Document:

Unassociated Document

A320 FAMILY AIRCRAFT

PURCHASE AGREEMENT

BETWEEN

AIRBUS S.A.S.

(the “Seller”)

AND

CHINA SOUTHERN AIRLINES COMPANY LIMITED

(the “Buyer”)

AND

CHINA SOUTHERN AIRLINES GROUP

IMPORT AND EXPORT TRADING CORP., LTD.

(the “Consenting Party”)

Buyer's reference: 10SIES2006FR

Seller's reference: CT1001939

	
***

	
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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CONTENTS

Clauses

	
0

	
SUPPLEMENTARY DEFINITIONS

	 4
	  	  	 
	
1

	
QUANTITY

	 6
	  	  	 
	
2

	
AIRCRAFT DEFINITION

	 6
	  	  	 
	
3

	
BASE PRICES

	 7
	  	  	 
	
4

	
DELIVERY SCHEDULE

	 10
	  	  	 
	
5

	
PAYMENTS

	 11
	  	  	 
	
6

	
LIQUIDATED DAMAGES

	 11
	  	  	 
	
7

	
WARRANTIES AND SERVICE LIFE POLICY

	 11
	  	  	 
	
8

	
TECHNICAL DATA

	 12
	  	  	 
	
9

	
SELLER REPRESENTATIVE SERVICES

	 13
	  	  	 
	
10

	
NEGOTIATED AGREEMENT

	 13
	  	  	 
	
11

	
APPLICABILITY

	 13
	  	  	 
	
12

	
CONFIDENTIALITY

	 14
	  	  	 
	
13

	
CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

	 14
	  	  	 
	
14

	
LAW AND JURIDICTION

	14 
	  	  	 
	
15

	
COUNTERPARTS

	 15

Appendices

	
A1

	
A320-200 STANDARD SPECIFICATION

	  	  
	
A2

	
A321-200 STANDARD SPECIFICATION

	  	  
	
B

	
AIRFRAME PRICE REVISION FORMULA

	  	  
	
C1

	
CFM PRICE REVISION FORMULA

	  	  
	
C2

	
IAE PRICE REVISION FORMULA

 

	
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PURCHASE AGREEMENT

This A320 family aircraft purchase agreement (the “Agreement”) is made as of _____________________, 2010

Among:

AIRBUS S.A.S., a société par actions simplifiée, created and existing under French law having its registered office at 1 Rond-Point Maurice Bellonte, 31707 Blagnac-Cedex, France and registered with the Toulouse Registre du Commerce under number RCS Toulouse 383 474 814, (the “Seller”),

and

CHINA SOUTHERN AIRLINES COMPANY LIMITED, a company organised under the laws of the People's Republic of China having its principal place of business at Bai Yun Airport, Guangzhou 510405, People's Republic of China, (the “Buyer”),

and

CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD., formerly known as CHINA SOUTHERN AIRLINES (GROUP) IMPORT AND EXPORT TRADING CORPORATION, having its principal office at Bai Yun Airport, Guangzhou 510405, People's Republic of China (the "Consenting Party").

The Seller and the Buyer and the Consenting Party are referred to together as the “Parties” and each a “Party”.

WHEREAS

	
A.

	
The Seller and the Buyer, with the consent of the Consenting Party, have signed an aircraft general terms agreement reference CT0803291 dated February 2nd, 2010 (the “AGTA“) which constitutes an integral part of this Agreement.

	
B.

	
Subject to the terms and conditions of this Agreement and of the AGTA, the Seller desires to sell the Aircraft to the Buyer and the Buyer desires to purchase the Aircraft from the Seller.

NOW THEREFORE IT IS AGREED AS FOLLOWS:

 

	
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0.

	
SUPPLEMENTARY DEFINITIONS

	
0.1

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

	
0.2

	
Capitalised words and terms used in this Agreement which are not defined herein shall have the meaning assigned thereto in the AGTA.

	
  

	
A320 Airframe

	
means the A320 Aircraft excluding the A320 Propulsion Systems.

	
  

	
A321 Airframe

	
means the A321 Aircraft excluding the A321 Propulsion Systems.

	
  

	
A320 Aircraft

	
means an Airbus A320-200 model aircraft including the A320 Airframe, the A320 Propulsion Systems, and any part, component, furnishing or equipment installed on the A320 Aircraft on Delivery under the terms and conditions of this Agreement and the AGTA.

	
  

	
A321 Aircraft

	
means an Airbus A321-200 model aircraft including the A321 Airframe, the A321 Propulsion Systems, and any part, component, furnishing or equipment installed on the A321 Aircraft on Delivery under the terms and conditions of this Agreement and the AGTA.

A320 Propulsion

	
  

	
Systems

	
as specified in Clause 2.2.1.

A321 Propulsion

	
  

	
Systems

	
as specified in Clause 2.2.2.

	
  

	
A320 Specification

	
means either (a) the A320 Standard Specification if no SCNs are applicable or (b) if SCNs are issued, the A320 Standard Specification as amended by all applicable SCNs and MSCNs.

	
  

	
A321 Specification

	
means either (a) the A321 Standard Specification if no SCNs are applicable or (b) if SCNs are issued, the A321 Standard Specification as amended by all applicable SCNs and MSCNs.

A320 Standard

	
  

	
Specification

	
means the A320-200 standard specification document number D.000.02000 Issue 7, dated March 1, 2007 a copy of which has been annexed hereto as Appendix A2, with the following design weights:

 

	
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MTOW:

	
73.5 tonnes

	
  

	
MLW:

	
64.5 tonnes and

	
  

	
MZFW:

	
61.0 tonnes

A321 Standard

	 	
Specification

	
means the A321-200 standard specification document number E.000.02000 Issue 4, dated March 1, 2007 a copy of which has been annexed hereto as Appendix A3, with the following design weights:

	
  

	
MTOW:

	
89 tonnes

	
  

	
MLW:

	
75.5 tonnes and

	
  

	
MZFW:

	
71.5 tonnes

	
  

	
Airframe Base Price

	
means, with respect to the:

	
  

	
  (i)

	
A320 Airframe, the A320 Airframe Base Price set forth in Clause 3.1.1;

	
  

	
  (ii)

	
A321 Airframe, the A321 Airframe Base Price set forth in Clause 3.1.2; or

	
  

	
  (iii)

	
Aircraft, any or all of the A320 Airframe Base Price and the A321 Airframe Base Price.

	
  

	
Aircraft

	
means any or all of the A320 Aircraft and A321 Aircraft.

Base Delivery

	
  

	
Condition Year

	
***

	
  

	
Base Price

	
means the sum of the applicable Airframe Base Price and the applicable Propulsion Systems Base Price.

 

Daily Liquidated

	
  

	
Damages Amount

	
as specified in Clause 6.

	
  

	
First Quarter, or Q1

	
means the months of January, February, and March.

	
  

	
Fourth Quarter, or Q4

	
means the months of October, November, and December.

PEP Revision Service

	
  

	
Period

	
as specified in Clause 8.2.

Propulsion Systems

	
  

	
Base Price

	
as specified in Clause 3.2.

Propulsion Systems

	
  

	
Manufacturer

	
means the manufacturer of the selected Propulsion Systems.

Propulsion Systems

	
  

	
Reference Price

	
as specified in Clause 3.2.

 

	
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Quarter

	
means any or all of the First Quarter, Second Quarter, Third Quarter and Fourth Quarter

Revision Service

	
  

	
Period

	
as specified in Clause 8.1.

	
  

	
Second Quarter, or Q2

	
means the months of April, May, and June.

	
  

	
Third Quarter, or Q3

	
means the months of July, August, and September.

	
0.3

	
Clause headings and the index are inserted for convenience of reference only and shall be ignored in the interpretation of this Agreement.

	
0.4

	
In this Agreement unless the context otherwise requires:

	
  

	
(a)

	
references to Clauses, Schedules, Appendices, and Exhibits are to be construed as references to the Clauses, Schedules, Appendices, and Exhibits to this Agreement and references to this Agreement include its Clauses, Schedules, Exhibits and Appendices;

	
  

	
(b)

	
words importing the plural shall include the singular and vice versa; and

	
  

	
(c)

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

	
1.

	
QUANTITY

	 	
The Seller shall sell and deliver and the Buyer shall buy and take delivery of thirty (30) Aircraft on the Delivery Dates at the Delivery Location upon the terms and conditions contained in this Agreement.

Unless otherwise agreed in writing by the Parties pursuant to the terms and conditions of this Agreement, such thirty (30) Aircraft shall be ten (10) A320 Aircraft and twenty (20) A321 Aircraft.

	
2.

	
AIRCRAFT DEFINITION

	
2.1

	
Aircraft Standard Specification Definition

	
2.1.1

	
Standard Specification for the A320 Aircraft

The A320 Aircraft shall be manufactured in accordance with the A320 Specification.

	
2.1.2

	
Standard Specification for the A321 Aircraft

The A321 Aircraft shall be manufactured in accordance with the A321 Specification.

 

	
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2.2

	
Propulsion Systems

	
2.2.1

	
The A320 Airframe will be equipped with a set of two (2):

	
  

	
(i)

	
CFM International CFM 56-5B4/3 engines, or

	
  

	
(ii)

	
International Aero Engines IAE V2527-A5 engines

(each, upon selection by the Buyer, being referred to as the “A320 Propulsion Systems”).

	
2.2.2

	
The A321 Airframe will be equipped with a set of two (2):

	
  

	
(i)

	
CFM International CFM 56-5B3/3 engines, or

	
  

	
(ii)

	
International Aero Engines IAE V2533-A5 engines

(each, upon selection by the Buyer, being referred to as the “A321 Propulsion Systems”).

The A320 Propulsion Systems and the A321 Propulsion Systems being referred to herein collectively as the “Propulsion Systems”.

	
2.2.3

	
The Buyer shall notify the Seller in writing of its selection of Propulsion Systems type for the Aircraft by no later than *** prior to the Scheduled Delivery Month of the first Aircraft based on the Aircraft delivery schedule set forth in Clause 4 herein.  Such selection shall be incorporated in the applicable Aircraft Specification by signature of a Specification Change Notice.  If the Buyer does not select its Propulsion Systems type as agreed herein, in addition to its other rights and remedies, the Seller will have the right to defer the Scheduled Delivery Months of any or all of the Aircraft.

	
3.

	
BASE PRICES

With respect to the Aircraft, Clause 3.1 and Clause 4.1 of the AGTA shall apply.

	
3.1

	
Airframe Base Price

	
3.1.1

	
A320 Airframe Base Price

The A320 Airframe Base Price is the sum of:

	
  

	
(i)

	
the base price of the standard A320 Airframe as defined in the A320 Standard Specification excluding Buyer Furnished Equipment and including for the avoidance of doubt engine accessories, nacelles and thrust reversers, which is:

***, and

 

	
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(ii)

	
the budgetary sum of the base prices of the Specification Change Notices applicable to A320 Aircraft, which is:

***

 

	
3.1.2

	
A321 Airframe Base Price

The A321 Airframe Base Price is the sum of:

	
  

	
(i)

	
the base price of the standard A321 Airframe as defined in the A321 Standard Specification excluding Buyer Furnished Equipment and including for the avoidance of doubt engine accessories, nacelles and thrust reversers, which is:

***, and

 

	
  

	
(ii)

	
the budgetary sum of the base prices of the Specification Change Notices applicable to A321 Aircraft, which is:

***

	
3.1.4

	
The Airframe Base Prices are expressed in United States dollars (USD) at *** delivery conditions and are subject to adjustment up to the Aircraft Delivery Date in accordance with the Airframe Price Revision Formula set out in Appendix B.

	
3.2

	
Propulsion Systems Base Price

	
3.2.1

	
CFM International

	
3.2.1.1

	
The Propulsion Systems Base Price of a set of two (2) CFM INTERNATIONAL Propulsion Systems is:

	
  

	
(i)

	
CFM56-5B4/3 for the A320 Aircraft

***

	
  

	
(ii)

	
CFM56-5B3/3 for the A321 Aircraft

***

	
3.2.1.2

	
Such CFM International Propulsion Systems Base Prices have been established in accordance with delivery conditions for a theoretical delivery in *** and have been calculated from the CFM International Propulsion Systems Reference Prices below:

	
  

	
(i)

	
CFM56-5B4/3 for the A320 Aircraft

***

	
  

	
(ii)

	
CFM56-5B3/3 for the A321 Aircraft

 

	
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The CFM International Propulsion Systems Reference Prices have been established in accordance with economic conditions prevailing for a theoretical delivery in *** at the Reference Composite Price Index of *** and shall be subject to revision up to the Aircraft Delivery Date in accordance with the CFM INTERNATIONAL Price Revision Formula set out in Appendix C1 hereto.

	
3.2.2

	
IAE

	
3.2.2.1

	
The Propulsion Systems Base Price of a set of two (2) INTERNATIONAL AERO ENGINES Propulsion Systems (excluding specifically engine accessories, nacelles and thrust reversers) is:

	
  

	
(i)

	
IAE V2527-A5 for the A320 Aircraft

***

	
  

	
(ii)

	
IAE V2533-A5 for the A321 Aircraft

***

	
3.2.2.2

	
Such INTERNATIONAL AERO ENGINES Propulsion Systems Base Prices have been established in accordance with delivery conditions for a theoretical delivery in *** and have been calculated from the INTERNATIONAL AERO ENGINES Propulsion Systems Reference Prices below:

	
  

	
(i)

	
IAE V2527-A5 for the A320 Aircraft

***

	
  

	
(ii)

	
IAE V2533-A5 for the A321 Aircraft

***

The INTERNATIONAL AERO ENGINES Propulsions Systems Reference Prices have been established in accordance with economic conditions prevailing for a theoretical delivery in *** and shall be subject to revision up to the Aircraft delivery date in accordance with the INTERNATIONAL AERO ENGINES Price Revision Formula set forth in Appendix C2 hereto.

	
3.3

	
Base Price of the Aircraft

The Base Price of the Aircraft is the sum of the Airframe Base Price and the CFM International Propulsion Systems Base Price until the Buyer notifies the Seller of its Propulsion Systems selection. After such notification, the Base Price of the Aircraft shall be the sum of the Airframe Base Price and the selected Propulsion Systems Base Price.

 

	
***

	
 
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4.

