Document:

EX-10.5

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as [*****]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

Exhibit 10.05 
 IAE PROPRIETARY INFORMATION 
 FLEET HOUR AGREEMENT 

between 

CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN, S.A. DE C.V. 

and 

IAE INTERNATIONAL AERO ENGINES AG 

  
 Page 1 of 37

 IAE PROPRIETARY INFORMATION 
  
 Table of Contents 

 

							
	 1.
	 	 Definitions
	  	 	3	  
	 2.
	 	 FHA Services
	  	 	7	  
	 3.
	 	 Period of Cover
	  	 	7	  
	 4.
	 	 Shop Visit Coverage
	  	 	8	  
	 5.
	 	 Lease Engine Support
	  	 	9	  
	 6.
	 	 Transportation
	  	 	10	  
	 7.
	 	 General Fleet Hour Agreement Services
	  	 	10	  
	 8.
	 	 Excess Work
	  	 	10	  
	 9.
	 	 Obligations of Vuela
	  	 	12	  
	 10.
	 	 FHA Rates and Payment
	  	 	14	  
	 11.
	 	 Escalation Protection
	  	 	18	  
	 12.
	 	 Warranties
	  	 	18	  
	 13.
	 	 Delays
	  	 	19	  
	 14.
	 	 Duplicate Benefits
	  	 	19	  
	 15.
	 	 Intellectual Property
	  	 	20	  
	 16.
	 	 Amendment
	  	 	21	  
	 17.
	 	 Assignment
	  	 	21	  
	 18.
	 	 Exhibits
	  	 	21	  
	 19.
	 	 Headings
	  	 	21	  
	 20.
	 	 Notices
	  	 	21	  
	 21.
	 	 Exclusion of Other Provisions and Previous Understandings
	  	 	21	  
	 22.
	 	 Termination, Expiration and Events of Default
	  	 	22	  
	 23.
	 	 Negation of Waiver
	  	 	23	  
	 24.
	 	 Severability And Partial Invalidity
	  	 	23	  
	 25.
	 	 Governing Law
	  	 	23	  
	 26.
	 	 Limitation of Liability
	  	 	24	  
	 27.
	 	 Publicity
	  	 	24	  
	 28.
	 	 Confidentiality
	  	 	24	  
	 29.
	 	 Records and Audit
	  	 	24	  
		
	 Exhibit A Eligible Engine List
	  	 	26	  
		
	 Exhibit B IAE FHA Escalation Formula
	  	 	27	  
		
	 Exhibit C Accessories
	  	 	28	  
		
	 Exhibit D Powerplant – Description
	  	 	30	  
		
	 Exhibit E Addresses
	  	 	33	  
		
	 Exhibit F IAE Engine Monitoring Services
	  	 	36	  
		
	 Exhibit G Excess Work Labor and Fee Rates
	  	 	37	  
		
	 Exhibit H FHA Rate Adjustment
	  	 	38	  

  
 Page 2 of 37

 IAE PROPRIETARY INFORMATION 

 

 Fleet Hour Agreement 

THIS FLEET HOUR AGREEMENT (the “Agreement”) is made this          day of
         June 2007, between 
  

			
	IAE INTERNATIONAL AERO ENGINES AG	 	A joint stock company organized and existing under the laws of Switzerland, with a place of business at 400 Main Street, M/S 121-10, East Hartford, Connecticut 06108, USA,
(hereinafter called “IAE”).
	AND	 	
		
	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN, S.A. DE C.V.	 	A corporation organized and existing under the laws of Mexico with a place of business at Av. Prolongación Reforma # 490 Primer Piso, Colonia Lomas Santa Fe,
Delegación Álvaro Obregón, México, Distrito Federal, C.P. 01210 Mexico (hereinafter called “Vuela”).
		 	

 (IAE and VUELA may be referred to herein collectively as the “Parties”, or individually as a
“Party”.) 
 WHEREAS: 
  

	A.	Vuela is acquiring from Airbus ***** new firm A319 aircraft powered by new V2527M-A5 engines and up to *****new option V2500 powered A320 family aircraft, and is
purchasing from IAE ***** new V2527M-A5 firm spare engines as well as any additional option V2500-A5 spare engines necessary to support option aircraft acquired by Vuela; 

 

	B.	Vuela and IAE have entered a General Terms Agreement, of even date herewith, for the sale of the spare V2527M-A5 engines and the supply of certain support services and
parts for V2527M-A5 engines; and 

  

	C.	IAE and Vuela now wish to agree upon terms whereby IAE shall arrange for, manage and subcontract certain maintenance of Vuela’s Eligible Engines (as hereinafter
defined). 

 NOW THEREFORE IT IS AGREED AS FOLLOWS: 

 

	1.	Definitions 

  

	 	1.1	“Accessory” or “Accessories” includes those items listed in Exhibit C to this Agreement originally installed on the Eligible
Engines or acquired new and dedicated solely for the support of Eligible engines. 

  

	 	1.2	“Airbus” shall mean Airbus Industrie SAS. 

  

	 	1.3	“Aircraft” shall mean all or each of 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 3 of 37 

 IAE PROPRIETARY INFORMATION 

 

	 	1.3.1	The ***** Airbus A319 Firm Aircraft to be delivered in accordance with the schedule set forth in Exhibit B of the Support Contract, as such delivery schedule may
be amended from time to time; 

  

	 	1.3.2	Up to ***** new V2500-A5 powered Airbus A320 family aircraft which Vuela may acquire in addition to the Aircraft identified in Clauses 1.3.1 above.

  

	 	1.4	“Aircraft Maintenance Manual” or “AMM” means the aircraft maintenance manual published by Airbus for the Aircraft.

  

	 	1.5	“Airworthiness Directive” shall mean any applicable airworthiness directive issued by the Aviation Authority based on certification rules current as of
the date of this Agreement. 

  

	 	1.6	“Aviation Authority” shall mean the United States Federal Aviation Administration. 

 

	 	1.7	“Beyond Economic Repair” shall mean wear, tear or damage to an item of Eligible Engine that is beyond economic repair. 

 

	 	1.8	“BFE Item” shall mean those buyer furnished equipment items listed as such in Exhibit D of this Agreement. 

 

	 	1.9	“Business Day(s)” shall mean a Day other than a Saturday, Sunday or holiday scheduled by law for commercial banking institutions in the City of New
York, New York, United States. 

  

	 	1.10	“Day” means a calendar day. 

  

	 	1.11	“DGAC” shall mean the Dirección General de Aeronáutica Civil of Mexico. 

 

	 	1.12	“EBU Item” shall mean those engine build up items listed as such in Exhibit D to this Agreement originally installed on the Eligible Engines or
acquired new and dedicated solely for the support of Eligible Engines. 

  

	 	1.13	“Eligible Engine(s)” shall mean (a) the new Engines operated by Vuela originally installed on the Aircraft, (b) the Spare Engines, and
(c) any other Engines mutually agreed by the parties and listed in Exhibit A, in each case so long as such Engine is operated by Vuela. Exhibit A to this Agreement identifies the Eligible Engines as of the date hereof by serial
number, and will be updated by the Parties from time to time to identify Eligible Engines by serial number as Vuela takes delivery of the Aircraft and the Spare Engines (or as the parties agree to cover other Engines under this Agreement).

  

	 	1.14	“Eligible Engine Flight Cycles” shall mean, for each Eligible Engine, the number of times the wheels of an Aircraft on which the Eligible Engine is
installed leaves the ground on take-off during regularly scheduled revenue service. 

  

	 	1.15	“Eligible Engine Flight Hours” shall mean, for each Eligible Engine, the sum total of each hour or part thereof (fractions thereof measured to two
decimal places) elapsing from the moment the wheels of an Aircraft on which the Eligible Engine is installed leave the ground on take-off to the moment when the wheels of such Aircraft touch the ground on landing. 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 4 of 37 

 IAE PROPRIETARY INFORMATION 
  
  

	 	1.16	“Eligible Removal” shall mean the necessary removal of an Eligible Engine from an Aircraft during the Period of Cover following all reasonable and
appropriate line maintenance actions and troubleshooting in accordance with the AMM and the FHA Manager’s recommendations, where such removal is due to (i) exceedance of AMM limits for continued operation as mutually agreed by Vuela and
the FHA Manager to be necessary (such agreement not to be unreasonably withheld); (ii) Life Limited Parts time expiry, provided the last Shop Visit for the Eligible Engine was performed by IAE during the Period of Cover; or (iii) the
written recommendation of the FHA Manager. 

  

	 	1.17	“Engine(s)” shall mean the basic IAE V2500-A5 turbofan engine, described in the V2500 Turbofan Engine Model Specifications set forth in Exhibit A
of the Support Contract, and which excludes Accessories, EBU Items and QEC Items. 

  

	 	1.18	“Engine Manual” shall mean the IAE document which sets forth the requirements for Engine off-wing repair. 

 

	 	1.19	“Excess Work” shall mean work undertaken by the Maintenance Center during a Shop Visit pursuant to this Agreement that is not covered by the FHA Rates,
as further described in Clause 0 of this Agreement. 

  

	 	1.20	“Failure” shall mean the breakage or malfunction of a Part (or Parts) rendering the Engine unserviceable and incapable of continued operation
without corrective action which is not as a result of misuse, neglect, accident, maintenance error, or improper maintenance activities by any party other than IAE or the Maintenance Center. 

 

	 	1.21	“FHA” shall mean this Fleet Hour Agreement. 

  

	 	1.22	“FHA Manager” shall mean the manager provided by IAE for the support of the operation of this Agreement in accordance with the provisions of
Clause 7 of this Agreement. 

  

	 	1.23	“FHA Rate(s)” shall mean the rate(s) collectively as set forth in Clause 10.1 below. 

 

	 	1.24	“Foreign Object Damage” shall mean damage to an Eligible Engine caused by the non-negligent ingestion of birds, hailstones or Runway Debris only.

  

	 	1.25	“Life Limited Parts” or “LLPs” shall mean the Parts identified in Chapter 5 of the V2500-A5 Engine Manual as having specific life
limits. 

  

	 	1.26	“Maintenance Center” shall mean the IAE shareholder maintenance center(s) designated by IAE and agreed by Vuela (such agreement not to be unreasonably
withheld, conditioned, or delayed) from time to time to perform services under this Agreement and which is approved by the Aviation Authority as a certified repair station. 

  
 Page 5 of 37

 IAE PROPRIETARY INFORMATION 

 

	 	1.27	“Maintenance Management Plan” or “MMP” shall mean the then-current V2500 engine maintenance planning documents described in Clause 7
of this Agreement, as customized for Vuela. 

  

	 	1.28	“Miscellaneous Shop Visit” shall mean any visit of an Eligible Engine to the Maintenance Center(s) following an Eligible Removal resulting from Failure
of a Part in an Eligible Engine or any other unplanned cause and which does not result in a Restoration Shop Visit being undertaken. 

  

	 	1.29	“Part(s)” shall mean Engine part(s) provided under this Agreement and delivered by IAE to Vuela as original equipment in an Eligible Engine, or Engine
spare parts sold to Vuela by IAE or Engine spare parts delivered to the designated Maintenance Center in support of Eligible Engines, excluding Accessories, EBU Items and QEC Items. 

 

	 	1.30	“Period of Cover” shall mean the applicable period for which IAE agrees to provide the services for each Eligible Engine pursuant to this Agreement, as
set forth in Clause 3 of this Agreement. 

  

	 	1.31	“QEC Item” shall mean those items listed as such in Exhibit D to this Agreement originally installed on the Eligible Engines or acquired new and
dedicated solely for the support of Eligible Engines. 

  

	 	1.32	“Restoration Shop Visit” shall mean any visit of an Eligible Engine to the Maintenance Center(s) following an Eligible Removal to accomplish Engine
performance restoration sufficient to make the Eligible Engine serviceable in accordance with the then current revision of the MMP for the relevant Engine (or any successor to such MMP), IAE technical publications, Airworthiness Directives, and
other IAE and Airworthiness Authority approved maintenance procedures, and which, as a minimum, includes a Level 3 refurbishment of the combustor and high pressure turbine. 

 

	 	1.33	“Runway Debris” shall mean any stones, gravel, or other small organic objects commonly found on properly maintained commercial airport runways.

  

	 	1.34	“Service Bulletin(s)” shall mean those IAE target V2500-A5 service bulletins (excluding service bulletins for Accessories) as indicated in the MMP for
Vuela, including service bulletins with a compliance code ***** which provide reliability and maintenance cost improvements; 

  

	 	1.35	“Shop Visit” shall mean either a Restoration Shop Visit or a Miscellaneous Shop Visit, as applicable. 

 

	 	1.36	“Spare Engine(s)” shall mean all or each of the new V2500-A5 Engines currently identified as Spare Engines in the Support Contract and either purchased
or to be purchased by Vuela from IAE and to be delivered in accordance with the schedule set forth in Exhibit B of the Support Contract, as such delivery schedule may be amended from time to time in accordance with the Support Contract.

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 6 of 37 

 IAE PROPRIETARY INFORMATION 
  
  

	 	1.37	“Support Contract” shall mean the V2500 General Terms Agreement, between IAE and Vuela dated of even date herewith, including all side letters and
amendments thereto. 

  

	 	1.38	“Taxes” shall mean imposts, taxes, duties, levies, fees, assessments or other like charges imposed by any government entity or taxing authority.

  

	 	1.39	“Testable Engine” shall mean an Eligible Engine with Accessories (including without limitation the Pneumatic Starter, ATA Code 80-13-41, and the
Pneumatic Starter Valve, ATA Code 80-13-51) installed so as to enable the Engine to be tested either prior to or following its repair without the need for making use of units provided by the Maintenance Center, as further described in the applicable
Engine Manual. 

  

	 	1.40	“Vuela Affiliates” shall mean any subsidiaries or other affiliates of Vuela that are either wholly-owned or otherwise controlled by Vuela or its
shareholders. 

  

	 	1.41	“Workscope” shall mean an IAE written repair request to the Maintenance Center(s) compliant with the MMP that authorizes the Maintenance Center(s) to
undertake work on Eligible Engines. 

