Document:

EX-10.18

 Exhibit 10.18 
 Note: Certain portions have been omitted from this Agreement in accordance with a request for confidential treatment submitted to the Securities and Exchange Commission. Omitted information has been
replaced with an asterisk. Omitted information has been filed separately with the Securities and Exchange Commission. 
  

 
 RATE PER FLIGHT HOUR AGREEMENT 

FOR 

LEAP-1A 

ENGINE SHOP MAINTENANCE SERVICES 
 BETWEEN 
 CFM INTERNATIONAL, INC. 

AND 

AVIANCATACA HOLDING S.A. 
 Service Agreement Number: 1-2887169891 
 Dated: February 6, 2013 

PROPRIETARY INFORMATION NOTICE 

The information contained in this document is CFM International, Inc. (“CFM”) and AVIANCATACA HOLDING S.A.
(“AVIANCATACA”) Proprietary Information and is disclosed in confidence. It is the property of the Parties and will not be used, disclosed to others or reproduced without the express written consent of the Parties. If consent is
given for reproduction in whole or in part, this notice and the notice set forth on each page of this document will appear in any such reproduction. U.S. export control laws may also control the information contained in this document. Unauthorized
export or re-export is prohibited. 
 SGR/10521962.2 

 TABLE OF CONTENTS 

 

							
	1.0	  	DEFINITIONS	  	 	3	  
			
	2.0	  	SCOPE OF THE SERVICE AGREEMENT	  	 	3	  
			
	3.0	  	TERM OF THE SERVICE AGREEMENT	  	 	3	  
			
	4.0	  	ENGINES AND OPERATING PARAMETERS	  	 	3	  
			
	5.0	  	CFM SERVICE PROGRAM	  	 	4	  
			
	6.0	  	[*]	  	 	5	  
			
	7.0	  	[*]	  	 	7	  
			
	8.0	  	[*]	  	 	8	  
			
	9.0	  	[*]	  	 	8	  
			
	10.0	  	[*]	  	 	8	  
			
	11.0	  	[*]	  	 	9	  
			
	12.0	  	[*]	  	 	9	  
			
	13.0	  	COMMUNICATION	  	 	10	  
			
	14.0	  	GENERAL TERMS AND CONDITIONS	  	 	10	  

  
 2 

CFM PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

 THIS RATE PER FLIGHT HOUR AGREEMENT FOR ENGINE SHOP MAINTENANCE
SERVICES (“Service Agreement”) is made this 6th day of February, 2013, by and between AviancaTaca Holding S.A., a company duly organized under the laws of Panama having a principal place of business at Centro Administrativo, Avenida El Dorado,
Bogota, Colombia (“AVIANCATACA”), and CFM International, Inc., having its principal place of business at 6440 Aviation Way, West Chester, Ohio 45069 USA (“CFM”), (each a “Party” and
collectively referred to herein as “Parties”). 
 WHEREAS, AVIANCATACA desires to enter into the Service
Agreement with CFM whereby CFM will perform or cause to be performed the maintenance, repair, and overhaul of certain LEAP-1A engines operated by AVIANCATACA (“MRO”). 

WHEREAS, CFM agrees to provide or cause to be provided such MRO services. 

NOW THEREFORE, in consideration of the mutual covenants herein contained, the Parties agree as follows: 

 

	1.0	DEFINITIONS 

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

	2.0	SCOPE OF THE SERVICE AGREEMENT 

 This Service Agreement contains the terms and conditions applicable to the sale by CFM and the purchase by AVIANCATACA of the CFM Service Program. 

The Engines covered by this Service Agreement are described in Article 4. 

CFM will provide the Covered Services on the basis of a combination of a Popular Rate and a Restored Rate per Engine Flight Hour covering
each Engine for a period of fifteen (15) years from the date of each Engine delivery to AVIANCATACA. 
 [*] 

 

	 	•	 	 At the time of a Qualified Shop Visit, by multiplying a Restored Rate per Engine Flight Hour by the Engine Flight Hours accumulated from Entry Into
Service or since the last Qualified Shop Visit for that Engine. 

 During the term of this Service Agreement,
CFM shall be the exclusive provider of the CFM Service Program and all Parts installed into Engines for Covered Services. 
  

	3.0	TERM OF THE SERVICE AGREEMENT 

 This Service Agreement will commence on the date of execution of this Service Agreement, (the “Commencement Date”). Each Engine will be covered by this Service Agreement for the period
beginning on the delivery date of such Engine to AVIANCATACA and covered for a period of fifteen (15) years, as specified in Exhibit B. 
 [*]. 
  

	4.0	ENGINES AND OPERATING PARAMETERS 

 The Engines covered by this Service Agreement and the base operating parameters are set forth on Exhibit B. 

  
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 CFM
PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

	5.0	CFM SERVICE PROGRAM 

  

	5.1	Covered Services 

  

	5.1.1	[*] 

 [*]

 An Engine Delivered by AVIANCATACA against or without the advice and consent of the CFM Program Manager or his delegate will
not initially be considered a Qualified Shop Visit, and the shop visit will be charged to AVIANCATACA as Supplemental Services, unless it is determined after Delivery that the Engine qualifies. A shop visit will not be considered a Qualified Shop
Visit if the Engine has been operated outside of applicable AMM instructions or limits or in conflict with applicable on-wing maintenance manuals, or has not undergone appropriate troubleshooting per CFM’s written recommendations under
applicable manuals. Furthermore, for shop visits to be qualified requires AVIANCATACA to comply with CFM’s recommended requirements for a core water wash program as directed by the CFM Program Manager. 

[*]: 
  

	 	a.	[*] 

  

	 	b.	[*] 

  

	 	c.	[*] 

  

	 	d.	[*] 

  

	 	e.	[*] 

  

	 	f.	[*] 

  

	 	g.	[*] 

  

	 	h.	Correction of Major FOD, which shall include all labor, materials and parts necessary to return the Engine to Serviceable condition, where an Engine or module requires
Services for, or as a result of Major FOD, up to a maximum amount for each Engine equal to the lesser of any insurance deductible covering such Major FOD event or five hundred thousand U.S. Dollars (U.S. $500,000.00)). 

 

	 	i.	For Engines undergoing a shop visit initiated by a requirement for Supplemental Services to be performed, restoration and parts replacement which would have been
performed as Covered Services had the event or condition which initiated the requirement for Supplemental Services not occurred, will nevertheless be performed as Covered Services and AVIANCATACA will pay applicable Rates. 

 

	5.1.2	[*] 

  

	5.1.3	Engine Management Services and Diagnostic Services 

 CFM will provide the following diagnostics services: 
  

	 	a.	Engine condition data will be automatically processed by diagnostics software 24 hours a day, 7 days a week (“24x7”) when received at the designated
CFM facility. CFM will be responsible for operating and maintaining the diagnostics software and the necessary facilities. AVIANCATACA shall have access to the web-based tools for reviewing Engine condition data and assessing Engine health.

  

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

  

	 	c.	Monthly Engine thrust derate report. 

  

	 	d.	Access to diagnostics engineers for Engine diagnostic support and consultation as required. 

 

	 	e.	Periodic teleconference to review reports and program status. 

  

	 	f.	Weekly engine health trend summary and analysis reports. 

 AVIANCATACA acknowledges and agrees that any such information provided to AVIANCATACA by CFM for use in troubleshooting and managing operations is, for regulatory purposes, advisory only, that CFM is not
responsible for line maintenance or other actions or consequences resulting from such advice, and for purpose of compliance with AAA requirements, AVIANCATACA is solely responsible for identifying and resolving any aircraft or Engine faults or
adverse trends. 

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

	5.1.4	[*] 

  

	 	A.	[*] 

  

	 	B.	[*] 

 [*] may be amended from
time to time (the “IATA Master”) together with a lease agreement substantially in the form of Annex 2 thereto incorporating, subject to the terms and conditions contained in such lease agreement, the terms of the IATA Master.

  

	 	C.	[*] 

  

	 	D.	Sole Remedy: 

 The
foregoing provisions of this Paragraph 5.1.4 will constitute the sole remedy of AVIANCATACA and the sole liability of CFM for lease engine availability and resolution of AOG conditions under this Service Agreement. 

 

	5.2	Additional Services 

  

	5.2.1	[*] 

  

	5.2.2	CFM Engineering Support Services 

 CFM will provide the following engineering support services: 
  

	 	a.	Notify AVIANCATACA of any deviations from the configuration specification of Engines Delivered for Service, and request resolution of same. 

 

	 	b.	Provide an Engine findings report (which may include photographs identifying damage detected and repairs) accomplished. 

 

	 	c.	Consultation on trend reports. 

  

	 	d.	Advice covering Engine enhancements. 

  

	 	e.	CFM will work with AVIANCATACA in inspection of records for used engines being considered by AVIANCATACA for acquisition and shop visit development for return of leased
engines, but AVIANCATACA shall be solely responsible for making the final determination as to the quality of the used engines. 

  

	5.3	[*] 

 [*] 

 

	6.0	[*] 

  

	6.1	CFM Fulfillment 

CFM may in CFM’s sole discretion delegate to or purchase from any CFM Designated Repair Station, provided the applicable CFM
Designated Repair Station has been approved by AVIANCATACA and added into AVIANCATACA’s AAA approved maintenance program, such approval and addition not to be unreasonably withheld, part or all of any obligation, right or benefit of CFM for the
performance of the CFM Service Program in conformance with the Repair Specification. CFM shall cooperate with AVIANCATACA to minimize the burden and expense of adding and approving such DRS to AVIANCATACA’s approved vendors list, and to provide
the information required to obtain approval from the Aviation Authorities. 
 CFM will provide the requirements of the Repair
Specification to the CFM Designated Repair Station and allow AVIANCATACA reasonable access to such facilities to perform its duties as the AVIANCATACA operator certificate holder. 

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

 The CFM Designated Repair Station shall be any CFM overhaul facility designated by CFM and
listed in Exhibit H and approved by AVIANCATACA as specified above. In the event the CFM Designated Repair Station loses its applicable AAA certifications to perform Services, CFM will direct such DRS to cease work immediately on all AVIANCATACA
Equipment until such certification is restored. CFM may designate an alternate CFM Designated Repair Station and transport the Equipment to such alternate DRS at no cost and expense to AVIANCATACA. AVIANCATACA shall maintain approvals and
qualifications at both GE Engine Services and Snecma facilities. Should CFM change the DRS, AVIANCATACA’s obligations under this Agreement, including transportation expenses, will be no greater than if such Services were performed at the
original DRS. 
  

	6.2	Procedure 

  

	 	a)	AVIANCATACA shall Deliver the Engine to the CFM Designated Repair Station. 

 

	 	b)	AVIANCATACA shall issue a purchase order to CFM and CFM shall accept the purchase order to the extent it complied with this Service Agreement, CFM shall process the
performance of the Services in accordance with the AVIANCATACA requirements specified in such purchase order, provided that, in any event, any conflicting terms and conditions of this Service Agreement shall take precedence over any terms and
conditions set forth on such purchase order or CFM acceptance document. 

  

	 	c)	AVIANCATACA shall provide all applicable Engine records, as required by the AAA or as reasonably requested by CFM, and the shop visit data listed in Exhibit C to the
extent that the data is not otherwise available to CFM. 

  

	 	d)	Following Delivery of each Engine at the CFM Designated Repair Station, together with the documents described in Paragraphs (b), and (c) above, CFM shall
diligently perform or cause to be performed the Induction of the Engine and shall proceed with the Services requested by such purchase order in accordance with Paragraph (b) above. 

 

	 	e)	CFM will inform AVIANCATACA as to whether the shop visit meets the criteria for a Qualified Shop Visit within a commercially reasonable period of time, not to exceed
two (2) weeks after Induction of the Engine. 

  

	 	f)	Upon Induction, CFM will notify AVIANCATACA of any components or LRU’s missing from the Engine. CFM will replace such missing items at AVIANCATACA’s expense
as Supplemental Services, unless (i) AVIANCATACA notifies CFM in writing within forty eight (48) hours after receiving CFM’s notice that AVIANCATACA wishes to furnish such missing items; and (ii) AVIANCATACA delivers such missing
items to the CFM Designated Repair Station within three (3) weeks. 

  

	 	g)	CFM shall Redeliver a Serviceable Engine to AVIANCATACA. 

  

	 	h)	CFM will prepare and package the Serviceable Engine in shipping stands or containers provided by AVIANCATACA at the time of Delivery in accordance with CFM’s
standard commercial practices. 

  

	 	i)	CFM shall provide AVIANCATACA with copies of all work records required by AAA as agreed to in writing by CFM and AVIANCATACA. 

 

	 	j)	CFM shall use only CFM approved parts, materials and published repairs; CFM may not use any non-OEM repairs without AVIANCA/TACA’s prior approval, which may be
withheld for any reason. Any deviations from this requirement will require AVIANCATACA’s approval in advance of fitment to the Engine. For parts that are typically time tracked during the course of an overhaul, no replacement part may have a
TSN which exceeds the TSN of the Engine in which it is to be installed or of the part which it is replacing. Any replacement part must have a modification and SB status at least as high as that of the part which it is replacing.

  

	6.3	Workscope and Repair Specification 

 At least thirty (30) Days in advance of the Delivery, for scheduled Shop Visits with a routine Workscope, and upon Induction of the Engine in all other cases, CFM will prepare a preliminary Workscope
based on its analysis of such Engine’s trends, AD requirements and any requests from AVIANCATACA, and provide a copy of such Workscope to AVIANCATACA. CFM may recommend amendment to the Repair Specification and recommend inclusion in
preliminary Workscopes to include reliability and performance enhancements and AAA-approved repairs during the Term hereof to improve Engine operating characteristics and incorporate OEM-approved repairs, subject to

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

 
AVIANCATACA’s comments and approval which, provided there is no cost or operational impact, will not be unreasonably withheld, conditioned or delayed. The final Workscope must be approved in
writing by AVIANCATACA before restorative Services commence. Any changes or amendments to the Repair Specification will be mutually agreed by the Parties and may, to the extent requested by AVIANCATACA, result in an adjustment in the pricing set
forth in Article 7. 
 LLP Minimum Build for Performance Restoration Shop Visits will be 8000 cycles for LEAP-1A24, 7000 cycles
for LEAP-1A26 and LEAP-1A32, and any LLP which do not meet such minimum build shall be replaced by new Parts. 
 Engines already
qualified for the TRUEngine program that are maintained under this Service Agreement will maintain their TRUEngine status. Other engines added to the Service Agreement will be added to the TRUEngine program upon meeting qualification requirements as
the result of Services and inspections performed during this Service Agreement. 
 CFM may propose, subject to agreement by
AVIANCATACA and/or its lessors, to replace an Engine with a new or used engine for either program or commercial reasons. Any such replacement engine shall be in a similar or higher configuration as the removed Engine. 

AVIANCATACA acknowledges that CFM does not have information regarding non-CFM approved material and repairs and their design
characteristics, manufacturing, material or any potential system effects arising from their use and maintenance. AVIANCATACA further acknowledges that CFM, as the OEM of the Engine, only has knowledge and expertise on the components and repairs CFM
has developed within the whole Engine, taking into account the system effects environment and continued airworthiness support. 

Accordingly, AVIANCATACA recognizes and agrees that CFM is not able to make technical assessments or recommendations with respect to
non-CFM approved material and repairs, nor support or maintain such materials or repairs. The terms and conditions of the Services reflected in the present Service Agreement are predicated on CFM’s capabilities as described above. 

 

	6.4	[*] 

  

	6.5	[*] 

 In the event an
Engine is Delivered with parts or components or QEC equipment in addition to the basic configuration, such Engine shall be Redelivered in the same configuration as Delivered, unless otherwise mutually agreed by the Parties. Any work performed to
return such parts or components or QEC equipment in a Serviceable condition will be charged to AVIANCATACA as Supplemental Services. 
 The Engine Redelivered to AVIANCATACA will have incorporated Airworthiness Directives and CFM Service Bulletins as specified in Article 5.1.1. 

To the extent allowed under Article 6.2, CFM may elect to use used Rotable Parts, and/or repaired parts in Serviceable condition in
Engines Redelivered to AVIANCATACA, and such Rotable Parts, and/or repaired parts will be a CFM part of similar configuration as the parts in the Engine Delivered to CFM. 

 

	6.6	[*] 

  

	7.0	[*] 

  

	7.1	*    [Two pages have been omitted in accordance with a request for confidential treatment.] 

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

	7.2	[*] 

  

	7.3	[*] 

 In the event of
termination of this Service Agreement due to any reason other than the material breach by CFM, such credits will be cancelled and any amount issued and applied as of the time of termination shall be refunded to CFM by AVIANCATACA within thirty
(30) Days of termination of this Service Agreement. 
  

	8.0	[*] 

  

	8.1	[*] 

  

	8.2	[*] 

  

	8.2.1	[*] 

  

	8.3	[*] 

  

	9.0	[*] 

  

	9.1	[*] 

  

	9.1.1	[*] 

  

	9.1.2	[*] 

  

	9.2	[*] 

  

	9.3	[*] 

  

	9.4	[*] 

  

	10.0	[*] 

  

	10.1	[*]. 

  

	10.2	Packaging 

AVIANCATACA is responsible for all packaging, labeling and associated documentation of the Engine at Delivery, in accordance with the
International Civil Aviation Organizations (ICAO) Technical Instructions for the Safe Transport of Dangerous Goods by Air, and if the Engine is to be transported over the United States of America, the US Department of Transport Regulations 48 CFR
171-180. If required by applicable law or regulations, AVIANCATACA will further provide a material safety data sheet to CFM at Delivery of the Engine indicating any substances contained within the Engine to be consigned. AVIANCATACA will indemnify,
defend and hold harmless CFM from all or any claims, liabilities, damages, judgments, costs, penalties, fines and/or any punitive damages imposed, alleged, or assessed by any third party against CFM and caused by and to the extent of
AVIANCATACA’s non-compliance with this Article 10.2. 
  

	10.3	Shipping Stands 

AVIANCATACA will provide and maintain all shipping stands, shipping containers, mounting adapters, inlet plugs and covers, required to
package the Engine for Delivery and Redelivery. 

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

	10.4	Redelivery 

 After
completion of Services, CFM will prepare and package the Engine for Redelivery to AVIANCATACA and provide a Services records package that complies with AAA regulations. 
 Redelivery dates are based upon receipt by CFM of all information necessary to permit CFM to proceed with the Services immediately and without interruption. 

In the event Redelivery of an Engine cannot occur due to any act or failure to act by AVIANCATACA, CFM may place such Engine into storage.
In such event, CFM will notify AVIANCATACA and CFM’s Redelivery obligations will be deemed fulfilled and all risk of loss or damage to the Engine shall pass to AVIANCATACA on the date of such storage. Any amounts payable to CFM upon Redelivery
will be payable thirty (30) days after the date of CFM’s invoice. Promptly upon receipt of CFM’s invoice, AVIANCATACA will reimburse CFM for all expenses incurred by CFM, including, but not limited to, preparation for and placement
into storage, handling, inspections, preservation and insurance of the Engine. Upon payment of all amounts due hereunder, CFM will assist and cooperate with AVIANCATACA in the removal of Engine that has been placed in storage. 

AVIANCATACA will indemnify, defend and hold harmless CFM from all or any claims, liabilities, damages, judgments, costs, penalties, fines
and/or any punitive damages imposed, alleged, or assessed by any third party against CFM and caused by and to the extent of AVIANCATACA’s non-compliance with this Article 10.4. 

 

	11.0	[*] 

  

	11.1	[*] 

  

	11.2	[*] 

  

	11.3	[*] 

  

	12.0	[*] 

  

	12.1	[*] 

  

	12.2	Removal of Engines 

AVIANCATACA may remove an Engine from this Service Agreement upon advance written notice, only if AVIANCATACA is no longer operating the
Engine and is no longer responsible for maintenance of the Engine for the following reasons: 
  

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

 

	 	b.	An unplanned return to the lessor; or 

  

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

 In all cases of Engine removal, provided that AVIANCATACA is in compliance with Article 6.6, AVIANCATACA may select which Engine will be removed, provided that the engine(s) being removed is
representative of a fleet average engine, unless AVIANCATACA’s lessor dictates otherwise.
 Any Engine removal will be
subject to the reconciliation provisions set forth below. 
  

	12.2.1	Reconciliation. The following applies to Engines removed as a result of a removal per Paragraph (a), (b) or (c) above: 

 

	 	a.	If a removed Engine has not undergone a Qualified Shop Visit for Covered Services, no penalties nor reconciliation will apply. CFM will retain the Popular Rate billings
through the date of removal. 

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

	 	b.	If a removed Engine has undergone at least one (1) Performance Restoration Shop Visit for Covered Services, no penalties nor reconciliation will apply. CFM will
retain the Popular Rate billings through the date of removal. 

  

	 	c.	If a removed Engine has undergone at least one Qualified Shop Visit for Covered Services, but not a Performance Restoration Shop Visit, CFM will calculate the total
cumulative charges for all Covered Services provided for such removed Engine as if such Services were provided on a Supplemental Services basis and the Supplemental Services pricing had applied (“Supplemental Charges”). CFM will
then compare such Supplemental Charges to the total cumulative Restored Rate Covered Services payments received from AVIANCATACA for such removed Engine. If the Supplemental Charges are greater than the total cumulative Restored Rate Covered
Services payments received from AVIANCATACA, CFM will invoice AVIANCATACA for the difference, together with a detailed explanation of the calculations reflected in such invoice. AVIANCATACA will pay such invoice within thirty (30) Days of
receipt. If the Supplemental Charges are less than the total cumulative Restored Rate Covered Services payments received from AVIANCATACA, CFM will credit to AVIANCATACA within thirty (30) Days the difference between the total cumulative
Restored Rate Covered Services payments received from AVIANCATACA and the Supplemental Charges. CFM will retain the Popular Rate billings through the date of removal. 

 

	12.2.2	Impact of Removals. CFM will evaluate the effect of the removal from the Service Agreement of more than forty percent (40%) of the Engines from the
AVIANCATACA fleet on the Rate Per Flight Hour pricing, taking into consideration effects on the fleet size, age and condition of the Engines. CFM may adjust the Rate Per Flight Hour pricing accordingly if the number of Engines covered by the Service
Agreement decreases to less than sixty percent (60%) of the total fleet of Engines operated by AVIANCATACA, without taking into account any engines that are added to the program in accordance with Article 12.1. In such event, the adjusted Rate
Per Flight Hour pricing will be mutually agreed and the Service Agreement will be amended accordingly. AVIANCATACA will pay the adjusted Rate Per Flight Hour pricing for all EFH incurred by all Engines that remain covered by the Service Agreement
from the date of the Engine removal that triggered the rate adjustment. 

 In the event the Parties do not agree on
the adjusted Rate Per Flight Hour pricing within ninety (90) Days from the date of the Engine removal that triggered the rate adjustment, CFM may terminate this Service Agreement upon written notice to AVIANCATACA. 

 

	13.0	COMMUNICATION 

 CFM will
assign a program manager who will be the point of contact for AVIANCATACA with respect to implementation of the CFM Service Program (“CFM Program Manager”). 
 AVIANCATACA will also designate a point of contact to communicate with the CFM Program Manager. 
 The CFM Program Manager will: 
  

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

 

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

  

	14.0	GENERAL TERMS AND CONDITIONS 

 General terms and conditions provided in Exhibit I are an integral part of this Service Agreement. 

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

 Counterparts: This Service Agreement may be signed by the Parties in separate
counterparts, and any single counterpart or set of counterparts, when signed and delivered to the other Parties shall together constitute one and the same document and be an original Service Agreement for all purposes. 

IN WITNESS WHEREOF, the Parties hereto have executed this Service Agreement as of the day and the year first above written. 

 

			
	CFM INTERNATIONAL, INC.
		
	BY:	  	  

	
	  

			
		
	PRINTED NAME:	  	  

	
	  

			
		
	TITLE:	  	  

	
	  

			
	AVIANCATACA HOLDING S.A.
		
	BY:	  	  

	
	  

			
		
	PRINTED NAME:	  	  

	
	  

			
		
	TITLE:	  	  

	
	  

 
 

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

 EXHIBITS 

 

			
	EXHIBIT A:	  	DEFINITIONS
		
	EXHIBIT B:	  	[*]
		
	EXHIBIT C:	  	[*]
		
	EXHIBIT D:	  	[*]
		
	EXHIBIT E:	  	[*]
		
	EXHIBIT F:	  	[*]
		
	EXHIBIT G:	  	[*]
		
	EXHIBIT H:	  	[*]
		
	EXHIBIT I:	  	GENERAL TERMS AND CONDITIONS
		
	EXHIBIT J:	  	[*]

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

 EXHIBIT A: DEFINITIONS 

Capitalized terms used herein but not otherwise defined have the following meanings: 
 “Act of God” - An event that directly and exclusively results from the occurrence of natural causes beyond the reasonable control of the Parties. 

“Additional Services” - The Services described in Article 5.2. 
 “Aircraft Accident” - An occurrence caused by the operation of an aircraft in which any person suffers a fatal injury or serious injury as a result of being in or upon the aircraft or by
direct contact with the aircraft or anything attached to the aircraft, or in which the aircraft receives damage or a third party’s property is damaged in any way. 
 “Aircraft Incident” - An occurrence, other than an Aircraft Accident, caused by the operation of an aircraft that affects or could affect the safety of operations and that is investigated
and reported. 
 “Airworthiness Directive” or “AD” - A document issued by the AAA having jurisdiction over the
Engines, identifying an unsafe condition relating to such Engines and, as appropriate, prescribing inspections and the conditions and limitations, if any, under which the Engines may continue to operate. 

“AMM” - Aircraft Maintenance Manual. 
 “Approved Aviation Authority” or “AAA” - As applicable, the FAA, EASA, the Aeronáutica Civil of Colombia, Dirección General de Aviación Civil of
Ecuador, Autoridad de Aviacion Civil of El Salvador, Directorate General of Civil Aviation of Costa Rica or Dirección General de Aeronáutica Civil del Peru. 
 “Beyond Economic Repair” or “BER” - When the cost, calculated on a Supplemental Services basis, to restore an Engine to the requirements of the Repair Specification
exceeds sixty five percent (65%) of the fair market value of a comparable Serviceable engine. 
 “CFM Designated Repair
Station” or “CFM DRS” or “DRS” - The repair facilities designated by CFM, which are certified by the AAA to perform the Services hereunder and where Services are performed on Engines. 

“CFM Program Manager” - Has the meaning provided in Article 13. 
 “CFM Service Program” - All off-wing work required on an Engine to restore the Engine to Serviceable condition in accordance with the Repair Specification, the Workscope and the terms of
this Service Agreement, including Supplemental Services. 
 “CLP” - The manufacturer’s Current catalog or
manufacturer’s Current list price pertaining to a new Engine or part thereof. 
 “Commencement Date” - Has the meaning
provided in Article 3. 
 “Contracted Months” - Has the meaning provided in Article 7.3. 

“Covered Services” - The Services described in Article 5.1. 
 “Current” - As of the time of the applicable Service or determination. 

“Day” - Calendar day unless expressly stated otherwise in writing. If performance is due on a public holiday recognized by the CFM DRS,
performance will be postponed until the next business day (Monday through Friday). 

  
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 “Delivery” - The arrival of an Engine together with all applicable records and required
data Delivery Duty Paid (“DDP”), International Chamber of Commerce, Incoterms 2010, at the CFM Designated Repair Station, whereby AVIANCATACA fulfills the obligations of seller and CFM fulfills the obligations of buyer.
“Deliver” will mean the act by which AVIANCATACA accomplishes Delivery. 
 “Delivery Point” - in the case of
Flightline LRU Support, means the CFM facility located in Villaroche, France. 
 “Dollars” or “U.S. $” - The
lawful currency of the United States of America. 
 “EASA” - the European Aviation Safety Authority, 

“Engine” - Each bare engine assembly or, as applicable, Engine module, which is covered by this Service Agreement and identified in
Exhibit B, including its essential components as described in Exhibit F. 
 “Engine Flight Hour” or “EFH” -
Engine flight hour expressed in hourly increments of aircraft flight from wheels up to wheels down. 
 “Entry Into Service” -
The date when the Engine is delivered to AVIANCATACA by the airframer or by CFM, as a New Engine. 
 “FAA” - Federal Aviation
Administration of the United States 
 “FIM” - Fault Isolation Manual. 

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

“GTA” - the General Terms Agreement between CFM and AVIANCATACA, No. CFM-1-2887169891, dated February 6, 2013. 

“IATA Master” - Has the meaning provided in Article 5.1.4. 
 “Induction” - The date work commences on the Engine at the CFM Designated Repair Station when all of the following have taken place: (i) CFM’s receipt of the Engine and required
data, (ii) Parties’ approval of the preliminary Workscope, (iii) CFM’s receipt of an acceptable purchase order, (iv) Parties’ agreement on use of the AVIANCATACA furnished equipment; and (v) receiving inspection
(including pre-testing if needed). 
 “Life Limited Part” or “LLP” - A part with a limitation on use
established by CFM or the AAA, stated in cumulative EFH or cycles. 
 “LLP Minimum Build” - The minimum quantity of cycles
and/or hours that every LLP must have at the completion of a Performance Restoration Shop Visit. The LLP Minimum Build shall be the threshold used to determine which LLP are replaced at a Performance Restoration Shop Visit. 