	
DELIVERY SCHEDULE

Subject to Clauses 2, 7, 8, 10 and 18 of the AGTA, the Seller shall have the Aircraft Ready for Delivery at the Delivery Location within the following delivery months or Quarters:

 

	  	
N°1

	
A320 Aircraft

	
***

	  	
N°2

	
A320 Aircraft

	
***

	  	  	  	  
	  	
N°3

	
A321 Aircraft

	
***

	  	
N°4

	
A321 Aircraft

	
***

	  	  	  	  
	  	
N°5

	
A321 Aircraft

	
***

	  	
N°6

	
A321 Aircraft

	
***

	  	
N°7

	
A321 Aircraft

	
***

	  	
N°8

	
A321 Aircraft

	
***

	  	  	  	  
	  	
N°9

	
A320 Aircraft

	
***

	  	
N°10

	
A320 Aircraft

	
***

	  	  	  	  
	  	
N°11

	
A321 Aircraft

	
***

	  	
N°12

	
A321 Aircraft

	
***

	  	
N°13

	
A321 Aircraft

	
***

	  	
N°14

	
A321 Aircraft

	
***

	  	
N°15

	
A321 Aircraft

	
***

	  	
N°16

	
A321 Aircraft

	
***

	  	
N°17

	
A321 Aircraft

	
***

	  	
N°18

	
A321 Aircraft

	
***

	  	
N°19

	
A321 Aircraft

	
***

	  	
N°20

	
A321 Aircraft

	
***

	  	  	  	  
	  	
N°21

	
A321 Aircraft

	
***

	  	
N°22

	
A321 Aircraft

	
***

	  	
N°23

	
A321 Aircraft

	
***

	  	
N°24

	
A321 Aircraft

	
***

	  	  	  	  
	  	
N°25

	
A320 Aircraft

	
***

	  	
N°26

	
A320 Aircraft

	
***

	  	
N°27

	
A320 Aircraft

	
***

	  	
N°28

	
A320 Aircraft

	
***

	  	
N°29

	
A320 Aircraft

	
***

	  	
N°30

	
A320 Aircraft

	
***

 

Each such calendar month shall be, with respect to the corresponding Aircraft, the “Scheduled Delivery Month”.

 

	
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5.

	
PAYMENTS

	
5.1

	
With respect to Clause 5.3.1 of the AGTA, the Predelivery Payment Reference Price is determined by the following formula:

***

	
5.2

	
With respect to Clause 5.3.2 of the AGTA, the Predelivery Payments shall be made in accordance with the following schedule:

***

In the event of the above schedule resulting in any Predelivery Payment falling due prior to the date of signature of this Agreement, such Predelivery Payment shall be made upon signature of this Agreement.

***

	
5.3

	
With respect to Clause 5.3.5 of the AGTA, the Seller shall be entitled to request Predelivery Payments for each SCN executed after signature of this Agreement:

***

	
6.

	
LIQUIDATED DAMAGES

In the event of a Non-Excusable Delay as defined in Clause 11 of the AGTA, ***

The amount of such liquidated damages shall *** in respect of any one Aircraft.

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

	
7.

	
WARRANTIES AND SERVICE LIFE POLICY

	
7.1

	
With respect to Clause 12.1.3 of the AGTA, the Warranty Period shall be ***

	
7.2

	
With respect to Clause 12.2.2 of the AGTA, if a Failure occurs in an Item before the Aircraft in which such Item has been originally installed has completed *** then the Seller shall comply with the undertakings defined in such Clause 12.2.2.

	
7.3

	
With respect to Clause 12.2.3 of the AGTA, ***

 

	
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7.4

	
Waiver, Release and Renunciation

THE WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE SELLER (AS DEFINED BELOW FOR THE PURPOSES OF THIS CLAUSE) AND REMEDIES OF THE BUYER SET FORTH IN CLAUSE 12 AND CLAUSE 14 OF THE AGTA ARE EXCLUSIVE AND IN SUBSTITUTION FOR, AND THE BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE SELLER AND RIGHTS, CLAIMS AND REMEDIES OF THE BUYER AGAINST THE SELLER, EXPRESS OR IMPLIED, ARISING BY LAW, CONTRACT OR OTHERWISE, WITH RESPECT TO ANY NON-CONFORMITY OR DEFECT OF ANY KIND, IN ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY, PART, SOFTWARE, DATA OR SERVICES DELIVERED UNDER THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO:

	
  

	
A.

	
ANY WARRANTY AGAINST HIDDEN DEFECTS;

	
  

	
B.

	
ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

	
  

	
C.

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

	
  

	
D.

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

	
  

	
E.

	
ANY OBLIGATION, LIABILITY, RIGHT, CLAIM, OR REMEDY FOR LOSS OF OR DAMAGE TO ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY, PART, SOFTWARE, DATA OR SERVICES DELIVERED UNDER THIS AGREEMENT, FOR LOSS OF USE, REVENUE OR PROFIT, OR FOR ANY OTHER DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES,

PROVIDED THAT IN THE EVENT THAT ANY OF THE AFORESAID PROVISIONS SHOULD FOR ANY REASON BE HELD UNLAWFUL OR OTHERWISE INEFFECTIVE THE REMAINDER OF THIS AGREEMENT SHALL REMAIN IN FULL FORCE AND EFFECT.

FOR THE PURPOSES OF THIS CLAUSE, THE “SELLER” SHALL BE UNDERSTOOD TO INCLUDE THE SELLER, ITS AFFILIATES AND ANY OF ITS SUPPLIERS AND SUBCONTRACTORS.

	
8.

	
TECHNICAL DATA

	
8.1

	
Pursuant to Clause 14 of the AGTA, Technical Data shall be supplied in accordance with Exhibit G of the AGTA *** (the “Revision Service Period”).

	
8.2

	
Pursuant to Clause 14.13.3 of the AGTA, the license to use the Performance Engineer Program (the “PEP”) and the revision service shall be provided *** (the “PEP Revision Service Period”).

	
8.3

	
With respect to Clause 14.7 of the AGTA, upon request by the Buyer, the Seller shall provide up to *** of Technical Data familiarization training at the Seller’s or the Buyer’s facilities.

 

	
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If such training is conducted at the Buyer’s facilities, the Seller will bear the costs for all travel and living expenses of the representatives of the Seller conducting such training.

	
9.

	
SELLER REPRESENTATIVE SERVICES

Pursuant to Clause 15 of the AGTA, the Seller Representative allocation provided to the Buyer is defined hereunder.

	
9.1

	
The Seller shall provide to the Buyer a total of *** of Seller Representative Services per Aircraft at the Buyer's main base or at other locations to be mutually agreed, limited to a total of *** for the fleet.

	
9.2

	
For the sake of clarification, such Seller Representatives’ services shall include initial Aircraft Entry Into Service assistance, sustaining support services and spares representatives.

	
9.3

	
The number of the Seller Representatives assigned to the Buyer at any one time shall be mutually agreed, but shall at no time exceed *** Seller Representatives.

	
10.

	
NEGOTIATED AGREEMENT

The Buyer and the Seller specifically recognize that this Agreement, which incorporates the terms of the AGTA, is an international supply contract which has been the subject of discussion and negotiation, that all its terms and conditions are fully understood by the Buyer and the Seller, and that the Specification and price of the Aircraft specified in this Agreement and the other mutual agreements of the Buyer and the Seller set forth herein and in the AGTA were agreed upon after careful consideration by the Buyer using its judgment as a professional operator and by the Seller using its judgment as an aircraft manufacturer and arrived at in consideration of, inter alia, all the provisions hereof specifically including all waivers, releases and renunciations by the Buyer set out herein and in the AGTA.

The Buyer and the Seller hereby also agree that the United Nations Convention on Contracts for the International Sale of Goods will not apply to this transaction.

	
11.

	
APPLICABILITY

This Agreement incorporates the terms and conditions of the AGTA.

This Agreement and the AGTA contain the entire agreement between the Buyer and the Seller with respect to the subject matter hereof and supersede all previous proposals, understandings, commitments or representations whatsoever, oral or written, and may be changed only by mutual agreement in writing signed by authorized representatives of the Buyer and the Seller.

With respect to the Aircraft, the AGTA shall be deemed amended and supplemented to the extent herein provided and as so amended and supplemented shall remain in full force and effect.

 

	
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If there is any inconsistency between the AGTA and this Agreement, the latter shall prevail to the extent of such inconsistency.

	
12.

	
CONFIDENTIALITY

The Parties agree that the terms and conditions of Clause 22.12 of the AGTA shall apply mutatis mutandis to this Agreement.

	
13.

	
CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

The Parties do not intend that any term of the AGTA and of this Agreement shall be enforceable solely by virtue of the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to the AGTA and the Agreement.

The Parties may rescind, vary, waive, release, assign, novate or otherwise dispose of all or any of their respective rights or obligations under the AGTA or the Agreement without the consent of any person who is not a party to the AGTA and the Agreement.

	
14.

	
LAW AND JURISDICTION

	
14.1

	
This Agreement and the AGTA shall be governed by and construed in accordance with the laws of England.

	
14.2

	
Any dispute, controversy or claim arising out of or in connection with this Agreement and/or the AGTA, including any question regarding their existence, validity or termination ("Dispute") shall be referred to and finally resolved in accordance with the following procedure.

The Parties shall first attempt in good faith to resolve the Dispute by negotiation, in which case, one Party shall give notice to the other of the Dispute ("Notice of Dispute"). Such Notice of Dispute shall include a summary of the subject of the Dispute and the arguments upon which that Party relies.

Any Dispute not resolved by negotiation within thirty (30) calendar days following receipt of the Notice of Dispute by the other Party shall be referred to and finally resolved by arbitration under the Rules of Arbitration of the International Chamber of Commerce ("ICC") (the "Rules"), which Rules are deemed to be incorporated by reference into this Agreement and the AGTA.

Arbitration shall be in the English language and be administered by the International Court of Arbitration of the ICC pursuant to the Rules. The number of arbitrators shall be three (3). The place of arbitration shall be London, United Kingdom. The decision of the arbitral tribunal shall be final and binding on the Parties.

 

	
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15.

	
COUNTERPARTS

This Agreement has been executed in three (3) original copies which are in English and may be executed in counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same Agreement.

 

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

 

	
Agreed and Accepted

	  	
Agreed and Accepted

	  	  	  
	
For and on behalf of:

	  	
For and on behalf of:

	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  
	  	  	  	  	  
	
Title:

	  	  	
Title:

	  
	  	  	  	  	  
	
Signature: 

	  	  	
Signature: 

	  
	  	  	  	  
	
Witnessed and acknowledged,

	  	  
	  	  	  
	
For and on behalf of

	  	  
	  	  	  
	
CHINA SOUTHERN AIRLINES GROUP

	  	  
	
IMPORT AND EXPORT TRADING CORP., LTD.

	  	  
	  	  	  	  
	
Name:

	  	  	  
	  	  	  	  
	
Title:

	  	  	  
	  	  	  	  
	
Signature: 

	  	  	  

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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APPENDIX A1

A320 STANDARD SPECIFICATION

The A320 Standard Specification is contained in a separate folder.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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APPENDIX A2

A321 STANDARD SPECIFICATION

The A321 Standard Specification is contained in a separate folder.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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APPENDIX B

 

AIRFRAME PRICE REVISION FORMULA

	
1

	
Base Prices

The Airframe Base Prices defined in Clause 3.1 of this Agreement are subject to adjustment for changes in economic conditions as measured by data obtained from the US Department of Labor, Bureau of Labor Statistics and in accordance with the provisions hereof.

	
2

	
Base Period

The Airframe Base Prices have been established in accordance with ***

values indicated hereof shall not be subject to any revision.

	
3

	
Indexes

Labor Index: ***

Material Index: ***

	
4

	
Revision Formula

***

	
5

	
General Provisions

***

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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APPENDIX C1

CFM INTERNATIONAL PRICE REVISION FORMULA

	
1

	
Reference Price of the Propulsion Systems

The Propulsion Systems Reference Price of a set of two (2) CFM International engines and additional standard equipment is:

For the A320 Aircraft CFM-5B4/3 engines: ***

For the A321 Aircraft CFM-5B3/3 engines: ***

These Propulsion Systems Reference Prices are subject to adjustment for changes in economic conditions as measured by data obtained from the US Department of Labor, Bureau of Labor Statistics and in accordance with the provisions of Clauses 1.4 and 1.5 hereof in this Appendix C1.

  

	
2

	
Reference Period

The above Propulsion Systems Reference Prices have been established in accordance with the *** as defined by CFM International by the ***

	
3

	
Indexes

Labor Index: ***

Material Index : ***

	
4

	
Revision Formula

***

	
5

	
General Provisions

***

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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APPENDIX C2

INTERNATIONAL AERO ENGINES PRICE REVISION FORMULA

	
1

	
Reference Price

The Propulsion Systems Reference Price for a set of two (2) INTERNATIONAL AERO ENGINES V2500 series Engines is:

For the A320 Aircraft IAE V2527-A5 engines: ***

For the A321 Aircraft IAE V2533-A5 engines: ***

These Propulsion Systems Reference Prices are subject to adjustment for changes in economic conditions as measured by data obtained from the US Department of Labor, Bureau of Labor Statistics, and in accordance with the provisions of this Appendix C2.

	
2

	
Reference Period

The above Propulsion Systems Reference Prices have been established in accordance with *** as defined, according to INTERNATIONAL AERO ENGINES by the ***

	
3

	
Indexes

Labor Index: ***

Material Index: ***

	
4

	
Revision Formula

***

	
5

	
General Provisions

***

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

 

	
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LETTER AGREEMENTS AND SIDE LETTERS

TO THE

A320 FAMILY AIRCRAFT PURCHASE AGREEMENT

BETWEEN

AIRBUS S.A.S.

AND

CHINA SOUTHERN AIRLINES COMPANY LIMITED

AND

CHINA SOUTHERN AIRLINES GROUP

IMPORT AND EXPORT TRADING CORP., LTD.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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CONTENTS

	
LETTER

	  	  
	
AGREEMENT

	  	  
	  	  	  
	
N°1

	  	
***

	  	  	  
	
N°2

	  	
***

	  	  	  
	
N°3

	  	
***

	  	  	  
	
N°4

	  	
***

	  	  	  
	
N°5A

	  	
A320 PERFORMANCE GUARANTEES

	  	  	  
	
N°5B

	  	
A321 PERFORMANCE GUARANTEES

	  	  	  
	
N°6

	  	
MISCELLANEOUS MATTERS

	  	  	  
	
N°7

	  	
CUSTOMER SUPPORT MATTERS

	  	  	  
	
N°8

	  	
***

	  	  	  
	
N°9

	  	
***

	  	  	  
	
N°10

	  	
***

	  	  	  
	
SIDE

	  	  
	
LETTER

	  	  
	  	  	  
	
N°1

	  	
***

	  	  	  
	
N°2

	  	
***

	  	  	  
	
N°3

	  	
***

	  	  	  
	
N°4

	  	
***

	  	  	  
	
N°5

	
  

	
***

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 1

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

Subject  : ***

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 1

***

	
8.

	
Assignment

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

	
9.

	
Confidentiality

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 1

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

	
Agreed and Accepted

	  	
Agreed and Accepted

	  	  	  
	
For and on behalf of:

	  	
For and on behalf of:

	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  
	
Name:

	  	  	
Name:

	  
	  	  	  	  	  
	
Title:

	  	  	
Title:

	  
	  	  	  	  	  
	
Signature:

	  	  	
Signature:

	  
	  	  	  
	
Witnessed and acknowledged,

	  	  
	  	  	  
	
For and on behalf of

	  	  
	  	  	  
	
CHINA SOUTHERN AIRLINES GROUP

	  	  
	
IMPORT AND EXPORT TRADING CORP., LTD.