  

	2.	FHA Services 

 IAE
shall provide to Vuela the following FHA service coverage for the Period of Cover for each Eligible Engine: 
  

	 	2.1	Engine Shop Visit Coverage in accordance with the terms of Clause 4; 

  

	 	2.2	Lease Engine Coverage in accordance with the terms of Clause 5; 

  

	 	2.3	General FHA Services in accordance with the terms of Clause 7; and 

  

	 	2.4	Excess Work as required in accordance with the terms of Clause 0. 

 The provision of such coverage by IAE is subject to Vuela not being in material breach (beyond any applicable grace period) of its obligations under Clause 9. 

 

	3.	Period of Cover 

  

	 	3.1	FHA coverage and payment as set forth in this FHA will begin for each Eligible Engine as of the date of each Engine’s initial entry into service and will remain in
force and effect for each Eligible Engine as follows: 

  

	 	3.1.1	For fifty percent (50%) of the Eligible Engines, until the expiration of ten (10) years after delivery of each such Eligible Engine (“Period of
Cover A”); and 

  

	 	3.1.2	For each of the remaining fifty percent (50%) of the Eligible Engines, until the later of (a) the expiration of ten (10) years after delivery of each
such Eligible Engine; and (b) completion of two (2) Restoration Shop Visits for each such Eligible Engine (“Period of Cover B”). 

  
 Page 7 of 37

 IAE PROPRIETARY INFORMATION 
  
  

	 	3.2	Vuela shall have the option to elect which Period of Cover is applicable for each Eligible Engine within the constraints listed above by providing written notice to the
IAE FHA Manager of its election for each Eligible Engine by no later than the date of induction for the first Restoration Shop Visit of each such Engine. For each Eligible Engine for which Vuela has not provided notice of its election prior to such
Engine’s first Restoration Shop Visit, the applicable Period of Cover shall be Period of Cover A. 

  

	 	3.3	In the event that after the Period of Cover for an Eligible Engine has been determined in accordance with 3.2 above, Vuela sells or otherwise transfers such Engine to a
lessor or financier as part of a sale and leaseback or similar financing arrangement, then Vuela at its election may request in writing that such Eligible Engine be reallocated from Period of Cover A to Period of Cover B (or vice versa). Following
IAE’s receipt of Vuela’s request, the Parties will mutually evaluate whether some or all of the Eligible Engines can be reallocated between the two Period of Cover options to accommodate Vuela’s change in financing while at the same
time maintaining (a) the Period of Cover balance set forth in Clause 3.1 and (b) the economic effects of the previous allocation. If the Parties determine that such reallocation can be accomplished within the criteria set forth in the
preceding sentence, the Parties will amend Exhibit A to this Agreement to reflect the agreed-upon reallocation. 

  

	 	3.4	The Parties agree to amend Exhibit A to this Agreement from time to time to accurately reflect the Period of Cover applicable for each Eligible Engine, as
determined in accordance with this Clause 3. 

  

	4.	Shop Visit Coverage 

Following an Eligible Removal, the affected Eligible Engine shall be forwarded to the Maintenance Center. IAE shall provide Vuela with the
proposed Workscope as early as possible (but in no event less than 3 days) prior to induction for a Shop Visit. IAE shall reasonably consider any modifications or additions to the Workscope proposed by Vuela and shall incorporate into such
Workscope all such modifications or additions which are required to be made in accordance with the MMP and this Agreement. Notwithstanding the foregoing, the parties acknowledge that IAE shall have the ultimate control of the Workscope. IAE shall
communicate the Workscope to the Maintenance Center and cause the Maintenance Center to complete the Shop Visit and provide Shop Visit reports with respect thereto in a timely manner. IAE shall pay to the Maintenance Center all charges directly
incurred in respect of goods, work and services carried out during the Shop Visit, excluding charges for Excess Work (if such charges have been invoiced directly to Vuela), including for the following items: 

 

	 	4.1	Labor, new and used material, handling fees and charges, vendor fees, and test cell fees (including fuel and oil consumed at test) required to:

  

	 	4.1.1	perform Engine reconditioning and repair in accordance with the Workscope to make the Eligible Engine serviceable to the specifications established in accordance with
the then current customized MMP for Vuela, IAE technical publications, Airworthiness Directives and other IAE or FAA approved maintenance procedures. 

  
 Page 8 of 37

 IAE PROPRIETARY INFORMATION 

 

	 	4.1.2	perform required Eligible Engine testing and retesting required by the Maintenance Center; 

 

	 	4.1.3	inspect, repair or replace Parts as required by Airworthiness Directives; 

  

	 	4.1.4	incorporate Service Bulletins ***** in accordance with the customized MMP; 

 

	 	4.1.5	Remove, repair or replace LLPs, except as provided in Clause 8.1.16 below; 

 

	 	4.1.6	provide Shop Visit documentation as follows: 

  

	 	(a)	serviceability tag FAA Form 8130-3 or -4, as applicable, and FAA Form 337; 

 

	 	(b)	a shop findings report on the services accomplished, including a report stating any damage detected and repairs accomplished; 

 

	 	(c)	a list of all Service Bulletins and Airworthiness Directives incorporated; 

 

	 	(d)	a list of all LLPs with associated times and cycles since new; 

  

	 	(e)	test cell performance data; 

  

	 	(f)	a list of Accessories by serial number. 

  

	 	4.2	IAE’s obligations for an Eligible Engine Shop Visit caused by Foreign Object Damage shall be limited to the provision of repair work and Parts provided through the
Maintenance Center to a maximum of ***** per event and such liability shall only be incurred to the extent that the damage is uninsured or not covered by insurance for failure to have met any deductible. 

 

	5.	Lease Engine Support 

 ***** 
  

	 	5.2	IAE’s obligation to provide such V2500-A5 lease Engine to Vuela is contingent on Vuela being in compliance with its obligations under Clause 9 and Vuela
demonstrating the availability of reasonably sufficient Spare Engines, Accessories, components and Parts to maintain proper support of the Eligible Engines. 

 

	 	5.3	Unless otherwise agreed in writing by the FHA Manager, Vuela shall ship to IAE any lease Engines furnished pursuant to 5.1 above within the earlier of the thirty
(30) days (as extended if applicable) as described above, or five (5) days after a Vuela Engine becomes available for installation at Vuela’s facilities. 

 

	 	5.4	Should Vuela require a spare Engine to support a shop visit not covered by this Agreement or that does not otherwise meet the above conditions, all terms of the STOBL
then in effect between IAE and Vuela, including all applicable rates, charges and fees, shall apply. 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 9 of 37 

 IAE PROPRIETARY INFORMATION 

 

	6.	Transportation 

  

	 	6.1	Following an Eligible Removal, Vuela shall deliver the affected Eligible Engines to the Maintenance Center in a Testable Engine configuration, with all Accessories
attached and in a serviceable condition. 

  

	 	6.2	Vuela shall be responsible for transportation of Eligible Engines to the applicable Maintenance Center, and the return of such Engines from the Maintenance Center,
including risk of loss or damage during such transportation. 

  

	7.	General Fleet Hour Agreement Services 

 IAE shall provide the following additional services: 
  

	 	7.1	A customized MMP for the Eligible Engines will be produced for Vuela by IAE in consultation with Vuela, taking into account the specifics of the operation of the
Aircraft and Eligible Engines. The MMP shall be determined in good faith and on a nondiscriminatory basis by IAE, and approved by Vuela (such approval not to be unreasonably withheld or delayed). The MMP shall establish maintenance requirements
including LLP management, incorporation of applicable Service Bulletins and Aviation Authority Airworthiness Directive requirements and Eligible Engine removal planning. 

 

	 	7.2	Engine monitoring data program services set forth in Exhibit E; 

  

	 	7.3	The following FHA Engine management and maintenance planning services (which shall normally be undertaken by the FHA Manager): 

 

	 	7.3.1	overall FHA program coordination; 

***** 
  

	8.	Excess Work 

  

	 	8.1	If a Maintenance Center charges Vuela or IAE for Excess Work, such charges shall be paid for by Vuela directly to the Maintenance Center or, if the Maintenance Center
has invoiced IAE for such charges, to IAE in accordance with Clause 10.3 of this Agreement. “Excess Work” shall mean any labor, material and other charges for Eligible Engines that arise from the following: 

 

	 	8.1.1	repairs for inflight and/or ground accident damage, except Foreign Object Damage to the extent of IAE’s responsibility under Clause 4.2; 

 

	 	8.1.2	Service Bulletins requested by Vuela which are not required in accordance with the MMP; 

 

	 	8.1.3	Maintenance of any items other than Eligible Engines; 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 10 of 37 

 IAE PROPRIETARY INFORMATION 

 

	 	8.1.4	Line Maintenance requirements, except if performed at a Shop Visit in accordance with the requirements of the MMP; 

 

	 	8.1.5	Incremental shop visits or additional work that was not required to be performed in accordance with the requirements of the MMP and was requested and authorized by
Vuela in order to enable it to meet any lease return conditions; 

  

	 	8.1.6	Misuse, neglect, accident or maintenance error or improper maintenance activity by any party other than IAE or the Maintenance Center; 

 

	 	8.1.7	The removal and replacement of non-IAE approved part(s) or repaired part(s) and damage caused by such part(s); 

 

	 	8.1.8	Occurrences outside the course of Vuela’s normal business activities as a civil commercial airline, such occurrences including, but not limited to, acts of God,
use by government agencies and services, acts of war, rebellion, seizure, terrorism, riots or other belligerent acts; 

  

	 	8.1.9	Exceedance of Engine operating limits published by IAE; 

  

	 	8.1.10	Work required to repair damage resulting from Engine operation in an abrasive or corrosive environment, excluding normal operations (for example ingestion of volcanic
ash, fire extinguishing chemicals, or desiccants, etc.). ***** 

  

	 	8.1.11	Delivery to the Maintenance Center with missing or non-serviceable Parts or Accessories, requiring the use of units provided by the Maintenance Center to permit the
testing of the Eligible Engine following its refurbishment; 

  

	 	8.1.12	Delivery to the Maintenance Center with Parts or Accessories which require re-certification; 

 

	 	8.1.13	The exchanging of QEC Items or EBU Items between installed Engines and Spare Engines or the provisioning of such QEC Items or EBU Items; 

 

	 	8.1.14	Work requested by Vuela which is not covered by the terms of this Agreement; 

 

	 	8.1.15	Charges associated with placing an Eligible Engine into a Testable Engine configuration, unless the Eligible Engine was delivered by Vuela to the Maintenance Center in
a Testable Engine configuration; 

  

	 	8.1.16	Charges for material and handling associated with replacing Life Limited Parts due to time expiry or MMP build requirements; 

  
 ***** Confidential portions
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 IAE PROPRIETARY INFORMATION 

 

	 	8.1.17	Inspection, repair, or replacement of Accessories, QEC Items, EBU Items, or BFE Items, and provisioning, restocking, and availability of such items; or

  

	 	8.1.18	Charges associated with IAE’s provision to Vuela of any accident and disassembly reports and pictures or “dirty fingerprint” records that may be
reasonably requested by Vuela from time to time. 

  

	 	8.2	In addition to the above, at the discretion of IAE, “Excess Work” may mean any labor, material and other charges for Eligible Engines that arise from the
failure of Vuela to undertake any of its obligations as set out in Clause 9 below. IAE shall provide ***** days’ notice that such failure shall result in Excess Work, during which time, Vuela may rectify such failure.

  

	 	8.3	In the event IAE determines that the Workscope for a Shop Visit of an Eligible Engine will consist entirely of Excess Work, then the FHA Manager shall so notify Vuela
and obtain Vuela’s written authorization to proceed prior to the commencement of such work. 

  

	9.	Obligations of Vuela 

 Vuela agrees to fulfill, or to cause the Vuela Affiliates that operate or maintain the Aircraft and Engines to fulfill, the following responsibilities and perform the following tasks and to reasonably
cooperate with IAE in the performance of IAE’s responsibilities hereunder. 
  

	 	9.1	Data and Procedures 

Vuela shall at its own expense maintain Eligible Engine electronic condition monitoring capabilities for each Eligible Engine, and with
respect to information and data required for the performance of this Agreement, Vuela shall: 
  

	 	9.1.1	maintain, collect and provide to IAE performance trend monitoring data on each Eligible Engine in accordance with Exhibit E, maintain timely records in form and
detail sufficient for the accurate and expeditious administration of the terms of this Agreement including the assessment of operating conditions relative to those set out in Clause 10.5 of this Agreement; 

 

	 	9.1.2	make available, and provide access to IAE’s provider of electronic condition monitoring data analysis, all data collected in accordance with 9.1.1 above in an
electronic format agreed to by IAE, as required for the operation and administration of this Agreement; 

  

	 	9.1.3	implement and follow the IAE recommendations resulting from analysis of the performance trend monitoring data; 

 

	 	9.1.4	within ***** Days after the end of each month during the Period of Cover, report to IAE, in an electronic format agreed to by IAE, the hours and cycles flown, take off
derate, and temperature (ISA+X° C) for each flight by each Eligible Engine during the preceding month; 

  
 ***** Confidential portions
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 IAE PROPRIETARY INFORMATION 
  
  

	 	9.1.5	ensure that all data that is available to Vuela and requested by IAE to facilitate the correction and/or diagnosis of any problem causing an Eligible Engine Removal is
promptly made available to IAE; 

  

	 	9.1.6	ensure that each Eligible Engine delivered to the Maintenance Center is accompanied by a record of Eligible Engine total time and cycles, date of Eligible Engine
removal, and reason for removal; 

  

	 	9.1.7	upon written request from IAE, confirm the serial numbers of Eligible Engines installed on the Aircraft; and 

 

	 	9.1.8	after Eligible Removals, ship Eligible Engines to the applicable Maintenance Center in a Testable Engine configuration. 