“Line Replaceable Unit” or “LRU” - A major control or accessory that is mounted on the external portion of an Engine,
as listed in Exhibit F. 
 “MRO” shall have the meaning provided in the recitals. 

“New Engine” - An Engine which has not undergone a shop visit, which has less than one hundred (100) EFH since new and which
contains only CFM approved parts and CFM approved repairs. 
 “On-Site Support” or “OSS” - Has the meaning
provided in Article 5.2.1. 

  
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 “Part” - A part originally sold by CFM. 

“Performance Restoration Shop Visit” - The Services, performed during a shop visit in which, at a minimum, the following modules are
exposed, disassembled and subsequently refurbished: the high-pressure turbine, combustor and the high pressure compressor, if required to retain the performance of the high-pressure compressor. If the LLP core stack is replaced, it is considered a
Performance Restoration Shop Visit. 
 “Pool” - means the collective reference to Serviceable LRU necessary for Standard
Exchange as listed in Exhibit J. 
 “Popular Rate” or “Popular Rate per Engine Flight Hour” - The Popular Rate
per Engine Flight Hour provided in Article 5.1 and priced in accordance with Article 7.1. 
 “Primary Hub” - The main airport
where AVIANCATACA performs the majority of its engine removal off wing. 
 “Procedures Manual” - A separate document, not part
of this Service Agreement, which provides detailed procedures and guidance for the administration of the Service Agreement. In case of conflict between the Procedures Manual and the Service Agreement, the Service Agreement will prevail. 

“Qualified Shop Visit” - Has the meaning provided in Article 5.1.1. 
 “QEC” - Quick Engine Change. 
 “Rate” or “Rate Per
Engine Flight Hour” - The rate for Covered Services or Additional Services as set forth in Article 7. 
 “Redelivery”
- The shipment of a Serviceable Engine with legally required certifications, Ex Works, International Chamber of Commerce, Incoterms 2010, at the CFM Designated Repair Station, whereby AVIANCATACA fulfills the obligations of buyer and CFM fulfills
the obligations of seller. “Redeliver” will mean the act by which CFM completes Redelivery. 
 “Removal
Schedule” - The schedule jointly developed by CFM and AVIANCATACA for Engine removal off wing for Services or Engine removal from operation. 
 “Repair” - In the case of Flightline LRU Support, means the disassembly, inspection, repair, reassembly and test when applicable, of an LRU in accordance with the applicable CFM shop
manual and/or documents (such as vendor’s CMM) approved and authorized by the EASA or FAA, as applicable. 
 “Repair
Specification” - The AVIANCATACA repair specification which establishes the minimum baseline to which an Engine or part thereof will be inspected, repaired, modified, reassembled and tested to make and Engine Serviceable. Such Repair
Specification will meet or exceed the recommendations of CFM’s operational specifications, applicable CFM maintenance or overhaul manuals and AVIANCATACA’s maintenance plan that has been approved by the AAA. 

“Repairable” - Capable of being made Serviceable. 
 “Restored Rate per Engine Flight Hour” or “Restored Rate” - Services provided pursuant to Article 5.1 and priced in accordance with Article 7.1. 

“Rotable Part” - A new or used Serviceable Part drawn from a common pool of Parts used to support one or more customers. A Rotable Part
replaces a similar Part removed from an Engine when such removed Part requires repair. 
 “Service(s)” - With respect to an
Engine or part thereof, all or any part of those maintenance, repair and overhaul services provided under this Service Agreement as either Covered Services or Supplemental Services. “Serviced” will be construed accordingly.

  
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PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

 “Service Agreement” - This Service Agreement, as the same may be amended or supplemented
from time to time, including all its Exhibits. 
 “Service Bulletin” or “SB” - The document as issued by CFM
to notify the operator of modifications, substitution of parts, special inspections, special checks, or conversion of an Engine from one model to another. 
 “Service Credit” - Credits that may be applied towards payment for Services, as described in Article 7.3. 
 “Serviceable” - Meeting all CFM and AAA specified standards for airworthiness. 

“Standard Exchange” - In the case of Flightline LRU Support, means any exchange of Unserviceable equipment with a Serviceable one which
is available and fully interchangeable with such Unserviceable equipment. 
 “Supplemental Charges” - Has the meaning provided
in Article 7.2. 
 “Supplemental Services” - Those Services provided pursuant to Article 5.3. 

“Term” - Has the meaning provided in Article 3. 
 “TSM” - Trouble Shooting Manual. 
 “TSN” - Time since new

 “Turn Around Time” - The number of Days from Induction until the Engine is ready for Redelivery (as evidenced solely by
placement of the Serviceable tag or equivalent governing agency compliance tag, on such Engine) exclusive of any Excusable Delays as defined in Exhibit I, Article 4. 
 “Unserviceable” - Not meeting all CFM and AAA specified standards for airworthiness. 
 “Used Engine” - An Engine which has undergone a shop visit or which has more than one hundred (100) EFH since new. 
 “Workscope” - Has the meaning provided in Article 6.3. 
 “Workscope
Planning Guide” - The document published by CFM which describes the “on condition” maintenance concept for the Engines. This document communicates the timing and extent of work required to enable operators to achieve
reliability, performance, and maintenance cost goals. 

  
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 EXHIBIT B: [*] 

 

	*	[Two pages have been omitted in accordance with a request for confidential treatment.] 

  
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 EXHIBIT C: SHOP VISIT DATA 

 

	•	 	 Engine Operator 

  

	•	 	 Engine Model 

  

	•	 	 Engine Serial Number 

  

	•	 	 Engine Time and Cycles Since New 

  

	•	 	 Engine Time and Cycles Since last Shop Visit 

  

	•	 	 Shop Visit Rank 

  

	•	 	 Reason for Shop Visit 

  

	 	•	 	 Prime cause, 

  

	 	•	 	 Scheduled/unscheduled, 

  

	 	•	 	 More detailed description 

  

	•	 	 Engine Airworthiness Directive and/or Services Bulletin status 

 

	•	 	 LLP status 

  

	•	 	 All Engine information and records, set forth in the Procedures Manual 

  
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 EXHIBIT D: [*] 

 

	*	[Two pages have been omitted in accordance with a request for confidential treatment.] 

  
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 EXHIBIT E: [*] 
 [*] 

  
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 EXHIBIT F: [*] 
 [*] 

  
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 EXHIBIT G: [*] 

 

							
	 1.  [*]

 

	    

	 2.  All Other Labor Charges Not Specified in Exhibit G
  
       [*]
  

	    

	 3.   Charges For Parts and Material ([*])
  

	Type Of Material	  	Price    	  	Handling Fee
	 New Parts
([*])
  
	  	[*]	  	[*]
	 New Parts ([*])

 
	  	[*]	  	[*]
	 Rotable
Parts
  
	  	[*]	  	[*]
	    

	Type Of Material  	  	Price  	  	Handling Fee
	Used Serviceable Parts	  	[*]	  	[*]
	Subcontracted Services	  	[*]	  	[*]
	    
	 4.  Component And Accessories
Repair:
       [*]

	    
	 5.  Test Cell Usage Charges
       [*]

 EXHIBIT G CONTINUED: [*] 

 
      

	
	 1.  Basis:

 
       [*]

 

	     

	 2.  [*]

 
       [*]

 

	
    

	 3.  [*]
  

      [*]
  

 EXHIBIT G CONTINUED: [*] 

        [*] 

 EXHIBIT H: [*] 
 [*] 
 CFM reserves the right to make additions or changes to the list of Designated Repair
Stations upon written notice to AVIANCATACA. AVIANCATACA shall have the right to approve the alternate Designated Repair Station(s), AVIANCATACA’s approval, not to be unreasonably withheld, conditioned or delayed. 

  
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 EXHIBIT I: GENERAL TERMS AND CONDITIONS 

Table of Contents 
  

					
	ARTICLE 1	 	-	  	 LIMITATION OF LIABILITY AND INDEMNIFICATION

			
	ARTICLE 2	 	-	  	 TERMINATION

			
	ARTICLE 3	 	-	  	 TAXES

			
	ARTICLE 4	 	-	  	 EXCUSABLE DELAY

			
	ARTICLE 5	 	-	  	 PATENTS

			
	ARTICLE 6	 	-	  	 INFORMATION AND DATA

			
	ARTICLE 7	 	-	  	 GOVERNMENTAL AUTHORIZATION & EXPORT SHIPMENT

			
	ARTICLE 5	 	-	  	 WAIVER OF IMMUNITY

			
	ARTICLE 9	 	-	  	 NOTICES

			
	ARTICLE 10	 	-	  	 LIENS

			
	ARTICLE 11	 	-	  	 APPLICABLE LAW - DISPUTE RESOLUTION

			
	ARTICLE 12	 	-	  	 MISCELLANEOUS

  
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 ARTICLE 1 - LIMITATION OF LIABILITY AND INDEMNIFICATION 

 

	A.	Total Liability. The total liability of CFM for any and all claims, whether in contract, warranty, tort (including negligence but excluding willful misconduct),
product liability, patent infringement or otherwise, for any damages arising out of, connected with or resulting from the Service Agreement or the performance or non-performance of any Service or from the manufacture, sale, Redelivery, resale,
repair, overhaul, replacement or use of the Engine or any item or part thereof, will not exceed: (i) the price allocable to the repaired or overhauled item, part or Service which gives rise to the claim; or (ii) the value of the Engine which gives
rise to the claim, whichever is greater. Notwithstanding the foregoing, in no event will CFM or AVIANCATACA have any liability hereunder, whether as a result of breach of contract, warranty, tort (including negligence but excluding willful
misconduct), product liability, patent infringement or otherwise, for any special, consequential, incidental, resultant or indirect damages, (including, without limitation, loss of: use, profit, revenue or goodwill) or punitive or exemplary damages.

 In no event will CFM have any liability hereunder, whether as a result of breach of contract, warranty, tort
(including negligence but excluding willful misconduct), product liability, patent liability, or otherwise, for the design, material, workmanship, engineering defects or product liability and any damages whatsoever, including damages to personal
property and for personal injury or death, caused in any way by the manufacturer of the parts, LRU’s, components or material, thereof, or related thereto, provided that this in no way limits the liability of CFM for third party claims or under
any General Terms Agreement or Letter Agreement to which CFM and AVIANCATACA are parties. 
 In the event AVIANCATACA uses
non-CFM parts or non-CFM approved LRU’s, parts or repairs in an Engine and such LRU’s, parts or repairs cause personal injury, death or property damage to third parties, AVIANCATACA shall indemnify and hold harmless CFM from all claims and
liabilities associated therewith. The preceding indemnity shall apply whether or not CFM was provided a right under this Service Agreement to remove such LRU’s, parts or repairs, and irrespective of the exercise by CFM of such right.

  

	B.	Definition. For the purpose of this Article 1, the term “CFM” is deemed to include CFM and its parent and affiliated companies, the subcontractors and
suppliers of any Services furnished hereunder, and the directors, officers, employees, agents and representatives of each. 

ARTICLE 2 - TERMINATION 
  

	A.	Termination Events. The Service Agreement may be terminated as follows: 

 Late Payment. In the event that AVIANCATACA fails to make payments to CFM within the time periods specified herein, CFM may terminate all or any portion of this Service Agreement upon thirty (30)
days written notice to AVIANCATACA, unless AVIANCATACA cures such failure within such period following receipt of this notice. 

Insolvency. Either Party may terminate or suspend performance of all or any portion of this Service Agreement if the other Party:
(A) makes any agreement with creditors due to its inability to make timely payments of its debts; (B) enters into bankruptcy or liquidation, whether compulsory or voluntary; (C) becomes insolvent; or (D) becomes subject to the appointment of a
receiver of the whole or material part of its assets. If such termination should occur, the defaulting Party will not be relieved of its obligations hereunder. 
 Material Breach. Either Party may terminate this Service Agreement upon ninety (90) Days written notice to the other for failure to comply with any material provision of this Service Agreement
unless the failure has been cured prior to such ninety (90) Days (except for late payment, as described in Paragraph A.1 above). 
  

	B.	Activity After Termination. In the event the Service Agreement is terminated, the following shall cumulatively apply, in addition to any other right or remedy
allowable under this Service Agreement or applicable law: 

 Payment for Services Performed. In the event of
termination of this Service Agreement for any reason, AVIANCATACA will pay CFM for all Services or work performed by or caused to be performed by CFM up to the time of such termination under the applicable terms and prices of this Service Agreement
including all costs, fees, and charges incurred by CFM in providing support and material under this Service Agreement, including lease engines. 
 Reconciliation. In addition to the above, the terms of the reconciliation under the removal of Engines provisions of Article 12 of the Service Agreement will apply. 

Work in Process, Redelivery of AVIANCATACA’s Engines. Upon the termination or expiration of this Service Agreement, CFM will
complete all work in process in a diligent manner and Redeliver all Engines, parts and related documentation, provided that AVIANCATACA (a) has paid in full all charges for all such Services and material, plus all costs, fees and penalties,
incurred by CFM in providing support, including any lease engines, and (b) has returned all lease engines provided under this Service Agreement. 
 ARTICLE 3 - TAXES 
  

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

  

	B.	Reimbursement/Refund. If payment of any such Taxes is made by CFM (or the applicable affiliated company), AVIANCATACA will reimburse CFM (or the applicable
affiliated company) upon demand, such reimbursement excluding, inter alia, penalties and interests which could have been levied against CFM (or the applicable affiliated company). AVIANCATACA will use all reasonable efforts to obtain a refund
thereof. If all or any part of any such Taxes is refunded to CFM, CFM (or the applicable affiliated company) will repay to AVIANCATACA such part thereof as CFM (or the applicable affiliated company) refunded. 

 

	C.	Withholdings. All payments by AVIANCATACA to CFM (or the applicable affiliated company) under this Service Agreement will be free of all withholdings of any
nature whatsoever, except to the extent otherwise required by law, and if any such withholding is so required, AVIANCATACA will pay an additional amount such that after the deduction of all amounts required to be withheld, the net amount received by
CFM (or the applicable affiliated company) will equal the amount that CFM (or the applicable affiliated company) would have received if such withholding had not been required. If the aforementioned mechanism contradicts the law of country United
States of America, the Parties shall amend this Service Agreement in order to increase the respective prices and amounts provided for by this Service Agreement so that the initial prices and amounts are preserved. 

ARTICLE 4 - EXCUSABLE DELAY 
  

	A.	 Excusable Delay. Either Party will be excused from, and will not be liable for, any delay in performance or failure to perform hereunder (except
for the obligation to pay money or credit or debit an account which will not be excused hereunder), and will not be deemed to be in default for any 

  
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delay in or failure of performance hereunder due to causes beyond its reasonable control. Such causes will be conclusively deemed to include, but not be limited to acts of God, fire, terrorism,
war (declared or undeclared), severe weather conditions, earthquakes, epidemics, material shortages not caused by any CFM act or failure to act, insurrection, acts or omissions of the other Party, any act or omission by any governmental authority,
strikes, labor disputes, acts or threats of vandalism or terrorism (including disruption of technology resources), or transportation shortages (each an “Excusable Delay”). The time of performance shall be extended for a period equal
to the time lost by reason of delay, including time to overcome the effect of the delay, without discriminating against the non-delayed Party. 

  

	B.	Continuing Obligations. Article 4.A will not, however, relieve either Party from using its commercially reasonable efforts to avoid or remove such causes of
delay and continue performance with reasonable dispatch when such causes are removed. During the period of an Excusable Delay, CFM will have the right to invoice AVIANCATACA for Services actually performed. 

 

	C.	Extended Delay Termination. If delay resulting from any of the foregoing causes extends for more than six (6) months and the Parties have not agreed upon a
revised basis for continuing the Services, including any adjustment of the price, then either Party, upon thirty (30) Days written notice to the other, may terminate the purchase order that covers the delayed Services. 

ARTICLE 5 - [*] 
 [*] 

ARTICLE 6 - NON DISCLOSURE 
  

	A.	Non-Disclosure. Unless the Parties otherwise agree herein or further in writing, any of the terms of the Service Agreement or any knowledge, information or data
which the Parties have or may disclose to each other shall be held in confidence and may not be either disclosed or used for any purpose, except: 

  

	 	1.	To the extent required by government agencies and courts for official purposes, disclosure may be made to such agencies and courts. In such event, a suitable
restrictive legend limiting further disclosure shall be applied. 

  

	 	2.	The existence of the Service Agreement and its general purpose only may be stated to others by either of the Parties without approval from the other.

  

	 	3.	CFM may disclose the same to its parents, affiliates, subsidiaries, joint venture participants, engineering service provider, or consultants as needed to perform the
Services provided under this Service Agreement. 

 The preceding clause will not apply to information which
(1) is or becomes part of the general public knowledge or literature otherwise than as a result of breach of any confidentiality obligation, or (2) was, as shown by written records, known to the receiving Party prior to receipt from the
disclosing Party. 
  

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

  

	C.	Press Releases. In addition, neither Party will issue any press nor other media release or make any public statement with respect to this Service Agreement
without the prior written approval of the other Party, as to the fact and the content of any such media release or public statement. 

  
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 ARTICLE 7 - GOVERNMENTAL AUTHORIZATION & EXPORT SHIPMENT 

AVIANCATACA shall be the importer and/or exporter of record and shall be responsible for the timely application for, obtaining and maintaining any
required authorization, such as export license, import license, exchange permit or any other required governmental authorization relating to the Engine, and shall be responsible for complying with all U.S., French and other foreign government
licensing and reporting requirements. At AVIANCATACA’s request and expense, CFM will assist AVIANCATACA in its application for any required U.S. or French export licenses. CFM will not be liable if any authorization is not renewed or is
delayed, denied, revoked or restricted, and AVIANCATACA will not thereby be relieved of its obligation to pay for Services performed by CFM. All transported Engines will be subject to the U.S. Export Administration Regulations and/or International
Traffic in Arms Regulations and (ii) the French export control regulations. AVIANCATACA agrees not to dispose of U.S. or French origin items provided by CFM other than in and to the country of ultimate destination and/or as identified in an
approved government license or authorization, except as said laws and regulations may permit. 
 ARTICLE 8 - WAIVER OF IMMUNITY

 To the extent that AVIANCATACA or any of its property is or becomes entitled at any time to any immunity on the grounds of sovereignty
or otherwise from any legal action, suit or proceeding, from set-off or counterclaim, from the jurisdiction of any competent court, from service of process, from attachment prior to judgment, from attachment in aid of execution, or from execution
prior to judgment, or other legal process in any jurisdiction, AVIANCATACA hereby irrevocably waives the application of such immunity and particularly, the U.S. Foreign Sovereign Immunities Act, 28 U.S.C. 1602, et. seq., and agrees not to plead or
claim, any such immunity with respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Service Agreement or the subject matter hereof. Such agreement shall be irrevocable and not subject to
withdrawal in any and all jurisdictions. 
 ARTICLE 9 - NOTICES 

 

	A.	Acknowledgement. Any notices under this Service Agreement shall be in writing and be delivered or sent by mail, express/shipping service or electronic
transmission to the respective Parties at the following addresses, which may be changed by written notice: 

  

							
	TO:	 		 		 	
		
	AVIANCATACA Holding S.A.	 	CFM INTERNATIONAL Inc.
			
		 	Av Calle 26 No. 59-15, Piso 10	 	6440 Aviation Way
		 	Bogotá, Colombia	 	West Chester, Ohio 45069 USA
			
	Attn:	 	Secretary	 	Attn.: CFM Services General Manager
		 	Facsimile Number: (57)1 423-5500 ext 2522	 		 	
	 	 	Telephone Number: (57)15877700 ext 2522	 	 	 	
				
	 AND
	 		 		 	
				
		 	 Centro Administrativo, Avenida El Dorado,
 Bogota, Colombia
	 		 	
	 Att.:
	 	Engineering Director and Power Plan Manager	 		 	

  

	B.	 Effect of Notices. Notices will be effective and will be deemed to have been given to (or “received by”) the recipient: (A) upon
delivery, if sent by courier, express mail, or delivered personally; (B) on the 

  
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next business day following receipt, if sent by facsimile with a receipt of confirmation; or (C) on the fifth (5th) business day after posting (or on actual receipt, if earlier) in the
case of a letter sent prepaid first class mail. Whenever the words “notice” or “notify” or similar words are used herein, they mean the provision of formal notice as described in this Article 9. Whenever words such as
“advise”. “inform” or similar words are used, they mean the use of informal information provided to lower-level operating managers. 

 ARTICLE 10 - LIENS 
  

	A.	[*] 

  

	B.	Enforcement. If AVIANCATACA fails to tender any payment owing under this Service Agreement and CFM initiates foreclosure with respect to any Engine pursuant to a
mechanic’s lien, then AVIANCATACA agrees to supply to CFM all records, log books and other documentation pertaining to the maintenance condition of the Engine reasonably available to it, and a certificate either (i) certifying that the
Engine has not been involved in any Aircraft Accident or Incident or (ii) specifying the date and facts surrounding any Accident or Incident in which the Engine has been involved and the nature and extent of the damage sustained (such records,
log books, certificate and other documentation referred to hereinafter as the “Engine Documents”). The Parties recognize that the failure by AVIANCATACA to deliver the Engine Documents may have a material, adverse effect on the
value of any Engine with respect to which foreclosure has been initiated by CFM and the ability of CFM to sell or lease the Engine, and that the damages CFM may sustain as a result are not readily calculable. 

ARTICLE 11 – APPLICABLE LAW – DISPUTE RESOLUTION 
  

	A.	Applicable Law. This Service Agreement shall be construed, interpreted and applied, and the legal relations between the Parties determined, in accordance with
the laws of the State of New York (U.S.A.). The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Service Agreement 

 

	B.	Dispute Resolution. If any dispute arises relating to this Service Agreement, the Parties will endeavor to resolve the dispute amicably, including by designating
senior managers who will meet and use commercially reasonable efforts to resolve any such dispute. If the Parties’ senior managers do not resolve the dispute within sixty (60) days of first written request, either Party may request that the
dispute be settled and fully and finally determined by binding arbitration, in accordance with the International Chamber of Commerce pursuant to its rules of Conciliation and Arbitration, by one or more arbitrators appointed in accordance with said
rules. The place of arbitration and hearings shall be Miami, Florida, USA. The arbitration shall be in English and the opinion shall be rendered in English. The arbitration award shall be final and binding by any Party in any court of competent
jurisdiction, and shall waive any claim appeal whatsoever against it. The arbitrators will have no authority to award punitive damages or any other damages not measured by the prevailing Party’s actual damages, and may not, in any event, make
any ruling, finding or award that does not conform to the terms and conditions of the Service Agreement. All statements made or materials produced in connection with this dispute resolution process and arbitration are confidential and will not be
disclosed to any third party except as required by law or subpoena. The Parties intend that the dispute resolution process set forth in this Article 11 will be their exclusive remedy for any dispute arising under or relating to this Service
Agreement or its subject matter. 

  

	C.	Exception. Either Party may at any time, without inconsistency with this Article, seek from a court of competent jurisdiction any equitable, interim or
provisional relief to avoid irreparable damage. This Article will not apply to and will not bar litigation regarding claims related to a Party’s proprietary or intellectual property rights, nor will this Article be construed to modify or
displace the ability of the Parties to effectuate any termination contemplated in Article 2. 

 ARTICLE 12 - MISCELLANEOUS

  

	A.	Assignment of Agreement. This Service Agreement, any related purchase order or any rights or obligations hereunder may not be assigned, in whole or in part,
without the prior written consent of the other Party, except that AVIANCATACA’s consent will not be required for an assignment by CFM to one of CFM’s parent companies. In the event of any such assignment, AVIANCATACA will be so advised in
writing. Any assignment in contradiction of this clause will be considered null and void. 

  

	B.	Beneficiaries. Except as otherwise expressly provided to the contrary, the rights herein granted and this Service Agreement are for the benefit of the Parties
hereto and are not for the benefit of any third person, firm or corporation, except as expressly provided herein with respect to GE and Snecma. 

  

	C.	Survival Of Certain Clauses. The rights and obligations of the Parties under the following Articles of this Service Agreement as amended and related Exhibits
shall survive the expiration, termination or completion of this Service Agreement: 

  

	 	•	 	 Warranty and Limitation of Liability 

  

	 	•	 	 Limitation of Liability and Indemnification 

  

	 	•	 	 Taxes 

  
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	 	•	 	 Patents 

  

	 	•	 	 Non Disclosure 

  

	 	•	 	 Governmental Authorization & Export Shipment 

 

	 	•	 	 Waiver of Immunity 

  

	 	•	 	 Applicable Law - Dispute Resolution 

  

	 	•	 	 Miscellaneous 

  

	D.	General Rules of Contract Interpretation. Article and paragraph headings contained in this Service Agreement are inserted for convenience of reference only and
do not limit, affect or restrict in any way the meaning and the interpretation of this Service Agreement. Words used in the singular shall have a comparable meaning when used in the plural and vice versa, unless the contrary intention appears. Words
such as “hereunder”, “hereof” and “herein” and other words beginning with “here” refer to the whole of this Service Agreement, including amendments. References to Articles, Sections, Paragraphs or Exhibits
will refer to the specified Article, Section, Paragraph or Exhibit of this Service Agreement unless otherwise specified. 

  

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

  

	F.	Severability. The invalidity or unenforceability of any part or provision of this Service Agreement, or the invalidity of its application to a specific situation
or circumstance, shall not affect the validity legality and enforceability of the remainder of this Service Agreement, or its application to other situations or circumstances. In addition, if a part of this Service Agreement becomes invalid, the
Parties will endeavor in good faith to reach agreement on a replacement provision that will reflect, as nearly as possible, the intent of the original provision. 

 

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

  

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

 

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

  

	J.	No Agency. Nothing in this Service Agreement will be interpreted or construed to create a partnership, agency or joint venture between CFM and AVIANCATACA.

  

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

  

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

  
 29 

  
 CFM
PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

	M.	Counterparts. This Service Agreement may be executed in one or more counterparts, all of which counterparts will be treated as the same binding agreement, which
will be effective as of the date set forth on the first page hereof, upon execution by both Parties and delivery by each Party hereto to the other Party of one or more such counterparts. Delivery of an executed counterpart of a signature page to
this Service Agreement by telecopy or electronic mail shall be as effective as delivery of a manually executed counterpart. 

  
 30 

  
 CFM
PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

 EXHIBIT J: [*] 
 SERVICES 
 [*]. GE On Wing Support, at their sole discretion, may Subcontract or
Assign Services to any provider that is properly certified and rated by the Approved Aviation Authority. All Services provided shall be in accordance with its standard commercial quality control policies, procedures, and practices. A turn-time
estimate for each workscope for acceptance by Customer prior to beginning of Services will be provided. 
 FIXED WORKSCOPE PRICING

 [*] 
 Above pricing does not
include consumables. 
 Other pricing applicable for Engine maintenance provided by GE On Wing Support, Inc 

 

	A.	Workscope Pricing and Deployment 

  

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

 

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

  

	 	3)	Customer shall ensure that, if required, the Approved Aviation Authority shall grant us approval equivalent to the terms of approval already granted to us by the FAA to
carry out any necessary on-wing repair or other maintenance service. We must receive any such required approval prior to the commencement of Service. 

  

	 	4)	For Services performed at a location other than a station owned by GE On Wing Support, Inc. at the direction of Customer, the following deployment charges may be
accessed unless a fixed price is agreed for a specific deployment: 

  

	 	a)	[*] 

  

	 	5)	[*] 

  

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

 

	 	7)	[*] 

  

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

  

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

  
 31 

  
 CFM
PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGE 

	B.	[*] 

 [*] 

 

	C.	[*] 

 [*] 

  
 32 

  
 CFM
PROPRIETARY INFORMATION – SUBJECT TO RESTRICTIONS ON THE FIRST PAGEEX-10.19

 Exhibit 10.19 
 Note: Certain portions have been omitted from this Agreement in accordance with a request for confidential treatment submitted to the Securities and Exchange Commission. Omitted information has been
replaced with an asterisk. Omitted information has been filed separately with the Securities and Exchange Commission. 
  

