Document:

Shareholders Agreement, dated as of _________, 2012

 Exhibit 10.10 
 FORM OF EXECUTION VERSION 
  

 
 SHAREHOLDERS AGREEMENT

 Among 
 LAN AIRLINES S.A., 
 TEP CHILE S.A., 

and 

HOLDCO I S.A. 
 Dated as of                     , 2012 

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	
	 ARTICLE I
	   

	
	GOVERNANCE OF HOLDCO I	  
			
	SECTION 1.01	  	Scope of the Agreement	  	 	2	  
	SECTION 1.02	  	Formation of Holdco I	  	 	2	  
	SECTION 1.03	  	Role and Composition of the Holdco I Board	  	 	2	  
	SECTION 1.04	  	Removal and Vacancies	  	 	3	  
	SECTION 1.05	  	Enabling Provisions	  	 	3	  
	SECTION 1.06	  	Holdco I Chairman	  	 	4	  
	SECTION 1.07	  	Meetings of the Holdco I Board	  	 	4	  
	SECTION 1.08	  	Quorum	  	 	5	  
	SECTION 1.09	  	Holdco I Board Voting Requirements	  	 	5	  
	SECTION 1.10	  	Board Supermajority Matters	  	 	5	  
	SECTION 1.11	  	Shareholder Required Vote	  	 	6	  
	SECTION 1.12	  	Shareholder Supermajority Matters	  	 	6	  
	SECTION 1.13	  	Required Actions	  	 	7	  
	SECTION 1.14	  	Management of Holdco I	  	 	7	  
	
	ARTICLE II	  
	
	ACCOUNTING, BOOKS AND RECORDS	  
			
	SECTION 2.01	  	Fiscal Year	  	 	8	  
	SECTION 2.02	  	Accountants	  	 	8	  
	SECTION 2.03	  	Books and Records	  	 	8	  
	SECTION 2.04	  	Access to Information, Audit and Inspection	  	 	9	  
	SECTION 2.05	  	Annual Budget and Business Plan	  	 	9	  
	
	ARTICLE III	  
	
	TRANSFERS AND CONVERSION OF STOCK	  
			
	SECTION 3.01	  	Restrictions on Certain Transfers	  	 	10	  
	SECTION 3.02	  	Ownership Control Events	  	 	12	  
	
	ARTICLE IV	  
	
	GENERAL PROVISIONS	  
			
	SECTION 4.01	  	Term of Agreement	  	 	13	  
	SECTION 4.02	  	Fees and Expenses	  	 	13	  
	SECTION 4.03	  	Governing Law	  	 	14	  

							
	SECTION 4.04	  	Definitions	  	 	14	  
	SECTION 4.05	  	Severability	  	 	16	  
	SECTION 4.06	  	Amendment; Waiver	  	 	17	  
	SECTION 4.07	  	Assignment	  	 	17	  
	SECTION 4.08	  	No Third-Party Beneficiaries	  	 	17	  
	SECTION 4.09	  	After-Acquired Holdco I Voting Stock	  	 	17	  
	SECTION 4.10	  	Notices	  	 	18	  
	SECTION 4.11	  	Specific Enforcement; Consent to Jurisdiction	  	 	19	  
	SECTION 4.12	  	WAIVER OF JURY TRIAL	  	 	19	  
	SECTION 4.13	  	Counterparts	  	 	20	  
	SECTION 4.14	  	Interpretation	  	 	20	  
	SECTION 4.15	  	Filing Requirement	  	 	20	  
			
	Exhibit A	  	 LATAM Group Ownership Structure and Organizational Structure
	  			
	Exhibit B	  	 By-laws of Holdco I
	  			

  
 ii 

 INDEX OF DEFINED TERMS 

 

					
	 	  	Page	 
		
	 Accountants
	  	 	8	  
	 Actions
	  	 	14	  
	 Adverse Effect
	  	 	11	  
	 Affiliate
	  	 	14	  
	 Agreed Courts
	  	 	19	  
	 Agreed Issues
	  	 	19	  
	 Agreement
	  	 	1	  
	 Amaro Family
	  	 	1	  
	 beneficial ownership
	  	 	14	  
	 Block Sale
	  	 	10	  
	 Board Supermajority Matter
	  	 	5	  
	 business day
	  	 	14	  
	 Call Option
	  	 	13	  
	 contract
	  	 	14	  
	 Control
	  	 	14	  
	 Control Group Shareholders Agreement
	  	 	14	  
	 Conversion Option
	  	 	12	  
	 Convertible Securities
	  	 	15	  
	 Director Election Notice
	  	 	12	  
	 Director Representatives
	  	 	2	  
	 Dividend Rights
	  	 	15	  
	 Effective Time
	  	 	2	  
	 Equity Securities
	  	 	15	  
	 Fiscal Year
	  	 	8	  
	 Forced Vote Sale
	  	 	11	  
	 Forced Vote Sale Period
	  	 	11	  
	 Full Conversion Date
	  	 	10	  
	 Full Ownership Conversion Date
	  	 	13	  
	 Governmental Entity
	  	 	15	  
	 Holdco I
	  	 	1	  
	 Holdco I Board
	  	 	2	  
	 Holdco I By-Laws
	  	 	2	  
	 Holdco I CEO
	  	 	7	  
	 Holdco I Chairman
	  	 	4	  
	 Holdco I Non-Voting Stock
	  	 	15	  
	 Holdco I Plans
	  	 	9	  

					
	 	  	Page	 
		
	 Holdco I Stock
	  	 	1	  
	 Holdco I Voting Stock
	  	 	15	  
	 IFRS
	  	 	8	  
	 LATAM
	  	 	1	  
	 LATAM Board
	  	 	1	  
	 LATAM Common Stock
	  	 	11	  
	 LATAM Restricted Shares
	  	 	11	  
	 LATAM Shares
	  	 	10	  
	 Law
	  	 	15	  
	 Limited Voting Rights
	  	 	15	  
	 Order
	  	 	15	  
	 Organizational Documents
	  	 	15	  
	 Ownership Notice
	  	 	12	  
	 Parties
	  	 	1	  
	 Person
	  	 	16	  
	 Related Party
	  	 	16	  
	 Release Event
	  	 	11	  
	 Representatives
	  	 	16	  
	 Second Meeting Date
	  	 	11	  
	 Shareholder Supermajority Matter
	  	 	6	  
	 Shareholders
	  	 	1	  
	 Subsidiary
	  	 	16	  
	 Supermajority Board Vote
	  	 	5	  
	 Supermajority Shareholder Vote
	  	 	6	  
	 TAM
	  	 	1	  
	 TAM Board
	  	 	2	  
	 TAM Chairman
	  	 	3	  
	 TAM Ordinary Stock
	  	 	1	  
	 TAM Preferred Stock
	  	 	1	  
	 TAM Stock
	  	 	1	  
	 Tax Return
	  	 	9	  
	 Tenth Anniversary
	  	 	10	  
	 TEP
	  	 	1	  
	 Transfer
	  	 	10	  
	 U.S. Exchange Act
	  	 	16	  
	 Voting Securities
	  	 	16	  

 
 

  
 iii

 SHAREHOLDERS AGREEMENT, dated as of
                        , 2012 (this “Agreement”), among LAN AIRLINES S.A., a company organized under the
Law of Chile (“LATAM”), TEP Chile S.A., a company organized under the Law of Chile (“TEP” and together with LATAM, the “Shareholders”), and HOLDCO I S.A., a company organized
under the Law of Chile (“Holdco I” and, together with the Shareholders, the “Parties”). 
 W I T N E S S E T H 
 WHEREAS, as of the date of this Agreement Maria Cláudia Amaro, Maurício Amaro, Noemy Amaro and João Francisco Amaro (the “Amaro Family”) collectively own 100%
of the outstanding shares of TEP; 
 WHEREAS, the Amaro Family are the controlling shareholders of TAM S.A., a company organized
under the Law of Brazil (“TAM”), under the Law of Brazil and currently own, directly or indirectly, shares of the ordinary stock, no par value (the “TAM Ordinary Stock”), of TAM and shares of the
non-voting preferred stock, no par value (the “TAM Preferred Stock” and, together with the TAM Ordinary Stock, the “TAM Stock”), of TAM, which collectively constitute 46.6291% of the issued and
outstanding shares of capital stock of TAM and 85.3736% of the total voting power of such capital stock; 
 WHEREAS, as of the
Effective Time, TEP will own at least 80% of the outstanding shares of Holdco I Voting Stock and LATAM will own 100% of the outstanding shares of Holdco I Non-Voting Stock, no more than 20% of the outstanding shares of Holdco I Voting Stock and 100%
of the outstanding TAM Preferred Stock, as reflected in the ownership structure chart attached as Exhibit A hereto; 

WHEREAS, TEP, as the continuing controlling shareholder of TAM under the Law of Brazil as of the Effective Time by virtue of its indirect
ownership of at least 80% of the issued and outstanding shares of Holdco I Voting Stock and Holdco I’s ownership of at least 85.3736% of the issued and outstanding shares of TAM Ordinary Stock, desires to make the concessions to LATAM provided
herein, and the Parties desire to enter into this Agreement to set forth the terms and conditions upon which they have agreed to hold their shares of Holdco I Voting Stock and Holdco I Non-Voting Stock (collectively, the “Holdco I
Stock”), including with respect to the disposition and voting thereof, as well as their agreements with respect to governance, management and operation of, and the relationship among, Holdco I and its Subsidiaries and certain other
matters; and 
 WHEREAS, LATAM has determined and declared that the execution and delivery of this Agreement is in the best
interests of LATAM, and the execution, delivery and performance of this Agreement by LATAM have been duly authorized by the board of directors of LATAM (the “LATAM Board”) and all other necessary corporate action on the part
of LATAM. 

 NOW, THEREFORE, in consideration of the representations and warranties, covenants and
agreements contained herein, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows: 
 ARTICLE I 
 GOVERNANCE OF HOLDCO I 

SECTION 1.01 Scope of the Agreement; Effective Time. The Parties desire to set forth in this Agreement certain terms
and conditions upon which they have agreed to hold their shares of Holdco I Stock, including with respect to disposition and voting thereof, as well as their agreements with respect to governance, management and operation of, and the relationship
among, Holdco I and its Subsidiaries and certain other matters. In the event of any inconsistency or conflict between the provisions of this Agreement and the other Organizational Documents of Holdco I or any of its Subsidiaries, this Agreement
shall control and the Parties shall use their commercially reasonable efforts to amend any such Organizational Documents to conform to the provisions of this Agreement and to exercise their rights under such Organizational Documents to give effect
to such provisions. This Agreement shall become effective only if, and at that time at which, Holdco I becomes a holder of at least 80% of the outstanding shares of TAM Ordinary Stock (the “Effective Time”). All actions
required to be taken or performed under this Agreement shall be taken or performed in accordance with applicable Law. 

SECTION 1.02 Formation of Holdco I. Prior to the date of this Agreement, TEP and LATAM incorporated Holdco I as a closed
sociedad anónima under the Law of Chile with the by-laws in the form attached as Exhibit B hereto (the “Holdco I By-Laws”) for the sole purpose of owning the shares of TAM Ordinary Stock to be
contributed by TEP. From and after the Effective Time, the parties agree that all acquisitions of TAM Ordinary Stock by any member of the LATAM Group shall be made by Holdco I. 

SECTION 1.03 Role and Composition of the Holdco I Board. The business and affairs of Holdco I shall be managed under the
direction of the board of directors of Holdco I (the “Holdco I Board”) in accordance with the applicable provisions of the Organizational Documents of Holdco I. At all times, the Holdco I Board shall be comprised of the same
number of directors as the number of directors that then comprise the board of directors of TAM (the “TAM Board”) and the directors of Holdco I shall be the same individuals that then are directors of TAM. The Holdco I Board
shall be comprised of six directors and initially LATAM shall have the right to elect two individuals to the Holdco I Board and TEP shall have the right to elect four individuals to the Holdco I Board. Whenever LATAM or TEP so elects or appoints any
individual as a director of Holdco I, it will select, and Holdco I will elect or appoint, the same individual as a director of TAM. Each person so elected by LATAM or TEP as a director of Holdco I is referred to herein as one of such
Shareholder’s “Director Representatives”). The term of office for the directors of the Holdco I Board shall be two years. 