 

	 	9.2	Engine Preparation for Transportation 

 For the purposes of the transportation of Eligible Engines as required under this Agreement, Vuela shall: 
  

	 	9.2.1	unless otherwise mutually agreed in writing, make Eligible Engines available for shipment as soon as practicable following Eligible Removal, but in any event Vuela
shall deliver Eligible Engines to the Maintenance Center prior to the scheduled induction date for each Eligible Engine Shop Visit; 

  

	 	9.2.2	maintain in a serviceable condition one (1) IAE approved transportation stand per spare Engine plus one (1) additional serviceable IAE approved transportation
stand; and 

  

	 	9.2.3	at the time of an Eligible Removal, remove the Eligible Engine from the Aircraft, mount it on an IAE approved transportation stand and prepare such Eligible Engine for
shipment, all in accordance with the procedures specified in the applicable IAE manuals. 

  

	 	9.3	Operation, Maintenance and Troubleshooting of Eligible Engines 

 Vuela shall operate, maintain and troubleshoot the Eligible Engines consistent with standard industry practice in accordance with the applicable Airbus operating, maintenance and troubleshooting manuals,
the then current MMP for Vuela, and IAE’s written recommendations and instructions (including, but not limited to, service information letters, all operator wires and non-modification service bulletins, component maintenance manuals and
Airworthiness Directives), provided that such recommendations and instructions are (i) reasonable with reference to industry standards, and (ii) apply generally to and are applied generally (on a non-discriminatory basis) to V2500-A5
engines and operators operating under similar conditions. Vuela shall incorporate the relevant provisions of the MMP into its then current airworthiness maintenance program. 

  
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 IAE PROPRIETARY INFORMATION 

 

	 	9.4	Administration 

 Vuela
shall cooperate with IAE to fulfill any reasonable administrative or other requirements of the Maintenance Center, including endorsement of Workscopes for Aviation Authority and DGAC requirements. Vuela shall accomplish quality audits and obtain
certifications required by the Aviation Authority, the DGAC, and the Maintenance Center for accomplishment of work on the Eligible Engines at the Maintenance Center(s). 

 

	 	9.5	One Time Concessions 

Vuela shall not unreasonably withhold its approval of any IAE proposed utilization of on-wing or off-wing “One Time
Concessions” on Eligible Engines. 
  

	 	9.6	Payment 

 Vuela shall
make payments as required in accordance with Clause 10 of this Agreement. 
  

	 	9.7	Records and Audit 

 Vuela
shall comply with the provisions of Clause 29 of this Agreement. 
  

	10.	FHA Rates and Payment 

  

	 	10.1	FHA Rates 

  

	 	10.1.1	The FHA Rate per Eligible Engine Flight Hour for Restoration Shop Visit Coverage during the Period of Cover for Eligible Engines on A319 and A320 Aircraft shall be as
follows: 

  

							
	 Engine/Derate
	 	 At RSV 1
	 	 At RSV 2
	 	 At RSV 3

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

 The FHA Rate per Eligible Engine Flight Hour for Restoration Shop Visit Coverage during the Period of
Cover for Eligible Engines on A321 Aircraft shall be as follows: 
  

							
	 Engine/Derate
	 	 At RSV 1
	 	 At RSV 2
	 	 At RSV 3

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

 IAE shall invoice Vuela at induction of the Eligible Engine into the Maintenance Center for a
Restoration Shop Visit, an amount equal to the above applicable FHA Rate (escalated in accordance with Clause 10.2) multiplied by the Eligible Engine Flight Hours flown by such 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 14 of 37 

 IAE PROPRIETARY INFORMATION 

 

	 	
Eligible Engine since new or if the Eligible Engine has had a prior Restoration Shop Visit, since its last Restoration Shop Visit. The above FHA Rates are subject to adjustment in accordance with
the provisions of Exhibit G to the extent applicable. 

  

	 	10.1.2	The FHA Rate for Miscellaneous Shop Visit Coverage shall be ***** per Eligible Engine Flight Hour during the Period of Cover. IAE shall invoice Vuela on a monthly basis
in an amount equal to the FHA Rate for Miscellaneous Shop Visit Coverage (escalated in accordance with Clause 10.2) multiplied by the Eligible Engine Flight Hours flown in the previous month by Eligible Engines within their respective Periods of
Cover; ***** 

  

	 	10.2	All FHA Rates in Clause 10.1 shall be paid in accordance with Clause 10.6.1 below, and are subject to escalation from the base month of January 2004 to the
date of calculation of the applicable FHA Rate invoice in accordance with the formula set forth in Exhibit B. 

  

	 	10.3	Excess Work Rates 

  

	 	10.3.1	Charges for Excess Work shall be invoiced to Vuela by IAE in accordance with the rates identified in Exhibit F. However, where prior to the applicable Shop Visit
Vuela notifies IAE that it has contracted Excess Work rates directly with the applicable Maintenance Center, IAE will consent to the Maintenance Center’s directly invoicing Vuela for such Excess Work charges, provided that such Maintenance
Center agrees not to charge IAE for such Excess Work. 

  

	 	10.3.2	IAE may invoice Vuela its reasonable estimate of the cost of any Excess Work prior to commencement, or during the execution, of such Excess Work. IAE shall invoice
Vuela for the balance of the cost of any Excess Work upon receipt of the corresponding invoice from the Maintenance Center (or either promptly credit Vuela’s account with IAE or, upon the parties’ mutual agreement, refund by electronic
transfer to Vuela, the amount of any excess payment received from Vuela). 

  

	 	10.4	Payment for Additional or Loss of LLP Life 

 Where IAE provides a replacement LLP (the “Replacement LLP”) as a result of damage to an LLP (the “Damaged LLP”) and the Replacement LLP is provided pursuant to the
coverage provided for under the terms of this Agreement, then either (a) Vuela shall pay to IAE the amount by which the value of the Replacement LLP exceeds the value of the Damaged LLP; or (b) IAE shall pay to Vuela the amount by which
the value of the Damaged LLP exceeds the value of the Replacement LLP, in each case as determined in accordance with the following formula: 

***** 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 15 of 37 

 IAE PROPRIETARY INFORMATION 

 

 Where: 

 

					
	*****	  	=	  	*****
	*****	  	=	  	*****
	*****	  	=	  	*****
	*****	  	=	  	*****
	*****	  	=	  	*****

 Upon completion of any Shop Visit at which IAE has provided a Replacement LLP, payment of the amount
determined in accordance with the above formula shall be due (i) to IAE from Vuela in the event the calculation above results in a positive amount or (ii) to Vuela from IAE in the event the calculation above results in a negative amount.
Vuela shall pay all invoices submitted by IAE pursuant to this Clause 10.4 in accordance with Clause 10.6.1. IAE will credit Vuela’ account with IAE with any amount due to Vuela from IAE under this Clause 10.4. Such credits may be used by Vuela
toward the payment of FHA invoices from IAE, or for other goods and services provided by IAE. 
  

	 	10.5	General Conditions 

 The
FHA Rates are predicated upon Vuela: 
  

	 	10.5.1	maintaining within its fleet of Aircraft an annual average flight cycle length of ***** hours per cycle (calculated from the moment the wheels of an Aircraft, on which
any Eligible Engine is installed, leave the ground on take-off to the moment when the wheels of such Aircraft touch the ground on landing); 

  

	 	10.5.2	maintaining an average engine thrust derate of ***** relative to the V2527M-A5 thrust rating, ***** relative to the V2524-A5 thrust rating, or ***** relative to the
V2522-A5 thrust rating, as applicable; 

  

	 	10.5.3	maintaining an average ambient temperature for take-off no greater than ISA + ***** 

 

	 	10.5.4	taking delivery of all of the Aircraft and Spare Engines in accordance with the schedule set forth in Exhibit B of the Support Contract, as such delivery schedule
may be amended from time to time in accordance with the Support Contract. 

 IAE may make adjustments to the FHA
Rates in accordance with Exhibit G if there is a change in any of the operational parameters set forth in Clauses 10.5.1 through 10.5.3. 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 16 of 37 

 IAE PROPRIETARY INFORMATION 

 

	 	10.6	Payment 

  

	 	10.6.1	Except as otherwise provided for herein, Vuela shall pay invoices submitted by IAE within ***** Days after submission. 

 

	 	10.6.2	Vuela undertakes that IAE shall receive the full amount of payments falling due under this Clause 10, without any withholding or deduction whatsoever.

  

	 	10.6.3	All payments under this Clause 10 shall be made by electronic transfer and shall be deposited not later than the due date of payment with: 

Bank of America 
 1185 Avenue of Americas 
 New York, NY 10038-4924 

***** 
 or to
such other account as IAE may from time to time designate in writing, which designation shall be effective upon receipt by Vuela of such notice. 
  

	 	10.6.4	Should Vuela fail to make any payment to IAE required as set forth in this Clause 10, then, notwithstanding any rights which IAE may have in contract or in law, IAE
reserves the right to assess interest on such late payment at the rate of ***** of the outstanding amount per month from the date the payment was due to be made until the date such payment is received by IAE. 

 

	 	10.7	Taxes and Other Like Charges 

 In addition to amounts stated to be payable by Vuela pursuant to this Agreement, Vuela shall pay: 
  

	 	10.7.1	any and all Taxes (excluding (i) any income, gains, or excess profit, franchise and similar Taxes imposed, levied, or assessed on, or otherwise payable by, IAE or
the Maintenance Center; and (ii) any Taxes which would not have been imposed but for IAE’s failure to comply with applicable regulations or filing requirements (collectively, the “Excluded Taxes”) arising from IAE’s
and the Maintenance Center’s performance under this Agreement; and 

  

	 	10.7.2	Taxes other than Excluded Taxes payable by IAE in connection with or pursuant to contracts for goods, work and/or services with Maintenance Center for or in connection
with Eligible Engines. 

 If either IAE or Vuela becomes aware of any Taxes for which the other Party is
responsible, the relevant party will promptly notify the other party, and both parties agree to consult in good faith and take such other reasonable steps in order to mitigate payment and/or the amount of such Taxes. 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 17 of 37 

 IAE PROPRIETARY INFORMATION 

 

 All amounts stated to be payable by Vuela pursuant to this Agreement exclude any value
added tax, sales tax or taxes on turnover. In the event that the supply of goods or services under this Agreement is chargeable to any value added tax, sales tax or taxes on turnover such tax will be borne by Vuela, subject to the receipt of any
appropriate documentation that may be required to enable or assist Vuela to claim or verify any tax credit, exemption, set off, rebate or refund in respect of such Taxes paid or payable in connection with this Agreement. IAE shall give due
consideration to whether any Parts provided by IAE to Vuela are exempt from Taxes under any applicable law. 
  

	11.	Escalation Protection 

 Except as otherwise noted to the contrary, for the period beginning January 1, 2006 and ending January 1, 2012 (the “Cap Period”), IAE agrees to cap escalation of all credits,
FHA Rates, and other items escalated in accordance with the formula in Exhibit B (“Base Amounts”) at a cumulative rate of *****, compounding annually, provided that for any year in which escalation exceeds ***** over the
previous year, such escalation exceedance above 6.5% shall be shared ***** by IAE and ***** by Vuela, as follows: 
 *****

  

	12.	Warranties 

  

	 	12.1	If IAE fails to comply with its obligations set out in this Agreement, IAE shall, as its sole responsibility for such failure, undertake, at its sole cost and expense,
all work necessary to achieve such obligations. 

  

	 	12.2	IAE shall warrant Excess Work to Vuela as follows: IAE will repair any Eligible Engines in which any defect in the Excess Work performed by the Maintenance Center or in
any Parts incorporated by the Maintenance Center becomes evident, in each case within three thousand (3,000) flight hours or within eighteen (18) months after installation on an Aircraft or, if not installed on an Aircraft, within
twenty-four (24) months after delivery of the Eligible Engine from the applicable Shop Visit, whichever occurs first. Transportation charges for the return of defectively serviced goods to IAE or the Maintenance Center, and their reshipment to
Vuela and risk of loss thereof shall be borne by IAE only if such goods are returned in accordance with reasonable written shipping instructions from IAE. 

  

	 	12.3	IAE warrants to Vuela that that title to Parts or components thereof installed on an Eligible Engine by a Maintenance Center shall pass to the owner of such Eligible
Engine free and clear of all security interests and rights of IAE, the Maintenance Center, or others upon installation. IAE’s liability and Vuela’s remedy under this warranty are limited to the removal of any title defect or, at the
election of IAE, to the replacement of the new Parts or components thereof which are defective in title; provided, however, that the rights and remedies of the Parties with respect to patent infringement shall be limited to the provisions of Clause
15 of this Agreement. 

  

	 	12.4	 Vuela warrants that title to Parts or components thereof removed from an Eligible Engine by a Maintenance Center shall pass to IAE free and clear of
all security 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 18 of 37 

 IAE PROPRIETARY INFORMATION 
  

	 	
interests and rights of Vuela or others at the time that title to the replacement Part passes to Vuela. Vuela’s liability and IAE’s remedy under this warranty are limited to the
removal of any title defect or, at the election of Vuela, to the replacement of the Parts or components thereof which are defective in title. 

  

	 	12.5	THE FOREGOING WARRANTIES TOGETHER WITH THE EXPRESS REMEDIES PROVIDED TO VUELA IN ACCORDANCE WITH THIS AGREEMENT ARE EXCLUSIVE AND ARE GIVEN AND ACCEPTED IN LIEU OF
(I) ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE; AND (II) ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN CONTRACT,
TORT OR STRICT LIABILITY AGAINST IAE OR ITS SHAREHOLDERS, WHETHER OR NOT ARISING FROM THE NEGLIGENCE, ACTUAL OR IMPUTED, OF IAE OR ITS SHAREHOLDERS. THE REMEDIES OF VUELA SHALL BE LIMITED TO THOSE PROVIDED HEREIN TO THE EXCLUSION OF ANY AND ALL
OTHER REMEDIES INCLUDING, WITHOUT LIMITATION, INCIDENTAL OR CONSEQUENTIAL DAMAGES. NO AGREEMENT VARYING OR EXTENDING THE FOREGOING WARRANTIES, REMEDIES OR THIS LIMITATION SHALL BE BINDING UPON IAE UNLESS IN WRITING, SIGNED BY A DULY AUTHORIZED
OFFICER OF IAE. 

