any liability to any Person under or in respect of any of the Collateral or impose any obligation on the Administrative Agent or any Secured Party to perform or observe any such term, covenant, condition or agreement on the Grantor’s part to be so performed or observed or impose any liability on the Administrative Agent or any Secured Party for any act or omission on the part of the Grantor relating thereto or for any breach of any representation or warranty on the part of the Grantor contained in this Agreement, or in respect of the Collateral or made in connection herewith or therewith.  This Section 3 shall survive the termination of this Agreement and the discharge of the Grantor’s other obligations hereunder and under the Loan Documents.
Section 4.    Representations, Warranties and Covenants.  (a) The Grantor represents and warrants as follows:
(i)    All filings necessary or reasonably requested by the Administrative Agent to create, preserve, protect and perfect the security interests granted by the Grantor to the Administrative Agent for the benefit of the Secured Parties in respect of the Collateral have been accomplished by the Grantor to the extent that such security interests can be perfected by filings under the UCC.  The security interests granted to the Administrative Agent for the benefit of the Secured Parties pursuant to this Agreement in and to the Collateral constitute and hereafter at all times shall constitute a perfected security interest therein superior and prior to the rights of all other Persons therein, subject, in the case of priority only, only to Permitted Liens, to the extent such perfection and priority can be obtained by filings under the UCC, and the Administrative Agent is entitled with respect to such perfected security interest to all the rights, priorities and benefits afforded by the UCC as enacted in any relevant jurisdiction to perfected security interests.
(ii)    There are no filings, registrations or recordings necessary to create, preserve, protect or perfect the security interests granted by the Grantor to the Administrative Agent for the benefit of the Secured Parties in respect of the Collateral under Title 49.  
(iii)    The Grantor is, and as to Collateral acquired by it from time to time after the date hereof the Grantor will be, the holder of all Collateral free from any Lien except for (1) the Lien and security interest created by this Agreement and (2) Liens permitted by the Loan Documents.
(iv)    Except for filings in respect of Liens which have been satisfied and filings in respect of Liens that are permitted under the Loan Documents, the Grantor has not filed or consented to the filing of any financing statement or analogous document under the UCC or any other applicable laws covering its Collateral, which financing statement or analogous document, assignment, security agreement or similar instrument is still in effect.
(v)    The chief executive office of the Grantor as of the date of this Agreement is located at 27-01 Queens Plaza North, Long Island City, New York  11101.
(vi)    Set forth on Schedule I is a true, correct and complete list of the Grantor’s FAA Slots at LaGuardia Airport, Ronald Reagan Washington National Airport, Newark Liberty International Airport and John F. Kennedy International Airport that are included in the Collateral as Pledged Slots as of the Closing Date.  The Grantor holds the Pledged Slots pursuant to authority granted by the applicable Governmental Authorities, and there exists no material violation of the terms, conditions or limitations of any rule, regulation or order of the applicable Governmental Authorities regarding such Pledged Slots or any provisions of law applicable to such Pledged Slots that gives any applicable Governmental Authority the right to terminate, cancel, withdraw or modify the rights of the Grantor in any such Pledged Slots.
(vii)    The Grantor holds its Pledged Gate Leaseholds pursuant to authority granted by the applicable Airport Authority and there exists no material violation of the regulations, terms, conditions or limitations of the relevant Airport Authority applicable to any Pledged Gate Leasehold or any provision of law applicable to the Pledged Gate Leasehold that gives any applicable Airport Authority the right to terminate, cancel, withdraw or modify the rights of the Grantor in any such Pledged Gate Leasehold.
(viii)    The Grantor is an “air carrier” within the meaning of Section 40102 of Title 49 and holds a certificate under Section 41102 of Title 49.  The Grantor holds an air carrier operating certificate issued pursuant to Chapter 447 of Title 49.  The Grantor is a “citizen of the United States” as defined in Section 40102(a)(15) of Title 49 and as that statutory provision has been interpreted by the DOT pursuant to its policies (a “United States Citizen”).  The Grantor possesses all necessary certificates, franchises, licenses, permits, rights, designations, authorizations, exemptions, concessions, frequencies and consents of any Governmental Authority which relate to the operation of the routes flown by it and the conduct of its business and operations as currently conducted except where failure to so possess would not, in the aggregate, have a Material Adverse Effect.
(ix)    The Grantor has full corporate power and authority and legal right to pledge all of the Collateral pursuant to this Agreement.
(x)    Except for matters that would not reasonably be expected to result in a Material Adverse Effect, no consent of any other party (including, without limitation, stockholders or creditors of the Grantor), and no consent, authorization, approval, or other action by, and (except in connection with the perfection of the Lien created hereby) no notice to or filing with, any Governmental Authority or other Person is required either (x) for the pledge by the Grantor of the Collateral pursuant to this Agreement or for the execution, delivery or performance of this Agreement or (y) for the exercise by the Administrative Agent of the rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement (except for matters relating to judicial proceedings); provided, however, that (A) the Pledged Slots (other than certain Pledged Slots at Ronald Reagan Washington National Airport) may not be transferred (other than the lease or trade of, or the grant or pledge of a security interest in, such Pledged Slots) and (B) the transfer of Pledged Gate Leaseholds may be subject to the foregoing actions by Governmental Authorities or Airport Authorities, aviation authorities, air carriers or other lessors.
(xi)    This Agreement is made with full recourse to the Grantor and pursuant to and upon all the warranties, representations, covenants and agreements on the part of the Grantor contained herein.
(b)    The Grantor covenants and agrees with the Administrative Agent that from and after the date of this Agreement and until the Security Agreement Termination Date as follows: 
(i)    The Grantor shall use commercially reasonable efforts to defend the Collateral against any and all claims and demands of all Persons at any time claiming any interest therein adverse to the Administrative Agent or any Secured Party (other than Permitted Liens).
(i)    The Grantor shall not execute or authorize to be filed in any public office any financing statement (or similar statement or instrument of registration under the law of any jurisdiction) relating to the Collateral, except financing statements (or similar statements or instruments of registration under the law of any jurisdiction) filed or to be filed in respect of and covering the security interests granted hereby by the Grantor and except with respect to Permitted Liens.
(ii)    The Grantor shall give to the Administrative Agent timely written notice (but in any event not later than 30 days prior to the expiration of the period of time specified under applicable law to prevent lapse of perfection) of any (a) change in its jurisdiction of incorporation, or (b) change in its name, identity or corporate or other organizational structure to such an extent that any UCC financing statement filed by the Administrative Agent in connection with this Agreement would become misleading; and the Grantor shall, in each case, provide such other information in connection therewith as the Administrative Agent may reasonably request and shall take all action reasonably satisfactory to the Administrative Agent to maintain the perfection and priority of the security interest of the Administrative Agent on behalf of the Secured Parties in the Collateral intended to be granted hereby.
Section 5.    Supplements, Further Assurances.  The Grantor agrees that at any time and from time to time, at the reasonable expense of the Grantor, the Grantor will promptly execute, acknowledge and deliver all further security documents, instruments, certificates, notices and other documents, and take all further action that the Administrative Agent may reasonably request in order to create, perfect, protect, assure and enforce any security interest granted or purported to be granted or intended to be granted hereby under the laws of the United States or any state thereof or, after the occurrence and during the continuance of an Event of Default, to enable the Administrative Agent to exercise and enforce its rights and remedies hereunder or under the Loan Documents to which it is a party with respect to any Collateral.
Section 6.    Provisions Concerning Collateral.
(i)    Financing Statements.  The Grantor hereby authorizes the Administrative Agent, at any time and from time to time, to file or record such financing statements which reasonably describe the Collateral and amendments thereto, in the form provided to it by the Grantor, as may from time to time be required or necessary to grant, continue and maintain a valid, enforceable, first priority security interest (subject only to Liens permitted by the Loan Documents) in the Collateral as provided herein (to the extent such perfection and priority can be obtained by filing a UCC financing statement), all in accordance with the UCC as enacted in any and all relevant jurisdictions or any other relevant law of the United States or any state thereof.  The Grantor shall pay any applicable filing fees and other reasonable out-of-pocket expenses related to the filing of such financing statements and amendments thereto.  The Administrative Agent hereby authorizes the Grantor to file (i) financing statements and amendments to financing statements filed on the date hereof in each case adding Collateral and (ii) continuation statements of any financing statement naming the Administrative Agent, as secured party, and the Grantor, as debtor, in each case filed pursuant to the terms of this Agreement and the other Loan Documents.  For the avoidance of doubt, the Administrative Agent shall not be responsible for the filing of any continuation statements of any financing statements referred to herein.
(ii)    Compliance with Laws and Regulations.  Except for matters that would not reasonably be expected to result in a Collateral Material Adverse Effect, the Grantor shall comply with all laws, ordinances, orders, rules, regulations, and requirements of all federal, state, municipal or other governmental or quasi-governmental authorities or bodies, then applicable to the Collateral (or any part thereof) and/or the use thereof by the Grantor, of every nature and kind (the “Requirements”) whether or not such Requirements shall now exist or shall hereafter be enacted or promulgated and whether or not the same may be said to be within the present contemplation of the parties hereto.  Notwithstanding the foregoing, if the Grantor in good faith contests a Requirement, it shall not be obligated to comply with such Requirement to the extent such non-compliance or deferral is consistent with law and does not have a Collateral Material Adverse Effect.  
(iii)    Notice of Laws.  The Grantor agrees to give the Administrative Agent notice of any violations of any Requirement with respect to the Collateral or the Grantor’s use thereof that may reasonably be expected to have a Collateral Material Adverse Effect within fifteen (15) Business Days after the Grantor obtains knowledge of such violation.
(iv)    Updated Schedules in connection with Collateral Additions, Dispositions or Releases.  The Grantor shall deliver or cause to be delivered within forty-five (45) days of the end of June and December of each year (commencing in June of 2013), and may from time to time deliver or cause to be delivered, to the Administrative Agent an updated Schedule I or Schedule II to replace the then-existing Schedule I or Schedule II, respectively, in each case to reflect:
(a)    any release of Pledged Slots from the security interest granted hereunder in connection with a Disposition (other than any returns of Pledged Slots to the FAA) permitted under Section 6.04 of the Credit Agreement; 
(b)    any release of Pledged Slots from the security interest granted hereunder pursuant to Section 6.09(c) of the Credit Agreement; and
(c)    any designation of Excluded Slots as Pledged Slots;
provided that the Grantor shall not be required to deliver or cause to be delivered an updated Schedule I or Schedule II in accordance with this Section 6(iv) if none of the events described in paragraphs (a), (b) and (c) above have occurred that affects the information in such Schedule since an updated version of such Schedule was previously delivered in accordance with this Section 6(iv) or, if no updated version of such Schedule has yet been delivered in accordance with this Section 6(iv), since the date of this Agreement.
(v)    Permitted Dispositions.  Any or all of the Collateral may be sold, leased, conveyed, transferred or otherwise disposed of, subject to the terms of the Credit Agreement.
Section 7.    Administrative Agent Appointed Attorney-in-Fact.  The Grantor hereby appoints the Administrative Agent as the Grantor’s attorney-in-fact, with full authority in the place and stead of the Grantor and in the name of the Grantor or otherwise, from time to time in the Administrative Agent’s discretion, upon the occurrence and during the continuation of an Event of Default, to take any action and to execute any instrument which the Administrative Agent may reasonably deem necessary or advisable to accomplish the purposes of this Agreement, which appointment as attorney-in-fact is coupled with an interest.
Section 8.    Administrative Agent May Perform.  If the Grantor fails to perform any agreement contained herein within a reasonable time after receipt of a written request to do so from the Administrative Agent, upon five (5) Business Days prior written notice the Administrative Agent may itself perform, or cause performance of, such agreement, and the reasonable expenses of the Administrative Agent, including, without limitation, the reasonable fees and out-of-pocket expenses of its counsel, incurred in connection therewith, shall be payable by the Grantor in accordance with Section 10.04 of the Credit Agreement and shall be considered Obligations.
Section 9.    The Administrative Agent.  It is expressly understood and agreed by the parties hereto, and each Secured Party, by accepting the benefits of this Agreement, acknowledges and agrees, that the obligations of the Administrative Agent as holder of the Collateral and interests therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this Agreement.  The Administrative Agent shall act hereunder on the terms and conditions set forth in the Credit Agreement.  In the event of any express conflict between the terms of this Agreement and the terms of the Credit Agreement, the Credit Agreement shall control and govern, provided that this provision shall not be interpreted in any way to affect any rights expressly provided to the Secured Parties under this Agreement unless such rights are expressly prohibited or restricted under the Credit Agreement.
Section 10.    Events of Default, Remedies.
A.    Remedies: Obtaining the Collateral Upon Event of Default.  If any Event of Default shall have occurred and be continuing, then and in every such case, the Administrative Agent may, at any time or from time to time during the continuance of such Event of Default:
(i)    Declare the entire right, title and interest of the Grantor in and to the Collateral vested, subject to any binding and enforceable mandatory requirements imposed by applicable law or by the DOT, the FAA or applicable Governmental Authority and/or Airport Authority, in which event such rights, title and interest shall immediately vest in the Administrative Agent, in which case the Grantor agrees to execute and deliver such deeds of conveyance, assignments and other documents or instruments as shall be requested by the Administrative Agent in order to effectuate the transfer of such Collateral, together with any other rights of the Grantor with respect thereto, to any designee or designees selected by the Administrative Agent and approved by all necessary Governmental Authorities and Airport Authorities (provided that if any of the foregoing is not permitted under applicable law or by the DOT, the FAA or applicable Governmental Authority and/or Airport Authority, the Administrative Agent for the benefit of the Secured Parties shall nevertheless continue to have all of the Grantor’s right, title and interest in and to all of the proceeds (of any kind) received or to be received by the Grantor upon the transfer or other disposition of such Collateral); it being understood that the Grantor’s obligation to deliver such Collateral and such documents and instruments with respect thereto, subject to the aforesaid limitations, is of the essence of this Agreement and that, accordingly, upon application to a court of equity having jurisdiction, the Administrative Agent shall be entitled to a decree requiring specific performance by the Grantor of said obligations; and
(ii)    Sell or otherwise liquidate, or direct the Grantor to sell or otherwise liquidate, any or all of the Collateral or any part thereof and take possession of the proceeds of any such sale or liquidation, in each case subject to any binding and enforceable mandatory requirements imposed by applicable law and Airport Authorities with respect to Pledged Gate Leaseholds.
B.    Remedies; Disposition of the Collateral.  
(i)    If any Event of Default shall have occurred and be continuing, the Administrative Agent may from time to time exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, and to the extent not in violation of applicable law, including Title 14, Title 49 and the DOT or FAA orders, regulations or requirements issued pursuant thereto, and subject to the approval of all necessary Governmental Authorities and Airport Authorities, all the rights and remedies of a secured party on default under the UCC in effect in all relevant jurisdictions at the time of such Event of Default, and the Administrative Agent may also in its sole discretion, without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, broker’s board or at any of the Administrative Agent’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as the Administrative Agent may deem commercially reasonable.  To the extent not inconsistent with Title 14, Title 49 and the DOT or FAA orders, regulations or requirements issued pursuant thereto, and any additional requirements of the applicable Governmental Authorities and/or Airport Authorities, the Administrative Agent or any other Secured Party may be the purchasers of any or all of the Collateral at any such sale and shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at such sale, to use and apply any of the Obligations owed to such Person as a credit on account of the purchase price of any Collateral payable by such Person at such sale.  Each purchaser at any such sale shall acquire the property sold absolutely free from any claim or right on the part of the Grantor, and the Grantor hereby waives, to the fullest extent permitted by law, all rights of redemption, stay or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.  The Grantor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ notice to the Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  The Administrative Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  The Grantor hereby waives, to the full extent permitted by law, any claims against the Administrative Agent arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale.
(ii)    Except as otherwise provided herein, the Grantor hereby waives, to the fullest extent permitted by applicable law, notice or judicial hearing in connection with the Administrative Agent’s taking possession or the Administrative Agent’s disposition of any of the Collateral, including, without limitation, any and all prior notice and hearing for any prejudgment remedy or remedies and any such right which the Grantor would otherwise have under law; and the Grantor hereby further waives to the fullest extent permitted by applicable law: (a) all damages occasioned by such taking of possession; (b) all other requirements as to the time, place and terms of sale or other requirements with respect to the enforcement of the Administrative Agent’s rights hereunder; and (c) all rights of redemption, appraisement, valuation, stay, extension or moratorium now or hereafter in force under any applicable law.  Any sale of, or the grant of options to purchase, or any other realization upon, any Collateral shall operate to divest all right, title, interest, claim and demand, either at law or in equity, of the Grantor therein and thereto, and shall be a perpetual bar both at law and in equity against the Grantor and against any and all Persons claiming or attempting to claim the Collateral so sold, optioned or realized upon, or any part thereof, from, through and under the Grantor.
(iii)    In connection with any foreclosure, collection, sale or other enforcement of Liens granted to the Administrative Agent in this Agreement, the Grantor will cooperate in good faith with the Administrative Agent or its designee in obtaining all regulatory licenses, consents and other governmental approvals necessary or (in the opinion of the Administrative Agent or its designee) desirable to conduct all aviation operations with respect to the Collateral and will, at the request of the Administrative Agent and in good faith, continue to operate and manage the Collateral and maintain all applicable regulatory licenses with respect to the Collateral until such time as the Administrative Agent or its designee obtain such licenses, consents and approvals, and at such time the Grantor will cooperate in good faith with the transition of the aviation operations with respect to the Collateral to any new aviation operator (including, without limitation, the Administrative Agent or its designee).
Section 11.    Application of Proceeds.  
(b)    All cash proceeds received by the Administrative Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral pursuant to the exercise by the Administrative Agent of its remedies as a secured creditor as provided in Section 10 of this Agreement shall be held by the Administrative Agent as Collateral for, and then at any time thereafter shall, in the discretion of the Administrative Agent, be applied, in whole or in part, against all or any part of the Obligations in such order as provided for in Section 2.17(b) of the Credit Agreement. Any surplus of such cash proceeds held by the Administrative Agent and remaining after payment in full of all the Obligations shall be promptly paid over to the Grantor or to whomever may be at such time lawfully entitled to receive such surplus.
(c)    It is understood that the Grantor shall remain liable to the extent of any deficiency between the amount of the proceeds of the Collateral and the aggregate amount of the outstanding Obligations.
Section 12.    No Waiver; Discontinuance of Proceeding.  
(a)    Each and every right, power and remedy hereby specifically given to the Administrative Agent or otherwise in this Agreement shall be cumulative and shall be in addition to every other right, power and remedy specifically given under this Agreement or the other Loan Documents now or hereafter existing at law, in equity or by statute and each and every right, power and remedy whether specifically herein given or otherwise existing may be exercised from time to time or simultaneously and as often and in such order as may be deemed expedient by the Administrative Agent.  All such rights, powers and remedies shall be cumulative and the exercise or the beginning of the exercise of one shall not be deemed a waiver of the right to exercise any other or others.  No delay or omission of the Administrative Agent in the exercise of any such right, power or remedy and no renewal or extension of any of the Obligations shall impair any such right, power or remedy or shall be construed to be a waiver of any default or Event of Default or an acquiescence therein.  No notice to or demand on the Grantor in any case shall entitle it to any other or further notice or demand in similar or other circumstances or constitute a waiver of any of the rights of the Administrative Agent to any other or further action in any circumstances without notice or demand.  In the event that the Administrative Agent shall bring any suit to enforce any of its rights hereunder and shall be entitled to judgment, then in such suit the Administrative Agent may recover reasonable out-of-pocket expenses, including reasonable attorneys’ fees, and the amounts thereof shall be included in such judgment.
(b)    In the event the Administrative Agent shall have instituted any proceeding to enforce any right, power or remedy under this Agreement by foreclosure, sale, entry or otherwise, and such proceeding shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Administrative Agent, then and in every such case the Grantor, the Administrative Agent and each holder of any of the Obligations shall to the extent permitted by applicable law be restored to their respective former positions and rights hereunder with respect to the Collateral, and all rights, remedies and powers of the Administrative Agent and the Secured Parties shall continue as if no such proceeding had been instituted. 
Section 13.    Amendments, etc.  This Agreement may not be amended, modified or waived except with the written consent of the Grantor and the Administrative Agent (acting pursuant to and in accordance with the terms of the Credit Agreement).  Any amendment, modification or supplement of or to any provision of this Agreement, any termination or waiver of any provision of this Agreement and any consent to any departure by the Grantor from the terms of any provision of this Agreement shall be effective only in the specific instance and for the specific purpose for which made or given.  
Section 14.    Termination; Release.  
(a)    Upon the Security Agreement Termination Date, this Agreement shall automatically terminate (provided that all indemnities set forth in the Credit Agreement shall survive) and the Administrative Agent, at the request and expense of the Grantor, will promptly execute and deliver to the Grantor a proper instrument or instruments acknowledging the satisfaction and termination of this Agreement, and, subject to the terms of the Credit Agreement, will duly assign, transfer and deliver to the Grantor (without recourse and without any representation or warranty) such of its Collateral as may be in the possession of the Administrative Agent and as has not theretofore been sold or otherwise applied or released pursuant to this Agreement.
(b)    For the avoidance of doubt, subject to the applicable provisions under the Credit Agreement, (i) if any Pledged Gate Leasehold ceases to be included in the Collateral because it ceases to be used for servicing the scheduled air carrier service utilizing Pledged Slots relating to the airport at which such Pledged Gate Leasehold is located, such Pledged Gate Leasehold shall be automatically released from the Lien of this Agreement and (ii) if any right, title, privilege, interest and authority, now held or hereafter acquired by the Grantor in connection with the right to use or occupy space in an airport terminal becomes a Pledged Gate Leasehold, such right, title, privilege, interest and authority shall be automatically subject to the Lien of this Agreement.
(c)    Upon (i) any Disposition of any Collateral that is permitted under Section 6.04 of the Credit Agreement (other than a Disposition of Collateral referred to in clause (d), (e)(iv) or (f) of the definition of “Permitted Disposition” in the Credit Agreement), (ii) the release of any Collateral from the security interest granted hereby pursuant to Section 6.09(c) of the Credit Agreement or (iii) the effectiveness of any written consent by the Administrative Agent or the requisite Lenders as provided under the Credit Agreement to the release of any Collateral from the security interest granted hereby, such Collateral (and, subject in the case of clause (i) above to compliance with Section 6.09(a) of the Credit Agreement, the Proceeds thereof) shall be automatically released from the security interest granted under this Agreement.
(d)    In connection with any release of any Collateral pursuant to this Section 14, the Administrative Agent will execute and deliver to the Grantor, at the Grantor’s sole expense, all appropriate UCC termination statements and other documents that the Grantor shall reasonably request to evidence such release.  The Administrative Agent shall have no liability whatsoever to any Secured Party as a result of any release of Collateral by it as permitted by this Section 14.  
Section 15.    Definitions.  The following terms shall have the following meanings.  Such definitions shall be equally applicable to the singular and plural forms of the terms defined.
“Agreement” has the meaning provided in the preamble hereto.
“Airport Authority” shall mean any city or any public or private board or other body or organization chartered or otherwise established for the purpose of administering, operating or managing an airport or related facilities.
“Collateral” has the meaning provided in Section 1 hereof.
“Credit Agreement” has the meaning provided in the recitals hereof.
“DOT” shall mean the United States Department of Transportation and any successor thereto.
“Event of Default” shall mean any “Event of Default” as defined in the Credit Agreement.
“Excluded Slots” shall mean (i) any Pledged Slots that are Disposed of by the Grantor in a transaction permitted by the Credit Agreement; provided that a Disposition of Pledged Slots referred to in clause (d), (e)(iv) or (f) of the definition of “Permitted Disposition” in the Credit Agreement shall not cause such Pledged Slot to be an Excluded Slot under this clause (i), and (ii) any FAA Slots held by the Grantor (whether or not then operated by the Grantor) listed on Schedule II of this Agreement as of the date of this Agreement or as updated pursuant to Section 6(iv).
“FAA” shall mean the Federal Aviation Administration of the United States of America and any successor thereto.
“FAA Slot” shall mean, in the case of airports in the United States, at any time, the right and operational authority to conduct one Instrument Flight Rule (as defined in Title 14) scheduled landing or take-off operation at a specific time or during a specific time period at any airport at which landings or take-offs are restricted, including, without limitation, slots and operating authorizations, whether pursuant to FAA or DOT regulations or orders pursuant to Title 14, Title 49 or other federal statutes now or hereinafter in effect.
“Gate Leaseholds” shall mean, at any time, all of the right, title, privilege, interest and authority, now held or hereafter acquired, of the Grantor, in connection with the right to use or occupy space in an airport terminal at any airport.
“Governmental Authority” shall mean the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank organization, or other entity exercising executive, legislative, judicial, taxing or regulatory powers or functions of or pertaining to government.  Governmental Authority shall not include any Person in its capacity as an Airport Authority. 
“Grantor” has the meaning provided in the preamble hereto.
“Pledged Gate Leaseholds” shall mean all Gate Leaseholds necessary at the relevant time of determination for servicing the scheduled air carrier service utilizing Pledged Slots relating to the airports at which such Pledged Slots are located.
“Pledged Historical Rights” shall mean, at any time, any rights of the Grantor to be granted at any future time FAA Slots at Newark Liberty International Airport, LaGuardia Airport, Ronald Reagan Washington National Airport or John F. Kennedy International Airport by virtue of the usage of Pledged Slots at such airport, whether pursuant to FAA or DOT regulations or orders pursuant to Title 14, Title 49 or other federal statutes now or hereinafter in effect (excluding, for the avoidance of doubt, any such rights associated with Excluded Slots).
“Pledged Slots” shall mean all of the FAA Slots held by the Grantor (whether or not then operated by the Grantor) at Newark Liberty International Airport, LaGuardia Airport, Ronald Reagan Washington National Airport and John F. Kennedy International Airport, other than Excluded Slots.
“Proceeds” shall have the meaning assigned to that term under the UCC as in effect in any relevant jurisdiction or under other relevant law and, in any event, shall include, but not be limited to, any and all (i) proceeds of any insurance, indemnity, warranty or guarantee payable to the Administrative Agent or to the Grantor or any Affiliate of the Grantor from time to time with respect to physical damage to any of the Collateral, (ii) payments (in any form whatsoever), made or due and payable to the Grantor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental Authority (or any Person acting under color of Governmental Authority) and (iii) instruments representing obligations to pay amounts in respect of the Collateral.
“Requirements” has the meaning provided in Section 6(ii) hereof.
“Security Agreement Termination Date” shall mean the earlier of (i) the date on which (a) the principal of and interest on all Loans shall have been paid in full and all other amounts then due under the Loan Documents shall have been paid in full, (b) all Commitments have been terminated, and (c) there are no outstanding Letters of Credit (other than such as have been Cash Collateralized or covered by a “back-to-back” letter of credit in accordance with the terms of the Loan Documents) and (ii) the date on which all of the Collateral shall have been released pursuant to Section 14(c).
“Title 14” shall mean Title 14 of the United States Code of Federal Regulations, including Part 93, Subparts K and S thereof, as amended from time to time or any successor or recodified regulation.
“Title 49” shall mean Title 49 of the United States Code, which, among other things, recodified and replaced the U.S. Federal Aviation Act of 1958, and the rules and regulations promulgated pursuant thereto or any subsequent legislation that amends, supplements or supersedes such provisions.
“Transfer Restriction” has the meaning provided in Section 1 hereof.
“United States Citizen” has the meaning provided in Section 4(viii) hereof.
Section 16.    Notices.  Any notice or communication by the Grantor or the Administrative Agent to the other is duly given if in writing and delivered in Person or by first class mail (registered or certified, return receipt requested), facsimile transmission or overnight air courier guaranteeing next day delivery, to the other’s address:
(a)    if to the Grantor:
JetBlue Airways Corporation 
27-01 Queens Plaza North
Long Island City, New York 11101 
Telephone:  (718) 286-7900 
Fax:  (718) 425-9260
Attention:  Senior Vice President and Treasurer
Email:  Treasury@jetblue.com

