Document:

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                                                                   Exhibit 10.37

               AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

                           dated as of June ____, 2006

                                      among

                              COPA HOLDINGS, S.A.,

                     CORPORACION DE INVERSIONES AEREAS, S.A.

                                       and

                           CONTINENTAL AIRLINES, INC.

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                                TABLE OF CONTENTS

<TABLE>
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                                                                            PAGE
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<S>                                                                         <C>
SECTION 1. DEFINITIONS...................................................     1
   1.1.  Defined Terms...................................................     1
   1.2.  General Interpretive Principles.................................     4

SECTION 2. REGISTRATION RIGHTS...........................................     4
   2.1.  Demand Registrations............................................     4
   2.2.  Piggyback Registrations.........................................     6
   2.3.  Sales by CIASA to Independent Panamanians.......................     8
   2.4.  Registered Offerings of CIASA Shares other than Registrable
         Securities......................................................     9
   2.5.  Black-out Periods...............................................     9
   2.6.  No Inconsistent Agreements......................................     9
   2.7.  Registration Procedures.........................................    10
   2.8.  Underwritten Offerings..........................................    14
   2.9.  Registration Expenses...........................................    15
   2.10. Rules 144 and 144A..............................................    16

SECTION 3. MISCELLANEOUS.................................................    16
   3.1.  Indemnification.................................................    16
   3.2.  Remedies........................................................    19
   3.3.  Notices.........................................................    19
   3.4.  Successors, Assigns and Transferees.............................    20
   3.5.  Recapitalizations, Exchanges, etc., Affecting Registrable
         Securities......................................................    21
   3.6.  Governing Law; Arbitration......................................    21
   3.7.  Headings........................................................    22
   3.8.  Severability....................................................    22
   3.9.  Amendment; Waiver...............................................    22
   3.10. Counterparts....................................................    22
</TABLE>

                                       i

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               AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

          AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT ("Agreement"),
dated as of June ___[insert closing date of offering], 2006, by and among Copa
Holdings, S.A., a corporation (sociedad anonima) organized under the laws of the
Republic of Panama (the "Company"), Corporacion de Inversiones Aereas, S.A., a
corporation (sociedad anonima) organized under the laws of Panama ("CIASA"), and
Continental Airlines, Inc., a corporation organized under the laws of the State
of Delaware ("Continental"). Each of the Company, CIASA and Continental may be
referred to as a "Party" and collectively they may be referred to as the
"Parties".

                                   WITNESSETH:

          WHEREAS, the Company, CIASA and Continental have entered into an
Underwriting Agreement, dated June ___, 2006 (the "Underwriting Agreement"),
among the Company, Continental, and Morgan Stanley & Co. Incorporated and
Merrill Lynch & Co., as representatives of the underwriters named therein
(collectively, the "Underwriters"), pursuant to which the Underwriters are
offering up to 7,546,875 Class A shares of the Company owned by Continental to
investors as described in a registration statement on Form F-1 (File No.
333-____) filed by the Company with the SEC (as defined below) (the "Offering");

          WHEREAS, in connection with the Offering, the Company, CIASA and
Continental entered into a Second Amended and Restated Shareholders Agreement,
dated the date hereof (the "Shareholders Agreement");

          WHEREAS, immediately after the Offering, Continental will continue to
own 5,359,375 Class A shares (or 4,375,000 Class A shares if the over-allotment
option is exercised) of the Company, and CIASA will continue to own 12,778,125
Class B shares of the Company; and

          WHEREAS, in connection with the Shareholders Agreement, the Company
has agreed to provide the rights set forth in this Agreement;

          NOW, THEREFORE, in consideration of the foregoing and the mutual
premises, covenants and agreements of the parties hereto, and for other good and
valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto agree as follows:

                             SECTION 1. DEFINITIONS.

          1.1. Defined Terms.

     As used in this Agreement, the following terms shall have the following
meanings:

          "Adverse Disclosure" means public disclosure of material non-public
information, disclosure of which, in the Board's good faith judgment, after
consultation with independent outside counsel to the Company, (i) would be
required to be made in any Registration Statement filed by the Company so that
such Registration Statement would not be

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                                                                               2

false or misleading in any material respect; (ii) would not be required to be
made at such time but for the filing or publication of such Registration
Statement and (iii) the Company has a bona fide business purpose for not
disclosing publicly.

          "Affiliates" has the meaning set forth in the Shareholders Agreement.

          "Agreement" has the meaning set forth in the preamble hereto.

          "Board" means the Board of Directors or other supervisory committee or
body of the Company or any other entity, as applicable.

          "Class A shares" means the Class A shares, no par value, of the
Company.

          "Class B shares" means the Class B shares, no par value, of the
Company.

          "Company" has the meaning set forth in the preamble hereto.

          "Company Sale" has the meaning set forth in Section 2.2(a).

          "Demand Notice" has the meaning set forth in Section 2.1(c).

          "Demand Registration" has the meaning set forth in Section 2.1(a).

          "Demand Registration Statement" has the meaning set forth in Section
2.1(a).

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and any successor thereto, and any rules and regulations promulgated thereunder,
all as the same shall be in effect from time to time.

          "Holder" means any holder of Registrable Securities who is a party
hereto or who succeeds to rights hereunder pursuant to Section 3.4.

          "Law" means, as applicable, any and all (i) U.S. and foreign
(including, without limitation, Panama) laws, ordinances, regulations, whether
federal, provincial, state or local, (ii) codes, standards, rules, requirements
and criteria issued under any U.S. or foreign (including, without limitation,
Panama) laws, ordinances or regulations, whether federal, provincial, state or
local and (iii) judgments.

          "NASD" means the National Association of Securities Dealers, Inc.

          "NYSE" means the New York Stock Exchange.

          "Offer" means an offer to persons in the United States to acquire
Registrable Securities.

          "Panama" means the Republic of Panama.

          "Panamanian" means any person or entity constituting a "Panamanian"
within the meaning of Article III of the Company's Pacto Social.

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                                                                               3

          "Panamanian Law" means any statute, act, order, rule or regulation
enacted by any Panamanian governmental authority or agency.

          "Panamanian Listing Authority" means the Comision Nacional de Valores
of the Republic of Panama.

          "Party" and "Parties" have the meaning set forth in the recitals.

          "Permitted Transferees" or "Permitted Transfer" has the meaning set
forth in Section 2.1 of the Shareholders Agreement.

          "Piggyback Registration" has the meaning set forth in Section 2.2(a).

          "Prospectus" means the prospectus included in any Registration
Statement, including any preliminary Prospectus, all amendments and supplements
to such prospectus, including post-effective amendments and all other material
incorporated by reference in such prospectus.

          "Registrable Securities" means from time to time (i) with respect to
Continental, the excess, if any, of all Class A shares of the Company held by
Continental and by Holders that are Permitted Transferees of Continental over
the number of Class B shares held by CIASA at such time (it being understood
that on the date hereof Continental has no Registrable Securities), (ii) with
respect to CIASA, the excess, if any, of all Class B shares of the Company held
by CIASA and by Holders that are Permitted Transferees of CIASA over the number
of Class A shares held by Continental at such time (it being understood that on
the date hereof CIASA has 7,418,750 Registrable Securities (or 8,403,125
Registrable Securities if the over-allotment option is exercised)) and (iii)
with respect to each of Continental and CIASA and their respective Permitted
Transferees, any securities that may be issued or distributed or be issuable in
respect of any Registrable Securities by way of conversion, dividend, stock
split or other distribution, merger, consolidation, exchange, recapitalization
or reclassification or similar transaction; provided that (a) the number of
Class A shares constituting Registrable Securities shall be reduced by the
number of Class A shares sold or otherwise transferred to a person that is not a
Permitted Transferee permitted by Section 3.4, and the number of Class B shares
constituting Registrable Securities shall be reduced by the number of Class B
shares sold or otherwise transferred to a person that is not a Permitted
Transferee permitted by Section 3.4; (b) the number of Registrable Securities
shall be increased from time to time in accordance with Section 2.3; and (c)
that any such Registrable Securities shall cease to be Registrable Securities to
the extent (1) a Registration Statement with respect to the sale of such
Registrable Securities has been declared effective under the Securities Act and
such Registrable Securities have been disposed of in accordance with the plan of
distribution set forth in such Registration Statement and/or Prospectus in each
case in accordance with applicable laws or (2) such Registrable Securities have
been distributed pursuant to Rule 144 (or any similar provisions then in force)
under the Securities Act or any other exemption from registration under
applicable Law.

          "Registration" means registration with the SEC with respect to the
Company's securities for offer and sale to the public under a Registration
Statement. The term "Register" shall have a correlative meaning.

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                                                                               4

          "Registration Expenses" has the meaning set forth in Section 2.9.

          "Registration Statement" means any registration statement of the
Company filed with, or to be filed with, the SEC under the rules and regulations
promulgated under the Securities Act, including the related Prospectus,
amendments and supplements to such registration statement, including
post-effective amendments, and all exhibits and all material incorporated by
reference in such registration statement.

          "Restricted Securities" means any shares of the Company held by CIASA
or Continental that are not Registrable Securities.

          "SEC" means the Securities and Exchange Commission.

          "Securities Act" means the Securities Act of 1933, as amended, and any
successor thereto, and any rules and regulations promulgated thereunder, all as
the same shall be in effect from time to time.

          "Shelf Registration Statement" means a "shelf" registration statement
of the Company that covers certain shares of the Company described in Section
2.3 on an appropriate form under Rule 415 under the Securities Act, or any
similar rule that may be adopted by the SEC, and all amendments and supplements
to such registration statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and any
document incorporated by reference therein.

          "Underwritten Offering" means a Registration in which Registrable
Securities of the Company are sold to an underwriter or underwriters for
reoffering to the public or in which an underwriter or underwriters commit to
acquire such securities if and to the extent they are not acquired by third
parties.

          1.2. General Interpretive Principles. Whenever used in this Agreement,
except as otherwise expressly provided or unless the context otherwise requires,
any noun or pronoun shall be deemed to include the plural as well as the
singular and to cover all genders. The name assigned this Agreement and the
section captions used herein are for convenience of reference only and shall not
be construed to affect the meaning, construction or effect hereof. Unless
otherwise specified, the terms "hereof," "herein" and similar terms refer to
this Agreement as a whole (including the exhibits, schedules and disclosure
statements hereto), and references herein to Sections refer to Sections of this
Agreement.

                        SECTION 2. REGISTRATION RIGHTS.

          2.1. Demand Registrations.

          (a) Demand by Holders. Subject to the limitations set forth herein, so
long as either is a Holder, Continental or CIASA may make a written request to
the Company for Registration of all or part of the outstanding shares of
Registrable Securities held by such Holder and any other Holders of Registrable
Securities. Any such requested Registration shall hereinafter be referred to as
a "Demand Registration." A request for a Demand Registration shall specify the
aggregate amount of Registrable Securities to be Registered. The Company

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                                                                               5

shall file as expeditiously as reasonably possible a Registration Statement
relating to such Demand Registration (a "Demand Registration Statement") and
shall use its reasonable best efforts to file and effect the Registration under
applicable Law.

          (b) Limitation on Demand Registrations. In no event shall the Company
be required to effect and complete (i) more than two (2) Demand Registrations
requested by or CIASA pursuant to Section 2.1(a) (but subject to CIASA's right
to request additional Demand Registrations pursuant to Section 2.1(f)), (ii)
more than one (1) Demand Registration requested by Continental pursuant to
Section 2.1(a) (but subject to Continental's right to request additional Demand
Registrations pursuant to Section 2.1(f), 2.3(a) and 2.3(b)(iii)), (iii) more
than one Demand Registration in any twelve-month period or (iv) any Demand
Registration that would register the lesser of $50 million of the Shares and 5%
of the total Shares of the Company; provided that if, subsequent to the last
sale by a Holder of its Registrable Securities, the Company issues any Shares
and, as a consequence of such issuance, such Holder's remaining Registrable
Securities cease to constitute at least 5% of the total Shares of the Company,
then the limitation set forth in this Section 2.1(b)(iii) shall not apply to one
further Demand Registration by such Holder if such Holder would otherwise
continue to have such right.

          (c) Notice of Demand to Other Holders. Promptly upon receipt of any
request for a Demand Registration pursuant to Section 2.1(a) (but in no event
more than 15 business days thereafter), the Company shall deliver a written
notice of any such Registration request specifying the number of Registrable
Securities requested to be registered and the intended method of distribution of
the Registrable Securities (a "Demand Notice") to all other Holders of
Registrable Securities, and the Company shall include in such Demand
Registration all additional Registrable Securities of other Holders with respect
to which the Company has received written requests for inclusion therein within
20 days after the date on which the Demand Notice has been delivered. All
requests made pursuant to this Section 2.1(c) shall specify the class and
aggregate amount of Registrable Securities to be registered.

          (d) Delay in Filing; Suspension of Registration. If the filing,
initial effectiveness, publication or continued use of a Demand Registration
Statement at any time would require the Company to make an Adverse Disclosure,
the Company may, upon giving prompt written notice of such action to the
Holders, delay the filing, publication or initial effectiveness of, or suspend
use of, the Demand Registration Statement (a "Demand Suspension"); provided that
such Demand Suspensions shall not extend for more than 90 days in any
twelve-month period. Any Demand Suspension pursuant to this Section 2.1(d) shall
not be effective unless each director and executive officer subject to Section
16(b) of the Exchange Act is prohibited from making purchases and sales during
such Demand Suspension by reason of the existence of material non-public
information that would trigger an Adverse Disclosure. In the case of a Demand
Suspension, the Holders agree to suspend use of the applicable Prospectus in
connection with any sale or purchase, or offer to sell or purchase, Registrable
Securities, upon receipt of the notice referred to above. The Company shall
immediately (i) notify the Holders upon the termination of any Demand
Suspension, (ii) amend or supplement the Prospectus, if necessary, so it does
not contain any untrue statement or omission therein and (iii) furnish to the
Holders such numbers of copies of the Prospectus as so amended or supplemented
as the Holders may reasonably request. The Company represents that, as of the
date hereof, it has no

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                                                                               6

knowledge of any circumstance that would reasonably be expected to cause it to
exercise its rights under this Section 2.1(d).

          (e) Underwritten Offering. If the Holder requesting the Demand
Registration so elects, the offering of Registrable Securities pursuant to a
Demand Registration shall be in the form of an Underwritten Offering. If any
offering pursuant to a Demand Registration involves an Underwritten Offering,
such initiating Holder shall have the right to select the underwriter or
underwriters to administer the offering; provided that such underwriter or
underwriters shall be reasonably acceptable to the Company.

          (f) Priority of Securities Registered Pursuant to Demand
Registrations. If the managing underwriter or underwriters of a proposed
Underwritten Offering of Registrable Securities included in a Demand
Registration informs the Company or the Holders of such Registrable Securities
that, in its or their opinion, the number of securities requested to be included
in such Demand Registration exceeds the number which can be sold in (or during
the time of) such offering without being likely to have a significant adverse
effect on the price, timing or distribution of the securities offered or on the
market for the securities offered, then the number of Registrable Securities to
be included in such Demand Registration shall be reduced and allocated as
follows: (i) first, any securities that the Company proposes to sell and (ii)
second, among the Holders in proportion to their respective equity ownership in
the Company at the time of the offering. If, as a consequence of any such
determination occurring during the final Demand Registration available to such
Holder pursuant to Section 2.1(b)(i), the initiating Holder sells fewer
Registrable Securities in such Demand Registration than such Holder requested to
be included, such Holder shall be entitled to one additional Demand
Registration.

          (g) Registration Statement Form. Registrations under this Section 2.1
shall be on such appropriate form of the SEC, (i) as shall be selected by the
Company and as shall be deemed appropriate by counsel for the Company and (ii)
as shall permit the disposition of such Registrable Securities in accordance
with the intended method or methods of disposition specified in such Holders'
requests for such Registration. Notwithstanding the foregoing, if, pursuant to a
Demand Registration, (x) the Company proposes to effect Registration by filing a
Registration Statement on Form F-3 (or any successor or similar short-form
registration statement), (y) such Registration is in connection with an
Underwritten Offering and (z) the managing underwriter or underwriters shall
advise the Company in writing that, in its or their opinion, the use of another
form of registration statement is of material importance to the success of such
proposed offering, then such Registration shall be effected on such other form.

          2.2. Piggyback Registrations.

          (a) Participation. If the Company at any time proposes to file or
publish a Registration Statement under the Securities Act with respect to any
offering of its securities for its own account or for the account of any other
Persons (other than (i) a Registration under Section 2.1(a) pursuant to which
notice is delivered pursuant to Section 2.1(c), (ii) pursuant to a registration
right granted by the Company as part of a bona fide financing by the Company
structured as a private placement of securities (other than common stock or
warrants to purchase common stock) to be followed, within 270 days of the
consummation thereof, by the filing of a registration statement with respect to
such securities or (iii) a Registration on Form F-4 or S-8 or

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                                                                               7

any similar or successor form to such Forms (such registration pursuant to
clause (iii), a "Company Sale")), then, as soon as practicable (but in no event
less than 30 days prior to the proposed date of filing or publishing, as the
case may be, such Registration Statement), the Company shall give written notice
of such proposed filing to all Holders of Registrable Securities, and such
notice shall offer the Holders of such Registrable Securities the opportunity,
subject to Section 2.2(b), to Register under such Registration Statement such
number of Registrable Securities as each such Holder may request in writing (a
"Piggyback Registration"). Pursuant and subject to Section 2.2(b), the Company
shall include in such Registration Statement all such Registrable Securities
with respect to which the Company has received written requests for inclusion
within 20 days after the date on which the Company has delivered its written
notice, including, if necessary, filing with the SEC a post-effective amendment
or a supplement to such Registration Statement or the related Prospectus or any
document incorporated therein by reference or filing any other required document
or otherwise supplementing or amending such Registration Statement, if required
by the rules, regulations or instructions applicable to the registration form
used by the Company for such Registration Statement or by the Securities Act,
any state securities or blue sky laws, or any rules and regulations thereunder;
provided that if at any time after giving written notice of its intention to
Register any securities and prior to the effective date of the Registration
Statement filed in connection with such Registration, the Company shall
determine for any reason not to Register or to delay Registration of such
securities, the Company may, at its election, give written notice of such
determination to each Holder of Registrable Securities and, thereupon, (i) in
the case of a determination not to Register, shall be relieved of its obligation
to Register any Registrable Securities in connection with such Registration (but
not from its obligation, if any, under Section 2.9 to pay Registration Expenses
in connection therewith) and (ii) in the case of a determination to delay
Registering, shall be permitted to delay Registering any Registrable Securities,
for the same period as the delay in Registering such other securities. If the
offering pursuant to such Registration Statement is to be underwritten, then
each Holder making a request for a Piggyback Registration pursuant to this
Section 2.2(a) must, and the Company shall make such arrangements with the
underwriters so that each such Holder may, participate, subject to Section
2.2(b), in such Underwritten Offering. If the offering pursuant to such
Registration Statement is to be on any other basis, then each Holder making a
request for a Piggyback Registration pursuant to this Section 2.2(a) must, and
the Company will make such arrangements so that each such Holder may,
participate, subject to Section 2.2(b), in such offering on such basis. Each
Holder of Registrable Securities shall be permitted to withdraw all or part of
such Holder's Registrable Securities from a Piggyback Registration at any time
prior to the Company's request for acceleration of the effective date thereof.