  

	13.	Delays 

  

	 	13.1	Excusable Delays 

 IAE
shall not be charged with any liability for delay in the performance of any of its obligations when such delay is caused by acts of God or the public enemy, compliance in good faith with any applicable foreign or domestic governmental regulation or
order whether or not it proves to be invalid, fires, riots, labor disputes, unusually severe weather, delays of suppliers as a result of any of the aforementioned reasons, or any cause beyond the reasonable control of IAE. To the extent that such
causes actually delay performance on the part of IAE, the time for the performance shall be extended for as many days as are required to obtain removal of such causes. This provision shall not, however, relieve IAE from using commercially
reasonable efforts to avoid or remove such causes, perform obligations not prevented by such causes, or continue performance with reasonable dispatch whenever such causes are removed. 

 

	 	13.2	Non-Excusable Delay 

 If
IAE delays the delivery of an Eligible Engine from a Shop Visit beyond the time for delivery specified in the Workscope (as such time may be extended pursuant to the provisions of this Agreement) for any reason other than those specified in Clause
13.1 above, IAE’s obligations shall be as set forth in Clause 5. 
  

	14.	Duplicate Benefits 

Vuela and IAE agree that it is not the intention to provide duplicate benefits under the terms of this Agreement and the Support Contract
or under any other arrangement between IAE or IAE’s suppliers or Airbus and Vuela. In the event of any such 

  
 Page 19 of 37

 IAE PROPRIETARY INFORMATION 
  
 
duplication of benefits, Vuela may, at the relevant time in respect of the relevant circumstances, opt to receive any one such benefit to the exclusion of all other duplicate benefits.

  

	15.	Intellectual Property 

  

	 	15.1	IAE shall conduct, at its own expense, the entire defense of any claim, suit or action brought against Vuela alleging that the use or resale by Vuela or any subsequent
purchaser or user of the Parts furnished by IAE or a Maintenance Center hereunder infringes any United States patent or any patent of any other country that is a signatory to Article 27 of the Convention of International Aviation signed by the
United States at Chicago on December 7, 1944, in which Vuela is authorized to operate. 

  

	 	15.2	Vuela shall provide prompt written notice to IAE of such claim, suit or action and shall provide IAE with full opportunity and authority to assume the sole defense
thereof, including settlement and appeals, and all information available to Vuela or subsequent purchaser or user for such defense. 

  

	 	15.3	Provided that such Parts have been made according to a specification or design furnished by IAE or, if a process patent is involved, the process performed with such
Parts if recommended in writing by IAE, IAE shall, at its own expense, either settle said claim, suit or action or shall pay all damages awarded by the court thereon, and, if the use or resale of such Parts is finally enjoined, IAE shall, at
IAE’s option: 

  

	 	15.3.1	procure for Vuela the right to use or resell the Parts, 

  

	 	15.3.2	replace them with equivalent non-infringing Parts, 

  

	 	15.3.3	modify them so they become non-infringing but equivalent, or 

  

	 	15.3.4	remove them and refund the purchase price (less a reasonable allowance for use, damage and obsolescence). 

 

	 	15.3.5	IAE shall not be liable to Vuela for any consequential damage or any loss of use of any Parts or of the Aircraft in which the Parts may be incorporated arising as a
result directly or indirectly of any claim subject to this Clause 15.3. 

  

	 	15.4	The indemnity contained in Clause 15.3 shall not apply to any claim, suit or action based on infringement in respect of: 

 

	 	i)	Parts manufactured to a design or specification furnished by Vuela; or 

  

	 	ii)	Parts not of IAE design (but IAE shall in the event of any claim for infringement pass on to Vuela, so far as it has the right to do so, the benefits of any indemnity
given to IAE by the designer, manufacturer or supplier of such Parts); or 

  
 Page 20 of 37

 IAE PROPRIETARY INFORMATION 
  
  

	 	iii)	the manner of method in which any of the Parts have been installed in the Aircraft; or 

 

	 	iv)	the performance of a process not recommended in writing by IAE, or 

  

	 	v)	the use or sale of the Parts delivered hereunder in combination with other new parts not delivered to Vuela by IAE. 

 

	16.	Amendment 

 This
Agreement shall not be amended, changed, or modified in any way other than by agreement in writing, signed by the Parties hereto after the date of this Agreement, which is expressly stated to amend this Agreement. 

 

	17.	Assignment 

Neither Party may assign any of its rights or obligations hereunder without the written consent of the other Party, except that IAE may
assign its rights to receive money hereunder, and may assign any or all of its rights and/or obligations hereunder to any of IAE’s shareholders. Any assignment made in violation of this Clause 17 shall be null and void. IAE shall support Vuela
in its pursuit to secure a workmanship warranty from the Maintenance Center for the Eligible Engines at the end of the Period of Cover. 
  

	18.	Exhibits 

 In the
event of any conflict or discrepancy between the Exhibits (which are hereby incorporated by reference as part of this Agreement) and the Clauses of this Agreement, the Clauses of this Agreement shall prevail. 

 

	19.	Headings 

Captions, clause headings, and the Table of Contents are for convenience of reference only and shall not be deemed or construed in
any way as forming a part of this Agreement, nor shall they govern or affect the interpretation of the language or provisions of this Agreement. 
  

	20.	Notices 

 Any
notice to be served pursuant to this Agreement shall be sent by registered mail, by internationally recognized overnight courier, or by facsimile (with the original notice sent by registered mail or internationally recognized overnight courier) to
the applicable addresses indicated in 0. 
  

	21.	Exclusion of Other Provisions and Previous Understandings 

  

	 	21.1	This Agreement is the sole and entire agreement of the Parties with respect to the subject matter hereof and shall apply to the exclusion of any other provisions on or
attached to or otherwise forming part of any order form of Vuela, or any acknowledgment or acceptance by IAE, or of any other document which may be issued by either Party relating to such services. 

  
 Page 21 of 37

 IAE PROPRIETARY INFORMATION 

 

	 	21.2	The Parties agree that neither of them have placed any reliance whatsoever on any representations, agreements, statements or understandings made prior to the signature
of this Agreement, whether orally or in writing, relating to such services, other than those expressly incorporated in this Agreement, which has been negotiated on the basis that its provisions represent their entire agreement relating to such
services and shall supersede all such representations, agreements, statements and understandings. 

  

	22.	Termination, Expiration and Events of Default 

  

	 	22.1	Bankruptcy/Insolvency  

Either Party shall have the option, at its sole discretion, to terminate this Agreement upon the occurrence of any of the following
events: (a) a receiver or trustee is appointed for any of the other Party’s property, or (b) the other Party is adjudicated or voluntarily becomes bankrupt under any bankruptcy or winding up laws or other similar legislation, or
(c) the other Party becomes insolvent or makes an assignment for the benefit of creditors. 
  

	 	22.2	Failure to Make Payments or to Meet Obligations 

 A non-defaulting Party shall have the right to declare an event of default and terminate this Agreement (i) if the other Party fails to pay any amount hereunder not reasonably subject to dispute when
and as the same becomes due and payable and such default continues for a period of ***** or more; or (ii) if the other Party fails to perform any other material obligation under this Agreement and such default or failure shall not have been
fully corrected within thirty (30) days after the non-defaulting Party gives notice thereof to the defaulting Party. 
 If
Vuela fails to make any payment to IAE as set forth in Clause 10 of this Agreement (including any late interest due thereon) not reasonably subject to dispute and such default continues for a period of *****, then, without prejudice to IAE’s
other rights which IAE may have in contract or in law, IAE reserves the right not to induct, to suspend all work on, or not to release from the Maintenance Center(s) any Eligible Engine, Accessory, EBU Item or QEC Item until full payment is made by
Vuela to IAE. 
 The obligation of IAE to provide, or cause to be provided, the services set out in this Agreement shall be
subject to the non-existence of a continuing event of default by Vuela, after the expiration of any applicable grace or cure period, in any payment or other obligation of Vuela under any other agreement in effect between the Parties (an
“Event of Default”). Should any such Event of Default exist, IAE reserves the right not to induct, to stop all work on, or not to release from the Maintenance Center any Eligible Engine until such Event of Default is rectified by
Vuela to IAE’s satisfaction. 
 ***** 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 22 of 37 

 IAE PROPRIETARY INFORMATION 
  
  

	 	22.4	Expiration 

 This
Agreement shall be effective from the day and year first above written until the end of the Period of Cover for each Eligible Engine. 
  

	 	22.5	Effect of Termination or Expiration 

 Except as otherwise set out in this Clause 22.5 and any rights or obligations arising under applicable law, the rights and obligations of the Parties under this Agreement shall terminate upon the
termination or expiration of this Agreement, and Vuela shall no longer be provided with FHA coverage under the terms of this Agreement. 
 Upon any termination or expiration of this Agreement, all liabilities and obligations (including payment obligations) that have accrued prior to such termination or expiration (including payment for
Excess Work) shall survive. 
 This Clause 22.5 and Clauses 25 and 26 of this Agreement shall survive any expiration or
termination of this Agreement. 
  

	23.	Negation of Waiver 

Failure by either Party to enforce any term of this Agreement shall not constitute a waiver of such term. 

 

	24.	Severability And Partial Invalidity 

 If any provision of this Agreement or the application thereof to either Party shall be invalid, illegal or unenforceable to any extent, the remainder of the Agreement and the application thereof shall not
be affected and shall be enforceable to the fullest extent permitted by law. 
  

	25.	Governing Law 

This Agreement shall be construed and the performance thereof determined in accordance with the laws of the State of New York, United
States of America2, without regard to its conflict of laws provisions. The Parties agree to exclude the application of the United Nations Convention on Contracts for the International Sale of Goods. 

The Parties irrevocably submit to the exclusive jurisdiction of the state and federal courts sitting in New York County, New York, United
States of America, in connection with any suit, action or proceeding arising out of or relating to this Agreement and irrevocably waive to the fullest extent permitted by law, any objection to the laying of venue of any such suit, action or
proceeding in any such court or any claim that any suit, action or proceeding has been brought in an inconvenient forum. Further, the Parties hereto agree to waive any rights either of them may have to a jury trial in connection with any such suit,
action or proceeding. 

  
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 IAE PROPRIETARY INFORMATION 
  
  

	26.	Limitation of Liability 

  

	 	26.1	The liability of IAE to Vuela arising out of, connected with, or resulting from the furnishing of Parts and services under this Agreement, whether in contract, tort
(including, negligence, but excluding gross negligence, reckless misconduct, and intentionally wrongful conduct) or otherwise, shall be as expressly set forth in this Agreement, and shall not in any event exceed per claim the fair market value of
the Engine giving rise to Vuela’s claim. The foregoing shall constitute the sole remedy of Vuela and the sole liability of IAE. In no event shall IAE be liable for special, incidental or consequential damages, including, damage to, or loss of
use, revenue or profit with respect to any aircraft, engine, or part thereof. 

  

	 	26.2	For the purpose of this Clause 26, “IAE” shall be deemed to include IAE; Pratt and Whitney of East Hartford, Connecticut, USA; Rolls-Royce plc of London,
United Kingdom; JAEC, Japanese Aero Engine Corporation, of Tokyo, Japan; and MTU Aero Engines, Motoren und Turbinen Union Munchen, of Munich, Germany and the respective directors, officers, employees and agents of each. 

 

	27.	Publicity 

 Vuela
shall not use the name of IAE or the V2500 engine in any publicity material without the prior written consent of IAE. 
  

	28.	Confidentiality 

Each of IAE and Vuela acknowledge and understand that certain commercial and financial information contained in or provided in connection
with this Agreement is considered by the other to be confidential. IAE and Vuela each hereby agree, for the benefit of the other, that it shall treat the contents of this Agreement as confidential and shall not, without the prior written consent of
the other, disclose or cause to be disclosed the terms hereof to any person except to its legal and financial advisors and auditors, or expect as may be required by applicable law or governmental regulation, including federal and state securities
laws, or pursuant to an order issued by any court or governmental authority having jurisdiction over Vuela or IAE as the case may be. 
  

	29.	Records and Audit 

The Parties shall maintain adequate records as required to meet their obligations and compliance with the applicable provisions of this
FHA. 
 A Party shall not unreasonably condition or deny the other Party access to such adequate and applicable records for the
administration of this Agreement. Vuela or its nominee may visit the premises of IAE or the Maintenance Center at a time mutually agreeable to the Parties and upon reasonable notice to IAE, for the purpose of quality assurance and to inspect the
materials, parts, equipment and tools being used, the work being performed, and to review the quality assurance system in use by IAE and the Maintenance Center. 
 If IAE or its nominee requires access to the premises of Vuela under this FHA it shall provide reasonable written notice to Vuela and such visit or inspection will be at a time mutually agreeable to the
Parties. 

  
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 Each Party will comply and ensure that its personnel comply with the other Party’s conduct policies,
rules, regulations and directions governing the conduct of visitors upon their premises. 
 IN WITNESS WHEREOF the Parties hereto have caused
this Agreement to be signed on their behalf by the hands of their authorized officers as of the day and year first above written: 
  

					
	IAE International Aero Engines AG	  		  	Controladora Vuela Compañía de Aviación, S.A. de C.V.
			