with a copy to:

JetBlue Airways Corporation 
27-01 Queens Plaza North
Long Island City, New York 11101 
Telephone:  (718) 286-7900 
Fax:  (718) 425-9260
Attention:  General Counsel

(b)    if to the Administrative Agent, to its office at:
Citibank, N.A. 
Loan Administration 
1615 Brett Road, OPS 3 
New Castle, DE 19720 
Telephone:  (302) 894-6010
Fax:  (212) 994-0847 
Attention:  Owen Coyle
The Grantor or the Administrative Agent, by notice to the other, may designate additional or different addresses for subsequent notices or communications.
All notices and communications will be deemed to have been duly given:  at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.
If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it. 

Section 17.    Continuing Security Interest; Transfer of Loans.  This Agreement shall create a continuing security interest in the Collateral.  This Agreement shall (i) remain in full force and effect until the Security Agreement Termination Date, (ii) be binding upon the Grantor, its successors and assigns, and (iii) inure, together with the rights and remedies of the Administrative Agent hereunder, to the benefit of the Administrative Agent and each other Secured Party and each of their respective successors, permitted transferees and permitted assigns; no other persons (including, without limitation, any other creditor of the Grantor) shall have any interest herein or any right or benefit with respect hereto.  Without limiting the generality of the foregoing clause (iii) and subject to the provisions of the applicable Loan Documents, any Secured Party may assign or otherwise transfer any indebtedness held by it secured by this Agreement to any other person or entity, and such other person or entity shall thereupon become vested with all the benefits in respect thereof granted to such Secured Party herein or otherwise, subject, however, to the provisions of the applicable Loan Documents.
Section 18.    Governing Law.  This Agreement shall be construed in accordance with and governed by the law of the State of New York.
Section 19.    Consent to Jurisdiction and Service of Process.  Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the 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, in any action or proceeding arising out of or relating to this Agreement, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall, to the extent permitted by law, be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in this Section 19.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 10.01 of the Credit Agreement.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.
Section 20.    Security Interest Absolute.  The obligations of the Grantor hereunder shall remain in full force and effect without regard to, and shall not be impaired by (a) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of the Grantor, except to the extent that the enforceability thereof may be limited by any such event; (b) any exercise or non-exercise, or any waiver of any right, remedy, power or privilege under or in respect of this Agreement or any other Loan Documents, except as specifically set forth in a waiver granted pursuant to Section 13; (c) any amendment to or modification of any Loan Document or any security for any of the Obligations, whether or not the Grantor shall have notice or knowledge of any of the foregoing, except as specifically set forth in an amendment or modification executed pursuant to Section 13; (d) any lack of validity or enforceability of the Lien(s) created hereunder; or (e) any other circumstances which might otherwise constitute a defense available to, or a discharge of, the Grantor (other than payment or performance in accordance with the terms of the Loan Documents).
Section 21.    Severability of Provisions.  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 or affecting the validity or enforceability of such provision in any other jurisdiction.
Section 22.    Headings.  Section headings used in this Agreement are for convenience of reference only and shall not affect the construction of this Agreement.
Section 23.    Execution in Counterparts.  This Agreement may be executed in any number of counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original, and all of which counterparts, taken together, shall constitute one and the same Agreement.  A set of the counterparts executed by all the parties hereto shall be lodged with the Grantor and the Administrative Agent.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or electronic .pdf copy shall be effective as delivery of a manually executed counterpart of this Agreement.
Section 24.    Successors and Assigns.  This Agreement shall be binding upon the Grantor and its successors and assigns and shall inure to the benefit of the Administrative Agent and each Secured Party and their respective successors and permitted assigns; provided that the Grantor may not transfer or assign any or all of its rights or obligations hereunder without the prior written consent of the Administrative Agent, unless otherwise permitted by the applicable Loan Documents (including without limitation a transaction permitted under Section 6.10 of the Credit Agreement).  All agreements, statements, representations and warranties made by the Grantor herein or in any certificate or other instrument delivered by the Grantor or on its behalf under this Agreement shall be considered to have been relied upon by the Secured Parties and shall survive the execution and delivery of this Agreement and the other Loan Documents regardless of any investigation made by the Secured Parties or on their behalf.
Section 25.    Construction of Schedule I.  It is understood and agreed that Schedule I is intended to be descriptive of the Pledged Slots as of the date hereof and shall not be construed as limiting in any way the Collateral subject to this Agreement. 
Section 26.    Rules of Interpretation.  The parties to this Agreement agree that the rules of interpretation set out in Section 1.02 of the Credit Agreement shall apply to this Agreement mutatis mutandis as if set out in this Agreement. 
Section 27.    Intercreditor Agreement.  Notwithstanding anything to the contrary contained in this Agreement, if at any time the Administrative Agent shall enter into any Intercreditor Agreement and such Intercreditor Agreement shall remain outstanding, the rights granted to the Secured Parties hereunder, the lien and security interest granted to the Administrative Agent pursuant to this Agreement and the exercise of any right or remedy by the Administrative Agent hereunder shall be subject to the terms and conditions of such Intercreditor Agreement.  In the event of any conflict between the terms of this Agreement and such Intercreditor Agreement, the terms of such Intercreditor Agreement shall govern and control with respect to any right or remedy, and no right, power or remedy granted to the Administrative Agent hereunder shall be exercised by the Administrative Agent, and no direction shall be given by the Administrative Agent, in contravention of such Intercreditor Agreement. 

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the Grantor and the Administrative Agent each has caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.
JETBLUE AIRWAYS CORPORATION
		
	By:  
	 
Name:     
Title:    

CITIBANK, N.A.,  
as Administrative Agent
		
	By:  
	 
Name:  
Title:

SCHEDULE I

PLEDGED SLOTS 

	
	
	FAA Slots at John F. Kennedy International Airport (JFK)

Summer 2013

	
							