  
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 SECTION 1.04 Removal and Vacancies. In the event of any vacancy on the Holdco I
Board resulting from the resignation, incapacity, retirement, death or removal of any Director Representative of any Shareholder, such Shareholder shall have the right to designate another individual to replace such Director Representative on the
Holdco I Board. In such event, the Shareholders shall cause their Director Representatives to request that the Holdco I Chairman call a special meeting of the Holdco I Board in order to appoint such designee to the Holdco I Board and to serve until
the next annual meeting of the shareholders of Holdco I and at such meeting shall cause their Director Representatives to make such appointment. At the same time, LATAM and TEP shall cause their Director Representatives in their capacity as
directors of TAM to request that the chairman of the TAM Board (the “TAM Chairman”) call a special meeting of the shareholders of TAM to elect such designee to the TAM Board and Holdco I shall elect such designee to the TAM
Board to serve until the next annual meeting of the shareholders of TAM. If at any time any Director Representative of any Shareholder ceases to be a member of the TAM Board, such Shareholder shall promptly cause him or her to resign or to be
removed from the Holdco I Board and the Shareholders will replace such Director Representative on the Holdco I Board pursuant to the foregoing procedures. 
 SECTION 1.05 Enabling Provisions. 
 (a) Each Shareholder agrees that
it shall vote, or cause to be voted or execute written consents for, as the case may be, all shares of Holdco I Voting Stock beneficially owned by it, and each Party shall take all other action reasonably necessary (including by causing Holdco I or
TAM to call a special meeting of shareholders or the Holdco I Chairman or the TAM Chairman to call a special meeting of the Holdco I Board or the TAM Board, as applicable) so as to give effect to the agreements with respect to representation on the
Holdco I Board and the TAM Board contained in this Article I and to ensure that the other Organizational Documents of Holdco I and TAM (i) facilitate, enable and do not at any time conflict with any provision of this Agreement and
(ii) permit each Shareholder to receive the full benefits to which each Shareholder is entitled under this Agreement. Each Party further agrees that it shall not take any action directly as a shareholder of Holdco I or TAM, indirectly through
any of its Director Representatives as members of the Holdco I Board or the TAM Board, or otherwise that would contravene or frustrate the implementation of these agreements, and that it shall cause all of its Director Representatives as members of
the Holdco I Board or the TAM Board to act at all times in conformity with, and to take such action as may reasonably be required of and available to them to ensure the fulfillment of, the terms of this Agreement and the other Organizational
Documents of Holdco I and TAM. Holdco I agrees not to take, or to cause or permit TAM to take, any action that would conflict with or subvert the operation or enforcement of any provision of this Agreement or that would impede any Shareholder’s
ability to receive the full benefits to which such Shareholder is entitled under this Agreement. 
 (b) Each Shareholder shall
cause any and all shares of Holdco I Voting Stock beneficially owned by it and entitled to vote at any meeting of shareholders of Holdco I to be present in person or represented by proxy at all annual and special meetings of shareholders of Holdco I
to the extent necessary so that all shares of Holdco I Voting Stock beneficially owned by it shall be counted as present for the purpose of determining 

  
 3 

 
the presence of a quorum at such meeting. Each Shareholder further agrees to execute from time to time in the future any document or documents required by Law to keep the agreements contained in
this Section 1.05 in full force and effect at all times throughout the term of this Agreement. Each Shareholder agrees that it will take all necessary actions (including amending the Holdco I By-Laws) to effect and implement any stock splits or
reverse stock splits of the Holdco I Non-Voting Stock at such times and in such proportions as any holder thereof shall request if (but only if) such split is necessary or advisable to permit or preserve the ability of TAM or any of its Subsidiaries
to conduct operations in any market worldwide. 
 SECTION 1.06 Holdco I Chairman. For so long as TEP is entitled to
elect at least one director to the Holdco I Board, TEP shall have the right to designate from time to time one of its Director Representatives to serve as chairman of the Holdco I Board (the “Holdco I Chairman”), who at all
times shall be the same individual who is then serving as the TAM Chairman. After such designation, each Shareholder shall cause its Director Representatives to cause the Holdco I Board to appoint such Director Representative as the Holdco I
Chairman in accordance with the Organizational Documents of Holdco I. Each time an individual is so appointed as the Holdco I Chairman, LATAM and TEP shall cause their Director Representatives in their capacity as directors of TAM, and Holdco I
shall cause the directors of TAM, to appoint the same individual as the TAM Chairman in accordance with the Organizational Documents of TAM (as defined in the TAM Shareholders Agreement). As of the Effective Time and for a minimum period of two
years, the Holdco I Chairman shall be Maria Cláudia Oliveira Amaro. In no event shall the Holdco I Chairman have a casting vote with respect to any matter before the Holdco I Board. 

SECTION 1.07 Meetings of the Holdco I Board. 
 (a) Regular meetings of the Holdco I Board shall be held on a monthly basis, and each regular monthly meeting of the Holdco I Board shall occur on the same day as, and promptly before the regular monthly
meeting of the TAM Board and within three business days after the regular monthly meeting of the board of directors of LATAM. 

(b) Special meetings of the Holdco I Board may be called by the Holdco I Chairman on not less than 48 hours’ notice to each
director of the Holdco I Board, and such meetings shall be called by the Holdco I Chairman with like notice and like manner promptly after receipt of a written request for a special meeting of the Holdco I Board by any one director of the Holdco I
Board; provided, however, that notwithstanding the foregoing a special meeting of the Holdco I Board may be so called on any shorter notice permitted by applicable Law if necessary or desirable in the particular circumstances. 

(c) The Holdco I By-Laws shall provide that the directors of the Holdco I Board shall be permitted to participate in, and shall be
deemed to be present at, any meeting of the Holdco I Board using teleconference or any other means pursuant to which all the directors participating in such meeting can speak to and hear one another. 

  
 4 

 SECTION 1.08 Quorum. The quorum for any meeting of the Holdco I Board to be
validly held shall be five directors of Holdco I. 
 SECTION 1.09 Holdco I Board Voting Requirements. Each
director of the Holdco I Board shall have one vote on all matters before the Holdco I Board. Any action by the Holdco I Board concerning a Board Supermajority Matter as well as any other action required by applicable Law or this Agreement to be
approved by directors constituting more than a simple majority of the Holdco I Board must be approved by the affirmative vote of five directors of Holdco I at a duly called meeting of the Holdco I Board at which a quorum is present and acting
throughout (each, a “Supermajority Board Vote”). All actions by the Holdco I Board other than with respect to Board Supermajority Matters must be approved by the affirmative vote of a simple majority of the directors of the
Holdco I Board at a duly called meeting of the Holdco I Board at which a quorum is present and acting throughout. 

SECTION 1.10 Board Supermajority Matters. Notwithstanding any provision of this Agreement or the other Organizational
Documents of Holdco I to the contrary and without prejudice to any statutory limitations requiring additional shareholder approvals, Holdco I shall not engage in or take, directly or indirectly, any of the following actions (each, a
“Board Supermajority Matter”) unless approved by a Supermajority Board Vote: 
 (i) to create
(including by the acquisition of shares), dispose of or admit new shareholders to any Subsidiary of Holdco I; 
 (ii) to
approve or effect the acquisition, disposal, modification or encumbrance of (a) any Equity Securities or Convertible Securities in TAM, or (b) any other asset with a value greater than US$15,000,000; 

(iii) to approve investments in any assets not related to the corporate purpose of Holdco I; 

(iv) to execute any kind of agreement or to enter into any kind of transaction in an amount greater than US$15,000,000; 

(v) to terminate, modify or waive any rights or claims of Holdco I under contracts or other arrangements in any amount greater than
US$15,000,000; 
 (vi) to commence, participate in, compromise or settle any material action with respect to any litigation,
judicial, administrative or arbitration proceeding relating to Holdco I in an amount greater than US$15,000,000; 
 (vii) to
approve the execution, amendment, termination or ratification of acts or agreements with Related Parties; 
 (viii) to approve
any financial statements of Holdco I or any amendments thereto or to any dividend, accounting or tax policy or principles of Holdco I; 

  
 5 

 (ix) to approve the grant of any kind of security interest or guarantee to secure
obligations of third parties (including Related Parties); 
 (x) to appoint any executive other than the Holdco I CEO; and

 (xi) to approve any vote to be cast by Holdco I, in its capacity as the holder of shares of TAM Ordinary Stock, in any
shareholders meeting of TAM, including any vote relating to any appointment or removal of any director of TAM or any TAM Shareholder Supermajority Matter (as defined in the TAM Shareholders Agreement). 

SECTION 1.11 Shareholder Required Vote. Any action by the shareholders of Holdco I concerning a Shareholder Supermajority
Matter as well as any other action required by applicable Law or this Agreement to be approved by more than a simple majority of the holders of the then issued and outstanding shares of Holdco I Voting Stock must be approved by the affirmative vote
of the holders of shares representing at least 95% of the total number of shares of Holdco I Voting Stock then issued and outstanding at a duly called meeting of the shareholders of Holdco I at which a quorum is present and acting throughout (each,
a “Supermajority Shareholder Vote”). All actions other than Shareholder Supermajority Matters must be approved by the affirmative vote of the holders of shares constituting a simple majority of the issued and outstanding
shares of Holdco I Voting Stock at a duly called meeting of the shareholders of Holdco I at which a quorum is present and acting throughout. 
 SECTION 1.12 Shareholder Supermajority Matters. Notwithstanding any provision of this Agreement or the Organizational Documents of Holdco I to the contrary, Holdco I shall not engage in or
take, directly or indirectly, any of the following actions (each, a “Shareholder Supermajority Matter”) unless approved by a Supermajority Shareholder Vote: 

(i) to approve any amendments to the by-laws of Holdco I in respect to the following matters: (A) the corporate
purpose, (B) the corporate capital, (C) the rights inherent to each class of shares and to the shareholders of Holdco I, (D) the attributions of the shareholders regular meeting or any limitation to attributions of the Holdco I Board,
(E) increase or decrease of the number of directors and officers, (F) dividends or other distributions, (G) the term of Holdco I, (H) any change in the Fiscal Year of Holdco I and (I) the change of the headquarters of Holdco
I; 
 (ii) to approve the dissolution, liquidation and winding-up of Holdco I; 

(iii) to approve the transformation, merger, spin-up, or any kind of corporate reorganization of Holdco I; 

(iv) to approve mechanisms for paying or making, or to approve, declare or pay, any dividends or other kinds of
distributions to the shareholders of Holdco I; 

  
 6 

 (v) to approve the issuance, redemption, purchase or amortization of any
Equity Securities or Convertible Securities of Holdco I; 
 (vi) to approve the disposal by sale, encumbrance or
otherwise of 50% or more of the assets, including or not the liabilities, of Holdco I, as determined by the balance sheet of the previous year, or to approve a plan contemplating the disposal by sale, encumbrance or otherwise of 50% or more of
the assets of Holdco I; 
 (vii) to approve the disposal by sale, encumbrance or otherwise of 50% or more of the
assets of a Subsidiary of Holdco I representing at least 20% of the assets of Holdco I, or to approve the disposal by sale, encumbrance or otherwise of the Equity Securities of such Subsidiary of Holdco I which has the effect of making Holdco I
lose control over it; 
 (viii) to approve the grant of any security interest or guarantee to secure obligations
of third parties (including Related Parties) in excess of 50% of the assets of Holdco I; 
 (ix) to approve the
execution, amendment, termination or ratification of acts or agreements with Related Parties, exclusively in the cases that a statutory limitation requires that these matters be approved by the shareholders; and 

(x) to appoint or remove the Accountants. 
 SECTION 1.13 Required Actions. Each of Holdco I and each of its Subsidiaries shall exercise all rights it has as a shareholder of each of its respective Subsidiaries in an effort to cause such
Subsidiary to comply with the requirements of this Agreement; provided, however, that the foregoing sentence shall not be construed to require Holdco I or any of its Subsidiaries to take, and in exercising such rights none of them will
take, any action that would cause any director of each such respective Subsidiary to breach his or her fiduciary duties. In selecting the candidates that TEP will propose pursuant to Section 2.02 of the TAM Shareholders Agreement, TEP shall be
guided by the following principles: (a) alignment with the strongest performing leader, i.e., the best of breed; (b) maximization of synergy value capture; (c) conforming to local regulations and culture; and
(d) simplest and easiest execution. 
 SECTION 1.14 Management of Holdco I. The day-to-day business and affairs
of Holdco I shall be managed by the chief executive officer of Holdco I (the “Holdco I CEO”) under the oversight of the Holdco I Board. At all times the individual serving as the Holdco I CEO shall be the same individual that
is then serving as the Chief Executive Officer of TAM pursuant to Section 2.02 of the TAM Shareholders Agreement. The term of office of the Holdco I CEO shall be two years. 

  
 7 

 ARTICLE II 
 ACCOUNTING, BOOKS AND RECORDS 
 SECTION 2.01 Fiscal Year.
Unless and until changed by an amendment of the Holdco I By-Laws, the fiscal year of Holdco I shall end on December 31 in each year (the “Fiscal Year”) and Holdco I, LATAM and TEP shall take, Holdco I shall cause the
directors of TAM to take and LATAM and TEP shall cause their Director Representatives acting in their capacity as directors of TAM to take all necessary action to ensure that the fiscal years of TAM and each of its Subsidiaries are at all times
identical to the Fiscal Year. 
 SECTION 2.02 Accountants. Unless and until removed or changed by Supermajority
Shareholder Vote, the independent public accountants for Holdco I shall be PricewaterhouseCoopers LLP (the “Accountants”) and Holdco I, LATAM and TEP shall take, Holdco I shall cause the directors of TAM to take and LATAM and
TEP shall cause their Director Representatives acting in their capacity as directors of TAM to take, all necessary action to ensure that the Accountants are at all times the independent public accountants of TAM and each of its Subsidiaries.

 SECTION 2.03 Books and Records. 
 (a) Holdco I shall keep, and shall cause its Subsidiaries to keep, in all material respects, at their respective principal offices, full, complete and accurate books and records with respect to the
business and affairs of Holdco I and its Subsidiaries. The books and records shall be maintained in a manner that provides Shareholders with sufficient information so as to permit (i) the preparation of consolidated financial statements for TAM
and its Subsidiaries and financial statements for Multiplus S.A. on a stand-alone basis, in each case in accordance with IFRS, (ii) the Shareholders to account for their interests in Holdco I and its Subsidiaries in their respective financial
statements in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board (“IFRS”), and (iii) the preparation of all required tax returns of Holdco I, TAM and its
Subsidiaries and of the Shareholders. 
 (b) Holdco I shall, as and when reasonably requested by any Shareholder, prepare and
furnish (or cause to be prepared and furnished) to such Shareholder, at the expense of Holdco I, such financial and other data concerning the business and affairs of Holdco I and its Subsidiaries as may be reasonably required by such Shareholder for
tax, accounting, reporting, oversight, or other legitimate business purposes of such Shareholder, such information to be prepared on the basis and in the format that such Shareholder may reasonably request in order to meet the requirements of its
accounting, tax and oversight and reporting systems or the requirements of Law. 
 (c) Holdco I shall, and shall cause its
Subsidiaries to, retain for not less than ten years and for such longer period as required by Law, all of their respective books and records (including the books and records of predecessor businesses, including those relating to periods prior to the
Effective Time). 