	  	  
	  	  	  
	
Name:

	  	  	  
	  	  	  	  
	
Title:

	  	  	  
	  	  	  	  
	
Signature:

	  	
  

	  

___________________________, 2010

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 2

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

Subject  : ***

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 2

***

	
2.

	
Assignment

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

	
3.

	
Confidentiality

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 2

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

	
Agreed and Accepted

	  	
Agreed and Accepted

	  	  	  
	
For and on behalf of:

	  	
For and on behalf of:

	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  
	
Name:

	  	  	
Name:

	  
	  	  	  	  	  
	
Title:

	  	  	
Title:

	  
	  	  	  	  	  
	
Signature:

	  	  	
Signature:

	  
	  	  	  
	
Witnessed and acknowledged,

	  	  
	  	  	  
	
For and on behalf of

	  	  
	  	  	  
	
CHINA SOUTHERN AIRLINES GROUP

	  	  
	
IMPORT AND EXPORT TRADING CORP., LTD.

	  	  
	  	  	  
	
Name:

	  	  	  
	  	  	  	  
	
Title:

	  	  	  
	  	  	  	  
	
Signature:

	  	
  

	  

___________________________, 2010

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 3

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

Subject  : ***

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 3

***

	
2.

	
Assignment

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

	
3.

	
Confidentiality

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 3

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

	
Agreed and Accepted

	  	
Agreed and Accepted

	  	  	  
	
For and on behalf of:

	  	
For and on behalf of:

	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  
	
Name:

	  	  	
Name:

	  
	  	  	  	  	  
	
Title:

	  	  	
Title:

	  
	  	  	  	  	  
	
Signature:

	  	  	
Signature:

	  
	  	  	  
	
Witnessed and acknowledged,

	  	  
	  	  	  
	
For and on behalf of

	  	  
	  	  	  
	
CHINA SOUTHERN AIRLINES GROUP

	  	  
	
IMPORT AND EXPORT TRADING CORP., LTD.

	  	  
	  	  	  
	
Name:

	  	  	  
	  	  	  	  
	
Title:

	  	  	  
	  	  	  	  
	
Signature:

	  	
  

	  

___________________________, 2010

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 4

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

Subject  : ***

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 4

***

	
2.

	
Assignment

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

	
3.

	
Confidentiality

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 4

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

	
Agreed and Accepted

	  	
Agreed and Accepted

	  	  	  
	
For and on behalf of:

	  	
For and on behalf of:

	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  
	
Name:

	  	  	
Name:

	  
	  	  	  	  	  
	
Title:

	  	  	
Title:

	  
	  	  	  	  	  
	
Signature:

	  	  	
Signature:

	  
	  	  	  
	
Witnessed and acknowledged,

	  	  
	  	  	  
	
For and on behalf of

	  	  
	  	  	  
	
CHINA SOUTHERN AIRLINES GROUP

	  	  
	
IMPORT AND EXPORT TRADING CORP., LTD.

	  	  
	  	  	  
	
Name:

	  	  	  
	  	  	  	  
	
Title:

	  	  	  
	  	  	  	  
	
Signature:

	  	
  

	  

___________________________, 2010

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5A

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

 

Subject: A320-200 PERFORMANCE GUARANTEES

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5A

	
1

	
AIRCRAFT CONFIGURATION

The guarantees defined below (the "Guarantees") are applicable to the A320-200 aircraft (the “Aircraft” for the purposes of this Letter Agreement) as described in the Standard Specification *** equipped with:

a)         CFM56-5B4/3 model engines (“CFM Engines”)

b)         IAE V2527-A5 model engines (“IAE Engines”)

without taking into account any further changes thereto as provided in the Agreement (the “Specification” for the purposes of this Letter Agreement).

	
2

	
GUARANTEED PERFORMANCE

	
2.1

	
Take-off Field Length

The JAR take-off field length at an Aircraft gross weight of *** at the start of Take-Off Distance Available (TODA) at Sea Level pressure altitude in *** conditions shall not be more than a guaranteed value of:

a)         for Aircraft equipped with CFM Engines :      ***

b)         for Aircraft equipped with IAE Engines :       ***

	
2.2

	
Second Segment Climb

The Aircraft shall meet JAR 25 regulations for one engine inoperative climb after take-off, undercarriage retracted, at a weight corresponding to the stated weight at the start of Take-Off Distance Available (TODA), at the altitude and temperature, and in the configuration of flap angle and safety speed required to comply with the performance guaranteed in Clause 2.1 above.

	
2.3

	
Landing Field Length

JAR certified dry landing field length at an Aircraft gross weight of *** at Sea Level pressure altitude shall be not more than a guaranteed value of:

a)         for Aircraft equipped with CFM Engines :     ***

b)         for Aircraft equipped with IAE Engines :       ***

	
2.4

	
Cruise Specific Air Range

The average nautical miles per kilogram of fuel (average SAR) at a true Mach number of *** conditions under the Weight and Altitude conditions given below:

Gross Weight (kg)    Pressure Altitude (ft)

***

shall be not less than a guaranteed value of:

a)         for Aircraft equipped with CFM Engines :      ***

b)         for Aircraft equipped with IAE Engines :       ***

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5A

	
3

	
MANUFACTURER'S WEIGHT EMPTY

The Seller guarantees a Manufacturer's Weight Empty as below:

a)         for Aircraft equipped with CFM Engines       ***

b)         for Aircraft equipped with IAE Engines         ***

These are the Manufacturer's Weight Empty of the Aircraft as defined in Section 13-10.00.00 of the Standard Specifications amended by the SCN’s defined in Clause 1 of this Letter Agreement and are subject to adjustment as defined in Clause 6.2.

	
4

	
GUARANTEE CONDITIONS

	
4.1

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

	
4.2

	
For the determination of JAR take-off and landing performance a hard dry level runway surface with no runway strength limitations, no line-up allowances, no obstacles, zero wind, atmosphere according to ISA, except as otherwise noted, and the use of speed brakes, flaps, landing gear and engines in the conditions liable to provide the best results will be assumed.

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

	
4.3

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

	
4.4

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

	
4.5

	
Where applicable the Guarantees assume the use of an approved fuel having a density of *** and a lower heating value of ***. Cruise performance assumes a centre of gravity position of ***.

	
5

	
GUARANTEE COMPLIANCE

	
5.1

	
Compliance with the Guarantees shall be demonstrated using operating procedures and limitations in accordance with those defined by the certifying Airworthiness Authority and by the Seller unless otherwise stated.

	
5.2

	
Compliance with the take-off, second segment and landing elements of the Guarantees will be demonstrated with reference to the JAA approved Flight Manual.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5A

	
5.3

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

	
5.4

	
Compliance with the Manufacturer's Weight Empty guarantee defined in Clause 3 shall be demonstrated with reference to a Weight Compliance Report.

	
5.5

	
Data derived from tests will be adjusted as required using conventional methods of correction, interpolation or extrapolation in accordance with established aeronautical practices to show compliance with the Guarantees.

	
5.6

	
Compliance with the Guarantees is not contingent on engine performance defined in the engine manufacturer's specification.

	
5.7

	
The Seller undertakes to furnish the Buyer with a report or reports demonstrating compliance with the Guarantees at, or as soon as possible after, the delivery of each of the Buyer’s Aircraft.

	
6

	
ADJUSTMENT OF GUARANTEES

	
6.1

	
If any change to any law, governmental regulation or requirement or interpretation thereof by any governmental agency (a "Rule Change")  is made subsequent to the date of the Agreement and such Rule Change affects the Aircraft configuration or performance or both required to obtain certification, then the Guarantees shall be appropriately modified to reflect the effect of any such Rule Change.

	
6.2

	
The Guarantees apply to the Aircraft as described in Clause 1 of this Letter Agreement and may be adjusted in the event of:

	
  

	
(i)

	
Any further configuration change which is the subject of a SCN

	
  

	
(ii)

	
Variation in actual weights of items defined in Section 13-10 of the Standard Specification

	
  

	
(iii)

	
Changes required to obtain certification that cause modifications to the performance or weight of the Aircraft

	
7

	
EXCLUSIVE GUARANTEES

The Guarantees are exclusive and are provided in lieu of any and all other performance and weight guarantees of any nature which may be stated, referenced or incorporated in the Standard Specification or any other document.

	
8

	
***

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5A

	
9.

	
***

	
10.

	
ASSIGNMENT

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

	
11.

	
CONFIDENTIALITY

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5A

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

	
Agreed and Accepted

	  	
Agreed and Accepted

	  	  	  
	
For and on behalf of:

	  	
For and on behalf of:

	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  
	
Name:

	  	  	
Name:

	  
	  	  	  	  	  
	
Title:

	  	  	
Title:

	  
	  	  	  	  	  
	
Signature:

	  	  	
Signature:

	  
	  	  	  
	
Witnessed and acknowledged,

	  	  
	  	  	  
	
For and on behalf of

	  	  
	  	  	  
	
CHINA SOUTHERN AIRLINES GROUP

	  	  
	
IMPORT AND EXPORT TRADING CORP., LTD.

	  	  
	  	  	  
	
Name:

	  	  	  
	  	  	  	  
	
Title:

	  	  	  
	  	  	  	  
	
Signature:

	  	
  

	  

 

___________________________, 2010

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5B

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

 

Subject: A321-200 PERFORMANCE GUARANTEES

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5B

	
1

	
AIRCRAFT CONFIGURATION

The guarantees defined below (the "Guarantees") are applicable to the A321-200 aircraft (the “Aircraft” for the purposes of this Letter Agreement) as described in the Standard Specification *** equipped with:

	
  

	
a)

	
CFM56-5B3/3 model engines (“CFM Engines”)

	
  

	
b)

	
IAE V2533-A5 model engines (“IAE Engines”)

without taking into account any further changes thereto as provided in the Agreement (the “Specification” for the purposes of this Letter Agreement).

	
2

	
GUARANTEED PERFORMANCE

	
2.1

	
Take-off Field Length

The JAR take-off field length at an Aircraft gross weight of *** at the start of Take-Off Distance Available (TODA) at Sea Level pressure altitude in *** conditions shall not be more than a guaranteed value of:

	
  

	
a)

	
for Aircraft equipped with CFM Engines :      ***

	
  

	
b)

	
for Aircraft equipped with IAE Engines :        ***

	
2.2

	
Second Segment Climb

The Aircraft shall meet JAR 25 regulations for one engine inoperative climb after take-off, undercarriage retracted, at a weight corresponding to the stated weight at the start of Take-Off Distance Available (TODA), at the altitude and temperature, and in the configuration of flap angle and safety speed required to comply with the performance guaranteed in Clause 2.1 above.

	
2.3

	
Landing Field Length

JAR certified dry landing field length at an Aircraft gross weight of *** at Sea Level pressure altitude shall be not more than a guaranteed value of:

	 	
a)

	
for Aircraft equipped with CFM Engines :      ***

	 	
b)

	
for Aircraft equipped with IAE Engines :        ***

	
2.4

	
Cruise Specific Air Range

The average nautical miles per kilogram of fuel (average SAR) at a true Mach number of *** under the Weight and Altitude conditions given below:

Gross Weight (kg)   Pressure Altitude (ft)

***                           ***

shall be not less than a guaranteed value of:

	 	
a)

	
for Aircraft equipped with CFM Engines :      ***

	 	
b)

	
for Aircraft equipped with IAE Engines :        ***

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5B

	
3

	
MANUFACTURER'S WEIGHT EMPTY

The Seller guarantees a Manufacturer's Weights Empty as below:

	 	
a)

	
for Aircraft equipped with CFM Engines        ***

	 	
b)

	
for Aircraft equipped with IAE Engines          ***

These are the Manufacturer's Weights Empty of the Aircraft as defined in Section 13-10.00.00 of the Standard Specifications amended by the SCN’s defined in Clause 1 of this Letter Agreement and are subject to adjustment as defined in Clause 6.2.

	
4

	
GUARANTEE CONDITIONS

	
4.1

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

	
4.2

	
For the determination of JAR take-off and landing performance a hard dry level runway surface with no runway strength limitations, no line-up allowances, no obstacles, zero wind, atmosphere according to ISA, except as otherwise noted, and the use of speed brakes, flaps, landing gear and engines in the conditions liable to provide the best results will be assumed.

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

	
4.3

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

	
4.4

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

	
4.5

	
Where applicable the Guarantees assume the use of an approved fuel having a density of *** and a lower heating value of ***. Cruise performance assumes a centre of gravity position of ***.

	
5

	
GUARANTEE COMPLIANCE

	
5.1

	
Compliance with the Guarantees shall be demonstrated using operating procedures and limitations in accordance with those defined by the certifying Airworthiness Authority and by the Seller unless otherwise stated.

	
5.2

	
Compliance with the take-off, second segment and landing elements of the Guarantees will be demonstrated with reference to the JAA approved Flight Manual.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5B

	
5.3

	
Compliance with those parts of the Guarantees defined in Clause 2 above not covered by the requirements of the certifying Airworthiness Authority shall be demonstrated by calculation based on data obtained during flight tests conducted on one (or more, at the Seller's discretion) A321-200 aircraft of the same aerodynamic configuration as the Aircraft purchased by the Buyer and incorporated in the In-Flight Performance Program and data bases  appropriate to the Aircraft.

	
5.4

	
Compliance with the Manufacturer's Weight Empty guarantee defined in Clause 3 shall be demonstrated with reference to a Weight Compliance Report.

	
5.5

	
Data derived from tests will be adjusted as required using conventional methods of correction, interpolation or extrapolation in accordance with established aeronautical practices to show compliance with the Guarantees.

	
5.6

	
Compliance with the Guarantees is not contingent on engine performance defined in the engine manufacturer's specification.

	
5.7

	
The Seller undertakes to furnish the Buyer with a report or reports demonstrating compliance with the Guarantees at, or as soon as possible after, the delivery of each of the Buyer’s Aircraft.

	
6

	
ADJUSTMENT OF GUARANTEES

	
6.1

	
If any change to any law, governmental regulation or requirement or interpretation thereof by any governmental agency (a"Rule Change")  is made subsequent to the date of the Agreement and such Rule Change affects the Aircraft configuration or performance or both required to obtain certification, then the Guarantees shall be appropriately modified to reflect the effect of any such Rule Change.

	
6.2

	
The Guarantees apply to the Aircraft as described in Clause 1 of this Letter Agreement and may be adjusted in the event of:

	
  

	
(i)

	
Any further configuration change which is the subject of a SCN

	
  

	
(ii)

	
Variation in actual weights of items defined in Section 13-10 of the Standard Specification

	
  

	
(iii)

	
Changes required to obtain certification that cause modifications to the performance or weight of the Aircraft

	
7

	
EXCLUSIVE GUARANTEES

The Guarantees are exclusive and are provided in lieu of any and all other performance and weight guarantees of any nature which may be stated, referenced or incorporated in the Standard Specification or any other document.