AMENDED AND RESTATED 
 V2500® 

GENERAL TERMS OF SALE 
 BETWEEN 
 IAE INTERNATIONAL AERO ENGINES AG 

AND 
 ATLANTIC
AIRCRAFT HOLDINGS LIMITED 

 INDEX 
 Commencement 
 Recitals 

 

									
	CLAUSE 1	    	DEFINITIONS	    	 	5	  
			
	CLAUSE 2	    	SALE OF PURCHASED ITEMS	    	 	7	  
				
		    	2.1	    	Intent	    			
		    	2.2	    	Agreement to Place Orders	    	 	7	  
		    	2.3	    	Type Approval and Changes in Specification	    	 	8	  
		    	2.4	    	Inspection and Acceptance	    	 	9	  
		    	2.5	    	Delivery, Shipping, Title and Risk of Loss or Damage	    	 	9	  
		    	2.6	    	Price	    	 	10	  
		    	2.7	    	Payment	    	 	10	  
			
	CLAUSE 3	    	SPARE PARTS PROVISIONS	    	 	11	  
				
		    	3.1	    	Intent and Term	    	 	11	  
		    	3.2	    	ATA Standards	    	 	12	  
		    	3.3	    	Initial Provisioning	    	 	12	  
		    	3.4	    	Change in Initial Provisioning Data	    	 	12	  
		    	3.5	    	Discontinuance of Initial Provisioning Data - Use of Procurement Data	    	 	13	  
		    	3.6	    	Stocking of Spare Parts by IAE	    	 	13	  
		    	3.7	    	Lead Times	    	 	13	  
		    	3.8	    	Ordering Procedure	    	 	14	  
		    	3.9	    	Modifications to Spare Parts	    	 	14	  
		    	3.10	    	Inspection	    	 	15	  
		    	3.11	    	Delivery and Packing	    	 	15	  
		    	3.12	    	Prices	    	 	16	  
		    	3.13	    	Payment	    	 	16	  
		    	3.14	    	Purchase by AAH from Others	    	 	17	  
		    	3.15	    	Special Tools, Ground Equipment and Consumable Stores	    	 	18	  
		    	3.16	    	Conflict	    	 	18	  
			
	CLAUSE 4	    	WARRANTIES, GUARANTEES AND LIABILITIES	    	 	19	  
			
	CLAUSE 5	    	PRODUCT SUPPORT	    	 	21	  

  
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	CLAUSE 6	    	MISCELLANEOUS	    			
				
		    	6.1	    	Delay in Delivery	    	 	21	  
		    	6.2	    	Patents	    	 	23	  
		    	6.3	    	Credit Reimbursement	    	 	24	  
		    	6.4	    	Non-Disclosure and Non-Use	    	 	24	  
		    	6.5	    	Taxes	    	 	25	  
		    	6.6	    	Amendment	    	 	25	  
		    	6.7	    	Assignment	    	 	26	  
		    	6.8	    	Exhibits	    	 	26	  
		    	6.9	    	Headings	    	 	26	  
		    	6.10	    	Law	    	 	26	  
		    	6.11	    	Notices	    	 	27	  
		    	6.12	    	Exclusion of Other Provisions and Previous Understandings	    	 	27	  
		    	6.13	    	Termination	    			
		    	6.14	    	Severability & Partial Invalidity	    	 	28	  
		    	6.15	    	Counterparts	    	 	28	  
		    	6.16	    	Right of Setoff	    	 	28	  
		    	6.17	    	Conditions Precedent	    	 	29	  
		    	6.18	    	Termination Events	    	 	29	  
			
	EXHIBIT A	    	CONTRACT SPECIFICATION	    	 	32	  
			
	EXHIBIT B	    	SCHEDULES	    	 	51	  
			
		    	EXHIBIT B1 AIRCRAFT DELIVERY SCHEDULE	    	 	51	  
		    	EXHIBIT B2 SPARE ENGINE DELIVERY SCHEDULE	    	 	52	  
		    	EXHIBIT B3 ESCALATION FORMULA	    	 	53	  
			
	EXHIBIT C	    	PRODUCT SUPPORT PLAN	    	 	56	  
			
	EXHIBIT D	    	WARRANTIES, GUARANTEES AND PLANS	    	 	80	  
				
		    	D-1	    	ENGINE AND PARTS SERVICE POLICY	    	 	81	  
		    	D-2	    	NACELLE AND PARTS SERVICE POLICY	    	 	85	  
		    	D-3	    	NON-INSTALLATION ITEMS WARRANTY	    	 	87	  
		    	D-4	    	V2500 RELIABILITY GUARANTEE	    	 	89	  
		    	D-5	    	V2500 DELAY AND CANCELLATION GUARANTEE	    	 	93	  
		    	D-6	    	V2500 INFLIGHT SHUTDOWN GUARANTEE	    	 	98	  
		    	D-7	    	V2500 FUEL CONSUMPTION RETENTION GUARANTEE	    	 	102	  
		    	D-8	    	V2500 EXHAUST GAS TEMPERATURE GUARANTEE	    	 	107	  
		    	D-9	    	[*]	    	 	111	  
		    	D-10	    	[*]	    	 	112	  
		    	D-11	    	V2500 FIRST RUN RELIABILITY GUARANTEE	    	 	113	  
		    	D-12	    	V2500 REMOTE SITE REMOVAL GUARANTEE	    	 	114	  
		    	D-13	    	[*]	    	 	118	  

 EXHIBIT E4 

  
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 THIS AMENDED AND RESTATED CONTRACT is made this 18 day of December 2008 

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
		
	ATLANTIC AIRCRAFT HOLDINGS LIMITED	 	a corporation organized and existing under the laws of The
Bahamas, whose principal place of business is at King & George
Streets, Nassau, Bahamas, its successors and
permitted assigns
(hereinafter called “AAH”)

 WHEREAS: 

 

	A.	As of the date hereof, AAH has acquired or has firmly ordered an aggregate of [*] aircraft and has options to purchase an additional [*] aircraft, all powered or to be
powered by Engines, and 

  

	B.	IAE and AAH entered into that certain agreement with respect to V2500 General Terms of Sale on April 23rd 1999 (the “Original Contract”), and

  

	C.	IAE and AAH entered into the Omnibus Amendment on March 31st 2005 (the “Omnibus Amendment”), and 

 

	D.	IAE and AAH entered into Side Letter No. 5 to the Original Contract on January 8th 2008 (the “Side Letter”), and 

 

	E.	IAE and AAH entered into a Letter Agreement, referenced Support for Firmed-up AAH Option Aircraft, on October 13th 2008 (the “Letter Agreement”), and

  

	F.	IAE and AAH hereby agree to amend the terms of the Original Contract and to restate the Original Contract in its entirety to incorporate the provisions of the Omnibus
Amendment and the Side Letter, and the Letter Agreement, and 

  

	G.	IAE is prepared to supply to AAH V2500 engines, modules, spare parts, special tools, ground equipment, product support services and consumable stores for the support
and operation of the Engines. 

 (The term, “Contract” as used hereinafter shall mean this Amended and Restated Contract
together with all exhibits thereto and all letter agreements, whether currently existing or hereafter entered into, that by their terms constitute part of this Contract, and as this Contract may be amended, modified or supplemented from time to
time.) 

  
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 NOW THEREFORE THE PARTIES AGREE TO AMEND AND RESTATE THE ORIGINAL CONTRACT AS FOLLWS:- 

CLAUSE 1 DEFINITIONS 
 In this Contract
unless the context otherwise requires:- 
  

	1.1	“Aircraft” shall mean the [*] new Airbus A320 family aircraft powered by new Engines firmly ordered by AAH pursuant to the Aircraft Agreement (including [*]
A320 family aircraft already delivered by the Aircraft Manufacturer as of the date of the Contract) (the “Firm Aircraft”), and, if converted into firmly ordered aircraft pursuant to the Airbus Agreement, (i) up to [*] additional new Airbus
A320 family aircraft powered by new Engines for which AAH has been granted certain purchase rights by the Aircraft Manufacturer pursuant to the Aircraft Agreement (“Rolling Option Aircraft”). 

 

	1.1A	“Aircraft Agreement” shall mean the A320 Family Purchase Agreement dated March 19, 1998 between AAH and the Aircraft Manufacturer (together with all exhibits
thereto and all letter agreements currently existing or hereafter entered into that by their terms constitute part of such agreement, and as such agreement may be amended, modified or supplemented from time to time). 

 

	1.2	“Aircraft Manufacturer” shall mean Airbus SAS (formerly known as Airbus Industrie GIE), a limited liability company organized under the laws of France, and
any successor thereto.” 

  

	1.3	“Basic Contract Price” shall mean the basic price of each of the Spare Engines as specified in Exhibit B-2 to this Contract. 

 

	1.4	“Certification Authority” shall mean the regulatory authority referred to in Exhibits A-1, A-2, A-3, A-4 and A-5 to this Contract responsible for the type
certification of the Engines.” 

  

	1.5	“Engine(s)” shall mean the IAE V2500 aero engines described in Exhibits A-1, A-2, A-3, A-4 and A-5 to this Contract.” 

 

	1.6	“Fleet Hour Agreement” or “FHA” shall mean the Amended and Restated Fleet Hour Agreement dated November    , 2008 between AAH
and IAE (together with all exhibits thereto and all letter agreements currently existing or hereafter entered into that by their terms constitute part of such agreement, and as such agreement may be amended, modified or supplemented from time to
time).” 

  

	1.7	“Grupo Taca Airline(s)” [*] 

  

	1.8	“IAE Financing Agreement” shall mean the Financing Letter Agreement No. 1 dated April 23rd, 1999 between AAH and IAE (together with all exhibits thereto and
all letter agreements currently existing or hereafter entered into that by their terms constitute part of such financing letter agreement, and as such financing letter agreement may be amended, modified or supplemented from time to time).

  

	1.9	“Initial Provisioning” shall mean the establishment by AAH of an initial stock Spare Parts. 

  
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	1.10	“Initial Provisioning Data” shall mean information supplied by IAE to AAH for Initial Provisioning purposes. 

 

	1.11	“Initial Provisioning Orders” shall mean orders for Spare Parts for Initial Provisioning purposes. 

 

	1.12	“Installation Items” shall mean Engines described in the Specification, modules, accessories, exhaust systems, nacelles and all ancillary equipment therefor
which are being supplied pursuant to this Contract for installation on the Aircraft. 

  

	1.13	“Lead Time” shall mean the period specified in the Spare Parts Catalog which represents the minimum time required between acceptance by IAE of an order by AAH
for Supplies and commencement of delivery of such Supplies. 

  

	1.14	“LIBOR” shall mean the average (rounded upward, if necessary, to the nearest 1/16 of 1%) of the offered rates for six-month deposits in United States dollars
which appear on Reuters Screen LIBO Page, provided, that if no such rates appear (or in the event of manifest error in the rates appearing on the Reuters Screen LIBO Page) then the average (rounded upward, if necessary to the nearest 1/16 of
1%) of the offered rates for six-month deposits in United States dollars quoed by the principal London offices of three (3) major international commercial banks chosen by IAE in an amount that is representative for a single transaction in the London
interbank market at the time. 

  

	1.15	“Non-Installation Items” shall mean jigs, tools, handling and transportation equipment and all equipment whatsoever to be supplied pursuant to this Contract
for use with the Installation Items and not for installation on the Aircraft. 

  

	1.16	“Other Supplies” shall mean special tools, ground equipment and consumable stores (e.g., oils, greases, dyes and penetrates). 

 

	1.17	“Procurement Data” shall mean information supplied by IAE to AAH about Spare Parts required to replenish the initial stock. 

 

	1.18	“Reuters Screen LIBO Page” shall mean the display designated as page “LIBO” on the Reuters Monitor Money Rates Service (or such other page as may
replace the LIBO page on the service for the purpose of displaying London interbank offered rates of major banks). 

  

	1.19	“Service Bulletins” shall mean those service bulletins containing advice and instructions issued by IAE to AAH from time to time in respect of Engines.

  

	1.20	“Spare Engines” shall mean spare V2500 Engines. 

  

	1.21	“Spare Parts” shall mean spare parts for Engines excluding the items listed in the Specification as being items of supply by AAH. 

 

	1.22	“Spare Parts Catalog” shall mean the catalog published by IAE from time to time providing a description, Lead Time and price for Spare Parts, tools and Vendor
Parts available for purchase from IAE. 

  
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	1.23	“Specification” shall mean IAE Engine Specification Nos. IAE S24 A5/1, S27A5/1, S27E A5/1, S33 A5/1 and S27M A5/2, which form Exhibits A-1, A-2, A-3, A-4 and
A-5, respectively, to this Contract.” 

  

	1.24	“Supplies” shall mean Installation Items, Non-Installation Items, Spare Parts and any other goods or services supplied pursuant to this Contract.

  

	1.25	“Vendor Parts” shall mean Spare Parts described in Initial Provisioning Data or Procurement Data which are not manufactured pursuant to the detailed design
and direction of IAE. 

  

					
	CLAUSE 2	 	SALE OF PURCHASED ITEMS
		
	2.1	 	Reserved.
		
	2.2	 	Agreement to Purchase
			
		 	2.2.1	 	AAH represents and warrants to IAE that (i) AAH and the Aircraft Manufacturer have entered into the Aircraft Agreement, (ii) the Aircraft Agreement covers all of the Firm
Aircraft and the Rolling Option Aircraft, and , (iii) the remaining [*] Firm Aircraft are scheduled for delivery in accordance with the schedule set forth on Exhibit B-1 to this Contract, and (iv) the dates by which AAH must exercise its rights to
convert into firmly ordered aircraft the Rolling Option Aircraft are set forth on Exhibit B-1 to this Contract.
			
		 	2.2.2	 	AAH hereby places a firm and unconditional order with IAE for the purchase of fifteen (15) new V2500 Spare Engines (including ten (10) Spare Engines which already have been
purchased as of the date of the Contract), for delivery according to the schedule set forth in Exhibit B-2 to this Contract.
			
		 	2.2.3	 	AAH agrees to place a firm and unconditional order with IAE for the purchase of sufficient quantities and appropriate thrust ratings of Spare Engines such that a Spare Engine to
Installed Engine ratio of a minimum of eight percent (8%) is maintained across the Grupo TACA Airlines fleet.

  
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	2.3	  	Type Approval and Changes in Specification
			
		  	2.3.1	  	Spare Engines will be manufactured to the standards set forth in the Specification. Furthermore, there will be no differences between the Specifications in the Spare
Engines and Engines installed on the Aircraft which result in a material difference in operation or performance of Spare Engines and Engines installed on the Aircraft. After the date of this Contract, but subject to the terms and conditions hereof,
Spare Engines may be varied from the standards set forth in the Specification and other IAE manufacturing specifications from time to time by Change Orders in writing which shall set forth in detail:
				
		  		  	2.3.1.1	  	The changes to be made in the Spare Engines; and
				
		  		  	2.3.1.2	  	The effect (if any) of such changes on the Specification (including but not limited to performance and weight), on interchangeability of the Spare Engines in the airframe, on prices
and on dates of delivery of the Spare Engines.
			
		  		  	Change Orders shall not be binding on either party until signed by IAE and AAH but upon being so signed shall constitute amendments to this Contract.
			
		  	2.3.2	  	Subject to the provisions of Clause 2.3.1 above, IAE may make any changes in the Spare Engines which do not adversely affect the Specification, (including but not
limited to performance and weight), interchangeability of the Spare Engines on any Aircraft, prices or dates of delivery of the Spare Engines. In the case of such permitted changes, a Change Order shall not be required.
			
		  	2.3.3	  	At the time of delivery of the Spare Engines there is to be in existence a Type Approval Certificate for the Spare Engines in accordance with the provisions of the
Specification, as modified pursuant to Clause 2.3.1 and Clause 2.3.2 above.
			
		  	2.3.4	  	The Specification has been drawn with a view to the requirements of the Certification Authority and the official interpretations of such requirements in existence at the
date of this Contract (such requirements and interpretations being hereinafter referred to as “Current Rules”). Except as otherwise provided in Clause 2.3.2 above, IAE and AAH agree that they will execute an appropriate Change Order in
respect of any change required to the Spare Engines to enable such Spare Engines to conform to the requirements of the Certification Authority and the official interpretations of such requirements in force at the date of delivery of such Spare
Engines.
			
		  	2.3.5	  	The price of any Change Order shall be paid:
				
		  		  	2.3.5.1	  	in the case of changes required to conform to the Current Rules or to enable the Spare Engines to conform to the requirements of this Contract - by IAE; and
				
		  		  	2.3.5.2	  	in any other case - by AAH.

  
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	2.4	  	Inspection and Acceptance
			
		  	2.4.1	  	Conformance of Spare Engines to the Specification will be assured by IAE through the maintenance of procedures, systems and records approved by the Certification Authority. An
Export Certificate of Airworthiness or a Certificate of Conformity (as the case may be) will be issued and signed by personnel authorized for such purposes.
			
		  	2.4.2	  	Upon delivery pursuant to Clause 2.5.1 below and the issue of an Export Certificate of Airworthiness or a Certificate of Conformity pursuant to Clause 2.4.1 above and a duly
executed Bill of Sale, AAH shall be deemed to have accepted the Spare Engines and that the Spare Engines conform to the Specification. AAH’s acceptance will in no way prejudice AAH’s warranty and support rights under this Contract and the
Fleet Hour Agreement. IAE shall, upon written request from AAH and subject to the permission of the appropriate governmental authorities, as applicable, arrange for AAH to have reasonable access to the appropriate premises in order to examine the
Spare Engines prior to the issue of conformance documentation and to witness Engine acceptance tests.
			
		  	2.4.3	  	If AAH is unable to accept, refuses without reasonable cause or otherwise materially hinders delivery, or if IAE at AAH’s written request agrees to delay delivery, of any of
the Spare Engines for more than thirty (30) days from the scheduled date of delivery, unless otherwise mutually agreed, AAH shall nevertheless pay or cause IAE to be paid therefor as if, for the purposes of payment and transfer of title only, the
Spare Engines had been delivered.
			
		  	2.4.4	  	In any of the cases specified in Clause 2.4.3 above, AAH shall also pay to IAE such reasonable sums as IAE shall incur or reasonably allocate in respect of storage, maintenance
and insurance of those Spare Engines. If IAE purchases insurance and title has transferred, AAH shall be named loss payee in such insurance policy.
			
		  	2.4.5	  	If IAE is unable to deliver a Spare Engine in accordance with the terms hereof, or if AAH refuses for reasonable cause to take delivery of any Spare Engine, Clauses 2.4.3 and
2.4.4 shall not apply.
		
	2.5	  	Delivery, Shipping, Title and Risk of Loss or Damage
			
		  	2.5.1	  	IAE will deliver Spare Engines, at its option, either Ex-Works (INCOTERMS 2000) Connecticut, United States of America, or Ex-Works (INCOTERMS 2000) Derby, England, in accordance
with the delivery schedule set out in Exhibit B-2 to this Contract. IAE will make reasonable efforts to deliver AAH’s Spare Engines Ex-Works Connecticut, United States of America, taking into consideration production schedules and other
relevant and material factors.
			
		  	2.5.2	  	Upon such delivery, title to and risk of loss of or damage to the Spare Engines shall pass to AAH.
			
		  	2.5.3	  	AAH will notify IAE at least [*] before the scheduled time for delivery of the Spare Engines of its instructions as to the marking and shipping of the Spare
Engines.

  
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	2.6	  	Price
		
		  	The Purchase Price for each of the Spare Engines shall be the Basic Contract Price, amended pursuant to Clause 2.3.5.2 above, and escalated in accordance with the
escalation formula contained in Exhibit B-3 to this Contract.
		
	2.7	  	Payment
			
		  	2.7.1	  	 AAH will make payment in United States Dollars as follows:

				
		  		  	2.7.1.1	  	Reserved.
				
		  		  	2.7.1.2	  	[*] months before the scheduled delivery of each of the Spare Engines, AAH shall pay to IAE a non-refundable deposit of [*] percent ([*]%) of the Estimated Purchase Price of such
Spare Engine.
				
		  		  	2.7.1.3	  	[*] months before the scheduled delivery of each of the Spare Engines, AAH shall pay to IAE a further non-refundable deposit of [*] percent ([*]%) of the Estimated Purchase Price
of such Spare Engine.
				
		  		  	2.7.1.4	  	Immediately prior to the delivery of each of the Spare Engines, AAH shall pay to IAE the balance of the Purchase Price of such Spare Engine.
			
		  	2.7.2	  	IAE shall have the right to require AAH to make additional deposits in respect of price changes arising from the provisions of Clause 2.3 above on a similar basis to
that specified in Clause 2.7.l above if the change is requested by AAH.
			
		  	2.7.3	  	AAH undertakes that IAE shall receive the full amount of payments falling due under this Clause 2.7, without any withholding or deduction whatsoever. Notwithstanding
the foregoing, AAH may withhold or deduct a sum required by a valid judicial order. In such case, AAH shall advise IAE as soon as practicable of the need to withhold or deduct, and AAH shall cooperate with IAE to remediate the
situation.
			
		  	2.7.4	  	All payments under this Clause 2.7 shall be made by cable or telegraphic transfer and shall be deposited not later than the due date of payment with:
				
		  		  		  	 Bank of America

		  		  		  	 1185 Avenue of the Americas

		  		  		  	 New York, NY 10038-4924

		  		  		  	 Account No.: 385002859903

		  		  		  	 ABA No.: 026009593

		  		  		  	 SWIFT Code: BOFAUS3N

		  		  		  	 CHIPS No: 0959

			
		  		  	or as otherwise notified from time to time by IAE.
			
		  	2.7.5	  	For the purpose of this Clause 2.7 “payment” shall only be deemed to have been made to the extent cleared or good value funds are received in the numbered
IAE bank account specified in Clause 2.7.4 above.

  
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	2.7.6	  	If AAH fails to make any payment for any Spare Engines on or before the date when such payment is due, then, without
prejudice to any of IAE’s other rights, IAE will (a)
be entitled to charge interest on the overdue amount, at the rate of
[*] percent ([*]%) per month, from the date such payment was due to the date such payment is made and (b) have the right
(but not the obligation) to suspend work on
the manufacture of such Spare Engines pending the remedy of such failure and to
reschedule the date of delivery of such Spare Engines following the cure of such failure.
		
	2.7.7	  	For the purpose of this Clause 2.7, the “Estimated Purchase Price” of any of the Spare Engines shall be calculated in accordance with the following
formula.
		
		  	[*]
		
		  	where:
		
		  	   P is the Estimated Purchase Price

		  	   B is the applicable Basic Contract Price

		  	   N is the year of scheduled delivery minus the year for which the Basic Contract Price is defined.

		
	2.7.8	  	Those payments referred to in Clause 2.7.1 above as “non-refundable” shall be refunded to AAH in the event AAH validly exercises its right to cancel the order for the
Spare Engine pursuant to Clause 6.1.5 hereunder.

  

							
	CLAUSE 3 SPARE PARTS PROVISIONS
		
	3.1	  	Intent and Term
			
		  	3.1.1	  	For as long as AAH owns and operates one or more Aircraft in regular commercial service and is not in material breach of any of its obligations to IAE under the
Contract, IAE shall provide that reasonably adequate supplies of Spare Parts are available for sale to AAH under this Contract. In consideration thereof, IAE shall sell to AAH and, except as hereinafter provided, AAH shall buy from IAE, AAH’s
requirements of the following Spare Parts:
				
		  		  	3.1.1.1	  	All Spare Parts manufactured pursuant to the detailed design and order of IAE where IAE is the only source from which AAH can purchase such Spare Parts in an unused condition and
in quantities sufficient to meet AAH’s requirements; and
				
		  		  	3.1.1.2	  	Vendor Parts for which direct supply arrangements between the manufacturers of such Vendor Parts and AAH cannot be established. Except for the purposes of Initial Provisioning
pursuant to Clause 3.3 below, AAH shall notify IAE in writing not less than twelve (12) months before scheduled delivery requested by AAH that AAH intends to purchase such Vendor Parts from IAE.
			
		  	3.1.2	  	In an emergency or upon reasonable request of AAH, IAE shall sell to AAH Vendor Parts which it is not obliged to sell under this Contract, but which it has in stock
or otherwise has reasonably available to it.

  
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	3.2	  	ATA Standards
		
		  	The parties to this Contract shall comply with the requirements of ATA Specifications 2000 and 300, provided that any of the parties shall be entitled to negotiate
reasonable changes in those procedures or requirements of the said specifications which, if complied with exactly, would result in an undue operating burden or unnecessary economic penalty. In particular, on written notification by AAH to IAE prior
to placement of Initial Provisioning orders, IAE would agree to the use of ATA Specification 200 instead of ATA Specification 2000.
		
	3.3	  	Initial Provisioning
			
		  	3.3.1	  	To assist AAH’s Initial Provisioning, IAE shall supply AAH with Initial Provisioning Data in accordance with ATA Specification 2000, subject to Clause 3.2
above.
			
		  	3.3.2	  	Details of the format and precise nature of the said Initial Provisioning Data, including the applicable revision numbers of ATA Specification 2000, definition of Spare Parts
Categories, and Lead Times, and agreement on technical publications shall be agreed between IAE and AAH at a preliminary meeting held for this purpose at a time and place to be agreed.
			
		  	3.3.3	  	The said Initial Provisioning Data shall cover all Spare Parts, including agreed Vendor Parts, which in IAE’s opinion may be reasonably required for AAH’s operation of
the Installation Items.
			
		  	3.3.4	  	Before AAH places Initial Provisioning Orders, a conference shall be held for the review of Initial Provisioning Data supplied by IAE under Clause 3.3.1 above. The said
conference shall be held as soon as practicable before first Aircraft delivery and shall be attended by the personnel of each party directly responsible for Initial Provisioning.
		
	3.4	  	Change In Initial Provisioning Data
		
		  	[*]

  
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	3.5	  	Discontinuance of Initial Provisioning Data - Use of Procurement Data	  	  

				
		  	3.5.1	  	Use of Initial Provisioning Data shall be discontinued on a date to be agreed by the parties hereto, but in any event no later than the date of delivery of the last
Aircraft firmly ordered by AAH at the date of this Contract. On or before the said date IAE shall furnish AAH with Procurement Data complying with ATA Specification 2000 and shall revise the said Procurement Data as a matter of routine
thereafter.	  	
				
		  	3.5.2	  	Procurement Data shall be used to enable AAH to continue to order Spare Parts to support the Installation Items.	  	
			
	3.6	  	Stocking of Spare Parts	  	
			
		  	Promptly following receipt of IAE’s request, AAH shall provide IAE with information reasonably required to enable IAE to plan and organize the manufacture and
stocking of Spare Parts.	  	
			
	3.7	  	Lead Times	  	
				
		  	3.7.1	  	Spare Parts for Initial Provisioning shall be delivered on or before the dates specified in AAH’s orders, provided that the said dates comply with lead times and
do not call for delivery more than three (3) months before the scheduled date of delivery of the first Aircraft to AAH and provided further that delivery of the total Initial Provisioning quantity shall be effected in line with AAH’s fleet
build up and Aircraft utilization.	  	
				
		  	3.7.2	  	Except as herein provided, replenishment Spare Parts shall be delivered within the Lead Time specified in the IAE Spare Parts Catalog, except for certain major Spare
Parts which shall be designated in Initial Provisioning Data and Procurement Data as being available at prices and lead times to be quoted upon request.	  	
				
		  	3.7.3	  	If any order for replenishment Spare Parts shall call for a quantity materially in excess of AAH’s normal requirements, IAE shall notify AAH and may request a
special delivery schedule. If AAH confirms that the full quantity ordered is required, delivery of the order shall be effected at delivery dates specified by IAE, and with respect to the excess quantity, the Lead Times provided by this Clause shall
not apply.	  	
				
		  	3.7.4	  	In an emergency, IAE shall use its reasonable efforts to deliver Spare Parts, including certain major Spare Parts referred to in Clause 3.7.2 above, within the time
limits specified by AAH. The action to be taken on such orders shall be advised as follows within the following time periods from IAE’s receipt of such notice:	  	
				
		  		  	3.7.4.1	  	AOG orders - within 4 hours;
				
		  		  	3.7.4.2	  	other emergency orders - within 24 hours;
				
		  		  	3.7.4.3	  	orders for items of which AAH is out-of-stock - within 7 days.

  
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	3.8	  	Ordering Procedure
			
		  	3.8.1	  	After receipt of Initial Provisioning Data, AAH shall place its Initial Provisioning Orders in sufficient time to allow IAE to commence delivery prior to delivery of the first
Aircraft. AAH shall use its reasonable efforts to give priority to ordering major items designated in the Initial Provisioning Data.
			
		  	3.8.2	  	Subsequent orders for Spare Parts shall be placed by AAH from time to time as may be appropriate. AAH shall give IAE as much notice as reasonably possible of any change in its
operation of the Aircraft, including, but not limited to, changes in maintenance or overhaul arrangements affecting its requirements of Spare Parts, including Vendor Parts.
			
		  	3.8.3	  	IAE shall promptly acknowledge receipt of each order for Spare Parts in accordance with ATA Specification 2000 procedure. Unless qualified, such acknowledgment, subject to
variation in accordance with Clause 3.7.3 above, shall constitute an acceptance of the order under the terms of this Contract.
			
		  	3.8.4	  	If IAE notifies AAH that certain Spare Parts are packed in standard package quantities (hereinafter called “SPQs”), AAH’s subsequent orders for such Spare Parts
shall be for SPQs or multiples thereof.
			
		  	3.8.5	  	Unless AAH shall have specified “Total Quantity Required” on its orders, IAE shall be entitled to consider an order for inexpensive Spare Parts complete if at least 90%
of the quantity ordered is delivered. For the purpose of this Clause the term “inexpensive” shall mean a price listed in the IAE Spare Parts Catalog at less than Ten U.S. Dollars ($10) per unit, but shall be subject to reasonable change by
IAE from time to time. The invoice for any such order shall reflect the quantity of such Spare Parts actually delivered.
			