  
 8 

 SECTION 2.04 Access to Information, Audit and Inspection. 

(a) Each Shareholder and its Representatives shall have (and Holdco I shall cause its Subsidiaries to provide such Shareholder and its
Representatives with) full access at reasonable times and during normal business hours to all books and records for Holdco I and its Subsidiaries and their respective businesses (including those books and records pertaining to periods prior to the
Effective Time), including the right to examine and audit any of such books and records and to make copies and extracts therefrom. Each Shareholder shall bear all expenses incurred by it and its Representatives in making any such examination on its
behalf. Holdco I shall, and shall cause each of its Subsidiaries to, make arrangements for each Shareholder and its Representatives to have prompt access at reasonable times and during normal business hours to its officers, directors and employees
to discuss the business and affairs of Holdco I and its Subsidiaries and the books and records pertaining thereto. The provisions of this Section 2.04(a) shall survive any termination of this Agreement and shall continue to apply to Holdco I
and its Subsidiaries and be enforceable by a Shareholder regardless of whether such Shareholder ceases to beneficially own any shares of Holdco I Voting Stock but only to the extent that such books and records and such access to officers, directors
and other employees are reasonably requested by a Shareholder in connection with any pending Action involving such Shareholder or any of its Affiliates insofar as such matter relates to the business or affairs of Holdco I and its Subsidiaries
(including any matters relating to the business and affairs of any predecessor businesses, including matters relating to periods prior to the Effective Time). 
 (b) Holdco I shall provide each Shareholder with copies of each completed annual tax return required by Law to be filed by Holdco I or any of its Subsidiaries (each, a “Tax
Return”) at least twenty business days prior to the due date (including any extensions of such due date) of the filing of such Tax Return, and each Shareholder may review any such Tax Return prior to its filing with the appropriate
Governmental Entity. Holdco I shall consult with the Shareholders and negotiate in good faith to resolve any issues arising as a result of the Shareholders’ review of any such Tax Return. The Shareholders and Holdco I and its Subsidiaries shall
use all reasonable good faith efforts to resolve any issue in dispute as promptly as practicable but in any event prior to the due date for the filing of any such Tax Return. In the event that an issue resulting from the review by a Shareholder of
any such Tax Return remains in dispute as of the due date for the filing of such Tax Return, such Tax Return shall be filed with the appropriate Governmental Entity in accordance with the recommendation of the Accountants. 

SECTION 2.05 Annual Budget and Business Plan. 
 The annual budget and business plan for the current Fiscal Year and the business plan for the next five Fiscal Years of Holdco I (collectively, the “Holdco I Plans”) at all times
shall be identical to the annual budget and business plan and the five-year business plan for the next five fiscal years then in effect for TAM and its Subsidiaries. The Holdco I Board shall cause Holdco I and its Subsidiaries to operate in
accordance with, and the officers and employees of Holdco I and its Subsidiaries to implement, the Holdco I Plans and shall conduct, or cause to be conducted, the business of Holdco I and its Subsidiaries in accordance with any such Holdco I Plans.

  
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 ARTICLE III 
 TRANSFERS AND CONVERSION OF STOCK 
 SECTION 3.01 Restrictions on
Certain Transfers. No holder of any shares of Holdco I Voting Stock (other than LATAM) will, or will permit any of its Affiliates (including the ultimate beneficial owners of such holder) to, directly or indirectly, by operation of law or
otherwise, sell, exchange, transfer, convey, assign, mortgage, pledge, encumber or otherwise dispose of any direct or indirect interest in or beneficial ownership of (each, a “Transfer”) all or any portion of the shares of
Holdco I Voting Stock beneficially owned by it to any Person except in compliance with this Section 3.01. Any Transfer made other than in compliance with the terms of this Section 3.01 shall be null and void and of no force or effect.
LATAM shall be entitled to specific performance (to the extent permitted by Law) of its rights under this Section 3.01, in addition to any other legal and equitable remedies to which it may be entitled under Law. Without limitation of the
foregoing, TEP shall not vote its shares of Holdco I Voting Stock, or take any other action, in support of any Transfer by Holdco I of any Equity Securities or any Convertible Securities issued by it or by any of TAM or its Subsidiaries without the
prior written consent of LATAM. 
 (a) Block Sales. On and after the tenth anniversary of the Effective Time (the
“Tenth Anniversary”) and prior to the first date on which LATAM would be permitted under applicable Law in Brazil and other applicable Law to fully convert all of the shares of Holdco I Non-Voting Stock beneficially owned by
LATAM and its Affiliates into shares of Holdco I Voting Stock and such conversion would not have any Adverse Effect (the “Full Conversion Date”), TEP may sell or transfer all (but not less than all) of its shares of Holdco I
Voting Stock to any Person in a single block sale (a “Block Sale”) if (but only if) such Block Sale complies with all of the requirements set forth in this Section 3.01(a). 

(i) A Block Sale must include all of the shares of LATAM Common Stock that TEP is contractually obligated to transfer
along with its shares of Holdco I Voting Stock (collectively, “LATAM Shares”) in such Block Sale. 
 (ii) Prior to a Block Sale, the Person to whom such shares are to be sold or transferred has been approved by a resolution duly adopted by the LATAM Board as a buyer of such shares of Holdco I Voting
Stock; it being agreed that the LATAM Board shall grant such approval without unreasonable delay unless it has a bona fide business objection to such Person being the transferee of such shares or if a transfer of such shares to such Person would, in
the reasonable determination of the LATAM Board, be inconsistent with applicable Law in Brazil. 

  
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 (iii) No Block Sale shall be permitted if it would have a material adverse
effect on the ability of (x) LATAM or Holdco I to own, or to receive the full benefits of ownership of, TAM and its Subsidiaries or (y) TAM or its Subsidiaries to operate their airline businesses worldwide (each, an “Adverse
Effect”). 
 (b) Forced Vote Sales. On and after the third anniversary of the Effective Time, if during any
twenty-four month period TEP is required to vote its shares of common stock, no par value (the “LATAM Common Stock”), of LATAM as directed by the LATAM Controlling Shareholders at two meetings (consecutive or not) of the
shareholders of LATAM held at least twelve months apart, then after the second such shareholder meeting TEP shall have the right to sell or transfer all (but not less than all) of its shares of Holdco I Voting Stock together with its LATAM Shares
(each, a “Forced Vote Sale”) if (i) TEP delivers a written notice to LATAM within 30 days after the date on which such second meeting was held that it intends to make a Forced Vote Sale (the “Second Meeting
Date”), (ii) if such Forced Vote Sale is made prior to the Full Conversion Date it complies with the requirements of Section 3.01(a), but without giving effect to the phrase “On and after the Tenth Anniversary and”
at the beginning of such section and (iii) such Forced Vote Sale is completed within eighteen months after the Second Meeting Date (such period, as it may be extended pursuant to this Section 3.01(b), the “Forced Vote Sale
Period”); provided that if TEP has made a bona fide and reasonably diligent effort to complete a Forced Vote Sale within the Forced Vote Sale Period but has been unable to do so, then the Forced Vote Sale Period shall be extended
for twelve months. If a Forced Vote Sale is not completed within the Forced Vote Sale Period, then this Section 3.01(b) shall only apply with respect to instances that TEP is required to vote its LATAM Shares as directed by the LATAM
Controlling Shareholders after such date. 
 (c) Release Event Sales. If a Release Event occurs and prior to such Release
Event TEP has not sold or transferred any shares of Holdco I Voting Stock and/or any shares of LATAM Common Stock that were (i) beneficially owned by TEP immediately after the Effective Time and (ii) not exempted from the provisions of
Article III of the Control Group Shareholders Agreement at the time of such sale or transfer (collectively, “LATAM Restricted Shares”), then at any time after such Release Event, TEP shall have the right to sell or transfer
all (but not less than all) of its shares of Holdco I Voting Stock together with its LATAM Restricted Shares; provided, however, that if the sale or transfer occurs prior to the Full Conversion Date it must comply with the requirements of
Section 3.01(a) but without giving effect to the phrase “On and after the Tenth Anniversary and,” at the beginning of such section. A “Release Event” shall be deemed to have occurred only if and when each of
the following events shall have occurred: (i) a capital increase (as defined under the Law of Chile) in LATAM is completed after the Effective Time, (ii) TEP does not fully exercise the preemptive rights granted to it under applicable Law
in Chile with respect to such capital increase in respect of all of its LATAM Restricted Shares, (iii) after such capital increase is completed, the individual designated by TEP for election to the LATAM Board with the assistance of the LATAM
Controlling Shareholders is not elected to such board. 

  
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 (d) LATAM Transfers. LATAM shall not sell or transfer any shares of TAM Stock to any
Person (other than an Affiliate of LATAM) at any time when TEP owns any shares of Holdco I Voting Stock; provided, however, that, notwithstanding the foregoing LATAM will have the right to effect such a sale or transfer if LATAM (or
its assignee) acquires all the shares of Holdco I Voting Stock beneficially owned by TEP for an amount equal to TEP’s then current tax basis in such shares and any costs TEP is required to incur to effect such sale or transfer at the same time
as such sale or transfer. TEP hereby irrevocably grants LATAM the assignable right to purchase all of the shares of Holdco I Voting Stock beneficially owned by TEP in connection with any sale pursuant to the proviso in the immediately preceding
sentence. 
 SECTION 3.02 Ownership Control Events. If at any time LATAM is permitted under the Law of Brazil and
other applicable Law to beneficially own a greater percentage of the issued and outstanding shares of Holdco I Voting Stock than it currently beneficially owns, then LATAM shall have the right, exercisable in its sole discretion, in whole or in
part, at any time or from time to time, to convert the shares of Holdco I Non-Voting Stock beneficially owned by it into shares of Holdco I Voting Stock on a 1:1 basis or at another conversion ratio agreed to by LATAM and TEP in writing prior to
such conversion, in each case to the maximum extent allowable under applicable Law (the “Conversion Option”) by providing written notice of such election to TEP and Holdco I (each, an “Ownership
Notice”); provided, however, that notwithstanding the foregoing LATAM may exercise the Conversion Option only if and to the extent that the consummation of such exercise would not have any Adverse Effect. If at any time
LATAM is permitted under applicable Law to have more than two Director Representatives on the Holdco I Board, then LATAM shall have the right, exercisable in its sole discretion, in whole or in part, at any time or from time to time, to appoint
additional Director Representatives to the Holdco I Board in accordance with Section 1.03 by providing written notice of such election to TEP and Holdco I (each, a “Director Election Notice”); provided,
however, that notwithstanding the foregoing LATAM shall not have the right to deliver any Director Election Notice that would result in it appointing half or a majority of the members of any Holdco I Board unless at such time LATAM is permitted
under applicable Law in Brazil and other applicable Law to own a majority of the outstanding shares of Holdco I Voting Stock. Promptly following delivery of any Ownership Notice or Director Election Notice to TEP and Holdco I, each of Holdco I and
TEP shall cooperate with LATAM and shall take or cause to be taken all actions (including by calling a special meeting of shareholders of Holdco I to remove all the directors of the Holdco I and to relect such directors and elect the additional
individuals designated by LATAM to the Holdco I Board), and do or cause to be done all things, reasonably necessary, proper or advisable on its part under the Organizational Documents of Holdco I and applicable Law to permit LATAM to increase its
representation on the Holdco I Board and/or to convert such shares of Holdco I Non-Voting Stock into shares of Holdco I Voting Stock pursuant to this Section 3.02. Without limitation of the foregoing, TEP agrees to cause one or more of its
Director Representatives to resign from each Holdco I Board promptly following request 

  
 12 

 
therefor from LATAM in order to effectuate the purpose of this Section 3.02. LATAM and Holdco I shall take all necessary action to ensure that at the same time that any individuals are added
or removed from the Holdco I Board as a result of this Section 3.02 the same individuals are added or removed from the TAM Board. On and after the Tenth Anniversary and after LATAM has fully converted all of the shares of Holdco I Non-Voting
Stock beneficially owned by it into shares of Holdco I Voting Stock as permitted by applicable Law in Brazil and other applicable Law (the “Full Ownership Conversion Date”), then LATAM shall have the right to purchase all of
the shares of Holdco I Voting Stock held by all holders of such shares for an amount equal to TEP’s then current tax basis in such shares and any costs TEP is required to incur to effect such sale (the “Call Option”). If
LATAM does not exercise the Call Option within 30 days following the occurrence of the Full Ownership Conversion Date or if, after the Tenth Anniversary, LATAM has the right under applicable Law in Brazil and other applicable Law to fully convert
all the shares of Holdco I Non-Voting Stock beneficially owned by it into shares of Holdco I Voting Stock, such conversion would not have an Adverse Effect and LATAM has not fully exercised such right within 30 days after the first date on which
LATAM has such right, then each of the holders of the shares of Holdco I Voting Stock shall have the right to put its shares to LATAM for an amount equal to its then current tax basis in such shares and any costs that it is required to incur to
effect such sale. 
 ARTICLE IV 
 GENERAL PROVISIONS 
 SECTION 4.01 Term of Agreement. Except as
otherwise provided under applicable Law, this Agreement shall continue in effect as to each of the Parties until (i) it is terminated as to any Party by the written consent of all the Parties or (ii) with respect to any Shareholder, the
first day on which such Shareholder no longer beneficially owns any shares of Holdco I Voting Stock, whichever is sooner to occur. This Agreement shall not terminate solely due to any dissolution, liquidation or winding up of Holdco I. The
termination of this Agreement as to any Shareholder shall not affect any of the rights and obligations of any of the other Parties with respect to each other. In the event that this Agreement terminates as to any Shareholder, thereafter such
Shareholder shall have no further liability to the other Parties or to any of their respective shareholders, directors, officers, employees or other Affiliates and such other Parties shall have no further liability to such Shareholder, in each case
solely in respect of this Agreement; provided, however, that the foregoing shall not apply to any provisions hereof that expressly survive the termination of this Agreement (including Sections 2.04 and 4.02); and provided,
further, that nothing herein shall relieve any Party of any liability for any breach of this Agreement that occurred prior to such termination. 
 SECTION 4.02 Fees and Expenses. All fees and expenses incurred in connection with this Agreement shall be paid by the Party incurring such fees or expenses. The provisions of this
Section 4.02 shall survive any termination of this Agreement. 