	 /s/ Robert G. J. Stire
 Name
	  		  	 /s/ Andres Fabre
 Name

			
	 Robert G. J. Stire
 Printed
Name
	  		  	 Andres Fabre
 Printed
Name

			
	 Commercial Director

Title
	  		  	 Technology Director

Title

  
 Page 25 of 37

 IAE PROPRIETARY INFORMATION 
  
 Exhibit A 
 Eligible Engine List 
  

									
	 No.
	 	 Thrust

Rating
	 	 Serial

Number
	 	 Delivery

Date
	 	 Period of

Cover

	 1
	 	V2527-A5	 	V12285	 	Mar-06	 	TBD
	 2
	 	V2524-A5	 	V12274	 	May-06	 	TBD
	 3
	 	V2524-A5	 	V12278	 	May-06	 	TBD
	 4
	 	V2524-A5	 	V12286	 	May-06	 	TBD
	 5
	 	V2524-A5	 	V12288	 	May-06	 	TBD
	 6
	 	V2527M-A5	 	V12487	 	Jan-07	 	TBD
	 7
	 	V2527M-A5	 	V12472	 	Jan-07	 	TBD
	 8
	 	V2527M-A5	 	V12545	 	Mar-07	 	TBD
	 9
	 	V2527M-A5	 	V12532	 	Mar-07	 	TBD
	 10
	 	V2527M-A5	 	V12559	 	Mar-07	 	TBD
	 11
	 	V2527M-A5	 	V12557	 	Mar-07	 	TBD
	 12
	 	V2527M-A5	 	V12561	 	Mar-07	 	TBD
	 13
	 	V2527M-A5	 	V12563	 	Mar-07	 	TBD
	 14
	 	V2527-A5	 	TBD	 	Nov-07	 	TBD
	 15
	 	V2527-A5	 	TBD	 	Nov-07	 	TBD
	 16
	 	V2527-A5	 	TBD	 	Jan-08	 	TBD
	 17
	 	V2527-A5	 	TBD	 	Jun-08	 	TBD
	 18
	 	V2527-A5	 	TBD	 	Jun-08	 	TBD
	 19
	 	V2527-A5	 	TBD	 	Jul-08	 	TBD
	 20
	 	V2527-A5	 	TBD	 	Jul-08	 	TBD
	 21
	 	V2527-A5	 	TBD	 	Oct-08	 	TBD
	 22
	 	V2527-A5	 	TBD	 	Oct-08	 	TBD
	 23
	 	V2527-A5	 	TBD	 	Jan-09	 	TBD
	 24
	 	V2527-A5	 	TBD	 	Jan-09	 	TBD
	 25
	 	V2527-A5	 	TBD	 	Mar-09	 	TBD
	 26
	 	V2527-A5	 	TBD	 	Mar-09	 	TBD
	 27
	 	V2527-A5	 	TBD	 	Jun-09	 	TBD
	 28
	 	V2527-A5	 	TBD	 	Jun-09	 	TBD
	 29
	 	V2527-A5	 	TBD	 	Jun-09	 	TBD
	 30
	 	V2527-A5	 	TBD	 	Sep-09	 	TBD
	 31
	 	V2527-A5	 	TBD	 	Sep-09	 	TBD
	 32
	 	V2527-A5	 	TBD	 	Nov-09	 	TBD
	 33
	 	V2527-A5	 	TBD	 	Nov-09	 	TBD
	 34
	 	V2527-A5	 	TBD	 	Mar-10	 	TBD
	 35
	 	V2527-A5	 	TBD	 	Mar-10	 	TBD

  
 Page 26 of 37

 IAE PROPRIETARY INFORMATION 

 

 Exhibit B 

IAE FHA Escalation Formula 
  

	1.	FHA Rates will be subject to escalation in accordance with the formula set forth below: 

***** 
 Where:

 ***** 

Base Month shall mean the base month specified for the FHA Rates in the Proposal. 

***** 
 For
avoidance of doubt, the quarterly values of CIU2023211000000I will apply to each month of a given quarter. 
  

	2.	The values of the factors *****, and ***** respectively, shall be determined to the nearest fourth decimal place. If the fifth decimal is five or more, the fourth
decimal place shall be raised to the next higher number. 

  

	3.	If the U.S. Department of Labor ceases to publish the above statistics or modifies the basis of their calculation, then IAE, in its sole discretion, shall select a
substitute for such values from data published by the Bureau of Labor Statistics or otherwise make revisions to the escalation formula such that the escalation will as closely as possible approximate the result that would have been attained by
continuing the use of the original escalation formula and values as they may have fluctuated during the applicable time period. 

  

	4.	If the application of the formula contained in this Exhibit results in an FHAR for the month which is lower than FHARb, FHAR for the month will be set equal to
FHARb. 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 27 of 37 

 IAE PROPRIETARY INFORMATION 
  
 Exhibit C 
 Accessories 
  

															
	 TYP PART NUMBER
	  	 PART NAME
	  	ATA
CHAPTER	 	  	FIG	 	  	ITEM	 
	 16844-000
	  	COOLER, IDG OIL	  	 	242142	  	  	 	1	  	  	 	100	  
	 7702-03
	  	DETECTOR, ASSY FIRE ACCESSORY	  	 	261215	  	  	 	1	  	  	 	100	  
	 7827-02
	  	DETECTOR, ASSY FIRE	  	 	261217	  	  	 	1	  	  	 	100	  
	 AC69576
	  	VALVE, SOLENOID STAGE 10 BLE	  	 	361157	  	  	 	1	  	  	 	100	  
	 005RL05
	  	BOX, RELAY	  	 	715149	  	  	 	1	  	  	 	100	  
	 5009913G
	  	PUMP, FUEL LP/HP	  	 	731241	  	  	 	1	  	  	 	100	  
	 17300G09
	  	VALVE, FUEL DIVERTER & RETUR	  	 	731342	  	  	 	1	  	  	 	100	  
	 2A0526
	  	VALVE, FUEL FLOW DIVIDER	  	 	731343	  	  	 	1	  	  	 	20	  
	 2A3343
	  	PROBE, TOTAL PRESS&TEMP	  	 	732211	  	  	 	1	  	  	 	10	  
	 2A1126
	  	PROBE, TEMP&PRESS DIFSR CASE	  	 	732215	  	  	 	1	  	  	 	30	  
	 2A3504
	  	CONTROL, ELECTRONIC ENGINE	  	 	732234	  	  	 	1	  	  	 	280	  
	 430153
	  	GENERATOR, STATOR ALTERNATOR	  	 	732238	  	  	 	1	  	  	 	100	  
	 FMU550MK1
	  	METER, FUEL	  	 	732252	  	  	 	1	  	  	 	100	  
	 9-217-59
	  	TRANSMITTER, FUEL FLOW	  	 	733117	  	  	 	1	  	  	 	100	  
	 21SN04-300B
	  	SWITCH, FUEL FILT DIFF PRESS	  	 	733415	  	  	 	1	  	  	 	10	  
	 22912-000
	  	THERMOCOUPLE, FUEL TEMP	  	 	733515	  	  	 	1	  	  	 	100	  
	 5U0012
	  	EXCITER, IGNITION	  	 	741138	  	  	 	1	  	  	 	120	  
	 5U0012
	  	EXCITER, IGNITION	  	 	741138	  	  	 	1	  	  	 	520	  
	 5U0072
	  	LEAD, IGNITION	  	 	742143	  	  	 	1	  	  	 	100	  
	 D1876-1000A
	  	COOLER, AIR NO.4 BRG COMP	  	 	752241	  	  	 	1	  	  	 	100	  
	 5860010-108
	  	VALVE, AIR STG 10 TO HPT	  	 	752351	  	  	 	1	  	  	 	100	  
	 5860016-131
	  	VALVE, AIR HPT/LPT ACC	  	 	752451	  	  	 	1	  	  	 	100	  
	 5860017-139
	  	ACTUATOR,VALVE HPT/LPT ACC	  	 	752452	  	  	 	1	  	  	 	100	  
	 1777MK2
	  	ACTUATOR, MASTER LPC BLEED	  	 	753142	  	  	 	1	  	  	 	100	  
	 1778MK1
	  	ACTUATOR, SLAVE-LPC BLEED	  	 	753143	  	  	 	1	  	  	 	100	  
	 2607MK2
	  	ACTUATOR VARIABLE STATOR	  	 	753241	  	  	 	1	  	  	 	100	  
	 AC69572
	  	VALVE, SOLENOID STG 7 HPC	  	 	753251	  	  	 	1	  	  	 	100	  
	 AC69572
	  	VALVE, SOLENOID STG 7 HPC	  	 	753251	  	  	 	1	  	  	 	100	  
	 AC69572
	  	VALVE, SOLENOID STG 7 HPC	  	 	753251	  	  	 	1	  	  	 	100	  
	 AC69924
	  	VALVE, BLEED ST7 HP COMPRESS	  	 	753252	  	  	 	1	  	  	 	100	  
	 AC69924
	  	VALVE, BLEED ST7 HP COMPRESS	  	 	753252	  	  	 	1	  	  	 	100	  
	 AC69924
	  	VALVE, BLEED ST7 HP COMPRESS	  	 	753252	  	  	 	1	  	  	 	100	  
	 AC69574
	  	VALVE, SOLENOID STG 10 HPC	  	 	753253	  	  	 	1	  	  	 	400	  
	 5950041-108
	  	VALVE, BLEED ST 10 HP COMP	  	 	753254	  	  	 	1	  	  	 	400	  
	 RP 162-02
	  	SENSOR, NACELLE TEMPERATURE	  	 	754115	  	  	 	1	  	  	 	100	  
	 2A2159
	  	THERMOCOUPLE OPTION	  	 	772115	  	  	 	20	  	  	 	100	  
	 144-171-000-031
	  	*TRANSDUCER, VIBRATION	  	 	773215	  	  	 	1	  	  	 	100	  
	 4A7110
	  	PUMP & FILTER A/O PRESS.	  	 	792141	  	  	 	1	  	  	 	1	  
	 4A7111
	  	PUMP & FILTER A/O PRESS.	  	 	792142	  	  	 	2	  	  	 	2	  
	 4A7112
	  	PUMP & FILTER A/O PRESS.	  	 	792143	  	  	 	3	  	  	 	3	  
	 4A7113
	  	PUMP & FILTER A/O PRESS.	  	 	792144	  	  	 	4	  	  	 	4	  
	 4A7114
	  	PUMP & FILTER A/O PRESS.	  	 	792145	  	  	 	5	  	  	 	5	  
	 4A7115
	  	PUMP & FILTER A/O PRESS.	  	 	792146	  	  	 	6	  	  	 	6	  
	 4A7116
	  	PUMP & FILTER A/O PRESS.	  	 	792147	  	  	 	7	  	  	 	7	  
	 4A7117
	  	PUMP & FILTER A/O PRESS.	  	 	792148	  	  	 	8	  	  	 	8	  

  
 Page 28 of 37

 IAE PROPRIETARY INFORMATION 
  

															
	 TYP PART NUMBER
	  	 PART NAME
	  	ATA
CHAPTER	 	  	FIG	 	  	ITEM	 
	 4A7118
	  	PUMP & FILTER A/O PRESS.	  	 	792149	  	  	 	9	  	  	 	9	  
	 4A7119
	  	PUMP & FILTER A/O PRESS.	  	 	792150	  	  	 	10	  	  	 	10	  
	 4A7120
	  	PUMP & FILTER A/O PRESS.	  	 	792151	  	  	 	11	  	  	 	11	  
	 4A7121
	  	PUMP & FILTER A/O PRESS.	  	 	792152	  	  	 	12	  	  	 	12	  
	 4A7122
	  	PUMP & FILTER A/O PRESS.	  	 	792153	  	  	 	13	  	  	 	13	  
	 4A7123
	  	PUMP & FILTER A/O PRESS.	  	 	792154	  	  	 	14	  	  	 	14	  
	 4A7124
	  	PUMP & FILTER A/O PRESS.	  	 	792155	  	  	 	15	  	  	 	15	  
	 4A7125
	  	PUMP & FILTER A/O PRESS.	  	 	792156	  	  	 	16	  	  	 	16	  

  
 Page 29 of 37

 IAE PROPRIETARY INFORMATION 

 

 Exhibit D 

Powerplant – Description 
 ***** 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 30 of 37 

 IAE PROPRIETARY INFORMATION 
  
 Exhibit E 
 Addresses 
  

	1.	Vuela ADDRESSES 

  

	 	(a)	Address for Notices: 

 Av.
Prolongacion Reforma # 490, 
 Primer Piso, 
 Colonia Lomas Santa Fe, 
 Delegacion Alvaro Obregon 

Mexico, 

Distrito Federal 
 C.P 01210 
 Facsimile No. 52 55 5261 6460 

Attention: Chief Financial Officer 
  

	 	(b)	Address for Invoices: 

 Av.
Prolongacion Reforma # 490, 
 Primer Piso, 
 Colonia Lomas Santa Fe, 
 Delegacion Alvaro Obregon 

Mexico, 

Distrito Federal 
 C.P 01210 
 Facsimile No. 52 55 5261 6460 

Attention: Financial Controller 
  

	2.	IAE ADDRESSES 

  

	 	(a)	Address for Notices: 

Attention: Chief Legal Officer & Company Secretary 
 IAE International Aero Engines AG 
 400 Main Street 

Mail Stop 121-10 
 East Hartford, CT 06108 
 Fax: (860) 565-5220 

 

	 	(b)	Address for Invoices: 

Attention: Accounts Receivable Manager 
 IAE International Aero Engines AG 
 400 Main Street 

Mail Stop 121-10 
 East Hartford, CT 06108 
 Fax: (860) 565-9332 

  
 Page 31 of 37

 IAE PROPRIETARY INFORMATION 
  
  

	 	(c)	Address for all Other FHA Matters: 

 Attention: Customer Fleet Director 
 IAE International Aero Engines AG 

400 Main Street 

Mail Stop 121-10 
 East Hartford, CT 06108 
 Fax: (860) 565-xxxx 

  
 Page 32 of 37

 IAE PROPRIETARY INFORMATION 

 

 Exhibit F 

IAE Engine Monitoring Services 
  

	1.	IAE will provide the following Engine monitoring services (“Services”) through the ***** system: 

 

	 	(a)	Engine Trend Monitoring 

  

	 	(i)	Provide processing of in-flight Engine data received from Vuela into IAE’s EHM database as provided per the data input and transmission requirements set forth in
Section 3 herein. All processed data will be provided to Vuela via IAE’s web portal. Daily updates require web portal access described in Section 1(b) herein. 

 

	 	(ii)	Provide automated mechanical exceedance reporting for those Aircraft that are equipped with required on-board hardware and software. 

 

	 	(iii)	Provide technical analysis of Eligible Engines’ performance data and report anomalies indicated by such data to designated Vuela personnel as required.

  

	 	(iv)	Provide access to monthly Eligible Engine operating trend analysis report covering post Period of Cover operations to assist Vuela in the planning and scheduling of
Eligible Engines for shop visits. 

  

	 	(v)	Provide automated alert notification of parameters that have exceeded level and rate change limits. 