          (b) Priority of Piggyback Registration. If the managing underwriter or
underwriters of any proposed Underwritten Offering of a class of Registrable
Securities included in a Piggyback Registration informs the Company or the
Holders of such class of Registrable Securities that, in its or their opinion,
the number of securities of such class which such Holders and any other Persons
intend to include in such offering exceeds the number which can be sold in (or
during the time of) such offering without being likely to have a significant
adverse effect on the price, timing or distribution of the securities offered or
on the market for the securities offered, then the number of securities to be
included in such Registration as so determined by the managing underwriter or
underwriters (the "Included Securities") shall be allocated as follows:

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                                                                               8

(i) first, any securities that the Company proposes to sell; (ii) second, among
the Holders in proportion to their respective equity ownership in the Company at
the time of the offering.

          2.3. Sales by CIASA to Independent Panamanians. (a) If at any time
CIASA or Permitted Transferees of CIASA shall sell Class B shares to a
Panamanian who is not a Permitted Transferee (an "Independent Panamanian") and
immediately after giving effect thereto CIASA, together with its Permitted
Transferees, collectively beneficially own fewer than the total number of
outstanding shares of the Company beneficially owned at such time by Continental
and its Permitted Transferees (i) the total number of Registrable Securities, if
any, held by Continental shall be increased to include all Class A shares then
owned by Continental, (ii) Continental may sell any Shares that become
Registrable Securities pursuant to this Section 2.3(a) pursuant to the Shelf
Registration Statement described in Section 2.3(b) below and (iii) the number of
Demand Registrations that Continental has a right to request pursuant to Section
2.1 shall increase by one.

          (b) CIASA and the Company agree that:

               (i) At such time as CIASA or a Permitted Transferee of CIASA
          enters into serious negotiations to sell such number of Class B shares
          to an Independent Panamanian that would result in CIASA and Permitted
          Transferees of CIASA collectively beneficially owning less than the
          total number of outstanding shares of the Company beneficially owned
          at such time by Continental, CIASA shall use its reasonable best
          efforts to cause the Company, and the Company shall use its reasonable
          best efforts, to file as soon as possible a Shelf Registration
          Statement providing for the registration of a number of Registrable
          Securities held by Continental equal to the increased number of
          Restricted Securities that shall be become Registrable Securities
          pursuant to Sections 2.3(a) and such other securities as the Company
          may deem appropriate and to have such Shelf Registration Statement
          declared effective by the SEC.

               (ii) The Company agrees to use its reasonable best efforts to
          keep any Shelf Registration Statement required under Section 2.3(b)
          continuously effective until all the Registrable Securities covered by
          the Shelf Registration Statement have been sold pursuant to the Shelf
          Registration Statement (the "Shelf Effectiveness Period"). The Company
          further agrees to supplement or amend the Shelf Registration Statement
          and the related Prospectus if required by the rules, regulations or
          instructions applicable to the registration form used by the Company
          for such Shelf Registration Statement or by the Securities Act or by
          any other rules and regulations thereunder for shelf registration or
          if reasonably requested by a Holder of Registrable Securities with
          respect to information relating to such Holder, and to use its
          reasonable best efforts to cause any such amendment to become
          effective and such Shelf Registration Statement and Prospectus to
          become usable as soon as thereafter practicable.

               (iii) If any Shelf Registration Statement required by this
          Section 2.3(b), (i) has not been declared effective within 75 days of
          the consummation of the triggering sale to an Independent Panamanian
          contemplated by Section 2.3(a) or

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                                                                               9

          (ii) becomes effective and thereafter either ceases to be effective or
          the Prospectus contained therein ceases to be usable, in each case
          during the Shelf Effectiveness Period, and such failure to remain
          effective or usable exists for more than 75 days (whether or not
          consecutive) in any 12-month period, then the number of Demand
          Registrations that Continental has a right to request pursuant to
          Section 2.1 shall be increased by one.

               (iv) If CIASA sells any of its Class B shares to an Independent
          Panamanian under circumstances that require the Company to file the
          Shelf Registration Statement pursuant to this Section 2.3, then
          Continental may use the Shelf Registration Statement at any time to
          sell such increased number of Registrable Securities as were granted
          pursuant to this Section 2.3.

          2.4. Registered Offerings of CIASA Shares other than Registrable
Securities. In addition to the rights granted to Continental by Section 2.2, if
at any time the Company proposes to file a Registration Statement with respect
to Restricted Securities held by CIASA, then, as soon as practicable (but in no
event less than 20 days prior to the proposed date of filing such Registration
Statement), the Company shall give written notice of such proposed filing to
Continental and shall offer Continental the opportunity to register under such
Registration Statement such number of Restricted Securities held by Continental
equal to the number of CIASA's Restricted Securities that are proposed to be
registered under such Registration Statement.

          2.5. Black-out Periods.

          (a) The Company shall not be obligated to file any Registration
Statement pursuant to Section 2.1 during the period (A) commencing with the date
on which either (1) the Company previously received a request to file a
Registration Statement pursuant to Section 2.1 or (2) the Company, pursuant to
Section 2.2 or 2.4, previously or simultaneously notified the Holders of
Registrable Securities of its intention to file a Registration Statement (in
either case, such Registration Statement being hereinafter referred to as the
"Preceding Registration Statement") and (B) ending with the earliest of (1) if
such Preceding Registration Statement has not become effective, 180 days
following the filing of such Preceding Registration Statement, (2) if such
Preceding Registration Statement has not been filed, 270 days after notification
of intention to file, (3) if such Preceding Registration Statement has become
effective, 180 days after such Preceding Registration Statement has become
effective (subject to any period (which shall not exceed 120 days) after such
Preceding Registration Statement becomes effective, which the managing
Underwriter has designated as the minimum period during which the Company and
the Holders shall not engage in any new registered offerings) and (4) the date
of abandonment by the Company of its intention to file such Preceding
Registration Statement or the date of withdrawal of the request under Section
2.1 by the Party making the request.

          2.6. No Inconsistent Agreements. Except for the Underwriting
Agreement, the Company is not currently a party to any agreement with respect to
its securities which is inconsistent with the rights granted to the Holders of
Registrable Securities by this Agreement. No other registration rights have been
granted or will be granted in connection with the Initial Public Offering.

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                                                                              10

          2.7. Registration Procedures.

          (a) In connection with the Company's Registration obligations under
Sections 2.1, 2.2 and 2.3, the Company will use its reasonable best efforts to
effect such Registration to permit the sale of such Registrable Securities by
the Holders in accordance with the intended method or methods of distribution
thereof under the Securities Act, or other applicable Law, as expeditiously as
reasonably practicable, and in connection therewith the Company will:

          (i) (A) prepare the required Registration Statement, Prospectus or
other applicable required registration and/or listing documents including all
exhibits and financial statements required under applicable law to be filed
therewith (such documents, collectively "Registration Documents"), and such
Registration Documents shall comply as to form with the requirements of the
applicable form and include all financial statements required by the SEC to be
filed therewith and all information reasonably requested by the lead managing
Underwriter or sole Underwriter, if applicable, to be included therein, (B) use
its reasonable best efforts to cause such Registration Statement to become
effective and remain effective, (C) use its reasonable best efforts to not take
any action that would cause a Registration Statement to contain a material
misstatement or omission or to be not effective and usable for resale of
Registrable Securities during the period that such Registration Statement is
required to be effective and usable, and (D) cause each Registration Statement
and the related Prospectus and any amendment or supplement thereto, as of the
effective date of such Registration Statement, amendment or supplement (x) to
comply in all material respects with any requirements of the Securities Act and
the rules and regulations of the SEC and (y) not to contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading. Before
filing a Registration Statement or publishing a Prospectus or any other
applicable registration documents, or any amendments or supplements thereto,
furnish to the underwriters, if any, and to the Holders of the Registrable
Securities covered by such Registration Statement, copies of all documents filed
with an applicable regulatory authority in conformity with the requirements of
the Securities Act or any other applicable Law;

          (ii) prepare and file with the SEC such amendments and post-effective
amendments to such Registration Statement and supplements to the Prospectus as
may be necessary to keep such Registration effective for the period of time
required by this Agreement;

          (iii) notify the participating Holders of Registrable Securities and
the managing underwriter or underwriters, if any, and furnish to each Holder of
Registrable Securities and to each underwriter of an Underwritten Offering of
Registrable Securities, if any, without charge, as many copies of the relevant
documents including the Prospectus, any amendment or supplement thereto and such
other documents as such Holder or underwriter may reasonably request in order to
facilitate the public sale or other disposition of the Registrable Securities;

          (iv) use its reasonable best efforts to prevent or obtain the
withdrawal of any stop order or other order suspending the use of any
preliminary or final Prospectus;

          (v) on or prior to the date on which the applicable Registration
Statement is declared effective or is published, use its reasonable best efforts
to register or qualify, and

<PAGE>

                                                                              11

cooperate with the selling Holders of Registrable Securities, the managing
underwriter or underwriters, if any, and their respective counsel, in connection
with the registration or qualification of such Registrable Securities for offer
and sale under the securities or "Blue Sky" laws of each state of the United
States and other jurisdiction as any such selling Holder or managing underwriter
or underwriters, if any, or their respective counsel reasonably request in
writing and do any and all other acts or things reasonably necessary or
advisable to keep such registration or qualification in effect for so long as
such Registration Statement remains in effect and so as to permit the
continuance of sales and dealings in such jurisdictions for as long as may be
necessary to complete the distribution of the Registrable Securities covered by
the Registration Statement; provided that the Company will not be required to
qualify generally to do business in any jurisdiction where it is not then so
qualified or to take any action which would subject it to taxation or general
service of process in any such jurisdiction where it is not then so subject;

          (vi) cooperate with the selling Holders of Registrable Securities and
the managing underwriter or underwriters, if any, to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold and not bearing any restrictive legends;

          (vii) use its reasonable best efforts to cause the Registrable
Securities covered by the applicable Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be
necessary to enable the seller or sellers thereof or the underwriter or
underwriters, if any, to consummate the disposition of such Registrable
Securities;

          (viii) obtain for delivery to the Holders of Registrable Securities
being registered and to the underwriter or underwriters, if any, an opinion or
opinions from counsel for the Company dated the effective date of the
Registration Statement or, in the event of an Underwritten Offering, the date of
the closing under the underwriting agreement, in customary form, scope and
substance, which counsel and opinions shall be reasonably satisfactory to such
Holders or underwriters, as the case may be, and their respective counsel;

          (ix) in the case of an Underwritten Offering, obtain for delivery to
the Company and the managing underwriter or underwriters, with copies to the
Holders of Registrable Securities included in such Registration, a comfort
letter from the Company's independent certified public accountants in customary
form and covering such matters of the type customarily covered by cold comfort
letters as the managing underwriter or underwriters reasonably request, dated
the date of execution of the underwriting agreement and brought down to the
closing under the underwriting agreement;

          (x) cooperate with each seller of Registrable Securities and each
underwriter, if any, participating in the disposition of such Registrable
Securities and their respective counsel in connection with any filings required
to be made with the NASD;

          (xi) provide and cause to be maintained in the United States or
Panama, as applicable, a transfer agent and registrar for all Registrable
Securities covered by the applicable Registration Statement from and after a
date not later than the effective date of such Registration Statement;

<PAGE>

                                                                              12

          (xii) cause all Registrable Securities covered by the applicable
Registration Statement to be listed on each securities exchange on which any of
the Company's securities are then listed or quoted and on each inter-dealer
quotation system on which any of the Company's securities are then quoted;

          (xiii) make available upon reasonable notice at reasonable times and
for reasonable periods for inspection by a representative appointed by the
majority of the Holders of each class of Registrable Securities covered by the
applicable Registration Statement, by any underwriter participating in any
disposition to be effected pursuant to such Registration Statement and by any
attorney, accountant or other agent retained by such Holders or any such
underwriter, all pertinent financial and other records, pertinent corporate
documents and properties of the Company, and cause all of the Company's
officers, directors and employees and the independent public accountants who
have certified its financial statements to make themselves available to discuss
the business of the Company and to supply all information reasonably requested
by any such Person in connection with such Registration Statement as shall be
necessary to enable them to exercise their due diligence responsibility pursuant
to the requirements of applicable Law; and

          (xiv) (A) within a reasonable time prior to the filing of any
Registration Statement, any Prospectus, any amendment to a Registration
Statement or amendment or supplement to a Prospectus, provide copies of such
document to the Holders of Registrable Securities and to counsel to such Holders
and to the underwriter or underwriters of an Underwritten Offering of
Registrable Securities, if any; and

               (B) if reasonably requested by any Holder selling Registrable
Securities pursuant to a Registration Statement, as promptly as reasonably
practicable, incorporate in a Prospectus supplement or post-effective amendment
to such Registration Statement such information as such Holder shall, on the
basis of a written opinion of nationally recognized counsel experienced in such
matters, determine to be required to be included therein by applicable law and
make any required filings of such Prospectus supplement or such post-effective
amendment as required by applicable law; provided that the Company shall not be
required to take any actions under this Section 2.7(xiv)(B) that are not, in the
reasonable opinion of counsel for the Company, required by applicable law; and
fairly consider such other reasonable changes in any such document prior to or
after the filing thereof as the counsel to the Holders or the underwriter or the
underwriters may request and not file any such document in a form to which
Holders of a majority of the Registrable Securities being sold by all Holders in
such offering or any underwriter shall reasonably object; and make such of the
representatives of the Company as shall be reasonably requested by the Holders
of Registrable Securities being registered or any underwriter available for
discussion of such document;

               (C) within a reasonable time prior to the filing of any document
which is to be incorporated by reference into a Registration Statement or a
Prospectus, provide copies of such document to counsel for the Holders; fairly
consider such reasonable changes in such document prior to or after the filing
thereof as counsel for such Holders or such underwriter shall request; and make
such of the representatives of the Company as shall be reasonably requested by
such counsel available for discussion of such document; and

<PAGE>

                                                                              13

          (xv) otherwise use its reasonable best efforts to comply with all
applicable rules and regulations of the SEC, and make available to its security
holders, as soon as reasonably practicable, an earnings statement covering the
period of at least twelve (12) months, but not more than eighteen (18) months,
beginning with the first month after the effective date of the Registration
Statement, which earnings statement shall meet the requirements of the
Securities Act.

          (b) The Company may require each seller of Registrable Securities as
to which any Registration is being effected to furnish to the Company such
information regarding the distribution of such securities and such other
information relating to such Holder and its ownership of Registrable Securities
as the Company may from time to time reasonably request in writing. Each Holder
of Registrable Securities agrees to furnish such information to the Company and
to cooperate with the Company as reasonably necessary to enable the Company to
comply with the provisions of this Agreement.

          (c) The Company shall advise each of the Holders and, if requested by
any such person, confirm such advice in writing (which advice pursuant to
clauses (ii) through (v) of this Section 2.7(c) shall be accompanied by an
instruction to suspend the use of the prospectus until the requisite changes
have been made):

          (i) when any Registration Statement and any amendment thereto has been
filed with the Commission and when such Registration Statement or any
post-effective amendment thereto has become effective;

          (ii) of any request by the Commission for amendments or supplements to
any Registration Statement or the prospectus included therein or for additional
information;

          (iii) of the issuance by the Commission of any stop order suspending
the effectiveness of any Registration Statement or the initiation of any
proceedings for that purpose;

          (iv) of the receipt by the Company of any notification with respect to
the suspension of the qualification of the Registrable Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

          (v) of the happening of any event that requires the making of any
changes in any Registration Statement or the prospectus included therein in
order that the statements therein are not misleading and do not omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading.

          (d) Each Holder agrees that, upon receipt of any notice from the
Company pursuant to Section 2.7(c)(ii) through (v), such Holder will discontinue
disposition of any Registrable Securities until such Holder's receipt of copies
of a supplemental or amended prospectus or until advised in writing (the
"Advice") by the Company that the use of the applicable prospectus may be
resumed. In the event the Company shall give any such notice, the period during
which the applicable Registration Statement is required to be maintained
effective shall be extended by the number of days during the period from and
including the date of the giving of such notice to and including the date when
each seller of Registrable Securities covered

<PAGE>

                                                                              14

by such Registration Statement either receives the copies of the supplemented or
amended Prospectus or receives Advice.

          2.8. Underwritten Offerings.

          (a) Underwriting Agreements. If requested by the underwriters for any
Underwritten Offering, the Company shall enter into an underwriting agreement
with such underwriters for such offering, such agreement to be reasonably
satisfactory in substance and form to the Company, and the underwriters. Such
agreement shall contain such representations and warranties by the Company and
such other terms as are generally prevailing in agreements of that type,
including, without limitation, indemnities generally to the effect and to the
extent of those provided in Section 3.1. The Holders of any Registrable
Securities to be included in any Underwritten Offering by such underwriters
shall enter into such underwriting agreement at the request of the Company. The
Holders of Registrable Securities to be distributed by such Underwriters shall
be parties to such Underwriting Agreement and may, at their option, require that
all of the representations and warranties by, and the other agreements on the
part of, the Company to and for the benefit of such underwriters also be made to
and for the benefit of such Holders and any or all of the conditions precedent
to the obligations of such underwriters under such underwriting agreement be
conditions precedent to the obligations of such Holders. No Holder shall be
required in any such underwriting agreement to make any representations or
warranties to, or agreements with, the Company or the underwriters other than
representations, warranties or agreements regarding such Holder, such Holder's
Registrable Securities, such Holder's intended method of distribution and any
representations required by law.

          (b) Participation in Underwritten Registrations. No Person may
participate in any Underwritten Offering hereunder unless such Person (i) agrees
to sell such Person's securities on the basis provided in any underwriting
arrangements approved by the Persons entitled to approve such arrangements and
(ii) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

          (c) Piggyback by Holders in Underwritten Primary Offerings. If the
Company at any time proposes to register any of its securities under the
Securities Act as contemplated by Section 2.2 and such securities are to be
distributed by or through one or more Underwriters, then the Holders of
Registrable Securities to be distributed by such Underwriters pursuant to
Piggyback Rights shall be parties to the Underwriting Agreement between the
Company and such Underwriters and may, at their option, require that any or all
of the representations and warranties by, and the other agreements on the part
of, the Company to and for the benefit of such Underwriters shall also be made
to and for the benefit of such holders of Registrable Securities and that any or
all of the conditions precedent to the obligations of such Underwriters under
such underwriting agreement be conditions precedent to the obligations of such
holders of Registrable Securities. Any such Holder of Registrable Securities
shall not be required to make any representations or warranties to or agreements
with the Company or the Underwriters other than representations, warranties or
agreements regarding such Holder, such Holder's Registrable Securities and such
Holder's intended method of distribution and any other representation required
by law.