	Count No.
	Airport
	Begin Time
	End Time
	Slot Type
	Slot ID
	Days

	1
	JFK
	600
	629
	D
	20130
	1234567

	2
	JFK
	600
	629
	D
	20156
	1234567

	3
	JFK
	600
	629
	A
	20451
	1234567

	4
	JFK
	600
	629
	D
	20776
	1234567

	5
	JFK
	600
	629
	D
	21293
	1234567

	6
	JFK
	630
	659
	D
	20541
	1234567

	7
	JFK
	630
	659
	D
	20611
	1234567

	8
	JFK
	630
	659
	D
	20643
	1234567

	9
	JFK
	630
	659
	D
	20762
	1234567

	10
	JFK
	630
	659
	A
	20783
	1234567

	11
	JFK
	630
	659
	D
	20786
	1234567

	12
	JFK
	630
	659
	D
	20890
	1234567

	13
	JFK
	630
	659
	D
	20902
	1234567

	14
	JFK
	630
	659
	D
	21034
	1234567

	15
	JFK
	630
	659
	D
	21189
	1234567

	16
	JFK
	630
	659
	D
	21235
	1234567

	17
	JFK
	630
	659
	D
	21315
	1234567

	18
	JFK
	630
	659
	A
	21371
	1234567

	19
	JFK
	630
	659
	D
	21373
	1234567

	20
	JFK
	700
	729
	A
	20438
	1234567

	21
	JFK
	700
	729
	D
	20550
	1234567

	22
	JFK
	630
	659
	D
	20595
	1234567

	23
	JFK
	700
	729
	A
	20691
	1234567

	24
	JFK
	700
	729
	D
	20744
	1234567

	25
	JFK
	700
	729
	A
	20750
	1234567

	26
	JFK
	700
	729
	A
	20770
	1234567

	27
	JFK
	700
	729
	D
	20805
	1234567

	28
	JFK
	700
	729
	A
	20822
	1234567

	29
	JFK
	700
	729
	A
	20989
	1234567

	30
	JFK
	700
	729
	D
	21091
	1234567

	31
	JFK
	700
	729
	A
	21237
	1234567

	32
	JFK
	700
	729
	A
	21346
	1234567

	33
	JFK
	700
	729
	A
	21382
	1234567

	34
	JFK
	730
	759
	A
	20141
	1234567

	35
	JFK
	730
	759
	A
	20250
	1234567

	36
	JFK
	730
	759
	D
	20293
	1234567

	37
	JFK
	730
	759
	D
	20352
	1234567

	38
	JFK
	730
	759
	A
	20570
	1234567

	39
	JFK
	730
	759
	D
	20601
	1234567

	40
	JFK
	730
	759
	D
	20729
	1234567

	41
	JFK
	730
	759
	D
	20949
	1234567

	42
	JFK
	730
	759
	A
	21312
	1234567

	43
	JFK
	730
	759
	D
	21394
	1234567

	44
	JFK
	800
	829
	D
	20094
	1234567

	45
	JFK
	800
	829
	D
	20230
	1234567

	46
	JFK
	800
	829
	A
	20328
	1234567

	47
	JFK
	800
	829
	A
	20481
	1234567

	48
	JFK
	800
	829
	A
	20564
	1234567

	49
	JFK
	800
	829
	D
	20569
	1234567

	50
	JFK
	800
	829
	D
	20830
	1234567

	51
	JFK
	800
	829
	D
	20844
	1234567

	52
	JFK
	800
	829
	D
	20924
	1234567

	53
	JFK
	800
	829
	D
	21075
	1234567

	54
	JFK
	800
	829
	D
	21087
	1234567

	55
	JFK
	800
	829
	D
	21107
	1234567

	56
	JFK
	800
	829
	D
	21308
	1234567

	57
	JFK
	800
	829
	A
	21331
	1234567

	58
	JFK
	800
	829
	D
	21369
	1234567

	59
	JFK
	830
	859
	A
	20081
	1234567

	60
	JFK
	830
	859
	A
	20196
	1234567

	61
	JFK
	830
	859
	D
	20251
	1234567

	62
	JFK
	830
	859
	A
	20272
	1234567

	63
	JFK
	830
	859
	A
	20282
	1234567

	64
	JFK
	830
	859
	A
	20497
	1234567

	65
	JFK
	830
	859
	A
	20703
	1234567

	66
	JFK
	830
	859
	A
	20747
	1234567

	67
	JFK
	830
	859
	D
	20796
	1234567

	68
	JFK
	830
	859
	A
	20814
	1234567

	69
	JFK
	830
	859
	A
	20919
	1234567

	70
	JFK
	830
	859
	D
	20982
	1234567

	71
	JFK
	830
	859
	D
	20986
	1234567

	72
	JFK
	900
	929
	A
	20035
	1234567

	73
	JFK
	900
	929
	D
	20080
	1234567

	74
	JFK
	900
	929
	D
	20192
	1234567

	75
	JFK
	900
	929
	D
	20775
	1234567

	76
	JFK
	900
	929
	D
	20806
	1234567

	77
	JFK
	900
	929
	D
	20821
	1234567

	78
	JFK
	900
	929
	D
	20895
	1234567

	79
	JFK
	900
	929
	A
	20971
	1234567

	80
	JFK
	900
	929
	A
	20980
	1234567

	81
	JFK
	900
	929
	D
	21124
	1234567

	82
	JFK
	900
	929
	A
	21299
	1234567

	83
	JFK
	900
	929
	A
	21310
	1234567

	84
	JFK
	900
	929
	D
	21398
	1234567

	85
	JFK
	900
	929
	D
	21401
	1234567

	86
	JFK
	900
	929
	A
	21417
	1234567

	87
	JFK
	930
	959
	D
	20004
	1234567

	88
	JFK
	930
	959
	D
	20228
	1234567

	89
	JFK
	930
	959
	D
	20305
	1234567

	90
	JFK
	930
	959
	D
	20369
	1234567

	91
	JFK
	930
	959
	A
	20634
	1234567

	92
	JFK
	930
	959
	A
	20653
	1234567

	93
	JFK
	930
	959
	D
	20704
	1234567

	94
	JFK
	930
	959
	D
	20983
	1234567

	95
	JFK
	930
	959
	A
	21052
	1234567

	96
	JFK
	930
	959
	D
	21134
	1234567

	97
	JFK
	930
	959
	A
	21169
	1234567

	98
	JFK
	930
	959
	D
	21216
	1234567

	99
	JFK
	930
	959
	A
	21232
	1234567

	100
	JFK
	930
	959
	A
	21400
	1234567

	101
	JFK
	930
	959
	D
	21423
	1234567

	102
	JFK
	930
	959
	A
	21424
	1234567

	103
	JFK
	1000
	1029
	A
	20077
	1234567

	104
	JFK
	1000
	1029
	D
	20145
	1234567

	105
	JFK
	1000
	1029
	D
	20190
	1234567

	106
	JFK
	1000
	1029
	D
	20542
	1234567

	107
	JFK
	1000
	1029
	D
	20837
	1234567

	108
	JFK
	1000
	1029
	A
	20959
	1234567

	109
	JFK
	1030
	1059
	A
	20109
	1234567

	110
	JFK
	1030
	1059
	D
	20124
	1234567

	111
	JFK
	1030
	1059
	D
	20193
	1234567

	112
	JFK
	1030
	1059
	D
	20416
	1234567

	113
	JFK
	1030
	1059
	D
	20641
	1234567

	114
	JFK
	1030
	1059
	D
	20682
	1234567

	115
	JFK
	1100
	1129
	D
	20318
	1234567

	116
	JFK
	1100
	1129
	A
	20417
	1234567

	117
	JFK
	1100
	1129
	D
	20527
	1234567

	118
	JFK
	1100
	1129
	A
	20594
	1234567

	119
	JFK
	1100
	1129
	A
	20650
	1234567

	120
	JFK
	1100
	1129
	A
	20658
	1234567

	121
	JFK
	1100
	1129
	D
	20754
	1234567

	122
	JFK
	1100
	1129
	D
	20803
	1234567

	123
	JFK
	1100
	1129
	D
	20981
	1234567

	124
	JFK
	1100
	1129
	D
	21385
	1234567

	125
	JFK
	1130
	1159
	A
	20018
	1234567

	126
	JFK
	1130
	1159
	D
	20043
	1234567

	127
	JFK
	1130
	1159
	D
	20246
	1234567

	128
	JFK
	1130
	1159
	A
	20614
	1234567

	129
	JFK
	1130
	1159
	D
	20699
	1234567

	130
	JFK
	1130
	1159
	A
	21212
	1234567

	131
	JFK
	1200
	1229
	D
	20001
	1234567

	132
	JFK
	1200
	1229
	D
	20032
	1234567

	133
	JFK
	1200
	1229
	D
	20201
	1234567

	134
	JFK
	1200
	1229
	A
	20280
	1234567

	135
	JFK
	1200
	1229
	D
	20539
	1234567

	136
	JFK
	1200
	1229
	A
	20672
	1234567

	137
	JFK
	1200
	1229
	A
	20771
	1234567

	138
	JFK
	1200
	1229
	D
	21181
	1234567

	139
	JFK
	1200
	1229
	A
	21270
	1234567

	140
	JFK
	1230
	1259
	A
	20003
	1234567

	141
	JFK
	1230
	1259
	D
	20118
	1234567

	142
	JFK
	1230
	1259
	A
	20215
	1234567

	143
	JFK
	1230
	1259
	A
	20259
	1234567

	144
	JFK
	1230
	1259
	D
	20343
	1234567

	145
	JFK
	1230
	1259
	A
	20476
	1234567

	146
	JFK
	1230
	1259
	A
	20841
	1234567

	147
	JFK
	1230
	1259
	A
	20964
	1234567

	148
	JFK
	1230
	1259
	A
	21248
	1234567

	149
	JFK
	1230
	1259
	A
	21278
	1234567

	150
	JFK
	1230
	1259
	A
	21291
	1234567

	151
	JFK
	1230
	1259
	A
	21355
	1234567

	152
	JFK
	1300
	1329
	D
	20176
	1234567

	153
	JFK
	1300
	1329
	A
	20529
	1234567

	154
	JFK
	1300
	1329
	D
	20559
	1234567

	155
	JFK
	1300
	1329
	A
	20915
	1234567

	156
	JFK
	1300
	1329
	D
	20963
	1234567

	157
	JFK
	1300
	1329
	D
	21311
	1234567

	158
	JFK
	1300
	1329
	D
	21393
	1234567

	159
	JFK
	1300
	1329
	D
	21422
	1234567

	160
	JFK
	1330
	1359
	A
	20026
	1234567

	161
	JFK
	1330
	1359
	D
	20229
	1234567

	162
	JFK
	1330
	1359
	A
	20376
	1234567

	163
	JFK
	1330
	1359
	D
	20581
	1234567

	164
	JFK
	1330
	1359
	D
	20590
	1234567

	165
	JFK
	1330
	1359
	D
	20635
	1234567

	166
	JFK
	1330
	1359
	A
	20660
	1234567

	167
	JFK
	1330
	1359
	A
	20968
	1234567

	168
	JFK
	1330
	1359
	D
	21150
	1234567

	169
	JFK
	1330
	1359
	A
	21160
	1234567

	170
	JFK
	1330
	1359
	D
	21161
	1234567

	171
	JFK
	1400
	1429
	D
	20129
	1234567

	172
	JFK
	1400
	1429
	D
	20252
	1234567

	173
	JFK
	1400
	1429
	A
	20441
	1234567

	174
	JFK
	1400
	1429
	A
	20838
	1234567

	175
	JFK
	1400
	1429
	A
	20947
	1234567

	176
	JFK
	1400
	1429
	A
	21026
	1234567

	177
	JFK
	1400
	1429
	A
	21078
	1234567

	178
	JFK
	1400
	1429
	A
	21178
	1234567

	179
	JFK
	1400
	1429
	D
	21195
	1234567

	180
	JFK
	1400
	1429
	D
	21268
	1234567

	181
	JFK
	1400
	1429
	A
	21408
	1234567

	182
	JFK
	1430
	1459
	D
	20103
	1234567

	183
	JFK
	1430
	1459
	A
	20395
	1234567

	184
	JFK
	1430
	1459
	D
	20494
	1234567

	185
	JFK
	1430
	1459
	D
	20521
	1234567

	186
	JFK
	1430
	1459
	D
	20751
	1234567

	187
	JFK
	1430
	1459
	D
	20931
	1234567

	188
	JFK
	1430
	1459
	A
	21031
	1234567

	189
	JFK
	1430
	1459
	A
	21061
	1234567

	190
	JFK
	1430
	1459
	A
	21137
	1234567

	191
	JFK
	1430
	1459
	D
	21314
	1234567

	192
	JFK
	1500
	1529
	D
	20005
	1234567

	193
	JFK
	1500
	1529
	A
	20334
	1234567

	194
	JFK
	1500
	1529
	A
	20784
	1234567

	195
	JFK
	1500
	1529
	A
	20937
	1234567

	196
	JFK
	1500
	1529
	D
	21191
	1234567

	197
	JFK
	1500
	1529
	D
	21354
	1234567

	198
	JFK
	1530
	1559
	D
	20098
	1234567

	199
	JFK
	1530
	1559
	D
	20127
	1234567

	200
	JFK
	1530
	1559
	D
	20155
	1234567

	201
	JFK
	1530
	1559
	D
	20356
	1234567

	202
	JFK
	1530
	1559
	A
	20400
	1234567

	203
	JFK
	1530
	1559
	D
	20952
	1234567

	204
	JFK
	1530
	1559
	D
	21030
	1234567

	205
	JFK
	1530
	1559
	A
	21081
	1234567

	206
	JFK
	1530
	1559
	A
	21409
	1234567

	207
	JFK
	1600
	1629
	A
	20041
	1234567

	208
	JFK
	1600
	1629
	A
	20715
	1234567

	209
	JFK
	1600
	1629
	A
	21148
	1234567

	210
	JFK
	1630
	1659
	D
	21301
	1234567

	211
	JFK
	1630
	1659
	A
	21399
	1234567

	212
	JFK
	1630
	1659
	A
	20010
	1234567

	213
	JFK
	1630
	1659
	A
	20114
	1234567

	214
	JFK
	1630
	1659
	D
	20519
	1234567

	215
	JFK
	1630
	1659
	A
	20537
	1234567

	216
	JFK
	1630
	1659
	D
	20554
	1234567

	217
	JFK
	1630
	1659
	D
	20629
	1234567

	218
	JFK
	1630
	1659
	A
	20748
	1234567

	219
	JFK
	1630
	1659
	A
	21063
	1234567

	220
	JFK
	1630
	1659
	D
	21262
	1234567

	221
	JFK
	1700
	1729
	D
	20054
	1234567

	222
	JFK
	1700
	1729
	A
	20226
	1234567

	223
	JFK
	1700
	1729
	D
	20292
	1234567

	224
	JFK
	1700
	1729
	A
	20808
	1234567

	225
	JFK
	1700
	1729
	A
	20883
	1234567

	226
	JFK
	1700
	1729
	A
	21007
	1234567

	227
	JFK
	1700
	1729
	D
	21080
	1234567

	228
	JFK
	1700
	1729
	D
	21154
	1234567

	229
	JFK
	1700
	1729
	A
	21207
	1234567

	230
	JFK
	1730
	1759
	A
	20086
	1234567

	231
	JFK
	1730
	1759
	A
	20088
	1234567

	232
	JFK
	1730
	1759
	D
	20179
	1234567

	233
	JFK
	1730
	1759
	D
	20195
	1234567

	234
	JFK
	1730
	1759
	D
	20391
	1234567

	235
	JFK
	1730
	1759
	D
	21184
	1234567

	236
	JFK
	1730
	1759
	D
	21426
	1234567

	237
	JFK
	1800
	1829
	A
	20110
	1234567

	238
	JFK
	1800
	1829
	A
	20424
	1234567

	239
	JFK
	1800
	1829
	A
	20817
	1234567

	240
	JFK
	1800
	1829
	A
	21036
	1234567

	241
	JFK
	1800
	1829
	D
	21115
	1234567

	242
	JFK
	1830
	1859
	A
	20247
	1234567

	243
	JFK
	1830
	1859
	A
	20260
	1234567

	244
	JFK
	1830
	1859
	D
	20378
	1234567

	245
	JFK
	1830
	1859
	D
	20486
	1234567

	246
	JFK
	1830
	1859
	D
	20528
	1234567

	247
	JFK
	1830
	1859
	A
	20732
	1234567

	248
	JFK
	1830
	1859
	A
	20900
	1234567

	249
	JFK
	1830
	1859
	A
	21060
	1234567

	250
	JFK
	1830
	1859
	D
	21126
	1234567

	251
	JFK
	1830
	1859
	A
	21188
	1234567

	252
	JFK
	1830
	1859
	D
	21309
	1234567

	253
	JFK
	1830
	1859
	D
	21349
	1234567

	254
	JFK
	1830
	1859
	D
	21396
	1234567

	255
	JFK
	1900
	1929
	D
	20069
	1234567

	256
	JFK
	1900
	1929
	D
	20132
	1234567

	257
	JFK
	1900
	1929
	A
	20134
	1234567

	258
	JFK
	1900
	1929
	A
	20493
	1234567

	259
	JFK
	1900
	1929
	A
	20532
	1234567

	260
	JFK
	1900
	1929
	A
	20617
	1234567

	261
	JFK
	1900
	1929
	A
	20749
	1234567

	262
	JFK
	1900
	1929
	A
	21176
	1234567

	263
	JFK
	1900
	1929
	A
	21259
	1234567

	264
	JFK
	1930
	1959
	D
	20131
	1234567

	265
	JFK
	1930
	1959
	D
	20255
	1234567

	266
	JFK
	1930
	1959
	D
	20279
	1234567

	267
	JFK
	1930
	1959
	A
	20323
	1234567

	268
	JFK
	1930
	1959
	D
	20560
	1234567

	269
	JFK
	1930
	1959
	D
	20842
	1234567

	270
	JFK
	1930
	1959
	A
	21072
	1234567

	271
	JFK
	1930
	1959
	A
	21221
	1234567

	272
	JFK
	2000
	2029
	D
	20008
	1234567

	273
	JFK
	2000
	2029
	A
	20039
	1234567

	274
	JFK
	2000
	2029
	A
	20059
	1234567

	275
	JFK
	2000
	2029
	D
	20295
	1234567

	276
	JFK
	2000
	2029
	A
	20652
	1234567

	277
	JFK
	2000
	2029
	D
	20689
	1234567

	278
	JFK
	2000
	2029
	D
	20755
	1234567

	279
	JFK
	2000
	2029
	A
	20788
	1234567

	280
	JFK
	2000
	2029
	D
	21164
	1234567

	281
	JFK
	2000
	2029
	A
	21273
	1234567

	282
	JFK
	2000
	2029
	D
	21323
	1234567

	283
	JFK
	2000
	2029
	D
	21365
	1234567

	284
	JFK
	2030
	2059
	D
	20171
	1234567

	285
	JFK
	2030
	2059
	D
	20275
	1234567

	286
	JFK
	2030
	2059
	D
	20326
	1234567

	287
	JFK
	2030
	2059
	D
	20556
	1234567

	288
	JFK
	2030
	2059
	A
	20685
	1234567

	289
	JFK
	2030
	2059
	A
	20779
	1234567

	290
	JFK
	2030
	2059
	A
	20836
	1234567

	291
	JFK
	2030
	2059
	D
	20958
	1234567

	292
	JFK
	2030
	2059
	A
	21013
	1234567

	293
	JFK
	2030
	2059
	D
	21183
	1234567

	294
	JFK
	2030
	2059
	D
	21236
	1234567

	295
	JFK
	2030
	2059
	D
	21341
	1234567

	296
	JFK
	2030
	2059
	D
	21359
	1234567

	297
	JFK
	2100
	2129
	A
	20025
	1234567

	298
	JFK
	2100
	2129
	A
	20101
	1234567

	299
	JFK
	2100
	2129
	A
	20107
	1234567

	300
	JFK
	2100
	2129
	D
	20222
	1234567

	301
	JFK
	2100
	2129
	D
	20263
	1234567

	302
	JFK
	2100
	2129
	D
	20386
	1234567

	303
	JFK
	2100
	2129
	A
	20625
	1234567

	304
	JFK
	2100
	2129
	A
	20765
	1234567

	305
	JFK
	2100
	2129
	A
	20777
	1234567

	306
	JFK
	2100
	2129
	A
	20866
	1234567

	307
	JFK
	2100
	2129
	A
	21001
	1234567

	308
	JFK
	2100
	2129
	D
	21079
	1234567

	309
	JFK
	2100
	2129
	A
	21256
	1234567

	310
	JFK
	2100
	2129
	A
	21297
	1234567

	311
	JFK
	2100
	2129
	A
	21329
	1234567

	312
	JFK
	2100
	2129
	A
	21415
	1234567

	313
	JFK
	2130
	2159
	D
	20014
	1234567

	314
	JFK
	2130
	2159
	A
	20066
	1234567

	315
	JFK
	2130
	2159
	A
	20112
	1234567

	316
	JFK
	2130
	2159
	D
	20138
	1234567

	317
	JFK
	2130
	2159
	D
	20207
	1234567

	318
	JFK
	2130
	2159
	A
	20267
	1234567

	319
	JFK
	2130
	2159
	D
	20345
	1234567

	320
	JFK
	2130
	2159
	D
	20367
	1234567

	321
	JFK
	2130
	2159
	A
	20382
	1234567

	322
	JFK
	2130
	2159
	A
	20408
	1234567

	323
	JFK
	2130
	2159
	D
	20546
	1234567

	324
	JFK
	2130
	2159
	A
	20705
	1234567

	325
	JFK
	2130
	2159
	A
	20956
	1234567

	326
	JFK
	2130
	2159
	D
	21175
	1234567

	327
	JFK
	2130
	2159
	A
	21284
	1234567

	328
	JFK
	2130
	2159
	A
	21360
	1234567

	329
	JFK
	2200
	2229
	A
	20006
	1234567

	330
	JFK
	2200
	2229
	A
	20174
	1234567

	331
	JFK
	2200
	2229
	D
	20312
	1234567

	332
	JFK
	2200
	2229
	A
	20913
	1234567

	333
	JFK
	2200
	2229
	D
	20961
	1234567

	334
	JFK
	2200
	2229