		  	3.8.6	  	Not later than the time of placing Initial Provisioning Orders, AAH shall provide IAE in writing with full shipping instructions applicable to both Initial Provisioning Orders
and to subsequent standard replenishment orders for Spare Parts to be placed by AAH. Such shipping instructions shall remain applicable until IAE receives written notice from AAH of any change to such shipping instructions.
		
	3.9	  	Modifications to Spare Parts
			
		  	3.9.1	  	IAE shall be entitled to make modifications or changes to the Spare Parts ordered by AAH hereunder provided that the said modification has received the approval of the
Certification Authority. IAE shall promptly inform AAH by means of Initial Provisioning Data, Procurement Data and Service Bulletins when such modified Spare Parts (or Spare Parts introduced by a repair scheme) become available for supply hereunder.
Notification of such availability shall be given to AAH before delivery.
			
		  	3.9.2	  	Modified Spare Parts shall be substituted for Spare Parts ordered unless the modifications stated in Service Bulletins, in the recommended or optional category are considered by
AAH to be unacceptable and AAH so states in writing to IAE within ninety (90) days of the transmittal date of a Service Bulletin, in which case AAH shall be entitled to place a single order for AAH’s anticipated total requirement of
pre-modified Spare Parts, at a price and delivery schedule to be agreed.

  
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	 	  	3.9.3	  	Unless AAH notifies IAE in writing under the provisions of Clause 3.9.2 hereof IAE may supply at the expense of
AAH a modification of any Spare Part ordered (including any
additional Spare Part needed to ensure
interchangeability), provided that the said modification has received the approval of the Certification Authority. The
delivery of such Spare Parts shall begin on dates indicated by Service Bulletin. The
delivery schedule shall be agreed
at the time when orders for modifications are accepted by IAE.
			
		  	3.9.4	  	If Spare Parts required for incorporation of a modification are not ordered as a kit, AAH’s orders must distinguish them from normal replacement Spare Parts in accordance
with ATA Specification 2000.
		
	3.10	  	Inspection
			
		  	3.10.1	  	Conformance to the Specification of Installation Items will be assured by IAE through the maintenance of procedures, systems and records approved by the Certification Authority.
Conformance documentation will be issued and signed by personnel authorized for such purpose.
			
		  	3.10.2	  	Conformance of Non-Installation Items will be assured by IAE conformance documentation.
			
		  	3.10.3	  	Upon the issue of conformance documentation in accordance with Clauses 3.10.1 or 3.10.2 above and provided the same shall not have been manifestly issued in error, AAH shall be
deemed to have accepted the Installation Items and Non-Installation Items and that such Items conform to the applicable specification, without prejudice to any of AAH’s warranty and support rights under this Contract.
		
	3.11	  	Delivery and Packing
			
		  	3.11.1	  	IAE shall deliver Spare Parts and Other Supplies Ex-Works (INCOTERMS 2000), the point of manufacture. Shipping documents and invoices shall be in accordance with ATA
Specification 2000 unless otherwise required by law.
			
		  	3.11.2	  	Upon such delivery, title to and risk of loss of or damage to the said Spare Parts and Other Supplies shall pass to AAH.
			
		  	3.11.3	  	In accordance with ATA Specification 2000 requirements, AAH shall advise IAE at time of order of its instructions as to the marking and shipping of the Spare Parts and Other
Supplies.
			
		  	3.11.4	  	The packaging of Spare Parts shall normally be in accordance with ATA Specification 300 Category 2 standard and shall be free of charge to AAH. The difference in pricing for
Category 1 standard packaging, if required by AAH, shall be paid for by AAH.

  
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	 3.12
	  	Prices
			
		  	3.12.1	  	Subject to Clause 3.7.2 above, prices of all Spare Parts shall be quoted in U.S. Dollars, in the IAE Spare Parts Price Catalog, Initial Provisioning Data and
Procurement Data. Such prices shall represent net unit prices, Ex-Works (INCOTERMS 1990) the point of manufacture.
			
		  	3.12.2	  	Prices applicable to each order placed by AAH hereunder shall be the prices in effect on the date IAE receives such order, except when delivery of Spare Parts against
any order is scheduled to take place after the Lead Time stated in the IAE Spare Parts Price Catalog, in which event the prices for such items shall be those prices in effect [*] prior to the scheduled time for delivery in accordance with Clause
3.12.3 below.
			
		  	3.12.3	  	IAE may adjust its prices for Spare Parts upon not less than [*] notice to AAH, except that prices for Spare Parts quoted in Initial Provisioning Data shall be firm,
provided that:
				
		  		  	3.12.3.1	  	Orders are placed within [*] of receipt by AAH of Initial Provisioning Data, and
				
		  		  	3.12.3.2	  	Ordered quantities are agreed in good faith by IAE, and
				
		  		  	3.12.3.3	  	Deliveries are scheduled to be made prior to the scheduled date for delivery of the first Aircraft (as it was scheduled at the date of supply by IAE of Initial Provisioning
Data).
			
		  		  	If for any reason orders are placed or subsequently rescheduled to specify delivery more than six (6) months after the date of first Aircraft delivery (as it was
scheduled at the date of supply by IAE of Initial Provisioning Data), then the prices for such items shall be those prices in effect [*] prior to the scheduled time for delivery of such items against a schedule commensurate with AAH fleet build up
and Aircraft utilization. Notwithstanding the above, individual price errors in the publication of prices may be adjusted without advance notice to AAH.
			
		  	3.12.4	  	On request by AAH, prices of Spare Parts or other materials not included in the Spare Parts Price Catalog shall be quoted within a reasonable time by
IAE.
		
	 3.13
	  	Payment
			
		  	3.13.1	  	Payment for all purchases under this Clause 3 shall be made by AAH to IAE within thirty (30) days after the date of delivery [*]. In such event, IAE shall have the
right to request payment immediately prior to delivery of Spare Parts and other Supplies which would cause the balance owing to exceed, the aforementioned amount.
			
		  	3.13.2	  	AAH undertakes that IAE shall receive payment in U.S. Dollars of the full amount of payments falling due under this Clause 3.13, without any withholding or deduction
whatsoever.

  
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		  	3.13.3	  	All payments under this Clause 3.13 shall be made by cable or telegraphic transfer to, and shall be deposited not later than the due date of payment
with:
			
		  		  	 Bank of America

		  		  	 1185 Avenue of the Americas

		  		  	 New York, NY 10038-4924

		  		  	 Account No.: 385002859903

		  		  	 ABA No.: 026009593

		  		  	 SWIFT Code: BOFAUS3N

		  		  	 CHIPS No: 0959

			
		  		  	or as otherwise notified from time to time by IAE in writing.
			
		  	3.13.4	  	For the purpose of this Clause 3.13, payment shall only be deemed to have been made to the extent immediately available funds are received in the account specified in
sub-clause 3.13.3 above.
			
		  	3.13.5	  	Notwithstanding Clause 3.13.1 above, payments for all purchases shall be due from AAH upon delivery, or at IAE’s option prior to delivery of the purchased items
upon the occurrence of any of the following events: (a) a receiver or trustee is appointed of any of AAH’s property, or (b) AAH is adjudicated or voluntarily becomes a bankrupt under any bankruptcy or winding up laws or other similar
legislation, or (c) AAH becomes insolvent or makes an assignment for the benefit of creditors, or (d) an execution is issued pursuant to a valid, final judgment rendered against AAH, or (e) AAH is unable or refuses to make payment to IAE in
accordance with any of AAH’s obligations to IAE.
			
		  	3.13.6	  	If AAH fails to make any payment for any Spare Parts or Other Supplies on or before the date when such payment is due, then, without prejudice to any other rights set
forth herein or under applicable law, IAE will be entitled to charge interest on the overdue amount [*] from the date such payment was due to the date such payment is made.
		
	 3.14
	  	Purchase by AAH from Others
			
		  	3.14.1	  	AAH may purchase from other V2500 operators Spare Parts, which by virtue of Clause 3.1 above are required to be purchased from IAE:
				
		  		  	3.14.1.1	  	on an occasional basis; or
				
		  		  	3.14.1.2	  	where the said operator has published details of excessive stock holdings of the Spare Parts concerned; or
				
		  		  	3.14.1.3	  	pursuant to a pooling arrangement or joint use agreement between any Grupo Taca Airline and the said operator; or
				
		  		  	3.14.1.4	  	if the other V2500 operator is a Grupo Taca Airline.
			
		  	3.14.2	  	Subject to the conditions specified below, in the following circumstances AAH may obtain from established and approved sources, other than IAE or other V2500 operators,
Spare Parts which by virtue of Clause 3.1 above are required to be purchased from IAE:

  
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		  		  	3.14.2.1	  	as a temporary expedient in the event of a failure or material delay by IAE to supply Spare Parts as required herein; or
				
		  		  	3.14.2.2	  	during any period when IAE is hindered or prevented from delivering Spare Parts due to circumstances beyond its control provided AAH is thereby able to obtain the Spare Parts it
requires sooner than IAE is able to supply them, and provided further that AAH will not unreasonably thereby increase its stock of the Spare Parts; or
				
		  		  	3.14.2.3	  	where IAE identifies a Spare Part as a standard part.
			
		  		  	AAH’s rights under Clause 3.14.2 above are subject to AAH being unable to satisfy its requirements for Spare Parts under the provisions of Clause 3.14.1
above.
			
		  	3.14.3	  	Nothing in this Clause 3.14 shall be deemed to extend the obligations of IAE or to diminish the limitations upon such obligations under the Warranties referred to in
Clauses 4.1 and 4.2 below.
			
		  	3.14.4	  	Notwithstanding any extension of the time of delivery in accordance with the provisions of Clause 6.1.1 below, AAH shall be entitled to cancel all or part of any order
on IAE for Spare Parts which, pursuant to the terms of Clauses 3.l4.2.l and 3.14.2.2 are purchased from another source by giving reasonable written notice to IAE of cancellation of the said order.
			
		  	3.14.5	  	In the event that AAH purchases Spare Parts under Clause 3.14 from other than a Grupo Taca Airline, AAH shall give written notice to IAE of the extent of such purchase
supported by any other technical information which IAE may reasonably require.
		
	 3.15
	  	Special Tools, Ground Equipment and Consumable Stores
		
		  	By mutual agreement, IAE may sell Other Supplies to AAH subject to the terms and conditions of this Contract, but the detailed procedures of this Contract with regard to
Initial Provisioning, Procurement Data, prices, stocking and Lead Time shall not apply. Technical data for special tools and ground equipment shall be in accordance with ATA Specification 101.
		
	 3.16
	  	Conflict
		
		  	In the event of any conflict between the provisions of this Contract and the provisions of ATA Specifications 101, 200, 2000 and 300, the provisions of this Contract
shall prevail.

  
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 CLAUSE 4 WARRANTIES, GUARANTEES AND LIABILITIES 

 

					
	 4.1
	  	IAE warrants to AAH that, at the time of delivery, the Supplies sold hereunder will be free of defects in material and manufacture, and will conform in all material
respects to IAE’s applicable specifications and rules and regulations of the Certification Authority. IAE’s liability and AAH’s remedies under this warranty are limited to the repair or replacement, at IAE’s election, of Supplies
or portions thereof returned to IAE at the place so instructed by IAE which are shown to IAE’s reasonable satisfaction to have been defective; provided, that written notice of the defect shall have been given by AAH to IAE within ninety (90)
days after the first operation or use of such Supplies or within thirty (30) days after the defect has become apparent (or if the Supplies are installed in new Aircraft, within ninety (90) days after acceptance of such Aircraft by its first
operator) but in no event later than one (1) year after the date of delivery of such Supplies by IAE. Transportation charges for the return of Supplies to IAE pursuant to this Clause 4.1 and their reshipment to AAH and the risk of loss thereof will
be borne by IAE provided the Supplies are returned in accordance with written shipping instructions from IAE and are defective and provided that IAE shall have provided such written shipping instructions promptly.
		
	 4.2
	  	In addition, IAE grants and AAH accepts the following:
			
		  	4.2.1	  	V2500 Engine and Parts Service Policy
			
		  	4.2.2	  	V2500 Nacelle and Parts Service Policy
			
		  	4.2.3	  	V2500 Non-Installation Items Warranty
			
		  	4.2.4	  	V2500 Reliability Guarantee
			
		  	4.2.5	  	V2400 Delay and Cancellation Guarantee
			
		  	4.2.6	  	V2500 Inflight Shutdown Guarantee
			
		  	4.2.7	  	V2500 Fuel Consumption Retention Guarantee
			
		  	4.2.8	  	V2500 Exhaust Gas Temperature Guarantee
			
		  	4.2.9	  	[*]
			
		  	4.2.10	  	[*]
			
		  	4.2.11	  	V2500 First Run Reliability Guarantee
			
		  	4.2.12	  	V2500 Remote Site Removal Guarantee
		
		  	The Service Policies, Warranties and Guarantees referred to in this Clause 4.2 are hereinafter called the “Warranties”. The above Service Policies,
Warranties and Guarantees together form Exhibit D to this Contract.
		
	 4.3
	  	The parties agree that those Warranties set out in Clauses 4.2.1 and 4.2.2 above shall apply to any equipment including but not limited to any V2500 aero engines and
any associated equipment therefor, and any parts for such engines and associated equipment which form part of any aircraft acquired from the Aircraft Manufacturer including Engines installed on Aircraft which falls within the categories of equipment
covered by those Warranties, which are manufactured, supplied or inspected by IAE howsoever and whenever (whether before, on or after the date first above written) acquired by AAH from whatsoever
source.

  
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	 4.4
	  		  	The Warranties are personal to AAH and to AAH for the benefit of the Grupo Taca Airlines and the obligations of IAE thereunder shall only apply insofar as AAH and/or a Grupo Taca
Airline owns and operates the Supplies covered thereunder. IAE agrees, as a minimum, to grant any lessee or purchaser of the Supplies (whether installed on Aircraft or not) a direct warranty agreement as set forth in Exhibit E to this
Contract.
			
	 4.5
	  		  	AAH shall inform any entity to whom it intends to sell, lease, loan or otherwise dispose of any of the Supplies or equipment referred to in Clause 4.3 above that such entity may
obtain from IAE and IAE hereby agrees to enter into a direct warranty agreement with any such entity (at no additional charge to AAH or such entity) incorporating those of the Warranties set out in Clauses 4.2.1 and 4.2.2. AAH shall also use its
reasonable endeavors to ensure that such entity shall enter into a direct warranty agreement with IAE prior to delivery of any of the Supplies or such equipment to such entity.
			
	 4.6
	  		  	IAE and AAH agree that the intent of the Warranties provided in Clause 4.2 is to provide specified benefits or remedies as a result of specified events. It is not the intent,
however, to duplicate benefits or remedies provided to AAH by IAE or another source (e.g., another equipment manufacturer or lessor) as a result of the same event or cause. Therefore, notwithstanding the terms of the Warranties, AAH agrees that it
shall not be eligible to receive benefits or remedies from IAE to the extent it results in AAH or Grupo Taca Airlines receiving duplicative benefits or remedies from IAE or another source as a result of the same event or cause. Furthermore, in no
event shall IAE be required to provide duplicate benefits to AAH and any other party such as a leasing company as a result of the same event or cause.
			
		  		  	 [*]:

			
		  		  	 [*]

			
	 4.7
	  		  	AAH accepts that the Warranties granted to AAH under Clauses 4.1, 4.2 and 4.3 above together with the express remedies provided to AAH in respect of the Supplies in accordance
with this Contract are expressly in lieu of, and AAH hereby waives, all other remedies, conditions and warranties, expressed or implied including without limitation, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, and
all other obligations and liabilities whatsoever of IAE and of its shareholders whether in contract or in tort or otherwise for any defect, deficiency, failure, malfunctioning or failure to function of any item of the Supplies or of the equipment
referred to in Clause 4.3 above, howsoever and whenever acquired by AAH from whatever sources. AAH agrees that neither IAE nor any of its shareholders shall be liable to AAH upon any claim therefor or upon any claim howsoever arising out of the
manufacture or supply or inspection by IAE or any of its shareholders of any item of the Supplies or of such equipment or any other item of whatever nature, whether in contract or in tort or otherwise, except as expressly provided in the said
Warranties, and AAH assumes all risk and liability whatsoever not expressly assumed by IAE in the said Warranties.
			
	 4.8
	  		  	IAE and AAH agree that this Clause 4 has been the subject of discussion and negotiation, is fully understood by the parties and the price of the Supplies and other mutual
agreements of the parties set forth in this Contract are arrived at in consideration of:
			
		  		  	4.8.1 the express Warranties of IAE and AAH’s rights thereunder; and

  
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		  	4.8.2	  	the exclusions, waivers and limitations set forth in Clause 4.7 above.
		
	 4.9
	  	References in the V2500 Engine and Parts Service Policy and in the V2500 Nacelle and Parts Service Policy to the “standard IAE labor rate letter” (for
example in Section III.A.3 of the V2500 Nacelle and Parts Service Policy) shall mean the letter set forth in Exhibit F to the Contract. The labor rate calculated pursuant to the standard IAE labor rate letter may be revised from time to time as
described in the letter.

 CLAUSE 5 PRODUCT SUPPORT SERVICES 
  

					
	 5.1
	  	IAE will make available to AAH the Product Support Services described in Exhibit C to this Contract. Except when identified in such Exhibit C as being at additional
cost or as requiring separate contractual arrangements, such Product Support Services shall be supplied at no additional charge to AAH and subject to the provisions of this Contract. IAE may delegate the performance of product support services to an
affiliated company or any of IAE’s shareholders.
		
	 5.2
	  	AAH will provide to any IAE customer support representative(s) working at its facility, free of charge:
			
		  	(a)	  	reasonable, secure office accommodation including furniture and office equipment and
			
		  	(b)	  	access to telephone, facsimile and secretarial services and
			
		  	(c)	  	access to such first-aid and emergency assistance as is customarily provided to AAH’s own employees and
			
		  	(d)	  	air travel on the network of Grupo Taca Airlines for travel away from such customer support representative(s)’ normal location at AAH with respect to support provided
pursuant to this Contract.
		
		  	AAH further agrees that such customer support representative(s) will be entitled at IAE’s cost to all reasonable working benefits allowed pursuant to normal IAE
practice, including but not limited to, leaves of absence relating to vacation, holiday and sick time.
		
		  	It is expressly agreed that unless specifically agreed to in a writing signed by both parties, IAE customer support representatives shall at no time be considered
employees of AAH and that AAH shall not be responsible for the payment of such customer support representatives’ salary or benefits.

 CLAUSE 6 MISCELLANEOUS 
  

									
	6.1	  	Delay in Delivery
			
		  	6.1.1	  	 
 
 	If IAE is hindered or prevented from performing any obligation hereunder including but not limited to delivering any of
the Supplies within the time for delivery
specified in this Contract (as such time may be extended pursuant to the
provisions of this Contract) by reason of:
				
		  		  	 	6.1.1.1	  	  	any cause beyond the reasonable control of IAE, or
				
		  		  	 	6.1.1.2	  	  	fires, industrial disputes or introduction of essential modifications required by the Certification Authority

  
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		  		  	subject to the provisions of Clause 6.1.5 hereunder, the time for delivery shall be extended by a period equal to the period for which delivery shall have been so
hindered or prevented, and IAE shall not be under any liability whatsoever in respect of such delay.
			
		  	6.1.2	  	If, by reason of any of the causes embraced by Clause 6.1.1 above, IAE is hindered or prevented from or delivering any goods (which are the same as and include the
Supplies) to purchasers (including AAH) then IAE shall have the right to allocate such goods, as they become available, at its own discretion among all such purchasers and IAE shall not be under any liability whatsoever to AAH for delay in delivery
to AAH resulting from such allocation by IAE and the time for delivery shall be extended by a period equal to the delay resulting from such allocation by IAE.
			
		  	6.1.3	  	Should IAE inexcusably delay performance of any obligation hereunder including but not limited to delivery of any item of the Supplies beyond the time for delivery
specified in this Contract (as such time may be extended pursuant to the provisions of this Contract), then in respect of the first [*] of such delay, IAE shall not be under any liability whatsoever and thereafter in respect of any further delay in
delivery the damages recoverable by AAH from IAE as AAH’s sole remedy shall be its reasonable actual damages in an amount not to exceed [*] of the purchase price of the item of Supplies so delayed in respect of each month of such further delay
(and prorata for any period of less than one month) subject to an overall maximum of [*] of the purchase price of the item of the Supplies so delayed.
			
		  	6.1.4	  	The right of AAH to claim damages pursuant to Clause 6.1.3 above shall be conditional upon the submission of a written claim therefor, within [*] from the date on
which IAE notifies AAH that the item of the Supplies so delayed is ready for delivery, or from the date on which AAH exercises the right of cancellation in respect of such item conferred in accordance with Clause 6.1.5 below, whichever date shall
first occur.
			
		  	6.1.5	  	Should IAE delay performance of any obligation hereunder including but not limited to delivery of any item of the Supplies beyond [*] from the time for delivery
specified in this Contract (as such time may be extended pursuant to the provisions of this Contract) then, in addition to the right of AAH under Clause 6.l.3, AAH shall be entitled to refuse to take delivery of such item on giving IAE notice in
writing within one (1) month after the expiration of such period of [*]. Upon receipt of such notice IAE shall be free from any obligation in respect of such item except that IAE shall refund to AAH any deposits made in respect of the purchase price
of such item of the Supplies with interest from the date the deposit was received by IAE calculated at the rate of [*].

  
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	 6.2
	  	Patents	  	
			
		  	6.2.1	  	IAE shall, subject to the conditions set out in this Clause and as the sole liability of IAE in respect of any claims for infringement of intellectual property rights, indemnify
AAH against any claim that the use of any of the Supplies by AAH within any country to which at the date of such claim the benefits of Article 27 of the Convention on International Civil Aviation of 7th December l944 (The Chicago Convention) and the
International Convention for the Protection of Industrial Property apply, infringes any patent, design, or model duly granted or registered provided, however, that IAE shall not be liable to AAH for any consequential damage or any loss of use of the
Supplies or of the Aircraft in which the Supplies may be incorporated arising as a result directly or indirectly of any such claim.
			
		  	6.2.2	  	AAH will give prompt notice in writing to IAE of any such claim whereupon IAE shall have the right at its own expense to assume the defense of or to dispose of or to settle such
claim in its sole discretion. AAH will give IAE all reasonable assistance and IAE will reimburse AAH for its reasonable out-of-pocket expenses for providing such assistance to IAE. AAH will not by any voluntary act or omission knowingly do anything
which may directly or indirectly materially prejudice IAE in this connection.
			
		  	6.2.3	  	IAE shall at its option either: (1) substitute for any infringing Supplies substantially equivalent non-infringing supplies; or (2) procure for AAH the right to use any
infringing Supplies; or (3) modify any infringing Supplies so they become non-infringing.
			
		  	6.2.4	  	The indemnity contained in Clause 6.2.1 above shall not apply to claims for infringement in respect of (i) Supplies manufactured to the specific design instructions of AAH; (ii)
Supplies not of IAE design (but IAE shall in the event of any claim for infringement pass on to AAH 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 Supplies); (iii) the
manner or method in which any of the Supplies is installed in the Aircraft; or (iv) any combination of any of the Supplies with any item or items other than Supplies.

  
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	 6.3
	  	Credit Reimbursement
		
		  	If AAH does not take delivery of the [*] Firm Aircraft, the [*] Firm Spare Engines, and to the extent that Rolling Option Aircraft are acquired, those Rolling Option
Aircraft and the required number of Option Spare Engines (each Firm Aircraft, Firm Spare Engine, Rolling Option Aircraft and Option Spare Engine equally a “Firm Item”) in accordance with the schedules described in Exhibits B-1 and B-2 to
the Contract (as such may be modified or supplemented pursuant to the terms of the Contract) then, without prejudice to IAE’s other rights and remedies under the Contract or otherwise, the value of each and every credit, benefit and other
concession received by AAH pursuant to the Contract (including all Side Letters and amendments thereto) or from IAE via the Aircraft Manufacturer will be adjusted to pro-rata amounts, based on the ratio of the number of Firm Items (whether Aircraft
or Spare Engines) purchased in accordance with the schedules described in Exhibits B-1 and B-2 to the Contract to the total number of Firm Items scheduled to have been so purchased. So, for example, if IAE is to issue credits on delivery of each
Firm Item and AAH takes delivery of only half the total number of such Firm Items (whether or not with the consent of the Aircraft Manufacturer) the value of each credit to be issued on the Firm Items actually taken and all other credits (if any)
will be reduced by half. Following such adjustment, AAH will promptly reimburse IAE in an amount equal to (a) the value of the credits, benefits and other concessions actually provided in excess of the adjusted amounts, plus (b) the interest on such
excess amounts calculated from the time each respective amount was applied or value received until reimbursement. Interest will be calculated at [*] in effect at the time each respective amount was applied or value was received. If AAH is in default
of any payment obligations under the terms of this Contract, IAE will, without prejudice to any of its other rights be entitled to offset any unused IAE credit in AAH’s account with IAE against such outstanding amount.
		
	 6.4
	  	Non-Disclosure and Non-Use
			
		  	6.4.1	  	Subject to Clause 6.4.3 below, each party agrees not to disclose to any third party (except to professional advisors) any Information which it acquires directly or indirectly from
the other and agrees not to use the same other than for the purpose for which it was disclosed or for purposes of enforcement of this Agreement in an arbitration of judicial proceeding without the written approval of the other. The expression
“Information” in this Clause 6.4.1 includes but is not limited to all oral or written information, know-how, data, reports, drawings and specifications, and all provisions of this Contract.
			
		  	6.4.2	  	Each party shall be responsible for the observance of the provisions of Clause 6.4.1 above by its employees and professional advisors.
			
		  	6.4.3	  	The provisions of Clause 6.4.1 above shall not apply to information which is or becomes generally known in the aero engine industry nor shall the provisions of Clause 6.4.1 above
prevent any necessary disclosure of information to enable the other to operate, maintain or overhaul Supplies, nor to information required to be disclosed by a valid governmental, judicial or regulatory agency order or subpoena.
			
		  	6.4.4	  	AAH shall be responsible for obtaining any required authorization including any export licenses (other than export licenses for the country of manufacture), import licenses,
exchange permits or any other governmental authorizations required in connection

  
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	 	  	 	  	with the transactions contemplated under this Contract. AAH shall restrict disclosure of all information and data
furnished under this Contract in obtaining such licenses,
permits, or authorizations. AAH shall only ship the Supplies and
information and data furnished under this Contract to those destinations permitted under such licenses, permits, or
authorizations.
			
		  	6.4.5	  	In the event that any of the Information as described in Clause 6.4.1 is required to be disclosed by either party through a valid governmental, judicial or regulatory agency
order, that party agrees to advise the other of the need for disclosure (in advance of such disclosure when possible) and to limit the disclosure to those portions of the Information required to be disclosed by such order, and to maintain the
confidentiality of as much of the Information as legally possible in the sole good faith judgment of the party so ordered.
		
	6.5	  	Taxes
			
		  	6.5.1	  	Subject to Clause 6.5.2 below, IAE shall pay all imposts, duties, fees, taxes and other like charges levied by the governments of the United Kingdom, the United States of
America, the Federal Republic of Germany, Japan and any other country where the Supplies or portions thereof are manufactured or delivered or any agency thereof in connection with the Supplies prior to their delivery.
			
		  	6.5.2	  	All amounts stated to be payable by AAH pursuant to this Contract exclude any value added tax, sales tax or other similar tax. In the event that the supply of goods or services
under this Contract is subject to any value added tax, sales tax or other similar tax, such tax will be borne by AAH. To ensure so far as possible that AAH is not charged with value added tax (“VAT”) of the European Union or any member
country thereof, AAH will within thirty (30) days of signature hereof, inform IAE of its VAT Code (if any) for inclusion on IAE’s invoices. Further, each party agrees to reasonably cooperate with the other to reduce the tax liabilities of the
other.
			
		  	6.5.3	  	AAH shall pay all other imposts, duties, fees, taxes and other like charges by whomsoever levied other than (i) taxes on IAE’s gross or net income or gains; (ii) taxes which
would not have been imposed but for a connection between IAE and the taxing jurisdiction unrelated to this Agreement; and (iii) taxes which would not have been imposed but for the gross negligence of willful misconduct of or a breach of this
Agreement by IAE.
		
	6.6	  	Amendment
		
		  	This Contract shall not be amended in any way other than by written agreement by the parties on or after the date of this Contract, which agreement is expressly stated
to amend this Contract.

  
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	6.7	  	Assignment
		
		  	Except as provided under Clause 5.1 above, 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 or its rights and obligations, or a portion thereof, to any wholly owned subsidiary of IAE or to any of IAE’s shareholders subject to such subsidiary or shareholders being able to fulfill the
obligations being assigned). Any assignment made in violation of this Clause 6.7 shall be null and void.
		