<PAGE>

                                                                              15

          (d) Holdback Agreements. (i) Each Holder of Registrable Securities
agrees, if so required by the managing Underwriter, that it will agree to
"Holdbacks" to the extent that (A) such Holdbacks apply to the Company and
Holders of all other Registrable Securities on equal or more restrictive terms
and (B) such Holdbacks were limited to one hundred eighty (180) days after any
underwritten registration pursuant to Section 2.1 or 2.2 has become effective or
after any sale under a Registration Statement required by Section 2.3. For the
purpose of this Agreement, to "Holdback" is to refrain from selling, making any
short sale of, loaning, granting any option for the purchase of, effecting any
public sale or distribution of or otherwise disposing of any securities of the
Company, except as part of such underwritten registration, whether or not such
holder participates in such registration. Each Holder of Registrable Securities
agrees that the Company may instruct its transfer agent to place stop transfer
notations in its records to enforce such Holdbacks.

          (ii) The Company agrees (A) if so required by the managing
Underwriter, that it would be subject to the same Holdbacks as the holders of
Registrable Securities, except pursuant to registrations on Form F-4, S-8, S-14
or S-15 or any successor or similar forms thereto, and (B) to cause each holder
of its securities or any securities convertible into or exchangeable or
exercisable for any of such securities, in each case purchased from the Company
at any time after the date of this Agreement (other than in a public offering)
to agree to such Holdbacks.

          2.9. Registration Expenses. In the case of the first Demand
Registration requested under this Agreement after the date hereof, 50% of the
Company's expenses incident to the Company's performance of or compliance with
this Agreement will be paid by the Company and the remaining 50% will be paid
ratably by all Holders in proportion to the number of their respective
Registrable or Restricted Securities, as the case may be, that are included in
such Registration. In the case of all Registrations other than the first such
Demand Registration, all such expenses shall be paid ratably by all Holders
(including the Company) in proportion to the number of their respective
Registrable or Restricted Securities, as the case may be, that are included in
such Registration. The expenses incident to the Company's performance of or
compliance with this Agreement, include, without limitation, (i) all fees and
expenses (other than registration and filing fees) associated with filings
required to be made with the SEC, the NASD, the NYSE or the Panamanian Listing
Authority, (ii) all fees and expenses in connection with compliance with state
securities or "Blue Sky" laws, (iii) all translating, printing, duplicating,
word processing, messenger, telephone, facsimile and delivery expenses
(including expenses of printing certificates for the Registrable Securities in a
form eligible for deposit with The Depository Trust Company or other similar
depository institution and of printing prospectuses), (iv) all fees and
disbursements of counsel for the Company and of all independent certified public
accountants of the Company (including the expenses of any special audit and cold
comfort letters required by or incident to such performance); (v) Securities Act
liability insurance or similar insurance if the Company so desires or the
underwriters so require in accordance with then-customary underwriting practice,
(vi) all fees and expenses (other than listing fees) incurred in connection with
the listing of the Registrable Securities on any securities exchange or
quotation of the Registrable Securities on any inter-dealer quotation system,
(vii) all applicable rating agency fees with respect to the Registrable
Securities and (viii) all fees and expenses of any special experts or other
Persons retained by the Company in connection with any Registration.
Notwithstanding the foregoing, the Company shall not be required to pay, or

<PAGE>

                                                                              16

reimburse any person for, any (i) registration or filing fees associated with
filings required to be made with any governmental or listing authority or (ii)
fees and disbursements of underwriters or the Holders (including the fees of
their respective counsel). Any expenses not payable by the Company shall be paid
by the Holders of Registrable Securities in proportion to their number of
Registrable Securities included in such Registration.

          2.10. Rules 144 and 144A.

          The Company shall timely file the reports required to be filed by it
under the Securities Act and the Exchange Act (including but not limited to the
reports under Sections 13 and 15(d) of the Exchange Act referred to in
subparagraph (c) of Rule 144 adopted by the Commission under the Securities Act)
and the rules and regulations adopted by the Commission thereunder (or, if the
Company is not required to file such reports, will, upon the request of any
holder of Registrable Securities, make publicly available other information) and
will take such further action as any holder of Registrable Securities may
reasonably request, all to the extent required from time to time to enable such
holder to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by (a) Rule 144 under the
Securities Act, as such Rule may be amended from time to time, or (b) any
similar rule or regulation hereafter adopted by the Commission. Upon the request
of any holder of Registrable Securities, the Company will deliver to such holder
a written statement as to whether it has complied with the requirements of this
Section 2.10.

                            SECTION 3. MISCELLANEOUS.

          3.1. Indemnification.

          (a) Indemnification by Company. The Company agrees to indemnify and
hold harmless, to the full extent permitted by law, each Holder of Registrable
Securities, its Affiliates and their respective partners, officers, directors,
shareholders, employees and advisors and each Person who controls (within the
meaning of the Securities Act or the Exchange Act) such Persons from and against
any and all losses, claims, damages, liabilities, judgments (or actions or
proceedings in respect thereof, whether or not such indemnified party is a party
thereto) and expenses, joint or several (including reasonable costs of
investigation and legal expenses) (each, a "Loss" and collectively "Losses")
arising out of or based upon (A) any untrue or alleged untrue statement of a
material fact contained in any Registration Statement under which such
Registrable Securities were Registered under the Securities Act (including any
final, preliminary or summary Prospectus contained therein or any amendment
thereof or supplement thereto or any documents incorporated by reference
therein), (B) any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in
the case of a Prospectus or preliminary Prospectus, in light of the
circumstances under which they were made) not misleading, (C) any other
violation by the Company of the Securities Act, the Exchange Act or any state
securities law or of any rule or regulation promulgated under the Securities
Act, the Exchange Act or any state securities law applicable to the Company and
relating to any action or inaction required of the Company in connection with
any registration of Registrable Shares, or (D) any violation or alleged
violation of the securities Law of Panama; provided that the Company shall not
be liable to any particular indemnified party in any such case to the extent
that any such Loss arises out of or is based upon

<PAGE>

                                                                              17

an untrue statement or alleged untrue statement of a material fact or omission
or alleged omission of a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading, in
any such case made in any such Registration Statement in reliance upon and in
conformity with written information furnished to the Company by such indemnified
party expressly for use in the preparation thereof, provided further that the
Company shall not be liable to any Person who participates as an Underwriter in
the offering or sale of Registrable Securities or to any other Person, if any,
who controls such Underwriter within the meaning of the Securities Act, in any
such case to the extent that any such Losses arise out of such Person's failure
to send or give a copy of the final Offering Document, as the same may be then
supplemented or amended, within the time required by the Securities Act or other
applicable foreign securities Laws to the Person asserting the existence of an
untrue statement or alleged untrue statement or omission or alleged omission at
or prior to the written confirmation of the sale of Registrable Securities to
such Person if such statement or omission was corrected in such final Offering
Document. This indemnity shall be in addition to any liability the Company may
otherwise have. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such Holder or any indemnified
party and shall survive the transfer of such securities by such Holder.

          (b) Indemnification by the Selling Holder of Registrable Securities.
Each selling Holder of Registrable Securities agrees (severally and not jointly)
to indemnify and hold harmless, to the full extent permitted by law, the
Company, its directors and officers and each Person who controls the Company
(within the meaning of the Securities Act and the Exchange Act) from and against
any Losses resulting from any untrue statement of a material fact or any
omission of a material fact required to be stated in the Registration Statement
under which such Registrable Securities were Registered under the Securities Act
(including any final, preliminary or summary Prospectus contained therein or any
amendment thereof or supplement thereto or any documents incorporated by
reference therein), or necessary to make the statements therein (in the case of
a Prospectus or preliminary Prospectus, in light of the circumstances under
which they were made) not misleading, to the extent, but only to the extent,
that such untrue statement or omission is made in reliance upon and in
conformity with information furnished in writing by such selling Holder to the
Company specifically for inclusion in such Registration Statement and has not
been corrected in a subsequent writing prior to or concurrently with the sale of
the Registrable Securities to the Person asserting such loss, claim, damage,
liability or expense. In no event shall the liability of any selling Holder of
Registrable Securities hereunder be greater in amount than the dollar amount of
the proceeds received by such Holder under the sale of the Registrable
Securities giving rise to such indemnification obligation. Each Holder also
shall indemnify any underwriters of the Registrable Securities, their officers
and directors and each person who controls such underwriters (within the meaning
of the Securities Act) to the same extent as provided above with respect to the
indemnification of the Company.

          (c) Conduct of Indemnification Proceedings. Any Person entitled to
indemnification hereunder will (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification
(provided that any delay or failure to so notify the indemnifying party shall
relieve the indemnifying party of its obligations hereunder only to the extent,
if at all, that it is actually and materially prejudiced by reason of such delay
or failure) and (ii) permit such indemnifying party to assume the defense of
such claim with counsel reasonably satisfactory to the indemnified party;
provided that any Person entitled to

<PAGE>

                                                                              18

indemnification hereunder shall have the right to select and employ separate
counsel and to participate in the defense of such claim, but the fees and
expenses of such counsel shall be at the expense of such Person unless (i) the
indemnifying party has agreed in writing to pay such fees or expenses, (ii) the
indemnifying party shall have failed to assume the defense of such claim within
a reasonable time after receipt of notice of such claim from the Person entitled
to indemnification hereunder and employ counsel reasonably satisfactory to such
Person, (iii) the indemnified party has reasonably concluded (based on advice of
counsel) that there may be legal defenses available to it or other indemnified
parties that are different from or in addition to those available to the
indemnifying party, or (iv) in the reasonable judgment of any such Person, based
upon advice of its counsel, a conflict of interest may exist between such Person
and the indemnifying party with respect to such claims (in which case, if the
Person notifies the indemnifying party in writing that such Person elects to
employ separate counsel at the expense of the indemnifying party, the
indemnifying party shall not have the right to assume the defense of such claim
on behalf of such Person). If such defense is not assumed by the indemnifying
party, the indemnifying party will not be subject to any liability for any
settlement made without its consent, but such consent may not be unreasonably
withheld; provided that an indemnifying party shall not be required to consent
to any settlement involving the imposition of equitable remedies or involving
the imposition of any material obligations on such indemnifying party other than
financial obligations for which such indemnified party will be indemnified
hereunder. If the indemnifying party assumes the defense, the indemnifying party
shall not have the right to settle such action without the consent of the
indemnified party. No indemnifying party shall consent to entry of any judgment
or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such indemnified party of an
unconditional release from all liability in respect to such claim or litigation.
It is understood that the indemnifying party or parties shall not, in connection
with any proceeding or related proceedings in the same jurisdiction, be liable
for the reasonable fees, disbursements and other charges of more than one
separate firm admitted to practice in such jurisdiction at any one time from all
such indemnified party or parties unless (x) the employment of more than one
counsel has been authorized in writing by the indemnified party or parties, (y)
an indemnified party has reasonably concluded (based on advice of counsel) that
there may be legal defenses available to it that are different from or in
addition to those available to the other indemnified parties or (z) a conflict
or potential conflict exists or may exist (based on advice of counsel to an
indemnified party) between such indemnified party and the other indemnified
parties, in each of which cases the indemnifying party shall be obligated to pay
the reasonable fees and expenses of such additional counsel or counsels.

          (d) Contribution. The indemnification provided for under this
Agreement shall remain in full force and effect regardless of any investigation
made by or on behalf of the indemnified party or any officer, director or
controlling Person of such indemnified party and shall survive the transfer of
securities. If for any reason the indemnification provided for in paragraphs (a)
and (b) of this Section 3.1 is unavailable to an indemnified party or
insufficient to hold it harmless as contemplated by paragraphs (a) and (b) of
this Section 3.1, then the indemnifying party shall contribute to the amount
paid or payable by the indemnified party as a result of such Loss in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and the indemnified party on the other. The relative fault
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to

<PAGE>

                                                                              19

information supplied by the indemnifying party or the indemnified party and the
parties' relative intent, knowledge, access to information concerning the matter
with respect to which the claim was asserted and opportunity to correct or
prevent such untrue statement or omission. Notwithstanding anything in this
Section 3.1(d) to the contrary, no indemnifying party (other than the Company)
shall be required pursuant to this Section 3.1(d) to contribute any amount in
excess of the amount by which the net proceeds received by such indemnifying
party from the sale of Registrable Securities in the offering to which the
Losses of the indemnified parties relate exceeds the amount of any damages which
such indemnifying party has otherwise been required to pay by reason of such
untrue statement or omission. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 3.1(d) were determined by
pro rata allocation or by any other method of allocation that does not take
account of the equitable considerations referred to in the immediately preceding
paragraph. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation. If
indemnification is available under this Section 3.1, the indemnifying parties
shall indemnify each indemnified party to the full extent provided in Sections
3.1(a) and 3.1(b) without regard to the relative fault of said indemnifying
parties or indemnified party.

          3.2. Remedies. It is hereby agreed and acknowledged that it will be
impossible to measure in money the damage that would be suffered if the parties
fail to comply with any of the obligations herein imposed on them and that in
the event of any such failure, an aggrieved Person will be irreparably damaged
and will not have an adequate remedy at law. Any such Person shall, therefore,
be entitled (in addition to any other remedy to which it may be entitled in law
or in equity) to injunctive relief, including, without limitation, specific
performance, to enforce such obligations, and if any action should be brought in
equity to enforce any of the provisions of this Agreement, none of the parties
hereto shall raise the defense that there is an adequate remedy at law. In
addition, in the case of a material breach of this Agreement, CIASA or
Continental, as applicable, shall have the rights to terminate the Alliance
Agreement or the Services Agreement as described in and in accordance with those
agreements.

          3.3. Notices. All notices, other communications or documents provided
for or permitted to be given hereunder, shall be made in writing and shall be
given either personally by hand-delivery, by facsimile transmission, or by air
courier guaranteeing overnight delivery:

          (a)  if to the Company or to CIASA:

               Copa Holdings, S.A.
               Avenida Justo Arosmena y Calle 39
               Panama 1
               Panama
               Facsimile: +507 227-1952
               Attention: Pedro Heilbron

               with copies to:

               Galindo, Arias y Lopez
               Edif. Omanco

<PAGE>

                                                                              20

               Apartado 8629
               Panama 5
               Panama
               Facsimile: +507 263-5335
               Attention: Jaime A. Arias C.

               and to:

               Simpson Thacher & Bartlett LLP
               425 Lexington Ave.
               New York, New York 10017
               United States of America
               Facsimile: (212) 445-2502
               Attention: David L. Williams

          (b)  if to Continental:

               Continental Airlines, Inc.
               1600 Smith Street
               Houston, Texas 77002
               United States of America
               Facsimile: (713) 324-3099
               Attention: Senior Vice President - Asia/Pacific and Corporate
                          Development

               with copies to:

               Continental Airlines, Inc.
               1600 Smith Street
               Houston, Texas 77002
               United States of America
               Facsimile: (713) 324-5161
               Attention: Senior Vice President and General Counsel

          Each Holder, by written notice given to the Company in accordance with
this Section 3.3 may change the address to which notices, other communications
or documents are to be sent to such Holder. All notices, other communications or
documents shall be deemed to have been duly given: (i) at the time delivered by
hand, if personally delivered; (ii) when receipt is acknowledged in writing by
addressee, if by facsimile transmission and (iii) on the first business day with
respect to which a reputable air courier guarantees delivery; provided that
notices of a change of address shall be effective only upon receipt.

          3.4. Successors, Assigns and Transferees.

          The provisions of this Agreement shall be binding upon, and shall
inure to the benefit of, the respective successors and assigns of Continental
and CIASA; provided that the benefit of this Agreement may not be assigned or
transferred in whole or in part by Continental

<PAGE>

                                                                              21

or CIASA without the prior written consent of the other Party unless such
assignment or transfer is by a Party to a Permitted Transferee and such
Permitted Transfer is made in accordance with the terms of Section 2.1 of the
Shareholders Agreement; and provided, further, that no such assignment shall be
binding upon or obligate the Company to any such Permitted Transferee unless and
until the Company shall have received (i) notice of such assignment as herein
provided, (ii) a written agreement by the assigning or transferring party, in
form and substance reasonably satisfactory to the Company, to remain bound by
the terms of this Agreement and (iii) a written agreement of the Permitted
Transferee, in form and substance reasonably satisfactory to the Company, to be
bound by the terms of this Agreement.

          3.5. Recapitalizations, Exchanges, etc., Affecting Registrable
Securities. The provisions of this Agreement shall apply, to the full extent set
forth herein with respect to the Registrable Securities, to any and all
securities or capital stock of the Company or any successor or assign of the
Company (whether by merger, consolidation, sale of assets or otherwise) which
may be issued in respect of, in exchange for, or in substitution of such
Registrable Securities, by reason of any dividend, split, issuance, reverse
split, combination, recapitalization, reclassification, merger, consolidation or
otherwise.

          3.6. Governing Law; Arbitration.

          (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED WITHIN THE STATE.

          (b) (i) Any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, shall be settled by arbitration administered
in accordance with the International Arbitration Rules of the International
Chamber of Commerce Court of International Arbitration (the "ICC"). Judgment on
the award rendered by the arbitrators may be entered in any court having
jurisdiction thereof.

          (ii) The number of arbitrators shall be three, one of whom shall be
appointed by each of the parties and the third of whom shall be selected by
mutual agreement, if possible, within 30 days of the selection of the second
arbitrator and thereafter by the ICC (in which case the third arbitrator shall
not be a citizen of Panama or the United States) and the place of arbitration
shall be Miami, Florida. The language of the arbitration shall be English, but
documents or testimony may be submitted in any other language if a translation
is provided.

          (iii) The arbitrators will have no authority to award punitive damages
or any other damages not measured by the prevailing party's actual damages, and
may not, in any event, make any ruling, finding or award that does not conform
to the terms of the Agreement.

          (iv) Either party may make an application to the arbitrators seeking
injunctive relief to maintain the status quo until such time as the arbitration
award is rendered or the controversy is otherwise resolved. Either party may
apply to any court having jurisdiction hereof and seek injunctive relief in
order to maintain the status quo until such time as the arbitration award is
rendered or the controversy is otherwise resolved.

<PAGE>

                                                                              22

          3.7. Headings. The section and paragraph headings contained in this
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of this Agreement.