  
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 SECTION 4.03 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF; PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE FOREGOING THE AUTHORIZATION AND EXECUTION OF THIS AGREEMENT BY EACH PARTY
SHALL BE GOVERNED BY THE LAW OF ITS JURISDICTION OF INCORPORATION. 
 SECTION 4.04 Definitions. For the purposes of
this Agreement, the following terms shall have the meanings assigned below: 
 (a) “Actions” means any
actions, suits, claims, allegations, hearings, proceedings, arbitrations, mediations, audits, inquiries or investigations (whether civil, criminal, administrative or otherwise). 

(b) “Affiliate” shall have the meaning assigned to such term in Rule 12b-2 under the U.S. Exchange Act;
provided, however, that (i) no Shareholder shall be deemed to be an Affiliate of any other Shareholder or any of its Affiliates solely by reason of this Agreement and (ii) the restrictions on Transfers in Article III shall
apply to the holders of shares of Holdco I Voting Stock and their Affiliates, including the ultimate beneficial owners of such holders. 
 (c) “beneficial ownership” (and its correlative phrases) shall have the meanings assigned to such phrases in Rule 13d-3 promulgated under the U.S. Exchange Act (without taking into
account any rights of such Person or any of its Affiliates under Section 1.05 hereof) if the references to “within 60 days” in Rule 13d-3(d)(1)(i) were omitted. For all purposes of this Agreement, a Shareholder shall be deemed to
beneficially own all shares of LATAM Common Stock and Holdco I Voting Stock beneficially owned by it and its Affiliates, including the beneficial owners of such Shareholder. 
 (d) “business day” shall mean any day that is not a Saturday, Sunday or a day on which banking institutions are required or authorized by Law or executive order to be closed in
Santiago, Chile or São Paulo, Brazil. 
 (e) “contract” shall mean any loan, credit agreement,
bond, debenture, note, mortgage, indenture, lease, supply agreement, license agreement, development agreement or other contract, agreement, obligation, commitment or instrument or other legally binding arrangement or understanding, whether written
or oral. 
 (f) “Control” (and its correlative terms) shall have the meanings assigned to such terms in
Rule 12b-2 promulgated under the U.S. Exchange Act. 
 (g) “Control Group Shareholders Agreement ”
means the shareholders agreement, dated as of the date hereof, among the LATAM Controlling Shareholders and TEP Chile. 

  
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 (h) “Convertible Securities” means, with respect to any Person, any
securities, options, warrants or other rights of, or granted by, such Person or any of its Affiliates that are, directly or indirectly, convertible into, or exercisable or exchangeable for, any Equity Securities of such Person or any of its
Affiliates. 
 (i) “Equity Securities” means, with respect to any Person, any capital stock of, or other
equity interests in such Person. 
 (j) “Governmental Entity” means any governmental, quasi-governmental
or regulatory authority, body, department, commission, board, bureau, agency, division, court, organized securities exchange or other legislative, executive or judicial governmental entity or instrumentality of any country, nation, republic,
federation or similar entity or any state, county, parish or municipality, jurisdiction or other political subdivision thereof. 

(k) “Holdco I Non-Voting Stock” shall mean the non-voting stock, no par value, of Holdco I, which, pursuant to
the Holdco I By-Laws, shall have the exclusive right to receive all dividends, distributions or other amounts payable by Holdco I in respect of any shares of its capital stock (including a preference to be paid in connection with any liquidation,
capital reduction, winding up, recapitalization or reorganization) other than the Dividend Rights and which shall have no right to vote on, approve or consent to any matter that is subject to any vote of, approval by or consent from the shareholders
of Holdco I under the Law of Chile or otherwise other than the rights to vote on, approve or consent to matters requiring the approval of the holders of shares of Holdco I Non-Voting Stock under the Law of Chile or otherwise (collectively, the
“Limited Voting Rights”). 
 (l) “Holdco I Voting Stock” shall mean the voting
stock, no par value, of Holdco I, which, pursuant to the Holdco I By-Laws, shall have the exclusive right to vote on, approve or consent to all matters that are subject to any vote of, approval by or consent from the shareholders of Holdco I under
the Law of Chile or otherwise (other than the Limited Voting Rights) and which shall have no economic rights other than the right to receive a nominal dividend (collectively, “Dividend Rights”). 

(m) “Law” means any statute, common law, ordinance, rule, regulation, agency requirement or Order of, or issued,
promulgated or entered into by or with, any Governmental Entity. 
 (n) “Order” means any order,
decision, writ, injunction, decree, judgment, legal or arbitration award, stipulation, license, permit or agreement issued, promulgated or entered into by or with (or settlement or consent agreement subject to) any Governmental Entity. 

(o) “Organizational Documents” shall mean (i) with respect to Holdco I, this Agreement, the TAM Shareholders
Agreement 

  
 15 

 
and the Holdco I By-Laws and (ii) with respect to TAM and its Subsidiaries, this Agreement and the TAM Shareholders Agreement and the by-laws or other comparable governing documents of such
Persons. 
 (p) “Person” means any natural person, firm, corporation, partnership, company, limited
liability company, joint venture, association, trust, unincorporated organization, Governmental Entity or other entity. 
 (q)
“Related Party” means (a) any Person that, individually or jointly with other(s), directly or indirectly (i) controls Holdco I or any of its Subsidiaries; (ii) is controlled by Holdco I or any of its
Subsidiaries; or (iii) is controlled by any Person that controls, individually or jointly with other(s), Holdco I or any of its Subsidiaries; (b) any successor of the controlling shareholder of Holdco I or any of its Subsidiaries, in the
event of dissolution, capital decrease by the delivery of shares to shareholders, spin-off and any other corporate transaction; and (c) any board member, officer or manager of the companies mentioned above. 

(r) “Representatives” with respect to any Person, shall mean the directors, officers, employees, auditors,
accountants, legal counsel, financial advisors and other agents or representatives of or to such Person and its Subsidiaries. 

(s) “Subsidiary” means, with respect to any Person, (i) a corporation in which such Person, together with
its Subsidiaries, beneficially owns Voting Securities of such corporation which entitle them, collectively, to cast more than 50% of all the votes entitled to be cast by the holders of all Voting Securities of such corporation then outstanding in a
general election of directors of such corporation or (ii) any Person that is not a corporation in which such Person, and/or one or more other Subsidiaries of such Person, directly or indirectly, has a majority equity or voting interest or the
power to direct the policies, management and affairs thereof. 
 (t) “U.S. Exchange Act” shall mean the
U.S. Securities Exchange Act of 1934. 
 (u) “Voting Securities” means, with respect to any Person, any
securities or other equity or ownership interests in such Person which are entitled to vote generally in the election of directors of such Person (or, if such Person is not a corporation, the individuals who perform a similar function for such
Person). 
 SECTION 4.05 Severability. The provisions of this Agreement shall be deemed severable and the invalidity
or unenforceability of any provision shall not affect the validity or enforceability of the other provisions of this Agreement. If any provision of this Agreement, or the application of such provision to any Person or any circumstance, is invalid or
unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of
this Agreement and the application of such provision to other Persons or circumstances shall not be affected by 

  
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such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application of such provision, in any other
jurisdiction. 
 SECTION 4.06 Amendment; Waiver. This Agreement may be amended and any performance, term or
condition waived in whole or in part only by a writing signed by all Parties affected by the amendment (in the case of an amendment) or by the Party against whom the waiver is to be effective (in the case of a waiver). No failure or delay by any
Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any singular partial exercise of such right, power or privilege preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. Waiver by any Party of any breach or failure to comply with any provision of this Agreement by another Party shall not be construed as, nor shall constitute, a continuing waiver of such provisions, or a waiver of any other
breach of or failure to comply with any other provisions of this Agreement. 
 SECTION 4.07 Assignment. Subject to
the provisions of Section 3.01 and the Control Group Shareholders Agreement, neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, in whole or in part, by operation of Law or otherwise by any of the
Parties without the prior written consent of the other Parties, and any purported assignment without such consent shall be null and void and of no force or effect. Subject to the preceding sentence, this Agreement will be binding upon, inure to the
benefit of, and be enforceable by, the Parties and their respective successors and permitted assigns. 
 SECTION 4.08 No
Third-Party Beneficiaries. Except as otherwise expressly stated herein, the Parties hereby agree that the agreements and covenants set forth herein are solely for the benefit of the other Parties in accordance with, and subject to the terms of,
this Agreement and that this Agreement is not intended to, and does not, confer upon any Person other than the Parties any rights or remedies hereunder, including the right to rely upon the representations and warranties set forth herein.

 SECTION 4.09 After-Acquired Holdco I Voting Stock. All of the provisions of this Agreement shall apply to all
shares of Holdco I Voting Stock now owned by any Shareholder and to all shares of Holdco I Voting Stock which may be issued or transferred hereafter to any Shareholder in consequence of any additional issuance, purchase, exchange, or
reclassification of shares, corporate reorganization, or any other form of recapitalization, or consolidation, merger, amalgamation or share split, or share dividend, or which are acquired by any Shareholder in any other manner. 

  
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 SECTION 4.10 Notices. All notices, requests, claims, demands, instructions and
other communications or documents given hereunder shall be in writing and shall be delivered personally or sent by registered or certified mail (postage prepaid), facsimile or overnight courier to the Parties at the following addresses (or at such
other address for a Party as shall be specified by like notice): 
 If to LATAM, to: 

Claro y Cia. 

Apoquindo 3721, piso 13, 
 Santiago, Chile 
 Attention: José María Eyzaguirre B. 

Fax: +56 2 367 3003 
 jmeyzaguirre@claro.cl 
 with copies (which shall not constitute notice) to:

 Sullivan & Cromwell LLP 
 125 Broad Street 
 New York, NY 10004 

United States of America 
 Attention: Sergio Galvis and Duncan McCurrach 
 Fax: +1 212 558 3588 

galviss@sullcrom.com 
 mccurrachd@sullcrom.com 
 If to Holdco I or TEP to: 

Turci Advogados 

Rua Dr. Renato Paes de Barros, 778 
 -1° andar – cj.12 
 04530-0001 
 São Paulo – SP 

Brasil 

Attention: Flavia Turci 
 Fax: +55 11 2177 2197 
 turci@turci.com 

with a copy (which shall not constitute notice) to: 
 Clifford Chance US LLP 
 31 West 52nd Street 

New York, NY 10019 
 Attention: Sarah Jones and Anand Saha 
 Fax: +1 212 878 8375 

Sarah.Jones@CliffordChance.com 
 Anand.Saha@CliffordChance.com 
 Any notice, request, claim, instruction or other
communication or document given as provided above shall be deemed given to the receiving party (i) if delivered personally, upon actual receipt, (ii) if sent by registered or certified mail, three business days after deposit in the mail,
(iii) if sent by facsimile, upon confirmation of successful transmission if within one business day after such facsimile has been sent such notice, request, claim, instruction or other communication or document is also given by one of the other
methods described above and (iv) if sent by overnight courier, on the next business day after deposit with the overnight courier. 