	
8

	
***

	
9.

	
***

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5B

	
10.

	
ASSIGNMENT

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

	
11.

	
CONFIDENTIALITY

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 5B

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

	
Agreed and Accepted

	  	
Agreed and Accepted

	  	  	  
	
For and on behalf of:

	  	
For and on behalf of:

	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  
	
Name:

	  	  	
Name:

	  
	  	  	  	  	  
	
Title:

	  	  	
Title:

	  
	  	  	  	  	  
	
Signature:

	  	  	
Signature:

	  
	  	  	  
	
Witnessed and acknowledged,

	  	  
	  	  	  
	
For and on behalf of

	  	  
	  	  	  
	
CHINA SOUTHERN AIRLINES GROUP

	  	  
	
IMPORT AND EXPORT TRADING CORP., LTD.

	  	  
	  	  	  
	
Name:

	  	  	  
	  	  	  	  
	
Title:

	  	  	  
	  	  	  	  
	
Signature:

	  	
  

	  

___________________________, 2010

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 6

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

Subject  : Miscellaneous

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 6

 

	
1.   

	
Clause 5 of the AGTA

With respect only to the Aircraft purchased under the Purchase Agreement, the Parties agree to delete Clause 5.3.4 of the AGTA in its entirety and replace it with the following provision between the words QUOTE and UNQUOTE:

QUOTE

5.3.4       ***

UNQUOTE

 

	
2.

	
Clause 7 of the AGTA

With respect only to the Aircraft purchased under the Purchase Agreement, the Parties agree to add a new Clause 7.4.3 to the AGTA as set forth below between the words QUOTE and UNQUOTE:

QUOTE

7.4.3       ***

UNQUOTE

	
3.

	
Clause 18 of the AGTA

With respect only to the Aircraft purchased under the Purchase Agreement, the Parties agree to delete Clause 18.3.2 of the AGTA in its entirety and replace it with the following provision between the words QUOTE and UNQUOTE:

QUOTE

18.3.2

UNQUOTE

 

	
4.

	
Assignment

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

 

	
5.

	
Confidentiality

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LA6

	
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LETTER AGREEMENT 6

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

Witnessed and acknowledged,

For and on behalf of

	
CHINA SOUTHERN AIRLINES GROUP

	
IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  	  
	
Title:

	  	  
	  	  
	
Signature:

	  	  

  

___________________________, 2010

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

 

	
PA A320 CSN 2010

	
LA6

	
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LETTER AGREEMENT 7

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

Subject  : Customer Support

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family purchase agreement dated as of even date herewith (the "Purchase Agreement") which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

  

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

 

	
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LETTER AGREEMENT 7

 

	
1.

	
Clause 14 of the AGTA

 

	
1.1

	
With respect only to the Aircraft purchased under the Purchase Agreement, Clause 14.4.3.1 of the AGTA shall be deleted in its entirety and replaced by the following quoted text:

QUOTE

14.4.3.1  ***

UNQUOTE

	
1.2

	
With respect only to the Aircraft purchased under the Purchase Agreement, Clause 14.6 of the AGTA shall be deleted in its entirety and replaced by the following quoted text:

QUOTE

14.6  ***

QUOTE

	
1.3

	
With respect only to the Aircraft purchased under the Purchase Agreement, the following quoted text shall be added at the end of Clause 14.9.3 of the AGTA:

QUOTE

***

UNQUOTE

 

	
2.

	
Exhibit H of the AGTA

	
2.1

	
With respect only to the Aircraft purchased under the Purchase Agreement, the Parties agree to add to the following Clauses to Exhibit H of the AGTA:

QUOTE

3.1.4   ***

3.1.4.1 ***

3.1.4.2 ***

UNQUOTE

	
2.2

	
With respect only to the Aircraft purchased under the Purchase Agreement, the following new Clause 4.2.2 shall be added to Exhibit H of the AGTA:

QUOTE

4.2.2 ***

UNQUOTE

 

	
3.

	
Operational Visit

***

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

 

	
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LETTER AGREEMENT 7

 

	
4.

	
Flight Operations Review

***

 

	
5.

	
CBT Revision Service

The Airbus Advanced Computer Based Training in use at the Seller’s Training Centers are revised on a regular basis and such revision shall be provided to the Buyer ***.

 

	
6.

	
Training Allowance

Pursuant to Clause 2 and 3 of Appendix A to Clause 16 of the AGTA, ***

Such trainee-days shall be used solely for the above courses, as defined in the Seller's applicable Training Courses Catalogue.

Within such trainee-day allowance, the number of Engine Run-up courses shall be limited to ***

 

	
7.

	
Assignment

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

 

	
8.

	
Confidentiality

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

 

	
PA A320 CSN 2010

	
LA7

	
Page 3/4

	
CT1001939

	  	
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LETTER AGREEMENT 7

 

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

 

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

Witnessed and acknowledged,

For and on behalf of

	
CHINA SOUTHERN AIRLINES GROUP

	
IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  	  
	
Title:

	  	  
	  	  
	
Signature:

	  	  

 

___________________________, 2010

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

 

	
PA A320 CSN 2010

	
LA7

	
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LETTER AGREEMENT 8

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

Subject: ***

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
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LETTER AGREEMENT 8

   

***

	
2.

	
Assignment

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

	
3.

	
Confidentiality

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
LA8

	
Page 2/3

	
CT1001939

	  	
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LETTER AGREEMENT 8

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

 

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

Witnessed and acknowledged,

For and on behalf of

	
CHINA SOUTHERN AIRLINES GROUP

	
IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  	  
	
Title:

	  	  
	  	  
	
Signature:

	  	  

___________________________, 2010

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
LA8

	
Page 3/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

LETTER AGREEMENT 9

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport,

Guangzhou 510405

People's Republic of China

Subject  : ***

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
LA9

	
Page 1/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

LETTER AGREEMENT 9

***

	
5.

	
Assignment

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

 

	
6.

	
Confidentiality

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
LA9

	
Page 2/3

	
CT1001939

	  	
Private & Confidential

  

  

 

 

LETTER AGREEMENT 9

   

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

Witnessed and acknowledged,

For and on behalf of

	
CHINA SOUTHERN AIRLINES GROUP

	
IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  	  
	
Title:

	  	  
	  	  
	
Signature:

	  	  

 

___________________________, 2010

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
LA9

	
Page 3/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

LETTER AGREEMENT 10

   

CHINA SOUTHERN AIRLINES COMPANY LIMITED

Bai Yun Airport, 

Guangzhou 510405 

People's Republic of 

China

 

Subject : ***

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

 

Capitalized terms used herein and not otherwise defined in this Letter Agreement shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

 

The Parties agree that this Letter Agreement, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Letter Agreement.

 

If there is any inconsistency between the Purchase Agreement and this Letter Agreement, the latter shall prevail to the extent of such inconsistency.

 

***

   

	
2. 

	
Assignment

 

Notwithstanding any other provision of this Letter Agreement, the AGTA or the Purchase Agreement, this Letter Agreement and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

 

	
3. 

	
Confidentiality

 

This Letter Agreement (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

 

	
PA A320 CSN 2010

	
LA10

	
Page 1/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

 

LETTER AGREEMENT 10

 

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Letter Agreement to the Seller.

 

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

  

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

 

	
PA A320 CSN 2010

	
LA10

	
Page 2/3

	
CT1001939

	  	
Private & Confidential

 

  

  

  

 

LETTER AGREEMENT 10

 

	
Witnessed and

	  
	
acknowledged, For and

	  
	
on behalf of

	  
	
CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  
	
Title:

	  	  
	  
	
Signature:

	  	  

 

_________, 2010

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

 

	
PA A320 CSN 2010

	
LA10

	
Page 3/3

	
CT1001939

	  	
Private & Confidential

  

  

 

SIDE LETTER 1

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED

& CHINA SOUTHERN AIRLINES GROUP IMPORT

AND EXPORT TRADING CORP., LTD.

Bai Yun Airport

Guangzhou 510405

People's Republic of China

 

Subject : ***

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Side Letter shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Side Letter, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Side Letter.

If there is any inconsistency between the Purchase Agreement and this Side Letter, the latter shall prevail to the extent of such inconsistency.

Now, with respect to the Aircraft, the Buyer and the Seller agree the following:

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL1

	
Page 1/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

SIDE LETTER 1

	
  

	
***

	
2.

	
Assignment

	
  

	
Notwithstanding any other provision of this Side Letter, the AGTA or the Purchase Agreement, this Side Letter and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

	
3.

	
Confidentiality

	
  

	
This Side Letter (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL1

	
Page 2/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

SIDE LETTER 1

 

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Side Letter to the Seller.

 

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

Witnessed and acknowledged,

For and on behalf of

	
CHINA SOUTHERN AIRLINES GROUP

	
IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  	  
	
Title:

	  	  
	  	  
	
Signature:

	  	  

 

___________________________, 2010

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL1

	
Page 3/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

SIDE LETTER 2

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED

& CHINA SOUTHERN AIRLINES GROUP IMPORT

AND EXPORT TRADING CORP., LTD.

Bai Yun Airport

Guangzhou 510405

People's Republic of China

 

Subject : ***

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Side Letter shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Side Letter, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Side Letter.

If there is any inconsistency between the Purchase Agreement and this Side Letter, the latter shall prevail to the extent of such inconsistency.

 

Now, with respect to the Aircraft, the Buyer and the Seller agree the following:

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL2

	
Page 1/3

	
CT1001939

	  	
Private & Confidential

  

  

 

SIDE LETTER 2

	
  

	
***

 

	
2.

	
Assignment

	
  

	
Notwithstanding any other provision of this Side Letter, the AGTA or the Purchase Agreement, this Side Letter and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

 

	
3.

	
Confidentiality

	
  

	
This Side Letter (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL2

	
Page 2/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

SIDE LETTER 2

 

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Side Letter to the Seller.

 

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

Witnessed and acknowledged,

For and on behalf of

	
CHINA SOUTHERN AIRLINES GROUP

	
IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  	  
	
Title:

	  	  
	  	  
	
Signature:

	  	  

 

___________________________, 2010

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL2

	
Page 3/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

SIDE LETTER 3

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED

& CHINA SOUTHERN AIRLINES GROUP IMPORT

AND EXPORT TRADING CORP., LTD.

Bai Yun Airport

Guangzhou 510405

People's Republic of China

  

Subject : ***

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Side Letter shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Side Letter, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Side Letter.

If there is any inconsistency between the Purchase Agreement and this Side Letter, the latter shall prevail to the extent of such inconsistency.

Now, with respect to the Aircraft, the Buyer and the Seller agree the following:

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL3

	
Page 1/3

	
CT1001939

	  	
Private & Confidential

  

  

 

 

SIDE LETTER 3

 

	
  

	
***

	
2.

	
Assignment

	
  

	
Notwithstanding any other provision of this Side Letter, the AGTA or the Purchase Agreement, this Side Letter and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

 

	
3.

	
Confidentiality

	
  

	
This Side Letter (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL3

	
Page 2/3

	
CT1001939

	  	
Private & Confidential

  

  

  

 

 

SIDE LETTER 3

 

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Side Letter to the Seller.

 

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

Witnessed and acknowledged,

For and on behalf of

	
CHINA SOUTHERN AIRLINES GROUP

	
IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  	  
	
Title:

	  	  
	  	  
	
Signature:

	  	  

 

___________________________, 2010

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL3

	
Page 3/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

SIDE LETTER 4

CHINA SOUTHERN AIRLINES COMPANY LIMITED

& CHINA SOUTHERN AIRLINES GROUP IMPORT

AND EXPORT TRADING CORP., LTD.

Bai Yun Airport

Guangzhou 510405

People's Republic of China

Subject : ***

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Side Letter shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Side Letter, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Side Letter.

If there is any inconsistency between the Purchase Agreement and this Side Letter, the latter shall prevail to the extent of such inconsistency.

Now, with respect to the Aircraft, the Buyer and the Seller agree the following:

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL4

	
Page 1/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

 

SIDE LETTER 4

 

	
  

	
***

	
2.

	
Assignment

	
  

	
Notwithstanding any other provision of this Side Letter, the AGTA or the Purchase Agreement, this Side Letter and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

 

	
3.

	
Confidentiality

	
  

	
This Side Letter (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL4

	
Page 2/3

	
CT1001939

	  	
Private & Confidential 

 

  

  

 

SIDE LETTER 4

 

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Side Letter to the Seller.

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

Witnessed and acknowledged,

For and on behalf of

	
CHINA SOUTHERN AIRLINES GROUP

	
IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  	  
	
Title:

	  	  
	  	  
	
Signature:

	  	  

 

___________________________, 2010

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL4

	
Page 3/3

	
CT1001939

	  	
Private & Confidential

 

  

  

  

SIDE LETTER 5

CHINA SOUTHERN AIRLINES COMPANY LIMITED

& CHINA SOUTHERN AIRLINES GROUP IMPORT

AND EXPORT TRADING CORP., LTD.

Bai Yun Airport

Guangzhou 510405

People's Republic of China

Subject : ***

CHINA SOUTHERN AIRLINES COMPANY LIMITED (the "Buyer"), AIRBUS S.A.S. (the "Seller") and CHINA SOUTHERN AIRLINES GROUP IMPORT AND EXPORT TRADING CORP., LTD. (the "Consenting Party") have entered into an aircraft general terms agreement dated February 2nd, 2010 (the “AGTA”) and an A320 family aircraft purchase agreement (the "Purchase Agreement") dated as of even date herewith which cover the manufacture and the sale by the Seller and the purchase by the Buyer of the Aircraft.

Capitalized terms used herein and not otherwise defined in this Side Letter shall have the meanings assigned thereto in the AGTA or in the Purchase Agreement.

The Parties agree that this Side Letter, upon execution thereof, shall constitute an integral, nonseverable part of said Purchase Agreement and shall be governed by all its provisions, as such provisions have been specifically amended pursuant to this Side Letter.

If there is any inconsistency between the Purchase Agreement and this Side Letter, the latter shall prevail to the extent of such inconsistency.

 

Now, with respect to the Aircraft, the Buyer and the Seller agree the following:

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL5

	
Page 1/3

	
CT1001939

	  	
Private & Confidential

  

  

 

SIDE LETTER 5

	
  

	
***

	
2.

	
Assignment

	
  

	
Notwithstanding any other provision of this Side Letter, the AGTA or the Purchase Agreement, this Side Letter and the rights and obligations of the Buyer herein shall not be assigned or transferred in any manner, and any attempted assignment or transfer in contravention of the provisions of this Clause shall be void and of no force or effect.

 

	
3.

	
Confidentiality

	
  

	
This Side Letter (and its existence) shall be treated by the Parties as confidential and shall not be released (or revealed) in whole or in part to any third party without the prior consent of the other Parties. In particular, each Party agrees not to make any press release concerning the whole or any part of the contents and/or subject matter hereof or of any future addendum hereto without the prior consent of the other Parties.