          3.8. Severability. Whenever possible, each provision or portion of any
provision of this Agreement will be interpreted in such manner as to be
effective and valid under applicable law but if any provision or portion of any
provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under any applicable law in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or portion of
any provision in such jurisdiction, and this agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision or portion of any provision had never been contained
therein.

          3.9. Amendment; Waiver.

          (a) This Agreement may not be amended or modified and waivers and
consents to departures from the provisions hereof may not be given, except by an
instrument or instruments in writing making specific reference to this Agreement
and signed by the Company, the Holders of a majority of Registrable Securities
then outstanding and, so long as they are Holders, Continental and CIASA. Each
Holder of any Registrable Securities at the time or thereafter outstanding shall
be bound by any amendment, modification, waiver or consent authorized by this
Section 3.9(a), whether or not such Registrable Securities shall have been
marked accordingly.

          (b) The waiver by any party hereto of a breach of any provision of
this Agreement shall not operate or be construed as a further or continuing
waiver of such breach or as a waiver of any other or subsequent breach. Except
as otherwise expressly provided herein, no failure on the part of any party to
exercise, and no delay in exercising, any right, power or remedy hereunder, or
otherwise available in respect hereof at law or in equity, shall operate as a
waiver thereof, nor shall any single or partial exercise of such right, power or
remedy by such party preclude any other or further exercise thereof or the
exercise of any other right, power or remedy.

          3.10. Counterparts. This Agreement may be executed in any number of
separate counterparts and by the parties hereto in separate counterparts each of
which when so executed shall be deemed to be an original and all of which
together shall constitute one and the same agreement.

<PAGE>

                                                                              23

          IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be duly executed as of the date first written above.

                                        COPA HOLDINGS, S.A.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        CORPORACION DE INVERSIONES AEREAS, S.A.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        CONTINENTAL AIRLINES, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------<PAGE>

                                                                   Exhibit 10.42

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
    SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                                    TREATMENT

                                   EMBRAER 190

                         PURCHASE AGREEMENT COM 0028-06

                                     BETWEEN

                          EMBRAER - EMPRESA BRASILEIRA

                               DE AERONAUTICA S.A.

                                       AND

                               COPA HOLDINGS, S.A.

<PAGE>

                                      INDEX

<TABLE>
<CAPTION>
ARTICLE                                                                     PAGE
-------                                                                     ----
<S>                                                                         <C>
1.  DEFINITIONS..........................................................     5
2.  SUBJECT..............................................................     8
3.  PRICE................................................................     8
4.  PAYMENT..............................................................     8
5.  DELIVERY.............................................................     9
6.  CERTIFICATION........................................................    10
7.  ACCEPTANCE AND TRANSFER OF OWNERSHIP.................................    10
8.  STORAGE CHARGE.......................................................    12
9.  DELAYS IN DELIVERY...................................................    12
10. INSPECTION AND QUALITY CONTROL.......................................    14
11. CHANGES..............................................................    14
12. WARRANTY.............................................................    16
13. PRODUCT SUPPORT PACKAGE..............................................    16
14. ASSIGNMENT...........................................................    16
15. RESTRICTIONS AND PATENT INDEMNITY....................................    18
16. MARKETING PROMOTIONAL RIGHTS.........................................    17
17. TAXES................................................................    19
18. APPLICABLE LAW.......................................................    17
19. JURISDICTION.........................................................    18
20. TERMINATION..........................................................    18
21. OPTION FOR THE PURCHASE OF ADDITIONAL AIRCRAFT.......................    19
22. INDEMNITY............................................................    21
23. NOTICES..............................................................    21
</TABLE>

<PAGE>

<TABLE>
<S>                                                                          <C>
24. CONFIDENTIALITY......................................................    22
25. SEVERABILITY.........................................................    22
26. NON-WAIVER...........................................................    22
27. INTEGRATED AGREEMENT.................................................    22
28. NEGOTIATED AGREEMENT.................................................    23
29. WAIVER OF JURY TRIAL.................................................    23
30. WAIVER OF IMMUNITY...................................................    23
31. PAYMENTS IN US DOLLARS...............................................    23
32. COUNTERPARTS.........................................................    24
33. ENTIRE AGREEMENT.....................................................    24
</TABLE>

<PAGE>

                                   ATTACHMENTS

"A" - AIRCRAFT SPECIFIC CONFIGURATION, FINISHING AND REGISTRATION MARKS

"B" - FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE

"C "- WARRANTY CERTIFICATE - MATERIAL AND WORKMANSHIP

"D" - PRICE ESCALATION FORMULA

"E" - **Material Redacted**

"F" - **Material Redacted**

"G" - **Material Redacted**

"H" - PERFORMANCE GUARANTEE
<PAGE>

                         PURCHASE AGREEMENT COM 0028-06

THIS AGREEMENT IS ENTERED INTO THIS ____ DAY OF FEBRUARY, 2006, BY AND BETWEEN
EMBRAER - EMPRESA BRASILEIRA DE AERONAUTICA S.A. AND COPA HOLDINGS, S.A., FOR
THE PURCHASE AND SALE OF EMBRAER AIRCRAFT.

THE SALE COVERED BY THIS AGREEMENT SHALL BE GOVERNED SOLELY BY THE TERMS AND
CONDITIONS HEREIN SET FORTH, AS WELL AS BY THE PROVISIONS SET FORTH IN THE
ATTACHMENTS HERETO.

THIS AGREEMENT SHALL NOT BE EFFECTIVE UNLESS AND UNTIL IT IS SIGNED BY AN
AUTHORIZED OFFICER OF COPA HOLDINGS, S.A. AND EXECUTED BY TWO AUTHORIZED
OFFICERS OF EMBRAER - EMPRESA BRASILEIRA DE AERONAUTICA S.A.

1.   DEFINITIONS

For the purpose of this Agreement, the following definitions are hereby adopted
by the Parties and, unless otherwise expressly provided, the singular includes
the plural, the masculine includes the feminine and neutral genders:

<TABLE>
<S>                                        <C>
1.1  "Actual Delivery Date"                shall mean, with respect to each Aircraft,
                                           the date on which Buyer obtains title to
                                           that Aircraft in accordance with Article 7.

1.2  "AD's"                                shall mean Airworthiness Directives issued
                                           by either the CTA or the Air Authority, in
                                           connection with and with respect to the
                                           Aircraft.

1.3  "Agreement" or "Purchase Agreement"   shall mean this Purchase Agreement
                                           DCT-.../2006 together with all attachments,
                                           supplements and exhibits hereto, all as
                                           modified and amended from time to time.

1.4  "Air Authority"                       shall mean the Unidad Administrativa
                                           Especial de Aviacion Civil ("UAEAC") of
                                           Colombia, or a successor from time to time
                                           charged with the administration of civil
                                           aviation in Colombia.

1.5  "Aircraft Basic Price"                shall mean the Aircraft price, as defined in
                                           Article 3.1.

1.6  "Aircraft Purchase Price"             shall mean, in respect of an Aircraft, the
                                           Aircraft Basic Price, escalated up to the
                                           Contractual Delivery Date of such Aircraft
                                           in accordance with and by application of the
                                           Escalation Formula.

1.7  "Aircraft"                            shall mean the EMBRAER 190LR aircraft
                                           (certification designation ERJ 190-100 LR)
                                           (the "EMBRAER 190 Aircraft"), manufactured
                                           by Embraer according to the
</TABLE>

<PAGE>

<TABLE>
<S>                                        <C>
                                           Preliminary Technical Description
                                           PTD-190/195-Rev.5 dated March 2005, (which,
                                           although not attached hereto, are
                                           incorporated herein by reference) and the
                                           Aircraft Specific Configurations, Finishing
                                           and Registration Marks described in the
                                           Attachment "A", for sale to Buyer pursuant
                                           to this Agreement, equipped with two engines
                                           GE CF-34-10E6A1, manufactured by General
                                           Electric Company, all cases in the condition
                                           and configuration required hereunder, and
                                           shall include Firm Aircraft and Option
                                           Aircraft unless the context requires
                                           otherwise.

1.8  "Buyer"                               shall mean Copa Holdings, S.A., a company
                                           with its address c/o Ave. Principal y Ave.
                                           Rotonda, Complejo Business Park, North
                                           Tower, Costa del Este, Panama City, Rep of
                                           Panama.

1.9  "Business Day(s)"                     shall mean a day other than a Saturday or
                                           Sunday on which banks are open for business
                                           in Sao Jose dos Campos, Sao Paulo, Rio de
                                           Janeiro, New York and Panama.

1.10 "Contractual Delivery Date"           shall mean the delivery date referred to in
                                           Article 5.

1.11 "CTA"                                 shall mean the Aerospace Technical Center of
                                           the Brazilian Ministry of Aeronautics.

1.12 "Day(s)                               shall mean natural calendar day(s).

1.13 "Embraer"                             shall mean Embraer - Empresa Brasileira de
                                           Aeronautica S.A., a Brazilian corporation
                                           with its principal place of business at Av.
                                           Brigadeiro Faria Lima, 2170 - Putim, Sao
                                           Jose dos Campos, Sao Paulo, Brazil.

1.14 "Escalation Formula"                  shall mean the escalation formula contained
                                           in Attachment "D".

1.15 "Firm Aircraft"                       shall mean the firm order Aircraft referred
                                           to in Article 2.1

1.16 "Initial Deposit"                     shall mean the initial non-refundable
                                           deposit referred to in Article 4.1.1.

1.17 "Major Changes"                       shall mean the changes to the design or
                                           approved specification of the Aircraft, as
                                           defined in Article 11.2.2.

1.18 "Mandatory Service Bulletins"         shall mean the service bulletins applicable
                                           to the Aircraft, which are issued by Embraer
                                           to implement the AD's
</TABLE>

<PAGE>

<TABLE>
<S>                                        <C>
                                           referred to under Article 11.4.

1.19 "Minor Changes"                       shall mean the changes to the design of the
                                           Aircraft defined as per the terms and
                                           conditions of Article 11.2.1.

1.20 "Option Aircraft Basic Price"         shall mean the unit price of the Option
                                           Aircraft, as per the terms and conditions of
                                           Article 21.2.

1.20 "Option Aircraft Initial Deposit"     shall mean the initial deposit referred to
                                           under Article 21.1.

1.21 "Option Aircraft Purchase Price"      shall mean the Option Aircraft Basic Price
                                           escalated in accordance with and by
                                           application of the Escalation Formulas
                                           **Material Redacted** as per the terms and
                                           conditions of Article 21.3.

1.22 "Option Aircraft"                     shall be the additional Aircraft that Buyer
                                           shall have the option to purchase as per the
                                           terms of Article 21.

1.23 "Parties"                             shall mean Embraer and Buyer.

1.24 "Product Support Package"             shall mean the products and Services to be
                                           provided by Embraer as per Article 13.

1.25  "Scheduled Inspection Date"          shall mean the date on which a certain
                                           Aircraft hereunder is available for
                                           inspection and acceptance by and subsequent
                                           delivery to Buyer, as per the terms and
                                           conditions of Article 7.1.

1.26 "Services"                            shall mean the familiarization and on-site
                                           support for the Aircraft, part of the
                                           Product Support Package, as specified in
                                           Attachment "B".

1.27 "Technical Publications"              shall mean the technical documentation
                                           pertaining and related to the Aircraft as
                                           listed in Exhibit 1 to Attachment "B".

1.28 "USD" or "US$"                        shall mean the legal currency of the United
                                           States of America.

1.29 "Working Day(s)"                      shall mean a day, other than Saturday,
                                           Sunday, or holiday, on which Embraer in Sao
                                           Jose dos Campos, SP, Brazil is open for
                                           business.
</TABLE>

References to Articles or Attachments in the main body of this Purchase
Agreement shall be deemed to be references to Articles of or Attachments to this
Agreement, respectively, except as the context requires otherwise.
<PAGE>

2.   SUBJECT

Subject to the terms and conditions of this Agreement:

2.1  Embraer shall sell and deliver and Buyer shall purchase and take delivery
     of five (5) Firm Aircraft;

2.2  Embraer shall provide to Buyer the Services and the Technical Publications;
     and

2.3  Buyer shall have the option to purchase up to ten (10) Option Aircraft, in
     accordance with Article 21.

3.   PRICE

3.1  Buyer agrees to pay Embraer, in United States dollars, the Aircraft Basic
     Price of USD **Material Redacted** for each Aircraft **Material Redacted**.

3.2  The Services and Technical Publications are to be provided **Material
     Redacted** to Buyer. Additional technical publications as well as other
     services shall be billed to Buyer in accordance with Embraer's rates
     prevailing at the time Buyer places a purchase order for such additional
     technical publications or other services.

3.3  The Aircraft Basic Price shall be escalated according to the Escalation
     Formula. Such price as escalated shall be the Aircraft Purchase Price and
     it will be provided to Buyer **Material Redacted** prior to each Aircraft
     Contractual Delivery Date.

4.   PAYMENT

4.1  The prices specified in the previous Article shall be paid by Buyer by wire
     transfer in immediately available United States dollars funds, to a bank
     account to be timely informed by Embraer to Buyer, as follows:

     4.1.1 A non-refundable Initial Deposit of **Material Redacted** per Firm
          Aircraft is due and payable **Material Redacted**.

     4.1.2 A **Material Redacted** percent **Material Redacted**%) **Material
          Redacted** progress payment in respect of each Aircraft **Material
          Redacted**, is due and payable **Material Redacted** prior to the
          relevant Aircraft Contractual Delivery Date**Material Redacted**.

     4.1.3 A **Material Redacted** progress payment in respect of each Aircraft
          **Material Redacted**, is due and payable **Material Redacted** prior
          to such relevant Aircraft Contractual Delivery Date**Material
          Redacted**.

     4.1.4 A **Material Redacted** progress payment in respect of each Aircraft
          **Material Redacted**, is due and payable **Material Redacted** prior
          to each relevant Aircraft Contractual Delivery Date**Material
          Redacted**.

<PAGE>

     4.1.5 The balance of the Aircraft Purchase Price in respect of an Aircraft,
          shall become due and payable upon acceptance of such Aircraft by
          Buyer.

4.2  Late Payments:

     In respect of any amounts which are or may become due and payable pursuant
     to Articles 4.1.1 through and including 4.1.4 which amounts are not paid
     within **Material Redacted** and payable as set forth in Article 4.1,
     interest shall accrue on the relevant amount at the rate of **Material
     Redacted** per annum (the "Default Rate") following the Due Date and ending
     on the date the relevant amount is received by EMBRAER In respect of
     accounts which may become due and payable pursuant to Article 4.1.5,
     interest shall accrue thereon at the rate set forth herein above. Without
     prejudice to Embraer's rights set forth in Article 4.3 below, interest
     accrued will be invoiced by Embraer on a monthly basis, beginning one month
     after **Material Redacted**, and payment thereof shall be made by Buyer in
     accordance with the instructions contained therein.

4.3  Termination for failure to make payments:

     Without prejudice to the payment of interest on late payments set forth
     above, should Buyer fail to make any payment on or before the due date,
     Embraer shall have the right, at its sole discretion, to either (i)
     postpone, the relevant Aircraft Contractual Delivery Date; or (ii)
     terminate this Agreement in relation to the affected Aircraft in accordance
     with Article 20.3, if such failure shall not have been cured within
     **Material Redacted** Days after the date on which Embraer has issued a
     written notice to Buyer of such failure.

4.4  Net payments:

     4.4.1 All payments to be made by Buyer under this Agreement shall be made
          without set-off or withholding whatsoever (except for Embraer Taxes,
          as defined in Article 17). If Buyer is obliged by law to make any
          deduction or withholding from any such payment (other than for Embraer
          Taxes), the amount due from Buyer in respect of such payment shall be
          increased to the extent necessary to ensure that, after the making of
          such deduction or withholding, Embraer receives a net amount equal to
          the amount Embraer would have received had no such deduction or
          withholding been required to be made.

4.5  Payment Date

     Unless otherwise agreed by the Parties in writing, payment of the amounts
     referred in Articles 4.1.2, 4.1.3, and 4.1.4 shall be made by Buyer on
     **Material Redacted** Day of the month on which each of such payments is
     due.

5.   DELIVERY

5.1  Aircraft: Subject to payment in accordance with Article 4 and the
     provisions of Articles 7 and 9, the Aircraft shall be tendered by Embraer
     to Buyer in the condition required hereunder, by means of a written notice,
     for inspection, acceptance and subsequent delivery in Fly Away Factory
     condition (i.e., Ex works (Incoterms 2000), with the

<PAGE>

     Aircraft to be flown away by Buyer), at Sao Jose dos Campos, State of Sao
     Paulo, Brazil, according to the following schedule:

<TABLE>
<CAPTION>
Aircraft Number   Contractual Delivery Date
---------------   -------------------------
<S>               <C>
       1            **Material Redacted**
       2            **Material Redacted**
       3            **Material Redacted**
       4            **Material Redacted**
       5            **Material Redacted**
       6.           **Material Redacted**
</TABLE>

6.   CERTIFICATION

6.1  By **Material Redacted**, the EMBRAER 190LR model aircraft shall be type
     certified by the Brazilian Airworthiness Authority (CTA) and type validated
     by (a) USA FAA in accordance with 14 CFR FAR 25 Amendment 25-84 effective
     10 July 1995 and (b) by the Air Authority, provided that any items that are
     under Buyer / an operator's regulatory responsibility pursuant to the Air
     Authority operational requirements and are not otherwise required to be
     provided by Embraer under this Agreement, shall be Buyer's responsibility.

6.2  The Aircraft shall be delivered to Buyer in conformity with **Material
     Redacted** and with the requirements set forth herein. Embraer will provide
     Buyer with an export certificate of airworthiness issued by CTA, which will
     certify that, as of the date of its issuance, the Aircraft has been
     inspected and found to conform in all respects to the CTA / UAEAC approved
     Type Design and in a condition **Material Redacted**. The condition of the
     Aircraft on delivery and the documentation delivered with the Aircraft,
     including the above mentioned export certificate of airworthiness, shall
     **Material Redacted**. Subject to the above, it shall be Buyer's
     responsibility to obtain such certificate of airworthiness for and the
     registration of the Aircraft, at Buyer's sole expense. **Material
     Redacted**.

7.   ACCEPTANCE AND TRANSFER OF OWNERSHIP

7.1  Unless Buyer is notified of any delay in delivery in accordance with and in
     conformity with the terms and conditions of this Agreement, the Aircraft
     shall be delivered in accordance with all of the provisions and schedules
     specified in Article 5 and otherwise in such condition as required under
     this Agreement. Embraer shall give Buyer **Material Redacted** Days advance
     facsimile notice of the date on which Embraer considers that each Aircraft
     will be ready for inspection, acceptance and subsequent delivery. Upon
     successful completion of ground and flight tests performed by Embraer,
     Buyer will receive a written confirmation of the Scheduled Inspection Date,
     on which date Buyer shall promptly start inspecting such Aircraft.