  
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 SECTION 4.11 Specific Enforcement; Consent to Jurisdiction. The Parties agree
that irreparable damage would occur and that the Parties would not have any adequate remedy at Law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, this being in addition to any other remedy to which
they are entitled at Law or in equity, without the necessity of proving the inadequacy of monetary damages or of posting bond or other undertaking, as a remedy and to obtain injunctive relief against any breach or threatened breach hereof. In the
event that any Action is brought in equity to enforce the provisions of this Agreement, no Party shall allege, and each Party waives the defense or counterclaim that there is an adequate remedy at Law. Each of the Parties hereby irrevocably consents
and submits itself to the personal jurisdiction of the courts of the State of New York and the federal courts of the United States of America located in the Borough of Manhattan, The City of New York (collectively, the “Agreed
Courts”) solely in respect of the interpretation and enforcement of the provisions of this Agreement, and the documents referred to herein and the transactions contemplated by this Agreement (collectively, the “Agreed
Issues”), waives, and agrees not to assert, as a defense in any Action, suit or proceeding in an Agreed Court with respect to the Agreed Issues that such Party is not subject thereto or that such Action, suit or proceeding may not be
brought or is not maintainable in such Agreed Court or that the venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such Agreed Court, and the Parties irrevocably agree that all claims with
respect to any Action, suit or proceeding with respect to the Agreed Issues shall be heard and determined only in an Agreed Court. The Parties hereby consent to and grant to each Agreed Court jurisdiction over the Person of such parties and, to the
extent permitted by Law, over the subject matter of any dispute with respect to the Agreed Issues and agree that mailing of process or other papers in connection with any such Action or proceeding in the manner provided in Section 4.10 or in
such other manner as may be permitted by Law shall be valid and sufficient service thereof. 
 SECTION 4.12 WAIVER OF
JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (I) CERTIFIES THAT
IT HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND MADE IT VOLUNTARILY AND THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR
PROCEEDING, SEEK 

  
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TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND
CERTIFICATIONS IN THIS SECTION 4.12. 
 SECTION 4.13 Counterparts. This Agreement may be executed in one or
more counterparts (including by facsimile), each of which shall be considered an original instrument and all of which shall together constitute the same agreement. This Agreement shall become effective when one or more counterparts have been signed
by each of the Parties and delivered to the other Parties. 
 SECTION 4.14 Interpretation. When a reference is made
in this Agreement to an Article, Section, Exhibit or Schedule, such reference shall be to an Article of, a Section of, or an Exhibit or Schedule to this Agreement unless otherwise indicated. The table of contents and headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall
be deemed to be followed by the words “without limitation”. The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement. All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions
contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. Any contract, instrument or Law defined or referred to herein or
in any contract or instrument that is referred to herein means such contract, instrument or Law as from time to time amended, modified or supplemented, including (in the case of contracts or instruments) by waiver or consent and (in the case of
Laws) by succession of comparable successor Law and references to all attachments thereto and instruments incorporated therein. References to a Person are also to its permitted successors and assigns. Except as otherwise expressly provided herein,
all remedies provided herein shall be in addition to any other remedies that the Parties may otherwise have under applicable Law. Any reference in this Agreement to a “day” or a number of “days” (without the explicit
qualification of “business”) shall be interpreted as a reference to a calendar day or number of calendar days. This Agreement is the product of negotiation by the Parties having the assistance of counsel and other advisers, and the Parties
and their counsel and other advisers having participated jointly in negotiating and drafting this Agreement. If an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties,
and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement. 
 SECTION 4.15 Filing Requirement. A copy of this Agreement shall be filed at the headquarters of LATAM and Holdco I for all purposes of applicable Law. 

  
 20 

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

			
	LAN AIRLINES S.A.
		
	By:	 	  

		 	Name:
		 	Title:
	
	HOLDCO I S.A.
		
	By:	 	  

		 	Name:
		 	Title:
	
	TEP CHILE S.A.
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Holdco I Shareholders Agreement] 

  
 21 

 EXHIBIT A 
 LATAM Group Ownership Structure and Organizational Structure 
  

 

 EXHIBIT B 
 By-laws of Holdco IShareholders Agreement, dated as of _________, 2012

 Exhibit 10.11 
 FORM OF EXECUTION VERSION 
  
 SHAREHOLDERS AGREEMENT 
 Among 

LAN AIRLINES S.A., 
 TAM S.A., 
 TEP CHILE S.A. 

and 

HOLDCO I S.A. 
 Dated as of                         , 2012 

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	
	ARTICLE I	  
	
	GOVERNANCE OF TAM	  
			
	SECTION 1.01	 	Scope of the Agreement	  	 	1	  
	SECTION 1.02	 	Role and Composition of the TAM Board	  	 	2	  
	SECTION 1.03	 	Removal and Vacancies	  	 	2	  
	SECTION 1.04	 	Enabling Provisions	  	 	3	  
	SECTION 1.05	 	TAM Chairman	  	 	3	  
	SECTION 1.06	 	Meetings of the TAM Board	  	 	3	  
	SECTION 1.07	 	Quorum	  	 	4	  
	SECTION 1.08	 	TAM Board Voting Requirements	  	 	4	  
	SECTION 1.09	 	Board Supermajority Matters	  	 	4	  
	SECTION 1.10	 	Shareholder Required Vote	  	 	6	  
	SECTION 1.11	 	Shareholder Supermajority Matters	  	 	6	  
	SECTION 1.12	 	TAM Subsidiaries	  	 	6	  
	SECTION 1.13	 	Required Actions	  	 	7	  
	
	ARTICLE II	  
	
	TAM GROUP DIRETORIA	  
			
	SECTION 2.01	 	Role of Management	  	 	8	  
	SECTION 2.02	 	TAM Chief Executive Officer	  	 	8	  
	SECTION 2.03	 	TAM Chief Financial Officer	  	 	9	  
	SECTION 2.04	 	Other Members of the TAM Diretoria	  	 	9	  
	SECTION 2.05	 	TAM Linhas Aereas S.A.	  	 	9	  
	
	ARTICLE III	  
	
	ACCOUNTING, BOOKS AND RECORDS	  
			
	SECTION 3.01	 	Fiscal Year	  	 	10	  
	SECTION 3.02	 	Accountants	  	 	10	  
	SECTION 3.03	 	Financial Statements	  	 	10	  
	SECTION 3.04	 	Books and Records	  	 	10	  
	SECTION 3.05	 	Access to Information, Audit and Inspection	  	 	11	  
	SECTION 3.06	 	Annual Budget and Business Plan	  	 	12	  
	
	ARTICLE IV	  
	
	GENERAL PROVISIONS	  
			
	SECTION 4.01	 	Term of Agreement	  	 	13	  

  
 - i -

							
	SECTION 4.02	 	Fees and Expenses	  	 	13	  
	SECTION 4.03	 	Governing Law	  	 	13	  
	SECTION 4.04	 	Definitions	  	 	13	  
	SECTION 4.05	 	Severability	  	 	16	  
	SECTION 4.06	 	Amendment; Waiver	  	 	16	  
	SECTION 4.07	 	Assignment	  	 	16	  
	SECTION 4.08	 	No Third-Party Beneficiaries	  	 	16	  
	SECTION 4.09	 	Notices	  	 	17	  
	SECTION 4.10	 	Specific Enforcement; Consent to Jurisdiction	  	 	18	  
	SECTION 4.11	 	WAIVER OF JURY TRIAL	  	 	18	  
	SECTION 4.12	 	Counterparts	  	 	19	  
	SECTION 4.13	 	Interpretation	  	 	19	  
	SECTION 4.14	 	Filing Requirement	  	 	19	  
			
	Schedule 4.06	 	Annual Budget and Business Plan Requirements	  			

 INDEX OF DEFINED TERMS 

 

					
	 	  	Page	 
		
	Accountants	  	 	10	  
	Actions	  	 	13	  
	Affiliate	  	 	13	  
	Agreed Courts	  	 	18	  
	Agreed Issues	  	 	18	  
	Agreement	  	 	1	  
	Airline Subsidiaries	  	 	6	  
	Annual Budget and Business Plan	  	 	12	  
	Approved Plans	  	 	4	  
	beneficial ownership	  	 	14	  
	board member	  	 	14	  
	Board Representative Election Notice	  	 	2	  
	Board Representatives	  	 	2	  
	Board Supermajority Matter	  	 	4	  
	business day	  	 	14	  
	contract	  	 	14	  
	Control	  	 	14	  
	Convertible Securities	  	 	14	  
	Departure	  	 	2	  
	Effective Time	  	 	2	  
	Equity Securities	  	 	14	  
	Fiscal Year	  	 	10	  
	Foreign Ownership Control Laws	  	 	14	  
	Governmental Entity	  	 	14	  
	Holdco I	  	 	1	  
	IFRS	  	 	10	  
	LATAM	  	 	1	  
	LATAM Group	  	 	14	  
	Law	  	 	15	  
	Majority Board Vote	  	 	4	  

					
	 	  	Page	 
		
	Multi- Year Business Plan	  	 	12	  
	Order	  	 	15	  
	Organizational Documents	  	 	15	  
	Parties	  	 	1	  
	Person	  	 	15	  
	Related Party	  	 	15	  
	Representatives	  	 	15	  
	Shareholder Supermajority Matter	  	 	6	  
	Shareholders	  	 	1	  
	Subsidiary	  	 	15	  
	Supermajority Board Vote	  	 	4	  
	Supermajority Shareholder Vote	  	 	6	  
	TAM	  	 	1	  
	TAM Board	  	 	2	  
	TAM CCO	  	 	9	  
	TAM CEO	  	 	8	  
	TAM CFO	  	 	9	  
	TAM Chairman	  	 	3	  
	TAM Company	  	 	4	  
	TAM COO	  	 	9	  
	TAM Diretoria	  	 	8	  
	TAM Group	  	 	8	  
	TAM Ordinary Stock	  	 	1	  
	TAM Preferred Stock	  	 	1	  
	TAM Stock	  	 	1	  
	Tax Return	  	 	11	  
	TEP	  	 	1	  
	U.S. Exchange Act	  	 	15	  
	Voting Securities	  	 	15	  

 
 

 SHAREHOLDERS AGREEMENT, dated as of
                        , 2012 (this “Agreement”), among LAN AIRLINES S.A., a company organized under the
Law of Chile (“LATAM”), HOLDCO I S.A., a company organized under the Law of Chile (“Holdco I” and, together with LATAM, the “Shareholders”), TEP Chile S.A., a company organized
under the Law of Chile (“TEP”), and TAM S.A., a company organized under the Law of Brazil (“TAM” and, together with the Shareholders and TEP, the “Parties”). 

W I T N E S S E T H 

WHEREAS, as of the Effective Time (as defined below), Holdco I will own 100% of the shares of ordinary stock, no par value (the
“TAM Ordinary Stock”), of TAM and LATAM will own 100% of the shares of the non-voting preferred stock, no par value (the “TAM Preferred Stock” and, together with the TAM Ordinary Stock, the
“TAM Stock”), of TAM, which collectively will constitute all of the issued and outstanding shares of capital stock of TAM; 
 WHEREAS, as of the Effective Time, TEP and LATAM collectively will own 100% of the outstanding voting shares of Holdco I; 
 WHEREAS, the Parties desire to enter into this Agreement to set forth the terms and conditions upon which they have agreed to hold their shares of TAM Stock, including with respect to the voting thereof,
as well as their agreements with respect to governance, management and operation of TAM and its Subsidiaries and certain other matters; and 
 WHEREAS, each of LATAM and Holdco I has determined and declared that the execution and delivery of this Agreement is in its best interests, and the execution, delivery and performance of this Agreement by
it have been duly authorized by its board of directors and all other necessary corporate action on the part of it. 
 NOW,
THEREFORE, in consideration of the covenants and agreements contained herein and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows: 

ARTICLE I 

GOVERNANCE OF TAM 
 SECTION 1.01 Scope of the Agreement; Effective Time. The Parties desire to set forth in this Agreement certain terms and conditions upon which the shares of TAM Stock will be held,
including with respect to the voting thereof, as well as their agreements with respect to governance, management and operation of TAM and its Subsidiaries and certain other matters. In the event of any inconsistency or conflict between the
provisions of this Agreement and the other Organizational Documents of TAM or any of its Subsidiaries, this Agreement shall control and the Parties shall use their commercially reasonable efforts to amend any such Organizational Documents to conform
to the 

 
provisions of this Agreement and to exercise their rights under such Organizational Documents to give effect to such provisions. This Agreement shall become effective only if, and at that time at
which, Holdco I becomes a holder of at least 80% of the outstanding shares of TAM Ordinary Stock (the “Effective Time”). All actions required to be taken or performed under this Agreement shall be taken or performed in
accordance with applicable Law. 
 SECTION 1.02 Role and Composition of the TAM Board. The business and affairs of
TAM shall be managed under the direction of the board of directors of TAM (the “TAM Board”) in accordance with the applicable provisions of the Organizational Documents of TAM. The TAM Board shall be comprised of six
board members to be elected by Holdco I. Holdco I agrees to elect two individuals selected by LATAM and four individuals selected by TEP as the six board members of TAM (each person so selected by LATAM or TEP is referred to herein as one of their
“Board Representatives”). The term of office for the board members of TAM shall be two years. If at any time LATAM is permitted under applicable Law to select more than two Board Representatives on the TAM Board, then LATAM
shall have the right, exercisable in its sole discretion, in whole or in part, at any time or from time to time, to cause Holdco I to elect additional Board Representatives to the TAM Board by providing written notice of such election to Holdco I
(each, a “Board Representative Election Notice”); provided, however, that notwithstanding the foregoing LATAM shall not have the right to deliver any Board Representative Election Notice that would result in it
selecting half or a majority of the members of the TAM Board unless at such time LATAM is permitted under applicable Law in Brazil and other applicable Law to own a majority of the outstanding voting shares of Holdco I. Promptly following delivery
of any Board Representative Election Notice to Holdco I, Holdco I shall cooperate with LATAM and shall take or cause to be taken all actions (including by calling a special meeting of shareholders of TAM to elect the additional individuals selected
by LATAM for election to the TAM Board), and do or cause to be done all things reasonably necessary, proper or advisable on its part under the other Organizational Documents of TAM and applicable Law to permit LATAM to increase its representation on
the TAM Board pursuant to this Section 1.02. Without limitation of the foregoing, Holdco I agrees to cause one or more of TEP’s Board Representatives to resign from the TAM Board promptly following request therefor from LATAM in order to
effectuate the purpose of this Section 1.02. 
 SECTION 1.03 Removal and Vacancies. In the event of any vacancy
on the TAM Board resulting from the resignation, incapacity, retirement, death or removal (each, a “Departure”) of any Board Representative of LATAM or TEP, such party shall have the right to select another individual to
replace such Board Representative on the TAM Board. In such event, Holdco I shall cause a special meeting of the shareholders of TAM to be held to elect such replacement to the TAM Board and at such meeting shall elect such replacement to the TAM
Board to serve until the next annual meeting of the shareholders of TAM. If at any time any Board Representative of LATAM or TEP ceases to be a board member of Holdco I, Holdco I shall promptly cause him or her to resign or to be removed from the
TAM Board and Holdco I will replace such Board Representative on the TAM Board pursuant to the foregoing procedures. 