	A
	21057
	1234567

	335
	JFK
	2200
	2229
	A
	21325
	1234567

	336
	JFK
	2200
	2229
	A
	21366
	1234567

	337
	JFK
	2230
	2259
	D
	20011
	1234567

	338
	JFK
	2230
	2259
	D
	20413
	1234567

	339
	JFK
	2230
	2259
	D
	20473
	1234567

	340
	JFK
	2230
	2259
	D
	20545
	1234567

	341
	JFK
	2230
	2259
	A
	20562
	1234567

	342
	JFK
	2230
	2259
	A
	20677
	1234567

	343
	JFK
	2230
	2259
	A
	20738
	1234567

	344
	JFK
	2230
	2259
	D
	20874
	1234567

	345
	JFK
	2230
	2259
	A
	21083
	1234567

	346
	JFK
	2230
	2259
	D
	21145
	1234567

	347
	JFK
	2230
	2259
	D
	21223
	1234567

	348
	JFK
	2230
	2259
	A
	21361
	1234567

	 
	“A” means arrival slot; “D” means departure slot

	
	
	FAA Slots at Newark Liberty International Airport (EWR)

Summer 2013

	
							
	Count No.
	Airport
	Begin Time
	End Time
	Slot Type
	Slot ID
	Days

	1
	EWR
	600
	629
	D
	26050
	1234567

	2
	EWR
	730
	759
	D
	27121
	1234567

	3
	EWR
	800
	829
	A
	27141
	1234567

	4
	EWR
	800
	829
	D
	27161
	1234567

	5
	EWR
	900
	929
	D
	27230
	1234567

	6
	EWR
	900
	929
	D
	27231
	1234567

	7
	EWR
	1030
	1059
	A
	27289
	1234567

	8
	EWR
	1100
	1129
	D
	27337
	1234567

	9
	EWR
	1200
	1229
	A
	27390
	1234567

	10
	EWR
	1230
	1259
	A
	27435
	1234567

	11
	EWR
	1230
	1259
	D
	27447
	1234567

	12
	EWR
	1330
	1359
	A
	27510
	1234567

	13
	EWR
	1330
	1359
	D
	27526
	1234567

	14
	EWR
	1400
	1429
	D
	27554
	1234567

	15
	EWR
	1430
	1459
	A
	27574
	1234567

	16
	EWR
	1500
	1529
	D
	27643
	1234567

	17
	EWR
	1600
	1629
	A
	27695
	1234567

	18
	EWR
	1630
	1659
	A
	27731
	1234567

	19
	EWR
	1630
	1659
	D
	27751
	1234567

	20
	EWR
	1730
	1759
	A
	27807
	1234567

	21
	EWR
	1730
	1759
	D
	27824
	1234567

	22
	EWR
	1830
	1859
	D
	27894
	1234567

	23
	EWR
	2030
	2059
	A
	28030
	1234567

	24
	EWR
	2030
	2059
	A
	28031
	1234567

	25
	EWR
	2100
	2129
	D
	28079
	1234567

	26
	EWR
	2100
	2129
	D
	28080
	1234567

	27
	EWR
	2130
	2159
	A
	28101
	1234567

	28
	EWR
	2200
	2229
	A
	28128
	1234567

	 
	“A” means arrival slot; “D” means departure slot

	
	
	FAA Slots at Ronald Reagan Washington National Airport (DCA)

Summer 2013

	
							
	Count No.
	Airport
	Begin Time
	End Time
	Slot Type
	Slot ID
	Days

	1
	DCA
	600
	659
	N
	1102
	1234567

	2
	DCA
	2200
	2259
	N
	1148
	1234567

	3
	DCA
	700
	759
	N
	1147
	12345..

	4
	DCA
	800
	859
	N
	1132
	1234567

	5
	DCA
	800
	859
	N
	1150
	1234567

	6
	DCA
	900
	959
	N
	1056
	1234567

	7
	DCA
	1000
	1059
	N
	1030
	1234567

	8
	DCA
	1000
	1059
	N
	1083
	1234567

	9
	DCA
	1100
	1159
	N
	1223
	1234567

	10
	DCA
	1200
	1259
	N
	1027
	1234567

	11
	DCA
	1300
	1359
	N
	1142
	1234567

	12
	DCA
	1400
	1459
	N
	1109
	1234567

	13
	DCA
	1600
	1659
	N
	1389
	1234567

	14
	DCA
	1700
	1759
	N
	1238
	1234567

	15
	DCA
	1800
	1859
	N
	1401
	1234567

	16
	DCA
	1800
	1859
	N
	1515
	1234567

	17
	DCA
	2000
	2059
	N
	1308
	12345.7

	18
	DCA
	2100
	2159
	N
	1065
	12345.7

	 
	“N" means non-directional -- i.e., the slot can be used for either a departure or an arrival

	
	
	FAA Slots at LaGuardia Airport (LGA)

Summer 2013

	
							
	Count No.
	Airport
	Begin Time
	End Time
	Slot Type
	Slot ID
	Days

	1
	LGA
	600
	629
	D
	3323
	12345..

	2
	LGA
	730
	759
	D
	35158
	12345..

	3
	LGA
	830
	859
	A
	35103
	12345..

	4
	LGA
	930
	959
	D
	35012
	12345..

	5
	LGA
	1230
	1259
	A
	35101
	12345.7

	6
	LGA
	1300
	1329
	D
	35163
	12345.7

	7
	LGA
	1400
	1429
	A
	35030
	12345.7

	8
	LGA
	1430
	1459
	D
	35029
	12345.7

	9
	LGA
	1530
	1559
	A
	35061
	12345.7

	10
	LGA
	1600
	1629
	D
	35150
	12345.7

	11
	LGA
	2000
	2029
	A
	35152
	12345.7

	12
	LGA
	2100
	2129
	D
	35164
	12345.7

	13
	LGA
	2100
	2129
	A
	35165
	12345.7

	14
	LGA
	2130
	2159
	A
	3751
	12345.7

	15
	LGA
	2130
	2159
	D
	35063
	12345.7

	16
	LGA
	630
	659
	D
	3326
	12345..

	17
	LGA
	700
	729
	D
	2201
	12345..

	18
	LGA
	800
	829
	A
	2108
	12345..

	19
	LGA
	930
	959
	D
	3318
	12345..

	20
	LGA
	1000
	1029
	A
	2072
	12345..

	21
	LGA
	1030
	1059
	D
	2182
	12345..

	22
	LGA
	1230
	1259
	A
	3093
	12345.7

	23
	LGA
	1330
	1359
	D
	3075
	12345.7

	24
	LGA
	1430
	1459
	A
	3098
	12345.7

	25
	LGA
	1600
	1629
	D
	3569
	12345.7

	26
	LGA
	1630
	1659
	A
	2004
	12345.7

	27
	LGA
	1730
	1759
	D
	2129
	12345.7

	28
	LGA
	1830
	1859
	A
	2007
	12345.7

	29
	LGA
	1930
	1959
	D
	2038
	12345.7

	30
	LGA
	2030
	2059
	A
	3104
	12345.7

	31
	LGA
	2130
	2159
	A
	3054
	12345.7

	 
	“A” means arrival slot; “D” means departure slot

SCHEDULE II
EXCLUDED SLOTS

The following are Excluded Slots (for current and future IATA seasons):  

	
							
	Count No.
	Airport
	Begin Time
	End Time
	Slot Type
	Slot ID
	Days

	1
	DCA
	800
	859
	N
	11109
	1234567

	2
	DCA
	2100
	2159
	N
	11110
	1234567

	 
	“N" means non-directional -- i.e., the slot can be used for either a departure or an arrival

ivExhibit 10.3

Exhibit 10.3

OnPointsm Solutions

RATE PER ENGINE FLIGHT HOUR
ENGINE SERVICES AGREEMENT

BETWEEN

GE Engine Services, LLC

And

JetBlue Airways Corporation

Agreement Number: 1-3036849991 - 0

Dated: May 1, 2013

This proposed Agreement will remain open until June 6, 2013 and will expire if not 
signed by all Parties on or before that date.

PROPRIETARY INFORMATION NOTICE
The information contained in this document is GE Engine Services, LLC ("GE") Proprietary Information and is disclosed in confidence.  It is the property of GE and will not be used, disclosed to others or reproduced without the express written consent of GE.  If consent is given for reproduction in whole or in part, this notice and the notice set forth on each page of this document will appear in any such reproduction.  U.S. export control laws may also control the information contained in this document.  Unauthorized export or re-export is prohibited. 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 1 -
Proprietary Information Subject to Restrictions on Cover Page

TABLE OF CONTENTS

ARTICLE 1 – DEFINITIONS    3
ARTICLE 2 – TERM/ENGINES/SERVICES    3
ARTICLE 3 – RATE PER EFH SERVICES    3
ARTICLE 4 – SUPPLEMENTAL WORK SERVICES    7
ARTICLE 5 – PRICING    8
ARTICLE 6 – INVOICING AND PAYMENT    9
ARTICLE 7 – FLEET MANAGEMENT    11
ARTICLE 8 – WARRANTY    12
ARTICLE 9 – DELIVERY/REDELIVERY    14
ARTICLE 10 – ADDITION OF ENGINES    14
ARTICLE 11 – REMOVAL OF ENGINES    15
ARTICLE 12 – TERMINATION    16
ARTICLE 13 – REPRESENTATIONS    16
ARTICLE 14 – GENERAL TERMS AND CONDITIONS    17
EXHIBIT A: DEFINITIONS    19
EXHIBIT B: ENGINES COVERED    22
EXHIBIT C:  RATE ADJUSTMENT    24
EXHIBIT D: PRICE ADJUSTMENT MATRIX    26
EXHIBIT E: SUPPLEMENTAL WORK SERVICES PRICING    28
EXHIBIT F:  SUPPLEMENTAL WORK SERVICES PRICING – ANNUAL ADJUSTMENT    29
EXHIBIT G: SUPPLEMENTAL WORK SERVICES PRICING - FIXED PRICE LABOR SCHEDULE    30
EXHIBIT H: SUPPLEMENTAL ON-WING SUPPORT    31
EXHIBIT I: LRU LIST ....................................................................................... 34
EXHIBIT J: GENERAL TERMS AND CONDITIONS    35
EXHIBIT K: DESIGNATION LETTER    40
EXHIBIT L: LLP LIST................................................................................................ 41

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 2 -
Proprietary Information Subject to Restrictions on Cover Page

OnPointsm Solutions Engine Services Agreement

THIS ENGINE SERVICES AGREEMENT is made and is effective as of May 1, 2013 (the “Effective Date”) by and between JetBlue Airways Corporation, having its principal place of business at 27-01 Queens Plaza North, Long Island City, NY 11101 USA ("Customer") and GE Engine Services, LLC, having its principal place of business at One Neumann Way, Cincinnati, Ohio 45215 ("GE") (either a “Party” or collectively, the “Parties”).

ARTICLE 1 – DEFINITIONS

Capitalized terms used in this Agreement and not otherwise defined have the meaning set forth in Exhibit A.

ARTICLE 2 – TERM / ENGINES / SERVICES

2.1    Term.  Each Party’s obligation to perform will commence upon May 1, 2013 and such obligation will continue, unless sooner terminated through June 30, 2022 (the “Initial Term”).  The Parties may renew or extend this Agreement upon mutual written agreement prior to the end of the Initial Term (any such extensions, together with the Initial Term shall be the “Term”).

2.2    Engines.  The Engines covered by this Agreement are set forth on Exhibit B.  During the Term of this Agreement, GE shall be [***] provider of both Rate Per EFH Services and Supplemental Work Services for the Engines.  

2.3    Services Provided.  GE will provide Services to restore Engines to Serviceable condition in accordance with the Workscope and the terms of this Agreement.

2.4    Eligibility.  New Engines are eligible for Rate Per EFH Services and Supplemental Work Services on the date of their delivery.  Any Used Engines are eligible for Supplemental Work Services as of the Effective Date and are eligible for Rate Per EFH Services either as of the date of the completion of a Qualifying Shop Visit (“QSV”) as detailed in Article 10, or if GE has determined that a QSV is not necessary, as of the Effective Date.

ARTICLE 3 – RATE PER EFH SERVICES

3.1    Covered Services.  

		
	a.
	A “Rate Per EFH Shop Visit” is a shop visit where:

		
	i.
	after troubleshooting by Customer in accordance with the Aircraft Maintenance Manual (“AMM”) and/or the Fault Isolation Manual, a shop visit is required due to an Engine being in an Unserviceable condition; and

		
	ii.
	the maintenance or repair required on the Engine cannot be performed on-wing (as determined by Customer and GE’s Customer Program Manager or delegate); and

    
		
	iii.
	such shop visit  is not required as a result of any of the circumstances listed in Article 4.1 (i.e., Supplemental Work); and

		
	iv. 
	planned shop visits as mutually agreed to by the Parties including pro-active quick turn and full shop visit to support [***] through the end of 2014.

		
	b.
	GE will provide the following Services (the “Rate Per EFH Services”) at the Rate Per EFH, subject to the provisions of Article 7 and Article 4.1.a.:

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 3 -
Proprietary Information Subject to Restrictions on Cover Page

		
	i.
	Provide, either at a Repair Station, an approved subcontractor, or such other location as previously agreed by Customer and GE, [***].

		
	ii.
	[***].

		
	iii.
	[***].

		
	iv.
	Inspect and repair [***].

		
	v.
	Inspect and repair [***], as evidenced by records provided in accordance with Article 9.

		
	vi.
	[***].

		
	vii.
	[***].

		
	viii.
	On-Wing Support services (as described in Exhibit H) [***].

3.2    Diagnostics.  GE will provide comprehensive diagnostics services as Rate Per EFH Services in order to identify and diagnose trend shifts as follows: 

		
	a.
	Engine condition data will be automatically processed by diagnostics software 24 hours a day, 7 days a week (“24x7”) when received at the designated GE facility.  GE will be responsible for operating and maintaining the Diagnostics software and the necessary facilities.

		
	b.
	Customer Notification Reports (“CNR”) for Engine condition monitoring trend shift observation, including engineering review, analysis, and recommendations will be provided to Customer, as required, on a 24x7 basis.

		
	c.
	Access to Diagnostics engineers for Engine diagnostic support and consultation, as required.

		
	d.
	Periodic teleconferences with Customer to review reports and program status.

		
	e.
	Weekly engine health trend summary and analysis reports to Customer.

		
	f.
	Monthly engine thrust Severity Derate report to Customer.

		
	g.
	Access to web-based tools for reviewing Engine condition data and assessing Engine health. 

Where Customer is a lessee or otherwise not the owner of the Engine(s), GE reserves the right to disclose engine operational performance data to the lessor and/or owner of the Engines (with prior notice to Customer), subject to such third party undertaking appropriate obligations of confidentiality. Any information provided to Customer by GE for use in troubleshooting and managing operations is advisory only.  GE is not responsible for line maintenance or other actions resulting from such advice.  Customer is responsible for identifying and resolving any aircraft or Engine faults or adverse trends resulting from this monitoring. 

3.3    Transportation.  [***] GE shall not be liable for any direct or indirect damages incurred by Customer related to delay in providing Engine documentation or Engine Delivery.

3.4    Lease Engines. 

		
	a. 
	Subject to the conditions in 3.4(b) below, GE will provide the following lease engine coverage:

		
	•
	(i) If Customer [***], then Customer is eligible for the “lease engine” coverage described in this Article 3.4.

		
	•
	(ii) Within 12 hours of being notified by Customer that [***], GE will advise Customer of the location of the closest available lease engine.

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 4 -
Proprietary Information Subject to Restrictions on Cover Page

		
	•
	(iii) [***], GE shall promptly deliver, or cause to be delivered, such lease engine to Customer at risk of loss to GE, including damage during transport, to the location designated by Customer.  Risk of loss will pass to Customer upon acceptance of the lease engine following visual inspection and record review. GE will use its best efforts to provide this lease engine in a neutral QEC configuration.  [***].

		
	•
	(iv) GE’s obligation to provide such lease engine will terminate when the condition identified in 3.4.a.(i), above, is corrected by the Redelivery of an Engine to Customer, subject to Customer’s obligation to return the lease engine as set forth below.

		
	•
	(v) GE will pay [***] and Customer will pay [***] until the lease engine is removed from Customer’s aircraft. Customer [***].