7.2  Buyer shall have up to **Material Redacted** Days, as necessary, to inspect
     and conduct an acceptance flight of each Aircraft prior to its delivery.
     Embraer will provide the fuel

<PAGE>

     and insurance for the Aircraft's acceptance flight in accordance with
     Embraer insurance policy.

7.3  If Buyer finds an Aircraft acceptable, Buyer shall promptly pay any and all
     amounts then due and payable pursuant to this Agreement, including but not
     limited to all amounts referred to under Articles 4.1, 4.2, 7.8 and 8 as
     applicable and accept delivery of such Aircraft, whereupon the necessary
     title and risk transfer documents shall be executed and exchanged in order
     to effect title transfer, subject to all express warranties set forth in
     this Agreement that by their terms survive delivery.

7.4  Buyer may decline to accept an Aircraft, which does not materially comply
     with the requirements of Article 6, the specification set forth in
     Attachment "A" or is not in an airworthy condition. For the purposes of
     **Material Redacted** an Aircraft shall be deemed not to be materially
     compliant when one or more of the Aircraft characteristics identified in
     Article 11.2.1 **Material Redacted** are adversely affected by such
     non-compliance vis-a-vis the specification set forth in Attachment A.

7.5  If Buyer declines to accept an Aircraft, Buyer shall immediately give
     Embraer written notice including its reasons for such refusal and Embraer
     shall have **Material Redacted** Days, commencing on the first Working Day
     after receipt of such notice, to take all necessary actions in order to
     resubmit the Aircraft to Buyer for re-inspection.

7.6  Buyer shall be allowed **Material Redacted** Days to re-inspect the
     Aircraft, starting immediately upon receipt of notice from Embraer that all
     necessary actions were taken. The period required for inspection as well as
     the one mentioned in Article 7.5 shall not be considered as part of the
     **Material Redacted** Day grace period provided for in Article 9.2.1. In
     the event Buyer declines to accept an Aircraft after **Material Redacted**,
     the Parties shall convene promptly after final refusal to accept the
     Aircraft in order to negotiate possible solutions. If within **Material
     Redacted** Days counted from the date in which Embraer receives notice of
     such final refusal to accept the Aircraft, Embraer and Buyer fail to reach
     an agreement, then **Material Redacted**.

7.7  Should Buyer fail to perform the acceptance and accept transfer of title to
     an Aircraft **Material Redacted** provided for and in accordance with this
     Article 7, Embraer shall be entitled, at its reasonable discretion, to
     either re-negotiate the terms of this Agreement with Buyer or terminate
     this Agreement with regard to the affected Aircraft pursuant to Article
     20.3. **Material Redacted**.

7.8  Notwithstanding the provisions of Article 7.7 and in addition to Embraer's
     rights pursuant to Article 20.3 and **Material Redacted** should Buyer fail
     to perform the acceptance and transfer of title to the Aircraft within the
     time period specified in Articles 7.2, 7.5 and 7.6, as applicable,
     **Material Redacted** interest will accrue at the rate of **Material
     Redacted** over the unpaid balance of the relevant Aircraft Purchase Price,
     prorated from the **Material Redacted**. Without prejudice to Embraer's
     rights set forth in Article 7.7, interest accrued will be invoiced by
     Embraer on a monthly basis, beginning one month after the date on which the
     Aircraft acceptance or transfer of title

<PAGE>

     should have been performed, and payment thereof shall be made by Buyer in
     accordance with the instructions contained therein.

8.   STORAGE CHARGE

8.1  A storage charge equal to USD**Material Redacted** per Day shall be charged
     by Embraer to Buyer commencing on:

     8.1.1 Buyer's failure to perform inspection or re-inspection of an
          Aircraft, per the date or time period properly specified in writing by
          Embraer, according to Articles 5 and/or 7, as applicable.

     8.1.2 Buyer's acceptance of an Aircraft when Buyer defaults in the
          fulfillment of any payment due and in taking title to such Aircraft
          promptly thereafter.

     8.1.3 Buyer's failure to remove an Aircraft from Embraer's facilities after
          title transfer has occurred.

8.2  If however, Buyer notifies Embraer in writing **Material Redacted** Days in
     advance of its expected delay in the performance of its obligations set
     forth in Articles 8.1.1, 8.1.2 and 8.1.3, the storage charge shall commence
     on the **Material Redacted** Day after the occurrence of the events set
     forth in Articles 8.1.1, 8.1.2 or 8.1.3, as applicable.

8.3  In the event that an Aircraft Contractual Delivery Date must be extended by
     Embraer from that which is designated in Article 5, due to Buyer's failure
     to perform any action or provide any information contemplated by this
     Agreement other than the ones specified in Article 8.1, the storage charge
     shall commence on the **Material Redacted** Day after the Contractual
     Delivery Date relative to such Aircraft.

8.4  Buyer shall pay the storage charge as set forth in Articles 8.1. or 8.3, as
     applicable, in United States dollars, per each month of delay or prorated
     for part thereof, within **Material Redacted** Days after the presentation
     of each invoice by Embraer.

9.   DELAYS IN DELIVERY

9.1  Excusable Delays:

     9.1.1 Embraer shall not be held liable or be found in default for any
          delays in the delivery of an Aircraft or in the performance of any act
          to be performed by Embraer under this Agreement, resulting from, but
          not restricted to, the following events or occurrences (hereinafter
          referred to as "Excusable Delays"): (a) force majeure (including, but
          not limited to acts of God, war or state of war, civil war,
          insurrection, fire, accident, explosion, flood, act of government,
          requisition, strike, labor disputes causing cessation or interruption
          of work, including but not limited to walkouts, sick-outs, protests or
          slowdowns), (b) inability despite due and all commercially reasonable
          efforts to procure any materials, equipment, accessories, parts or
          means of transport, or (c) any delay resulting from any

<PAGE>

          failure by Buyer to perform any action or provide any information
          contemplated by this Agreement or, (d) delays resulting from any other
          cause to the extent it is beyond Embraer's control or does not result
          from Embraer's fault or negligence.

     9.1.2 Within **Material Redacted** Days after the occurrence of any
          Excusable Delay, Embraer undertakes to send a written notice to Buyer
          including a description of the details involved and an estimate of the
          effects expected upon the timing of the performance of its contractual
          obligations.

     9.1.3 Any such delays shall extend the time for delivery of an Aircraft
          **Material Redacted** by the same number of Days required for the
          cause of delay to be remedied, subject in all cases to the provisions
          of Article 9.1.4. Embraer undertakes to use all commercially
          reasonable efforts to avoid or remove any cause of Excusable Delay and
          to minimize its effect on the Contractual Delivery Date of an Aircraft
          **Material Redacted**.

     9.1.4 If the cause of such Excusable Delay is such as to last longer than
          **Material Redacted** Days or to render the performance of this
          Agreement impossible, then Buyer shall have the right to terminate
          this Agreement without liability to either Party, except as provided
          for in Article 20.2.

     9.1.5 **Material Redacted**.

9.2  Non-Excusable Delays:

     9.2.1 If the delivery of an Aircraft is delayed for any reason that does
          not constitute an Excusable Delay (hereinafter a "Non-excusable
          Delay") by more than **Material Redacted** Days after the Contractual
          Delivery Date for such Aircraft, Buyer will be entitled to claim from
          Embraer and Embraer shall pay to Buyer liquidated damages equal to
          **Material Redacted**, up to the date that the Aircraft is available
          for inspection and acceptance by, and delivery to Buyer in conformity
          herewith, it being understood that such liquidated damages will not,
          in any event, exceed **Material Redacted** and that it will only be
          due and payable by Embraer to Buyer within five (5) Business Days
          after Buyer pays to Embraer the total Aircraft Purchase Price,
          **Material Redacted**.

     9.2.2 Upon the occurrence of any event, which constitutes a Non-excusable
          Delay in delivery of an Aircraft, Embraer undertakes to send a written
          notice to Buyer, within **Material Redacted**, including a description
          of the delay and an estimate of the effects expected upon the delivery
          of the Aircraft.

     9.2.3 It is agreed between the Parties that if, with respect to a delayed
          Aircraft, Embraer does not receive a claim for liquidated damages
          pursuant to Article 9.2.1, from Buyer, within **Material Redacted**
          Days after the Actual Delivery Date of such Aircraft, Buyer shall be
          deemed to have fully waived its right to such liquidated damages.

     9.2.4 **Material Redacted**

<PAGE>

9.3  **Material Redacted**Delay Due to Loss or Structural Damage of the
     Aircraft:

     Should any Aircraft be destroyed or damaged before acceptance to the extent
     that it becomes commercially useless, Buyer may, **Material Redacted**
     either take a replacement Aircraft at a later delivery date to be agreed by
     the Parties, or terminate this Agreement with respect to such Aircraft by
     notice to Embraer given in accordance with Article 23, without any
     liability to either Party. If this Agreement is terminated **Material
     Redacted**, such termination shall discharge the Parties from all
     obligations and liabilities of the Parties hereunder with respect to such
     Aircraft and Services, **Material Redacted**.

10.  INSPECTION AND QUALITY CONTROL

10.1 In order to effect inspection and acceptance of the Aircraft as set forth
     in Article 7, Buyer shall send one or more authorized representatives to
     Embraer's facilities in order to verify that the Aircraft was manufactured
     in accordance with the procedures, specifications and other requirements
     specified in this Agreement and according to all applicable quality control
     standards.

10.2 Buyer shall communicate to Embraer the names of its authorized
     representatives, by means of written notice, at least thirty (30) Days
     prior to the earliest delivery date specified in Article 5.

10.3 Such representatives, or other representatives indicated by Buyer, shall be
     authorized and duly empowered to sign the acceptance and documents and
     accept delivery of the Aircraft pursuant to Article 7.

10.4 For the purposes subject of this Article 10, Embraer shall provide
     communication facilities (telephone and facsimile) for Buyer's authorized
     representatives, as well as the necessary tools, measuring devices, test
     equipment and technical assistance as may be necessary to perform
     acceptance tests.

10.5 Buyer's authorized representatives shall observe Embraer's administrative
     rules and instructions while at Embraer's facilities.

10.6 Buyer's authorized representative shall be allowed exclusively in those
     areas related to the subject matter of this Article 10 and Buyer
     furthermore agrees to hold harmless Embraer from and against all and any
     kind of liabilities in respect to such representatives, for whom Buyer is
     solely and fully responsible under all circumstances and in any instance.

11.  CHANGES

11.1 In addition to the requirements of Article 6, each Aircraft will comply
     with the standards defined in Attachment "A" and shall incorporate all
     modifications which are classified as AD's mandatory by CTA or the Air
     Authority as provided in Article 11.4, or those agreed upon by Buyer and
     Embraer in accordance with this Article.

<PAGE>

11.2 The Parties hereby agree that changes can be made by Embraer in the design
     of the Aircraft, the definition of which and its respective classification
     shall be in compliance to the Aircraft type specification, as follows:

     11.2.1 Minor Changes: defined as those modifications which shall not
          adversely affect the Aircraft in any of the following characteristics:

     11.2.2 **Material Redacted**Major Changes: defined as those modifications
          which affect at least one of the topics mentioned in Article 11.2.1.

11.3 Embraer shall have the right, but not the obligation (except to the extent
     required by the CTA or applicable Aviation Authorities), to incorporate
     Minor Changes in the Aircraft still in the production line at its own cost,
     without the prior consent of Buyer.

11.4 Embraer shall convey those Major Changes that are classified as AD's by
     means of service bulletins approved by the Air Authority and/or CTA, as
     appropriate. Service bulletins that implement such ADs shall be referred to
     as Mandatory Service Bulletins. Embraer shall incorporate Mandatory Service
     Bulletins as follows:

     11.4.1 Compliance required before Actual Delivery Date: Embraer shall
          incorporate Mandatory Service Bulletins at Embraer's expense in a
          reasonable period of time if the compliance time for such Mandatory
          Service Bulletins is before the Actual Delivery Date. Embraer shall
          not be liable for **Material Redacted** resulting from incorporation
          of Mandatory Service Bulletins when the Aircraft has already passed
          the specific production stage affected by the incorporation of said
          change.

     11.4.2 Compliance required after Actual Delivery Date: During the
          applicable Aircraft warranty coverage periods as specified in
          Attachment "C", Embraer shall provide parts kits for Mandatory Service
          Bulletins that are issued either (i) before the relevant Aircraft's
          Actual Delivery Date but with a compliance time after such date or
          (ii) after the relevant Aircraft's Actual Delivery Date. Such kits
          shall be provided **Material Redacted**, excluding **Material
          Redacted** labor charges for installation of such Mandatory Service
          Bulletins**Material Redacted** Embraer shall not be liable for any
          downtime of delivered Aircraft that may be necessary for the
          incorporation of any changes. When flight safety is affected, such
          changes shall be immediately incorporated. If warranty coverage is not
          available or applicable pursuant to Attachment "C", the provisions of
          Article 11.5 shall apply.

     For the avoidance of doubt, the **Material Redacted** shall **Material
     Redacted** pursuant to **Material Redacted**.

11.5 Major changes, (other than those which are AD's mandatory per Article
     11.4), any change developed by Embraer as product improvement and any
     change required by Buyer, including those changes required by either the
     UAEAC as a consequence of alterations, amendments and/or innovations of its
     present applicable regulations, shall be considered as optional and,
     pursuant to Buyer's request, the corresponding cost proposals

<PAGE>

     shall be submitted by Embraer to Buyer for consideration and approval.
     Should Buyer not approve any such change, it shall not be incorporated in
     the Aircraft.

11.6 Any Major Change to the Aircraft, made in accordance with the foregoing
     paragraphs, which affect the provisions of Attachment "A", shall be
     incorporated in said Attachment by means of an amendment.

11.7 Except as concerns AD's and Minor Changes, the Aircraft shall, on the
     Scheduled Inspection Date, comply with the terms and conditions of
     Attachment "A" as from time to time amended pursuant to Article 11.6.
     Determination of such compliance shall be made by Buyer pursuant to Article
     7.

12.  WARRANTY

     The materials, design and workmanship relative to the Aircraft subject to
     this Agreement, will be warranted in accordance with the terms and
     conditions specified in Attachment "C". If Buyer intends to place the
     Aircraft on lease to another Party or to assign, transfer or novate the
     rights and obligations except as specified in Article 14, it is Buyer's
     responsibility to obtain the prior written consent of Embraer, which
     consent shall not be unreasonably withheld or delayed, as well as to
     provide Embraer written notice of any changes as to Buyer's designated
     lessee or assignee complying with item 5 of Attachment "C".

13.  PRODUCT SUPPORT PACKAGE

     Embraer shall supply to Buyer the Product Support Package described in
     Article 2 of Attachment "B", which includes Embraer's spare parts policy,
     the Technical Publications and the Services.

14.  ASSIGNMENT

     Buyer's rights and obligations hereunder may not be assigned, transferred
     or novated without the prior written consent of Embraer, which shall not be
     unreasonably withheld or delayed. Notwithstanding the foregoing, Buyer may
     immediately before delivery assign the rights to take delivery of an
     Aircraft and Buyer's rights pursuant to **Material Redacted** to any
     related person or entities or to any trust created by it or such persons or
     to any financing party whether by way of security in connection with the
     financing or the sale/leaseback of any Aircraft to be operated by
     AeroRepublica, S.A.

     Embraer's rights and obligations hereunder may not be assigned or delegated
     without the prior written consent of Buyer, which shall not be unreasonably
     withheld or delayed.

15.  RESTRICTIONS AND PATENT INDEMNITY

     This sale does not include the transfer of designs, copyrights, patents,
     and other similar rights to Buyer. Embraer warrants that the Aircraft and
     all systems, accessories, equipment, items and parts manufactured by or at
     the direction or utilizing designs of Embraer do not infringe any patent,
     copyright or other proprietary right of any person.

<PAGE>

     Subject to Buyer's duty to promptly advise Embraer of any alleged
     infringement (it being understood that any failure to so notify Embraer
     shall only relieve Embraer of its obligations pursuant hereto to the extent
     of actual prejudice suffered by Embraer as a direct result of such
     failure), Embraer shall indemnify, defend, protect and hold Buyer harmless
     with respect to any claims, suits, actions, judgments, liabilities, damages
     and costs, including reasonable attorney fees and expenses arising out of
     or in connection with any actual or alleged infringement by any Aircraft or
     any system, accessory, equipment, item or part installed on any Aircraft at
     the time of delivery of such Aircraft or thereafter, at Embraer's
     direction. In the event of any such infringement, and in addition to the
     foregoing obligations of Embraer, Embraer shall promptly, at its sole
     option and expense, either: (i) procure for Buyer the right to use the
     system, accessory or equipment or part; (ii) replace such system accessory,
     equipment or part with a non-infringing item or part; or (iii) modify such
     system, accessory, equipment or part to make it non-infringing.

     This indemnity shall not apply to Buyer-furnished equipment, nor to
     aircraft engines or APUs, nor to any system, accessory, equipment or part
     that was not manufactured to Embraer's detailed design, nor to any system,
     accessory, equipment or part manufactured to Embraer's detailed design
     without Embraer's consent.

16.  MARKETING PROMOTIONAL RIGHTS

     Embraer shall have the right to show for marketing purposes, free of any
     charge, the image of Buyer's Aircraft, painted with Buyer's colors and
     emblems, affixed in photographs, drawings, films, slides, audiovisual
     works, models or any other medium of expression (pictorial, graphic, and
     sculptural works), through all mass communications media such as
     billboards, magazines, newspaper, television, movie, theaters, as well as
     in posters, catalogues, models and all other kinds of promotional material.
     **Material Redacted** Embraer **Material Redacted**. In the event such
     Aircraft is sold to or operated by or for another company or person,
     Embraer shall be entitled to disclose such fact, as well as to continue to
     show the image of the Aircraft, free of any charge, for marketing purposes,
     either with the original. If accepted, said prohibition, however, shall in
     no way apply to the promotional materials or pictorial, graphic or
     sculptural works already existing or to any contract for the display of
     such materials or works already binding Embraer at the time of receipt of
     the notification. **Material Redacted**.

17.  TAXES

     Embraer shall pay all taxes **Material Redacted** as may be imposed under
     Brazilian laws. All other taxes, **Material Redacted** as may be imposed on
     the transactions subject of this Agreement, shall be borne by Buyer.

18.  APPLICABLE LAW

     This Agreement shall be construed in accordance with and its performance
     shall be governed by the laws of the State of New York, USA without regard
     to any conflict of law rules other than General Obligations Law 5-1401 and
     5-1402.