  
 2 

 SECTION 1.04 Enabling Provisions. 

(a) Holdco I agrees that it shall vote, or cause to be voted or execute written consents for, as the case may be, all shares of TAM
Ordinary Stock beneficially owned by it, and shall take all other action reasonably necessary (including by causing TAM to call a special meeting of shareholders or the TAM Chairman to call a special meeting of the TAM Board, as applicable) so as to
give effect to the agreements with respect to representation on the TAM Board contained in this Article I and to ensure that the by-laws of TAM (i) facilitate, enable and do not at any time conflict with any provision of this Agreement and
(ii) permit each of LATAM and TEP to receive the full benefits to which it is entitled under this Agreement. Holdco I further agrees that it shall not take any action directly as a shareholder of TAM, and each of LATAM and TEP agree it shall
not take any action indirectly through any of its Board Representatives, or otherwise that would contravene or frustrate the implementation of these agreements. Each of LATAM and TEP shall cause all of its Board Representatives, and Holdco I shall
cause each board member of TAM, to act at all times in conformity with, and to take such action as may reasonably be required of and available to them to ensure the fulfillment of, the terms of this Agreement and the by-laws of TAM. TAM agrees not
to take any action that would conflict with or subvert the operation or enforcement of any provision of this Agreement or that would impede any party’s ability to receive the full benefits to which such party is entitled under this Agreement.

 (b) Holdco I shall cause any and all shares of TAM Ordinary Stock beneficially owned by it and entitled to vote at any
meeting of shareholders of TAM to be present in person or represented by proxy at all annual and special meetings of shareholders of TAM to the extent necessary so that all shares of TAM Ordinary Stock beneficially owned by it shall be counted as
present for the purpose of determining the presence of a quorum at such meeting. Each party agrees to execute from time to time in the future any document or documents required by Law to keep the agreements contained in this Section 1.04 in
full force and effect at all times throughout the term of this Agreement. 
 SECTION 1.05 TAM Chairman. For so long
as TEP is entitled to select at least one individual to be elected as a board member of TAM, TEP shall have the right to designate from time to time one of its Board Representatives to serve as the chairman of the TAM Board (the “TAM
Chairman”). After any such designation, Holdco I shall cause the TAM Board to appoint such Board Representative as the TAM Chairman in accordance with the Organizational Documents of TAM. From and after the Effective Time until the
second anniversary of the Effective Time, the TAM Chairman shall be Maria Cláudia Oliveira Amaro. In no event shall the TAM Chairman have a casting vote with respect to any matter before the TAM Board. 

SECTION 1.06 Meetings of the TAM Board. Regular meetings of the TAM Board shall be held on a monthly basis. Special meetings
of the TAM Board may be called by the TAM Chairman on not less than 48 hours’ notice to each board member of TAM, and such meetings shall be called by the TAM Chairman with like notice and like manner 

  
 3 

 
promptly after receipt of a written request for a special meeting of the TAM Board by any one board member of TAM; provided, however, that notwithstanding the foregoing a special meeting
of the TAM Board may be so called on any shorter notice permitted by applicable Law if necessary or desirable in the particular circumstances. 
 SECTION 1.07 Quorum. The quorum for any meeting of the TAM Board to be validly held shall be five board members of TAM. 

SECTION 1.08 TAM Board Voting Requirements. Each board member of TAM shall have one vote on all matters before the TAM Board.
Any action by the TAM Board concerning a Board Supermajority Matter as well as any other action required by applicable Law or this Agreement to be approved by board members of TAM constituting more than a simple majority of the board members of TAM
must be approved by the affirmative vote of five board members of TAM at a duly called meeting of the TAM Board at which a quorum is present and acting throughout (each, a “Supermajority Board Vote”). All actions by the TAM
Board other than with respect to Board Supermajority Matters must be approved by the affirmative vote of a simple majority of the board members of TAM at a duly called meeting of the TAM Board at which a quorum is present and acting throughout
(each, a “Majority Board Vote”). 
 SECTION 1.09 Board Supermajority Matters.
Notwithstanding any provision of this Agreement or the other Organizational Documents of TAM or any of its Subsidiaries to the contrary, neither TAM nor any of its Subsidiaries shall, and TAM shall not permit any of its Subsidiaries to, engage in or
take, directly or indirectly, any of the following actions (each, a “Board Supermajority Matter”), unless approved by a Supermajority Board Vote: 
 (i) to approve the Annual Budget and Business Plan and the Multi-Year Business Plan as well as any amendment to any of the foregoing (collectively, to the extent so approved, the “Approved
Plans”); 
 (ii) take any action or agree to take any action that, individually or in the aggregate, causes or is
reasonably likely to cause any capital, operating or other expense of TAM or any of its Subsidiaries (TAM and each such Subsidiary, a “TAM Company”) to be greater than (A) with respect to any action that would affect the
profit and loss statement, the lesser of 1% of revenue or 10% of profit as set forth in the Approved Plans then in effect or (B) with respect to any action that affects the cash flow statement, the lesser of 2% of assets or 10% of cash and cash
equivalents (as defined by IFRS) as set forth in the Approved Plans then in effect; 
 (iii) to create (including by the
acquisition of shares), dispose of or admit new shareholders to any Subsidiary of any TAM Company, except to the extent expressly contemplated in the Approved Plans then in effect; 

(iv) to approve the acquisition, disposal, modification or encumbrance by any TAM Company of (a) any Equity Securities or
Convertible Securities 

  
 4 

 
of any TAM Company or any other companies, consortia, joint ventures or group of companies, or (b) any other asset with a value greater than US$15,000,000, in each case except to the extent
expressly contemplated in the Approved Plans then in effect; 
 (v) to approve investments in any assets not related to the
corporate purpose of any TAM Company, except to the extent expressly contemplated in the Approved Plans then in effect; 
 (vi)
to execute any kind of agreement or to enter into any kind of transaction in an amount greater than US$15,000,000, except to the extent expressly contemplated in the Approved Plans then in effect; 

(vii) to execute any kind of agreement or to enter into any kind of transaction, agreement or arrangement related to revenue or profit
sharing agreements and any other agreement for the implementation of joint ventures or business collaborations, alliance memberships, codesharing agreements or other arrangements of such nature whatsoever, except to the extent expressly contemplated
in the Approved Plans then in effect; 
 (viii) to terminate, modify or waive any rights or claims of any TAM Company under
contracts or other arrangements in any amount greater than US$15,000,000, except to the extent expressly contemplated in the Approved Plans then in effect; 
 (ix) to commence, participate in, compromise or settle any material action with respect to any litigation, judicial, administrative or arbitration proceeding relating to any TAM Company, in an amount
greater than US$15,000,000, except to the extent expressly contemplated in the Approved Plans then in effect; 
 (x) to approve
the execution, amendment, termination or ratification of acts or agreements with Related Parties, except to the extent expressly contemplated in the Approved Plans then in effect; 

(xi) to approve the financial statements of any TAM Company or any amendments thereto or any dividend, accounting and tax policy or
principles of any TAM Company, as well as the appointment and removal of the Accountants; 
 (xii) to approve the grant of any
kind of security interest or guarantees to secure obligations of third parties (including Related Parties); 
 (xiii) to
appoint any executive other than the TAM Diretoria or to re-elect the then current TAM CEO or TAM CFO; and 
 (xiv)
approve any vote to be cast by any TAM Company in the shareholders meetings, quotaholder meetings and board meetings of its Subsidiaries, including approval of any of the matters set forth in Section 1.11 involving any Subsidiary of TAM (being
any reference to TAM thereunder applicable to the respective TAM Company). 

  
 5 

 SECTION 1.10 Shareholder Required Vote. Any action by the shareholders of TAM
concerning a Shareholder Supermajority Matter as well as any other action required by applicable Law or this Agreement to be approved by more than a simple majority of the holders of the then issued and outstanding shares of TAM Ordinary Stock or
TAM Stock must be approved by the affirmative vote of the holders of shares representing at least 85% of the total number of shares of TAM Ordinary Stock or TAM Stock, as the case may be, then issued and outstanding at a duly called meeting of the
shareholders of TAM at which a quorum is present and acting (each, a “Supermajority Shareholder Vote”). All actions other than Shareholder Supermajority Matters must be approved by the affirmative vote of the holders of
shares constituting a simple majority of the issued and outstanding shares of TAM Ordinary Stock at a duly called meeting of the shareholders of TAM at which a quorum is present and acting throughout. 

SECTION 1.11 Shareholder Supermajority Matters. Notwithstanding any provision of this Agreement or the Organizational
Documents of TAM or any of its Subsidiaries to the contrary, neither TAM nor any of its Subsidiaries shall, and TAM shall not permit any of its Subsidiaries to, engage in or take, directly or indirectly, any of the following actions unless approved
by a Supermajority Shareholder Vote (each, a “Shareholder Supermajority Matter”): 
 (i) to approve any
amendments to the by-laws of any TAM Company in respect of the following matters: (A) the corporate purpose, (B) the corporate capital, (C) the rights inherent to each class of shares and to the shareholders of any TAM Company,
(D) the attributions of the shareholders regular meetings or any limitation to attributions of the board of directors of any TAM Company, (E) increase or decrease in the number of board members and officers of any TAM Company, (F) the
term of any TAM Company, (G) the change of the corporate headquarters of any TAM Company, (H) preemptive rights, (I) the composition, attributions and liabilities of the management of any TAM Company, and (J) dividends and other
distributions; 
 (ii) to approve the dissolution, liquidation and winding up of TAM; 

(iii) to approve the transformation, merger, spin-up, or any kind of corporate reorganization of TAM; 

(iv) to pay or distribute dividends or any other kind of distributions, including interest on capital, to the shareholders of TAM; and

 (v) to approve the issuance, redemption or amortization of any debt securities, Equity Securities or Convertible Securities
into shares of TAM. 
 SECTION 1.12 TAM Subsidiaries. 

(a) Airline Subsidiaries. With respect to each Subsidiary of TAM that is subject to the Foreign Ownership Control Laws
(collectively, “Airline Subsidiaries”), 

  
 6 

 
all provisions relating to the governance and operations of such Subsidiary shall be identical to the provisions contained herein relating to the governance and operations of TAM, including, in
the case of any such Subsidiaries that are managed by a board of directors, the provisions governing the composition and operation of such boards of directors (excluding those provisions relating to the dates for and frequency of meetings and
actions requiring a Supermajority Board Vote or a Supermajority Shareholder Vote). 
 (b) Other Subsidiaries. Except as
otherwise specified in this Section 1.12(b), with respect to each Subsidiary of TAM other than an Airline Subsidiary, the provisions relating to the governance and operations of such Subsidiary shall be identical to the provisions contained
herein relating to the governance and operations of TAM, including, in the case of any such Subsidiaries that are managed by a board of directors, the provisions governing the composition and operation of such boards of directors (excluding those
provisions relating to the dates for and frequency of meetings and actions requiring a Supermajority Board Vote or a Supermajority Shareholder Vote). With respect to any such Subsidiaries that are wholly-owned by TAM, the board of directors of any
such Subsidiary shall be comprised of an equal number of board members of such Subsidiary selected by each of LATAM and TEP and all actions of the board of directors of any such Subsidiary must be approved by the affirmative vote of a majority of
the board members of such Subsidiary thereof at a duly called meeting of such board of directors at which a quorum is present and acting throughout. With respect to any such Subsidiary that is not wholly owned by TAM, each of LATAM and TEP shall
have the right to elect an equal number of board members of any such Subsidiary (unless TAM and/or its Subsidiaries have the right to elect an odd number of board members of such Subsidiary, in which case LATAM shall have the right to select the
last board member), and the board members elected to any such Subsidiary shall not take any action unless and until all of such board members selected by LATAM and TEP have been elected and agree to take such action. 

(c) Notwithstanding the foregoing provisions of this Section 1.12, if any requirement in clause (a) or (b) in this
Section 1.12 would conflict with applicable Law as it applies to any Subsidiary of TAM or materially limit the business or operations of any such Subsidiary, then the Shareholders shall discuss and agree how to modify such requirements in
respect of such Subsidiary in order to comply with Law or avoid such material limitation. 
 SECTION 1.13 Required
Actions. Each of TAM and each of its Subsidiaries shall exercise all rights it has as a shareholder of each of its respective Subsidiaries in an effort to cause such Subsidiary to comply with the requirements of this Agreement; provided,
however, that the foregoing sentence shall not be construed to require TAM or any of its Subsidiaries to take, and in exercising such rights none of them will take, any action that would cause any board member of each such respective
Subsidiary to breach his or her fiduciary duties. 