		  	IAE understands that AAH may use any of various mechanisms to finance or acquire the Aircraft or to refinance its acquisition of an Aircraft, including a sale leaseback whereby
AAH or the Aircraft Manufacturer sells the aircraft to a third party and a Grupo TACA Airline leases the Aircraft from the third party. IAE agrees to reasonably consider AAH’s timely requests that IAE consent to the assignment of AAH’s
rights or obligations hereunder to facilitate the financing, acquisition or refinancing of the Aircraft. In respect of the purchase of the Aircraft or a sale leaseback of the Aircraft, IAE agrees that AAH may assign the Contract with respect to the
particular affected Aircraft to an affiliated Special Purpose Corporation or the purchaser/lessor in a sale leaseback transaction.
		
		  	IAE also understands that AAH is an operating lessor and not an operator of equipment and that Grupo Taca Airlines will be the ultimate users of the Aircraft and Supplies.
Furthermore, Grupo Taca Airlines may be the purchasers of the Supplies (with the exception of the Spare Engines). AAH may make an assignment of the relevant portions of the Contract (including but not limited to the relevant portions of Clauses 1,
3, 4 and 6) relating to the purchase of Supplies with recourse to AAH except that IAE shall retain the right to amend Clause 3.13.
		
	6.8	  	Exhibits
		
		  	In the event of any unresolved conflict or discrepancy between the Exhibits (which are hereby expressly made a part of this Contract) and Clauses of this Contract then the
Clauses shall prevail.
		
	6.9	  	Headings
		
		  	The Clause headings and the Index do not form a part of this Contract and shall not govern or affect the interpretation of this Contract.
		
	6.10	  	Governing Law and Forum
		
		  	This Contract shall be subject to and interpreted and construed in accordance with the laws of the State of New York, United States of America (excluding its conflicts of law
provisions). The parties agree to exclude the application of the United Nations Convention on Contracts for the International Sale of Goods (1980). Any suit, action or proceeding against any of the parties hereto with respect to this Contract and
any judgment entered by any court in respect thereof may be brought in the Supreme Court of the State of New York, or in the United States District Court for the State of New York, as each party hereto in its sole discretion may elect, and each
party hereto submits to the non-exclusive jurisdiction of such New York courts for purpose of any such suit, action or proceeding.

  
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	6.11	  	Notices
		
		  	Any notice to be served pursuant to this Contract shall be in the English language and is to be sent by certified mail, recognized international courier or facsimile
(with confirmation copy by any other means) to:
		
		  	In the case of IAE:
		
		  	IAE International Aero Engines AG
		  	IAE Building
		  	400 Main Street, M/S 121-10
		  	East Hartford, Connecticut 06108
		  	United States of America
		  	Facsimile No.: (860) 565-5220
		  	Attention: Chief Legal Officer
		
		  	In the case of AAH:
		
		  	Atlantic Aircraft Holdings Limited
		  	c/o The Winterbotham Trust Company
		  	Bolam House
		  	King & George Streets
		  	Nassau, Bahamas
		  	Facsimile No.: (242) 356-9432
		  	Attention: Directors
		
		  	with a copy to:
		
		  	TACA International Airlines, S.A.
		  	Avenida El Espino y Boulevard Sur
		  	Santa Elena, Antiguo Cuscatlan
		  	La Libertad, El Salvador
		  	Fax No. + 503 2298 - 0827
		  	Attention: Senior Vice President and Chief Financial Officer
		
		  	or in each case to such other place of business as may be notified from
		  	time to time by the receiving party.
		
	6.12	  	Exclusion of Other Provisions and Previous Understandings
			
		  	6.12.1	  	This Contract, including all exhibits and all letter agreements thereto, as amended, contains the only provisions governing the sale and purchase of the Supplies and shall apply
to the exclusion of any other provisions on or attached to or otherwise forming part of any order form of AAH, or any acknowledgment or acceptance by IAE, or of any other document which may be issued by either party relating to the sale and purchase
of the Supplies.

  
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		  	6.12.2	 	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
Contract, whether orally or in writing, relating to the Supplies, other than those expressly incorporated in this Contract, which has been negotiated on the basis that its provisions represent their entire agreement relating to the Supplies and
shall supersede all such representations, agreements, statements and understandings.
		
	6.13	  	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.
		
	6.14	  	Counterparts
		
		  	This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same
instrument.
		
	6.15	  	Right of Setoff
		
		  	IAE shall have the right to set off credits from time to time made available by IAE under the Contract either directly to AAH (or its affiliates) or via the Aircraft
Manufacturer or its affiliates, in respect of the failure by AAH (or its affiliates), after any applicable grace period, to cure any payment default under (x) the Contract, (y) the Fleet Hour Agreement, or (z) the IAE Financing
Agreement.
		
	6.16	  	Conditions Precedent
		
		  	During the term of this Contract, the obligations of IAE to provide, or cause to be provided Supplies or any other benefits to AAH pursuant to the terms hereof, shall
be subject to the non-existence of any of the following events on the date when such Supplies or benefits becomes due, and should any such event then exist and until such event shall have been remedied IAE shall be under no obligation to provide, or
cause to be provided any Supplies or any other benefits to AAH:
			
		  	(a)	 	A continuing event of default (taking into account any applicable grace period) by AAH (good faith disputes by AAH of amounts due not constituting a default hereunder) in (x) the
payment of [*]U.S. Dollars (US$[*]) or more of other amounts under the Contract (including any exhibits and letter agreements thereto), (y) the payment of [*] U.S. Dollars (US[*]) or more of other amounts under the Fleet Hour Agreement (including
any exhibits and letter agreements thereto), or (z) the payment of any scheduled amount of principal, interest, lease rental or other similar payment under any of the financings implemented pursuant to the IAE Financing Agreement;
or
			
		  	(b)	 	Any event that is a Termination Event or would be a Termination Event, but for the giving of notice or lapse of time, shall have occurred.

  
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		  	During the term of this Contract, should IAE be in material default of IAE’s obligations as set forth in the IAE Financing Agreement, and so long as IAE’s
default is unrelated to interpretation of the language of the IAE Financing Agreement or the good faith and reasonable application of any particular provision in the IAE Financing Agreement, and so long as AAH is not in default of any of its
obligations as set forth in the IAE Financing Agreement, AAH shall not be obligated to acquire further Aircraft and Spare Engines as set forth in this Contract (other than Spare Engines to maintain the ratio of Engines installed on the Aircraft to
Spare Engines as set forth in this Contract).
		
	6.17	  	Termination Events
		
		  	IAE shall have the option, at its sole discretion, to terminate this Contract in whole or in part, upon the occurrence of any of the following events
(“Termination Events”):
			
		  	(i)	 	AAH commences any case, proceeding or other action with respect to AAH or its property in any jurisdiction relating to bankruptcy, insolvency, reorganization, dissolution,
liquidation, winding-up, or relief from, or with respect to, or readjustment of, debts or obligations; or
			
		  	(ii)	 	AAH seeks the appointment of a receiver, trustee, custodian or other similar official for AAH for all or substantially all of its assets, or AAH makes a general assignment for
the benefit of its creditors; or
			
		  	(iii)	 	AAH otherwise becomes the object of any case, proceeding or action of the type referred to in the preceding clauses (i) or (ii) which remains unstayed, undismissed or
undischarged for a period of sixty (60) days; or
			
		  	(iv)	 	An action is commenced against AAH seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which
remains unstayed, undismissed or undischarged for a period of sixty (60) days; or
			
		  	(v)	 	AAH shall default (taking into account any grace period) on any payment of principal or interest under the IAE Financing Agreement or in the payment of any guarantee or similar
obligation in connection therewith (including in each case all Appendices, Exhibits and Letter Agreements thereto) if IAE or any affiliate or assignee of IAE, as the case may be, shall have declared such agreement to be in default (to the extent
required thereunder) and shall have commenced the exercise of remedies as a result of such default; or
			
		  	(vi)	 	AAH shall be in material default (taking into account any grace period) of any of its other obligations under the Contract or the IAE Financing Agreement.
		
		  	AAH shall have the option, at its sole discretion, to terminate this Contract in whole or in part, upon the occurrence of any of the following
events:
			
		  	(i)	 	IAE commences any case, proceeding or other action with respect to IAE or its property in any jurisdiction relating to bankruptcy, insolvency, reorganization, dissolution,
liquidation, winding-up, or relief from, or with respect to, or readjustment of, debts or obligations; or

  
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		 	(ii)	  	IAE seeks the appointment of a receiver, trustee, custodian or other similar official for IAE for all or substantially all of its assets, or IAE makes a general assignment for
the benefit of its creditors; or
			
		 	(iii)	  	IAE otherwise becomes the object of any case, proceeding or action of the type referred to in the preceding clauses (i) or (ii) which remains unstayed, undismissed or
undischarged for a period of sixty (60) days; or
			
		 	(iv)	  	An action is commenced against IAE seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which
remains unstayed, undismissed or undischarged for a period of sixty (60) days; or
			
		 	(v)	  	IAE shall be in material default (taking into account any grace period) of any of its obligations under the Contract or the IAE Financing Agreement; or
			
		 	(vi)	  	[*].

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 IN WITNESS WHEREOF the parties hereto have caused this Amended and Restated Contract to be signed on their
behalf by the hands of their authorized officers the day and year first before written: 
  

					
	 For IAE International Aero Engines AG
	 	  
	 	
			
	 In the presence of
	 	  
	 	
			
	 For Atlantic Aircraft Holdings Limited
	 	  
	 	
			
	 In the presence of
	 	  
	 	

  
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 EXHIBIT A-1 

  
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 V2500 TURBOFAN ENGINE MODEL SPECIFICATION 

 

			
	FAA Commercial Type Certificate E4ONE	  	Model V2524 - A5
		  	Spec. No. IAE S24A5/2

 SEA LEVEL STATIC RATINGS 
 (See General Notes) 
  

							
		 		 	Net
 Thrust

lb
	  	
				
	Take-off Rating (5 min)	 		 	24,480	  	
	Maximum Continuous Rating	 		 	19,200	  	

 DESCRIPTION 

Type - Dual rotor, axial flow, high bypass turbofan, single-stage fan, four-stage low compressor, ten-stage high pressure compressor, annular combustor,
two-stage high pressure turbine, five-stage low pressure turbine. 
 Installation Drawing No. 4W6199. The Engine Installation Drawing shows
the Engine envelope and provides dimensions and data for the engine installation interfaces. 
 FUEL AND OIL 

 

			
	Fuel - Specification:        MIL-T-5624, MIL-T-83133 or ASTM-D-1655
	Oil - Specification:          MIL-L-23699 Type II
	Oil Consumption: Maximum (as measured over a 10-hour period) 0.15 U.S. gal/hr

 STANDARD EQUIPMENT 
 (Included in Engine Price) 
 FUEL SYSTEM AND CONTROL SYSTEM COMPRISING: 

LP/HP Fuel Pump, Fuel Filter Element, Fuel Temperature Sensor, Fuel Diverter/Back to Tank Valve, Fuel Distribution Valve, P2T2 Probe, Relay Box,
Electronic Engine Control, Dedicated Generator, P4.9 Sensors and Manifold, Woodward Governor Company Fuel Metering Unit, Fuel Supply Pipe. 

  
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 IGNITION SYSTEM COMPRISING: 
 Ignition Exciter, Igniter Plug, Ignition Lead (2 each). 
 AIR SYSTEM COMPRISING:

 No. 4 Bearing Compartment Heat Exchanger, HP/LP Active Clearance Control Valve, Active Clearance Control Valve Actuator, LP Compressor
Bleed Valve Master Actuator, LP Compressor Bleed Valve Slave Actuator, Variable Stator Vane Actuator, HP Compressor Bleed Valves, HP Compressor Bleed Valve Solenoids. 
 ENGINE INDICATING SYSTEM COMPRISING: 
 Exhaust Gas Temperature (EGT) Thermocouples, EGT Harness
and Junction Box. 
 OIL SYSTEM COMPRISING: 
 Oil Tank, Air Cooled Oil Cooler, Fuel Cooled Oil Cooler, Pressure Oil Filter Element, Air Cooled Oil Cooler Modulating Valve, Scavenge Oil Filter Housing Assembly and Element, No. 4 Bearing
Compartment Scavenge Valve, No. 4 Bearing Scavenge Pressure Transducer, IDG Fuel Cooled Oil Cooler. 
 MISCELLANEOUS:

 Electrical EEC Harnesses - Fan and Core, Nose Spinner, PART - Drains, If Intertwined With Engine parts, Airframe Accessory Mounting Pads and
Drives, PART - Brackets on Working Flanges for attachment of Aircraft Equipment and EBU, PART - IDG Piping, where Intertwined with Engine Parts. 
 ADDITIONAL EQUIPMENT 
 Available at Increased Price 

Engine Storage Bag 
 Engine Transportation Stand

 Enhanced Engine Condition Monitoring Instrumentation 
 Items of ADDITIONAL EQUIPMENT should be ordered at the time of engine procurement in order to assure availability of this equipment at the time of engine shipment. 

  
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 GENERAL NOTES 
 The specified Sea Level Static Ratings are ideal and are based on U.S. Standard Atmosphere 1962 conditions, the specified fuel and oil, an ideal inlet pressure recovery, no fan or compressor air bleed or
load on accessory drives, a mixed exhaust system having no internal pressure losses and with a mixed primary nozzle velocity coefficient equal to 1.0. 
 Take-off rating is the maximum thrust certified for take-off operation. Take-off thrust is available at and below ISA + 40oC (72oF) ambient temperatures. 
 Maximum Continuous Rating is the maximum thrust certified for continuous operation. The specified thrust is available at and below ISA + 18oF (10oC) ambient temperature. 
 Maximum Climb Rating is the maximum thrust approved for normal climb operation. 
 Maximum Cruise
Rating is the maximum thrust approved for normal cruise operation. 
 Unless otherwise specified, engines will be supplied with the STANDARD
EQUIPMENT listed. 

  
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 EXHIBIT A-2 

  
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 V2500 TURBOFAN ENGINE MODEL SPECIFICATION 

 

			
	            FAA Commercial Type Certificate E4ONE	  	Model V2527 - A5
		  	            Spec. No. IAE S27A5/2

 SEA LEVEL STATIC RATINGS 
 (See General Notes) 
  

					
		  	Net
 Thrust

lb
	  	
			
	Take-off Rating (5 min)	  	24,800	  	
	Maximum Continuous Rating	  	22,240	  	

 DESCRIPTION 

Type - Dual rotor, axial flow, high bypass turbofan, single-stage fan, four-stage low compressor, ten-stage high pressure compressor, annular combustor,
two-stage high pressure turbine, five-stage low pressure turbine. 
 Installation Drawing No. 4W6199. The Engine Installation Drawing shows
the Engine envelope and provides dimensions and data for the engine installation interfaces. 
 FUEL AND OIL 

 

			
	Fuel - Specification:        MIL-T-5624, MIL-T-83133 or ASTM-D-1655
	Oil - Specification:          MIL-L-23699 Type II
	Oil Consumption: Maximum (as measured over a 10-hour period) 0.15 U.S. gal/hr

 STANDARD EQUIPMENT 
 (Included in Engine Price) 
 FUEL SYSTEM AND CONTROL SYSTEM COMPRISING: 

LP/HP Fuel Pump, Fuel Filter Element, Fuel Temperature Sensor, Fuel Diverter/Back to Tank Valve, Fuel Distribution Valve, P2T2 Probe, Relay Box,
Electronic Engine Control, Dedicated Generator, P4.9 Sensors and Manifold, Woodward Governor Company Fuel Metering Unit, Fuel Supply Pipe. 

  
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 IGNITION SYSTEM COMPRISING: 
 Ignition Exciter, Igniter Plug, Ignition Lead (2 each). 
 AIR SYSTEM COMPRISING:

 No. 4 Bearing Compartment Heat Exchanger, HP/LP Active Clearance Control Valve, Active Clearance Control Valve Actuator, LP Compressor
Bleed Valve Master Actuator, LP Compressor Bleed Valve Slave Actuator, Variable Stator Vane Actuator, HP Compressor Bleed Valves, HP Compressor Bleed Valve Solenoids. 
 ENGINE INDICATING SYSTEM COMPRISING: 
 Exhaust Gas Temperature (EGT) Thermocouples, EGT Harness
and Junction Box. 
 OIL SYSTEM COMPRISING: 
 Oil Tank, Air Cooled Oil Cooler, Fuel Cooled Oil Cooler, Pressure Oil Filter Element, Air Cooled Oil Cooler Modulating Valve, Scavenge Oil Filter Housing Assembly and Element, No. 4 Bearing
Compartment Scavenge Valve, No. 4 Bearing Scavenge Pressure Transducer, IDG Fuel Cooled Oil Cooler. 
 MISCELLANEOUS:

 Electrical EEC Harnesses - Fan and Core, Nose Spinner, PART - Drains, If Intertwined With Engine parts, Airframe Accessory Mounting Pads and
Drives, PART - Brackets on Working Flanges for attachment of Aircraft Equipment and EBU, PART - IDG Piping, where Intertwined with Engine Parts. 
 ADDITIONAL EQUIPMENT 
 Available at Increased Price 

Engine Storage Bag 
 Engine Transportation Stand

 Enhanced Engine Condition Monitoring Instrumentation 
 Items of ADDITIONAL EQUIPMENT should be ordered at the time of engine procurement in order to assure availability of this equipment at the time of engine shipment. 

  
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 GENERAL NOTES 
 The specified Sea Level Static Ratings are ideal and are based on U.S. Standard Atmosphere 1962 conditions, the specified fuel and oil, an ideal inlet pressure recovery, no fan or compressor air bleed or
load on accessory drives, a mixed exhaust system having no internal pressure losses and with a mixed primary nozzle velocity coefficient equal to 1.0. 
 Take-off rating is the maximum thrust certified for take-off operation. Take-off thrust is available at and below ISA + 40°C (72°F) ambient temperatures. 

Maximum Continuous Rating is the maximum thrust certified for continuous operation. The specified thrust is available at and below ISA + 18°F
(10°C) ambient temperature. 
 Maximum Climb Rating is the maximum thrust approved for normal climb operation. 

Maximum Cruise Rating is the maximum thrust approved for normal cruise operation. 
 Unless otherwise specified, engines will be supplied with the STANDARD EQUIPMENT listed. 

  
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 EXHIBIT A-3 

  
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 V2500 TURBOFAN ENGINE MODEL SPECIFICATION 

 

					
	 FAA Commercial Type Certificate E4ONE
	  	Model V2527E - A5	  	
		  	        Spec. No. IAE S27EA5/2	  	

 SEA LEVEL STATIC RATINGS 
 (See General Notes) 
  

							
		  	 
 
 	Net
Thrust
lb	  
  
  	  	
	 Take-off Rating (5 min)
	  	 	24,800	  	  	
	 Maximum Continuous Rating
	  	 	22,240	  	  	

 DESCRIPTION 

Type - Dual rotor, axial flow, high bypass turbofan, single-stage fan, four-stage low compressor, ten-stage high pressure compressor, annular combustor,
two-stage high pressure turbine, five-stage low pressure turbine. 
 Installation Drawing No. 4W6199. The Engine Installation Drawing shows
the Engine envelope and provides dimensions and data for the engine installation interfaces. 
 FUEL AND OIL 

 

			
	 Fuel -Specification:
	 	        MIL-T-5624, MIL-T-83133 or ASTM-D-1655
	 Oil - Specification:
	 	        MIL-L-23699 Type II
	 Oil Consumption:
	 	Maximum (as measured over a 10-hour period) 0.15 U.S. gal/hr

 STANDARD EQUIPMENT 
 (Included in Engine Price) 
 FUEL SYSTEM AND CONTROL SYSTEM COMPRISING: 

LP/HP Fuel Pump, Fuel Filter Element, Fuel Temperature Sensor, Fuel Diverter/Back to Tank Valve, Fuel Distribution Valve, P2T2 Probe, Relay Box,
Electronic Engine Control, Dedicated Generator, P4.9 Sensors and Manifold, Woodward Governor Company Fuel Metering Unit, Fuel Supply Pipe. 

  
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 IGNITION SYSTEM COMPRISING: 
 Ignition Exciter, Igniter Plug, Ignition Lead (2 each). 
 AIR SYSTEM COMPRISING:

 No. 4 Bearing Compartment Heat Exchanger, HP/LP Active Clearance Control Valve, Active Clearance Control Valve Actuator,LP Compressor
Bleed Valve Master Actuator, LP Compressor Bleed Valve Slave Actuator, Variable Stator Vane Actuator, HP Compressor Bleed Valves, HP Compressor Bleed Valve Solenoids. 
 ENGINE INDICATING SYSTEM COMPRISING: 
 Exhaust Gas Temperature (EGT) Thermocouples, EGT Harness
and Junction Box. 
 OIL SYSTEM COMPRISING: 
 Oil Tank, Air Cooled Oil Cooler, Fuel Cooled Oil Cooler, Pressure Oil Filter Element, Air Cooled Oil Cooler Modulating Valve, Scavenge Oil Filter Housing Assembly and Element, No. 4 Bearing
Compartment Scavenge Valve, No. 4 Bearing Scavenge Pressure Transducer, IDG Fuel Cooled Oil Cooler. 
 MISCELLANEOUS:

 Electrical EEC Harnesses - Fan and Core, Nose Spinner, PART - Drains, If Intertwined With Engine parts, Airframe Accessory Mounting Pads and
Drives, PART - Brackets on Working Flanges for attachment of Aircraft Equipment and EBU, PART - IDG Piping, where Intertwined with Engine Parts. 
 ADDITIONAL EQUIPMENT 
 Available at Increased Price 

Engine Storage Bag 
 Engine Transportation Stand

 Enhanced Engine Condition Monitoring Instrumentation 
 Items of ADDITIONAL EQUIPMENT should be ordered at the time of engine procurement in order to assure availability of this equipment at the time of engine shipment. 

  
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 GENERAL NOTES 
 The specified Sea Level Static Ratings are ideal and are based on U.S. Standard Atmosphere 1962 conditions, the specified fuel and oil, an ideal inlet pressure recovery, no fan or compressor air bleed or
load on accessory drives, a mixed exhaust system having no internal pressure losses and with a mixed primary nozzle velocity coefficient equal to 1.0. 
 Take-off rating is the maximum thrust certified for take-off operation. Take-off thrust is available at and below ISA + 40oC (72oF) ambient temperatures. 

Maximum Continuous Rating is the maximum thrust certified for continuous operation. The specified thrust is available at and below ISA + 18oF
(10oC) ambient temperature. 
 Maximum Climb Rating is the maximum thrust approved for normal climb operation. 

Maximum Cruise Rating is the maximum thrust approved for normal cruise operation. 
 Unless otherwise specified, engines will be supplied with the STANDARD EQUIPMENT listed. 

  
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 EXHIBIT A-4 

  
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 V2500 TURBOFAN ENGINE MODEL SPECIFICATION 

 

					
	 FAA Commercial Type Certificate E4ONE
	  	Model V2533 - A5	  	
		  	        Spec. No. IAE S33A5/2	  	

 SEA LEVEL STATIC RATINGS 
 (See General Notes) 
  

							
		  	 
 
 	Net
Thrust
lb	  
  
  	  	
	 Take-off Rating (5 min)
	  	 	31,600	  	  	
	 Maximum Continuous Rating
	  	 	26,950	  	  	

 DESCRIPTION 

Type - Dual rotor, axial flow, high bypass turbofan, single-stage fan, four-stage low compressor, ten-stage high pressure compressor, annular combustor,
two-stage high pressure turbine, five-stage low pressure turbine. 
 Installation Drawing No. 4W6199. The Engine Installation Drawing shows
the Engine envelope and provides dimensions and data for the engine installation interfaces. 
 FUEL AND OIL 

 

			
	 Fuel - Specification:
	 	        MIL-T-5624, MIL-T-83133 or ASTM-D-1655
	 Oil - Specification:
	 	        MIL-L-23699 Type II
	 Oil Consumption:
	 	Maximum (as measured over a 10-hour period) 0.15 U.S. gal/hr

 STANDARD EQUIPMENT 
 (Included in Engine Price) 
 FUEL SYSTEM AND CONTROL SYSTEM COMPRISING: 

LP/HP Fuel Pump, Fuel Filter Element, Fuel Temperature Sensor, Fuel Diverter/Back to Tank Valve, Fuel Distribution Valve, P2T2 Probe, Relay Box,
Electronic Engine Control, Dedicated Generator, P4.9 Sensors and Manifold, Woodward Governor Company Fuel Metering Unit, Fuel Supply Pipe. 

  
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 IGNITION SYSTEM COMPRISING: 
 Ignition Exciter, Igniter Plug, Ignition Lead (2 each). 
 AIR SYSTEM COMPRISING:

 No. 4 Bearing Compartment Heat Exchanger, HP/LP Active Clearance Control Valve, Active Clearance Control Valve Actuator,LP Compressor
Bleed Valve Master Actuator, LP Compressor Bleed Valve Slave Actuator, Variable Stator Vane Actuator, HP Compressor Bleed Valves, HP Compressor Bleed Valve Solenoids. 
 ENGINE INDICATING SYSTEM COMPRISING: 
 Exhaust Gas Temperature (EGT) Thermocouples, EGT Harness
and Junction Box. 
 OIL SYSTEM COMPRISING: 
 Oil Tank, Air Cooled Oil Cooler, Fuel Cooled Oil Cooler, Pressure Oil Filter Element, Air Cooled Oil Cooler Modulating Valve, Scavenge Oil Filter Housing Assembly and Element, No. 4 Bearing
Compartment Scavenge Valve, No. 4 Bearing Scavenge Pressure Transducer, IDG Fuel Cooled Oil Cooler. 
 MISCELLANEOUS:

 Electrical EEC Harnesses - Fan and Core, Nose Spinner, PART - Drains, If Intertwined With Engine parts, Airframe Accessory Mounting Pads and
Drives, PART - Brackets on Working Flanges for attachment of Aircraft Equipment and EBU, PART - IDG Piping, where Intertwined with Engine Parts. 
 ADDITIONAL EQUIPMENT 
 Available at Increased Price 

Engine Storage Bag 
 Engine Transportation Stand

 Enhanced Engine Condition Monitoring Instrumentation 
 Items of ADDITIONAL EQUIPMENT should be ordered at the time of engine procurement in order to assure availability of this equipment at the time of engine shipment. 

  
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 GENERAL NOTES 
 The specified Sea Level Static Ratings are ideal and are based on U.S. Standard Atmosphere 1962 conditions, the specified fuel and oil, an ideal inlet pressure recovery, no fan or compressor air bleed or
load on accessory drives, a mixed exhaust system having no internal pressure losses and with a mixed primary nozzle velocity coefficient equal to 1.0. 
 Take-off rating is the maximum thrust certified for take-off operation. Take-off thrust is available at and below ISA + 40oC (72oF) ambient temperatures. 

Maximum Continuous Rating is the maximum thrust certified for continuous operation. The specified thrust is available at and below ISA + 18oF
(10oC) ambient temperature. 
 Maximum Climb Rating is the maximum thrust approved for normal climb operation. 

Maximum Cruise Rating is the maximum thrust approved for normal cruise operation. 
 Unless otherwise specified, engines will be supplied with the STANDARD EQUIPMENT listed. 

  
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 EXHIBIT A-5 

  
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 V2500 TURBOFAN ENGINE MODEL SPECIFICATION 

 

			
	 FAA Commercial Type Certificate E40NE
	  	Model V2527M - A5      
		  	Spec. No. IAE 27MA5/2

 SEA LEVEL STATIC RATINGS 
 (See General Notes) 
  

			
		  	Net
		  	Thrust
		  	lb
		
	 Take-off Rating (5 min)
	  	24,800
	 Equivalent take-off thrust at 0.2 Mn
	  	26,570
	 Maximum Continuous Rating
	  	22,240

 DESCRIPTION 

Type - Dual rotor, axial flow, high bypass turbofan, single-stage fan, four-stage low compressor, ten-stage high pressure compressor, annular combustor,
two-stage high pressure turbine, fivestage low pressure turbine. 
 Installation Drawing No. 4W6199. The Engine Installation Drawing shows
the Engine envelope and provides dimensions and data for the engine installation interfaces. 
 FUEL AND OIL 

Fuel - Specification:     MIL-T-5624, MIL-T-83133 or ASTM-D-1655 
 Oil - Specification:       MIL-L-23699 Type II 
 Oil Consumption:
Maximum (as measured over a 10-hour period) 0.15 U.S. gal/hr 
 STANDARD EQUIPMENT 

(Included in Engine Price) 
 FUEL SYSTEM AND CONTROL SYSTEM COMPRISING: 
 LP/HP Fuel Pump, Fuel Filter Element, Fuel
Temperature Sensor, Fuel Diverter/Back to Tank Valve, Fuel Distribution Valve, P2T2 Probe, Relay Box, Electronic Engine Control, Dedicated Generator, P4.9 Sensors and Manifold, Woodward Governor Company Fuel Metering Unit, Fuel Supply Pipe.