<PAGE>

19.  JURISDICTION

     All disputes arising in connection with this Agreement shall be finally
     settled in the courts of the United States District Court for the Southern
     District of New York located in the county of New York, provided that if
     such court lacks jurisdiction, disputes shall be resolved in the state
     courts for the state of New York sitting in the Borough of Manhattan, City
     of New York. The Parties hereby waive any other court of Jurisdiction that
     may be competent for settlement of disputes arising from this Agreement.

     **Material Redacted**

20.  TERMINATION

20.1 Should either Party fail to perform its obligations hereunder, the other
     Party shall be entitled to give notice of such failure and to require that
     such failure be remedied within the period specified in that notice, which
     period shall not be less than **Material Redacted** Days. Should such
     failure not be remedied within the period so specified, then the Party who
     gave notice of such failure shall be entitled to terminate this Agreement
     **Material Redacted**. The foregoing provision shall not apply in any
     circumstance where a specific right of termination is made available
     hereunder or will be made available hereunder upon the expiration of a
     specific period of time. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
     AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY IN ANY
     CIRCUMSTANCE UNDER THIS AGREEMENT FOR ANY CONSEQUENTIAL OR PUNITIVE DAMAGES
     WHICH MAY ARISE OUT OF, OR BE CONNECTED TO, ANY BREACH OR DEFAULT UNDER OF
     ANY TERM, CONDITION, COVENANT, WARRANTY, OR PROVISION OF THIS AGREEMENT,
     AND WHICH EITHER PARTY WOULD OTHERWISE BE ENTITLED TO UNDER ANY APPLICABLE
     LAW, INCLUDING BUT NOT LIMITED TO ANY CLAIMS SOUNDING IN CONTRACT, TORT,
     EQUITY OR STATUTE.

20.2 Buyer and Embraer shall have the right to terminate this Agreement in
     respect to the relevant Aircraft, upon the occurrence of any Excusable
     Delay of **Material Redacted** Days or longer, unless otherwise agreed in
     writing by the Parties, and Buyer shall have the right to terminate this
     Agreement in respect to the relevant Aircraft upon the occurrence of any
     Non-excusable Delay of **Material Redacted** Days or longer after the
     relevant Aircraft Contractual Delivery Date, such rights to be exercisable
     by written notice from one Party to the other to such effect no earlier
     than such **Material Redacted** Day, as applicable. Upon receipt of such
     notice of termination by Buyer or Embraer, as the case may be, **Material
     Redacted**. It is hereby agreed by the Parties that, in either case, no
     other indemnity shall be due by Embraer to Buyer.

     **Material Redacted**

20.3 If Buyer terminates this Agreement before the Actual Delivery Date of an
     Aircraft (except as provided in Article 20.1 and 20.2) or if Embraer
     terminates this Agreement in relation to an Aircraft, pursuant to Articles
     4.3 or 7.7, Buyer shall pay to Embraer (i)

<PAGE>

     damages in an amount equal to **Material Redacted**. For these purposes
     Embraer may **Material Redacted**. It is hereby agreed by the Parties that
     upon the receipt by Embraer of the amounts set forth above, no other
     indemnity shall be due by Buyer to Embraer.

     **Material Redacted**

20.4 If Buyer terminates this Agreement in respect to an Aircraft pursuant to
     Article 7.6, Embraer, shall **Material Redacted** with no other penalty or
     indemnity being due by Embraer to Buyer in this case.

     **Material Redacted**

20.5 **Material Redacted**

21.  OPTION FOR THE PURCHASE OF ADDITIONAL AIRCRAFT

     Buyer shall have the option to purchase ten (10) additional Option
     Aircraft, to be delivered in accordance with the following Option Aircraft
     contractual delivery date:

<TABLE>
<CAPTION>
 Option     Contractual Delivery                            Option     Contractual Delivery
Aircraft           Month               Exercise Date       Aircraft           Month               Exercise Date
--------   ---------------------   ---------------------   --------   ---------------------   ---------------------
<S>        <C>                     <C>                     <C>        <C>                     <C>
1          **Material Redacted**   **Material Redacted**   6          **Material Redacted**   **Material Redacted**
2          **Material Redacted**   **Material Redacted**   7          **Material Redacted**   **Material Redacted**
3          **Material Redacted**   **Material Redacted**   8          **Material Redacted**   **Material Redacted**
4          **Material Redacted**   **Material Redacted**   9          **Material Redacted**   **Material Redacted**
5          **Material Redacted**   **Material Redacted**   10         **Material Redacted**   **Material Redacted**
</TABLE>

     The Option Aircraft will be supplied in accordance with the following terms
     and conditions:

21.1 **Material Redacted** is due and payable by Buyer to Embraer in accordance
     with ** Material Redacted **.

21.2 The unit basic price of the Option Aircraft shall be equal to the unit
     Aircraft Basic Price, provided that such Option Aircraft be delivered
     within the delivery period above mentioned and in the same configuration,
     specification and installations specified in Attachment "A", as it is
     written on the date of signature of this Agreement, determining the Option
     Aircraft Basic Price.

<PAGE>

21.3 The unit basic price of each relevant Option Aircraft above mentioned shall
     be escalated according to the escalation formula subject of Attachment "D",
     determining the Option Aircraft Purchase Price.

21.4 The payment of the Option Aircraft Purchase Price shall be made according
     to the following:

     21.4.1 **Material Redacted** shall apply ** Material Redacted**

     21.4.2 A progress payment of **Material Redacted** percent (**Material
          Redacted**%) of the unit Option Aircraft Basic Price less the relevant
          Option Aircraft Initial Deposit is due and payable **Material
          Redacted** prior to each relevant Option Aircraft contractual delivery
          date.

     21.4.3 A progress payment of **Material Redacted** percent (**Material
          Redacted**%) of the unit Option Aircraft Basic Price is due and
          payable **Material Redacted** prior to each relevant Option Aircraft
          contractual delivery date.

     21.4.4 A progress payment of **Material Redacted** percent (**Material
          Redacted**%) of the unit Option Aircraft Basic Price is due and
          payable **Material Redacted** prior to each relevant Option Aircraft
          contractual delivery date.

     21.4.5 The balance of each relevant Option Aircraft Purchase Price is due
          and payable upon acceptance of each relevant Option Aircraft by Buyer.

     21.4.6 The provisions of Article 4.3 through 4.5 shall apply
          mutatis-mutandis, to the payments to be made by Buyer towards the
          Option Aircraft.

21.5 Buyer has the option to purchase the Option Aircraft **Material Redacted**.
     Exercise of each **Material Redacted** shall be accomplished by means of a
     written notice from Buyer delivered to Embraer by mail, return receipt
     requested, express delivery or facsimile, no later than the "Exercise Date"
     **Material Redacted** otherwise **Material Redacted**.

     On the **Material Redacted** Exercise Date, Buyer shall inform Embraer
     **Material Redacted** will be exercised or not. In the event on the
     Exercise Date Buyer elects to not exercise **Material Redacted**, Buyer's
     options **Material Redacted**.

     If, however, in the Exercise Date Buyer elects to exercise its option
     **Material Redacted**, Buyer will **Material Redacted**, provided
     **Material Redacted** in Embraer's **Material Redacted**.

21.6 If the options are confirmed by Buyer as specified above, (a) an amendment
     to this Agreement shall be executed by and between the Parties within
     thirty (30) Days following the Option Aircraft option exercise date,
     setting forth the terms and conditions

<PAGE>

     applicable to, if any, exclusively to the Option Aircraft and (b) the
     **Material Redacted**.

21.7 For the avoidance of any doubt, the terms and conditions contained in this
     Agreement shall also apply to any exercised Option Aircraft, with the
     exception that the product support package to be applied to the exercised
     Option Aircraft shall be as described in Article 2 of Attachment "B".

21.8 **Material Redacted**

22.  INDEMNITY

     Buyer agrees to indemnify and hold harmless Embraer and Embraer's officers,
     agents, employees and assignees from and against all liabilities, damages,
     losses, judgments, claims and suits, including costs and expenses incident
     thereto, which may be suffered by, accrued against, be charged to or
     recoverable from Embraer and/or Embraer's officers, agents, employees and
     assignees by reason of loss or damage to property or by reason of injury or
     death of any person resulting from or in any way connected with the
     performance of services by employees, representatives or agents of Embraer
     for or on behalf of Buyer related to Aircraft delivered by Embraer to
     Buyer, including, but not limited to, technical operations, maintenance,
     and training services and assistance performed while on the premises of
     Embraer or Buyer, while in flight on Buyer-owned Aircraft or while
     performing any other service, at any place, in conjunction with the
     Aircraft operations of Buyer, except to the extent caused by Embraer's
     willful misconduct or gross negligence.

23.  NOTICES

     All notices permitted or required hereunder shall be in writing in the
     English language and sent, by recognized international courier service or
     facsimile, to the attention of the Director of Contracts as to Embraer and
     of the CEO as to Buyer, to the addresses indicated below or to such other
     address as either Party may, by written notice, designate to the other. All
     notices shall be deemed to have been duly made, given and received, only
     when properly addressed (as set forth below): (i) on the date received by
     personal delivery; or (ii) on the date received when deposited with a
     internationally recognized courier service; or (iii) five business days
     after sending, when sent via Certified Mail, Return Receipt Request; or
     (iv) upon receipt when sent via facsimile (with a second copy sent via
     Mail) to the facsimile number set forth below and a confirmation of receipt
     is received by the sending Party:

23.1 EMBRAER:

               EMBRAER - Empresa Brasileira de Aeronautica S.A.
               Av. Brigadeiro Faria Lima, 2170
               12.227-901 Sao Jose dos Campos - SP - Brasil
               Telephone: (+55 12) 3927-1410
               Facsimile: (+55 12) 3927-1257

<PAGE>

23.2 BUYER:

               COPA HOLDINGS, S.A.
               Complejo Business Park - North Tower
               Costa del Este
               Panama City, Panama
               Fax: 507-304-2672

24.  CONFIDENTIALITY

     Neither Buyer nor Embraer shall disclose the terms of this Agreement except
     as needed to its officers, employees, auditors, insurers (brokers) and
     legal advisors and except (a) as required by law or legal process, (b) to a
     prospective financing party in connection with the financing of Aircraft
     (limited to assignable provisions), or (c) with the prior written consent
     of the other party. In addition, Buyer and Embraer may disclose the terms
     of this Agreement to shareholders who hold more than ten percent (10%) of
     their respective common shares, provided that (i) such shareholders are
     not, in the case of Buyer, competitors or affiliates of competitors of
     Embraer in the business of manufacturing aircraft, or in the case of
     Embraer, competitors or affiliates of competitors of Buyer or any affiliate
     of either Buyer or AeroRepublica, S.A. in the business of a scheduled
     airline, and (ii) such shareholders, to the extent not officers of a Party
     shall have executed a confidentiality agreement with the other Party.
     Without limiting the foregoing, in the event either Party is legally
     required to disclose the terms of this Agreement, each Party agrees to
     exert its best efforts to request confidential treatment of the articles
     and conditions of this Agreement relevantly designated by the other as
     confidential.

25.  SEVERABILITY

     If any provision or part of a provision of this Agreement or any of the
     Attachments shall be, or be found by any authority or court of competent
     jurisdiction to be, illegal, invalid or unenforceable, such illegality,
     invalidity or unenforceability shall not affect the other provisions or
     parts of such provisions of this Agreement, all of which shall remain in
     full force and effect.

26.  NON-WAIVER

     Except as otherwise specifically provided to the contrary in this
     Agreement, any Party's refrain from exercising any claim or remedy provided
     for herein shall not be deemed a waiver of such claim or remedy, and shall
     not relieve the other Party from the performance of such obligation at any
     subsequent time or from the performance of any of its other obligations
     hereunder.

27.  INTEGRATED AGREEMENT

     All attachments and exhibits referred to or delivered in connection with
     this Agreement and/or attached hereto are, by such reference or attachment,
     incorporated in this Agreement to the same extent as if fully set forth
     herein.

<PAGE>

28.  NEGOTIATED AGREEMENT

     Buyer and Embraer agree that this Agreement, including all of its
     Attachments, has been the subject of discussion and negotiation and is
     fully understood by the Parties, and that the rights, obligations and other
     mutual agreements of the Parties contained in this Agreement are the result
     of such complete discussion and negotiation between the Parties.

29.  WAIVER OF JURY TRIAL

     EACH OF EMBRAER AND BUYER HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL
     PROCEEDING TO WHICH THEY ARE BOTH PARTIES INVOLVING, DIRECTLY OR
     INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN
     ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT.

30.  WAIVER OF IMMUNITY

     To the extent that either party may in any jurisdiction in which
     proceedings may at any time be taken for the determination of any question
     arising under or for the enforcement of this Agreement be entitled to claim
     or otherwise be accorded for itself or its respective property, assets or
     revenues immunity fro suit or attachment (whether in aid of execution,
     before judgment or otherwise) or other legal process, and to the extent
     that in any such jurisdiction, there may be attributed to either party, or
     its respective property, assets or revenues such immunity (whether or not
     claimed), both Parties hereby irrevocably agree not to claim and waive such
     immunity to the fullest extent permitted by the law of such jurisdiction.

31.  PAYMENTS IN US DOLLARS

     All amounts to be paid hereunder shall be paid in United States dollars
     ("Dollars"), in immediately available funds. The specifications of Dollars
     in this transaction is of the essence. The obligations of either party in
     respect of payments to be made hereunder shall not be discharged by an
     amount paid in another currency, whether pursuant to a judgment or
     otherwise, to the extent that the amount so paid on prompt conversion to
     Dollars under normal banking procedures does not yield the amount of
     Dollars owing to the party receiving the same. If a party receives an
     amount in respect of the other party's liability under this Agreement or if
     such liability is converted into a claim, proof, judgment or order in a
     currency other than Dollars, the party liable for payment will indemnify
     the party to whom payment is to be made an in independent obligation
     against any loss arising out of or as a result of such receipt or
     conversion. If the amount received by such party, when converted into
     Dollars (at the market rate at which the receiving party is able on the
     relevant date to purchase Dollars in New York with that other currency) is
     less than the amount owed in Dollars the party liable for such payment
     hereunder will, forthwith on demand, pay to the party entitled to receive
     such payment an amount in Dollars equal to the deficit.

<PAGE>

32.  COUNTERPARTS

     This Agreement may be signed by the Parties in any number of separate
     counterparts with the same effect as if the signatures thereto and hereto
     were upon the same instrument and all of which when taken together shall
     constitute one and the same instrument.

33.  ENTIRE AGREEMENT

     This Agreement constitutes the entire agreement of the Parties with respect
     to the matters contained herein and supersedes all previous and connected
     negotiations, representations and agreements between the Parties, whether
     in writing or other form. This Agreement may not be altered, amended or
     supplemented except by a written instrument executed by the Parties.
<PAGE>

                                 ATTACHMENT "A"
                             AIRCRAFT CONFIGURATION

1.   STANDARD AIRCRAFT

     The EMBRAER 190 Aircraft shall be manufactured according to the standard
     configuration specified in Embraer's Technical Description TD-190 Rev.6
     dated as of December **Material Redacted**.

2.   OPTIONAL EQUIPMENT

     2.1  OPTIONS TO STANDARD AVIONICS CONFIGURATION

          **Material Redacted**

     2.2  OPTIONAL SYSTEM/OTHER EQUIPMENT

          a)   GE CF34-10E6A1 Engines

          b)   LR Version

          **Material Redacted**

     2.3  INTERIOR OPTIONAL ITEMS

          **Material Redacted**

          **Material Redacted**

          **Material Redacted**

3.   FINISHING

     The Aircraft will be delivered to Buyers as follows:

     3.1  EXTERIOR FINISHING:

     The fuselage of the Aircraft shall be painted according to Buyer's
     designated colors and paint scheme which shall be supplied to Embraer by
     Buyer on or before **Material Redacted** months prior to the relevant
     Aircraft Contractual Delivery Date.

     The wings and the horizontal stabilizer shall be supplied in the standard
     colors, i.e., gray BAC707.

     3.2  INTERIOR FINISHING:

     Buyer shall inform Embraer on or before **Material Redacted** months prior
     to the relevant Aircraft Contractual Delivery Date of its choice of
     materials and colors of all and any item of interior finishing such as seat
     covers, carpet, floor lining on galley areas, side walls and overhead
     lining, galley lining and curtain. The above-mentioned schedule for
     definition of interior finishing shall only be applicable if Buyer selects
     its materials from the choices offered by and available at Embraer. In case
     Buyer opts to use different materials and or patterns, such schedule shall
     be **Material Redacted** by the time Buyer informs Embraer its intention to
     use such different materials and patterns.

     3.3  BUYER FURNISHED AND BUYER INSTALLED EQUIPMENT (BFE AND BIE):

     Buyer may choose to have carpets, tapestries, seat covers and curtain
     fabrics supplied to Embraer for installation in the Aircraft as BFE.
     Materials shall conform to the required standards and comply with all
     applicable regulations and airworthiness requirements. Delays in the
     delivery of BFE equipment or quality restrictions that prevent the
     installation thereof in the time frame required by the Aircraft
     manufacturing process shall entitle Embraer to either delay the delivery of
     the Aircraft or present the Aircraft to Buyer

<PAGE>

                                 ATTACHMENT "A"
                             AIRCRAFT CONFIGURATION

     without such BFE, in which case Buyer **Material Redacted** of the Aircraft
     ** Material Redacted**. All BFE equipment shall be delivered to Embraer in
     DDP - Embraer facilities in Sao Jose dos Campos, SP, Brazil (Incoterms
     2000) conditions.

     The Aircraft galleys have provisions for the following BIE items that,
     unless timely agreed by the Parties, are not supplied or installed by
     Embraer: Trolleys, ovens, coffee makers, hot jugs and standard units.

     The following items will be BFE and shall be provided by Buyer in the
     conditions stated herein: demo vest, demo mask, trolleys and coffee maker.

4.   REGISTRATION MARKS AND TRANSPONDER CODE

     The Aircraft shall be delivered to Buyer with the registration marks
     painted on them. The registration marks and the transponder code shall be
     supplied to Embraer by Buyer no later than ninety (90) Days before each
     relevant Aircraft Contractual Delivery Date.

IT IS HEREBY AGREED AND UNDERSTOOD BY THE PARTIES THAT IF THERE IS ANY CONFLICT
BETWEEN THE TERMS OF THIS ATTACHMENT "A" AND THE TERMS OF THE PRELIMINARY
TECHNICAL DESCRIPTION ABOVE REFERRED, THE TERMS OF THIS ATTACHMENT "A" SHALL
PREVAIL.