  
 7 

 ARTICLE II 
 TAM GROUP DIRETORIA 
 SECTION 2.01 Role of
Management. 
 (a) Management of TAM. The day-to-day business and affairs of TAM shall be managed by the TAM
Diretoria (as defined below) under the oversight of the TAM Board. The Diretoria of TAM shall be comprised of the TAM CEO, the TAM CFO, the TAM COO and the TAM CCO (collectively, the “TAM
Diretoria”). The term of office for each of the members of the TAM Diretoria shall be two years. 
 SECTION 2.02 TAM Chief Executive Officer. As of the Effective Time, Marco Bologna will be the chief executive officer (Diretor Presidente) of TAM and its Subsidiaries (collectively, the
“TAM Group”, and such chief executive officer, the “TAM CEO”). The TAM CEO shall have general supervision, direction and control of the business and operations of the TAM Group and shall carry out all
orders and resolutions of the TAM Board. Without limitation of the foregoing, the TAM CEO shall have the following responsibilities: 
 (i) conducting the day-to-day management of the TAM Group; 
 (ii)
serving as the company officer of the TAM Group and as the representative of the LATAM Group before all Governmental Entities in Brazil, including the Brazilian government and National Civil Aviation Agency of Brazil (Agência Nacional de
Aviação, or ANAC); 
 (iii) together with the chief executive officer (Vice Presidente
Ejecutivo) of LATAM and the chief operating officer (Gerente General) of LATAM, implementing the integration of LATAM and its Subsidiaries and TAM and its Subsidiaries; and 

(iv) serving as a senior participant in all business unit and function committees of the LATAM Group. 

The term of the TAM CEO shall be two years. Subject to Section 1.09(xiii), the TAM CEO shall be reelected at the end of his or her current term
unless a Departure of the TAM CEO occurs prior to the end of such current term. In the case of any election other than a re-election of the then current TAM CEO, TEP shall recommend to LATAM in writing three potential candidates for appointment by
the TAM Board as the TAM CEO. Any potential candidates for the office of the TAM CEO shall be recommended by, or shall have received a favorable evaluation from, one of the three then-leading executive search companies in Brazil. Prior to the next
regular meeting of the TAM Board, LATAM shall notify TEP and Holdco I in writing of its selection of one individual from among the list of three potential candidates provided by TEP for appointment as the TAM CEO, and promptly thereafter TEP and
LATAM shall each cause their respective Board Representatives, and Holdco I shall cause the board members of TAM, to approve the candidate as the next TAM CEO. 

  
 8 

 SECTION 2.03 TAM Chief Financial Officer. The TAM CFO shall be in charge of all
financial matters pertaining to TAM and its Subsidiaries and shall have such other duties as may be determined, from time to time, by the TAM Board or the TAM CEO. The TAM CFO shall report directly to the TAM CEO. Prior to the Effective Time, LATAM
and TEP shall agree upon the individual to serve as the initial chief financial officer of TAM (the “TAM CFO”). The term of the TAM CFO shall be two years. Subject to Section 1.09(xiii), the TAM CFO shall be reelected at
the end of his or her current term unless a Departure of the TAM CFO occurs prior to the end of such current term. In the case of any election other than the re-election of the then current TAM CFO, LATAM shall recommend to TEP in writing three
potential candidates for appointment by the TAM Board as the TAM CFO. Any potential candidates for the office of the TAM CFO shall be recommended by, or shall have received a favorable evaluation from, one of the three then-leading executive search
companies in Brazil and in selecting such candidates, LATAM shall be guided by the following principles: (a) alignment with the strongest performing leader, i.e., the best of breed; (b) maximization of synergy value capture;
(c) conforming to local regulations and culture; and (d) simplest and easiest execution. Prior to the next regular meeting of the TAM Board, TEP shall notify Holdco I and LATAM in writing of its selection of one individual from among the
list of three potential candidates provided by LATAM for appointment as the TAM CFO, and promptly thereafter each of LATAM and TEP shall each cause their respective Board Representatives, and Holdco I shall cause the board members of TAM, to vote to
approve the candidate as the next TAM CFO. 
 SECTION 2.04 Other Members of the TAM Diretoria. Prior to the
Effective Time, LATAM and TEP shall agree upon the individuals to serve as the initial chief operating officer of TAM (“TAM COO”) and the chief commercial officer of TAM (“TAM CCO”). From and after the
Effective Time, potential candidates for offices of each of the TAM COO and TAM CCO shall be jointly selected and recommended to the TAM Board by the TAM CEO and the TAM CFO and shall be approved by a Majority Board Vote of the TAM Board. LATAM and
TEP each agrees to cause their respective Board Representatives, and Holdco I agrees to cause the board members of TAM, to act through the relevant governing body to vote to approve the candidates for the offices of TAM COO and TAM CCO selected
jointly by the TAM CEO and the TAM CFO. 
 SECTION 2.05 TAM Linhas Aereas S.A. The Diretoria of TAM Linhas
Aereas S.A. shall be comprised of the same individuals who comprise the TAM Diretoria and two other officers who shall be selected and appointed in accordance with Section 2.04, mutatis mutandis. 

  
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 ARTICLE III 
 ACCOUNTING, BOOKS AND RECORDS 
 SECTION 3.01 Fiscal Year. The
fiscal year of TAM and its Subsidiaries shall end on December 31 in each year (the “Fiscal Year”). 

SECTION 3.02 Accountants. Unless and until removed or changed by Supermajority Board Vote, the independent public accountants
for the TAM Group shall be PricewaterhouseCoopers LLP (the “Accountants”). 
 SECTION 3.03
Financial Statements. From and after the Effective Time, TAM shall prepare and deliver (or cause to be prepared and delivered) to each Shareholder the following financial reports with respect to TAM and its Subsidiaries on a consolidated
basis and for Multiplus S.A. on a stand-alone basis: 
 (i) within five business days after the end of each
calendar month, monthly management reports in a format approved by the TAM Board; 
 (ii) within ten business
days after the end of any of the first three fiscal quarters of each Fiscal Year, an unaudited balance sheet as of the end of such fiscal quarter and the related unaudited statements of operations, changes in stockholders’ equity and cash flows
for the fiscal quarter then ended and for the period from the beginning of the then-current Fiscal Year to the end of such fiscal quarter, in each case with comparative statements for the prior Fiscal Year; and 

(iii) within thirty business days after the end of each Fiscal Year, an annual report, including (x) a balance sheet
as of the end of such Fiscal Year and the related consolidated statements of operations, changes in stockholders’ equity and cash flows for the Fiscal Year then-ended and audited in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board (“IFRS”) or such other accounting principles as the TAM Board may approve, in each case with comparative statements for the prior Fiscal Year, and (y) a discussion
of the implementation of the Approved Plans as it relates to business strategy, achievement of basic goals, revenues, expenses, executive compensation, capital expenditures, financing, insurance, cash flows, appointment of agents or advisers and
strategic alliances. 
 SECTION 3.04 Books and Records. 

(a) TAM shall keep, and shall cause each of its Subsidiaries to keep, in all material respects, at their respective principal offices,
full, complete and accurate books and records with respect to the business and affairs of the TAM Group. The books and records shall be maintained in a manner that provides Shareholders with sufficient information so as to permit (i) the
preparation of consolidated financial statements for TAM and its Subsidiaries and financial statements for Multiplus S.A. on a stand-alone basis, in each case in accordance with IFRS, (ii) the Shareholders to account for their

  
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interests in TAM and its Subsidiaries in their respective financial statements in accordance with IFRS, and (iii) the preparation of all required tax returns of TAM and its Subsidiaries and
of the Shareholders. 
 (b) TAM shall, as and when reasonably requested by any Shareholder, prepare and furnish (or cause to be
prepared and furnished) to such Shareholder, at the expense of TAM, such financial and other data concerning the business and affairs of the TAM Group as may be reasonably required by such Shareholder for tax, accounting, reporting, oversight, or
other legitimate business purposes of such Shareholder, such information to be prepared on the basis and in the format that such Shareholder may reasonably request in order to meet the requirements of its accounting, tax and oversight and reporting
systems or the requirements of Law. 
 (c) TAM shall, and shall cause each of its Subsidiaries to, retain for not less than ten
years and for such longer period as required by Law, all of their respective books and records (including the books and records of predecessor businesses, including those relating to periods prior to the Effective Time). 

SECTION 3.05 Access to Information, Audit and Inspection. 

(a) Each Shareholder and its Representatives shall have (and TAM shall cause its Subsidiaries to provide such Shareholder and its
Representatives with) full access at reasonable times and during normal business hours to all books and records for the TAM Group and their respective businesses (including those books and records pertaining to periods prior to the Effective Time),
including the right to examine and audit any of such books and records and to make copies and extracts therefrom. Each Shareholder shall bear all expenses incurred by it and its Representatives in making any such examination on its behalf. TAM
shall, and shall cause each of its Subsidiaries to, make arrangements for each Shareholder and its Representatives to have prompt access at reasonable times and during normal business hours to its officers, board members and employees to discuss the
business and affairs of the TAM Group and the books and records pertaining thereto. The provisions of this Section 3.05(a) shall survive any termination of this Agreement and shall continue to apply to TAM and its Subsidiaries and be
enforceable by any Shareholder regardless of whether such Shareholder ceases to beneficially own any shares of TAM Stock but only to the extent that such books and records and such access to officers, board members and other employees are reasonably
requested by a Shareholder in connection with any pending Action involving such Shareholder or any of its Affiliates insofar as such matter relates to the business or affairs of TAM and its Subsidiaries (including any matters relating to the
business and affairs of any predecessor businesses, including matters relating to periods prior to the Effective Time). 
 (b)
TAM shall provide each Shareholder with copies of each completed annual tax return required by Law to be filed by TAM or any of its Subsidiaries (each, a “Tax Return”) at least twenty business days prior to the due date
(including any extensions of such due date) of the filing of such Tax Return, and each Shareholder may review any such Tax Return prior to its filing with the appropriate Governmental Entity. TAM shall consult with the Shareholders and negotiate in
good faith 

  
 11 

 
to resolve any issues arising as a result of the Shareholders’ review of any such Tax Return. The Shareholders and TAM and its Subsidiaries shall use all reasonable good faith efforts to
resolve any issue in dispute as promptly as practicable but in any event prior to the due date for the filing of any such Tax Return. In the event that an issue resulting from the review by a Shareholder of any such Tax Return remains in dispute as
of the due date for the filing of such Tax Return, such Tax Return shall be filed with the appropriate Governmental Entity in accordance with the recommendation of the Accountants. 

SECTION 3.06 Annual Budget and Business Plan. 

(a) On or prior to October 31st of each calendar year, the TAM CEO and the TAM CFO shall prepare or cause to be prepared, and shall submit for
approval of the TAM Board, (i) a proposed annual budget and business plan (each, an “Annual Budget and Business Plan”) for the upcoming Fiscal Year and (ii) a proposed five-year business plan for the next five
Fiscal Years (each, a “Multi-Year Business Plan”), in each case for TAM and its Subsidiaries on a consolidated basis and for Multiplus S.A. on a stand-alone basis. Each of the proposed Annual Budget and Business Plan and
Multi-Year Business Plan shall include all of the applicable items set forth in Schedule 3.06 and be in a format acceptable to the TAM Board. 
 (b) The TAM Board shall convene a meeting within fifteen business days after receipt of the proposed Annual Budget and Business Plan and Multi-Year Business Plan for the upcoming Fiscal Year from the TAM
CEO to discuss whether and to what extent to approve each of the foregoing for the upcoming Fiscal Year. If all or any portion of any of the proposed Annual Budget and Business Plan or Multi-Year Business Plan is not approved in all respects by a
Supermajority Board Vote of the TAM Board at any such meeting of the TAM Board or any adjournment thereof, the TAM Chairman shall notify the TAM CEO in reasonable detail of the TAM Board’s objections to the proposed Annual Budget and Business
Plan and/or Multi-Year Business Plan, as the case may be, and within thirty days following the TAM CEO’s receipt of such notice, the TAM CEO and the TAM CFO shall collaborate with two board members of TAM, one selected by TEP and another
selected by LATAM, to modify such Annual Budget and Business Plan and/or Multi-Year Business Plan to address the comments and concerns of the TAM Board. Within ten business days after receipt of any revised Annual Budget and Business Plan and/or
Multi-Year Business Plan from the TAM CEO, the TAM Board shall convene a second meeting to discuss whether or not to approve the same. If the TAM Board does not approve the adoption of any such proposed Annual Budget and Business Plan and/or
Multi-Year Business Plan in its entirety because of disagreement on one or more line items set forth in the proposed Annual Budget and Business Plan and/or Multi-Year Business Plan, as the case may be, then the Multi-Year Business Plan for the
current Fiscal Year shall be deemed adopted as the Annual Budget and Business Plan for the upcoming Fiscal Year. 
 (c) The TAM
Board shall cause TAM and its Subsidiaries to operate in accordance with, and the officers and employees of TAM and its Subsidiaries to implement, any Annual Budget and Business Plan and Multi-Year Business Plan for the

  
 12 

 
then-upcoming Fiscal Year approved by a Supermajority Board Vote of the TAM Board and shall conduct, or cause to be conducted, the business of TAM and its Subsidiaries in accordance with any such
Annual Budget and Business Plan and/or Multi-Year Business Plan, as the case may be. 
 ARTICLE IV 

GENERAL PROVISIONS 
 SECTION 4.01 Term of Agreement. Except as otherwise provided under applicable Law, this Agreement shall continue in effect as to each of the Parties until (i) it is terminated as to any
Party by the written consent of all the Parties or (ii) with respect to any Shareholder, the first day on which such Shareholder no longer beneficially owns any shares of TAM Stock, whichever is sooner to occur. The termination of this
Agreement as to any Shareholder shall not affect any of the rights and obligations of any of the other Parties with respect to each other. In the event that this Agreement terminates as to any Shareholder, thereafter such Shareholder shall have no
further liability to the other Parties or to any of their respective shareholders, board members, officers, employees or other Affiliates and such other Parties shall have no further liability to such Shareholder, in each case solely in respect of
this Agreement; provided, however, that the foregoing shall not apply to any provisions hereof that expressly survive the termination of this Agreement (including Sections 3.05 and 4.02); and provided, further, that
nothing herein shall relieve any Party of any liability for any breach of this Agreement that occurred prior to such termination. 
 SECTION 4.02 Fees and Expenses. All fees and expenses incurred in connection with this Agreement shall be paid by the Party incurring such fees or expenses. The provisions of this
Section 4.02 shall survive any termination of this Agreement. 
 SECTION 4.03 Governing Law. THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF; PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE FOREGOING THE AUTHORIZATION AND EXECUTION
OF THIS AGREEMENT BY EACH PARTY SHALL BE GOVERNED BY THE LAW OF ITS JURISDICTION OF INCORPORATION. 
 SECTION 4.04
Definitions. For the purposes of this Agreement, the following terms shall have the meanings assigned below: 
 (a)
“Actions” means any actions, suits, claims, allegations, hearings, proceedings, arbitrations, mediations, audits, inquiries or investigations (whether civil, criminal, administrative or otherwise). 