 IGNITION SYSTEM COMPRISING: 
 Ignition Exciter, Igniter Plug, Ignition Lead (2 each). 
 AIR SYSTEM COMPRISING:

 No. 4 Bearing Compartment Heat Exchanger, HP/LP Active Clearance Control Valve, Active Clearance Control Valve Actuator, LP Compressor
Bleed Valve Master Actuator, LP Compressor Bleed Valve Slave Actuator, Variable Stator Vane Actuator, HP Compressor Bleed Valves, HP Compressor Bleed Valve Solenoids. 

  
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 ENGINE INDICATING SYSTEM COMPRISING: 

Exhaust Gas Temperature (EGT) Thermocouples, EGT Harness and Junction Box. 
 OIL SYSTEM COMPRISING: 
 Oil Tank, Air Cooled Oil Cooler, Fuel Cooled Oil Cooler, Pressure Oil
Filter Element, Air Cooled Oil Cooler Modulating Valve, Scavenge Oil Filter Housing Assembly and Element, No. 4 Bearing Compartment Scavenge Valve, No. 4 Bearing Scavenge Pressure Transducer, IDG Fuel Cooled Oil Cooler. 

MISCELLANEOUS: 
 Electrical EEC
Harnesses - Fan and Core, Nose Spinner, PART - Drains, If Intertwined With Engine parts, Airframe Accessory Mounting Pads and Drives, PART - Brackets on Working Flanges for attachment of Aircraft Equipment and EBU, PART - IDG Piping, where
Intertwined with Engine Parts. 
 ADDITIONAL EQUIPMENT 
 Available at Increased Price 
 Engine Storage Bag 

Engine Transportation Stand 
 Enhanced Engine
Condition Monitoring Instrumentation 
 Items of ADDITIONAL EQUIPMENT should be ordered at the time of engine procurement in order to assure
availability of this equipment at the time of engine shipment. 
 GENERAL NOTES 

The specified Sea Level Static Ratings are ideal and are based on U.S. Standard Atmosphere 1962 conditions, the specified fuel and oil, an ideal inlet
pressure recovery, no fan or compressor air bleed or load on accessory drives, a mixed exhaust system having no internal pressure losses and with a mixed primary nozzle velocity coefficient equal to 1.0. 

Take-off rating is the maximum thrust certified for take-off operation. Take-off thrust is available at and below ISA + 31oC (56oF) ambient
temperatures. 
 Maximum Continuous Rating is the maximum thrust certified for continuous operation. The specified thrust is available at and
below ISA + 10oC (18oF) ambient temperature. 
 Maximum Climb Rating is the maximum thrust approved for normal climb operation. 

Maximum Cruise Rating is the maximum thrust approved for normal cruise operation. 
 Unless otherwise specified, engines will be supplied with the STANDARD EQUIPMENT listed. 

  
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 EXHIBIT B-1 

 

	I.	Aircraft Delivery Schedule [*] 

  

	*	[Two pages have been omitted in accordance with a request for confidential treatment] 

  
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 EXHIBIT B-2 
 Firm Spare Engine Delivery Schedule 

  
 [*]

 Page 52 of 118 

 EXHIBIT B-3 
 ESCALATION FORMULA 
 Any unit base price or other sum expressed to be subject to escalation
shall be calculated as a two step process: first, calculate base prices to June 2001 using SIC Code AHE 3724 as the labor index point in the escalation formula, and second, escalate from June 2001 to the delivery month using NAICS Code 336411 as the
labor index point in the escalation formula. 
  

	1.	Calculation 

 Step 1: Escalation formula
through June 2001 
  

					
	 [*]

	
	 Where:

			
	Pr	 	=	  	Base Contract Price or other Sum calculated to June 2001 rounded to the nearest dollar.
			
	Pb	 	=	  	The Basic Contract Price or other Sum.
			
	Lo	 	=	  	The “Average Hourly Earnings of Aircraft Engine and Engine Parts Production Workers” SIC Code 3724 published by the Bureau of Labor Statistics in the U.S. Department of
Labor for the month preceding the Base Month by four months.
			
	L	 	=	  	The “Average Hourly Earnings of Aircraft Engine and Engine Parts Production Workers” SIC Code 3724 for the month preceding June 2001 by four months.
			
	Mo	 	=	  	The “Producer Price Index, Code 10, For Metals and Metal Products” published by the Bureau of Labor Statistics in the U.S. Department of Labor for the month preceding
the Base Month by four months.
			
	M	 	=	  	The “Producer Price Index, Code 10, For Metals and Metal Products” for the month preceding June 2001 by four months.
			
	Eo	 	=	  	The “Producer Price Index, Code 5, For Fuel and Related Products and Power” published by the Bureau of Labor Statistics in the U.S. Department of Labor for the month
preceding the Base Month by four months.
			
	E	 	=	  	The “Producer Price Index, Code 5, For Fuel and Related Products and Power” for the month preceding June 2001 by four months,.
		
		 	The values of the factors 0.60L and 0.30 M and 0.10 E
		 		  	                             
       Lo             Mo               Eo
		
		 	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.

  
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 The Basic Contract Prices are subject to escalation as set forth herein from the Base Month of January 1997.

 Step 2 – Escalation formula for period post June 2001 

 

					
	 [*]

	
	 Where:

			
	Pi	 	=	  	The Invoice price or escalated sum rounded to the nearest dollar.
			
	Pr	 	=	  	The calculated June 2001 Basic Contract Price or other escalated Sum, as calculated in Step 1 above.
			
	Lo	 	=	  	The “Employment Cost Index (NAICS) Wages and Salaries for Aircraft Manufacturing, (NAICS Code 336411) CIU2023211000000I” published by the Bureau of Labor Statistics in
the U.S. Department of Labor for the month preceding June 2001 by four months.
			
	L	 	=	  	The “Employment Cost Index (NAICS) Wages and Salaries for Aircraft Manufacturing, (NAICS Code 336411) CIU2023211000000I” for the month preceding the month of delivery
or other date of determination by four months.
			
	Mo	 	=	  	The “Producer Price Index, Code 10, For Metals and Metal Products” published by the Bureau of Labor Statistics in the U.S. Department of Labor for the month preceding
June 2001 by four months.
			
	M	 	=	  	The “Producer Price Index, Code 10, For Metals and Metal Products” for the month preceding the month of delivery or other date of determination by four
months.
			
	Eo	 	=	  	The “Producer Price Index, Code 5, For Fuel and Related Products and Power” published by the Bureau of Labor Statistics in the U.S. Department of Labor for the month
preceding June 2001 by four months.
			
	E	 	=	  	The “Producer Price Index, Code 5, For Fuel and Related Products and Power” for the month preceding the month of delivery or other date of determination by four
months.

  

	2.	The values of the factors [*] 

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 may substitute any officially recognized and
substantially equivalent statistics. 

  
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	4.	The Basic Contract Prices contained in this Exhibit B-2 are subject to escalation from a Base Month of January 1997 to the month of delivery using Lo, Mo and Eo values
for September 1996. 

  

	5.	If the application of the formula contained in this Exhibit B-3 results in a Purchase Price which is lower than the Basic Contract Price, the Basic Contract Price will
be deemed to be the Purchase Price for such Supplies. 

  
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 EXHIBIT C 
 PRODUCT SUPPORT PLAN 

  
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 PRODUCT SUPPORT 
 FOR THE 
 V2500 ENGINE 

IAE INTERNATIONAL AERO ENGINES AG 
 Issue No. 6 

  
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 TABLE OF CONTENTS 

 

							
	I.	  	INTRODUCTION	  	ii
			
	II.	  	CUSTOMER SUPPORT	  	1
				
		  	•	  	Customer Support Manager	  	
		  	•	  	Customer Support Representatives	  	
		  	•	  	Customer Training	  	
		  	•	  	Engine Maintenance Management	  	
		  	•	  	Operations Monitoring	  	
		  	•	  	Special Programs	  	
			
	III.	  	BUSINESS SUPPORT	  	6
				
		  	•	  	Engine Warranty Services	  	
		  	•	  	Maintenance Center Support	  	
		  	•	  	Maintenance Facilities Planning Service	  	
		  	•	  	Engine Reliability and Economic Forecasts	  	
		  	•	  	Logistics Support Studies	  	
		  	•	  	Lease Engine Program	  	
			
	IV.	  	TECHNICAL SERVICES	  	9
				
		  	•	  	Technical Services	  	
		  	•	  	Powerplant Maintenance	  	
		  	•	  	Customer Performance	  	
		  	•	  	Diagnostic Systems	  	
		  	•	  	Human Factors	  	
		  	•	  	Flight Operations	  	
		  	•	  	Repair Services	  	
		  	•	  	Tooling and Support Equipment Services	  	
		  	•	  	Product Support Technical Publications	  	
			
	V.	  	SPARE PARTS	  	20
		  	•	  	Spare Parts Support	  	

  

					
	 PRODSUP
	  	i	  	

  
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 I. INTRODUCTION 
 IAE International Aero Engines AG (IAE) will make the following support personnel and services available to the V2500 engine customer: Flight Operations, Customer Performance, Customer Support
Representatives, Customer Maintenance Support, Technical Services, Powerplant Maintenance, Service Data Analysis, Human Factors, Repair Services, Warranty Administration, Maintenance Facilities Planning, Tooling and Support Equipment Services,
Product Support Technical Publications, Customer Training, Spare Parts Support and Maintenance Center Support. 
 To make these support services
readily available to you, our customer, in the most efficient manner, the Customer Support Group has been established and assigned primary responsibility within IAE for customer liaison. A Customer Support Manager is assigned to maintain direct
liaison with each individual Customer. A description of the various product support services available to each customer follows. 
 IAE reserves
the right to withdraw or modify individual services described herein at any time at its sole discretion. No such withdrawal or modification shall diminish the level of services and support which the Customer may be entitled to receive with respect
to V2500 Engines for which a firm order has been placed with IAE or with respect to Aircraft with installed V2500 Engines for which a firm order has been placed with the Aircraft Manufacturer, prior to the announcement of any such withdrawal or
modification. Should IAE retract or diminish the benefits of this Product Support Plan with respect to unexercised Rolling Option Aircraft, AAH shall be entitled to purchase such unexercised Rolling Option Aircraft with non-IAE provided engines.

 Unless stated to the contrary elsewhere in the Contract to which this Product Support plan is attached or in this Product Support plan
itself, reasonable quantities of the services described herein are provided at no cost to the Customer. 
  

					
	 PRODSUP
	  	ii	  	

  
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 II. CUSTOMER SUPPORT  
 CUSTOMER SUPPORT MANAGER 
 The Customer Support Manager provides a direct liaison between
the airline customer’s Engineering, Maintenance, Operations, Logistics, Commercial and Financial organizations and the corresponding functions within IAE. The Customer Support Manager assigned to each airline is responsible for coordinating and
monitoring the effort of the Product Support Department functional organization to achieve timely and responsive support for the airline. 
 The
Customer Support Manager provides the following specific services to the airline customer: 
  

	 	•	 	 Readiness Program and planning prior to EIS 

  

	 	•	 	 Technical recommendations and information. 

  

	 	•	 	 Engine Maintenance Management Plans 

  

	 	•	 	 Refurbishment, Modification and Conversion program planning assistance. 

 

	 	•	 	 Coordination of customer repair, maintenance and logistics requirements with the appropriate Product Support functional groups.

  

	 	•	 	 Assist with critical engine warranty/service policy claims. 

 The Customer Support Manager will represent the airline customer in IAE internal discussions to ensure that the best interests of the customer and IAE are considered when making recommendations to
initiate a program, implement a change or improvement in the V2500 engine. 
 CUSTOMER SUPPORT REPRESENTATIVES 

IAE Customer Support Representatives provide the following services to the airline customer: 

 

	 	•	 	 24 Hour Support 

  

	 	•	 	 Maintenance Action Recommendations 

  

	 	•	 	 Daily Reporting on Engine Technical Situations 

  

	 	•	 	 On-The-Job Training 

  

	 	•	 	 Service Policy Preparation Assistance 

  

	 	•	 	 Prompt Communication with IAE 

 ENGINE MAINTENANCE SUPPORT SERVICE 
 Customer Support Representatives assist airline customer
personnel in the necessary preparation for engine operation and maintenance. The Representative, teamed with a Customer Support Manager will work closely with the airplane manufacturer’s support team particularly during the initial period of
aircraft operation. Representatives are in frequent contact with the IAE offices on technical matters. Information and guidance received from the home office is transmitted promptly to the airline which allows the airline to share in all related
industry experience. 
 The practice permits immediate use of the most effective procedures and avoidance of unsuccessful techniques. The IAE
office contact ensures that IAE Representatives know, in detail, the latest and most effective engine maintenance procedures and equipment being used for maintenance and overhaul of V2500 engines. They offer technical information and recommendations
to airline personnel on all aspects of maintenance, repair, assembly, balancing, testing, and spare parts support of IAE. 

  
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 ON-THE-JOB TRAINING 
 Customer Support Representatives will conduct on-the-job training for the airline’s maintenance personnel. This training continues until the maintenance personnel have achieved the necessary level of
proficiency. Training of new maintenance personnel will be conducted on a continuing basis. 
 SERVICE POLICY ADMINISTRATION 

Customer Support Representatives will provide administrative and technical assistance in the application of the IAE Engine and Parts Service Policy to
ensure expeditious and accurate processing of airline customer claims. 
 CUSTOMER TRAINING 

IAE Customer Training offers airline customers the following support: 
  

	 	•	 	 Technical Training at Purpose Built Facilities 

  

	 	•	 	 On-site Technical Training 

  

	 	•	 	 Technical Training Consulting Service 

  

	 	•	 	 Training Aids and Materials 

TRAINING PROGRAM 
 The IAE Customer Training
Center has an experienced full-time training staff which conducts formal training programs in English for airline customers’ maintenance, training and engineering personnel. The standard training programs are designed to prepare customer
personnel, prior to the delivery of the first aircraft, to operate and maintain the installed engines. Standard courses in engine operation, line maintenance, modular maintenance, performance and trouble-shooting are also available throughout the
production life of the engine. The courses utilize the latest teaching technology, training aids and student handouts. IAE Customer Support will coordinate the scheduling of specific courses as required. Training at the Customer Training Center is
provided to a limit of 50 mandays per Aircraft firmly ordered. This amount can be reviewed periodically to determine if additional no charge training is required. The following is the curriculum of standard courses available. On-site technical
training, technical training consulting services and customized courses may be provided upon customer request and subject to separate contractual arrangements or possibly at no cost on a case-by-case basis taking into consideration regional
requirements and other factors. 
 General V2500 Familiarization 
 This two day course is designed for experienced gas turbine personnel who will be responsible for planning, provisioning and maintenance of the V2500 engine. This course is also designed to appropriately
familiarize key staff, supervisory and operations planning personnel and flight crews. Discussions are concentrated in the following subject areas: 
  

	 	•	 	 Engine construction features internal and external hardware. 

 

	 	•	 	 Engine systems operation, major components accessibility for removal/replacement. 

  
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	 	•	 	 Operational procedures 

  

	 	•	 	 Performance characteristics 

  

	 	•	 	 Maintenance concepts, repair and replacement requirements and special tooling. 

The course is normally conducted in preparation for fleet introductory discussions in the provisioning of spares and tooling, training and line
maintenance areas to acquaint the customer with the engine, its systems, operations and procedures. 
 Line Maintenance and Troubleshooting

 This course is designed for key line maintenance and troubleshooting personnel who have not received previous formal training on the V2500
engine. The classroom phases provide the student with the information essential for timely completion of line maintenance activities and the procedures for effective troubleshooting and correction of malfunctions in the V2500 engine systems and the
engine/airframe interfaces. Classroom and shop training are provided for in the following areas: 
  

	 	•	 	 Engine Description 

  

	 	•	 	 Systems Operation 

  

	 	•	 	 Applied Performance 

  

	 	•	 	 Ground Operations 

  

	 	•	 	 Troubleshooting Procedures 

  

	 	•	 	 Practical Phase Line Maintenance Tasks 

  
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 V2500 Familiarization and Modular Maintenance 

Provides experienced heavy maintenance personnel with engine modular disassembly and assembly training. The training is concentrated in the following
subject areas: 
  

	 	•	 	 Engine Description Overview 

  

	 	•	 	 Engine Systems Overview 

  

	 	•	 	 Heavy Maintenance Tasks * 

  *     Course duration and “hands-on” coverage are contingent on the availability of an engine and required
tooling. 
 ENGINE MAINTENANCE MANAGEMENT PLANS 
 Planning documents, tailored for individual operators, are developed to serve as Engine Maintenance Management Program criteria. These are directed toward the objective of ensuring cost-effective
operation with acceptable post-repair test performance, providing engine reliability to achieve maximum time between shop visits, and minimizing the adverse effects to operation of inflight shutdowns and delays/cancellations. Through the institution
of specific maintenance recommendations, proper engine performance, durability, and hot section parts lives can be achieved. 
 OPERATIONS
MONITORING 
 The following information is available to the airline customer from the IAE Product Information Process (IP) 2 Group:

 OPERATION EXPERIENCE REPORTS 
 IAE
maintains V2500 Service Data System (SDS) data base from which selected engine operations and reliability summary reports will be developed and made available on a scheduled basis to each airline customer. Data reported by IAE Customer Support
Representatives serve as input to this data base. This computerized data maintenance and retrieval system will permit: 
  

	 	•	 	 A pooling and exchange of service experience for the benefit of the entire airline industry. 

 

	 	•	 	 A common statistical base. 

  

	 	•	 	 The selective querying of computer data files for answers to customer inquiries. 

In addition to providing operations and reliability reports, SDS serves in-house programs directed at improving engine design and enhancing overall
customer support, including spare parts provisioning and warranty administration. 

  
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 SPECIAL PROGRAMS 
 ENGINE HARDWARE RETROFIT PROGRAMS 
 Engine Retrofits are carried out to provide modification of
engine hardware configuration when required on delivered engines. This involves assisting in the marshaling of hardware, special tools, manpower and the scheduling of engine and material to modification sites. 

CONTROLLED SERVICE USE PROGRAMS AND MATERIAL SUPPORT 
 IAE shall assume responsibility for the planning, sourcing, scheduling and delivery of Controlled Service Use material, warranty replacement material, service campaign, material and program support
material subject to the terms of special contracts with customers. 
 Urgent customer shipments, both inbound and outbound, are monitored,
traced, routed and expedited as required. The receipt and movement of customer owned material returned to IAE is carefully controlled, thus assuring an accurate accounting at all times. 
 III. BUSINESS SUPPORT 
 The Business Support Group is dedicated to providing prompt and
accurate assistance to you, our V2500 airline customer. This Group provides the following categories of assistance and support to the V2500 airline customer: 
  

	 	•	 	 Engine Warranty Services 

  

	 	•	 	 Maintenance Support 

  

	 	•	 	 Lease Engine Program 

  

	 	•	 	 Engine Reliability and Economic Forecasts 

  

	 	•	 	 Logistic Support Studies 

ENGINE WARRANTY SERVICES 
 Engine
Warranty Services will provide the following support for the V2500 engine airline customer: 
  

	 	•	 	 Prompt administration of claims concerning Engine Warranty, Service Policy, other support programs and Guarantee Plans. 

 

	 	•	 	 Investigation of part condition and part failure. 

  

	 	•	 	 Material provisioning administration for Controlled Service Use programs and other material support. 

  
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 PROMPT ADMINISTRATION 
 Each airline customer is assigned a Warranty Analyst whose job is to provide individual attention and obtain prompt and effective settlements of Warranty and Service Policy claims. A typical claim
properly submitted is generally settled, including issuance of applicable credit memo, within thirty days. Experience generated by much of the data derived from such claims often enables IAE to monitor trends in operating experience and to address
and often eliminate potential problems. 
 INVESTIGATION AND REPORTS 
 Parts returned to IAE pursuant to the terms of the Service Policy are investigated in appropriate detail to analyze and evaluate part condition and cause of part failure. A report of findings is prepared
and forwarded to the airline customer and to all IAE departments involved. In the case of vendor parts, the vendor is promptly informed. Reports often include recommendations to preclude repetition of the problem. 

MAINTENANCE CENTER SUPPORT 
 IAE has
arranged for the establishment of Maintenance Centers which are available to accomplish repairs, modifications and conversions, as well as the complete overhaul of the V2500 engine subject to IAE’s standard terms and conditions for such work.

 Through the use of the IAE established Maintenance Centers and their capabilities, an operator can minimize or eliminate the need for
investment in engine support areas depending on the level of maintenance he elects the Maintenance Center to perform. Savings in specific engine support areas, such as spare parts inventory, maintenance and test tooling, support equipment and test
facilities, can be demonstrated. Use of Maintenance Centers can also minimize the need for off-wing maintenance and test personnel with their associated overhead. 
 MAINTENANCE FACILITIES PLANNING SERVICE 
 Maintenance Facilities Planning Service offers the
following support to IAE customer: 
  

	 	•	 	 General Maintenance Facility Planning Publications 

  

	 	•	 	 Customized Facility Plans 

  

	 	•	 	 Maintenance Facility and Test Cell Planning Consultation Services 

 Maintenance Facilities Planning Service provides general and customized facility planning data and consultation services. Facility Planning Manuals for the V2500 engine will present the maintenance tasks,
facility equipment and typical departments floor plans showing arrangement of equipment required to accomplish the tasks for all levels of maintenance. The Facility Equipment Manual is a catalog of standard facility equipment such as lathes, process
tanks, hoists, cranes, etc., which is suitable for use in the maintenance and testing of IAE engines. 
 Customized facility planning services
and consulting services are offered subject to separate contractual arrangements. Customized facility plans are developed to meet the requirements of customers’ specific fleet sizes, activities and growth plans. The plans identify floor space,
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equipment, utilities and manpower requirements. On-site surveys are conducted as a part of customized plan development to determine the adaptability of existing facilities and equipment for the
desired maintenance program. These plans provide floor plan layouts to show recommended locations for work stations, major equipment, marshaling and storage areas, workflow patterns, and structural and utility requirements to accommodate all the
engine models that are maintained in the customer’s shop. The Maintenance Facilities Planning Service also provides consultant services which are specifically related to the development of engine test cells, and the adaptation of existing
maintenance facilities to accommodate expanding production requirements and/or new or additional IAE models. 
 ENGINE RELIABILITY AND
ECONOMIC FORECASTS 
 Engine reliability and economic forecasts in the forms of predicted shop visit rates and maintenance costs will be
provided to reflect the airline customers’ operating characteristics. Additionally, various analyses will be conducted to establish life probability profiles of critical engine parts, and to determine optimum part configuration and engine
operating procedures. Both will be provided as requested by AAH on a reasonable basis. 
 LOGISTICS SUPPORT STUDIES 

As required, logistics studies are conducted to assist in the planning of engine operational support. Such studies may include spare engine and spare
module requirements forecasts, level of maintenance analyses, engine type economic evaluations and life cycle cost estimates. 
 LEASE ENGINE
PROGRAM 
 An engine lease program will be made available to V2500 Airline Customers subject to IAE’s standard terms and conditions of
lease. Pool spares will be stationed at selected locations to assure emergency protection against aircraft-on-ground (AOG) situations or to provide supplemental support during “zero spares” conditions. The lease engines will incorporate
the highest maintenance standards and configuration levels. Availability will be subject to prior demand, however, the program logistics will be continually reviewed to assure the most effective deployment of available pool engines. 

  
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 IV. TECHNICAL SERVICES 
 The Technical Services Group provides the following categories of technical support to the airline customer: 
  

	 	•	 	 Technical Services 

  

	 	•	 	 Powerplant Maintenance 

  

	 	•	 	 Customer Performance 

  

	 	•	 	 Diagnostic Systems 

  

	 	•	 	 Human Factors 

  

	 	•	 	 Flight Operations 

  

	 	•	 	 Repair Services 

  

	 	•	 	 Tooling and Support Equipment Services 

  

	 	•	 	 Technical Publications 

TECHNICAL SERVICES 
 Technical Services
is responsible for the overall technical support to the customers. The following services are provided: 
  

	 	•	 	 Technical Problem Identification/Corrective Action Implementation 

 

	 	•	 	 Technical Communication 

  

	 	•	 	 Engine conversion Program Definition and Management 

  

	 	•	 	 Engine Upgrade and Commonality Studies 

  

	 	•	 	 Engine Incident Investigation Assistance 

 TECHNICAL SERVICES 
 Technical information supplied through IAE Customer Support Representatives,
Customer Support Managers, customer correspondence and direct meetings with airlines’ representatives permits assessment of the factors involved in technical problems and their impact on engine reliability and operating costs. Resolution of
these problems is coordinated with responsible groups within IAE and the necessary corrective action is defined. In certain situations the corrective action involves the establishment of Service Evaluation programs for proposed modifications, and
the establishment of warranty assistance programs in conjunction with the IAE Warranty Administration Group. Technical Services will assist customers in the implementation of recommended corrective action and improvements principally through
official IAE technical communications, and direct customer contact. 
 TECHNICAL COMMUNICATIONS 

Technical Services is responsible for the release of technical communications. Primary communication modes involves release of limits and procedures
through engine and maintenance manual revisions and the requirements associated with engine upgrade and/or conversion, durability and performance improvements, and problem resolution through Service Bulletins is provided by All Operator Letters
and/or wires or direct technical written response to individual customer inquiries. 

  
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 ENGINE CONVERSION PROGRAMS 
 Technical Services defines minimum configuration levels for conversion of service engine models. They serve to assist the customer with the implementation of conversion programs into existing fleets by
providing preliminary planning cost estimates and technical planning information regarding tooling, material and instructional requirements. Conversion programs are monitored for problem areas and Technical Services initiates and implements
corrective action as may be necessary. 
 ENGINE INCIDENT INVESTIGATION ASSISTANCE 
 Assistance is provided to an airline in conducting engine incident investigations in responding to the requirements of the appropriate Air Worthiness authority. 

LINE MAINTENANCE AND TROUBLESHOOTING 
 Line
Maintenance and Troubleshooting Seminars can be conducted at the IAE Training Center with the objective of improving line maintenance effectiveness fleetwide. Specialized training on V2500 line maintenance and troubleshooting can be provided through
on-site workshops by special contractual arrangement or can be part of the Training Programs described above in the CUSTOMER TRAINING section. 

Troubleshooting support is provided primarily through powerplant troubleshooting procedures which are published in IAE and airframe manufacturers
manuals. When an airline encounters an engine problem and corrective action taken has not been effective, more direct support in troubleshooting and maintenance can also be provided to the customers line maintenance personnel. Instructions on V2500
powerplant troubleshooting and maintenance can also be provided to customers line maintenance personnel. 
 AIRLINE SHOP MAINTENANCE 

Reviews of shop practices and procedures of individual airlines can be conducted to determine the most efficient and cost-effective methods for
maintenance and repair of the V2500 in the environment in which the airline must maintain that engine. 

  
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 POWERPLANT MAINTENANCE 
 Powerplant Maintenance covers responsibility for maximizing engine maintainability, establishing maintenance concepts and requirements and providing maintenance support plant for IAE. This group provided
the following services: 
  

	 	•	 	 Definition of Maintenance Tasks and Resource Requirements 

 

	 	•	 	 Planning Guides 

Powerplant Maintenance conducts design reviews and comprehensive maintenance analysis of new engine designs and engine design changes to maximize engine
maintainability consistent with performance, reliability, durability and life cycle cost considerations. Maintenance concepts, requirements and tasks are established to minimize maintenance costs. This group represents the customer’s
maintainability interests in internal IAE operations and upon request will assist the customer in resolving specific maintenance task problems. 

PROGRESSIVE MAINTENANCE PLANNING 
 Powerplant
Maintenance also provides Planning Guides based upon Maintenance Task Analysis. The guides present engine maintenance requirements, their subordinate tasks and the required resources to accomplish on-aircraft engine maintenance and the off-aircraft
repair of engines by modular section/build group replacement. Maintenance requirements are also presented for the refurbishment of modular section/build group by parts replacement, the complete repair of parts, the refurbishment of accessory
components and for engine testing. The data in the Planning Guides is presented in a manner that is primarily intended to assist new operators by providing a phased introduction of new engines into their shops and to capitalize on the design
maintainability features for the engine when they are developing their maintenance plans. 
 Powerplant Maintenance Engineering will assist new
operators in planning a gradual, technically feasible, and economically acceptable expansion from line maintenance of installed engines through the complete repair of parts and accessory components. 

CUSTOMER PERFORMANCE 
 Customer
Performance provides for the following types of technical assistance to the airline customer: 
  

	 	•	 	 Engine Performance Analysis Computer Programs for Test Cell Use 

 

	 	•	 	 Test Cell Correlation Analysis and Correction Factors 

 

	 	•	 	 Engine Stability Procedures and Problem Analysis 

 Although much of the above support is provided in the form of procedures, data and recommendations in various publications, the group also answers inquiries of a performance nature which are forwarded to
IAE by individual customers. 

  
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 ENGINE PERFORMANCE ANALYSIS 
 Technical support is provided in a number of areas related to operational suitability including the development of the test requirements and performance limits for the Adjustment and Test Section of the
Engine Manual. Computer programs that will assist the operator in analyzing engine performance using test cell data can be provided subject to IAE then current standard license fees and Terms and Conditions. 