 

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL5

	
Page 2/3

	
CT1001939

	  	
Private & Confidential

 

  

  

 

SIDE LETTER 5

 

If the foregoing correctly sets forth our understanding, please execute three (3) originals in the space provided below and return one (1) original of this Side Letter to the Seller.

	

Agreed and Accepted

	  	Agreed and Accepted  
	  	  	  
	For and on behalf of:  	  	For and on behalf of:  
	  	  	  
	
CHINA SOUTHERN AIRLINES

	  	
AIRBUS S.A.S.

	
COMPANY LIMITED

	  	  
	  	  	  	  
	
Name:

	  	  	
Name:

	  	  
	  	  	  	  
	
Title:

	  	  	
Title:

	  	  
	  	  	  	  
	
Signature:

	  	
  

	
Signature:

	  	  

Witnessed and acknowledged,

For and on behalf of

	
CHINA SOUTHERN AIRLINES GROUP

	
IMPORT AND EXPORT TRADING CORP., LTD.

	  
	
Name:

	  	  
	  	  
	
Title:

	  	  
	  	  
	
Signature:

	  	  

 

___________________________, 2010

   

	
***

	
 
This information is subject to confidential treatment and has been omitted and filed separately with the Commission.

	
PA A320 CSN 2010

	
SL5

	
Page 3/3

	
CT1001939

	  	
Private & ConfidentialUnassociated Document

* * * Indicates confidential material omitted pursuant to a request for confidential treatment and filed with the Securities and Exchange Commission separately with a request for confidential treament

 

Supplemental Agreement No. 1

 

to

 

Purchase Agreement No. 3323

 

between

 

THE BOEING COMPANY

 

and

 

XIAMEN AIRLINES

 

Relating to Boeing Model 737-85C Aircraft

 

THIS SUPPLEMENTAL AGREEMENT, entered into as of the 30 day of Sept, 2010, by and between THE BOEING COMPANY, (Boeing) and XIAMEN AIRLINES with its principal office in the city of Xiamen, Fujian Province, People's Republic of China (Buyer);

 

WITNESSETH:

 

WHEREAS, the parties hereto entered into Purchase Agreement No. 3323 dated April 18, 2008, relating to Boeing Model 737-85C aircraft (the Aircraft), which agreement, as amended, together with all exhibits and specifications attached thereto and made a part thereof, is hereinafter called the "Purchase Agreement;" and

 

WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to add ten (10) additional aircraft (Block C Aircraft), and

 

WHEREAS, The parties desire to further amend the Purchase Agreement as set forth herein in order to delete the existing Table 1. Aircraft Information Table, and replace it with Table 2 for Block A, Block B aircraft, and add Table 3 for Block C Aircraft, and

 

WHEREAS, The parties desire to further amend the Purchase Agreement as set forth herein in order to delete the existing Exhibit A, Aircraft Configuration, and replace it with a new Exhibit Al for Block A, Block B aircraft, and add the Exhibit A2 for Block C Aircraft, and

	
P.A. No. 3323

	
S.A. 1

	 

 

  

  

  

 

WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to delete the existing Supplemental Exhibit BFE1, BFE Variables and replace it with a new Supplemental Exhibit BFE1, BFE Variables, and

 

WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to add Letter Agreement 6-1165-LY-403, Special Matters, Block C Aircraft, and

 

WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to add Letter Agreement 6-1165-LY-404, Aircraft Performance Gurantees, Block C Aircraft, and

 

WHEREAS, the parties desire further to amend the Purchase Agreement as set forth herein in order to add Letter Agreement 6-1165-LY-405, Payment Matters, Block C Aircraft, and

 

WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to add Letter Agreement 6-1165-LY-407, Special Escalation Program, Block C Aircraft, and

 

NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties agree to amend the Purchase Agreement as follows:

 

	 	
1. 

	
Table of Contents.

 

The Table of Contents is deleted in its entirety and a new Table of Contents is inserted in lieu thereof.

 

	 	
2. 

	
Table 2, Block A, Block B Aircraft Delivery, Price and Advance Payments.

 

Table 1. Delivery, Price and Advance Payments is deleted in its entirely and Table 2 is inserted in lieu thereof.

 

	 	
3. 

	
Table 3, Block C Aircraft Delivery. Price and Advance Payments.

 

A new Table 3, Block C Aircraft, Delivery, Price and Advance Payments is added to the Purchase Agreement.

 

	 	
4. 

	
Exhibit A, Aircraft Configuration

 

Exhibit A, Aircraft Configuration, Block A & Block B aircraft is deleted in its entirety and a new Exhibit Al to include Boeing Sky Interior features is inserted in lieu thereof. Exhibit A2, Aircraft Configuration. Block C Aircraft is added to the Purchase Agreement

	
P.A. No. 3323

	
S.A. 1

	 

 

  

  

  

 

	 	
5. 

	
Supplemental Exhibit BFE1, BFE Variables.

 

Supplemental Exhibit BFE1, BFE Variables is deleted in its entirety and a new Supplemental Exhibit BFE1, BFE Variables is inserted in lieu thereof.

 

	 	
6. 

	
Letter Agreement 6-1165-LY-403, Special Matters, Block C Aircraft

 

Letter Agreement 6-1165-LY-403, Special Matters, Block C Aircraft, is added to the Purchase Agreement

 

	
  

	
7.

	
Letter Agreement 6-1165-LY-404, Aircraft Performance Gurantee, Block C Aircraft

 

Letter Agreement 6-1165-LY-404, Aircraft Performance Gurantee, Block C Aircraft, is added to the Purchase Agreement

 

	 	
8. 

	
Letter Agreement 6-1165-LY-405, Payment Matters, Block C Aircraft.

 

Letter Agreement 6-1165-LY-405, Payment Matters, Block C Aircraft, is added to the Purchase Agreement.

 

	 	
9. 

	
Letter Agreement 6-1165-LY-407, Special Escalation Program, Block C Aircraft.

 

Letter Agreement 6-1165-LY-407, Special Escalation Program, Block C Aircraft is added to the Purchase Agreement.

	
P.A. No. 3323

	
S.A. 1

	 

  

  

  

 

The Purchase Agreement shall be amended to the extent provided herein and, as so amended, shall continue in full force and effect.

 

EXECUTED as of the day and year first above written.

THE BOEING COMPANY

 

	
By

	 
	
Its 

	
Attorney-In-Fact

	 
	
XIAMEN AIRLINES

	  
	
By

	 
	
Its 

	
   

	
P.A. No. 3323

	
S.A. 1

	 

 

  

  

  

 

TABLE OF CONTENTS

 

	
 

	 	  	
SA

NUMBER

	
ARTICLES

	 	 	 
	 	 	 	 
	
1.

	 	
Quantity, Model and Description

	  
	 	 	 	 
	
2.

	 	
Delivery Schedule

	  
	 	 	 	 
	
3.

	 	
Price

	  
	 	 	 	 
	
4.

	 	
Payment

	  
	 	 	 	 
	
5.

	 	
Miscellaneous

	  
	 	 	 	 
	
TABLE

	 	  	  
	 	 	 	 
	
1.

	 	
Aircraft Information Deleted by

	
SA 1

	 	 	 	 
	
2.

	 	
Aircraft Information Table, Block A, Blcok B Aircraft

	
SA 1

	 	 	 	 
	
3.

	 	
Aircraft Information Table, Block C Aircraft

	
SA 1

	 	 	 	 
	
EXHIBIT

	 	  	  
	 	 	 	 
	
A.

	 	
Aircraft Configuration Deleted by

	
SA 1

	 	 	 	 
	
Al

	 	
Aircraft Configuration, Block A, B Aircraft

	
SA 1

	 	 	 	 
	
A2.

	 	
Aircraft Configuration, Block C Aircraft

	
SA 1

	 	 	 	 
	
B.

	 	
Aircraft Delivery Requirements and Responsibilities

	  
	  	 	  	  
	
SUPPLEMENTAL EXHIBITS

	 
	 	 
	
AE1.

	 	
Escalation Adjustment/Airframe and Optional Features

	  
	 	 	 	 
	
BFE1.

	 	
BFE Variables Deleted by

	
SA 1

	 	 	 	 
	
BEF

	 	
BEF Variables, Block A, Block and Block C Aircraft

	
SA 1

	 	 	 	 
	
CS1.

	 	
Customer Support Variables

	  
	 	 	 	 
	
EE1.

	 	
Engine Escalation/Engine Warranty and Patent Indemnity

	  

P.A. No. 3323

BOEING PROPRIETARY

 

  

  

  

 

	
SLP1.    Service Life Policy Components

	  
	 	 
	
LETTER AGREEMENTS

	  
	 	 	 	 
	
3323-01

	 	
737 Spare Parts Initial Provisioning

	  
	 	 	 	 
	
3323-02

	 	
Aircraft Model Substitution

	  
	 	 	 	 
	
3323-03

	 	
Boeing Purchase of Buyer Furnished Equipment

	  
	 	 	 	 
	
3323-04

	 	
Government Approval

	  
	 	 	 	 
	
3323-05

	 	
Loading of Customer Software

	  
	 	 	 	 
	
3323-06

	 	
Right to Purchase Additional Aircraft

	  
	 	 	 	 
	
3323-07

	 	
Seller Purchased Equipment

	  
	 	 	 	 
	
3323-08

	 	
Special Matters

	  
	 	 	 	 
	
6-1165-LY-403

	 	
Special Matters, Block C Aircraft

	
SA 1

	 	 	 	 
	
6-1165-CKR-1446

	 	
Liquidated Damages Non-Excusable Delay

	  
	 	 	 	 
	
6-1165-CKR-1447

	 	
Aircraft Performance Guarantees

	  
	 	 	 	 
	
6-1165-LY-404

	 	
Aircraft Performance Gurantees, Block C Aircraft

	
SA 1

	 	 	 	 
	
6-1165-CKR-1448

	 	
Promotional Support (Follow-on Aircraft)

	  
	 	 	 	 
	
6-1165-CKR-1449

	 	
Volume Agreement

	  
	 	 	 	 
	
6-1165-CKR-1450

	 	
Payment Matters

	  
	 	 	 	 
	
6-I165-LY-405

	 	
Payment Matters, Block C Aircraft

	
SA 1

	 	 	 	 
	
6-1165-CKR-1451

	 	
Shareholder Approval

	  
	 	 	 	 
	
6-1165-CKR-1452

	 	
Clarifications and Understandings

	  
	 	 	 	 
	
6-1165-CKR-1454

	 	
Special Escalation Program

	  
	 	 	 	 
	
6-1165-LY-407

	 	
Special Escalation Program, Block C Aircraft

	
SA 1

P.A. No. 3323

BOEING PROPRIETARY

 

  

  

  

 

Table 2 To

Purchase Agreement No. PA-03323

Aircraft Delivery, Description, Price and Advance Payment

(Block A, Block B Aircraft)

 

	
Airframe Model/MTOW:

	
737-800

	
171500 pounds

	
Detail Specification:

	
DO19A001X1A38P-TBD (BSI) (1/29/2010)

	
Engine Model/Thrust:

	
CFM56-7B24

	
24000 pounds

	
Airframe Price Base Year/Escalation Formula:

	
Jul-07

	
ECI-MFG/CPI

	
Airframe Price:

	***	
Engine Price Base Year/Escalation Formula:

	
N/A

	
N/A

	
Optional Features:

	***	  	  	  	  
	
Sub-Total of Airframe and Features:

	***	
Airframe Escalation Data:

	  	  	  
	
Engine Price (Per Aircraft):

	***	
Base Year Index (ECl):

	  	***	  
	
Aircraft Basic Price (Excluding BFE/SPE):

	***	
Base Year Index (CPI):

	  	***	  
	
Buyer Furnished Equipment (BFE) Estimate:

	***	  	  	  	  
	
Seller Purchased Equipment (SPE) Estimate:

	***	  	  	  	  
	 	 	 	 	 	 
	
Deposit per Aircraft:

	
$105,000

	  	  	  	  

 

	  	  	
Escalation

	  	  	
Escalation Estimate

	Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
	
Delivery

	
Number of

	
Factor

	  	  	
Adv Payment Base

	
At Signing

	
24 Mos.

	
21/18/12/9/6 Mos.

	
Total

	
Date

	
Aircraft

	
(Airframe)

	  	  	
Price Per A/P

	
1%

	
4%

	
5%

	
30%

	
Jan-2014

	  1	***	              	              	***	***	***	***	***
	
Apr-2014

	  1	***	  	  	***	***	***	***	***
	
May-2014

	  1	***	  	  	***	***	***	***	***
	
Jun-2014

	  1	***	  	  	***	***	***	***	***
	
Jul-2014

	  2	***	  	  	***	***	***	***	***
	
Aug-2014

	  1	 ***	  	  	***	***	***	***	***
	
Sep-2014

	  1	***	  	  	***	***	***	***	***
	
Oct-2014

	  1	***	  	  	***	***	***	***	***
	
Jan-2015

	  1	***	  	  	***	***	***	***	***
	
Mar-2015

	  1	***	  	  	***	***	***	***	***
	
May-2015

	  1	***	  	  	***	***	***	***	***
	
Jun-2015

	  1	***	  	  	***	***	***	***	***
	
Jul-2015

	  2	***	  	  	***	***	***	***	***

 

	
XIA-PA-03323 55021-1F.TXT

	
Boeing Proprietary

	
Page 1

 

  

  

  

 

Table 2 To

Purchase Agreement No. PA-03323

Aircraft Delivery, Description, Price and Advance Payment

(Block A, Block B Aircraft)

	  	  	
Escalation

	  	  	
Escalation Estimate

	Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
	
Delivery

	
Number of

	
Factor

	  	  	
Adv Payment Base

	
At Signing

	
24 Mos.

	
21/18/12/9/6 Mos.

	
Total

	
Date

	
Aircraft

	
(Airframe)

	  	  	
Price Per A/P

	
1%

	
4%

	
5%

	
30%

	
Aug-2015

	
2

	***	              	              	***	***	***	***	***
	
Sep-2015

	
1

	***	  	  	***	* * *	***	***	***
	
Oct-2015

	
2

	***	  	  	***	***	***	***	***
	
Total:

	
20

	  	  	  	  	  	  	  	  

 

	
XIA-PA-03323 55021-1F.TXT

	
Boeing Proprietary

	
Page 2

  

  

  

 

Table 3 To

Purchase Agreement No. PA-03323

Aircraft Delivery, Description, Price and Advance Payments

(Block C Aircraft)

 

	
Airframe Model/MTOW:

	
737-800

	
171500 pounds

	
Detail Specification:

	
XIA BSI SPEC TBD (1/29/2010)

	
Engine Model/Thrust:

	
CFM56-7B24

	
24000 pounds

	
Airframe Price Base Year/Escalation Formula:

	
  Jul-08

	
ECI-MFG/CPI

	
Airframe Price:

	      ***	
Engine Price Base Year/Escalation Formula:

	
  N/A

	
N/A

	
Optional Features:

	—  ***	  	  	  	  
	
Sub-Total of Airframe and Features:

	      *** 	
Airframe Escalation Data:

	  	  	  
	
Engine Price (Per Aircraft):

	      *** 	
Base Year Index (ECI):

	  	***	  
	
Aircraft Basic Price (Excluding BFE/SPE):

	
—  ***

	
Base Year Index (CPI):

	  	***	  
	
Buyer Furnished Equipment (BFE) Estimate:

	      *** 	  	  	  	  
	
Seller Purchased Equipment (SPE) Estimate:

	      *** 	  	  	  	  
	 	 	 	 	 	 
	
Deposit per Aircraft:

	
$110,000

	  	  	  	  

	  	  	
Escalation

	  	  	
Escalation Estimate

	
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

	
Delivery

	
Number of

	
Factor

	  	  	
Adv Payment Base

	
At Signing

	
24 Mos.

	
21/18/12/9/6 Mos.