CF34-10 Use Fee Amount / Flight Hours ($[***] escalated per Exhibit C)

	
							
	Hour Cycle Ratio
	0.5
	1
	1.5
	2
	2.5
	3

	Engine Supple-mental Rent
	[***]
	[***]
	[***]
	[***]
	[***]
	[***]

Rate = [***]
Example (1.6 Flight Leg):
Rate = [***]
Rate = [***]
Rate = [***]    

		
	•
	(vi) In the event that GE cannot provide such a lease engine in accordance with this Article 3.4, and Customer is able to locate a spare engine from a third party, [***].

		
	•
	(vii) [***]

		
	•
	(viii) [***]

		
	b. 
	Lease Engine Condition.  GE’s provision of any lease engine is predicated upon the following:

		
	•
	(i) The Parties have established a mutually agreeable Removal Schedule, including forecasts which may be amended by [***];

		
	•
	(ii) Customer has made Engines for shop visits available for pick up within seventy-two (72) hours following removal from the aircraft;

		
	•
	(iii) Customer is in full compliance with the records requirements of Article 9;

		
	•
	(iv) Customer has executed a lease agreement with GE, or a GE affiliate;

		
	•
	(v) Customer is not in material breach of this Agreement or any lease agreement (with GE or a GE affiliate) entered into in connection with this Agreement. (vi) Each lease engine shall be Serviceable and ready for use without additional repairs by Customer. 

		
	c. 
	Return of Lease Engines 

		
	i.
	Outside of [***]:

		
	(1)
	Customer shall make the lease engine available for pick up by GE, from Customer’s Primary Hubs, as soon as practicable, but in no case later than ten (10) Days following redelivery of an Engine; 

		
	(2)
	Customer shall be responsible for clearing the lease engine for import or export where applicable, and shall bear all costs (included but not limited to payment of duty for import 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 5 -
Proprietary Information Subject to Restrictions on Cover Page

or export and all customs formalities) and risks involved in bringing the lease engine to its designated Primary Hub location; 
		
	(3)
	Customer bears risk of loss for the lease engine until GE designated transportation pick up;

		
	(4)
	Customer shall provide GE with notice regarding Customer’s designated Primary Hub location;

		
	(5)
	[***]; and

		
	(6)
	Pursuant to 3.4.a.(v), above, Customer shall pay any and all applicable fees on or before the eleventh (11th) Day following correction of the AOG condition.

		
	ii.
	Under [***]:

		
	(1)
	Customer shall make lease engines [***] available for pick up by GE, from Customer’s designated Primary Hub location, as soon as practicable, but in no case later than ten (10) Days following redelivery of the last [***];

		
	(2)
	Customer shall be responsible for clearing the lease engine for import or export where applicable, and shall bear all costs (included but not limited to payment of duty for import or export and all customs formalities) and risks involved in bringing the Lease Engine to its designated Primary Hub location; 

		
	(3)
	Customer bears risk of loss for the lease engine until GE designated transportation pick up; and

		
	(4)
	Customer shall provide GE with notice regarding Customer’s designated Primary Hub location.

		
	d. 
	Lease Agreement. Customer and GE’s designated lessor agree to use their commercially reasonable efforts to agree to the terms (excluding engine specific variables) of the Lease Agreement (a sample of which has been provided by GE) as soon as reasonably practicable after the date of execution of this Agreement, and in any event within 30 Days of such date of execution.

		
	e. 
	Sole Remedy.  The foregoing provisions of this Article 3.6 will constitute the sole remedy of Customer and the sole liability of GE for lease engine availability and resolution of AOG conditions under this Agreement.

ARTICLE 4 – SUPPLEMENTAL WORK

4.1    Supplemental Work.  Supplemental Work will include the following:

		
	a. 
	Any and all Services not covered under Article 3 as Rate Per EFH Services unless mutually agreed by the Parties to be included as Rate Per EFH Services;

		
	b. 
	Any Services provided on Engines not eligible for Rate Per EFH Services;

		
	c. 
	Services required as a result of:

[***]

		
	e.
	At Customer’s request, Services provided on-wing through OWS at the rates and in accordance with the terms set forth in Exhibit H.

		
	f.
	Repair and maintenance services for Engine transportation stands and containers during shop visits; and

		
	g.
	Services provided at a shop visit for which Customer Delivered an Engine for Services against the advice and consent of GE’s Customer Program Manager or delegate, unless the Parties mutually agree after Delivery of the Engine that such shop visit does qualify for Rate Per EFH Services under Article 3.2.

ARTICLE 5 – PRICING

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 6 -
Proprietary Information Subject to Restrictions on Cover Page

5.1    Rate Per EFH Pricing.  Unless otherwise stated, all rates and prices are in [***] US Dollars.  Rate Per EFH Services will be performed by GE at the Rate Per EFH as follows:

Rate Per EFH:    $[***] USD

The above Rate Per EFH is applicable to all EFH incurred starting on the Effective Date.

5.2    Rate Per EFH Parameters.  The Rate Per EFH is predicated on the following parameters:

	
					
	Engines:

[***]

	Utilization:

[***]
	EFH/EFC Ratio:

[***]
	Take-Off Derate:

[***]
	Static Temperature Adjusted to Sea Level:

[***]

[***] 

5.3    Rate Per EFH Adjustment.

		
	a.
	Escalation. The Rate Per EFH shall adjust on an annual basis in accordance with the escalation formula set forth on Exhibit C.

		
	b.
	Severity.  The Rate Per EFH will be adjusted when there is a deviation from the parameters in Article 5.2 per the Price Adjustment Matrix set out in Exhibit D.  Customer will provide information regarding the above parameters on a monthly basis and in a mutually agreed upon format in accordance with Article 6.

		
	c.
	Water Wash. Customer agrees that it shall undertake water wash for each Engine using equipment and procedures approved by GE, such approval not to be unreasonably withheld or delayed by GE (Customer’s current equipment and procedures has been approved by GE).  Water wash for each Engine will be based on the rate of Engine EGT deterioration using the engine health condition monitoring program. The water wash interval of each Engine shall be consistent with current Customer practice of [***] (understanding new Engines or recently overhauled Engines may have a longer initial interval).  Customer and GE will mutually verify the effectiveness of water wash performed by Customer to determine any adjustments required. The Rate per EFH set out in Article 5.1 above is subject to an adjustment should Customer fail, or otherwise be unable, to perform the water wash in the manner stated in this Article 5.3(c). Customer shall further inform GE of the dates and Engine serial numbers in writing of water washes conducted each quarter during the term of this Agreement.

5.4    Supplemental Pricing. Supplemental Work Services will be performed by GE in accordance with pricing provisions set forth on Exhibit E.  Such pricing shall adjust on an annual basis in accordance with the escalation formula set forth on Exhibit F.

5.5    LLP Pricing. Life Limited Parts as defined by attached Exhibit L, subject to changes per engine shop manual. Special LLP pricing shall be effective during the Term of this Agreement and is subject to the following conditions:
		
	a.
	LLP pricing is set at [***] CLP to be escalated per the CLP;

		
	b.
	Subject to the following cap: the LLP pricing is subject to economic price adjustments on January 1 of each year in accordance with the CLP. For annual changes in the CLP greater than or equal to [***]% and less than or equal to [***]%, the LLP pricing will be adjusted by [***]%. For annual changes in the CLP greater than [***]%, the LLP pricing will be adjusted by [***]%, [***];

		
	c.
	Customer replaces LLP with new LLP purchased exclusively from GE or LLP retained by Customer for future use in its fleet per Article 7.7e. In the case of used parts, Customer and GE may per mutual agreement on a case by case basis, elect to incorporate used serviceable LLP if 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 7 -
Proprietary Information Subject to Restrictions on Cover Page

available for purchase from GE not to exceed ten percent (10%) of the total replaced LLP spend over the Term;  and
		
	d.
	LLP’s to be paid on a Supplemental Work basis pursuant to Exhibit E.

For Example:
		
	1.
	If change is [***]%, Customer pays [***]% adjustment;

		
	2.
	If change is [***]%, Customer pays [***]% adjustment;

		
	3.
	If change is [***]%, Customer pays [***]% adjustment.

5.6    [***]

ARTICLE 6 – INVOICING AND PAYMENT

6.1    Rate Per EFH Payments.  By the tenth (10th) of each month, Customer will provide to GE the flight hours and cycles flown by each Engine serial number since delivery from manufacturer.  The Current Rate Per EFH, multiplied by the total EFH for each Engine elapsed in the prior month, will be provided to Customer in the monthly invoice no later than the fifteenth (15th) of the month.  Customer will make payment within thirty (30) Days from the date of the invoice receipt, subject to the rest of this Article 6.

Concurrently, GE and/or the Customer will provide to the other Party data on the average derate for each Engine in the previous month.  Using this data, GE will determine the average flight leg, annualized utilization, Static Temperature Adjusted to Sea Level and derate parameters for the previous month for each Engine.  The Current Rate Per EFH for each Engine will be adjusted in accordance with the Price Adjustment Matrix based on these parameters.  This rate multiplied by the total EFH for each Engine elapsed in the prior month, will be calculated monthly to determine the variation from the Current Rate per EFH.  The total variation for the 3 months in each quarter will be calculated and Customer will be invoiced or credited no later than the fifteenth (15th) of the month following the quarter end.  Customer will make payment within thirty (30) Days from the date of the invoice receipt if invoiced subject to the rest of this Article 6.  

For the purposes of this provision the “annualized utilization” for a particular month will be calculated by (i) dividing the hours flown by the relevant Engine in the relevant month by the days in that particular month and (ii) multiplying that figure by three hundred and sixty-five point two five (365.25).

6.2    [***]

6.3    Supplemental Work Payments.

		
	a. 
	Initial Invoice:  Upon completion of Supplemental Work Services, GE will issue an initial invoice for the Services which Customer will pay within thirty (30) Days of the date of invoice receipt.  

		
	b. 
	Final Invoice:  Following Redelivery and all associated documentation, GE will issue a final invoice within a reasonable time, and generally within sixty (60) Days of Redelivery for Supplemental Work Services based on actual charges to complete the Services, including any credits due Customer. Such invoice will be reconciled with the initial invoice and Customer’s payment.  Customer will pay the final invoice (if any amount is due) within thirty (30) Days of the date of invoice receipt.  

6.4    Late Payment Remedies.  Should Customer fail to make any payment when due and upon written notice from GE, GE may charge a fee for late payment at a rate equal to [***]. For clarity, the calculation is as follows:
 
	
								
	Summary Example:
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	Invoice Amount:
	  [***]
	 

	 
	 
	 
	 
	 
	 
	 
	 

[***]

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 8 -
Proprietary Information Subject to Restrictions on Cover Page

Payments will be applied to any late payment fees then to the oldest outstanding amounts in order of succession.  If during any twelve (12) month period, Customer demonstrates a consistent pattern of making late payments on amounts not the subject of a good faith dispute (as discussed below), when due, and does not cure such failure within ten (10) Days of the applicable due date, GE may terminate or suspend performance of all or any portion of this Agreement until payment is made in full of all past due amounts (not the subject of a good faith dispute) and it receives commercially acceptable assurances of future payment performance [***]. GE agrees to provide thirty (30) days’ written notice to Customer prior to termination or suspension and/or application of a change in Customer payment terms. 

6.5    Customer Disputed Invoice Amounts.  Customer shall be permitted to withhold payment from any invoice for any amount for which it disputes in good faith. If, after review and good faith negotiation by the Parties, the dispute is decided in favor of GE, then Customer shall remit payment of such withheld amount(s), without interest, premium or penalty, within twenty (20) Days of such resolution. If, after review and good faith negotiation by the Parties, the dispute is decided in favor of Customer, then any related fees that may have already been paid by Customer shall be credited to Customer’s account. Notwithstanding the foregoing, if disputed invoices cannot be resolved through good faith negotiations between the Parties within thirty (30) Days, either Party may invoke the dispute resolution procedures as described herein.

6.6    Remittance.  All payments under this Agreement will be made in United States Dollars, immediately available for use, without any right of set-off or deduction except as allowed per this Agreement, via wire transfer by Customer to the bank account and address designated below.

[***]

ARTICLE 7 – FLEET MANAGEMENT

7.1    Program Manager. GE will assign a Customer Program Manager who will be the point of contact for Customer with respect to Services and who will:

		
	a. 
	Draft a Procedures Manual and submit it to the Customer for mutual approval;

		
	b. 
	Work with the Customer, on a monthly basis, to develop a Removal Schedule which will identify by serial number the Engine(s) to be removed during the following six (6) month period, the anticipated reason for removal of each, and the schedule for Delivery;

		
	c. 
	For the avoidance of doubt, nothing contained herein shall limit Customer’s ability to have the final say in all decisions pertaining to Engine removals from aircraft, maintenance, planning, etc. Customer shall use reasonable efforts to maximize engine on-wing life including troubleshooting, water wash, Diagnostics monitoring and adherence to AMM. Customer’s refusal to comply with the Customer Program Manager’s recommendations shall not be considered a default on the part of Customer, but may effect whether the relevant Services are covered under Article 3 or Article 4, as mutually determined by the Parties.

7.2     Workscope. Prior to Induction, GE will prepare a Workscope and provide it to Customer for approval.

7.3    Line Maintenance.  Customer will provide all line maintenance and repair and line station support, consistent with Customer’s historical maintenance practices and OEM recommendations.

7.4    Monitoring Equipment.  Customer will provide an automated method to transfer operational and maintenance data to GE for the monitoring and diagnosis of Engine condition.  If the aircraft is equipped with air-to-ground equipment such as ACARS, then Customer will forward the data directly to the GE SITA/ARINC address.  If air-ground equipment is not available, GE will work with Customer to establish an alternate electronic means of providing this data.

7.5    Designated Repair Station.  The Designated Repair Station (“DRS”) will be Strother.  GE may change the DRS upon Customer’s prior written consent which shall not be unreasonably withheld or 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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delayed. Upon such change, the Parties agree to discuss in good faith and mutually agree upon the details of such change in writing, including the effect of such change on fees and duties payable by Customer. GE may provide Services at a location other than a Repair Station including performance of repairs on-wing or on-site with Customer’s prior written consent.  If GE changes the DRS or performs services other than at the DRS, Customer’s obligations under this Agreement will be no greater than if Services were performed at the original DRS.

7.6    Subcontracting.  All Services performed under the Agreement will be performed by GE or its designated subcontractors at maintenance and repair facilities that are properly licensed and certified by the AAA to perform the Services.  GE will obtain Customer’s prior written consent, which shall not be unreasonably withheld or delayed, prior to subcontracting Services on an entire Engine assembly.  For individual components of the Engine subcontracted out for Service and returned separately from the Engine assembly directly to Customer by a subcontractor, GE shall be required to obtain prior written consent to subcontract Service and the subcontractor shall be on Customer’s AVL.  However, GE shall not be required to obtain Customer’s consent to subcontract Services on individual components of an Engine.  If GE does subcontract Services, the Customer obligations under this Agreement will be no greater than if such Services were performed at the DRS or directly by GE.  Customer will, at its sole expense, have the right to review GE's quality system audit report(s) for such subcontractor(s).  Subcontracting of any Services and/or component part replacement/repair will not relieve GE of its performance obligations set forth in this Agreement.

7.7    Parts Replacement Procedures. 

		
	a. 
	Missing Parts at Delivery.  Upon Delivery, GE will promptly notify Customer of any components or LRUs missing from Engines.  GE will replace such missing items at Customer’s expense as Supplemental Work Services, unless Customer notifies GE in writing within a reasonable period of time of receiving GE’s notice that Customer wishes to furnish such missing items within a period to be mutually agreed.

		
	b. 
	Parts Replacement.  GE will determine which parts are required to perform the Services and will provide all parts and materials (new or used Serviceable, including use of Rotable Parts) required to accomplish the Services.  Each used Serviceable part will be a GE part of a similar age, value and utility to the removed part. Additionally, each used Serviceable part shall not have been exposed to past accident or incident and such transfer/exchange shall not result in a de-compliance with any SB. GE may issue compatible parts from GE's Rotable Parts inventory to replace Customer's parts requiring Services.  Customer agrees to accept compatible Rotable Parts that are in compliance with the Workscope. GE agrees to utilize Customer’s tracked parts list as parts that require Customer approval prior to replacement with used or Rotable Parts.

		
	c. 
	Life Limited Parts.  GE will replace[***] upon Customer’s instruction to do so, any LLP that GE receives without the required records.  Prior to replacing such LLP, GE will notify Customer of any missing (or incomplete) records and allow Customer two (2) business days to acknowledge and forward such missing or incomplete records. If GE does not receive the relevant records within two (2) business days, the time period set forth in the TAT Guarantee in Article 8.4 shall be extended by the number of additional days it takes Customer to provide the records or consent to replace the LLP.

		
	d. 
	Customer Furnished Equipment (“CFE”).  For Supplemental Work only, upon GE’s prior approval on a case-by-case basis (which approval shall not be unreasonably conditioned, withheld, or denied), Customer may supply parts to GE as CFE, if such parts are: (A) GE parts; (B) consistent with the approved Workscope; (C) provided with an AAA serviceability tag; and (D) ready for immediate use.  [***]. CFE approved in accordance with this Article 7.7(d) shall constitute GE-approved parts of the purposes of this Agreement.

		
	e. 
	[***]

		
	f. 
	Scrapped Parts.  GE will dispose of all Scrapped Parts [***] in accordance with Article 7.7(e) above, at its sole expense and without any further adjustment to Customer.

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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ARTICLE 8 – WARRANTY & GUARANTEES

8.1    Workmanship Warranties.

		
	a. 
	Services Warranty

Rate Per EFH Services and Supplemental Work Services performed shall be free from defects in workmanship. The warranty for defects in workmanship for Engines Serviced will be continuation of Services for the balance of the Term of the Agreement.

For Engines repaired and Redelivered within [***] months preceding expiration of this Agreement,  if Customer claims a defect in workmanship, warranty will be either [***] months or [***] EFH following Redelivery, whichever comes first, and 1) Customer provides written notice to GE of such defect within thirty (30) Days of its discovery, and 2) Customer ships to GE the part or component which gives rise to the claim at GE’s cost, or, in cases in which shipment is commercially impracticable, makes such part or component reasonably available to GE’s personnel for inspection, and 3) GE reasonably establishes that Customer’s claim is correct, GE will provide the following:

		
	(i)
	Repair or replacement of such defective workmanship as well as any additional parts or components adversely affected because of the defect in workmanship, using GE’s own employees or subcontractor (subject to Article 7.6) or, upon prior written approval from GE, pay Customer’s reasonable, direct costs for such repairs, but in no event shall such costs exceed GE’s internal costs of repair of the same or reasonably similar repair;

		
	(ii)
	reimburse Customer for transportation expenses (in both directions, as required) reasonably incurred and adequately documented by Customer in connection with the warranty claim; and

		
	(iii)
	a lease engine, pursuant to Article 3, if a warranty event causes an AOG situation that requires a lease engine.