 

	 	(vi)	Provide access to alert details reports that identify Aircraft and Eligible Engines by serial number and provide the date, time, magnitude and details of occurrences
when such Eligible Engine exceeds specific performance parameters and provide the ability to store comments associated with a given alert. 

  

	 	(vii)	Provide exhaust gas temperature (subject to data availability) Watch-Lists, updated monthly utilizing data received from Vuela to assist Vuela in scheduling Eligible
Engine removals for maintenance purposes. The Watch-Lists provide an engine ranking and predicted removal date for a given Eligible Engine based on the measured parameter and deterioration rate to assist with proactive on-wing management and
maintenance planning. 

  

	 	(viii)	Provide access to the following engine performance parameter trend plots that are updated real-time as new in-flight Engine data is received from Vuela:

  

	 	•	 	 EGT Margin 

  

	 	•	 	 Sea Level Outside Air Temperature Limits 

  

	 	•	 	 N1 and N2 Shaft Speeds 

  

	 	•	 	 Fuel Flow 

  

	 	•	 	 Vibration 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 33 of 37 

 IAE PROPRIETARY INFORMATION 
  
  

	 	•	 	 Oil Temperature 

  

	 	•	 	 Oil Pressure 

  

	 	•	 	 P2.5, T2.5, P3.0, T3.0, P12.5 

  

	 	(ix)	Upon special request, raw in-flight Engine data can be supplied to Vuela. 

  

	 	(x)	Input data files and individually processed records will be stored for a minimum period of five (5) years. 

 

	 	(b)	WEB PORTAL ACCESS 

  

	 	(i)	Provide twenty-four (24) hour per day access to reports and processed information, provided to under Section 1(a) herein, through a secure web portal created
and maintained by IAE. Such web portal access shall be created and provided to Vuela approximately thirty (30) days from the execution of this Agreement. Vuela must meet IAE defined requirements for access as detailed in Section 2 herein.
IAE will use all reasonable efforts to ensure a service availability target of 96% when measured on an annual basis and that down time of the system is no longer than one (1) Business Day for any one incident. 

 

	 	(ii)	IAE shall provide Services under the terms of this Agreement contingent upon the timely receipt of data required by IAE from Vuela. It is understood between the parties
that the ability of IAE to provide timely and accurate reports and processed information through these web-based services is dependent upon the quality and timeliness of the data received from Vuela. 

 

	 	(iii)	If email, or pager or cell phone alert notifications are required by Vuela, Vuela shall be responsible for acquiring and maintaining the required pager and cell phone
hardware and software and pay any associated communications fees. It is Vuela’s responsibility to establish an alert notification contact list and advise IAE of any changes. 

 

	2.	ACCESSIBILITY 

  

	 	(a)	To facilitate internet portal access, Vuela is required to maintain the following: (i) internet access; (ii) Internet Explorer version 5.5 or
higher; (iii) 128 bit Secure Socket Layer (“SSL”) encryption capability; and (iv) a minimum internet speed of 56K bits per second to access the internet portal. 

 

	 	(b)	All information being transmitted through the internet portal will be protected using SSL encryption. In addition, each user of the internet portal will be
authenticated at logon with a unique user identification and password. Once authenticated to the internet portal, Vuela will only be allowed to access the information that Vuela and IAE mutually agree a specific user may review. IAE shall review
security requirements for web portal access from time to time to ensure an appropriate level of data protection. Updated security requirements shall be communicated to Vuela on a timely basis. 

  
 Page 34 of 37

 IAE PROPRIETARY INFORMATION 
  
  

	3.	TRANSMISSION OF DATA BY VUELA 

  

	 	(a)	Vuela shall provide all data requested by IAE in order to perform the Services, including but not limited to the date and time the data was recorded, aircraft and
engine number, engine position, altitude and mach (or air speed), total air temperature, engine pressure ratio, rotor speeds, fuel flow, oil temperature, oil pressure, mechanical exceedances and pertinent maintenance actions (EHM Eligible Engine
changes, sensor changes, other items that may impact engine performance). Vuela shall electronically transmit engine condition monitoring data to IAE’s designated ground station via air-to-ground service providers (e.g., ARINC and SITA) or
via such other routing as the parties mutually agree. 

  

	 	(b)	Using the facilities available within IAE’s V2500 engine monitoring program services, Vuela shall provide feedback of on-wing maintenance actions taken as a result
of an alert notification as provided in accordance with Section 1(a)(v) herein. 

  
 Page 35 of 37

 IAE PROPRIETARY INFORMATION 

 

 Exhibit G 

Excess Work Labor and Fee Rates 
  

					
	 Item
	 	 Basis
	 	
Rates/Fees4

	 Hourly labor rate
	 	Labor hours	 	*****
			
	 Handling fee, new parts
	 	Current catalog part price	 	*****
			
	 Handling fee, LLP’s
	 	Current catalog part
price1	 	*****
			
	 Handling fee, used parts
	 	***** of current catalog part price	 	*****
			
	 Handling fee, customer supplied material
	 	Current catalog part price	 	*****
			
	 Handling fee, vendor repair
	 	Vendor invoice amount	 	*****
			
	 Rotable fee3
	 	Vendor invoice amount	 	*****

 Notes: 
  

	1.	The price of used LLPs will be adjusted pro-rata on the basis LLP cycle life remaining. 

 

	2.	A line item cap of *****applies. 

  

	3.	Rotable transactions are subject to both the rotable material fee and the vendor repair handling fee. 

 

	4.	The above labor rates are expressed in United States Dollars and are subject to escalation from the base month of January 2004 in accordance with the formula set
forth in Exhibit B (as may be modified in accordance with the provisions of Clause 11 to this Agreement. 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 36 of 37 

 IAE PROPRIETARY INFORMATION 

 

 Exhibit H 

FHA Rate Adjustment 

For each Eligible Engine whose individual operational parameters differ from those set forth in Clause 10.5 of the Agreement, the Restoration Shop Visit
FHA Rates shall be adjusted for the different parameters in accordance with the following formula: 
 ***** 

Where: 
  

					
	*****	 	=	    	*****
	*****	 	=	    	*****
	*****	 	=	    	*****
	*****	 	=	    	*****

 The MTBR model will be Model V1.2.TB, as provided by IAE to Vuela. 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 Page 37 of 37EX-10.6

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as [*****]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

Exhibit 10.06 
 Lease No. 1 
 THIS LEASE is made the 28 day of April 2006 BETWEEN

  

	(1)	ENGINE LEASE FINANCE CORPORATION (“Lessor”); and 

  

	(2)	CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, S.A. DE C.V. (“Lessee”). 

WHEREAS Lessor and Lessee have entered into an aircraft engine general terms agreement (the “GTA”) dated 28th April 2006 and this is a Lease as defined therein. 

IT IS HEREBY AGREED: 
  

	1.	Lease 

 By the execution
and delivery of this Lease, Lessor agrees subject to Lessor acquiring title to the Engine on the Delivery Date to lease the Engine to Lessee and Lessee agrees to lease the Engine from Lessor upon the terms set out in the GTA (which are incorporated
herein and form part hereof) and the more particular terms set out herein: 
  

			
	 Engine:
	  	One new and unused V2527M-A5; M.S.N: V12285;
		
	 QEC:
	  	as specified in Appendix A;
		
	 Delivery Condition:
	  	as specified in Appendix A;
		
	 Delivery Location:
	  	Such mutually agreed location as will minimise or exclude tax consequences adverse to Lessee and Lessor;
		
	 Scheduled Delivery Date:
	  	21 April 2006 or such other date as may be agreed between Lessor and Lessee and on which date Lessor acquires title to the Engine;
		
	 Final Delivery Date:
	  	28 April 2006 or such other date as may be agreed between Lessor and Lessee;
		
	 Agreed Value:
	  	*****
		
	 Rent:
	  	***** payable on the 27th day of each month (as adjusted in accordance with Clause 3);
		
	 Deposit:
	  	***** payable on or before the Delivery Date and refundable to Lessee without interest (i) in accordance with clause 3.2(a)(iv) of the GTA within ten (10) Business Days of full
discharge of all Lessee obligations in accordance with this Lease or (ii) within ten (10) Business Days of termination of this Lease where such termination occurs pursuant to clause 15.5 of the GTA;

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
  

			
	 Lessor’s Security:
	  	not applicable;
		
	 Default Rate:
	  	***** per annum over US Prime, compounded monthly and calculated on the basis of a 360 day year;
		
	 Scheduled Expiry Date:
	  	the date falling 68 months after the Delivery Date;
		
	 Option Exercise Date:
	  	the date (if any) on which Lessee exercises the option granted by Clause 2 by delivering notice to Lessor in accordance therewith;
		
	 Primary Lease Period:
	  	the period commencing on the Delivery Date and ending on the Scheduled Expiry Date;
		
	 Secondary Lease Period:
	  	the period to be agreed by Lessor and Lessee commencing on the Scheduled Expiry Date;
		
	Secondary Lease Period Expiry Date:	  	the date scheduled as the last day of the Secondary Lease Period on the Option Exercise Date;
		
	 Hourly Reserve:
	  	subject to Clause 5 below, the applicable $ amount specified in Annex 1 hereto and adjustable in accordance with clause 4.2 of the GTA whether or not Lessee is obligated to pay
Hourly Reserves;
		
	 EHM Claim Cap:
	  	***** of the Hourly Reserves balance held by Lessor based on a minimum of a Level 1 ESV workscope; and ***** of the Hourly Reserves balance held by Lessor based on a minimum
Level 2 ESV workscope;
		
	 Level 1 ESV:
	  	an Engine Shop Visit at which the minimum workscope applied to each of the Major Modules is not equal to the Minimum eMMP Refurbishment Level for ESV2 as stated in Annex 2 but is
at least equal to the Minimum eMMP Refurbishment Level for ESV1 as stated in Annex 2 and with a minimum Life Limited Part build life to be agreed between Lessor and Lessee reflecting Lessee’s expected minimum release life for Life Limited Parts
following the application of such workscope provided always that no Life Limited Part shall have less than 9,000 Cycles remaining to scheduled removal;

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
  

			
	Level 2 ESV:	  	an Engine Shop Visit at which the minimum workscope applied to each of the Major Modules is at least equal to the Minimum eMMP Refurbishment Level for ESV2 as stated in Annex 2
and with a minimum Life Limited Part build life to be agreed between Lessor and Lessee reflecting Lessee’s expected minimum release life for Life Limited Parts following the application of such workscope provided always that no Life Limited
Part shall have less than 11,000 Cycles remaining to scheduled removal;
		
	Engine Heavy Maintenance	  	An Engine Shop Visit where either a Level 1 ESV or Level 2 ESV was performed;
		
	LLP Reserve:	  	***** and adjustable in accordance with clause 4.3 of the GTA;
		
	Major Modules:	  	as specified in Annex 2;
		
	Minimum Flight Hours and Cycles remaining on Redelivery:	  	not more than 1,000 Flight Hours and Cycles since new or last Engine Heavy Maintenance;
		
	Minimum EGT Margin at Redelivery:	  	sufficient to achieve the balance of the last Engine Heavy Maintenance Life Limited Part build life remaining at Redelivery based upon Lessee’s historical performance loss
in EGT margin in the preceding three (3) years of operation for engines of the same type as the Engine;
		
	Stub Life:	  	for each Life Limited Part is ***** of the certified life limit for that Part;
		
	Utilisation Report:	  	the report set out in Appendix C;
		
	Redelivery Location:	  	Miami International Airport, Florida, United States of America or such other location as Lessor and Lessee shall agree;
		
	Lessee’s Country:	  	Mexico.

  

	2.	Option  

 Provided that no Relevant Event
has occurred and is continuing on the Option Exercise Date or the Scheduled Expiry Date, the parties may opt to lease the Engine for the Secondary Lease Period. The option may be exercised by an unconditional notice to Lessor not later than 3 months
prior to the Scheduled Expiry Date. Once such notice has been given by Lessee and received by Lessor, it shall be irrevocable and shall oblige Lessee to lease the Engine for the Secondary Lease Period upon the terms of the GTA provided that Lessor
has consented thereto which consent shall be at Lessor’s sole discretion. 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
  

	3.	Rent Adjustment 

 The Rent is based upon
***** LIBOR and ***** US$ Swap Rate as quoted to Lessor by Bank of America on March 2nd, 2006 at ***** and ***** respectively. To the extent that the equivalent US$ Swap Rate and one month LIBOR on the Delivery Date are greater or lower than
this, Lessor will adjust the Lease Factor accordingly and the Rent shall be calculated by reference to such adjusted Lease Factor and the Rent so calculated shall be fixed for the duration of the Primary Lease Period. Any such adjustment shall be
notified by Lessor to Lessee and absent manifest error, the adjusted amount so calculated shall thereupon be the Rent. 
  

	4.	Redelivery Condition Compensation 

  

	4.1	Lessee shall compensate Lessor for Flight Hours used since Delivery as follows:- 

 

	 	(a)	If the last Engine Heavy Maintenance prior to Redelivery was at least equivalent to a Level 1 ESV but not equivalent to a Level 2 ESV, Lessee shall compensate Lessor in
$ for each Flight Hour flown since last Level 1 ESV at the Level 1 ESV Compensation Rate at the applicable Cycle ratio as stated in Annex 1 (as adjusted in accordance with clause 4.2(a) of the GTA between Delivery and Redelivery) plus an amount in $
for each Flight Hour flown since new or last Level 2 ESV (whichever is applicable) at the ESV Level 2 Compensation Rate at the applicable Cycle ratio as stated in Annex 1 (as adjusted in accordance with clause 4.2(a) of the GTA between Delivery and
Redelivery); or 

  

	 	(b)	If the last Engine Heavy Maintenance prior to redelivery was at least equivalent to a Level 2 ESV, Lessee shall compensate Lessor in $ for each Flight Hour flown since
last Level 2 ESV at the ESV Base Compensation Rate at the applicable Cycle ratio as stated in Annex 1 (as adjusted in accordance with clause 4.2(a) of the GTA between Delivery and Redelivery); or 

 

	 	(c)	If there has been no Engine Heavy Maintenance since Delivery then Lessee shall compensate Lessor in $ for each Flight Hour flown since new at the ESV Base Compensation
Rate at the applicable Cycle ratio as stated in Annex 1 (as adjusted in accordance with clause 4.2(a) of the GTA between Delivery and Redelivery). 