	
Total

	
Date

	
Aircraft

	
(Airframe)

	  	  	
Price Per A/P

	
1%

	
4%

	
5%

	
30%

	
Jul-2015

	
1

	***	  	  	***	***	***	***	***
	
Aug-2015

	
1

	***	  	  	***	***	***	***	***
	
Sep-2015

	
2

	***	  	  	***	***	***	***	***
	
Oct-2015

	
1

	***	  	  	***	***	***	***	***
	
Dec-2015

	
1

	***	  	  	***	***	***	***	***
	
Jan-2016

	
4

	***	  	  	***	***	***	***	***
	
Total:

	
10

	  	  	  	  	  	  	  	  

 

	
XIA-PA-03323 55373-1F.TXT

	
Boeing Proprietary

	
Page 1

 

  

  

  

 

	
Exhibit Al_Block A, Block B Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:34 PM     

 

	
CR

	  	
***

Title

	  	
2007 $

Price

Per A/C

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 1

 

  

  

  

 

	
Exhibit A1_Block A, Block B Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:34 PM       

 

	
CR

	  	

***

Title

	  	
2007 $

Price

Per A/C

	  	
  

	  	
  

	  
	  	  	  	  	  
	  	  	  	  	  

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 2

 

  

  

  

	
Exhibit A1_Block A, Block B Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:34 PM      

 

	
CR

	  	

***

Title

	  	
2007 $

Price

Per A/C

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 3

 

  

  

  

	
Exhibit A1_Block A, Block B Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:34 PM       

 

	
CR

	  	

***

Title

	  	
2007 $

Price

Per A/C

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 4

 

  

  

  

	
Exhibit A1_Block A, Block B Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:34 PM       

 

	
CR

	  	

***

Title

	  	
2007 $

Price

Per A/C

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 5

 

  

  

  

	
Exhibit A2_Block C Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:36 PM      

 

	
CR

	  	

***

Title

	  	
2008 $

Price

Per A/C

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 1

 

  

  

  

	
Exhibit A2_Block C Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:36 PM       

 

	
CR

	  	

***

Title

	  	
2008 $

Price

Per A/C

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 2

 

  

  

  

	
Exhibit A2_Block C Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:36 PM       

 

	
CR

	  	

***

Title

	  	
2008 $

Price

Per A/C

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 3

 

  

  

  

	
Exhibit A2_Block C Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:36 PM       

 

	
CR

	  	

***

Title

	  	
2008 $

Price

Per A/C

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 4

 

  

  

  

	
Exhibit A2_Block C Aircraft

	
BOEING PROPRIETARY

	
9/6/2010-8:36 PM       

 

	
CR

	  	

***

Title

	  	
2008 $

Price

Per A/C

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

	
P.A. 3323 SA 1

	
BOEING PROPRIETARY

	
Page 5

 

  

  

  

 

BUYER FURNISHED EQUIPMENT VARIABLES

between

THE BOEING COMPANY

and

XIAMEN AIRLINES

Supplemental Exhibit BFE1 to Purchase Agreement Number 3323

	
P.A. No. 3323

	
BFE1-1

	
SA 1

	  	
BOEING PROPRIETARY

	  

 

  

  

  

BUYER FURNISHED EQUIPMENT VARIABLES

 

relating to

 

BOEING MODEL 737 AIRCRAFT

This Supplemental Exhibit BFE1 contains vendor selection dates, on-dock dates and other variables applicable to the Aircraft.

	
1.

	
Supplier Selection.

Customer will:

1.1           Select and notify Boeing of the suppliers and part numbers of the following BFE items by the following dates:

	
Galley System

	  	
January 2, 2013      

	  	  	  
	
Galley Inserts

	  	
January 2, 2013       

	  	  	  
	
Seats (passenger)

	  	
November 1, 2012  

	  	  	  
	
Overhead & Audio System

	  	
February 1, 2013    

	  	  	  
	
In-Seat Video System

	  	
November 1, 2012  

	  	  	  
	
Miscellaneous Emergency Equipment

	  	
February 1, 2013     

	  	  	  
	
Cargo Handling Systems

	  	
February 1, 2013     

	
P.A. No. 3323

	
BFE1-2

	
SA 1

	  	
BOEING PROPRIETARY

	  

 

  

  

  

	
2.

	
On-dock Dates

On or before April 2013, Boeing will provide to Customer a BFE Requirements On-Dock/Inventory Document (BFE Document) or an electronically transmitted BFE Report which may be periodically revised, setting forth the items, quantities, on-dock dates and shipping instructions relating to the in-sequence installation of BFE. For planning purposes, a preliminary BFE on-dock schedule is set forth below:

	
Item

	  	
Preliminary On-Dock Dates

	  	  	
[Month of Delivery]

	 	 	 	 	 
	  	  	
January 2014

	  	
April 2014

	  	  	
Aircraft

	  	
Aircraft

	
Seats

	  	
11/18/2013

	  	
2/21/2014

	
Galleys/Furnishings

	  	
11/4/2013

	  	
2/14/2014

	
Antenna and Mounting Equipment

	  	
9/20/2013

	  	
12/20/2013

	
Avionics

	  	
11/4/2013

	  	
2/14/2014

	
Cabin Systems Equipment

	  	
11/4/2013

	  	
2/14/2014

	
Miscellaneous Emergeny Equipment

	  	
11/4/2013

	  	
2/14/2014

	
Textiles/Raw Material

	  	
7/22/2013

	  	
10/23/2013

	
Cargo Systems

	  	
10/21//2013

	  	
1/28/2014

	
Provision Kits

	  	
6/24/2013

	  	
9/27/2013

	
Radomes

	  	
9/13/2013

	  	
12/13/2013

	
P.A. No. 3323

	
BFE1-3

	
SA 1

	  	
BOEING PROPRIETARY

	  

 

  

  

  

	
Item

	  	
Preliminary On-Dock Dates

	  	  	
[Month of Delivery]

	 	 	 	 	 
	  	  	
May 2014

Aircraft

	  	
June 2014

Aircraft

	
Seats

	  	
3/21/2014

	  	
4/22/2014

	
Galleys/Furnishings

	  	
3/14/2014

	  	
4/15/2014

	
Antenna and Mounting Equipment

	  	
1/21/2014

	  	
2/21/2014

	
Avionics

	  	
3/14/2014

	  	
4/15/2014

	
Cabin Systems Equipment

	  	
3/14/2014

	  	
4/15/2014

	
Miscellaneous Emergeny Equipment

	  	
3/14/2014

	  	
4/15/2014

	
Textiles/Raw Material

	  	
11/23/2013

	  	
1/9/2014

	
Cargo Systems

	  	
2/28/2014

	  	
4/2/2014

	
Provision Kits

	  	
10/28/2013

	  	
12/2/2013

	
Radomes

	  	
1/14/2014

	  	
3/14/2014

	
Item

	  	
Preliminary On-Dock Dates

	  	  	
[Month of Delivery]

	 	 	 	 	 
	  	  	
July 2014 (2)

Aircraft

	  	
August 2014

Aircraft

	
Seats

	  	
5/21/2014

	  	
6/20/2014

	
Galleys/Furnishings

	  	
5/14/2014

	  	
6/13/2014

	
Antenna and Mounting Equipment

	  	
3/21/2014

	  	
4/21/2014

	
Avionics

	  	
5/14/2014

	  	
6/13/2014

	
Cabin Systems Equipment

	  	
5/14/2014

	  	
6/13/2014

	
Miscellaneous Emergeny Equipment

	  	
5/14/2014

	  	
6/13/2014

	
Textiles/Raw Material

	  	
2/7/2014

	  	
3/10/2014

	
Cargo Systems

	  	
5/1/014

	  	
5/30/2014

	
Provision Kits

	  	
1/2/2014

	  	
1/30/2014

	
Radomes

	  	
4/14/2014

	  	
5/13/2014

	
P.A. No. 3323

	
BFE1-4

	
SA 1

	  	
BOEING PROPRIETARY

	  

 

  

  

  

 

	
Item

	  	
Preliminary On-Dock Dates

	  	  	
[Month of Delivery]

	 	 	 	 	 
	  	  	
September 2014

Aircraft

	  	
October 2014

Aircraft

	
Seats

	  	
7/23/2014

	  	
8/21/2014

	
Galleys/Furnishings

	  	
7/16/2014

	  	
8/14/2014

	
Antenna and Mounting Equipment

	  	
5/23/2014

	  	
6/20/2014

	
Avionics

	  	
7/16/2014

	  	
8/14/2014

	
Cabin Systems Equipment

	  	
7/16/2014

	  	
8/14/2014

	
Miscellaneous Emergeny Equipment

	  	
7/16/2014

	  	
8/14/2014

	
Textiles/Raw Material

	  	
4/9/2014

	  	
5/8/2014

	
Cargo Systems

	  	
7/2/2014

	  	
7/31/2014

	
Provision Kits

	  	
3/3/2014

	  	
3/31/2014

	
Radomes

	
  

	
6/16/2014

	  	
7/14/2014

	
Item

	  	
Preliminary On-Dock Dates

	  	  	
[Month of Delivery]

	 	 	 	 	 
	  	  	
January 2015

Aircraft

	  	
March 2015

Aircraft

	
Seats

	  	
11/18/2014

	  	
1/22/2015

	
Galleys/Furnishings

	  	
11/11/2014

	  	
1/15/2015

	
Antenna and Mounting Equipment

	  	
9/18/2014

	  	
11/23/2014

	
Avionics

	  	
11/11/2014

	  	
1/15/2015

	
Cabin Systems Equipment

	  	
11/11/2014

	  	
1/15/2015

	
Miscellaneous Emergeny Equipment

	  	
11/11/2014

	  	
1/15/2015

	
Textiles/Raw Material

	  	
8/4/2014

	  	
9/30/2014

	
Cargo Systems

	  	
10/28/2014

	  	
1/2/2015

	
Provision Kits

	  	
6/27/2014

	  	
9/2/2014

	
Radomes

	
  

	
9/11/2014

	
  

	
12/15/2014

	
P.A. No. 3323

	
BFE1-5

	
SA 1

	  	
BOEING PROPRIETARY

	  

 

  

  

  

	
Item

	  	
Preliminary On-Dock Dates

	  	  	
[Month of Delivery]

	 	 	 	 	 
	  	  	
May 2015

Aircraft

	  	
June 2015

Aircraft

	
Seats

	  	
3/20/2015

	  	
4/22/2015

	
Galleys/Furnishings

	  	
3/13/2015

	  	
4/15/2015

	
Antenna and Mounting Equipment

	  	
1/20/2015

	  	
2/23/2015

	
Avionics

	  	
3/13/2015

	  	
4/15/2015

	
Cabin Systems Equipment

	  	
3/13/2015

	  	
4/15/2015

	
Miscellaneous Emergeny Equipment

	  	
3/13/2015

	  	
4/15/2015

	
Textiles/Raw Material

	  	
11/21/2014

	  	
1/9/2015

	
Cargo Systems

	  	
2/27/2015

	  	
4/1/2015

	
Provision Kits

	  	
10/28/2014

	  	
12/1/2014

	
Radomes

	
  

	
1/14/2015

	  	
3/16/2015

	
Item

	  	
Preliminary On-Dock Dates

	  	  	
[Month of Delivery]

	 	 	 	 	 
	  	  	
July 2015 (3)

Aircraft

	  	
August 2015 (3)

Aircraft

	
Seats

	  	
5/20/2015

	  	
6/22/2015

	
Galleys/Furnishings

	  	
5/13/2015

	  	
6/15/2015

	
Antenna and Mounting Equipment

	  	
3/20/2015

	  	
4/15/2015

	
Avionics

	  	
5/13/2015

	  	
6/15/2015

	
Cabin Systems Equipment

	  	
5/13/2015

	  	
6/15/2015

	
Miscellaneous Emergeny Equipment

	  	
5/13/2015

	  	
6/15/2015

	
Textiles/Raw Material

	  	
2/6/2015

	  	
4/24/2015

	
Cargo Systems

	  	
4/29/2015

	  	
6/1/2015

	
Provision Kits

	  	
12/23/2014

	  	
2/2/2015

	
Radomes

	
  

	
4/13/2015

	  	
5/15/2015

	
P.A. No. 3323

	
BFE1-6

	
SA 1

	  	
BOEING PROPRIETARY

	  

 

  

  

  

	
Item

	  	
Preliminary On-Dock Dates

	  	  	
[Month of Delivery]

	 	 	 	 	 
	  	  	
September 2015 (3)

Aircraft

	  	
October 2015 (3)

Aircraft

	
Seats

	  	
7/23/2015

	  	
8/21/2015

	
Galleys/Furnishings

	  	
7/16/2015

	  	
8/14/2015

	
Antenna and Mounting Equipment

	  	
5/22/2105

	  	
6/22/2015

	
Avionics

	  	
7/16/2015

	  	
8/14/2015

	
Cabin Systems Equipment

	  	
7/16/2015

	  	
8/14/2015

	
Miscellaneous Emergeny Equipment

	  	
7/16/2015

	  	
8/14/2015

	
Textiles/Raw Material

	  	
4/9/2015

	  	
5/8/2015

	
Cargo Systems

	  	
7/2/2015

	  	
7/31/2015

	
Provision Kits

	  	
3/2/2015

	  	
3/31/2015

	
Radomes

	
  

	
6/16/2015

	  	
8/21/2015

	
Item

	  	
Preliminary On-Dock Dates

	  	  	
[Month of Delivery]

	 	 	 	 	 
	  	  	
December 2015

Aircraft

	  	
January 2016 (4)

Aircraft

	
Seats

	  	
10/22/2015

	  	
11/18/2015

	
Galleys/Furnishings

	  	
10/15/2015

	  	
11/11/2015

	
Antenna and Mounting Equipment

	  	
8/21/2015

	  	
9/18/2015

	
Avionics

	  	
10/15/2015

	  	
11/11/2015

	
Cabin Systems Equipment

	  	
10/15/2015

	  	
11/11/2015

	
Miscellaneous Emergeny Equipment

	  	
10/15/2015

	  	
11/11/2015

	
Textiles/Raw Material

	  	
7/10/2015

	  	
8/6/2015

	
Cargo Systems

	  	
10/1/2015

	  	
10/28/2105

	
Provision Kits

	  	
6/1/2015

	  	
6/29/2015

	
Radomes

	
  

	
9/15/2015

	  	
10/12/2015

	
P.A. No. 3323

	
BFE1-7

	
SA 1

	  	
BOEING PROPRIETARY

	  

 

  

  

  

Customer will be the “importer of record” (as defined by the U.S. Customs and Border Protection) for all BFE imported into the United States, and as such, it has the responsibility to ensure all of Customer’s BFE shipments comply with U.S. Customs Service regulations. In the event Customer requests Boeing, in writing, to act as importer of record for Customer’s BFE, and Boeing agrees to such request, Customer is responsible for ensuring Boeing can comply with all U.S. Customs Import Regulations by making certain that, at the time of shipment, all BFE shipments comply with the requirements in the “International Shipment Routing Instructions”, including the Customs Trade Partnership Against Terrorism (C-TPAT), as set out on the Boeing website referenced below. Customer agrees to include the International Shipment Routing Instructions, including C-TPAT requirements, in each contract between Customer and BFE supplier.

http://www.boeing.com/companyoffices/doingbiz/supplier_portal/index_general.html

 

	
P.A. No. 3323

	
BFE1-8

	
SA 1

	  	
BOEING PROPRIETARY

	  

 

  

  

  

	
 

	
The Boeing Company

P.O. Box 3707

Seattle, WA 93124-2207

 

6-1165-LY-403

 

Xiamen Airlines

22 Dailiao Road

Xiamen, 361006

Fujian Province

People’s Republic of China

	

	Subject:	
Special Matters

	 	 	 
	 	Reference:	
Purchase Agreement No. 3323 (the Purchase Agreement) between The Boeing Company (Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C Block C aircraft (Aircraft)

	 	 
	 	
This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

 

1.         Escalatable Dollar Credit Memoranda.    Boeing will provide the following credit memoranda at the time of delivery of each Aircraft. These credit memoranda are expressed in July 2008 base year dollars, and are subject to escalation in accordance with the applicable escalation provisions of the Purchase Agreement.