The warranty period for the repaired or replaced workmanship will be the remainder of the original warranty period. 

		
	b. 
	Conditions and Limitations – Applicable to Services Warranty

Any warranty for Engines or parts, LRUs, components and material thereof, including the design, material or engineering defects of a manufacturer, will be the warranty, if any, of the manufacturer of such Engines or parts, LRUs, components or material thereof.  

The foregoing will constitute the sole remedy of Customer and the liability of GE for defective workmanship relative to Customer’s Engines, subject to the coverage described in Article 8.  The liability of GE connected with or resulting from the Services warranty will not in any case exceed the limitations set forth in Exhibit J.  In no event will GE be liable for any special, expectation, consequential, incidental, resultant, indirect, punitive or exemplary damages (including loss of use, loss of profit or loss of revenue in connection with the Engines).

THE WARRANTIES SET FORTH HEREIN ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, WHETHER WRITTEN, ORAL, EXPRESSED, IMPLIED OR STATUTORY (INCLUDING ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY AND FITNESS FOR PARTICULAR PURPOSE).

8.2    Assignment of Warranties. Customer will assign to GE all applicable Engine warranties and guarantees using the Designation Letter attached as Exhibit K. Upon execution of Exhibit K, GE shall not charge Customer for any Supplemental Work Services covered under the applicable Engine warranties. Upon termination or expiration of the Agreement, any such remaining warranties will be reassigned to Customer.

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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8.3    Pre-existing Warranties. Customer will ensure that any requested repair of an Engine, accessory or component that is covered under a third-party warranty that is not assigned to GE will be performed directly by that person at no expense to GE.  Notwithstanding the above, GE may accept a purchase order for the time and material repair of a warranted item from Customer or the person giving the warranty.

8.4    [***] 

ARTICLE 9 – DELIVERY/REDELIVERY

9.1    Delivery. All Engines to be Serviced will be Delivered by Customer to GE.  Such Engines will be shipped within [***] following removal from the aircraft or as otherwise agreed by the Parties.  Customer will not Deliver piece parts or components for repair separate from Customer’s Engine without GE’s written consent. Risk of loss to the Engines shall transfer to (i) GE upon Delivery and (ii) Customer upon Redelivery.

9.2    External Engine Configuration. Prior to the first shop visit under this Agreement, the Parties shall agree upon an external Engine configuration specification.  Upon Delivery of each Engine thereafter, GE will notify Customer of any deviations from the configuration specification of Engines Delivered for Service, and GE and Customer will work to resolve the deviations.

9.3    Engine Documentation.  Upon Delivery of each Engine, Customer will provide to GE the information and records set forth in the Procedures Manual. Customer's failure to timely furnish the required information may delay Induction of the Engine for Service and may cause an Excusable Delay for purposes of this Article 9.3, furnishing the required information within [***] of the Engine pickup date shall be considered timely).

9.4    Packaging.  Customer is responsible for all packaging, labeling and associated documentation of the Engine at Delivery, in accordance with the International Civil Aviation Organizations (ICAO) Technical Instructions for the Safe Transport of Dangerous Goods by Air, and if the Engine is to be transported over the United States of America, the US Department of Transport Regulations 48 CFR 171-180.  If required by applicable law or regulations, Customer will further provide a material safety data sheet to GE at Delivery of the Engine indicating any substances contained within the Engine to be consigned.  Customer will indemnify, defend and hold harmless GE from all or any claims, liabilities, damages, judgments, costs, penalties, fines and/or any punitive damages imposed, alleged, or assessed by any third party against GE and caused by and to the extent of Customer's non-compliance with this Article 9.4.

9.5    Shipping Stands.  Customer will provide and maintain all shipping stands, shipping containers, mounting adapters, inlet plugs and covers, required to package the Engine for Redelivery. GE will use commercially reasonable efforts to return each engine stand to Customer with the Engine it was originally delivered with to GE. However, in no event will GE return an engine stand to Customer that is not owned by Customer, unless otherwise agreed to between the Parties.

Customer has overall responsibility for procurement, tracking, certification and maintenance of Customer-owned shipping stands, tooling and other ground handling equipment.  Customer shall ensure shipping stands have been properly inspected, serviced and maintained before delivery to GE.

9.6    Redelivery.  After completion of Services, GE will prepare and package the Engine for Redelivery to Customer, in accordance with the ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air, and if the Engine is to be transported over the United States of America, the US Department of Transport Regulations 48 CFR 171-180. If required by applicable law or regulations, GE will further provide a material safety data sheet to Customer at Redelivery of the Engine indicating any substances contained within the Engine to be consigned.  GE will indemnify, defend and hold harmless Customer from all or any claims, liabilities damages, judgments, costs, penalties, fines and/or any punitive damaged imposed, alleged by a third party against Customer and caused by and to the extent of GE’s non-compliance with this Article 9.6. 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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ARTICLE 10 – ADDITION OF ENGINES

10.1    Addition of Engines.  Customer and GE may agree to amend Exhibit B to add New Engines and Used Engines to the Agreement after the Effective Date.  For each such added Engine, Customer will provide information, including, but not limited to, Engine serial number, aircraft tail number, previous operator, current owner, operating time and flight cycles since new and, if applicable, operating time and flight cycles since last shop visit, shop visit reports, Static Temperature Adjusted to Sea Level information for the engine, historic derate information and thrust rating to be used.

		
	a. 
	[***] 

		
	b. 
	[***]

10.2    Adjustment of Rate.  [***] The adjusted Rate Per EFH will be incorporated into the Agreement by way of amendment and Customer will pay the adjusted Rate Per EFH (which may be higher or lower) for all EFH incurred by all Engines from the date such added Engine enters the Agreement.

10.3    [***]. 

ARTICLE 11 – REMOVAL OF ENGINES

11.1    Removal of Engines.  Customer may remove Engines from this Agreement upon advance written notice if Customer is no longer operating the Engines and is no longer responsible for maintenance of the Engines for the following reasons:

		
	a. 
	sale or other transfer to an unaffiliated third party;

		
	b. 
	Return of Engine to the Lessor;

		
	c. 
	If the Engine has been reasonably determined to be BER; or

		
	d. 
	Any other reason agreed to between the Parties.

In all cases of Engine removal, Customer shall confer with GE to determine which Engine(s) will be removed but in the case of disagreement, Customer will have final decision regarding removal.  Any Engine removal will be subject to reconciliation provisions set forth below.

11.2    Reconciliation. 

		
	a. 
	If a removed Engine has not undergone a shop visit for Rate Per EFH Services, GE [***] to Customer within thirty (30) Days of such Engine’s removal, [***].

		
	b. 
	If a removed Engine has undergone at least one shop visit for Rate Per EFH Services, GE will calculate the total cumulative charges for all Rate Per EFH Services provided for such removed Engine [***].  

11.3    Adjustment of Rate.  [***]. The adjusted Rate Per EFH will be incorporated into the Agreement by way of amendment and Customer will pay the adjusted Rate Per EFH for all EFH incurred by all Engines from the date of the Engine removal.

ARTICLE 12 – TERMINATION

12.1    Insolvency.  Either Party may immediately terminate or suspend performance of all or any portion of this Agreement if the other Party: (A) makes a general assignment, arrangement or composition with or for the benefit of creditors due to its inability to make timely payments of its debts; (B) enters into bankruptcy or liquidation, whether voluntary or involuntary and if involuntary, the related proceeding is not dismissed, discharged, stayed or restrained in each case within thirty (30) Days; (C) becomes insolvent; 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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or (D) becomes subject to the appointment of a receiver of the whole or material part of its assets.  If such termination should occur, Customer will not be relieved of its payment obligation(s), for Services rendered by GE hereunder except to the extent such payment obligation(s) are adjusted or excused by a court or governmental authority with jurisdiction.

12.2    Customer’s Approved Vendor List.  If at any time during the Term of this Agreement, a DRS fails to remain on Customer’s Approved Vendor List, Customer may terminate this Agreement immediately after providing 30 days written notice to GE and conducting good faith discussions for a period of seven (7) Days to resolve the matter.

12.3    Material Provisions.  Either Party may terminate this Agreement upon ninety (90) Days written notice to the other for failure to comply with any material provision of this Agreement, unless the failure will have been cured or the Party in breach has substantially effected all acts required to cure the failure prior to such ninety (90) Days. The ninety (90) Day cure period provided in this Article 12.3 shall not be applicable if a Party claims a right to terminate under a provision other than this Article 12.3 which does not provide for a ninety (90) Day cure period.

12.4    Termination for Systemic Failures.  If, during any rolling [***] period following [***], GE demonstrates a pattern of systemic failure in the performance of Services under the terms of this Agreement that results in Customer experiencing significant operational or financial harm, which Customer substantiates through written documentation, and if GE does not  produce, within 30 Days, an executable plan to cure such failure within 60 Days, then Customer may terminate this Agreement after providing 90 Days written notice to GE.

12.5    Maximum Removals.  If the number of Engines decreases to [***], GE may terminate this Agreement after providing 30 days written notice to Customer and conducting good faith discussions for a period of seven (7) Days to resolve the matter.

12.6    Payment for Services Performed.  In the event of termination of this Agreement for any reason (subject to GE performance pursuant to Article 12.7), Customer will pay GE, in addition to any other remedy allowable under this Agreement or applicable law, for all Services or work performed by GE up to the time of such termination under the applicable terms and prices of this Agreement together with any service credits required to be repaid in accordance with Article 5.6 or offset by any Customer service credits that remain outstanding pursuant to Article 5.6 of this Agreement.  [***].

12.7    Work in Process, Redelivery of Customer’s Engines.  Upon the termination or expiration of this Agreement, GE will complete all work in process in a diligent manner and Redeliver all Engines, parts and related documentation, provided that Customer (a) continues to pay all undisputed charges in accordance with Customer’s payment obligations in this Agreement and (b) has returned all lease engines provided under this Agreement. Notwithstanding the foregoing, the Customer shall not be obligated to pay for work performed for Services rendered if Customer disputes such payment in good faith, as set forth in Article 6.  Upon the termination or expiration of this Agreement and Customer’s payment of undisputed charges, GE shall return to Customer any remaining credits and refunds due Customer pursuant to Article 5.6.

ARTICLE 13 – REPRESENTATIONS

13.1    Customer represents to that it is a corporation, duly organized, validly existing and in good standing under the laws of State of Delaware.  GE represents that it is a limited liability company, duly organized, validly existing and in good standing under the laws of State of Delaware.

13.2    Customer and GE each represent that the execution and delivery of this Agreement has been duly and validly authorized by all requisite action on their part.  This Agreement has been duly executed and delivered on behalf of each of Customer and GE, and constitutes a legal, valid and binding obligation of each of Customer and GE enforceable in accordance with its terms.

13.3    Customer and GE each represent that they have had an opportunity to review this Agreement and consult with legal counsel prior to execution, and the final form of this Agreement is the result of good 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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faith, arms’ length negotiations.  Customer and GE each represent that this Agreement is fair and commercially reasonable, and is an ordinary maintenance agreement in their respective industries.  Customer further represents that this Agreement is supported by mutual consideration and promises that benefits Customer even though GE may only be required to provide minimal Service during any given month.  Similarly, GE represents that this Agreement is supported by mutual consideration and promises that benefits GE even though GE may be required to provide extensive Service during any given month.

ARTICLE 14 – GENERAL TERMS AND CONDITIONS

The General Terms and Conditions are set forth in Exhibit J.

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and the year first above written.

	
		
	GE ENGINE SERVICES, LLC
	JETBLUE AIRWAYS CORPORATION

	

/s/ Roy Gozum
	

/s/ Mark D. Powers

	Signature
	Signature

	

Roy Gozum
	

Mark D. Powers

	Printed Name
	Printed Name

	

GM, Business Operations
	

EVP, CFO

	Title
	Title

	

June 6, 2013
	

June 6, 2013

	Date
	Date

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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EXHIBIT A: DEFINITIONS

Capitalized terms used in the recitals and elsewhere in the Agreement but not otherwise defined in this Agreement will have the following meanings:

“ADM” - Average daily minimum temperature by airport as such data is set forth in the Boeing Aircraft Company Red Book.

 “Agreement” - This Rate Per EFH Engine Services Agreement, as the same may be amended or supplemented from time to time, including all its Exhibits.  

“Aircraft Accident” - An occurrence caused by the operation of an aircraft in which any person suffers a fatal injury or serious injury as a result of being in or upon the aircraft or by direct contact with the aircraft or anything attached to the aircraft, or in which the aircraft receives substantial damage or a third party’s property is damaged in any way.

“Aircraft Incident” - An occurrence, other than an Aircraft Accident, caused by the operation of an aircraft that affects or could affect the safety of operations and that is investigated and reported.

“Airworthiness Directive” or "AD" - A document issued by the AAA having jurisdiction over the Engines, identifying an unsafe condition relating to such Engines and, as appropriate, prescribing inspections and the conditions and limitations, if any, under which the Engines may continue to operate.

“Approved Aviation Authority” or “AAA” - As applicable, the Federal Aviation Administration of the United States (“FAA”), the European Aviation Safety Authority (“EASA”) or, as identified by Customer and agreed in writing by GE, such other equivalent foreign aviation authority having jurisdiction over the performance of Services provided hereunder.

“Approved Vendor List” or “AVL” – Customer’s internal list of approved vendors as outlined in Customer’s General Maintenance Manual (“GMM”) which meets or exceeds the quality and/or performance standards of Customer during the Term of this Agreement. Customer has sole discretion as to which vendors are on the AVL and the duration of the time that each vendor remains on the AVL.

“Beyond Economic Repair” or “BER” - When the cost, calculated on a Supplemental Work Services basis, to restore an Engine or parts to the requirements of the repair specification or Worskscope [***].  

“Campaign Change” – shall mean a program for the modification, substitution, or replacement of a part or parts in a group of similar engines when designated as a “Campaign Change” in writing by GE, and is offered to the Customer on condition that the change will be accomplished by Customer in accordance with the instructions of GE. Removal of part from service because of a cyclic or hourly limitation does not constitute a campaign change of that part unless otherwise notified to Customer by GE.

“CLP” - The manufacturer's Current catalog or manufacturer’s Current list price pertaining to a new Engine or part thereof.  

“Current” - As of the time of the applicable Service or determination.

“Day” - Calendar day unless expressly stated otherwise in writing.  If performance is due on a recognized U.S. Federal public holiday, performance will be postponed until the next business day.  
 
“Delivery” - The point in time when Customer makes Engine, together with all applicable records and required data, available for pick up by GE at Customer’s Primary Hub or other designated location, as agreed upon by the Parties pursuant to Article 3.3.  If applicable, Customer is responsible for importing and exporting the Engine and any customs duties and related fees.  Risk of loss passes to GE at the time of loading by GE’s designated carrier.   "Deliver" will mean the act by which Customer accomplishes Delivery. 

“Designated Repair Station” or “DRS” - The primary Repair Station referred to in Article 7.5 or otherwise designated by GE pursuant to Article 7.5, where GE performs Services on Engines. 

“Dollars” or “$” - The lawful currency of the United States of America.

“Engine” - Each bare engine assembly or, as applicable, Engine module, which is the subject of this Agreement and identified in Exhibit B, including its essential LRU’s, controls, accessories and parts as described in the engine manufacturer's specification manuals. 

“Engine Flight Hour” or “EFH” - Engine flight hour expressed in hourly increments of aircraft flight from wheels up to wheels down.

“Foreign Object Damage” or "FOD" – Damage to any portion of the Engine caused by impact with or ingestion of a non-Engine object such as birds, hail, ice  or normal runway debris.  FOD may be further classified as a “Major FOD”, which means FOD that causes an out of limit condition per the Aircraft Maintenance Manual, and which, either immediately or over time, requires the Engine to be removed from service or prevents the reinstallation of the Engine. 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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[***]

“Induction” - The date work commences on the Engine at the DRS when all of the following have taken place: (i) GE’s receipt of the Engine and required data; (ii) Parties’ approval of the Workscope; (iii) Parties’ agreement on use of the Customer Furnished Equipment; and (iv) receiving inspection (including pre-testing if needed).  

“Lease Agreement” – A lease agreement entered into between GE’s designated lessor and Customer, in connection with a lease engine pursuant to Article 3.4.

“Life Limited Part” or "LLP"- A part or component with a limitation on use established by the OEM or the AAA, stated in cumulative EFH or cycles. 

“Line Replaceable Unit” or “LRU” - A major control or accessory that is mounted on the external portion of an Engine, which can be replaced while the Engine is on-wing.

“New Engine” - An Engine which has not undergone a shop visit, which has less than 100 EFH since new and which contains only GE approved parts and GE approved repairs. 

“OEM” - The original manufacturer of an Engine or part thereof.

“Performance Restoration” - The Services performed during a shop visit in which, at a minimum, the combustor and high-pressure turbine are exposed and subsequently refurbished, consistent with the Workscope.

“Price Adjustment Matrix” - The matrix set forth on Exhibit D by which the Rate Per EFH is adjusted based on Customer’s operating parameters.

“Primary Hub(s)” – has the meaning set forth in Article 3.3.

“Procedures Manual” - A separate document, not part of this Agreement, which provides detailed procedures and guidance for the administration of the Agreement.  In case of conflict between the Procedures Manual and the Agreement, the Agreement will prevail.

“Qualifying Shop Visit” or “QSV” - A Repair Station visit during which the initial Performance Restoration is performed on an Engine on a Supplemental Work Services basis and which shall include the removal of all non-GE parts and non-GE approved LRU’s, parts and repairs.  The purpose of the Qualifying Shop Visit is to qualify such Engine for the Rate Per EFH fixed rate pricing for subsequent shop visits.  