TEST CELL CORRELATION 
 Technical assistance is
provided to the customer for developing appropriate corrections to be used for specific test configurations at customer owned test cell facilities. Reports are provided presenting correlation analyses and IAE recommended test cell corrections which
permit comparison of the performance of customer tested engines with the respective Engine Manual limits and guarantee plan requirements. 

ENGINE STABILITY 
 Technical support is provided
to ensure that engine stability and starting reliability are maintained. Service evaluation programs for proposed improvements are initiated and monitored to determine their effectiveness. In addition, problems relating to engine control systems
which impact engine stability and performance are analyzed. 
 DIAGNOSTIC SYSTEMS 

Diagnostic Systems is responsible for the technical support of customer acquisition of inflight engine data and the assessment of engine performance
through the use of that data. Diagnostic Systems personnel provide the following services: 
  

	 	•	 	 Guidance to help customers define their engine monitoring system requirements. 

 

	 	•	 	 Development of hardware specifications and computer programs (by separate contractual arrangement) to satisfy engine diagnostic requirements.

  

	 	•	 	 Coordination of all IAE airborne diagnostic support activity. 

 GUIDANCE IN DEFINING ENGINE MONITORING SYSTEMS REQUIREMENTS 
 Diagnostic Systems can provide
consultation services to assist the customer in defining his engine condition and performance monitoring requirements and in selection of appropriate hardware and software systems to meet those requirements and options between the customer, airframe
manufacturer, and Airborne Integrated Data System (AIDS) manufacturer. 
 DEVELOPMENT AND COORDINATION 

Diagnostic Systems personnel can develop hardware specification and make computer software available to accomplish Engine Condition Monitoring (ECM) and
performance analysis of engine modules using AIDS data. Engine condition monitoring procedures, of both the manual and computerized variety can also be developed and provided in support of the customer’s selected method of engine condition
monitoring. Computer software will be provided to the customer subject to IAE’s then current standard license fees and Terms and Conditions. 

  
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 Diagnostic Systems personnel also coordinate activities of cognizant functional groups at IAE to provide
engine related information to the customer, airframe manufacturer, and AIDS equipment vendor during the planning, installation, and operation of AIDS. 
 HUMAN FACTORS 
 Human Factors supplies data on task time and skill requirements necessary
for accomplishing maintenance procedures. 
 Task data provided includes estimates of the man-hours, elapsed time and job skills necessary to
accomplish maintenance tasks as described in IAE’s Manual and Service Bulletins. Data is supplied for “on” and “off” aircraft maintenance tasks up to modular disassembly/assembly. Additional selected task data can be
supplied on disassembly/assembly to the piece part level and on parts repair. In addition, the group can help solve problems related to skill requirements, body dimensions, or excessive man-hours encountered in accomplishing maintenance tasks.

 FLIGHT OPERATIONS 
 Flight
Operations provides the airline customer with the following technical assistance concerning installed engine operations: 
  

	 	•	 	 Introduction of new equipment 

  

	 	•	 	 Problem resolution and assistance with in-service equipment 

 

	 	•	 	 Contractual commitment and development program support 

 

	 	•	 	 Publication of engine operations literature and performance aids 

 NEW EQUIPMENT 
 In accordance with customer needs, Flight Operations can provide on-site assistance
in the training of operations personnel and help in solving engine operational problems that might arise during the initial commercial service period. Such assistance can include participation in initial delivery flights, engine operational reviews,
and flight crew training activity. 
 PROBLEM RESOLUTION - IN-SERVICE EQUIPMENT 
 In accordance with a mutually agreed upon plan, Flight Operations can perform cockpit observations to identify or resolve engine operating problems and to assess installed engine performance. 

CONTRACTUAL SUPPORT AND DEVELOPMENT PROGRAMS 

As required, Flight Operations can assist in evaluating installed engine performance relative to contractual commitments and engine improvements which
have an impact on engine operations. 

  
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 PUBLICATION SUPPORT 
 Flight Operations is responsible for the issuance of Engine Operating Instructions and correspondence pertaining to inflight engine operations. Such material is coordinated with the airframe manufacturers
as required. Special Presentations and Reports are also issued, as required, to support the activity described above. 
 REPAIR SERVICES

 Repair Services provides the following support to the airline customers: 

 

	 	•	 	 Coordinated Repair Development Activity 

  

	 	•	 	 Customer Assistance on Repair Procedures and Techniques 

 

	 	•	 	 Qualification of Repair Sources 

  

	 	•	 	 Repair Workshops 

  

	 	•	 	 Repair Development List 

COORDINATION OF REPAIR DEVELOPMENT 
 Repair
Services provide direct contact with all sources that initiate repair schemes. The Group coordinates with representatives of Engineering and Support Services disciplines in identifying repair needs, evaluating various repair options and establishing
repair development procedures and schedules. The Group participates in setting repair evaluation and approval requirements. When the repair is approved and substantiating data is documented, Repair Services releases the repair to the Engine Manual.

  
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 TECHNICAL ASSISTANCE 
 Repair Services provides daily communications with airline customers via technical responses to inquiries direct from the airline or through our Customer Support Representative office at the airline
facility. In addition, Repair Services make periodic visits to airline repair facilities to discuss new repairs under development, answer specific questions posed by the particular facility and review actual parts awaiting a repair/scrap decision.
Occasionally, Repair Services make special visits to customer facilities to assist in training customer personnel in accomplishing particularly complex repairs. 
 QUALIFICATION OF REPAIR SOURCES 
 Repair Services coordinates the qualification of repair sources
for repairs proprietary to IAE or to an outside repair agency. They also perform a review of the qualifications of repair sources for critical, nonproprietary repairs for which a source demonstration is deemed necessary. The group participates in
negotiation of the legal and business agreements associated with these qualification programs. 
 TOOLING AND SUPPORT EQUIPMENT SERVICES

 The Tooling and Support Equipment Services Group assists the customer by providing the following services: 

 

	 	•	 	 Support Equipment Manufacturing/Procurement Documentation 

 

	 	•	 	 Engine Accessory Test Equipment and Engine Transportation Equipment Specifications 

 

	 	•	 	 Support Equipment Logistics Planning Assistance 

 SUPPORT EQUIPMENT DOCUMENTATION 
 The tooling and Support Equipment Services Group designs the
special support equipment required to disassemble, assemble, inspect, repair and test IAE engines. Special support equipment design drawings and Support Equipment Master Data Sheets, which describe how to use the support equipment, are supplied to
customers in the form of 35mm aperture cards. Support equipment designs are kept current with engine growth, and tool Bulletins are issued to customers as part of continuing configuration management service. Updated Design and Master Data Sheets
Aperture Cards and Tool Bulletins are periodically distributed to all IAE customers. 

  
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 ENGINE ACCESSORY TEST EQUIPMENT AND ENGINE TRANSPORTATION EQUIPMENT REQUIREMENTS 

Engine accessory test equipment and engine transportation equipment general requirements and specifications are defined and made available to IAE
customers. If requested, the Tooling and Support Equipment Group will assist customers in the definition of engine accessory test and engine transportation equipment required for specific IAE needs. 

SUPPORT EQUIPMENT LOGISTICS PLANNING ASSISTANCE 

The Tooling and Support Equipment Group will provide, at the customer’s request, special support equipment lists which reflect the customer’s
unique requirements such as mix of engine models and desired level of maintenance to aid in support equipment requirements planning. 

TECHNICAL PUBLICATIONS 
 IAE and its
subcontractors produce publications and maintenance information as described below to support the maintenance and modification requirements of the airline customer. The publications are prepared in general accordance with Air Transport Association
of America (ATA) Specification No. 100. The necessary quantities of manuals and media options will be available subject to IAE’s current terms and conditions. 
 ON-WING MAINTENANCE DATA 
 IAE supplies the airplane manufacturer with all the necessary
information required to perform “On-Aircraft” engine maintenance, troubleshooting, and servicing. This information is developed through close coordination between the airplane manufacturer and IAE and is integrated by the airplane
manufacturer into his maintenance publications. 
 TECHNICAL PUBLICATIONS 
 Listed and described below are the publications that will be made available to support the airline customer’s maintenance program: 
 Engine Manual 
 The Engine Manual is a document which will be structured in accordance with
ATA 100 section 2-13-0 with JEMTOSS applied in accordance with section 2-13-14. Potential customer applications will be applied. The manual will provide in one place the technical data requirements for information needed to maintain the engine and
the maximum potential number of parts that could, regardless of design responsibility, remain with the engine when it is removed from the airplane. Additionally the manual includes coverage of interrelated parts (e.g. thrust reverser, cowlings,
mounts, etc.) that can stay with the airplane when the engine is removed or can be removed for maintenance purpose in lieu of individual component maintenance manuals. Customized Engine Manuals can be prepared to incorporate customer originated
material related to data or procedures originated by or peculiar to a specific IAE customer. Such customized Manuals are provided by separate contractual arrangements. Customer material authorized by the appropriate Airworthiness Authorities can be
incorporated into customized Manuals and will be identified in the margin by the customer’s initials. 

  
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 Standard Practices Manual 
 The Standard Practices Manual supplements the Engine Manual by providing, in a single document, all IAE recommended or approved general procedures covering general torques, riveting, lockwiring, cleaning
policy, inspection policy standard repairs, etc., and marking of parts. 
 Illustrated Parts Catalog 

The Illustrated Parts Catalog will be structured in accordance with ATA 2-14-0 and is a document which is used in conjunction with the Engine Manual for
the identification and requisitioning of parts and assemblies. Its ATA structure is to be compatible with the Engine Manual Structure. Additionally the manual includes coverage of interrelated parts (e.g. thrust reverser, cowlings, mounts, etc.)
that can stay with the airplane when the engine is removed or can be removed for maintenance purpose in lieu of individual component maintenance manuals. 
 IAE Proprietary Component Maintenance Manuals 
 These manuals will be structured in
accordance with ATA 2-5-0 and will cover data for chapters other than 71, 72, and 78. 
 Subcontractor Component Maintenance Manuals

 These manuals will be structured in accordance with ATA 2-5-0 and are prepared directly by the accessory manufacturers. All accessory data
is subject to IAE prepublication review and approval. 
 Engine and Accessory Component service Bulletins 

Each Engine and Accessory Component Service Bulletin will be produced in accordance with ATA 2-7-0. They will cover planning information, engine or
component effectivity, reason for Bulletin, recommended compliance, manpower requirements, and tooling information relating to parts repair or modification. Subcontractor prepared Accessory Component Service Bulletins are reviewed by IAE prior to
issuance. Alert Service Bulletins will be issued on all matters requiring the urgent attention of the airline customer and will generally be limited to items affecting safety. The Bulletin will contain all the necessary information to accomplish the
required action. 

  
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 Operating Instructions 
 Engine operating instructions are presented in the form of General Operating Instructions supplemented by V2500 Specific Engine Operating Instructions which provide operating information, procedures,
operating curves and engine limits. 
 Facilities Planning and Facility Equipment Manuals 

The Facilities Planning Manual outlines the requirements for engine/component overhaul, maintenance, and test facilities in terms of basic operations,
processes, time studies and equipment. The Facility Equipment Manual lists and describes the facility equipment used for engine maintenance, overhaul and repair. 
 Support Equipment Numerical Index 
 The Indexes, prepared for each major engine model,
provide a listing, in numeric sequence, by maintenance level, of all IAE ground support equipment required to maintain and overhaul the engine. The Listings are cross-indexed to the applicable engine dash model and to the chapter and section of the
Engine Manual. 
 Publications Index 
 This index contains a listing of available technical manuals covering components of the V2500 Nacelle. 
 Service Bulletin Index 
 This index will be in a format and on a revision schedule as
determined by IAE. 
 Computer Software Manual 
 Data, will be supplied in accordance with ATA 102 revision 2 except where such data are prohibited due to proprietary or Government restrictions. 
 Vital Statistics Logbook 
 The VSL provides the following information for each production
engine, in an electronic readable format and/or as hard copy printout: 
  

	 	•	 	 Identification of major engine and nacelle components by part number, serial number and ATA - location. 

 

	 	•	 	 Engine Test Acceptance Certificate. 

  

	 	•	 	 List of all incorporated serialized parts by part number, serial number and ATA - Location. This list also includes an Industry Item List to identify
specific parts by part number, serial number and ATA - Location which the airline customer may choose to monitor during the engine operational life. The parts listed represent approximately 80% of engine total value. 

 

	 	•	 	 List of all incorporated life limited parts by part number, serial number and ATA - location. 

  
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	 	•	 	 List of all Service Bulletins that were incorporated during initial build of each new engine. 

 

	 	•	 	 List of all Service Bulletins that were not incorporated. 

 

	 	•	 	 List of all saleable pick level engine parts, identifying those parts for which Service Bulletins and service instructions have been issued.

 REVISION SERVICES 

Regular, temporary, and “as required” revisions to technical publications will be made during the service life of IAE equipment. The utilization
of advanced techniques and equipment provides the airline customer with expedited revision service. 
 DISTRIBUTION MEDIA OPTIONS 

The primary medium for available IAE technical publications is roll microfilm at 24:1 reduction or magnetic tape. Media options such as microfilm at 36:1
reduction, microfiche, and two side or one-sided paper copy of reproducible quality will be available for procurement at established prices. 

V. SPARE PARTS 
 SPARE PARTS SUPPORT

 The Spare Parts Group provides the following categories of spare parts support to airline customers: 

 

	 	•	 	 Individual Customer Account Representatives 

  

	 	•	 	 Provisioning 

  

	 	•	 	 Planning 

  

	 	•	 	 Order Administration 

  

	 	•	 	 Spare Parts Inventory 

  

	 	•	 	 Effective Expedite Service 

  

	 	•	 	 Worldwide Distribution 

  
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 ACCOUNT REPRESENTATIVE 
 An Account Representative is assigned to each customer using IAE equipment. This representative provides individualized attention for effective spare parts order administration, and is the customer’s
interface on all matters pertaining to new part planning and procurement. Each representative is responsible for monitoring each assigned customer’s requirements and providing effective administrative support. The Account Representatives are
thoroughly familiar with each customer’s spare parts ordering policies and procedures and are responsible for ensuring that all customer new parts orders are processed in an effective manner. 

SPARE PARTS PROVISIONING PLANNING 
 Prior to
delivery of the first new aircraft to an airline customer, preplanning discussions will be held to determine the aircraft/engine program, and engine spare parts provisioning and order plans. Mutually agreed upon provisioning target dates are then
established and on-time completion tracked by the Customer Account Representative with the assistance of logistics specialists in Spare Parts Provisioning and Inventory Management. Meetings are held with airline customers at a mutually agreeable
time to review suggested spare parts provisioning lists prepared by spare parts Provisioning. These lists are designed to support each customer’s particular fleet size, route structure and maintenance and overhaul program. 

ORDER ADMINISTRATION 
 IAE subscribes to the
general principles of Air Transport Association of America (ATA) Specification No. 200, Integrated Data Processing - Supply. The procedures of Air Transport Association of America (ATA) Specification No. 200 may be used for Initial
Provisioning, (Chapter II) Order Administration (either Chapter III or Chapter VI) Invoicing (Chapter IV). 
 A spare parts supply objective is
to maintain a 90 percent on-time shipment performance record to our published lead times. The lead time for replenishment spare parts is identified in the IAE spare Parts Price Catalog. Initial provisioning spare parts orders should be placed at
least six months prior to required delivery, while conversions and major modifications require full manufacturing lead times. 
 The action to
be taken on emergency requests will be answered as follows: 
  

	 	•	 	 Aircraft-On-Ground (AOG) - within four hours (in these instances every effort is made to ship immediately). 

 

	 	•	 	 Critical (Imminent Aircraft-On-Ground (AOG) or Work Stoppage) — Within 24 hours. 

 

	 	•	 	 Stock Outage — Within seven working days (these items are shipped as per customer request). 

SPARE PARTS INVENTORY 
 To ensure availability
of spare parts in accordance with published lead time, spare parts provisioning maintains a modern, comprehensive requirements planning and inventory management system which is responsive to changes in customer demand, special support programs and
engineering design. Organized on an engine model basis, this system is intended to maintain part availability for delivery to customers consistent with published lead times. 

  
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 A majority of parts in the spare parts inventory are continually controlled by an Automatic Forecasting and
Ordering System. Those parts which do not lend themselves to automatic control due to supercedure, unusual usage or conversion requirements are under the direct manual control of Spares Planning personnel. As additional protection against changes in
production lead time or unpredicted demand, certain raw materials are also inventoried. Successful inventory management is keyed to accurate requirements planning. In support of the requirements planning effort, a wide ranging data retrieval and
analysis program is offered. This program concerns itself both with the customer logistics and technical considerations as follows: 
  

	 	•	 	 Forecasts of life limited parts requirements are requested and received semi-annually from major customers. 

 

	 	•	 	 Engine technical conferences are held frequently within IAE to assess the impact of technical problems on parts. 

 

	 	•	 	 For a selected group of parts a provisioning conference system is offered which considers actual part inventory change, including usage and receipts,
as reported monthly by participating customers. 

 PACKAGING 
 All material is packaged in general compliance with Air Transport Association of America (ATA) Specification No. 300. 
 WORLD AIRLINE SUPPLIERS’ GUIDE 
 IAE subscribes to the supply objectives set forth in the
World Airlines Supplier’s Guide published by the Air Transport Association of America (ATA). 
 IAE requires that its proprietary component
vendors also perform in compliance with the precepts of the World Airline Suppliers’ Guide. 

  
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 EXHIBIT D 
 WARRANTIES, GUARANTEES AND PLANS 

  
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 EXHIBIT D-1 
 V2500 ENGINE AND PARTS SERVICE POLICY 

  
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 IAE 
 INTERNATIONAL AERO ENGINES AG 
 V2500 ENGINE AND PARTS SERVICE POLICY 

Issued: October 25, l985 
 Revised: June,
1996 

  
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 IAE 
 INTERNATIONAL AERO ENGINES AG 
 V2500 ENGINE AND PARTS SERVICE POLICY 

This Engine and Parts Service Policy (“Service Policy”) is a statement of the terms and conditions under which IAE International Aero Engines
AG (“IAE”) will grant the Operators of new V2500 Engines certain Allowances and adjustments in the event that Parts of such Engines suffer Failure in Commercial Aviation Use, or in the event that a Parts Life Limit is established or
reduced. This Service Policy becomes effective for the Operator’s first new V2500 Engine. 
 This Service Policy is divided into seven
sections: 
  

					
	Section I	  	describes the Credit Allowances which will be granted should the Engine suffer a Failure.	  	Page 1
			
	Section II	  	describes the Credit Allowances which will be granted should a Primary Part Suffer a Failure.	  	Page 4
			
	Section III	  	lists the Class Life for those Primary Parts for which Credit Allowances will be granted.	  	Page 5
			
	Section IV	  	describes the Credit Allowances which will be granted when the establishment or reduction of a Parts Life Limit is mandated.	  	Page 7
			
	Section V	  	describes the Credit Allowances and adjustments which will be granted when IAE declares a Campaign Change.	  	Page 9
			
	Section VI	  	contains the definitions of certain words and terms used throughout this Service Policy. These words and terms are identified in the text of this Service Policy by the use of
initial capital letters for such words and terms.	  	Page 12
			
	Section VII	  	contains the general conditions governing the application of this Service Policy.	  	Page 18

  
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	*	[Twenty-one pages have been omitted in accordance with a request for confidential treatment] 

  
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 EXHIBIT D-2 
 V2500 NACELLE AND PARTS SERVICE POLICY 

  
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	*	[Nine pages have been omitted in accordance with a request for confidential treatment.] 

 1988 

  
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 EXHIBIT D-3 
 NON-INSTALLATION ITEMS WARRANTY 

  
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 EXHIBIT D-3 
 WARRANTY FOR SPECIAL TOOLS AND GROUND EQUIPMENT 
 [*] 

  
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 EXHIBIT D-4 
 V2500 RELIABILITY GUARANTEE 

  
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 V2500 RELIABILITY GUARANTEE 

 

	I	INTRODUCTION 

 IAE assures AAH
that by the end of the [*] period commencing with AAH’s first commercial operation of Aircraft powered by V2500 Engines, the cumulative Engine Shop Visit Rate will not exceed a Guaranteed Rate of [*] Eligible Engine flight hours. Under this
Guarantee, if the cumulative Engine Shop Visit Rate exceeds the Guaranteed Rate, IAE will credit AAH’s account with IAE an amount of [*] U.S. Dollars for each Eligible Engine Shop Visit determined to have been in excess of the Guaranteed Rate.

  

	II	GUARANTEE 

  

	 	A.	Period of Guarantee 

 The
Period of Guarantee will start on the date AAH initiates commercial operation of its first Aircraft powered by Eligible Engines and will terminate [*] from that date. 
  

	 	B.	Eligible Engines 

 The
Engines that will be Eligible under this Guarantee shall be installed and Spare Engines which are owned or operated by AAH during the Period of Guarantee and which have been acquired new pursuant to the Contract to which this Guarantee is attached
or that certain Purchase Agreement dated 19 March 1998 between AAH and the Aircraft Manufacturer for delivery of Aircraft (the “Aircraft Purchase Agreement”). The Engines shall remain Eligible provided that AAH or its authorized
maintenance facility maintains them in accordance with the IAE instructions and recommendations contained in the applicable IAE publications including the latest V2500 Maintenance Management Plan for AAH. 

 

	 	C.	Eligible Shop Visits 

Eligible Shop Visits shall comprise the shop visits of Eligible Engines required for the following reasons: 

 

	 	1.	a Failure of a Part in such Eligible Engines; 

  

	 	2.	foreign object damage caused by the ingestion of birds, hailstones or runway gravel; 

 

	 	3.	an Airworthiness Directive issued by the applicable Certification Authority; and 

 

	 	4.	maintenance as recommended by IAE. 

  

  
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	 	D.	Reporting of Engine Shop Visits and Engine Flight Hours 

 Eligible Shop Visits shall be reported to IAE by AAH within [*] after the date of such Engine Shop Visit using IAE Form SVR Rev 1. July 95 (or in a substantially similar format) together with such
other information as may be needed to determine the Eligibility of the Engine Shop Visit. Each such Form shall be verified by an authorized IAE Representative before submission. Should it be necessary for him to disqualify a reported Engine Shop
Visit, supporting information will be furnished. 
 Flight hours accumulated by Eligible Engines during each month during the
Period of Guarantee shall be reported by AAH within [*] after each month’s end to IAE on IAE Form SVR Rev 1. July 95 unless other procedures are established for the reporting of flight hours. 

 

	 	E.	Credit Allowance Calculation 

 A credit of [*] will be granted by IAE for each Eligible Engine Shop Visit determined as calculated below to be in excess of the Guaranteed Rate during the Period of Guarantee. An annual calculation will
be made no later than [*] after each yearly anniversary of the commencement of the Period of Guarantee provided that the necessary Engine Shop Visit records and Eligible Engine flight hour information have been reported to IAE. 

Each annual calculation will be made using data that will be cumulative from the start of the Period of Guarantee. An interim credit will
be granted, if necessary, following the annual calculations for the second year and each subsequent year of the Period of Guarantee. If subsequent annual calculations show that on a cumulative basis, a previous interim credit (or portion thereof)
was excessive, such excess amount shall be subject to repayment which will be effected by IAE issuing a debit against AAH’s account with IAE. Credits and debits will be applied to AAH’s account with IAE not later than thirty (30) days
following a calculation for the second year and each subsequent year of the Period of Guarantee, as applicable. 
 Credit
Allowance = (AR - GR) x [*] 
 where: 
  

			
	AR     =	  	Total Eligible Engine Shop Visits during the period of the
calculation.
	
	 GR     = [*] x total Engine flight hours accumulated on Eligible

Engines during the period of the calculation.

		
	(NOTE:	  	GR will be rounded to the nearest whole number.)

  
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	III	DEFINITIONS AND GENERAL CONDITIONS 

 All of the Definitions and General Conditions of the V2500 Engine and Parts Service Policy shall apply to this Guarantee. Engines and Engine Shop Visits excluded by the General Conditions of the Policy
shall be excluded from this Guarantee except that Engine Shop Visits resulting from ingestion of birds, hailstones or runway gravel shall be included as Eligible under this Guarantee. 

 

	IV	SPECIFIC CONDITIONS 

  

	 	A.	The Guaranteed Rate is predicated on the use by AAH of: 

 [*] 
  

	 	B.	IAE and AAH acknowledge that, as of the date of this Contract, the current operations of the Grupo TACA Airlines do not give rise to a material variation in the
Specific Conditions upon which the Guaranteed Rate is predicated. However, IAE reserves the right to make appropriate adjustments to the Guarantee Rate if there is, during the Period of Guarantee, a variation from the conditions upon which the
Guaranteed Rate is predicated which results in a material change to IAE’s risk. In addition, the Guaranteed Rate shall no longer apply to any Engine that is no longer owned by AAH or operated by a Grupo Taca Airline. The methodology to be used
in such case will be similar in all material respects to the methodology used in determining the original Guaranteed Rate [*], will be that generally used by IAE for other operators, and shall not adversely impact nor improve IAE’s risk
position from that which was undertaken by IAE with the original Guaranteed Rate. 

  

	 	C.	In the event credits are issued under Section II, such credits will first to the extent reasonably required be dedicated to the procurement of Parts identified within a
reasonable time aimed at correction of the situations contributing to excess Engine Shop Visits. Accordingly, AAH and IAE will establish jointly the modifications or Parts to be selected, and AAH will incorporate the changes into Eligible Engines.
Otherwise, such credits may be used to procure Supplies or services from IAE. 

  

	V	EXCLUSION OF BENEFITS 

 The
intent of this Guarantee is to provide specified benefits to AAH as a result of the failure of Eligible Engines to achieve the reliability level stipulated in the Guarantee. It is not the intent, however, to duplicate benefits provided to AAH from
IAE or any third-party. Therefore, the terms and conditions of this Guarantee notwithstanding, if the terms of this Guarantee should make duplicate benefits available to AAH from any third-party, AAH may receive the benefits under this Guarantee or
under any of the other benefits described above, but not both. 

  
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 EXHIBIT D-5 
 V2500 DELAY AND CANCELLATION GUARANTEE 

  
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 V2500 DELAY AND CANCELLATION 

 

	I	INTRODUCTION 

 IAE assures AAH
that by the end of the [*] period commencing with AAH’s first commercial operation of Aircraft powered by V2500 Engines, the cumulative Engine-caused Delay and Cancellation Rate will not exceed a Guaranteed Rate of [*] Aircraft departures.
Under this Guarantee, if the cumulative Engine-caused Delay and Cancellation Rate is determined to have exceeded the Guaranteed Rate over the Period of Guarantee, IAE will credit AAH’s account with IAE an amount of $[*]U.S. Dollars for each
excess Eligible Delay and Cancellation determined to have been in excess of the Guaranteed Rate. 
  

	II	GUARANTEE 

  

	 	A.	Period of Guarantee 

 The
Period of Guarantee will start on the date AAH initiates commercial operation of its first Aircraft powered by Eligible Engines and will terminate [*] from that date. 
  

	 	B.	Eligible Engines 

 The
Engines that will be Eligible under this Guarantee shall be installed and Spare Engines which are owned or operated by AAH during the Period of Guarantee and which have been acquired new pursuant to the Contract to which this Guarantee is attached
or the Aircraft Purchase Agreement. The Engines shall remain Eligible provided that AAH or its authorized maintenance facility maintains them in accordance with the IAE instructions and recommendations contained in the applicable IAE publications
including the latest V2500 Maintenance Management Plan for AAH. 
  

	 	C.	i) Eligible Delay 

 An
Eligible Delay shall occur when by a Failure of a Part in an Eligible Engine installed in an Aircraft is the sole cause of a delay in the final Departure of that Aircraft by more than [*] after its programmed Departure in either of the following
instances: 
  

	 	1)	an originating flight departing later than its scheduled Departure time; or 

 

	 	2)	a through flight or a turnaround flight remaining on the ground longer than its scheduled ground time. 

  
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 C. ii) Eligible Cancellation 

A single Cancellation shall occur when a Failure of a Part in an Eligible Engine installed in an Aircraft is the sole cause of the
elimination of a Departure in either of the following instances: 
  

	 	1)	cancellation of a trip comprising a single flight leg; or 

  

	 	2)	cancellation of any or all of the flight legs of a multiple leg trip. 

 C. iii) 
 A Departure which is canceled after an Eligible Delay shall be an
Eligible Cancellation not an Eligible Delay. 
 C. iv) 

Consecutive Delays and Cancellations for the same problem because corrective action had not been taken will be excluded. 

 

	 	D.	Departure 

 A Departure
comprises the movement of an Aircraft from the blocks for the purpose of an intended scheduled revenue flight provided that there can be only one Departure for each intended flight leg. 