 

  1.1    Special Credit Memorandum.

           *** 

 

 

  1.2    Customer Support Credit Memorandum.

           ***

 

 

	 	
P.A. No. 3323

	  	
SA 1

	 	
Special_Matters

	  	  
	 	  	
BOEING PROPRIETARY

	  

  

  

  

 

	 	
Xiamen Airlines

6-1165-LY-403

Page 2

 

  1.3    Customer Loyalty Credit Memorandum.

	

	
                       

                       ***

 

 

	
 

	
2.         Assignment.     The Credit Memoranda described in this Letter Agreement are provided as a financial accommodation to Customer in consideration of Customer’s becoming the operator of the Aircraft, and cannot be assigned, in whole or in part, without the prior written consent of The Boeing Company.

 

3.         Confidential Treatment.    Customer understands that the commercial and financial information contained in this Letter Agreement is considered by Boeing as confidential. Customer agrees that it will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of Boeing, disclose this Letter Agreement or any information contained herein to any other person or entity except (a) as required by applicable law, governmental regulation or judicial process, (b) with the consent of Boeing, (c) to the counsel of providers of financing in connection with the Aircraft (each a "Finance Party"), (d) to bank examiners and auditors, (e) to any Finance Party or to any person with whom any Finance Party is in good faith conducting negotiations relating to the possible transfer and sale of such Finance Party's interest in the relevant Aircraft, if such entities described in (c), (d) and (e) shall have entered into an agreement similar to that contained in this clause whereby such entity agrees to hold such information confidential.

	 	
P.A. No. 3323

	  	
SA 1

	 	
Special_Matters

	  	  
	 	  	
BOEING PROPRIETARY

	  

  

 

  

 

	 	
Xiamen Airlines

6-1165-LY-403

Page 3

 

	 
	 	 	 
	 	
Very truly yours,

	 
	 	  	  	 
	 	
THE BOEING COMPANY

	 
	 	 	 

	 	By	 	 
	 	

 

 

Its

	
Attorney-In-Fact

	 

 

	 	ACCEPTED AND AGREED TO this	 
	 	 	 	 
	 	Date: Sept. 30, 2010	 
	 	  	  	 
	 	
XIAMEN AIRLINES

 

	 
	 	  	  	 
	 	
By

	  	 
	 	  	  	 
	 	
Its

	  	 

 

 

 

	 	
P.A. No. 3323

	  	
SA 1

	 	
Special_Matters

	  	  
	 	  	
BOEING PROPRIETARY

	  

 

  

 

  

 

	
 

	
The Boeing Company

P.O Box 3707

Seattle, WA 98124-2207

 

6-1165-LY-404

 

Xiamen Airlines

22 Dailiao Road

Xiamen, 361006

Fujian Province

People’s Republic of China

	

	Subject:	Aircraft Performance Guarantees
	 	 	 
	 	Reference:	Purchase Agreement No. 3323 (the Purchase Agreement) between The Boeing Company (Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C Block C aircraft (the Aircraft)
	 	 	 
	
 

	
This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

 

Boeing agrees to provide Customer with the performance guarantees in the Attachment These guarantees are exclusive and expire upon delivery of the Aircraft to Customer.

 

Boeing and Customer understand that certain information contained in this Letter Agreement is considered to be confidential. The parties agree that they will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of the other party, disclose this Letter Agreement or any information contained herein to any other person or entity except, (1) to those of their respective legal counsel, auditors, accountants, insurance brokers and other advisers who have a need to know the information for purposes of interpreting Customer's rights or interpreting or performing Customer's obligations under the Purchase Agreement, subject to such parties' written agreements that they will treat the information as confidential, (2) to a bank for the sole purpose of financing of the purchase of such Aircraft and subject to such bank's written agreement that it will treat the information as confidential, (3) as required by the rules of any stock market applicable to the parties on condition that the party wishing to make such disclosure shall first use reasonable efforts to seek relief from the risk of disclosure to competitors or others with whom either of the parties has business relations of information which might be detrimental to the interest of either of the parties, or (4) as may be required by applicable law.

	 	
P.A. No. 3323

	
SA 1

	 	
Aircraft_Performance_Guarantees_Block C Aircraft

	  
	 	  	
BOEING PROPRIETARY

	  

  

 

  

  

	 	
Xiamen Airlines

6-1165-LY-404

Page 2

	 
	 	
 

 

	 
	 	
Very truly yours,

	 
	 	  	  	 
	 	
THE BOEING COMPANY

 

 

	 

	 	By	 	 
	 	

 

Its

	
Attorney-In-Fact

	 

 

	 	ACCEPTED AND AGREED TO this	 
	 	Date: Sept. 30, 2010	 
	 	  	  	 
	 	XIAMEN AIRLINES	 
	 	  	  	 
	 	
By

	  	 
	 	  	  	 
	 	
Its

	  	 

 

 

 

	 	
P.A. No. 3323

	
SA 1

	 	
Aircraft_Performance_Guarantees_Block C Aircraft

	  
	 	  	
BOEING PROPRIETARY

	  

  

 

  

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 1

 

MODEL 737-800 WITH WINGLETS PERFORMANCE GUARANTEES

 

FOR XIAMEN AIRLINES

	
SECTION

	  	
CONTENTS

	 
	  	  	  	 
	
1

	  	
AIRCRAFT MODEL APPLICABILITY

	 
	  	  	  	 
	
2

	  	
FLIGHT PERFORMANCE

	 
	  	  	  	 
	
3

	  	
MANUFACTURER'S EMPTY WEIGHT

	 
	  	  	  	 
	
4

	  	
AIRCRAFT CONFIGURATION

	 
	  	  	  	 
	
5

	  	
GUARANTEE CONDITIONS

	 
	  	  	  	 
	
6

	  	
GUARANTEE COMPLIANCE

	 
	  	  	  	 
	
7

	
  

	
EXCLUSIVE GUARANTEES

	 

 

 

 

	
P.A. No. 3323

	  	  
	
AERO-B-BBA4-M10-0591

	  	
SS10-0338

	  	
BOEING PROPRIETARY

	  

  

 

  

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 2

	
1

	
AIRCRAFT MODEL APPLICABILITY

 

                        ***

 

	
2

	
FLIGHT PERFORMANCE

 

                        ***

 

	
2.1

	
Takeoff

 

                        ***

 

	
2.2

	
Landing

 

                        ***

 

	
2.3

	
Speed

 

                        ***

 

	
P.A. No. 3323

	  	  
	
AERO-B-BBA4-M10-0591

	  	
SS10-0338

	  	
BOEING PROPRIETARY

	  

  

 

  

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 3

 

	
2.4

	
Cruise Fuel Mileage

 

                        ***

 

	
2.5

	
Mission

 

                        ***

 

	
2.5.1

	
Mission Payload

 

                        ***

 

	
PA. No. 3323

	  	  
	
AERO-B-BBA4-M10-0591

	  	
SS10-0338

	  	
BOEING PROPRIETARY

	  

  

 

  

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 4

Climbout 

Maneuver:

 

 

Climb:

 

*** 

Cruise:

 

 

Descent:

 

 

Approach 

and Landing 

Maneuver:

 

 

 

	
P.A. No. 3323

	  	  
	
AERO-B-BBA4-M10-0591

	  	
SS10-0338

	  	
BOEING PROPRIETARY

	  

  

 

  

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 5

Fixed 

Allowances:                     ***

 

 

	
2.5.2

	
Manufacturer's Empty Weight Basis

 

The Manufacturer's Empty Weight (MEW) derived in Paragraph 2.5.3 is the basis for the mission guarantee of Paragraph 2.5.1.

 

 

 

	
P.A. No. 3323

	  	  
	
AERO-B-BBA4-M10-059l

	  	
SS10-0338

	  	
BOEING PROPRIETARY

	  

 

  

  

  

 

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 6

 

	
2.5.3 

	
737-800 Weight Summary - Xiamen Airlines

	  	
Pounds

	
Standard Model Specification MEW

	  
	
Configuration Specification D019A001, Rev. N

	  
	
Dated January 29, 2010

	  
	
175 Tourist Class Passengers

	  
	
CFM56-7 Engines

	  
	
Standard Capacity Steel Brakes

	  
	
156,000 Pounds (70,760 kg.) Maximum Taxi Weight

	  
	
6,875 U.S. Gallons (26,024 l.) Fuel Capacity

	  
	  	  
	
Changes for Xiamen Airlines

	  
	
Interior Change to 170 (8 FC/162 TC) Passengers*                                                                      ***

	  
	
(Ref: LOPA 377-2256 Revision B) (BSI interior)

	  
	
172,000 Pounds (78,017 kg.) Maximum Taxi Weight

	  
	
Audio Entertainment System

	  
	
Video Entertainment System

	  
	
Cargo Compartment Heavy Duty Linings and Panels (Fwd and Aft)

	  
	
Extended Operations (ETOPS)

	  
	
60 Minute Standby Power

	  
	
Centerline Overhead Stowage Compartments (3)

	  
	
Winglets

	  
	
Additional Change Requests Allowance (Incl. Dual HF / Triple VHF)

	  
	
  

 

	  
	
Xiamen Airlines Manufacturer's Empty Weight (MEW)

	  
	  	  
	
Standard and Operational Items Allowance

	  
	
(Paragraph 2.5.4)

	  
	  	  
	
Xiamen Airlines Operational Empty Weight (OEW)

	  

	  	  	
Quantity

	  	
Pounds

	  	
Pounds

	  	  	  	  	  	  	  
	
* Seat Weight Included:

	  	  	  	  	  	  
	  	  	  	  	***	  	  
	
First Class Doubles w/2 In-Arm Food Trays

	  	  	  	  	  	  
	
Tourist Class Triple

	  	  	  	  	  	  
	
Tourist Class Triple w/3 In-Arm Food Trays

	
  

	
  

	
  

	  	
  

	  

 

 

 

P.A. No. 3323

	
AERO-B-BBA4-M10-0591

	
SS10-0338

BOEING PROPRIETARY

 

  

  

  

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 7

 

	
2.5.4 

	
Standard and Operational Items Allowance

 

	  	  	
Quantity

	  	
Pounds

	  	
Pounds

	  	
Pounds

	 	 	 	 	 	 	 	 	 
	
Standard Items Allowance

	  	  	  	  	  	  	  	  
	 	 	 	 	 	 	 	 	 
	
Unusable Fuel

	  	  	  	  	  	  	  	  
	
Oil

	  	  	  	  	  	  	  	  
	
Oxygen Equipment

	  	  	  	  	  	  	  	  
	
Passenger Portable

	  	  	  	  	  	  	  	  
	
Crew Masks and Goggles

	  	  	  	  	  	  	  	  
	
Miscellaneous Equipment

	  	  	  	  	  	  	  	  
	
Crash Axe

	  	  	  	  	  	  	  	  
	
Megaphones

	  	  	  	  	  	  	  	  
	
Flashlights

	  	  	  	  	  	  	  	  
	
Smoke Hoods

	  	  	  	  	  	  	  	  
	
Galley Structure & Fixed Inserts

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
Operational Items Allowance

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
Crew and Crew Baggage

	  	  	  	***	  	  	  	  
	
Flight Crew

	  	  	  	  	  	  	  	  
	
Cabin Crew

	  	  	  	  	  	  	  	  
	
Navigation Bags & Manuals

	  	  	  	  	  	  	  	  
	
Catering Allowance & Removable Inserts

	  	  	  	  	  	  	  	  
	
First Class

	  	  	  	  	  	  	  	  
	
Tourist Class

	  	  	  	  	  	  	  	  
	
Crew

	  	  	  	  	  	  	  	  
	
Galley Carts: 2 Half Size and 8 Full Size

	  	  	  	  	  	  	  	  
	
Passenger Service Equipment

	  	  	  	  	  	  	  	  
	
Potable Water#60 USG

	  	  	  	  	  	  	  	  
	
Waste Tank Disinfectant

	  	  	  	  	  	  	  	  
	
Emergency Equipment

	  	  	  	  	  	  	  	  
	
Escape Slides - Forward

	  	  	  	  	  	  	  	  
	
Escape Slides - Aft

	  	  	  	  	  	  	  	  
	
Life Vests - Crew and Passengers

	  	  	  	  	  	  	  	  
	
Life Rafts

	  	  	  	  	  	  	  	  
	
Auto Radio Beacon (ELT)

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
Total Standard and Operational Items Allowance

	
  

	  	
  

	  	
  

	  	
  

	  

 

 

 

P.A. No. 3323

	
AERO-B-BBA4-M10-0591

	
SS10-0338

BOEING PROPRIETARY

 

  

  

  

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 8

 

	
3 

	
MANUFACTURER'S EMPTY WEIGHT

 

The Manufacturer's Empty Weight (MEW) is guaranteed not to exceed the value in Section 03-60-00 of Detail Specification D019A001XIA38P-2 plus one percent.