  

	4.2	Lessee shall pay Lessor compensation in $ for life used on each Life Limited Parts between Delivery and Redelivery in an amount per Cycle calculated by dividing the
then current Manufacturer list price of such Life Limited Part by the then current life limit of such Life Limited Part minus the Stub Life. 

  

	4.3	Provided that no Relevant Event has occurred and is continuing, Lessor shall apply Hourly Reserves and LLP Reserves then held and not subject to a claim for
reimbursement or payment to Lessee in accordance with the GTA to the compensation amounts payable to Lessor under this Clause 4. 

  

	5.	Alternative Hourly Reserve Provisions 

  

	5.1	Notwithstanding clause 4 of the GTA, provided that: 

  

	 	(a)	the Engine continues to be maintained under and enjoy the benefit of a fleet hour agreement between Lessee and Manufacturer (the “FHA”); and

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
  

	 	(b)	Lessee continues to comply with the provisions of the FHA, 

 then Lessee shall not be obligated to pay Hourly Reserves to Lessor during the Lease Period. 
 Lessee shall procure an undertaking from Manufacturer in favour of Lessor promptly to notify Lessor in writing if either or both of (a) and (b) above ceases to be the case. If Lessor receives
such notification from Manufacturer and/or (a) and/or (b) ceases to be the case and if the event which is the cause of same (if capable of being cured) has not been cured by Lessee within any applicable cure period stated in the FHA then
Lessee shall immediately make a payment to Lessor in an amount equal to the aggregate amount of Hourly Reserves that would have been payable by Lessee for all Flight Hours flown by the Engine to the date that such payment becomes payable hereunder
which amount shall be calculated as follows:- 
  

	 	(i)	if the Engine has not had any Engine Heavy Maintenance since new then such amount shall be calculated in respect of each Flight Hour since new at the ESV Base
Compensation Rate determined in accordance with the applicable Cycle ratio as stated in Annex 1 (as adjusted in accordance with clause 4.2(a) of the GTA between Delivery and the date such amount is payable hereunder), or 

 

	 	(ii)	if the last Engine Heavy Maintenance to occur was at least equivalent to a Level 1 ESV but not equivalent to a Level 2 ESV then such amount shall be calculated in
respect of each Flight Hour since last Level 1 ESV at the Level 1 ESV Compensation Rate determined in accordance with the applicable Cycle ratio as stated in Annex 1 (as adjusted in accordance with clause 4.2(a) of the GTA between Delivery and the
date such amount is payable hereunder) and in respect of each Flight Hour since last Level 2 ESV or new (whichever is applicable) at the Level 2 ESV Compensation Rate determined in accordance with the applicable Cycle ratio as stated in Annex 1 (as
adjusted in accordance with clause 4.2(a) of the GTA between Delivery and the date such amount is payable hereunder, or 

  

	 	(iii)	if the last Engine Heavy Maintenance was at least equivalent to a Level 2 ESV, then such amount shall be calculated in respect of each Flight Hour since last Level 2
ESV at the ESV Base Compensation Rate determined in accordance with the applicable Cycle ratio as stated in Annex 1 (as adjusted in accordance with clause 4.2(a) of the GTA between Delivery and the date such amount is payable hereunder,

 and Lessee shall thereafter pay Lessor Hourly Reserves for Flight Hours operated by the Engine for the remaining
duration of the Lease Period which shall be held and applied in accordance with the GTA. 
  

	5.2	 Notwithstanding clause 4 of the GTA, the maximum amounts that Lessor is obligated to pay to Lessee in respect of a completed Engine Heavy Maintenance
shop visits under clause 4.4 (a) of the GTA shall be ***** (as adjusted in accordance with clause 4.2(a) of the GTA between Delivery and 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
  

 
the date of induction for such Engine Heavy Maintenance) in respect of a Level 1 ESV and ***** (as adjusted in accordance with clause 4.2(a) of the GTA between Delivery and the date of induction
for such Engine Heavy Maintenance) in respect of a Level 2 ESV. 
  

	5.3	For the avoidance of doubt, Lessor shall not be obligated to pay Lessee more than the aggregate amount that Lessee has paid to Lessor by way of Hourly Reserves less any
previous amounts paid by Lessor in respect of completed Engine Shop Visits. 

  

	6.	Subleasing 

 Subject to the provisions of
clause 8.2 of the GTA, Lessee may sublease the Engine to one or more airlines within Grupo TACA. 
  

	7.	Alternative Redelivery Provisions 

Notwithstanding clause 20.2(a) of the GTA, Lessee shall not be obliged to perform a test cell run if the Engine has been removed from a Host Aircraft
immediately prior to redelivery, provided that:- 
  

	 	(a)	Lessee provides to Lessor take-off trend monitoring data for each of the last 25 flights operated by the Engine immediately prior to redelivery; and

  

	 	(b)	such take-off trend monitoring data does not indicate that the Engine may not comply with the Redelivery Condition. 

If, in Lessor’s opinion (acting reasonably), a review of the take-off trend monitoring data indicates that the Engine may not meet the Redelivery
Condition or, in Lessor’s opinion (acting reasonably), such take-off trend monitoring data is not an accurate gauge of the condition of the Engine, then Lessee shall perform or cause to be performed at Lessee’s sole cost and expense a full
performance test cell run. 
  

	8.	Additional Provisions 

  

	8.1	The Engine shall not be operated by Lessee or any Sublessee at any time during the Lease Period at a thrust rating higher than V2524-A5 rating except that Lessee or any
Sublessee may operate the Engine at V2527-A5 thrust rating for up to 5% of the total time in Flight Hours or Cycles between Engine Heavy Maintenance shop visits. 

 

	8.2	It shall be an additional condition precedent to this Lease that Lessee deliver to Lessor the written undertaking from the Manufacturer referred to in Clause 5 together
with a certified copy of the relevant portions of the FHA between Lessee and Manufacturer reflecting the scope of services provided thereunder and any conditions as to the availability of such services provided however that Lessor shall have entered
into a non-disclosure agreement with Manufacturer pursuant to which Manufacturer has consented to the disclosure of such provisions of the FHA to Lessor. 

  

	8.3	Lessor hereby confirms that any maintenance and repair performer or service agency licensed by the FAA or EASA to undertake maintenance work on the Engine and used by
the Manufacturer to maintain the Engine under the FHA is hereby approved as an Authorised Repairer. 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
  

 SIGNED for and on behalf of 
 ENGINE LEASE FINANCE CORPORATION 
  

			
	By:	 	 /s/ Tom Barret

	Name:	 	Tom Barret
	Title:	 	Executive Vice President Chief Financial and Administrative Officer

  

			
	 ,in the presence of :

	 Name
	 	:
	 Occupation
	 	:
	 Address :
	 	

 SIGNED for and on behalf of 
 CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, S.A. DE C.V. 
  

			
	By:	 	 /s/ Alfonso Ascencio Triujeque

	Name:	 	Alfonso Ascencio Triujeque
	Title:	 	General Counsel

			
	
	in the presence of :
	Name	 	:
	Occupation	 	:
	Address :

 Annex 1 

ESV Base Compensation Rate \ Hourly Reserve 
  

																							
	 Cycle Ratio
	 	1.00-1.19	 	1.20-1.39	 	1.40-1.59	 	1.60-1.79	 	1.80-1.99	 	2.00-2.19	 	2.20-2.39	 	2.40-2.59	 	2.60-2.79	 	2.80-2.99	 	>2.99
	 US$ per Flight Hour
	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****

 ESV Level 1 Compensation Rate 

 

																							
	 Cycle Ratio
	 	1.00-1.19	 	1.20-1.39	 	1.40-1.59	 	1.60-1.79	 	1.80-1.99	 	2.00-2.19	 	2.20-2.39	 	2.40-2.59	 	2.60-2.79	 	2.80-2.99	 	>2.99
	 US$ per Flight Hour
	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****

 ESV Level 2 Compensation Rate 

 

																							
	 Cycle Ratio
	 	1.00-1.19	 	1.20-1.39	 	1.40-1.59	 	1.60-179	 	1.80-1.99	 	2.00-2.19	 	2.20-2.39	 	2.40-2.59	 	2.60-2.79	 	2.80-2.99	 	>2.99
	 US$ per Flight Hour
	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 9 

 Annex 2 

 

							
	 Principal Maintenance
 Assembly/Modular

Description
	  	Illustrated Parts
Catalogue Reference	  	Minimum eMMP
Refurbishment Level
for ESV1	  	Minimum eMMP
Refurbishment Level
for ESV2
	 Fan Module
	  	72-31-00-01-001	  	3	  	3
	 Intermediate Case Module
	  	72-32-00-01-001	  	1	  	2
	 LP Booster sub module
	  	72-32-80	  	1	  	3
	 Internal Gearbox sub module
	  	72-32-10	  	1	  	3
	 Stub Shaft assembly sub module
	  	72-32-50	  	1	  	3
	 HP Compressor Module
	  	72-41-00-01-001	  	1	  	3
	 Diffuser
	  	72-42-00	  	2	  	3
	 Combustor
	  	72-42-00	  	3	  	3
	 No. 4 Bearing Compartment
	  	72-43-00	  	3	  	3
	 HPT St. 1 Nozzle Module
	  	72-44-00-01-001	  	3	  	3
	 HPT Module
	  	72-45-00-01-001	  	3	  	3
	 LP Turbine Module
	  	72-50-00-01-001	  	1	  	3
	 Accessory Gearbox Module
	  	72-60-00-01-001	  	1	  	2

  
 10 

 Appendix A –Acceptance Certificate 

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, S.A. DE C.V. (“Lessee”) hereby acknowledges that on
         at                      hours it accepted delivery of the Engine (hereinafter described) pursuant to
the terms of the Lease dated      April 2006 (the “Lease”) made between Engine Lease Finance Corporation (“Lessor”) and Lessee and confirms that:- 

 

	(a)	at                      it has received from Lessor possession of
one V2527M-A5, bearing manufacturer’s serial number V12285, all parts attached thereto and thereon in a new condition, as more particularly described in Annex 1 hereto; 

 

	(b)	following inspection, it has accepted delivery of the Engine “as is where is”; 

 

	(c)	the Engine Flight Hours and Cycles and the Life Limited Parts Flight Hours and Cycles are all zero and such figures shall be used for the purpose of calculating any
payments due to be made by Lessee at the time of Redelivery of the Engine to Lessor; 

  

	(d)	the Engine and the Engine Technical Records as more particularly described in Annex 1 have been delivered to and accepted by Lessee on the Delivery Date and, as between
Lessor and Lessee, are to Lessee’s full satisfaction and in accordance with the provisions of the Lease; 

  

	(e)	the Lease Period commenced on the date of this Certificate and Lessee became obliged to pay to Lessor the amounts provided for in the Lease including in particular a
Deposit of ***** and Rent is ***** payable on the 27th day of each month; 

  

	(f)	the Engine is insured in accordance with the terms of the Lease; 

  

	(g)	all representations and warranties made by Lessee pursuant to the Lease remain and if made on this date, would be true and correct in all respects;

  

	(h)	no Relevant Event has occurred or will result from Delivery taking place; and 

 

	(i)	it has obtained all required permits, authorisations and licences necessary to lease and operate the Engine pursuant to and in accordance with the Lease.

 Words used herein with capital letters and not otherwise defined shall have the same meanings given to them in the Lease.

 IN WITNESS WHEREOF, Lessee has caused this Acceptance Certificate to be executed by its duly authorised officer as of the date first set
forth above. 
 Dated this      day of April 2006 
 Signed for and on behalf of: CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, S.A. DE C.V. 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 11 

 Annex 1 to Appendix A (Acceptance Certificate) 

Description of Engine 
  

	1.	Description 

  

	1.1	Engine Type: New and unused V2527M-A5 in bare configuration with a transportation stand and MPV bag; 

 

	1.2	Serial no.: V12285; 

  

	1.3	Manufacturer: IAE International Aero Engines AG; 

  

	1.4	Transportation Stand: P/N             ; S/N
            ; and 

  

	1.5	Maintenance Programme references: on-wing             ; shop
            . 

  

	2.	Condition 

 The Engine is in the condition
noted in the following documents, copies of which were delivered to Lessee on or before Delivery:- 
  

	2.1	Export certificate of airworthiness at manufacture; 

  

	2.2	Vital Statistics Log; 

  

	2.3	Airworthiness Directive status; and 

  

	2.4	Test cell Report. 

  
 12 

 Appendix B – Redelivery Acceptance Certificate 

ENGINE LEASE FINANCE CORPORATION (“Lessor”) and CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, S.A. DE
C.V. (“Lessee”) hereby acknowledge that on [    ] at [    ] hours the Lessor accepted Redelivery of the Engine (hereinafter described) pursuant to the terms of the Lease dated
[    ] (the “Lease”) made between Lessor and Lessee and confirm that at [Delivery Location] Lessor has received from Lessee possession of:- 

 

	(a)	one V2527M-A5, bearing manufacturer’s serial number [—], all Parts attached thereto and thereon as more
particularly described in Annex 1; and 

  

	(b)	the Engine Technical Records as listed in Section 2 of Schedule 4 of the general terms agreement incorporated by reference into the Lease, including all manuals,
technical records and historical information regarding the Engine and all Parts attached thereto and thereon; 

  

	Lessor	and Lessee also hereby acknowledge that:- 

  

	(c)	the Engine Flight Hours and Cycles since new or last ESV level 1 and ESV Level 2 and the Life Limited Parts Flight Hours and Cycles since new] are as stated in
Annex 2 and that such figures shall be used for the purpose of calculating any payments due to be made by Lessee to Lessor in accordance with the Lease; 

  

	(d)	the Engine and Engine Technical Records are hereby accepted by Lessor subject to (i) the provisions of the Lease and (ii) correction by Lessee within
[number of days] of the discrepancies specified in Annex 3 hereto which Lessee hereby undertakes to correct the discrepancies to the complete satisfaction of Lessor; and 

 

	(e)	the leasing of the Engine by Lessor to Lessee pursuant to the terms of the Lease is hereby terminated without prejudice to Lessee’s continuing obligations under
the terms of the Lease including, without limitation subparagraph (d) above. 