<PAGE>

                              **Material Redacted**

**Material Redacted**
<PAGE>

                                  ATTACHMENT B
                   FERRY EQUIPMENT AND PRODUCT SUPPORT PACKAGE

1. FERRY EQUIPMENT AND ASSISTANCE

     1.1  If it is necessary for any ferry equipment to be installed by Embraer
          for the ferry flight of any Aircraft between Brazil and Colombia,
          Embraer will make available a standard ferry equipment to Buyer
          (hereinafter the "Kit"), at **Material Redacted**, except as set forth
          below. In this case, Buyer shall immediately upon its arrival in
          Colombia, remove the Kit from the Aircraft and return it to Embraer in
          Brazil at **Material Redacted**, including the necessary insurance.

          If Embraer provides the Kit to Buyer and if the Kit is either
          utilized, whether totally or not, or if the Kit is not returned by
          Buyer, complete and in the same condition **Material Redacted** as it
          was delivered to Buyer, Buyer shall pay Embraer the **Material
          Redacted**.

          In such case, the original Kit shall become the property of Buyer, and
          Buyer shall make the above mentioned payment to Embraer upon
          presentation of a sight draft by Embraer.

     1.2  Embraer shall make a representative available on board of the first
          two (2) Firm Aircraft during their ferry flight in order to assist the
          Buyer's flight crew in the communication with Brazilian custom
          clearances and Aircraft refueling individuals and to assist in
          obtaining support from Embraer in case any such support becomes
          necessary during the Brazilian portion of the ferry flight. Such
          representative shall remain on board of the Aircraft until the last
          stop in Brazilian territory. Any other arrangement shall be requested
          by Buyer no less than thirty (30) Business Days prior to the relevant
          Aircraft Contractual Delivery Date and shall be contingent upon the
          concurrence of Embraer at its sole criteria, such concurrence not to
          be unreasonably withheld.

2. PRODUCT SUPPORT PACKAGE

     2.1  MATERIAL SUPPORT

          2.1.1 SPARES POLICY

               Embraer guarantees the supply of spare parts, ground support
               equipment and tooling, except engines and its accessories,
               hereinafter referred to as "Spare(s)", for the Aircraft for a
               period of **Material Redacted** years after **Material Redacted**
               delivery of the last aircraft of the same type **Material
               Redacted**. Except as may otherwise be expressly set forth
               herein, such Spares shall be supplied according to the prevailing
               availability, sale conditions, delivery schedule and effective
               price on the date of acceptance by Embraer of the purchase order.
               The Spares may be supplied either by Embraer in Brazil or through
               its subsidiaries or distribution centers located abroad.

          2.1.2 RSPL

               As soon as reasonably practicable, but no later than **Material
               Redacted** months prior to the first Aircraft delivery date,
               Embraer shall present to Buyer a

<PAGE>

                                                                               2

               recommended Spare provisioning list (the "RSPL"). The objective
               of the RSPL is to provide Buyer with a detailed list of Spares
               that will be reasonably necessary to support the initial
               operation and maintenance of the Aircraft by Buyer. Such
               recommendation will be made in consultation with Buyer and be
               based on the experience of Embraer and on the operational
               parameters established by Buyer considering the entire EMBRAER
               190 fleet composed by the Aircraft subject of this Agreement, and
               the EMBRAER 190 aircraft subject of Purchase Agreement
               DCT-006/2003. Buyer shall be fully responsible for the
               administration of such Spares.

               Embraer will provide a qualified team to attend pre-provisioning
               conferences as necessary to discuss Buyer requirements and the
               RSPL as well as any available spare parts support programs
               offered by Embraer. Such meeting shall be held at a mutually
               agreed upon place and time.

               Buyer may elect to acquire all the items contained in the RSPL or
               to combine a partial acquisition of the RSPL items with a
               participation in the special spare parts support programs,
               available from Embraer.

               Buyer may acquire the items contained in the RSPL directly from
               Embraer or directly from Embraer's vendors. For the items
               contained in the RSPL that Buyer elects to purchase directly from
               Embraer (the "IP Spares"), Buyer must place a purchase order with
               Embraer on or before **Material Redacted** Days prior to the
               first Aircraft Contractual Delivery Date in order to have the IP
               Spares available in stock by **Material Redacted**. For purchase
               orders placed by Buyer out of the schedule set forth above, the
               IP Spares shall be provided to Buyer in accordance with the
               quoted lead times. Embraer will deliver the IP Spares in
               **Material Redacted** condition, at the port of clearance
               indicated by Embraer.

               As requested by Buyer, but in no case **Material Redacted**,
               Embraer will update the data of the RSPL incorporating
               engineering and price changes. Embraer will maintain a master
               copy of the RSPL updated until **Material Redacted**.

          2.1.3 CREDIT FOR SURPLUS IP SPARES

               Embraer offers to Buyer a program for certain surplus IP Spares
               manufactured by Embraer and which were recommended in writing by
               Embraer limited to the quantities, part numbers and serial
               numbers (if applicable) identified in the relevant invoices. Such
               program will provide terms no less favorable than the following:

               a.   Credit Program: During the period commencing **Material
                    Redacted** years after delivery of the first Aircraft under
                    the Purchase Agreement of which this is an Attachment and
                    ending **Material Redacted** years after such delivery,
                    Embraer will, upon receipt of a written request and subject

<PAGE>

                                                                               3

                    to the exceptions and conditions in this paragraph "a", and
                    in paragraphs "b", "c", "d" and "e" of this section, offer a
                    credit for new and unused IP Spares manufactured by Embraer
                    (i) which have been supplied by Embraer as IP Spares for the
                    Aircraft subject of this Agreement and (ii) which are
                    surplus to Buyer's needs. Such credit may be used toward the
                    purchase of Spares manufactured by Embraer, Technical
                    Publications or Services (excluding training) offered by
                    Embraer.

               b.   EXCEPTIONS: Embraer will not issue credits for IP Spares
                    which were purchased by Buyer in excess of or differently
                    from the Spares recommended in writing by Embraer to Buyer
                    by the IPL as initial provisioning for the Aircraft (as
                    amended from time to time by agreement of the Parties) and
                    for IP Spares which have become obsolete or have been
                    superseded by another part as a result of (i) Buyer's
                    modification of an Aircraft for which the IP Spares were
                    purchased; (ii) Embraer design improvements (except for IP
                    Spares which have become obsolete because of a defect in
                    design); (iii) IP Spares which are shelf-life limited;
                    (iv)damaged IP Spares; or (v) IP Spares that were not stored
                    in accordance with OEM guidelines.

               c.   CREDIT VALUES: The credit for each IP Spare to be issued by
                    Embraer will be: **Material Redacted** an amount equal to
                    **Material Redacted**.

               d.   DELIVERY OF SURPLUS IP SPARES: IP Spares for which a credit
                    has been requested shall be delivered by Buyer, freight and
                    insurance prepaid, to Embraer's plant in Sao Jose dos
                    Campos, SP, Brazil, or any other destination as Embraer may
                    reasonably designate. All returned IP Spares are subject to
                    Embraer's quality control inspection and acceptance. All IP
                    Spares which are rejected by Embraer's quality control
                    and/or are included in the exceptions set forth in paragraph
                    a.1 hereinabove, will be returned to Buyer at Buyer's
                    expense, no credit being due in this case.

               e.   CREDIT ISSUE: After Embraer's acceptance of those IP Spares
                    suitable for the credit program, under the terms of this
                    Agreement, Embraer will notify the available credit amount
                    to Buyer and provide all relevant information as to credit
                    utilization.

          2.1.4 OTHER SPARES SERVICES

               AOG services: Embraer will maintain a call center for the AOG
               (Aircraft On Ground) services, twenty four (24) hours a day,
               seven (7) days a week. All the contacts with the call center can
               be made through TOLL FREE numbers (phone and fax) and e-mail.
               Embraer will also maintain the regular direct lines (phone and
               fax), in case of failures. The information concerning TOLL FREE,
               regular lines and e-mail address can be obtained through the
               Customer Account Manager designated to Buyer by Embraer or
               through Embraer's Customer Service offices.

<PAGE>

                                                                               4

               Embraer will deliver parts under AOG from the nearest location to
               Buyer's facilities, provided that the part is available at this
               location at the moment of the request **Material Redacted**.

               Other than AOG orders, Buyer may expedite spare parts orders as
               spare parts critical orders (imminent AOG or work stoppage
               situation) or as spare parts routine expedite orders (urgent
               stock replenishment - "USR"). Embraer will deliver expedite spare
               parts ordered, within the following lead times:

<TABLE>
<CAPTION>
                        **Material Redacted**   **Material Redacted**   **Material Redacted**
                        ---------------------   ---------------------   ---------------------
<S>                     <C>                     <C>                     <C>
**Material Redacted**   **Material Redacted**   **Material Redacted**   **Material Redacted**
**Material Redacted**   **Material Redacted**   **Material Redacted**   **Material Redacted**
**Material Redacted**   **Material Redacted**   **Material Redacted**   **Material Redacted**
</TABLE>

               Routine and/or Critical Spares: Embraer will deliver routine
               and/or critical Spares (other than AOG Spares) **Material
               Redacted**, depending on where the purchase order was placed with
               or otherwise agreed between Embraer and Buyer. Routine and/or
               critical Spares shall be delivered according to their lead times,
               depending upon the purchase order priority and with the
               respective authorized release certificate or any similar document
               issued by a duly authorized person.

               Upon receipt of an order from Buyer, according to the above
               referred terms, Embraer shall send to Buyer the shipping
               information (airwaybill number and flight date and number) after
               receipt of such information from the freight forwarder indicated
               by Buyer in the shipping instructions provided to Embraer by
               Buyer in the relevant order.

     2.2  AIRCRAFT TECHNICAL PUBLICATIONS:

          2.2.1 AIRCRAFT PUBLICATIONS

               Embraer shall supply, at **Material Redacted**, copies of
               operational and maintenance publications applicable thereto, in
               the English language and in the quantities as specified in
               Exhibit "1" to this Attachment "B". Such publications are issued
               under the applicable specification **Material Redacted**.

               The revision service for these publications is provided,
               **Material Redacted**, including mailing services (except for air
               cargo shipping) and the software license fee for the CD ROM,
               **Material Redacted**.

          2.2.2 VENDOR ITEMS PUBLICATIONS

<PAGE>

                                                                               5

               With respect to vendor items installed in the Aircraft which have
               their own publications, Buyer will receive them in the quantity
               specified in Exhibit "1" to this Attachment "B", in their
               original content and printed form, directly from the suppliers,
               which are also responsible to keep them continuously updated
               through a direct communication system with Buyer.

          2.2.3 Within **Material Redacted** months prior to the Contractual
               Delivery Date of the first Aircraft, Embraer shall **Material
               Redacted**, and Buyer shall **Material Redacted** before the
               first Aircraft Contractual Delivery Date, **Material Redacted**.

          2.2.4 The Parties further understand and agree that in the event Buyer
               elects not to take all or any one of the publications above
               mentioned, or revisions thereof, no refund or other financial
               adjustment of the Aircraft Basic Price will be made since such
               publications are offered at no charge to Buyer.

     2.3  SERVICES

               Embraer shall provide familiarization programs and on-site
               support for the Aircraft (the "Services") in accordance with the
               terms and conditions described below:

          2.3.1 Familiarization Programs:

               a.   Familiarization program specified below is being offered at
                    **Material Redacted**, except for **Material Redacted**. The
                    familiarization programs shall be conducted in accordance
                    with the customer's training program and with all applicable
                    regulations and requirements of the FAA.

               b.   Notwithstanding the eventual use of the term "training" in
                    this paragraph 2.3.1, the intent of this program is solely
                    to familiarize Buyer's pilots, mechanics, employees or
                    representatives, duly qualified per the governing body in
                    the country of Buyer's operation, with the operation and
                    maintenance of the Aircraft. It is not the intent of Embraer
                    to provide basic training ("ab-initio") to any
                    representatives of Buyer.

                    Any trainee appointed by Buyer for participation in any of
                    the familiarization programs shall be duly qualified per the
                    governing body in the country of Buyer's operation and
                    fluent in the English language as all training will be
                    conducted in, and all training material will be presented
                    in, such language. Pilots and mechanics shall also have
                    previous experience in the operation and maintenance, as
                    applicable, of jet aircraft or, as a minimum, of
                    twin-engined turboprop aircraft. Neither Embraer nor
                    training provider make any representation or give any
                    guarantee regarding the successful completion of any
                    training program by Buyers trainees, for which Buyer is
                    solely responsible.

<PAGE>

                                                                               6

               c.   The familiarization program, as applicable, shall occur
                    prior to **Material Redacted** Aircraft Actual Delivery Date
                    as it shall be previously agreed upon by Buyer and Embraer.
                    Buyer must give written notification to Embraer **Material
                    Redacted** Days in advance of Buyer's expected training
                    schedule, including the full name and identification of each
                    attendee. Substitutions will not be accepted for training
                    within this period. Should Buyer not take all or any portion
                    of the familiarization program for an Aircraft on or before
                    **Material Redacted** months following the Actual Delivery
                    Date of such Aircraft, Buyer shall be deemed to have fully
                    waived its rights to such service, no refund or indemnity
                    being due by Embraer to Buyer in this case.

               d.   All familiarization programs shall be provided by Embraer or
                    its qualified designated representative **Material
                    Redacted** or in such other location as Embraer or training
                    provider may reasonably designate.

               e.   The part of the pilot familiarization program relative to
                    the ground school shall be provided, **Material Redacted**
                    as may be agreed by Embraer and Buyer. **Material
                    Redacted**. The familiarization program referred to above
                    covers:

                    e.1. One (1) Pilot Familiarization Program for up to
                         **Material Redacted** pilots per Aircraft including (i)
                         ground familiarization as regards Aircraft systems,
                         weight and balance, performance and normal/emergency
                         procedures and, (ii) flight simulator training in a
                         **Material Redacted** simulator in accordance with the
                         Air Authority's approved Flight Operations Training
                         Program. **Material Redacted**.

                    e.2. One (1) maintenance familiarization course for up to
                         **Material Redacted** qualified mechanics **Material
                         Redacted**. This course shall consist of classroom
                         familiarization with Aircraft systems and structures
                         and shall be in accordance with ATA specification 104,
                         level III.

                    e.3. One (1) Flight Attendant Familiarization Course for up
                         to **Material Redacted**. This course shall consist of
                         classroom familiarization, including a general
                         description of Aircraft and systems to be used by
                         flight attendants. **Material Redacted**.

                    e.4. **Material Redacted**

                    e.5. **Material Redacted**

               f.   **Material Redacted**

<PAGE>

                                                                               7

               g.   If requested, Embraer through its field support
                    representative referred to in Article 2.3.2 below, may
                    demonstrate the procedures described in the classroom,
                    subject to Buyer's Aircraft availability.

               h.   Buyer shall be solely responsible for submitting its
                    training programs to the Air Authority for approval. Embraer
                    shall give Buyer reasonable assistance in such process.

               i.   The presence of Buyer's authorized trainees shall be allowed
                    exclusively in those areas related to the subject matter
                    hereof and Buyer agrees to hold harmless Embraer from and
                    against all and any kind of liabilities in respect of such
                    trainees to the extent permitted by law.

               j.   **Material Redacted**

               k.   **Material Redacted**

               Any other service will be subject to a specific agreement to be
               negotiated by the Parties and will be charged by Embraer
               accordingly.

          2.3.2 **Material Redacted** support:

               a.   Embraer shall indicate at its sole discretion, and provide
                    **Material Redacted** to Buyer, the services of a field
                    support representative ("FSR") **Material Redacted**

               b.   **Material Redacted**

               c.   FSR shall assist and advise Buyer on the Aircraft
                    maintenance during its initial operation and act as liaison
                    between Buyer and Embraer.

               d.   FSR shall assist and advise Buyer on the Aircraft
                    maintenance during its initial operation and act as liaison
                    between Buyer and Embraer.

               e.   At no charge to Embraer, Buyer shall provide such FSR with
                    communication services (telephone, facsimile) as well as
                    office space and facilities at Buyer's main maintenance
                    base, and Buyer shall also (a) arrange all necessary work
                    permits and airport security clearances required for Embraer
                    employees, to permit the accomplishment of the services
                    mentioned in this item 2.3.2, in due time; and (b) obtain
                    all necessary custom clearances both to enter and depart
                    from Buyer's country for Embraer's employees and their
                    personal belongings and professional tools.

               f.   During the **Material Redacted**, Buyer shall permit, as
                    required, reasonable access to the maintenance and operation
                    facilities as well as to the data and files of Buyer's
                    Aircraft fleet during normal business hours. It is hereby
                    agreed and understood that Buyer shall make available at the

<PAGE>

                                                                               8

                    office designated for permanence of the FSR, one (1) set of
                    updated Technical Publications as referred to in Article 2.2
                    above, it being Buyer's responsibility to perform the
                    revision services in order to maintain such publications
                    updated within the period **Material Redacted**

               g.   Buyer shall bear all **Material Redacted**. These expenses
                    shall be borne by Embraer **Material Redacted**.

               h.   Without a previous written authorization from Embraer, FSR
                    shall not participate in test flights or flight
                    demonstrations. In case Buyer obtains such previous
                    authorization, Buyer shall include the FSR in Buyer's
                    insurance policy. Embraer reserves the right to halt the
                    services mentioned in this item 2.3.2, should any of the
                    following situations occur at Buyer's base (for the duration
                    of such situation): a) there is a labor dispute or work
                    stoppage in progress; b) war or war like operations, riots
                    or insurrections; c) any conditions which is dangerous to
                    the safety or health of Embraer's employee; or d) the
                    government of Buyer's country refuses permission to
                    Embraer's employee to enter the country.

               i.   The Parties further understand and agree that in the event
                    Buyer elects not to take all or any portion of the
                    **Material Redacted** support provided for herein,
                    **Material Redacted**. Any other additional **Material
                    Redacted** support shall depend on mutual agreement between
                    the Parties and shall be charged by Embraer accordingly.

               j.   The presence of FSR shall be allowed exclusively in those
                    areas related to the subject matter hereof and Embraer
                    agrees to hold harmless Buyer from and against all and any
                    kind of liabilities in respect of such FSR to the extent
                    permitted by law, **Material Redacted**

               k.   **Material Redacted**

     2.4  PRODUCT SUPPORT PACKAGE FOR THE OPTION AIRCRAFT

          The product support package for the exercised Option Aircraft shall be
          limited to **Material Redacted**.