 

	
4 

	
AIRCRAFT CONFIGURATION

 

	
4.1

	
The guarantees contained in this Attachment are based on the Aircraft configuration as defined in the original release of Detail Specification D019A001XIA38P-2 (hereinafter referred to as the Detail Specification). Appropriate adjustment shall be made for changes in such Detail Specification approved by the Customer and Boeing or otherwise allowed by the Purchase Agreement which cause changes to the flight performance and/or weight and balance of the Aircraft. Such adjustment shall be accounted for by Boeing in its evidence of compliance with the guarantees.

 

	
4.2

	
The guarantee payload of Paragraph 2.5.1 will be adjusted by Boeing for the effect of the following on MEW and the Manufacturer's Empty Weight guarantee of Section 3 will be adjusted by Boeing for the following in its evidence of compliance with the guarantees:

 

(1)        Changes to the Detail Specification or any other changes mutually agreed upon between the Customer and Boeing or otherwise allowed by the Purchase Agreement.

 

(2)        The difference between the component weight allowances given in Appendix IV of the Detail Specification and the actual weights.

 

	
5 

	
GUARANTEE CONDITIONS

 

	
5.1

	
All guaranteed performance data are based on the International Standard Atmosphere (ISA) and specified variations therefrom; altitudes are pressure altitudes.

 

	
5.2

	
The Federal Aviation Administration (FAA) regulations referred to in this Attachment are, unless otherwise specified, the 737-800 Certification Basis regulations specified in the Type Certificate Data Sheet A16WE, Revision 41, dated July 31. 2007.

 

 

 

P.A. No. 3323

	
AERO-B-BBA4-M10-0591

	
SS10-0338

BOEING PROPRIETARY

 

  

  

  

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 9

 

	
5.3

	
In the event a change is made to any law, governmental regulation or requirement, or in the interpretation of any such law, governmental regulation or requirement that affects the certification basis for the Aircraft as described in Paragraph 5.2, and as a result thereof, a change is made to the configuration and/or the performance of the Aircraft in order to obtain certification, the guarantees set forth in this Attachment shall be appropriately modified to reflect any such change.

 

	
5.4

	
The takeoff and landing guarantees, and the takeoff portion of the mission guarantee are based on hard surface, level and dry runways with no wind or obstacles, no clearway or stopway, 225 mph tires, with Category C brakes and anti-skid operative, and with the Aircraft center of gravity at the most forward limit unless otherwise specified. The takeoff performance is based on no engine bleed for air conditioning or thermal anti-icing and the Auxiliary Power Unit (APU) turned off unless otherwise specified. The improved climb performance procedure will be used for takeoff as required. The landing performance is based on the use of automatic spoilers.

 

	
5.5

	
The speed and cruise fuel mileage guarantees, and the climb, cruise and descent portions of the mission guarantee include allowances for normal power extraction and engine bleed for normal operation of the air conditioning system. Normal electrical power extraction shall be defined as not less than a 50 kilowatts total electrical load. Normal operation of the air conditioning system shall be defined as pack switches in the "Auto" position, the temperature control switches in the "Auto" position that results in a nominal cabin temperature of 75°F, and all air conditioning systems operating normally. This operation allows a maximum cabin pressure differential of 8.35 pounds per square inch at higher altitudes, with a nominal Aircraft cabin ventilation rate of 3,300 cubic feet per minute including passenger cabin recirculation (nominal recirculation is 47 percent). The APU is turned off unless otherwise specified.

 

	
5.6

	
The speed and cruise fuel mileage guarantees, and the climb, cruise and descent portions of the mission guarantee are based on an Aircraft center of gravity location, as determined by Boeing, not to be aft of 26.2 percent of the mean aerodynamic chord.

 

	
5.7

	
Performance, where applicable, is based on a fuel Lower Heating Value (LHV) of 18,580 BTU per pound and a fuel density of 6.5 pounds per U.S. gallon.

 

 

 

P.A. No. 3323

	
AERO-B-BBA4-M10-0591

	
SS10-0338

BOEING PROPRIETARY

 

  

  

  

 

Attachment to Letter Agreement

No. 6-1165-LY-404

CFM56-7B24E Engines

Page 10

 

	
6 

	
GUARANTEE COMPLIANCE

 

	
6.1

	
Compliance with the guarantees of Sections 2 and 3 shall be based on the conditions specified in those sections, the Aircraft configuration of Section 4 and the guarantee conditions of Section 5.

 

	
6.2

	
Compliance with the takeoff and landing guarantees and the takeoff portion of the mission guarantee shall be based on the FAA approved Airplane Flight Manual for the Model 737-800.

 

	
6.3

	
Compliance with the speed and cruise fuel mileage guarantees, and the climb, cruise and descent portions of the mission guarantee shall be established by calculations based on flight test data obtained from an aircraft in a configuration similar to that defined by the Detail Specification.

 

	
6.4

	
The OEW used for compliance with the mission guarantee shall be the actual MEW plus the Standard and Operational Items Allowance in Paragraph 2.5.4.

 

	
6.5

	
Compliance with the Manufacturer's Empty Weight guarantee shall be based on information in the "Weight and Balance Control and Loading Manual - Aircraft Report."

 

	
6.6

	
The data derived from tests shall be adjusted as required by conventional methods of correction, interpolation or extrapolation in accordance with established engineering practices to show compliance with these guarantees.

 

	
6.7

	
Compliance shall be based on the performance of the airframe and engines in combination, and shall not be contingent on the engine meeting its manufacturer's performance specification.

 

	
7

	
EXCLUSIVE GUARANTEES

 

The only performance guarantees applicable to the Aircraft are those set forth in this Attachment.

 

 

P.A. No. 3323

	
AERO-B-BBA4-M10-0591

	
SS10-0338

BOEING PROPRIETARY

 

  

  

  

	
 

	

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

6-1165-LY-405

 

Xiamen Airlines

22 Dailiao Road

Xiamen, 361006

Fujian Province

People’s Republic of China

	

	Subject:	
Payment Matters

	 	 	 
	 	Reference:	

Purchase Agreement No. 3323 (the Purchase Agreement) between The Boeing Company (Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C Block C aircraft (Aircraft)

	 	 
	 	

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement shall have the same meaning as in the Purchase Agreement.

 

1.           Advance Payments for the Aircraft - Due on the Effective Date of the Purchase Agreement.

It is understood that Customer’s ability to make advance payments described in Article 4.2 of the Purchase Agreement may be impacted due to monetary issues, therefore Boeing agrees that all advance payments due on the effective date of the Purchase Agreement, as specified in Article 4.2, may be deferred without interest until ten business days after the effective date of the Purchase Agreement, by which time Customer will pay all advance payments specified in the Purchase Agreement as being due on or before that date.

2.           Other Scheduled Advance Payments.

As defined in Article 4 of the Purchase Agreement, advance payments are required for each Aircraft in the percentages and at the times shown in Table 3 of the Purchase Agreement. The remainder of the Aircraft purchase price is due at delivery of each Aircraft.

 

 

 

	  	  	
P.A. No. 3323

	
 

	
SA 1

	  	
  

	
Payment_Matters

	
  

	  

 BOEING PROPRIETARY

 

  

  

  

 

	 	

Xiamen Airlines

6-1165-LY-405

Page 2

	 	 
	 	

3.           Remedy for Non Payment of Advance Payments.

Should Customer fail to make any advance payments, which are due pursuant to the Purchase Agreement, then Customer would provide notice to Boeing in writing on or before the day that an advance payment is due that they will be unable to meet the payment due date and will have (20) days to provide a resolution that is acceptable to Boeing (Notification Period). If, after the Notification Period has passed, no mutually satisfactory resolution has been reached, and Customer is still in arrears on the payment, then Boeing reserves all its rights and remedies, under the Purchase Agreement, including but not limited to: (i) rescheduling of Aircraft; (ii) cessation of activities related to the build of such Aircraft; and (iii) any other remedies which may be available to Boeing. Boeing will provide Customer ten days advance notice of any such Aircraft rescheduling, and will not reschedule such Aircraft if advance payments on all Aircraft are current prior to the expiration of such ten day notification period.

	 	
4.           Effect of Aircraft Rescheduling.

	 	

If Boeing reschedules any Aircraft under the above provisions, then Customer and Boeing will complete a Supplemental Agreement to document the revised Aircraft delivery schedules within thirty (30) days after the ten day advance notice is given. Boeing agrees that all advance payments due on the effective date of the Supplemental Agreement may be deferred (without interest or penalty fees) ten business days, by which time Customer will pay all advance payments specified in the Supplemental Agreement as being due on or before that date.

5.            Confidential Treatment.

The information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties. Customer will limit the disclosure of its contents to employees of Customer with a need to know the contents for purposes of helping Customer perform its obligations under the Purchase Agreement and who understand they are not to disclose its contents to any other person or entity without the prior written consent of Boeing.

 

 

 

	  	  	
P.A. No. 3323

	
 

	
SA 1

	  	
  

	
Payment_Matters

	
  

	  

BOEING PROPRIETARY

 

  

  

  

 

	  	
Xiamen Airlines

6-1165-LY-405

Page 3

	  	  
	  	
Very truly yours,

	  	
THE BOEING COMPANY

 

	 	By	 	 
	  	

 

Its

	
Attorney-In-Fact

	  

	  	
ACCEPTED AND AGREED TO this

	  	  
	  	
Date: Sept. 30, 2010

	  	  
	  	
XIAMEN AIRLINES

	  	  
	  	
By

	  	  
	  	  	  	  
	  	
Its

	  	  

 

 

 

	  	  	
P.A. No. 3323

	
 

	
SA 1

	  	
  

	
Payment_Matters

	
  

	  

BOEING PROPRIETARY

  

  

  

 

	  	
The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

	  	
6-1165-LY-407

 

Xiamen Airlines

22 Dailiao Road

Xiamen, 361006

Fujian Province

People’s Republic of China

	  	
Subject:

	
Special Escalation Program

	 	 	 
	  	
Reference:

	
Purchase Agreement No. 3323 (the Purchase Agreement) between The Boeing Company (Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C Block C aircraft (the Aircraft)

	  	
This Letter Agreement amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

 

1.            Aircraft Applicability.

 

The terms of this Letter Agreement are applicable only to the firm Aircraft included in Table 3 of the Purchase Agreement at the time of signing, that have scheduled Delivery Dates during the time period through July 2016 (the Included Aircraft).

 

2.            Airframe Price Adjustment.

               ***

 

 

 

	  	  	
P.A. No. 3323

	
 

	
SA 1

	  	
  

	

Special_Escalation_Program_Block C Aircraft

	
  

	  

BOEING PROPRIETARY

  

  

  

 

	  	
Xiamen Airlines

6-1165-LY-407

Page 2

 

3.            Special Escalation Program Factor.

 

The Escalation Factor established in paragraph 2 above will be compared with the Special Escalation Program Factor for the corresponding delivery month and year set forth on Attachment 1 hereto.

 

	  	
3.1           If the Escalation Factor established in paragraph 2 is less than, or equal to, the Special Escalation Program Factor set forth on Attachment 1, such Escalation Factor shall be utilized to determine the final Aircraft Price at time of delivery.

 

	  	

3.2           If the Escalation Factor established in paragraph 2 is greater than the Special Escalation Program Factor set forth on Attachment 1, the Special Escalation Program Factor shall be utilized to determine the final Aircraft Price at time of delivery.

 

4.            Credit Memoranda.

 

All credit memoranda for the Included Aircraft that are defined in the Purchase Agreement as being escalated to delivery will be escalated in accordance with the above terms.

 

5.            Advance Payment Base Price.

 

The Advance Payment Base Price for each Included Aircraft will be calculated pursuant to ARTICLE 3.2 of the Purchase Agreement.

 

6.            Aircraft Not Included.

 

Aircraft that deliver after the time period set forth in Paragraph 1. above (the Not Included Aircraft) shall be escalated in accordance with the methodology set forth in Paragraph 2. above, using actual escalation, except that the starting point shall be from the July 2016 escalation factor, utilizing either the Escalation Factor or the Special Escalation Program Factor, that was actually employed pursuant to Paragraph 3. above. As such, the Not Included Aircraft will benefit from the Special Escalation Program as set forth above until July 2016. Escalation subsequent to that time will be in accordance with the standard escalation provisions of Supplemental Exhibit AE1 of the Purchase Agreement.

 

 

 

	  	  	
P.A. No. 3323

	
 

	
SA 1

	  	
  

	

Special_Escalation_Program_Block C Aircraft

	
  

	  

BOEING PROPRIETARY

 

  

  

  

 

	
  

 

	
Xiamen Airlines

6-1165-LY-407

Page 3

 

7.           Confidential Treatment.

 

Customer understands that the commercial and financial information contained in this Letter Agreement is considered by Boeing as confidential. Customer agrees that it will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of Boeing, disclose this Letter Agreement or any information contained herein to any other person or entity except (a) as required by applicable Law, governmental regulation or judicial process, (b) with the consent of Boeing, (c) to the counsel of providers of financing in connection with the Aircraft (each a "Finance Party"), (d) to bank examiners and auditors, (e) to any Finance Party or to any Person with whom any Finance Party is in good faith conducting negotiations relating to the possible transfer and sale of such Finance Party's interest in the relevant Aircraft, if such entities described in (c), (d) and (e) shall have entered into an agreement similar to that contained in this Clause whereby such entity agrees to hold such information confidential.

 

 

 

	  	  	
P.A. No. 3323

	
 

	
SA 1

	  	
  

	

Special_Escalation_Program_Block C Aircraft

	
  

	  

BOEING PROPRIETARY

 

  

  

  

 

	  	
Xiamen Airlines

6-1165-LY-407

Page 4

	  	
  

 

	  	
Very truly yours,

	  	  
	  	
THE BOEING COMPANY

	 	By	 	 
	  	
 

Its

	
Attorney-In-Fact

	  

	  	
ACCEPTED AND AGREED TO this

	  	  
	  	
Date: Sept. 30, 2010

	  	  
	  	
XIAMEN AIRLINES

	  	  
	  	
By

	  	  
	  	  	  
	  	
Its

	  	  

 

 

 

	  	  	
P.A. No. 3323

	
 

	
SA 1

	  	
  

	

Special_Escalation_Program_Block C Aircraft

	
  

	  

BOEING PROPRIETARY

 

  

  

  

 

Attachment 1 to

6-1165-LY-407

SPECIAL ESCALATION PROGRAM FACTORS

Included Aircraft with scheduled Delivery Dates:

	
Calendar Year

	
Jan

	
Feb

	
Mar

	
Apr

	
May

	
Jun

	
Jul

	
Aug

	
Sep

	
Oct

	
Nov

	
Dec

	
2015

	***	***	***	***	***	***	***	***	***	***	***	***
	
2016

	***	***	***	***	***	***	***	***	***	***	***	***

 

 

 

Note:

 

 

	
P.A. No. 3323

	
SA 1

	
Special_Escalation_Program_Block C Aircraft

	  
	
BOEING PROPRIETARY

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]