 Words used herein with capital letters and
not otherwise defined shall have the same meanings given to them in the Lease. 
 Dated this [    ] day of
[            ] 
 Signed for and on behalf of: 

 

							
	[CONCESIONARIA VUELA	  		  	ENGINE LEASE FINANCE
	COMPAÑÍA DE AVIACIÓN, S.A. DE C.V.]	  		  	CORPORATION
				
	By:	  	  
	  		  	  

	Name:	  	  
	  		  	  

	Title:	  	  
	  		  	  

  
 13 

 Annex 1 to Appendix B (Redelivery Acceptance Certificate) 

Description of Redelivery Engine 
  

	1.	Description 

  

	1.1	Engine Type: V2527M-A5 in bare configuration with a transportation stand and MPV bag 

 

	1.2	Serial no.: [—] 

  

	1.3	Manufacturer: IAE International Aero Engines AG; 

  

	1.4	Transportation Stand: P/N [            ]; S/N
[            ]; and 

  

	1.5	Maintenance Programme references: on-wing [    ]; shop [            ]

  

	2.	Condition 

 At redelivery the Engine shall
be in the condition noted in Annex 2 to this Redelivery Acceptance Certificate and in the Technical Records listed in Section 2 to Schedule 4 of the GTA 

  
 14 

 Annex 2 to Appendix B (Redelivery Acceptance Certificate) 

Redelivery Condition 

  
 15 

 Annex 3 to Appendix B (Redelivery Acceptance Certificate) 

Engine and Engine Technical Record discrepancies at Redelivery 

  
 16 

 Appendix C - Utilisation Report 

[On Lessee’s headed notepaper] 
 ENGINE MONTHLY UTILISATION REPORT 
  

	TO:	ASSET AND DATABASE MANAGER 

ENGINE LEASE FINANCE CORPORATION 
 SHANNON BUSINESS PARK, 
 SHANNON, CO. CLARE, IRELAND. 

FACSIMILE NO.    +353 61 361785 
 ENGINE TYPE:     V2527M-A5 in bare configuration with a transportation stand and MPV bag 
 M.S.N. [—] 
 REPORT
DATE: [                    ] 

Section 1 must be completed and returned within 10 days after the end of each calendar month and on the termination date. 

Section 2 must be completed after each Engine’s Shop Visit for any reason. 
 SECTION 1 
 Date Installed 

Aircraft Reg. 

Aircraft owner: 

Present wing/tail Location 
 T.S.N. 
 C.S.N. 

Hrs Flown this mth 
 Cycles flown this mth 
 Thrust Rating this mth 

SECTION 2 
 Date last
shop visit 
 TSN at shop visit 
 CSN at shop visit 
 Cycles to next shop visit 

Next limiting component 

IMPORTANT NOTE 
 Attach listing of all
modifications, Airworthiness Directives, service bulletins carried out during each Engine Shop Visit as it occurs. Also attach a copy of the Engine Shop Visit findings report and the latest revision to the Engine’s Life Limited Parts (disk)
profile. 
 Signed: 
 Authorised
Quality Assurance/Engineering Officer 

  
 17 

 ENGINE LEASE FINANCE CORPORATION 

AND 

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, S.A.P.I. DE C.V. 

LEASE EXTENSION AND AMENDMENT AGREEMENT NO.1 IN RESPECT OF 
 THE ENGINE LEASE AGREEMENT DATED 28 April 2006 IN RESPECT OF 
 ONE
(1) V2527M-A5 AIRCRAFT ENGINE MSN V12285 
 Volaris – Extension and Amendment ESN V12285 Execution 

 This Lease Extension and Amendment Agreement No.1 is dated as of the 30 day of September 2011
(“Agreement”) 
 BETWEEN: 
  

	 	(1)	Engine Lease Finance Corporation (the “Lessor”); and 

  

	 	(2)	Concesionaria Vuela Campañía de Aviación, S.A.P.I. de C.V. (formerly known as Concesionaria Vuela Campañía de Aviación, S.A.
de C.V.) (the “Lessee”). 

 WHEREAS: 

 

	(A)	Lessor and Lessee are parties to an aircraft engine lease agreement entitled “Lease No.1”, incorporating the terms of an aircraft engine general terms
agreement (the “GTA”) both dated 28 April 2006 (the “Lease”); and 

  

	(B)	Lessor and Lessee wish to extend the leasing of the Engine under the Lease and to make certain amendments to the Lease as set out in this Agreement.

 IT IS HEREBY AGREED as follows:- 
  

	1.	Words and phrases used in this Agreement and not defined shall have the same meanings as in the Lease and the following words shall bear the following meanings:

 “Conditions Precedent” means: 

 

	 	a.	Evidence satisfactory to Lessor of Lessee’s authority to enter into and perform its obligations under this Agreement and an incumbency certificate containing the
name(s), title(s) and specimen signature(s) of the person or persons authorised to execute this Agreement on behalf of Lessee; 

  

	 	b.	Receipt by Lessor of originals of this Agreement duly executed by all parties; 

 

	 	c.	No Relevant Event or Event of Default having occurred or being continuing on the Effective Date; 

 

	 	d.	Receipt by Lessor of insurance/reinsurance certificates and a letter of undertaking from Lessee’s insurance brokers evidencing satisfactory to Lessor that the
Engine will be insured in accordance with the Lease after the Effective Date; 

 Volaris – Extension and Amendment ESN V12285
Execution 

  
 1 

	 	e.	Evidence of the extension of the appointment by Lessee of the Process Agent and of the Process Agent’s acceptance of such appointment; 

 

	 	f.	Information concerning the Lessee including; (i) adequate disclosure of its current financial condition; and (ii) as may be required to satisfy the “know
your customer” and “anti-money laundering” requirements of Lessor; 

  

	 	g.	No adverse change in the circumstance affecting the aviation/finance markets generally and/or Lessee in particular; 

“Effective Date” means the later to occur of the
27th December 2011 or the date on which Lessor
notifies Lessee in writing that the Conditions Precedent have been satisfied. 
  

	2.	With effect from the Effective Date, Lessor hereby agrees to extend the leasing of the Engine for a Secondary Lease Period of seventy-six (76) months commencing on
the Scheduled Expiry Date (being, for the avoidance of doubt, December 27, 2011). The extension of the leasing of the Engine referred to in this clause 2 is deemed to be made in accordance with the requirements of Clause 2 (Option) of
the Lease. 

  

	3.	Lessor and Lessee agree that with effect from the Effective Date the Lease shall be amended as follows: 

 

	 	a.	Clause 1 (Lease) shall be amended as follows: 

  

	 	(i)	The definition of “Rent” shall be deleted and replaced with the following: 

 

							
		 	 “Rent:    
	    		    	 ***** payable on the 27th day of each month;”

 

	 	(ii)	The definition of “Lessor’s Security” shall be deleted and replaced with the following; 

							
				
		 	“Lessor’s Security:	    		    	Lessee shall have the option to provide a Letter of Credit in compliance with Clause 9 below instead of paying cash LLP Reserves (the “LLP Reserves
LC”);”

 Volaris – Extension and Amendment ESN V12285 Execution 

  
 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 2 

	 	(iii)	The definition of “Level 1 ESV” shall be deleted and replaced with the following: 

 

			
	 “Level 1 ESV:
	    	An Engine Shop Visit at which the minimum workscope applied to each of the Major Modules is not equal to the Minimum eMMP Refurbishment Level for ESV2 as stated in Annex 2
but is at least equal to the Minimum eMMP Refurbishment Level for ESV1 as stated in Annex 2 and with a minimum Life Limited Part build life to be agreed between Lessor and Lessee reflecting Lessee’s expected minimum release life for Life
Limited Parts following the application of such workscope provided always that no Life Limited Part shall have less than 8,000 Cycles remaining to scheduled removal.

  

	 	(iv)	The definition of “Minimum Flight Hours and Cycles remaining on Redelivery” shall be deleted and replaced with the following: 

 

			
	“Minimum Flight Hours Cycles remaining on Redelivery:	    	not more than 5,000 Flight Hours since last Engine Heavy and Maintenance and not less than 2,500 Cycles remaining on any Life Limited Part until the next Engine Heavy
Maintenance;

  

	 	(v)	The definition of “Secondary Lease Period” shall be deleted and replaced with the following: 

 

			
	“Secondary Lease Period:	  	Seventy-six (76) months commencing on the Scheduled Expiry Date;”

  

	 	b.	A new Clause 9 shall be inserted as follows: 

  

	 	“9.	LLP Reserve Letter of Credit Option 

  

	 	9.1	If Lessee elects to provide the LLP Reserves LC, then on or before the Effective Time, Lessee shall procure an irrevocable stand-by letter of credit in form and
substance acceptable to Lessor and issued by a bank reasonably acceptable to Lessor with a minimum long term debt rating of 

Volaris – Extension and Amendment ESN V12285 Execution 

  
 3 

 at least “A” in accordance with Standard & Poor’s rating agency
criteria and confirmed by a bank acceptable to Lessor in either Dublin, Ireland or London, England and otherwise in compliance with the provisions of this Clause 9. 
  

	 	9.2	The LLP Reserves LC shall have a validity of 12 months from the Effective Time (or following the first issue of the Reserves LC, the anniversary of the Effective
Time) and thereafter shall be renewed by the Lessee annually. 

  

	 	9.3	If Lessee fails to provide a renewal LLP Reserves LC on any annual renewal date during the Lease Period or if at any time the LLP Reserves LC ceases to be valid and
effective or if any Relevant Event occurs, at Lessor’s option and upon written notice to Lessee, Lessee shall promptly pay to Lessor the applicable cash amount notified by Lessor to Lessee which shall be the amount in respect of LLP Reserves
owing up to the date of calculation pursuant to the terms of this Lease and thereafter Lessee shall pay LLP Reserves in accordance with Clause 4 of the GTA. Upon receipt of the cash amount as per this Clause 9.3, Lessor shall return any
LLP Reserves LC to the Lessee for cancellation. 

  

	 	9.4	The initial LLP Reserves LC and each annual renewal of the LLP Reserves LC shall be calculated as the aggregate of the following:- 

 

	 	(a)	the actual amount of Cycles used on each Life Limited Part at the end of the calendar month prior to the Effective Date multiplied by the then current cost per Cycle
(using a 7% Stub Life) of such Life Limited Part; and 

  

	 	(b)	the then current LLP Reserve rate multiplied by the average annual utilization in Cycles of Lessee’s V2500 powered A320 fleet. 

 

	 	9.5	Upon receipt of the original LLP Reserves LC in the amounts required as per this Clause 9, subject to the terms and conditions of this Lease, Lessor shall refund the
amount of LLP Reserves currently held and shall waive Lessee’s obligation to pay LLP Reserves in cash. 

  

	 	c.	Annex 2 shall be deleted and replace with Annex 2 attached hereto. 

  

	4.	Lessee and Lessor shall each bear their own costs and expenses incurred in connection with this Agreement. 

 

	5.	The representations, warranties and covenants of Lessee set out in Clause 9.1 of the GTA are repeated on the date hereof and on the Effective Date as if they were made
in respect of this Agreement. In addition, Lessee represents that as of the date hereof that the Engine was imported into Mexico by Lessee under a temporary import permit and that this will continue to be the case for the remainder of the Lease
Period (as extended hereby). 

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 4 

	6.	Save as varied by this Agreement, or the subsequent written agreement of the parties, all of the terms and conditions of the Lease shall continue in full force and
effect throughout the Lease Period and this Agreement shall not constitute a novation of the Lease but only an extension and amendment thereof. 

  

	7.	This Agreement is a Lessee Document. 

  

	8.	Paragraph (a) of Clause 18.7 (Counterparts) and Clauses 18.3 (Further Assurance), 18.9 (Confidentiality), 18.12 (Notices) and 18.13 (Jurisdiction)
of the GTA shall apply, mutatis mutandis, to this Agreement. 

 IN WITNESS WHEREOF, this Agreement has been signed
on behalf of the parties hereto the date and year first above written. 
 Volaris – Extension and Amendment ESN V12285 Execution

  
 5 

 SIGNED for and on behalf of  
 ENGINE LEASE FINANCE CORPORATION 
  

			
	By:	 	/s/ Tom Barrett
	 Name:
	 	 Tom Barrett

	Title:	 	Executive Vice President, Chief Financial & Administrative Officer

 SIGNED for and on behalf of  
 CONCESIONARIA VUELA COMPAÑÍA de AVIACIÓN, S.A.P.I. de C.V. 
  

			
	 By:
	 	 /s/ Mario E. Geyne

	 Name:
	 	 Mario E. Geyne

	 Title:
	 	 Financial and Fleet Planning Director

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 6 

 Annex 2 

ESV Base Compensation Rate \ Hourly Reserve 

 

																							
	 Cycle Ratio
	 	1.00-1.19	 	1.20-1.39	 	1.40-1.59	 	1.60-1.79	 	1.80-1.99	 	2.00-2.19	 	2.20-2.39	 	2.40-2.59	 	2.60-2.79	 	2.80-2.99	 	>2.99
	 US$ per Flight Hour
	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****

 ESV Level 1 Compensation Rate 

 

																							
	 Cycle Ratio
	 	1.00-1.19	 	1.20-1.39	 	1.40-1.59	 	1.60-1.79	 	1.80-1.99	 	2.00-2.19	 	2.20-2.39	 	2.40-2.59	 	2.60-2.79	 	2.80-2.99	  	>2.99
	 US$ per Flight Hour
	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	  	*****

 ESV Level 2 Compensation Rate 

 

																							
	 Cycle Ratio
	 	1.00-1.19	 	1.20-1.39	 	1.40-1.59	 	1.60-1.79	 	1.80-1.99	 	2.00-2.19	 	2.20-2.39	 	2.40-2.59	 	2.60-2.79	 	2.80-2.99	 	>2.99
	 US$ per Flight Hour
	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****

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 ***** Confidential portions
of the material have been omitted and filed separately with the Securities and Exchange Commission. 
 7

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