“Rate Per EFH” - The Rate Per EFH as set forth in Article 5.  

“Rate Per EFH Services” - Those Services provided pursuant to Article 3.1.

“Rate Per EFH Payments” - Any payments made pursuant to Article 6.

“Rate Per EFH Shop Visit” – Has the meaning ascribed in Article 3.1.

“Redelivery” - The shipment of a Serviceable Engine with legally required certifications by GE pursuant to Article 3.3.  GE will accomplish Redelivery when Engine is placed at the disposal of Customer ready for unloading at Customer’s Primary Hub or other designated location as agreed to by the Parties pursuant to Article 3.3.  Risk of loss passes to Customer following unloading and upon completion of visual inspection and records review.  Should the act of Redelivery require export of the Engine, GE shall be responsible for export.  Customer shall be responsible for import of the Engine if Redelivery is not accomplished at a Primary Hub.  "Redeliver" will mean the act by which GE accomplishes Redelivery.     

“Removal Schedule” - The schedule jointly developed by GE and Customer for Engine removals.  

“Repair Station” - One or more of the repair facilities owned by GE or its affiliates, now or in the future, which are certified by an appropriate AAA to perform the applicable Service hereunder.  A list of such repair facilities will be provided upon request.

“Repairable” - Capable of being made Serviceable.

“Rotable Part” - A new or used Serviceable part drawn from a common pool of parts used to support one or more customers. A Rotable Part replaces a like part removed from an Engine when such removed part requires repair.

“Scrapped Parts” - Those parts determined by GE to be Unserviceable and BER.  

“Service(s)” - With respect to an Engine or part thereof, all or any part of those maintenance, repair and overhaul services provided under this Agreement as either Rate Per EFH Services or Supplemental Work Services.  “Serviced” will be construed accordingly.  

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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“Service Bulletin” or "SB" - The document issued and identified as a Service Bulletin by an OEM to notify the operator of modifications, substitution of parts, special inspections, special checks, amendment of existing life limits or establishment of first time life limits, or conversion of an Engine from one model to another.

“Serviceable” - Meeting all OEM and AAA specified standards for airworthiness.

“Static Temperature Adjusted to Sea Level” - The twelve (12) month rolling average of total air temperature data collected at every available take-off using snapshot data, adjusted in each case to zero aircraft speed and sea level elevation; provided that (i) in the event take-off snap shot data is not available, static airport temperature and airport altitude shall be obtained from the ADM database using Customer airport city-pair data, adjusted in each case to sea level elevation, and (ii) the ADM database shall be used for the first twelve (12) months of this Agreement or until twelve (12) months of take-off snapshot data is available, whichever is first to occur.

 “Supplemental Work Services” - Those Services provided pursuant to Article 4.

“Take-Off Derate” - a percentage calculated using the following formula:  

((Full Rated Thrust -  Actual Thrust) / Full Rated Thrust)  X  100

where:  

		
	(a)
	“Full Rated Thrust,” the maximum thrust available for take-off, is a function of altitude, mach number, Static Temperature Adjusted to Sea Level and bleed settings; and

		
	(b)
	“Actual Thrust” is a function of runway length, runway condition, gross weight of the aircraft and wind direction.

“Unserviceable” - Not meeting all OEM and AAA specified standards for airworthiness.

“Used Engine” - An Engine which has undergone a shop visit or which has more than 100 EFH since new. 

“Workscope” - The document written by GE and approved by Customer describing the prescribed repair or approach to repair of an Engine, including appropriate reliability and performance enhancements.  

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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Proprietary Information Subject to Restrictions on Cover Page

EXHIBIT B: ENGINES COVERED

[***] 

Engine Serial Numbers (ESNs) listed below may be modified by future acquisition/disposition and shall be updated and amended to this Agreement two times per Calendar year by June 30 and December 30 annually. 

	
					
	424112
	994129
	994178
	994273
	994696

	424113
	994130
	994179
	994274
	994718

	424132
	994134
	994180
	994283
	994719

	424137
	994135
	994188
	994284
	994720

	424165
	994136
	994189
	994294
	994726

	424166
	994141
	994191
	994310
	994727

	424223
	994142
	994196
	994311
	994728

	424225
	994143
	994197
	994343
	994729

	424250
	994144
	994198
	994344
	994855

	424252
	994147
	994201
	994388
	994879

	424273
	994148
	994202
	994389
	994880

	424275
	994155
	994205
	994427
	994881

	424286
	994157
	994206
	994428
	994882

	424294
	994159
	994207
	994506
	994919

	424302
	994160
	994212
	994508
	994925

	424313
	994162
	994217
	994512
	994926

	424394
	994164
	994226
	994513
	994935

	424395
	994167
	994228
	994589
	994948

	994123
	994168
	994238
	994590
	424440

	994124
	994169
	994251
	994645
	424449

	994125
	994171
	994254
	994647
	424498

	994126
	994175
	994264
	994659
	424499

	994127
	994176
	994265
	994664
	424531

	994128
	994177
	994266
	994695
	424534

	 
	 
	 
	 
	424546

	 
	 
	 
	 
	424550

	 
	 
	 
	 
	 

 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 20 -
Proprietary Information Subject to Restrictions on Cover Page

	
				
	New A/C Deliveries
(ESNs to be determined)
	Spare Engine Deliveries:
(ESNs to be determined)

	Date
	Qty
	Date
	Qty

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

	[***]
	[***]
	 
	 

	[***]
	[***]
	 
	 

	[***]
	[***]
	 
	 

	[***]
	[***]
	 
	 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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Proprietary Information Subject to Restrictions on Cover Page

EXHIBIT C:  RATE ADJUSTMENT

The Rate Per EFH will be adjusted for fluctuation of the economy as described below: 

Year of Operation (“YO”) will be identified as a given year of calendar operation.  The prices for any YO will be adjusted in accordance with the following formula:

Pn = BP x (1 + Composite Index YO)
 
Where:          Pn = Invoice Price for YO
                     BP = Base Price as stated in Article 5.1 above.

Composite Index YO =[***] 
    
Labor Index YO = [***]

 Where:        [***]

The calculation of Pn for any YO will be made effective January 1 of the YO. If the Rate Per EFH adjustment, as calculated by the formula above, is a negative number, the adjustment to the rate Per EFH shall be deemed to be zero (0).

Labor Index = the twelve (12) point weighted average of ECI 336411W" Labor Index (North American Industrial Classification System (NAICS) Code 336411, (BLS code: CIU2023211000000I), base month and year December 2005 = 100), as published by the Bureau of Labor Statistics, U.S. Department of Labor, rounded to the second decimal place, for the twelve (12) month period ending on the last day of June of each year.  Should the U.S. Department of Labor revise the methodology used for the determination of the values to be used to determine this index, cease publishing this index, or for any reason has not released values needed to determine the applicable price adjustment, GE will select a substitute for such values from data published by the Bureau of Labor Statistics or other similar data reported by non-governmental United States organizations.  Appropriate revisions of the formula will be made as required to reflect any substitute values. 

[***]

*North American Industrial Classification System (NAICS) Code 336411 (BLS code: CIU2023211000000I), base month and year December 2005 = 100 is a definition reference to the Employment Cost Index current baseline issued by the Bureau of Labor Statistics.  Beginning with estimates for March 2006, several changes were introduced to the ECI. These include changes to the industry and occupational classification systems, reweighting employment counts, and rebasing the index numbers.  This is referenced in the contract only to establish the baseline in the case that the government stops issuing the index and we have to re-baseline the contract to another index.  

The calculation within the contract will be based on the contract base year as indicated in the formula example.

Labor Index YO = [***]

Where:        [***]

Pricing Escalation.  [***] the Rate per EFH pricing is subject to economic price adjustments each year in accordance with the Composite Index per this Exhibit C.   For annual changes in the Composite Index greater than or equal to [***] and less than or equal to [***], the Rate Per EFH will be adjusted by [***].  For annual changes in the Composite Index greater than [***], the Rate Per EFH will be adjusted by [***]. 

For example: 
(1) if the change is [***]%, Customer pays  [***]; 
(2) if the change is [***]%, Customer pays [***]% adjustment;
(3) if the change is [***]%, Customer pays [***]% adjustment; and
(4) if the change is [***]%, Customer pays an adjustment of [***].

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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Proprietary Information Subject to Restrictions on Cover Page

EXHIBIT D: PRICE ADJUSTMENT MATRIX

When the actual operating parameters do not precisely equal the values on the tables severity will be calculated by performing linear interpolation within the tables’ closest stated values to the actual operating parameters.  Two dimensional linear interpolation will be applied, as necessary, to the flight leg and derate tables and then between the Utilization tables and Static Temperature Adjusted to Sea Level tables.  The resultant severity value will be rounded to 4 decimal places.  The final severity applied will be the product of these severity values rounded to 4 decimal places.

Should Customer’s actual operating parameters go beyond the furthest points of the table provided.  GE shall adjust the table to cover Customer’s updated operating parameters.  Such adjusted table will be applied retroactively to the time Customer’s operating parameters moved beyond the points provided and, if applicable, GE shall invoice or provide a credit to Customer for any amounts that would have been applicable if the rates on such table had been in effect at the time the flight hours were incurred.

SPACE LEFT BLANK INTENTIONALLY

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 23 -
Proprietary Information Subject to Restrictions on Cover Page

[***]

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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Proprietary Information Subject to Restrictions on Cover Page

EXHIBIT E: SUPPLEMENTAL WORK PRICING

	
			
	1.  Direct Labor Charges at the DRS:  Charged in accordance with the Fixed Price Labor set forth in this 
Exhibit G. 

	 

	2.    All Other Labor Charges Not Specified in this Exhibit G 
US$[***] per labor hour

	 

	3.   Charges For Parts and Material  (GE furnished, unless stated otherwise)

	Type Of Material
	Price
	[***]

	[***]
	[***] 

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

	 

	Type Of Material
	Price
	[***]

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

	 

	6. Component And Accessories Repair Charges:
Per the GE Component Repair Directory or, if the GE Component Repair Directory is not available, [***].

	 

	4.    7. Test Cell Usage Charges:
[***]

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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Proprietary Information Subject to Restrictions on Cover Page

EXHIBIT F: SUPPLEMENTAL WORK PRICING – ANNUAL ADJUSTMENT

	
	
	 1. Basis: 
  All prices are stated in 2013 United States Dollars and are effective through December 31, 2013.

	 

	2.    Escalation of Hourly Labor Rates, Fixed Price Labor Charges and Test Cell Usage Charges:

On January 1, 2014 and every January 1 of successive years, hourly labor rates, fixed price labor charges and test cell usage charges set forth in the following pricing schedules will be adjusted by an amount equal to [***]; provided however, that any actual percentage change which is less than zero (0) will, for purposes of this Agreement, be deemed equal to zero (0).  Should the U.S. Department of Labor revise the methodology used for the determination of the values to be used to determine this index, cease publishing this index, or for any reason has not released values needed to determine the applicable price adjustment, the parties will agree on selection of a substitute for such values from data published by the Bureau of Labor Statistics or other similar data reported by non-governmental United States organizations.  Appropriate revisions of the formula will be made as required to reflect any substitute values.  Each such increase will be effective as to Services performed on or after the relevant change date.

	 

	3.    Escalation of [***]

[***]  Each such increase will be effective as to Services performed on or after the relevant change date.

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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Proprietary Information Subject to Restrictions on Cover Page

EXHIBIT G:  SUPPLEMENTAL WORK SERVICES PRICING – FIXED PRICE LABOR SCHEDULE
	
					
	CF34-10 Fixed Price Labor Schedule

	ENGINE
	Standard Tasks Fixed Price

	72-00-00
	[***] 
	 
	 
	[***]

	72-00-00
	[***]
	 
	 
	[***]

	72-00-20
	[***]
	 
	 
	[***]

	72-00-30
	[***]
	 
	 
	[***]

	72-00-40
	[***]
	 
	 
	[***]

	72-00-50
	[***]
	 
	 
	[***]

	72-00-55
	[***]
	 
	 
	[***]

	72-00-63
	[***]
	 
	 
	[***]

	72-00-62
	[***]
	 
	 
	[***]

	72-00-00
	[***]
	 
	 
	[***]

	72-00-00
	[***]
	 
	 
	[***]

	 
	 
	Workscope Level Fixed Price

	 
	 
	Minimum
	Performance
	Full

	[***]
	 
	 
	 

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

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 27 -
Proprietary Information Subject to Restrictions on Cover Page

EXHIBIT H: ONWING SUPPORT

COVERED SERVICES

		
	1.
	GE On Wing Support, Inc., will provide on wing support technicians, along with special tooling, to perform flight-line services, on wing and off wing inspection, maintenance, and repair of Engines as specified in a mutually executed work order by Customer. Such Engine support services may be provided, as designated by Customer and agreed by GE at Customer’s facilities or at repair facilities owned by GE On Wing Support, Inc. or its affiliates. GE On Wing Support, at their sole discretion, may Subcontract or Assign Services to any provider that is properly certified and rated by the Approved Aviation Authority. All Services provided shall be in accordance with its standard commercial quality control policies, procedures, and practices. A turn-time estimate for each workscope for acceptance by Customer prior to beginning of Services will be provided.

		
	2.
	Services performed to avoid a Rate per EFH Shop Visit, per mutual agreement of the Parties, will be performed at no charge to the Customer.

		
	3.
	For services performed at Customer option on a supplemental basis, such services will be priced as set forth in Fixed Workscope Pricing  below. 

SUPPLEMENTAL FIXED WORKSCOPE PRICING

Fixed prices for Workscopes provided by GE On Wing Support, Inc. [***]. It does not include consumables or other charges that may be applicable. Prices are stated in year [***] U.S. Dollars and will remain in effect for the specified calendar year. After the initial term, GE On Wing Support will quote its Current list prices. Prices will escalate at [***]. GE On Wing Support reserves the right to adjust certain line items at a rate other than per the agreed escalation formula. Where such adjustment takes place, the customer will be notified prior to implementation of the revised price list.

THIS SPACE BLANK INTENTIONALLY

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 28 -
Proprietary Information Subject to Restrictions on Cover Page

	
			
	 
	GE PROPRIETARY INFORMATION
	 

	 
	 
	 

	 
	CF34-10 ONWING SUPPORT Fixed Workscope Pricing
	 

	 
	 
	[***] 

	 
	 
	$USD

	SPN
	Replacement of:
	 

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

	 
	 
	 

	 
	Borescopes:
	 

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

	 
	 
	 

	 
	Other Workscopes:
	 

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

	 
	 
	 

	 
	CF34-10 Pricing Update as of:
	[***]

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 29 -
Proprietary Information Subject to Restrictions on Cover Page

Other pricing applicable for Engine maintenance provided by GE On Wing Support, Inc. which, for the avoidance of doubt shall be pre-approved in writing by Customer and which shall be documented by GE:

A.    Workscope Pricing and Deployment
		
	1) 
	Customer signature on quote and Work Authorization is required prior to deployment by GE On Wing Support.

		
	2) 
	If additional workscopes not listed in the fixed price workscope schedule are required, they will be priced and quoted and approved prior to beginning of work. The fixed rate workscope schedule pricing covers all technician repair activity, preparation and deprep requiring normal manpower and tooling in normal work conditions. Reasonable additional charges may apply for unusual engine or work conditions. 

If required, Customer shall reasonably assist GE On Wing Support in obtaining the necessary Approved Aviation Authority approval equivalent to the terms of approval already granted to GE On Wing Support by the FAA to carry out any necessary on-wing repair or other maintenance service. GE On Wing Support must receive any such required approval prior to the commencement of Service.

		
	3) 
	For Services performed at a location other than a station owned by GE On Wing Support, Inc. at the direction of Customer, [***] 

		
	a) 
	[***]   

		
	b) 
	[***] 

		
	c) 
	[***].

		
	4) 
	Should a delay outside the control of GE On Wing Support, Inc. occur which results in technician idle time necessitating an additional unplanned overnight stay, [***].

		
	5) 
	Engine Unloading/Loading/Prep-To-Ship Fee is applicable to all engines that must be unloaded and prepped for shipment by OWS.

		
	6) 
	Parts ordered for agreed workscope will be per standard Unit Pack Quantity (UPQ); parts not consumed as part of the agreed workscope will be turned over to Customer.

		
	7) 
	When GE OWS agrees to deploy technicians to facilities designated by Customer, it may, at its option, make arrangements to provide security for its and its affiliates’ employees to the extent it views it necessary to meet a potential security threat or situation. Customer agrees to bear all reasonable additional cost for security arrangements.

B.    Material and Subcontractor

		
	1) 
	GE On Wing Support, Inc. furnished material or subcontracted services required for Services performed on Customer’s equipment at the direction of Customer [***].

		
	2) 
	Customer furnished material will [***].

 C.    Warranty
As covered under Article 8 of the Agreement.

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 30 -
Proprietary Information Subject to Restrictions on Cover Page

	
			
	

	 
	 

EXHIBIT I: LINE REPLACEABLE UNITS

The following list contains LRU that are repaired and inclusive under Rate Per EFH Services in accordance with Article 3.1(e).

This list shall include any subsequent P/N’s replacing those on the list below.
	
						
	Package
	Component
	QPE
	Classification
	Latest Part Number
	Shop Support (Y/N)

	Basic Engine
	[***] 
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	2
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	2
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	2
	Basic Engine
	[***]
	Y

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 31 -
Proprietary Information Subject to Restrictions on Cover Page

	
						
	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	2
	Basic Engine
	[***]
	Y

	 
	[***] 
	2
	Basic Engine
	[***]
	Y

	 
	[***]
	2
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	1
	Basic Engine
	[***]
	Y

	 
	[***]
	20
	Basic Engine
	[***]
	Y

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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Proprietary Information Subject to Restrictions on Cover Page

EXHIBIT J: GENERAL TERMS AND CONDITIONS

1.0     LIMITATION OF LIABILITY AND INDEMNIFICATION 

1.1    Total Liability.  The total liability of GE for any and all claims, whether in contract, warranty, tort (including negligence but excluding willful misconduct, gross negligence, and recklessness), product liability, patent infringement or otherwise, for any damages arising out of, connected with or resulting from the performance or non-performance of any Service or from the manufacture, sale, Redelivery, resale, repair, overhaul, replacement or use of the Engine or any item or part thereof[***]. Notwithstanding the foregoing, in no event will GE have any liability hereunder, whether as a result of breach of contract, warranty, tort (including negligence but excluding, willful misconduct or recklessness), product liability, or otherwise, for any special, consequential, incidental, resultant or indirect damages, (including, without limitation, loss of: use, profit, revenue or goodwill) or punitive or exemplary damages. In no event will GE have any liability hereunder, whether as a result of breach of contract, warranty, tort (including negligence), product liability, patent liability, or otherwise, for the design, material, workmanship, engineering defects or product liability and any damages whatsoever, including damages to personal property and for personal injury or death, caused in any way by the manufacturer of an Engine, or the parts, LRU’s, components or material, thereof, or related thereto.  In no event will the limitation of liability provided in this Section 1.1 to any extent or in any manner limit the ability to recover against GE if and to the extent Customer incurs a loss or liability to a third-party directly arising out of the performance or non-performance of a Service or from the manufacture, sale, Redelivery, resale, repair, overhaul, replacement or use of the Engine or any item or part thereof.