          **Material Redacted**

<PAGE>

           EXHIBIT "1" TO ATTACHMENT B -- TECHNICAL PUBLICATIONS LIST

The quantity of technical publications covering Aircraft operation and
maintenance shall be delivered to Buyer in accordance with the following list:

<TABLE>
<S>                                                                          <C>
OPERATIONAL SET
      Title                                                                  **Material Redacted**
1.    Airplane Flight Manual (AFM)(*)                                        **Material Redacted**
2.    Weight & Balance Manual (WB)(*)                                        **Material Redacted**
3.    Airplane Operations Manual (AOM)(*)                                    **Material Redacted**
4.    Quick Reference Handbook (QRH)(*)                                      **Material Redacted**
5.    Dispatch Deviation Procedures Manual (DDPM)(*)                         **Material Redacted**
6.    Supplementary Performance Manual (SPM)(*)                              **Material Redacted**
7.    Operational Bulletins Set (OB)                                         **Material Redacted**
8.    Standard Operating Procedures Manual (SOPM)                            **Material Redacted**
9.    Flight Attendant Manual (FAM)                                          **Material Redacted**

MAINTENANCE SET
      Title                                                                  **Material Redacted**
10.   Aircraft Maintenance Manual (AMM) (***)                                **Material Redacted**
11.   Aircraft Illustrated Parts Catalog (AIPC) (***)                        **Material Redacted**
12.   Fault Isolation Manual (FIM) (***)                                               4
13.   Non Destructive Testing Manual (NDI) (***)                             **Material Redacted**
14.   Maintenance Planning Document (MPD) (****)                             **Material Redacted**
15.   Wiring Manual (WM) (***)                                               **Material Redacted**
16.   Structural Repair Manual (SRM) (***)                                   **Material Redacted**
17.   Service & Information Bulletins Set (SB/IB)                            **Material Redacted**
18.   Service Newsletters (SNL)                                              **Material Redacted**
19.   Parts Information Letter (PIL)                                         **Material Redacted**
</TABLE>

<PAGE>

                                                                              10

<TABLE>
<S>                                                                          <C>
20.   System Schematic Manual (SSM) (***)                                    **Material Redacted**
21.   Instructions for Ground Fire Extinguishing and Rescue (IGFER) (****)
22.   Airport Planning Manual (APM) (****)
23.   Illustrated Tool & Equipment Manual (ITEM) (****)                      **Material Redacted**
24.   Task Card System CDROM (TCS) (***)                                     **Material Redacted**
25.   Ramp Maintenance Manual (RMM) (***)                                    **Material Redacted**
26.   Power plant Build-up Manual (PPBM)(**)                                 **Material Redacted**
27.   Corrosion Prevention Manual (CPM) (***)
28.   Component Maintenance Manual (CMM) (**)                                **Material Redacted**
29.   Airplane Recovery Manual (ARM) (****)                                  **Material Redacted**
30.   Maintenance Facility and Equipment Planning (MFEP) (****)              **Material Redacted**
31.   Standard Wiring Practices Manual (SWPM) (****)                         **Material Redacted**
32.   Standard Manual (SM)                                                   **Material Redacted**
33.   Consumable Products Catalog (CPC)                                      **Material Redacted**
34.   Maintenance Review Board Report (MRB)                                  **Material Redacted**
</TABLE>

**Material Redacted**

<PAGE>

             EXHIBIT "2" TO ATTACHMENT B -- INSURANCE SPECIAL CLAUSE

          Buyer shall include the following endorsements in its Hull and
          Comprehensive Airline Liability insurance policies:

1.   Hull All Risks Policy, including War, Hi-jacking and Other Perils.

     "It is hereby understood and agreed that Insurers agree to waive rights of
     subrogation against Embraer with regard to the insured Aircraft.

     This endorsement shall not operate to prejudice Insurer's rights of
     recourse against Embraer - Empresa Brasileira de Aeronautica S.A. as
     manufacturer, repairer, supplier or servicing agent where such right of
     recourse would have existed had this endorsement not been effected under
     this Policy."

2.   Comprehensive Airline Liability Policy, based on the AVN53 - Additional
     Insured Endorsement

     "It is hereby understood and agreed that Embraer - Empresa Brasileira de
     Aeronautica S.A. including any business entity owned by or subsidiaries to
     Embraer, and all partners, executive officers, employees and stock holders,
     are added as Additional Insureds only with respect to the operation of the
     Aircraft by the Named Insured.

     This endorsement does not provide coverage for any Additional Insured with
     respect to claims arising out of its legal liability as manufacturer,
     repairer, supplier or servicing agent and shall not operate to prejudice
     Insurer's right of recourse against any Additional Insured as manufacturer,
     repairer, supplier or servicing agent."

3.   Notwithstanding anything to the contrary as specified in the Policy or any
     endorsement thereof, the coverages stated in Articles 1 and 2 above, shall
     not be cancelled or modified by the Insurer, without 48 hours advance
     written notice to Embraer to such effect.

     This Endorsement attaches to and forms part of Policy No. ______________,
     and is effective from the ____ day of ______, 200_."
<PAGE>

                                 ATTACHMENT "C"
                 WARRANTY CERTIFICATE - MATERIAL AND WORKMANSHIP

1.   Embraer, subject to the conditions and limitations hereby expressed,
     warrants the Aircraft subject of the Purchase Agreement to which this will
     be an Attachment, as follows:

     a.   For a period of **Material Redacted** months from the date of delivery
          to Buyer, such Aircraft will be free from:

          -    Defects in materials, workmanship and manufacturing processes in
               relation to parts manufactured by Embraer or by its
               subcontractors holding an Embraer part number;

          -    Defects inherent to the design of the aircraft and its parts
               designed or manufactured by Embraer or by its subcontractors
               holding an Embraer part number.

     b.   For a period of **Material Redacted** months from the date of delivery
          to Buyer, such Aircraft will be free from:

          -    Defects in operation of vendor (Embraer's supplier) manufactured
               parts, not including the Engines, Auxiliary Power Unit (APU) and
               their accessories ("Vendor Parts"), as well as failures of
               mentioned parts due to incorrect installation or installation not
               complying with the instructions issued or approved by their
               respective manufacturers.

          -    Defects due to non-conformity of Vendor Parts to the technical
               specification referred to in the Purchase Agreement of the
               aircraft.

     Once the above-mentioned periods have expired, Embraer will transfer to
     Buyer the original Warranty issued by the vendors, to the extent the same
     remains in effect and shall provide Buyer with reasonable assistance in
     enforcing its rights in respect thereof.

2.   Embraer, subject to the conditions and limitations hereby expressed,
     warrants that:

     a.   All spare parts or ground support equipment, not including Engines,
          APU and their Accessories, which have been manufactured by Embraer or
          by its subcontractors holding an Embraer part number, which will
          permit their particular identification and which have been sold by
          Embraer or its representatives will, for a period of **Material
          Redacted** months from the date of the invoice, be free from defects
          of design, material, workmanship, manufacturing processes and defects
          inherent to the design of the above mentioned parts or ground support
          equipment.

     b.   All spare parts or ground support equipment, which have been designed
          and manufactured by vendors, not including Engines, APU and their
          related accessories, and stamped with a serial number which will
          permit their particular identification and which have been sold by
          Embraer or its representatives will, for a period of **Material
          Redacted** months from the date of the invoice, be free from
          malfunction, defect of material and manufacture.

3.   The obligations of Embraer as expressed in this Warranty are limited to
     replace or repair **Material Redacted**, depending solely upon its own
     judgment, the parts that are returned to Embraer or its representatives
     within a period of **Material Redacted** Days after the occurrence of the
     defect, at Buyer's expense (including but not limited to, freight,
     insurance, taxes and customs duties), adequately packed, provided that such
     components are actually defective and that the defect has occurred within
     the periods stipulated in this certificate. Should the defective part not
     be returned to Embraer within

<PAGE>

                                 ATTACHMENT "C"
                 WARRANTY CERTIFICATE - MATERIAL AND WORKMANSHIP

     such **Material Redacted** Days period, Embraer shall have the right, at
     its sole discretion, to deny the warranty claim.

     NOTE: Notification of any defect claimed under this item 3 must be given to
          Embraer within **Material Redacted** Days after such defect is found.

     All parts **Material Redacted**.

     Parts supplied to Buyer as replacement for defective parts are warranted
     for the balance of the warranty period still available from the original
     warranty of the exchanged parts.

4.   Embraer will accept no warranty claims under any of the circumstances
     listed below:

     a.   When the Aircraft has been subjected to experimental flights (not
          including **Material Redacted** undertaken at the request of Embraer),
          or in any other way not in conformity with the flight manual or the
          airworthiness certificate, or subjected to any manner of use in
          contravention of applicable navigation or other regulations and rules
          of either the government authorities of whatever country in which the
          aircraft is operated or I.C.A.O.;

     b.   When the Aircraft or any of its parts have been altered or modified by
          Buyer, without prior approval from Embraer or from the manufacturer of
          the parts through a service bulletin, **Material Redacted**;

     c.   Whenever the Aircraft or any of its parts have been involved in an
          accident (other than an accident unrelated to the claim for which
          coverage is sought), or when parts either defective or not complying
          to manufacturer's design or specification have been used **Material
          Redacted**;

     d.   Whenever parts have had their identification marks, designation, seal
          or serial number altered or removed;

     e.   In the event of negligence, misuse or maintenance services done on the
          aircraft, or any of its parts not in accordance with the respective
          maintenance manual;

     f.   In cases of deterioration, wear, breakage, damage or any other defect
          resulting from the use of inadequate packing methods when returning
          items to Embraer or its representatives.

5.   This Warranty does not apply to defects presented by expendable items,
     whose service life or maintenance cycle is lower than the warranty period,
     and to materials or parts subjected to deterioration.

6.   The Warranty hereby expressed is established between Embraer and Buyer, and
     it cannot be transferred or assigned to others, unless by written consent
     of Embraer or according to Article 14 of the Purchase Agreement of which
     this is an Attachment.

7.   THE WARRANTIES, OBLIGATIONS AND LIABILITIES OF EMBRAER AND REMEDIES OF
     BUYER SET FORTH IN THIS WARRANTY CERTIFICATE ARE EXCLUSIVE AND IN
     SUBSTITUTION FOR, AND BUYER HEREBY WAIVES, RELEASES AND RENOUNCES, ALL
     OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF EMBRAER AND ANY ASSIGNEE
     OF EMBRAER AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF BUYER AGAINST
     EMBRAER OR ANY ASSIGNEE OF EMBRAER, EXPRESS OR IMPLIED, ARISING BY LAW OR
     OTHERWISE, WITH RESPECT TO ANY NON-CONFORMANCE OR DEFECT OR FAILURE OR ANY
     OTHER REASON IN ANY AIRCRAFT OR OTHER ITEM DELIVERED UNDER THE

<PAGE>

                                 ATTACHMENT "C"
                 WARRANTY CERTIFICATE - MATERIAL AND WORKMANSHIP

     PURCHASE AGREEMENT OF WHICH THIS IS AN ATTACHMENT, INCLUDING DATA,
     DOCUMENT, INFORMATION OR SERVICE, INCLUDING BUT NOT LIMITED TO:

     a.   ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

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

     c.   ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR
          NOT ARISING FROM THE NEGLIGENCE OR OTHER RELATED CAUSES OF EMBRAER OR
          ANY ASSIGNEE OF EMBRAER, WHETHER ACTIVE, PASSIVE OR IMPUTED; AND

     d.   ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR
          DAMAGE TO ANY AIRCRAFT, FOR LOSS OF USE, REVENUE OR PROFIT WITH
          RESPECT TO ANY AIRCRAFT OR FOR ANY OTHER DIRECT, INCIDENTAL OR
          CONSEQUENTIAL DAMAGES.

     For the **Material Redacted**.

8.   No representative or employee of Embraer is authorized to establish any
     other warranty than the one hereby expressed, nor to assume any additional
     obligation, relative to the matter, in the name of Embraer and therefore
     any such statements eventually made by, or in the name of Embraer, shall be
     void and without effect.

<PAGE>

                                 ATTACHMENT "D"
                            PRICE ESCALATION FORMULA

                              **Material Redacted**

                                  ** 3 pages **

<PAGE>

                                 ATTACHMENT "E"
                              **MATERIAL REDACTED**

                              **Material Redacted**

                                   **2 Pages**

<PAGE>

                                 ATTACHMENT "H"
                              PERFORMANCE GUARANTEE

1.   GUARANTEES

     Embraer, subject to the conditions and limitations hereby expressed, and
     considering the Aircraft EMBRAER 190 LR version, equipped with Embraer
     furnished General Electric CF34-10E6A1 engines, guarantees that each
     Aircraft on the relevant Actual Delivery Date shall comply with the
     following performance:

     1.1  CRUISE SPECIFIC AIR RANGE

     The cruise specific air range at a gross weight of **Material Redacted** lb
     (**Material Redacted** kg) in a standard day (ISA), at an altitude of
     **Material Redacted** ft, at **Material Redacted** KTAS using not more than
     maximum cruise thrust, shall not be less than the guarantee value:

     Nominal: **Material Redacted** NAM/lb

     Guarantee: **Material Redacted** NAM/lb

     1.2  WEIGHT GUARANTEE

          1.2.1 Maximum Take-Off Weight (MTOW) of the Aircraft shall not be less
               than **Material Redacted** lb.

          1.2.2 Maximum Landing Weight (MLW) of the Aircraft shall not be less
               than **Material Redacted** lb.

          1.2.3 Maximum Zero Fuel Weight (MZFW) of the Aircraft shall not be
               less than **Material Redacted** lb.

          1.2.4 Maximum Equipped Empty Weight (EEW) for the Aircraft in Buyer
               configuration as defined in the table below is guaranteed not to
               exceed **Material Redacted** lb (**Material Redacted** kg).

                              **Material Redacted**

                                   **3 pages**

2.   AIRCRAFT CONFIGURATION

     2.1  The guarantees stated above are based on the Aircraft configuration as
          defined in the Technical Description TD-190 Rev.6 dated as of December
          2005, plus specific Buyer configuration options as defined at
          Attachment "A" to the Purchase Agreement, (hereinafter referred to as
          the "Detail Specification"). If necessary, appropriate adjustment to
          this Aircraft Performance Guarantees shall be made for changes in such
          Detail Specification (including but not limited to Buyer requests for
          changes, Proposal of Major Changes or any other changes mutually
          agreed upon between the Buyer and Embraer) approved in writing by the
          Buyer and Embraer. Embraer shall account for such adjustments in its
          evidence of compliance with the guarantees. Any **Material Redacted**
          this **Material Redacted**.

          In the event that after the date of this Agreement any unforeseen
          change is made to any law, governmental regulation or mandatory
          requirement, or in the application of any such law, governmental
          regulation or requirement that affects

<PAGE>

                                 ATTACHMENT "H"
                              PERFORMANCE GUARANTEE

          the certification basis for the Aircraft, and as a result thereof, a
          change is made to the configuration and/or the performance of the
          Aircraft in order to obtain certification, the guarantees set forth in
          this Aircraft Performance Guarantee shall be appropriately modified to
          reflect any such change.

     2.2  The performance guarantees of **Material Redacted** shall be adjusted
          by Embraer for the following in its evidence of compliance with such
          guarantees:

          a)   Changes to the Detail Specification including change requested by
               Buyer, Major Changes (as defined in the Purchase Agreement) or
               any other changes mutually agreed upon between the Buyer and
               Embraer.

          b)   The difference between the component weight allowances given in
               the appropriate section of the Detail Specification and the
               actual weights.

3.   GUARANTEE CONDITIONS

     3.1  All guaranteed performance data are based on the ICAO International
          Standard Atmosphere (ISA) unless otherwise specified. Altitudes are
          pressure altitudes.

     3.2  Unless otherwise specified, the CTA Certification Basis regulations
          are specified in the Aircraft Type Certificate Data Sheet.

     3.3  The **Material Redacted** include **Material Redacted**.

     3.4  The **Material Redacted** are based on **Material Redacted**.

     3.5  Performance, where applicable, is based on a fuel Lower Heating Value
          (LHV) of 18.580 BTU per pound and a fuel density of 6.7 lb per Gallon.

4.   PARTIES' OBLIGATIONS ACCORDING TO THIS GUARANTEE

     4.1  During the Aircraft acceptance to be performed by Buyer in accordance
          with Article 7 of the Purchase Agreement, Buyer shall check the
          Aircraft performance specified in Article 1 of this Attachment H
          **Material Redacted**.

     4.2  Embraer's obligations in respect to the guarantees stated in Article 1
          of this Attachment H, are limited to Buyer's right to **Material
          Redacted**, should it be reasonably verified that such Aircraft during
          the acceptance procedure specified in Article 7 of the Purchase
          Agreement, cannot comply with the performances guaranteed hereunder
          after Embraer has had an opportunity to cure such deficiencies in
          accordance with Article 7 of the Purchase Agreement.

     4.3  In case during the above mentioned acceptance procedure, it is proven
          that the Aircraft performance does not comply with the performances
          specified in Article 1 of this Attachment H, **Material Redacted**.

     4.4  Upon acceptance of the Aircraft by Buyer, all obligations of Embraer
          regarding the Aircraft performance guarantees shall cease.

5.   GUARANTEE COMPLIANCE

     5.1  Compliance with the guarantees of **Material Redacted** shall be based
          on the conditions specified in that Articles, the Aircraft
          configuration contained in Attachment "A" to the Purchase Agreement
          and the guarantee conditions of Article 3 above.

     5.2  Compliance with the takeoff and landing performance guarantees shall
          be based on the CTA approved Airplane Flight Manual for the Aircraft.

<PAGE>

                                 ATTACHMENT "H"
                              PERFORMANCE GUARANTEE

     5.3  Compliance with the **Material Redacted** shall be established by
          calculations based on the comparison mentioned in Article 4.1 above.

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

     5.5  Compliance with the Manufacturer's Empty Weight guarantee shall be
          based on information in the appropriate approved weight and balance
          manual, or associated document or report.

6.   EXCLUSIVE GUARANTEES

     6.1  The only performance guarantees applicable to the Aircraft are those
          set forth in this document. The performance guarantees set forth
          herein are established between Buyer and Embraer and may not be
          transferred or assigned to others, unless by previous written consent
          of Embraer.

     6.2  THE GUARANTEES, OBLIGATIONS AND LIABILITIES OF Embraer, AND REMEDIES
          OF Buyer SET FORTH IN THIS PERFORMANCE GUARANTEE ARE EXCLUSIVE AND IN
          SUBSTITUTION FOR, AND Buyer HEREBY WAIVES, RELEASES AND RENOUNCES, ALL
          OTHER RIGHTS, CLAIMS, DAMAGES AND REMEDIES OF Buyer AGAINST EMBRAER OR
          ANY ASSIGNED OF EMBRAER, EXPRESS OR IMPLIED, ARISING BY LAW OR
          OTHERWISE, WITH RESPECT TO AIRCRAFT PERFORMANCE.

     6.3  The terms and conditions of this performance guarantee do not alter,
          modify or impair, in any way, the terms and conditions of Attachment
          "C" (Aircraft Warranty Certificate) to the Purchase Agreement or other
          express warranties in the Purchase Agreement.

<PAGE>

                ANNEX 1 TO ATTACHMENT "H" - PERFORMANCE GUARANTEE

                              **Material Redacted**

                                   **5 pages**

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