 

	 	E.	Reporting of Eligible Delays and Cancellations 

 Eligible Delays and Cancellations shall be reported to IAE by AAH within thirty (30) days after the date of such Delay or Cancellation using IAE Form DC Rev 1. July 95 (or in a substantially
similar format) together with such other information as may be needed to determine the Eligibility of the Delay or Cancellation. Each such Form shall be verified by an authorized IAE Representative before submission. Should it be necessary for him
to disqualify a reported Delay or Cancellation, supporting information will be furnished. 
 Departures accumulated by Eligible
Engines during each month during the Period of Guarantee shall be reported by AAH within thirty (30) days after each month’s end to IAE on IAE Form DC Rev 1. July 95 (or in a substantially similar format) unless other procedures are
established for the reporting of Departures. 

  
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	 	F.	Credit Allowance Calculation 

 A credit of [*] will be granted by IAE for each Eligible Delay and Eligible Cancellation determined as calculated below to be in excess of the Guaranteed Rate during the Period of Guarantee. An annual
calculation will be made no later than [*] after each yearly anniversary of the commencement of the Period of Guarantee provided that the necessary records of Delays, Cancellation and Departure have been reported to IAE. 

Each annual calculation will be made using data that will be cumulative from the start of the Period of Guarantee. An interim credit will
be granted, if necessary, following the annual calculations for the second year and each subsequent year of the Period of Guarantee. If subsequent annual calculations show that on a cumulative basis, a previous interim credit (or portion thereof)
was excessive, such excess amount shall be subject to repayment which will be effected by IAE issuing a debit against AAH’s account with IAE. Credits and debits will be applied to AAH’s account with IAE not later than thirty (30) days
following a calculation for the second year and each subsequent year of the Period of Guarantee, as applicable. 
 Credit
Allowance = (ADC - GDC) x [*] 
 Where: 
  

			
	ADC     =	  	Total qualifying actual Engine Caused Delays and Cancellations
		  	claimed and accepted as eligible during the applicable period
		  	of the calculation.
		
	GDC     =	  	[*] x total Departures accumulated on Eligible Engines
		  	during the applicable period of calculation.

  

	III	DEFINITIONS AND GENERAL CONDITIONS 

 All of the Definitions and General Conditions of the V2500 Engine and Parts Service Policy shall apply to this Guarantee. Delays and Cancellation excluded by the General Conditions of the Policy shall be
excluded from this Guarantee. 
  

	IV	SPECIFIC CONDITIONS 

  

	 	A.	The Guaranteed Rate is predicated on the use by AAH of: 

 1. [*]. 
  

	 	B.	 IAE and AAH acknowledge that, as of the date of this Contract, the current operations of the Grupo TACA Airlines do not give rise to a material
variation in the Specific Conditions upon which the Guaranteed Rate is predicated. However, IAE reserves the right to make appropriate adjustments to the Guarantee Rate if there is, during the Period of Guarantee, a variation from the conditions
upon which the Guaranteed Rate is predicated which results in a material change to IAE’s risk. In addition, the Guaranteed Rate shall no longer apply to any Engine that is no longer owned by AAH or operated by a Grupo Taca Airline. The
methodology to be used in such case will be 

  
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similar in all material respects to the methodology used in determining the original Guaranteed Rate [*], will be that generally used by IAE for other operators, and shall not adversely impact
nor improve IAE’s risk position from that which was undertaken by IAE with the original Guaranteed Rate. 

  

	 	C.	In the event credits are issued under Section II, such credits will first to the extent reasonably required be dedicated to the procurement of Parts identified within a
reasonable time aimed at correction of the situations contributing to excess Delays and Cancellations. Accordingly, AAH and IAE will establish jointly the modifications or Parts to be selected, and AAH will incorporate the changes into Eligible
Engines. Otherwise, such credits may be used to procure Supplies or services from IAE. 

  

	V	EXCLUSION OF BENEFITS 

 The
intent of this Guarantee is to provide specified benefits to AAH as a result of the failure of Eligible Engines to achieve the delay and cancellation level stipulated in the Guarantee. It is not the intent, however, to duplicate benefits provided to
AAH from any third-party. Therefore, the terms and conditions of this Guarantee notwithstanding, if the terms of this Guarantee should make duplicate benefits available to AAH from any third-party, AAH may elect to receive the benefits under this
Guarantee or under any of the other benefits described above, but not both. 

  
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 EXHIBIT D-6 
 V2500 INFLIGHT SHUTDOWN GUARANTEE 

  
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 V2500 INFLIGHT SHUTDOWN GUARANTEE 

 

	I	INTRODUCTION 

 IAE assures AAH
that by the end of the [*] period commencing with AAH’s first commercial operation of Aircraft powered by V2500 Engines, the cumulative Engine Inflight Shutdown Rate will not exceed a Guaranteed Rate of [*] Eligible Engine flight hours. Under
this Guarantee, if the cumulative Eligible Inflight Shutdown Rate is determined to have exceeded the Guaranteed Rate over the Period of Guarantee, IAE will credit AAH’s account with IAE an amount of [*] U.S. Dollars for each Eligible Inflight
Shutdown determined to have been in excess of the Guaranteed Rate. 
  

	II	GUARANTEE 

  

	 	A.	Period of Guarantee 

 The
Period of Guarantee will start on the date AAH initiates commercial operation of its first Aircraft powered by Eligible Engines and will terminate [*] from that date. 
  

	 	B.	Eligible Engines 

 The
Engines that will be Eligible under this Guarantee shall be installed and Spare Engines which are owned or operated by AAH during the Period of Guarantee and which have been acquired new pursuant to the Contract to which this Guarantee is attached
or the Aircraft Purchase Agreement. The Engines shall remain Eligible provided that AAH or its authorized maintenance facility maintains them in accordance with the IAE instructions and recommendations contained in the applicable IAE publications
including the latest V2500 Maintenance Management Plan for AAH. 
  

	 	C.	Eligible Inflight Shutdowns 

 Eligible Inflight Shutdowns shall comprise the inflight shutdown of an Eligible Engine during a scheduled revenue flight which is determined to have been caused by a Failure of a Part of such Engine.
Multiple inflight shutdowns of the same Engine during the same flight leg for the same problem will be counted as one (1) Eligible Inflight Shutdown. A subsequent inflight shutdown on a subsequent flight leg for the same problem because
corrective action has not been taken will be excluded. 

  
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	 	D.	Reporting of Eligible Inflight Shutdowns 

 Eligible Inflight Shutdowns shall be reported to IAE by AAH within [*] after the date of such Inflight Shutdown using a FAA Service Difficulty Report together with such other information as may be needed
to determine the Eligibility of the Inflight Shutdown. Each such Form shall be verified by an authorized IAE Representative before submission. Should it be necessary for him to disqualify a reported Inflight Shutdown, supporting information will be
furnished. 
 Flight hours accumulated by Eligible Engines during each month during the Period of Guarantee shall be reported by
AAH within [*] after each month’s end to IAE on IAE Form TBD or a FAA Service Difficulty Report unless other procedures are established for the reporting of flight hours. 

 

	 	E.	Credit Allowance Calculation 

 A credit of [*] U.S. Dollars will be granted by IAE for each Eligible Inflight Shutdown determined as calculated below to be in excess of the Guaranteed Rate during the Period of Guarantee. An annual
calculation will be made no later than sixty (60) days after each yearly anniversary of the commencement of the Period of Guarantee provided that the necessary Inflight Shutdown records and Eligible Engine flight hour information have been
reported to IAE. 
 Each annual calculation will be made using data that will be cumulative from the start of the Period of
Guarantee. An interim credit will be granted, if necessary, following the annual calculations for the second year and each subsequent year of the Period of Guarantee. If subsequent annual calculations show that on a cumulative basis, a previous
interim credit (or portion thereof) was excessive, such excess amount shall be subject to repayment which will be effected by IAE issuing a debit against AAH’s account with IAE. Credits and debits will be applied to AAH’s account with IAE
not later than thirty (30) days following a calculation for the second year and each subsequent year of the Period of Guarantee, as applicable. 
 The Credit Allowance = (AI - GI) x [*] 
 Where: 

 

					
			
	AI	  	=	  	Total Eligible Inflight Shutdowns during the period of the calculation;
			
	GI	  	=	  	[*] x total Engine flight hours accumulated on Eligible Engines during the period of the calculation.
			
	(NOTE:	  		  	GI will be rounded to the nearest whole number.)

  
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	III	DEFINITIONS AND GENERAL CONDITIONS 

 All of the Definitions and General Conditions of the V2500 Engine and Parts Service Policy shall apply to this Guarantee. Engines and Inflight Shutdowns excluded by the General Conditions of the Policy
shall be excluded from this Guarantee. 
  

	IV	SPECIFIC CONDITIONS 

  

	 	A.	The Guaranteed Rate is predicated on the use by AAH of: 

 [*] 
  

	 	B.	IAE and AAH acknowledge that, as of the date of this Contract, the current operations of the Grupo TACA Airlines do not give rise to a material variation in the
Specific Conditions upon which the Guaranteed Rate is predicated. However, IAE reserves the right to make appropriate adjustments to the Guarantee Rate if there is, during the Period of Guarantee, a variation from the conditions upon which the
Guaranteed Rate is predicated which results in a material change to IAE’s risk. In addition, the Guaranteed Rate shall no longer apply to any Engine that is no longer owned by AAH or operated by a Grupo Taca Airline. The methodology to be used
in such case will be similar in all material respects to the methodology used in determining the original Guaranteed Rate [*], will be that generally used by IAE for other operators, and shall not adversely impact nor improve IAE’s risk
position from that which was undertaken by IAE with the original Guaranteed Rate. 

  

	 	C.	In the event credits are issued under Section II, such credits will first to the extent reasonably required be dedicated to the procurement of Parts identified within a
reasonable time aimed at correction of the situations contributing to excess Inflight Shutdowns. Accordingly, AAH and IAE will establish jointly the modifications or Parts to be selected, and AAH will incorporate the changes into Eligible Engines.
Otherwise, such credits may be used to procure Supplies or services from IAE. 

  

	V	EXCLUSION OF BENEFITS 

 The
intent of this Guarantee is to provide specified benefits to AAH as a result of the failure of Eligible Engines to achieve the inflight shutdown level stipulated in the Guarantee. It is not the intent, however, to duplicate benefits provided to AAH
from any third-party. Therefore, the terms and conditions of this Guarantee notwithstanding, if the terms of this Guarantee should make duplicate benefits available to AAH from any third-party, AAH may elect to receive the benefits under this
Guarantee or under any of the other benefits described above, but not both. 

  
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 EXHIBIT D-7 
 V2500 FUEL CONSUMPTION RETENTION GUARANTEE 

  
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 V2500-A5 FUEL CONSUMPTION RETENTION GUARANTEE 

 

	I	INTRODUCTION 

 IAE assures AAH
that during the [*] commencing with AAH’s first commercial operation of Aircraft powered by V2500-A5 Engines, the fleet average cruise fuel consumption for Eligible Engines will not have increased by more than a Guaranteed Rate of [*]. Under
this Guarantee, if the fleet average cruise fuel consumption for Eligible Engines exceeds the Interim Guaranteed Rate at the end of [*], IAE will credit AAH’s account with IAE an amount in respect of excess fuel consumed for that portion of the
Period of the Guarantee that the Guarantee level has been exceeded. If the fleet average Cruise Fuel Consumption for eligible Engines exceeds the guaranteed rate at the end of [*], IAE will credit AAH’s account with IAE an amount in respect of
excess fuel consumed minus any interim credit which IAE may have issued at the [*]. 
  

	II	GUARANTEE 

  

	 	A.	Period of Guarantee 

 The
Period of Guarantee will start on the date AAH initiates commercial operation of its first Aircraft powered by Eligible Engines and will terminate [*] from that date. 
  

	 	B.	Eligible Engines 

 The
Engines that will be Eligible under this Guarantee shall be installed and Spare Engines which are owned or operated by AAH during the Period of Guarantee and which have been acquired new pursuant to the Contract to which this Guarantee is attached
or the Aircraft Purchase Agreement. The Engines shall remain Eligible provided that AAH or its authorized maintenance facility maintains them in accordance with the IAE instructions and recommendations contained in the applicable IAE publications
including the latest V2500 Maintenance Management Plan for AAH. 
  

	 	C.	Fuel Consumption Measurement 

 The inflight data required for administration of this Guarantee will be obtained by AAH during stable cruise conditions using ECM data recordings and the ECM II software available from IAE (requires the
ECM sales order option from Airbus Industrie) or such other method as mutually agreed by AAH and IAE. 

  
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 Provided that: 

 

	 	a)	the fuel consumption data for any Eligible Engine on which the engine parameters indicate a possible malfunction (including associated Aircraft systems), other than
normal gas path deterioration, that is subsequently confirmed by maintenance action will not be considered acceptable data, and 

  

	 	b)	data which is obviously inaccurate under normal engine monitoring practices will not be considered acceptable data; this type of data will be rejected unless AAH
validity checks have established that Total Air Temperature, Fuel Flow Aircraft and Engine Bleed Systems and other Aircraft parameters are within normal operating ranges. 

 

	 	D.	Periodic Fleet Average Cruise Fuel Consumption Deterioration 

 The Periodic Fleet Average Cruise Fuel Consumption Deterioration shall be the average of the Cruise Fuel Flow Deterioration for all installed Eligible Engines for a [*] reporting period. This is to be
reported to IAE every [*]. 
  

	 	E.	Fleet Average Cruise Fuel Consumption Deterioration 

 The Fleet Average Cruise Fuel Consumption Deterioration is the average of the Periodic Fleet Average Cruise Fuel Consumption Deterioration values for all [*] periods during the Period of Calculation
(cumulative from start of Period of Guarantee to end of the [*]. 
  

	F.	Operational Data 

 AAH
shall provide the following data to IAE as indicated during the Period of the Guarantee: 
  

	 	1.	Total quantity of fuel consumed by Eligible Engines during the Period (U.S. Gallons), every [*]. 

 

	 	2.	Average cost of fuel to AAH over the Period of Guarantee (U.S. Dollars per U.S. Gallon), [*]. 

 

	 	3.	Aircraft operating hours for each [*] period during the Period of Guarantee 

 

	 	4.	Engine maintenance action information, as requested. 

 Alternatively; 
 IAE is agreeable to the use of the Airbus performance model to
estimate the total fuel consumption during the period of guarantee (using typical AAH A319 Aircraft and A320 Aircraft operating characteristics). Average cost of fuel to be agreed between IAE and AAH based on typical fuel costs in the appropriate
area of operation during the period of guarantee. AAH shall notify IAE in writing of its selection prior to the end of the first settlement period. 

  
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	 	G.	Excess Fuel Consumption Credit Calculation 

 If at the end of each Period of Calculation the Fleet Average Fuel Consumption Deterioration exceeds the Guaranteed Rate, IAE will grant AAH a credit in respect to excess fuel consumption calculated in
accordance with the following formula: 
 C = [*] 
 where: 
  

			
	C =	  	the amount of the credit in U.S. dollars
		
	D =	  	the Fleet Average Fuel Consumption Deterioration (in percent)
		
	GR =	  	the Guaranteed Rate
		
	Y =	  	initial cruise fuel flow of new Eligible Engines expressed in U.S. gallons per hour to be established within [*] of start of operation (per ECM II program)
		
	H =	  	the total of all flight hours flown by AAH’s Eligible Engines during that portion of the Period of Guarantee that the Guarantee level has been exceeded.
		
	F =	  	The average net cost to AAH in U.S. Dollars per U.S. Gallon of aviation fuel consumed by AAH during the Period of Guarantee.

 Credits, if any, will be issued to AAH’s account with IAE following calculations for the fifth, and
tenth year of the Plan. If subsequent calculations show that a previous credit was insufficient, IAE will issue additional credits. In any event, AAH will not pay back any Credits provided under this Plan. 

  
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	III	DEFINITIONS AND GENERAL CONDITIONS 

 All of the Definitions and General Conditions of the V2500 Engine and Parts Service Policy shall apply to this Guarantee. In the case of conflict between the Definitions and General Conditions of the
Service Policy and the terms and conditions of this Plan, this Plan shall govern. 
  

	IV	SPECIFIC CONDITIONS 

  

	 	A.	The Guaranteed Rate is predicated on the use by AAH of: 

 [*] 
  

	 	B.	IAE and AAH acknowledge that, as of the date of this Contract, the current operations of the Grupo TACA Airlines do not give rise to a material variation in the
Specific Conditions upon which the Guaranteed Rate is predicated. However, IAE reserves the right to make appropriate adjustments to the Guarantee Rate if there is, during the Period of Guarantee, a variation from the conditions upon which the
Guaranteed Rate is predicated which results in a material change to IAE’s risk. In addition, the Guaranteed Rate shall no longer apply to any Engine that is no longer owned by AAH or operated by a Grupo Taca Airline. The methodology to be used
in such case will be similar in all material respects to the methodology used in determining the original Guaranteed Rate [*], will be that generally used by IAE for other operators, and shall not adversely impact nor improve IAE’s risk
position from that which was undertaken by IAE with the original Guaranteed Rate. 

  

	 	C.	In the event credits are issued under Section II, such credits will first to the extent reasonably required be dedicated to the procurement of Parts identified within a
reasonable time aimed at correction of the situations contributing to excess Fuel Consumption. Accordingly, AAH and IAE will establish jointly the modifications or Parts to be selected, and AAH will incorporate the changes into Eligible Engines.
Otherwise, such credits may be used to procure Supplies or services from IAE. 

  

	V	EXCLUSION OF BENEFITS 

 The
intent of this Guarantee is to provide specified benefits to AAH as a result of the failure of Eligible Engines to achieve the fuel consumption retention level stipulated in the Guarantee. It is not the intent, however, to duplicate benefits
provided to AAH from any third-party. Therefore, the terms and conditions of this Guarantee notwithstanding, if the terms of this Guarantee should make duplicate benefits available to AAH from any third-party, AAH may elect to receive the benefits
under this Guarantee or under any of the other benefits described above, but not both. 

  
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 EXHIBIT D-8 
 V2500 EXHAUST GAS TEMPERATURE GUARANTEE 

  
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 V2500 EXHAUST GAS TEMPERATURE GUARANTEE 

 

	I	INTRODUCTION 

 IAE assures AAH
that during the [*], and during [*] the maximum stabilized takeoff exhaust gas temperature for each Eligible V2500 Engine will not exceed the Certified Limit. Under this Guarantee if it is confirmed that the Certified Limit has been exceeded, IAE
will credit AAH’s account with IAE in the amount of [*]. For the purpose of this Guarantee, the Certified Limit is exceeded if the Engine will not achieve the specified engine pressure ratio for takeoff thrust without exceeding the Certified
Limit for its Exhaust Gas Temperature. 
  

	II	GUARANTEE 

  

	 	A.	Period of Guarantee 

 The
Period of Guarantee for each Eligible Engine will start on the date AAH initiates commercial operation of its first Aircraft powered by such Engine and will terminate when such Engine has completed [*]. 

 

	 	B.	Eligible Engines 

 The
Engines that will be Eligible under this Guarantee shall be installed and Spare Engines which are owned or operated by AAH which have been acquired new pursuant to the Contract to which this Guarantee is attached or the Aircraft Purchase Agreement.
The Engines shall remain Eligible provided that AAH or its authorized maintenance facility maintains them in accordance with the IAE instructions and recommendations contained in the applicable IAE publications including the latest V2500 Maintenance
Management Plan for AAH. 
  

	 	C.	Restoration of Installed Engine 

 If during the Period of Guarantee, the maximum stabilized takeoff exhaust gas temperature of an Eligible Engine installed in an Aircraft operated by AAH exceeds the Certified Limit, AAH shall undertake
on-wing Engine maintenance recommended by IAE, with technical assistance provided by IAE, to restore the performance of that Engine. 

  
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	 	D.	Calibration of Removed Engine 

 If the performance of an installed Eligible Engine cannot be restored by the maintenance recommended under Section II, Paragraph C, AAH shall promptly remove such Engine from the Aircraft and dispatch it
at its cost for calibration in an IAE designated test cell. If such calibration verifies that the exhaust gas temperature of the Engine is not in excess of the Certified Limit or it is established that any excess is due to causes which are excluded
by the General Conditions in Section III, then the cost of such test cell calibration and associated transportation will be borne by AAH. 
  

	 	E.	Credit Allowance 

 A
credit of [*] will be granted by IAE for each event not meeting the requirements set forth in Section I of this guarantee and as verified by Section II, Paragraph D. above. 

 

	 	F.	Qualified Shop Visits 

 A
Qualified Shop Visit is defined as any shop visit after which post-maintenance test results show that the post-repair Engine acceptance criteria, as outlined in the Maintenance Management Plan for AAH, has been met. 

 

	III.	SPECIFIC CONDITIONS 

  

	 	A.	The Guaranteed Rate is predicated on the use by AAH of: 

 [*] 
  

	 	B.	IAE and AAH acknowledge that, as of the date of this Contract, the current operations of Grupo TACA Airlines do not give rise to a material variation in the Specific
Conditions upon which the Guaranteed Rate is predicated. However, IAE reserves the right to make appropriate adjustments to the Guarantee Rate if there is, during the Period of Guarantee, a variation from the conditions upon which the Guaranteed
Rate is predicated which results in a material change to IAE’s risk. In addition, the Guaranteed Rate shall no longer apply to any Engine that is no longer owned by AAH or operated by a Grupo Taca Airline. The methodology to be used in such
case will be similar in all material respects to the methodology used in determining the original Guaranteed Rate [*], will be that generally used by IAE for other operators, and shall not adversely impact nor improve IAE’s risk position from
that which was undertaken by IAE with the original Guaranteed Rate. 

  

	 	C.	In the event credits are issued under Section II, such credits will first to the extent reasonably required be dedicated to the procurement of Parts identified within a
reasonable time aimed at correction of the situations contributing to excess Engine Gas Temperature. Accordingly, AAH and IAE will establish jointly the modifications or Parts to be selected, and AAH will incorporate the changes into Eligible
Engines. Otherwise, such credits may be used to procure Supplies or services from IAE. 

  
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	IV	DEFINITIONS AND GENERAL CONDITIONS 

 All of the Definitions and General Conditions of the V2500 Engine and Parts Service Policy shall apply to this Guarantee. Engines excluded by the General Conditions of the Policy shall be excluded from
this Guarantee. 
  

	V	EXCLUSION OF BENEFITS 

 The
intent of this Guarantee is to provide specified benefits to AAH as a result of the failure of Eligible Engines to achieve the exhaust gas temperature level stipulated in the Guarantee. It is not the intent, however, to duplicate benefits provided
to AAH under any other applicable guarantee, sales warranty, service policy, or any special benefit of any kind as a result of the same failure. Therefore, the terms and conditions of this Guarantee notwithstanding, if the terms of this Guarantee
should make duplicate benefits available to AAH from IAE or any third-party, AAH may elect to receive the benefits under this Guarantee or under any of the other benefits described above, but not both. 

  
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 EXHIBIT D-9 
 [*] 
  

	*	[Four pages have been omitted in accordance with a request for confidential treatment.] 

  
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 EXHIBIT D-10 

 

	*	[Four pages have been omitted in accordance with a request for confidential treatment.] 

  
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 EXHIBIT D-11 
 V2500 FIRST RUN RELIABILITY GUARANTEE 
  

	*	[Four pages have been omitted in accordance with a request for confidential treatment.] 

  
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 EXHIBIT D-12 
 V2500 REMOTE SITE REMOVAL GUARANTEE 

  
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 V2500 REMOTE SITE REMOVAL GUARANTEE 

 

	I	INTRODUCTION 

 IAE assures AAH
that by the end of the [*] period commencing with AAH’s first commercial operation of Aircraft powered by V2500 Engines, the cumulative Remote Site Removal Rate will not exceed a Guaranteed Rate of [*] Eligible Engine flight hours. Under this
Guarantee, if the cumulative Eligible Remote Site Removal Rate is determined to have exceeded the Guaranteed Rate over the Period of Guarantee, IAE will credit AAH’s account with IAE an amount of [*] for each Eligible Remote Site Removal
determined to have been in excess of the Guaranteed Rate. 
  

	II	GUARANTEE 

  

	 	A.	Period of Guarantee 

 The
Period of Guarantee will start on the date AAH initiates commercial operation of its first Aircraft powered by Eligible Engines and will terminate [*] from that date. 
  

	 	B.	Eligible Engines 

 The
Engines that will be Eligible under this Guarantee shall be installed and Spare Engines which are owned or operated by AAH during the Period of Guarantee and which have been acquired new pursuant to the Contract to which this Guarantee is attached
or the Aircraft Purchase Agreement. The Engines shall remain Eligible provided that AAH or its authorized maintenance facility maintains them in accordance with the IAE instructions and recommendations contained in the applicable IAE publications
including the latest V2500 Maintenance Management Plan for AAH. 
  

	 	C.	Eligible Remote Site Removals 

 Eligible Remote Site Removals shall be the removals of an Eligible Engine from an Aircraft at a Grupo Taca Airline line station, other than a Grupo Taca Airline main base, at which there is no serviceable
V2500 Engine, which removal is determined to have been caused by a Failure of a Part of such Engine. 
  

	 	D.	Reporting of Remote Site Removals 

 Eligible Remote Site Removals shall be reported to IAE by AAH within [*] after the date of such Removal using IAE Form RSR Rev. 1. July 95 (or in a substantially similar format) together with such
other information as may be needed to determine the Eligibility of the Removal. 
 Each such Form shall be verified by an
authorized IAE Representative before submission. Should it be necessary for him to disqualify a reported Remote Site Removal, supporting information will be furnished. 

  
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 Flight hours accumulated by Eligible Engines during each month during the Period of
Guarantee shall be reported by AAH within [*] after each month’s end to IAE on IAE Form RSR Rev. 1. July 95 unless other procedures are established for the reporting of flight hours. 

 

	 	E.	Credit Allowance Calculation 

 A credit of [*] will be granted by IAE for each Eligible Remote Site Removal determined as calculated below to be in excess of the Guaranteed Rate during the Period of Guarantee. An annual calculation
will be made no later than sixty (60) days after each yearly anniversary of the commencement of the Period of Guarantee provided that the necessary Remote Site Removal records and Eligible Engine flight hour information have been reported to
IAE. 
 Each annual calculation will be made using data that will be cumulative from the start of the Period of Guarantee. An
interim credit will be granted, if necessary, following the annual calculations for the second year and each subsequent year of the Period of Guarantee. If subsequent annual calculations show that on a cumulative basis, a previous interim credit (or
portion thereof) was excessive, such excess amount shall be subject to repayment which will be effected by IAE issuing a debit against AAH’s account with IAE. Credits and debits will be applied to AAH’s account with IAE not later than
thirty (30) days following a calculation for the second year and each subsequent year of the Guarantee Period, as applicable. 
  

			
	Credit Allowance = [*]
		
	CRSR	 	= Total Eligible Remote Site Removals during the period of the calculation.
		
	RSR	 	 = [*] x total Engine flight hours accumulated on Eligible Engines
   during the period of the calculation.

		
		 	  (Note: RSR will be rounded to the nearest whole number)

  

	III	DEFINITIONS AND GENERAL CONDITIONS 

 All of the Definitions and General Conditions of the V2500 Engine and Parts Service Policy shall apply to this Guarantee. Remote Site Removals excluded by the General Conditions of the Policy shall be
excluded from this Guarantee. 
  

	IV	SPECIFIC CONDITIONS 

  

	 	A.	The Guaranteed Rate is predicated on the use by AAH of: 

 [*] 
  

	 	B.	 IAE and AAH acknowledge that, as of the date of this Contract, the current operations of the Grupo TACA Airlines do not give rise to a material
variation in the Specific Conditions upon which the Guaranteed Rate is predicated. However, IAE reserves the right to make appropriate adjustments to the Guarantee Rate if there is, during the Period of Guarantee, a variation from the conditions
upon which the Guaranteed Rate 

  
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is predicated which results in a material change to IAE’s risk. In addition, the Guaranteed Rate shall no longer apply to any Engine that is no longer owned by AAH or operated by a Grupo
Taca Airline. The methodology to be used in such case will be similar in all material respects to the methodology used in determining the original Guaranteed Rate (the MTBR model provided to AAH), will be that generally used by IAE for other
operators, and shall not adversely impact nor improve IAE’s risk position from that which was undertaken by IAE with the original Guaranteed Rate. 

  

	 	C.	In the event credits are issued under Section II, such credits will first to the extent reasonably required be dedicated to the procurement of Parts identified within a
reasonable time aimed at correction of the situations contributing to excess Remote Site Removals. Accordingly, AAH and IAE will establish jointly the modifications or Parts to be selected, and AAH will incorporate the changes into Eligible Engines.
Otherwise, such credits may be used to procure Supplies or services from IAE. 

  

	V	EXCLUSION OF BENEFITS 

 The
intent of this Guarantee is to provide specified benefits to AAH as a result of the failure of Eligible Engines to achieve the remote site removal level stipulated in the Guarantee. It is not the intent, however, to duplicate benefits provided to
AAH from any third-party. Therefore, the terms and conditions of this Guarantee notwithstanding, if the terms of this Guarantee should make duplicate benefits available to AAH from any third-party, AAH may elect to receive the benefits under this
Guarantee or under any of the other benefits described above, but not both. 

  
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 EXHIBIT D-13 

 

	*	[Two pages have been omitted in accordance with a request for confidential treatment.] 

  
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