(b) “Affiliate” shall have the meaning assigned to such term in Rule 12b-2 under the U.S. Exchange Act;
provided, however, that no Shareholder shall be deemed to be an Affiliate of any other Shareholder or any of its Affiliates solely by reason of this Agreement. 

  
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 (c) “beneficial ownership” (and its correlative phrases) shall have
the meanings assigned to such phrases in Rule 13d-3 promulgated under the U.S. Exchange Act (without taking into account any rights of such Person or any of its Affiliates under Section 1.04 hereof) if the references to “within 60
days” in Rule 13d-3(d)(1)(i) were omitted. 
 (d) “board member” shall mean, with respect to any
Person, any member of the board of directors (or comparable governing body) of such Person. 
 (e) “business
day” shall mean any day that is not a Saturday, Sunday or a day on which banking institutions are required or authorized by Law or executive order to be closed in Santiago, Chile or São Paulo, Brazil. 

(f) “contract” shall mean any loan, credit agreement, bond, debenture, note, mortgage, indenture, lease, supply
agreement, license agreement, development agreement or other contract, agreement, obligation, commitment or instrument or other legally binding arrangement or understanding, whether written or oral. 

(g) “Control” (and its correlative terms) shall have the meanings assigned to such terms in Rule 12b-2
promulgated under the U.S. Exchange Act. 
 (h) “Convertible Securities” means, with respect to any
Person, any securities, options, warrants or other rights of, or granted by, such Person or any of its Affiliates that are, directly or indirectly, convertible into, or exercisable or exchangeable for, any Equity Securities of such Person or any of
its Affiliates. 
 (i) “Equity Securities” means, with respect to any Person, any capital stock of, or
other equity interests in such Person. 
 (j) “Foreign Ownership Control Laws” shall mean any Law of
Brazil or of any other applicable jurisdiction that establishes limitations on equity ownership or control by foreign nationals in respect of a Brazilian carrier or a foreign airline which is a subsidiary of a Brazilian carrier. 

(k) “Governmental Entity” means any governmental, quasi-governmental or regulatory authority, body, department,
commission, board, bureau, agency, division, court, organized securities exchange or other legislative, executive or judicial governmental entity or instrumentality of any country, nation, republic, federation or similar entity or any state, county,
parish or municipality, jurisdiction or other political subdivision thereof. 
 (l) “LATAM Group” means
LATAM, Holdco I, TAM and their respective Subsidiaries. 

  
 14 

 (m) “Law” means any statute, common law, ordinance, rule,
regulation, agency requirement or Order of, or issued, promulgated or entered into by or with, any Governmental Entity. 
 (n)
“Order” means any order, decision, writ, injunction, decree, judgment, legal or arbitration award, stipulation, license, permit or agreement issued, promulgated or entered into by or with (or settlement or consent agreement
subject to) any Governmental Entity. 
 (o) “Organizational Documents” shall mean, with respect to TAM
and its Subsidiaries, this Agreement and the by-laws or other comparable governing documents of such Persons. 
 (p)
“Person” means any natural person, firm, corporation, partnership, company, limited liability company, joint venture, association, trust, unincorporated organization, Governmental Entity or other entity. 

(q) “Related Party” means (a) any Person that, individually or jointly with other(s), directly or indirectly
(i) controls TAM or any of its Subsidiaries; (ii) is controlled by TAM or any of its Subsidiaries; or (iii) is controlled by any Person that controls, individually or jointly with other(s), TAM or any of its Subsidiaries; (b) any
successor of the controlling shareholder of TAM or any of its Subsidiaries, in the event of dissolution, capital decrease by the delivery of shares to shareholders, spin-off and any other corporate transaction; and (c) any board member, officer
or manager of the companies mentioned above. 
 (r) “Representatives,” with respect to any Person, shall
mean the board members, officers, employees, auditors, accountants, legal counsel, financial advisors and other agents or representatives of or to such Person and its Subsidiaries. 

(s) “Subsidiary” means, with respect to any Person, (i) a corporation in which such Person, together with
its Subsidiaries, beneficially owns Voting Securities of such corporation which entitle them, collectively, to cast more than 50% of all the votes entitled to be cast by the holders of all Voting Securities of such corporation then outstanding in a
general election of board members of such corporation or (ii) any Person that is not a corporation in which such Person, and/or one or more other Subsidiaries of such Person, directly or indirectly, has a majority equity or voting interest or
the power to direct the policies, management and affairs thereof. 
 (t) “U.S. Exchange Act” shall mean
the U.S. Securities Exchange Act of 1934. 
 (u) “Voting Securities” means, with respect to any Person,
any securities or other equity or ownership interests in such Person which are entitled to vote generally in the election of board members of such Person (or, if such Person is not a corporation, the individuals who perform a similar function for
such Person). 

  
 15 

 SECTION 4.05 Severability. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions of this Agreement. If any provision of this Agreement, or the application of such provision to any Person or
any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision
and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or
enforceability of such provision, or the application of such provision, in any other jurisdiction. 
 SECTION 4.06
Amendment; Waiver. This Agreement may be amended and any performance, term or condition waived in whole or in part only by a writing signed by all Parties affected by the amendment (in the case of an amendment) or by the Party against whom
the waiver is to be effective (in the case of a waiver). No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any singular partial exercise of such right, power or
privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. Waiver by any Party of any breach or failure to comply with any provision of this Agreement by another Party shall not be construed as,
nor shall constitute, a continuing waiver of such provisions, or a waiver of any other breach of or failure to comply with any other provisions of this Agreement. 
 SECTION 4.07 Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, in whole or in part, by operation of Law or otherwise by any of the
Parties without the prior written consent of the other Parties, and any purported assignment without such consent shall be null and void and of no force or effect. Subject to the preceding sentence, this Agreement will be binding upon, inure to the
benefit of, and be enforceable by, the Parties and their respective successors and permitted assigns. 
 SECTION 4.08 No
Third-Party Beneficiaries. Except as otherwise expressly stated herein, the Parties hereby agree that the agreements and covenants set forth herein are solely for the benefit of the other Parties in accordance with, and subject to the terms of,
this Agreement and that this Agreement is not intended to, and does not, confer upon any Person other than the Parties any rights or remedies hereunder, including the right to rely upon the representations and warranties set forth herein.

  
 16 

 SECTION 4.09 Notices. All notices, requests, claims, demands, instructions and
other communications or documents given hereunder shall be in writing and shall be delivered personally or sent by registered or certified mail (postage prepaid), facsimile or overnight courier to the Parties at the following addresses (or at such
other address for a Party as shall be specified by like notice): 
 If to LATAM, to: 

Claro y Cia. 

Apoquindo 3721, piso 13, 
 Santiago, Chile 
 Attention: José María Eyzaguirre B. 

Fax: +56 2 367 3003 
 jmeyzaguirre@claro.cl 
 with copies (which shall not constitute notice) to:

 Sullivan & Cromwell LLP 
 125 Broad Street 
 New York, NY 10004 

United States of America 
 Attention: Sergio Galvis and Duncan McCurrach 
 Fax: +1 212 558 3588 

galviss@sullcrom.com 
 mccurrachd@sullcrom.com 
 If to TAM or Holdco I to: 

Turci Advogados 

Rua Dr. Renato Paes de Barros, 778 
 -1° andar – cj.12 
 04530-0001 
 São Paulo – SP 

Brasil 

Attention: Flavia Turci 
 Fax: +55 11 2177 2197 
 turci@turci.com 

with a copy (which shall not constitute notice) to: 
 Clifford Chance US LLP 
 31 West 52nd Street 

New York, NY 10019 
 Attention: Sarah Jones and Anand Saha 
 Fax: +1 212 878 8375 

Sarah.Jones@CliffordChance.com 
 Anand.Saha@CliffordChance.com 
 Any notice, request, claim, instruction or other
communication or document given as provided above shall be deemed given to the receiving party (i) if delivered personally, upon actual receipt, (ii) if sent by registered or certified mail, three business days after deposit in the mail,
(iii) if sent by facsimile, upon confirmation of successful transmission if within one business day after such facsimile has been sent such notice, request, claim, 

  
 17 

 
instruction or other communication or document is also given by one of the other methods described above and (iv) if sent by overnight courier, on the next business day after deposit with
the overnight courier. 
 SECTION 4.10 Specific Enforcement; Consent to Jurisdiction. The Parties agree that
irreparable damage would occur and that the Parties would not have any adequate remedy at Law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, this being in addition to any other remedy to which
they are entitled at Law or in equity, without the necessity of proving the inadequacy of monetary damages or of posting bond or other undertaking, as a remedy and to obtain injunctive relief against any breach or threatened breach hereof. In the
event that any Action is brought in equity to enforce the provisions of this Agreement, no Party shall allege, and each Party waives the defense or counterclaim that there is an adequate remedy at Law. Each of the Parties hereby irrevocably consents
and submits itself to the personal jurisdiction of the courts of the State of New York and the federal courts of the United States of America located in the Borough of Manhattan, The City of New York (collectively, the “Agreed
Courts”) solely in respect of the interpretation and enforcement of the provisions of this Agreement, and the documents referred to herein and the transactions contemplated by this Agreement (collectively, the “Agreed
Issues”), waives, and agrees not to assert, as a defense in any Action, suit or proceeding in an Agreed Court with respect to the Agreed Issues that such Party is not subject thereto or that such Action, suit or proceeding may not be
brought or is not maintainable in such Agreed Court or that the venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such Agreed Court, and the Parties irrevocably agree that all claims with
respect to any Action, suit or proceeding with respect to the Agreed Issues shall be heard and determined only in an Agreed Court. The Parties hereby consent to and grant to each Agreed Court jurisdiction over the Person of such parties and, to the
extent permitted by Law, over the subject matter of any dispute with respect to the Agreed Issues and agree that mailing of process or other papers in connection with any such Action or proceeding in the manner provided in Section 4.09 or in
such other manner as may be permitted by Law shall be valid and sufficient service thereof. 
 SECTION 4.11 WAIVER OF
JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (I) CERTIFIES THAT
IT HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND MADE IT VOLUNTARILY AND THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY 

  
 18 

 
WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS SECTION 4.11. 
 SECTION 4.12
Counterparts. This Agreement may be executed in one or more counterparts (including by facsimile), each of which shall be considered an original instrument and all of which shall together constitute the same agreement. This Agreement shall
become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties. 

SECTION 4.13 Interpretation. When a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such
reference shall be to an Article of, a Section of, or an Exhibit or Schedule to this Agreement unless otherwise indicated. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”. The
words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All terms defined in this
Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. Any contract, instrument or Law defined or referred to herein or in any contract or instrument that is referred to herein means such
contract, instrument or Law as from time to time amended, modified or supplemented, including (in the case of contracts or instruments) by waiver or consent and (in the case of Laws) by succession of comparable successor Law and references to all
attachments thereto and instruments incorporated therein. References to a Person are also to its permitted successors and assigns. Except as otherwise expressly provided herein, all remedies provided herein shall be in addition to any other remedies
that the Parties may otherwise have under applicable Law. Any reference in this Agreement to a “day” or a number of “days” (without the explicit qualification of “business”) shall be interpreted as a reference to a
calendar day or number of calendar days. This Agreement is the product of negotiation by the Parties having the assistance of counsel and other advisers, and the Parties and their counsel and other advisers having participated jointly in negotiating
and drafting this Agreement. If an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any
Party by virtue of the authorship of any provision of this Agreement. 
 SECTION 4.14 Filing Requirement. A copy of
this Agreement shall be filed at the headquarters of TAM for all purposes of applicable Law. 

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

			
	LAN AIRLINES S.A.
		
	By:	 	  

		 	Name:
		 	Title:
	
	TAM S.A.
		
	By:	 	  

		 	Name:
		 	Title:
	
	TEP CHILE S.A.
		
	By:	 	  

		 	Name:
		 	Title:
	
	HOLDCO I S.A.
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to TAM Shareholders Agreement]

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