1.2    In the event Customer uses non-GE parts or non-GE approved LRU’s, parts or repairs in an Engine and such LRU’s, parts or repairs are the sole cause of personal injury, death or property damage to third parties, Customer shall indemnify and hold harmless GE from all claims and liabilities associated therewith,  The preceding indemnity shall apply whether or not GE was provided a right under the Agreement to remove such LRU’s, parts or repairs, and irrespective of the exercise by GE of such right. 

1.3    Definition.  For the purpose of this Article 1, the term "GE" is deemed to include GE and its parent and affiliated companies and the directors, officers, employees, agents and representatives of each.

2.0EXCUSABLE DELAY 

2.1    Excusable Delay.   Either Party will be excused from, and will not be liable for, any delay in performance or failure to perform hereunder (except for the obligation to pay money or credit or debit an account which will not be excused hereunder), and will not be deemed to be in default for any delay in or failure of performance hereunder due to causes beyond its reasonable control.  Such causes will be conclusively deemed to include, but not be limited to: [***] (each an “Excusable Delay”).  The time of performance shall be extended for a period equal to the time lost by reason of delay, including time to overcome the effect of the delay.

2.2    Continuing Obligations.  Section 2.1 will not, however, relieve either Party from using its best commercial efforts to avoid or remove such causes of delay and continue performance with reasonable dispatch when such causes are removed.  During the period of an Excusable Delay, GE will have the right to invoice Customer for Services performed, and Customer will pay all such invoices net thirty (30) Days.

2.3    Extended Delay Termination.  If delay resulting from any of the foregoing causes extends for more than six (6) months and the Parties have not agreed upon a revised basis for continuing the Services, including any adjustment of the price, then either Party, upon sixty (60) Days written notice to the other, may terminate the performance of Services with respect to the Engine for which Services were delayed. 

3.0    NOTICES

3.1     Acknowledgment.  All notices required or permitted under this Agreement will be in writing and will be delivered personally, via first class return receipt requested mail, by facsimile, by courier service, or by express mail, addressed as follows, or to such other address as either Party may designate in writing to the other Party from time to time:

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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Proprietary Information Subject to Restrictions on Cover Page

	
		
	GE Engine Services, LLC
	JetBlue Airways Corporation

	One Neumann Way
	27-01 Queens Plaza North

	Cincinnati, Ohio 45215
	Long Island, NY 11101

	Att:
	Att: CFO

	Phone:
	Phone: 718- 286-7900

	 
	 

	Copies to:
	Copies to:

	Senior Counsel
	General Counsel, Manager Sourcing & 
Manager of Contracts

	GE Engine Services, LLC
	 

	MD F-125
	27-01 Queens Plaza North

	Cincinnati, Ohio 45215
	Long Island, NY 11101

    

3.2    Effect of Notices.  Notices will be effective and will be deemed to have been given to (or “received by”) the recipient: (A) upon delivery, if sent by courier, express mail, or delivered personally; (B) on the next business day following receipt, if sent by facsimile; or (C) on the fifth (5th) day after posting (or on actual receipt, if earlier) in the case of a letter sent prepaid first class mail.

4.0            TAXES AND OTHER 

4.1     Taxes, Duties or Charges.  In addition to the price for Services, Customer agrees to pay upon demand, all taxes (including without limitation, sales, use, excise, turnover or value added taxes), duties, fees, charges or assessments of any nature (but excluding any income taxes) (“Taxes”) assessed or levied in connection with performance of the Agreement. 

4.2     Withholdings. All payments by Customer to GE under this Agreement will be free of all withholdings of any nature whatsoever except to the extent otherwise required by law, and if any such withholding is so required, Customer will (i) provide GE with written notice and (ii) pay the undisputed amounts minus such withholding. To the extent Customer assigns this (or any portion of this) Agreement to a non-US person (“non-US assignee”), and withholding on payments from said non-US assignee is required, Customer or its non-US assignee will pay an additional amount such that after the deduction of all amounts required to be withheld, the net amount received by GE will equal the amount that GE would have received if such withholding had not been required.

5.0     DISPUTE RESOLUTION

Dispute Resolution.  If any dispute arises relating to this Agreement, the Parties shall endeavor to resolve the dispute amicably, including by designating senior managers who will use commercially reasonable efforts to resolve any such dispute.  If one Party serves formal written notice to the other that a material dispute has arisen with regard to the Agreement and If the Parties’ senior managers are not able to resolve the dispute within ten (10) days of receipt of such written request, the matter shall be referred to a committee consisting of the Vice President of Technical Operations of Customer and the Vice President of Services for GE. If no unanimous recommendation is made by the committee within twenty (20) Days, the matter will be referred to each of the chief executive officers of Customer and GE for resolution within an additional twenty (20) Days. Failing resolution by the chief executive officers, within the period specified therefore above, either party may seek resolution of the dispute in, and each party hereby submits to personal jurisdiction of, any state or federal court situated in New York, New York.  Each party shall bear its own costs and expenses arising in conjunction with the legal proceedings, including without limitation, the fees for attorney(s) and expert(s) retained by the Parties.

5.2     Exception. Either party may at any time, without inconsistency with this Article, seek from a court of competent jurisdiction any equitable, interim, or provisional relief to avoid irreparable harm or injury.  This Article will not apply to and will not bar litigation regarding claims related to a party’s proprietary or intellectual property rights, nor will this Article be construed to modify or displace the ability of the Parties to effectuate any termination contemplated in Article 12 of the Agreement.

6.0    NONDISCLOSURE OF PROPRIETARY DATA
6.1     Confidentiality.  Each Party agrees that the terms and conditions of the Agreement are confidential unless otherwise agreed in writing. Each Party agrees to limit disclosures of such confidential information only to persons who have a need to know within their own organizations, outside auditors, outside advisors and government agencies. Should either Party be subject to a legal action or proceeding or a requirement under applicable government regulations to disclose 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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such confidential information (the “Obligated Party”), the Obligated Party shall notify the other Party, and upon request of the other Party, cooperate with the other Party in contesting such disclosure.

6.2           Non-Disclosure.  Unless the Parties otherwise agree in writing or as otherwise permitted under the Agreement, any knowledge, information or proprietary data which the Parties have or may disclose to each other shall be held in confidence and may not be either disclosed or used for any purpose, except that each Party may disclose the same to its affiliates, subsidiaries, engineering service provider, or consultants, as applicable, but only as needed to perform under the Agreement.  The preceding sentence will not apply to information which (1) is or becomes part of the general public knowledge or literature otherwise than as a result of breach of any confidentiality obligation, or (2) was, as shown by written records, known to the receiving party prior to receipt from the disclosing party.

6.3           Intellectual Property.  Nothing contained in the Agreement will convey to either Party the right to use the trademarks of the other Party, or convey or grant to any Party any license under any patent owned or controlled by the other Party.

7.0     PATENTS
7.1     Claims.  GE will handle all claims and defend any suit or proceeding brought against Customer insofar as based on a claim that, without further combination, any material or process used in the repair of any items furnished under the Agreement constitutes an infringement of any patent or copyright of the U.S.  This Article 7.1 will apply only to the extent that such material or process is so used to GE's specification.

7.2    Liability. GE's liability under this Article 7 is expressly conditioned upon Customer promptly notifying GE in writing and giving GE exclusive authority, information and assistance (at GE expense) for the handling, defense or settlement of any claim, suit or proceeding. In case such material or process is held in such suit to constitute infringement and the use of said material or process is enjoined, GE will, at GE's own expense and at GE's option, either, (1) settle or defend such claim or suit or proceeding arising therefrom, or (2) procure for Customer the right to continue using said material or process in the item repaired under the Agreement, or (3) replace or modify such item with an item incorporating non-infringing material or process, or, if (1), (2) and (3) are not viable, (4) refund the repair price applicable to such material or process.

7.3    Indemnification.  The preceding Section 7.2 will not apply: (1) to any material or process or part thereof of Customer design or specification, or used at Customer’s direction in any repair under this Agreement, or (2) to the use of any material or process furnished under the Agreement in conjunction with any other apparatus, article, material or process.  As to any material or process or use described in the preceding sentence, GE assumes no liability whatsoever for patent or copyright infringement, and Customer will, in the same manner as GE is obligated to Customer above, indemnify, defend and hold GE harmless from and against any claim or liability, including costs and expense in defending any such claim or liability in respect thereto. 

GE shall, at the request of Customer, negotiate and defend any claim brought against any Customer indemnitee or in which any Customer indemnitee is joined as a party defendant based upon any other matters for which GE has agreed to indemnify Customer and each Customer indemnitee as provided above. Customer agrees to provide: (a) prompt written notice of a claim for which it seeks indemnification; (b) all information and evidence within its control and necessary for GE to conduct a defense; and (c) sole control of the defense and all related settlement negotiations.

7.4    Remedy.  THE FOREGOING WILL CONSTITUTE CUSTOMER’S SOLE REMEDY AND GE’S SOLE LIABILITY FOR PATENT OR COPYRIGHT INFRINGEMENT BY ANY MATERIAL OR PROCESS AND IS SUBJECT TO THE LIMITATION OF LIABILITY SET FORTH IN ARTICLE 1, “LIMITATION OF LIABILITY.”  THE PATENT WARRANTY OBLIGATIONS RECITED ABOVE ARE IN LIEU OF ALL OTHER PATENT WARRANTIES WHATSOEVER, WHETHER ORAL, WRITTEN, EXPRESSED, IMPLIED OR STATUTORY (INCLUDING ANY WARRANTY OF MERCHANTABILITY AND FITNESS FOR PARTICULAR PURPOSE OR ANY IMPLIED WARRANTY ARISING FROM COURSE OF DEALING, COURSE OF PERFORMANCE, OR USAGE OF TRADE).

8.0    [***] 

9.0    GENERAL PROVISIONS

9.1    Assignment.  This Agreement, any related purchase order or any rights or obligations hereunder may not be assigned without the prior written consent of the other Party, except that Customer’s consent will not be required for an assignment by GE to one of GE’s affiliates. In the event of an assignment of this Agreement, (i) Customer will be so advised in advance, in writing, and (ii) GE will remain primarily liable for all actions of its affiliate.  Any assignment in contradiction of this clause will be considered null and void.

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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9.2    Governing Law.  The Agreement will be interpreted and applied in accordance with the substantive laws of the State of New York, without giving effect to its choice of law or conflict of law provisions, rules or procedures.

9.3     Savings Clause.  If any portion of this Agreement will be determined to be a violation of or contrary to any controlling law, rule or regulation issued by a court of competent jurisdiction, then that portion will be unenforceable in such jurisdiction. However, the balance of the Agreement will remain in full force and effect.

9.4    Beneficiaries. Except as herein expressly provided to the contrary, the provisions of this Agreement are for the Parties’ mutual benefit and not for the benefit of any third party.

9.5    Controlling Language. The English language will be used in the interpretation and performance of this Agreement.  All correspondence and documentation arising out of or connected with this Agreement and any related purchase order(s), including Engine records and Engine logs, will be in the English language. 

9.6    Non-Waiver of Rights and Remedies.  Any failure or delay in the exercise of rights or remedies hereunder will not operate to waive or impair such rights or remedies.  Any waiver given will not be construed to require future or further waivers.

9.7    Titles/Subtitles.  The titles and subtitles given to the sections of the Agreement are for convenience. They do not limit or restrict the context of the article or section to which they relate.

9.8    Currency Judgment.  This is an international transaction in which the specification of United States Dollars is of the essence.  No payments required to be made under the Agreement will be discharged by payments in any currency other than United States Dollars, whether pursuant to a judgment, arbitration award or otherwise.

9.9    No Agency Fees.  Customer represents and warrants that no officer, employee, representative or agent of Customer has been or will be paid a fee or otherwise has received or will receive any personal compensation or consideration by or from GE in connection with the obtaining, arranging or negotiation of this Agreement or other documents entered into or executed in connection herewith.

9.10     Designated Representative.   A “Designated Representative” is one or more employees or other individuals that represent Customer, that Customer desires to have visit or be onsite from time to time at one or more of GE’s facility(ies) and/or DRS(s) for purposes of this Agreement including but not limited to engineering, technical, negotiations, etc. Subject to the following conditions, GE agrees to permit one or more Designated Representative(s) per site as requested by Customer and agreed to by GE, at no additional cost to Customer, to enter onto GE’s premises at the Designated Repair Station or other GE facilities for the purpose of supporting the Services on Engines.  GE will furnish one Designated Representative the use of a non-exclusive workspace, including the use of a telephone line, heavy duty photocopier, fax service, access to high speed internet services, and parking accommodations and access to certain non-restricted work areas where Services under the Agreement are being performed. The foregoing is subject in all respects to the Designated Representative(s) meeting and adhering to GE security requirements for the relevant facilities.

9.11      No Agency.  Nothing in this Agreement will be interpreted or construed to create a partnership, agency or joint venture between GE and Customer.

9.12     Entire Agreement.  This Agreement, together with its Exhibits, contains and constitutes the entire understanding and agreement between the Parties hereto respecting the subject matter hereof, and supersedes and cancels all previous negotiations, agreements, representations and writings in connection herewith.  This Agreement may not be released, discharged, abandoned, supplemented, modified or waived, in whole or in part, in any manner, orally or otherwise, except by a writing of concurrent or subsequent date signed and delivered by a duly authorized officer or representative of each of the Parties hereto making specific reference to this Agreement and the provisions hereof being released, discharged, abandoned, supplemented, modified or waived.

9.13      Counterparts.  This Agreement may be executed in one or more counterparts, all of which counterparts will be treated as the same binding agreement, which will be effective as of the date set forth on the first page hereof, upon execution and delivery by each Party hereto to the other Party of one or more such counterparts.  

9.14     Governmental Authorization.  Unless otherwise agreed to by the Parties, Customer will be the importer and/or exporter of record and will be responsible for timely obtaining any import license, export license, exchange permit or other required governmental authorization relating to the Engine.  At Customer’s request and expense, GE will assist Customer in its application for any required U.S. export licenses.  GE will not be liable if any authorization is not renewed or is delayed, denied, revoked or restricted, and Customer will not thereby be relieved of its obligation to pay for Services performed by GE.  All transported Engines will be subject to the U.S. Export Administration Regulations and/or International Traffic in Arms Regulations. Customer agrees not to dispose of U.S. origin items provided by GE other than 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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Proprietary Information Subject to Restrictions on Cover Page

in and to the country of ultimate destination and/or as identified in an approved government license or authorization, except as said laws and regulations may permit. 

THIS SPACE INTENTIONALLY BLANK

 EXHIBIT K: DESIGNATION LETTER

[Customer Letterhead]

[Name and address of Original Engine Manufacturer]

Attn:    Manager Warranty Programs

Re:    Designation of GEES as Claims Administrator and Engine Benefits Recipient. 

1. [________________] (“Customer”) and [_________________] (“OEM”) entered into General Terms Agreement Number [____________________] dated [_________] (the “GTA”), for the purchase by Customer of [_________] (“Engine”) equipped [______________] (“Aircraft”) and spare engines. Pursuant to the GTA, OEM provides Customer various warranties, guarantees and other Engine related benefits introduced via Service Bulletins and other special offerings (specifically described in paragraph 3 hereof, the “Engine Benefits”).
 
2. Customer and GE Engine Services, LLC (“GEES”) have entered into a separate agreement, Number [____________________] dated [_________]  ("Maintenance Agreement") for the maintenance, repair and overhaul of Engines.  The Maintenance Agreement specifies that Customer shall, during the term of the Maintenance Agreement, designate GEES to act as claims administrator and Engine Benefits recipient.  Accordingly, Customer hereby authorizes GEES during the term of the maintenance agreement to: (a) negotiate and enter into final settlements with OEM for Engine Benefits and (b) receive from OEM in the name of GEES all proceeds of such Engine Benefits.  Customer warrants to OEM that all actions undertaken by GEES pursuant to this authorization shall be binding on Customer and that OEM may rely thereon.

3. Engine Benefits are specifically limited to the following, all as more fully defined in the GTA:
 
		
	a.
	Standard warranties;

  
b. [***]; 

c. Industry participation offers on CF34 -10 engines as set forth in fleet-wide service bulletins;

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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d. Extended warranties, and non-warranty programs offered by OEM pursuant to Service Bulletins or other communications between Customer or GEES.

4. OEM consents to the disclosure by Customer to GEES of Engine Benefits in the GTA, Service Bulletins or other notices.  GEES agrees to hold in confidence all such Engine Benefits information, or other OEM proprietary information, provided to GEES in order to give effect to the Engine Benefits information. This Letter may only be amended or modified by the written agreement of the parties hereto, and shall remain in effect throughout the term (including extensions) of the Maintenance Agreement.

Customer    GEES    OEM

By: _______________                             By: _________________               By: _________________

Title: ______________                              Title: ________________               Title: ________________

Date: ______________                          Date: _________________     Date: _______________ 
 

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
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EXHIBIT L: LLPs
LLP list is subject to change per shop manual revisions.

	
						
	Module
	Part Name
	Part Number
	[***] 
	[***]
	[***]

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

[***]    Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
Agreement# 1-3036849991 - 0                            - 39 -
Proprietary Information Subject to Restrictions on Cover Page

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