Document:

EX-10.19.2

 Exhibit 10.19.2 

 

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

 
 

 
 400 Main Street 
 East Hartford, CT 06108 USA 
 December 17, 2010 

Atlantic Aircraft Holding Ltd. 
 Bolam House

 King & George Streets 
 P.
O. Box CB 13.253 
 Nassau, Bahamas 
  

			
	Subject:	  	 Second Amended and Restated Side Letter No. 1 to the Amended and Restated
 V2500 General Terms of Sale between IAE International Aero Engines AG and
 Atlantic Aircraft
Holding Ltd. dated December 18, 2008

 Ladies and Gentlemen: 
 We refer to the Amended and Restated V2500 General Terms of Sale dated December 18, 2008 between IAE International Aero Engines AG (“IAE”) and Atlantic Aircraft Holding Ltd.
(“AAH”), such contract being hereinafter referred to as the “Contract.” Unless expressly stated to the contrary, and to the extent possible, terms used in this Second Amended and Restated Side Letter No. 1 shall have the
same meaning given to them in the Contract. 
 We also refer to the Amended and Restated Side Letter No. 1 dated
December 18, 2008, which consolidated and superseded all the terms within Side Letters No. 1 through 4 to the Original Contract all dated April 23rd 1999 (the “Previous Amended and Restated Side Letter No. 1”). 

The Parties agree that this Second Amended and Restated Side Letter No. 1 consolidates and supersedes all the terms within the Previous Amended and
Restated Side Letter No. 1. 
 This Second Amended and Restated Side Letter No. 1 provides for certain financial assistance, Spare
Engine assistance, price protection assurances, and Engine support from IAE to AAH in support of the incorporation of the Aircraft into its fleet. 
 FINANCIAL ASSISTANCE TERMS 
  

	1.	Confirmation of Agreement to Acquire Aircraft and Engines 

  

	 	1.1	Confirmation of Agreement to Purchase Aircraft 

 AAH confirms to IAE that AAH has entered into the Aircraft Agreement with the Aircraft Manufacturer, and that as of the date of this Second Amended and Restated Side Letter No. 1 the Aircraft
Agreement provides for AAH to purchase [*] Firm Aircraft (including [*] Firm Aircraft already delivered by the Aircraft Manufacturer as of the date of the Contract) (the “Firm Aircraft”), and, if converted into firmly ordered aircraft
pursuant to the Airbus Agreement, up to twenty-three (23) Rolling Option Aircraft. 

  
 Page 1 of 14

	 	1.2	Agreement to Purchase Spare Engines 

 AAH will purchase, in accordance with and subject to the terms of the Contract as supplemented hereby, Spare Engines in quantities and at appropriate thrust levels sufficient to maintain a minimum [*]
ratio of Spare Engines to Engines installed on Aircraft delivered pursuant to the Aircraft Agreement and operated by the Grupo TACA Airlines. For such Spare Engines, AAH agrees to provide IAE [*] months written notice prior to the desired delivery
date, specifying the required thrust rating of such Spare Engines. 
  

	2.	Introductory Assistance Credit Firm Aircraft 

  

	 	2.1	To assist AAH with the introduction of certain Firm Aircraft into its fleet, IAE will issue a credit pursuant to Clause 2.5 below in the following amounts for Firm
Aircraft [*] through Firm Aircraft [*] inclusive purchased by and delivered to AAH pursuant to Exhibit B-1 hereto: 

 V2524-A5 [*] 
 V2527-A5 [*] 

V2527E-A5 [*] 

V2527M-A5 [*] 

V2533-A5 [*] 
  

	 	2.2	Each credit issued pursuant to Clause 2.1 above shall be escalated using the IAE Escalation Formula set forth in Exhibit B-3 to the Contract from a base month of [*],
to the earlier of: a) the scheduled delivery date set forth in Exhibit B-1 to the Contract; or b) the actual delivery date of the corresponding Firm Aircraft where such delivery date has been modified pursuant to Clause 4.1 below; provided however
that if the delivery date of such Firm Aircraft is delayed solely because of an IAE failure to perform its obligations under the Contract and such failure is not excused pursuant to Clause 6.1 of the Contract, the relevant credit shall be escalated
to the actual delivery date. 

  

	 	2.3	To assist AAH with the introduction of Firm Aircraft [*] through Firm Aircraft [*] purchased by and delivered to AAH pursuant to Exhibit B-1 hereto, IAE will issue a
credit pursuant to Clause 2.5 below in the following amounts: 

 V2524-A5 [*] 

V2527-A5 [*] 

V2527E-A5 [*] 

V2527M-A5 [*] 

V2533-A5 [*] 
  

	 	2.4	Each credit issued pursuant to Clause 2.3 above shall be escalated using the IAE Escalation Formula set forth in Exhibit B-4 to the Contract from a base month of [*],
to the earlier of: a) the scheduled delivery date set forth in Exhibit B-1 to the Contract; or b) the actual delivery date of the corresponding Firm Aircraft where such delivery date has been modified pursuant to Clause 4.1 below; provided however
that if the delivery date of such Firm Aircraft is delayed solely because of an IAE failure to perform its obligations under the Contract and such failure is not excused pursuant to Clause 6.1 of the Contract, the relevant credit shall be escalated
to the actual delivery date. 

  
 Page 2 of 14

	 	2.5	The total amount of such credit for each Aircraft shall be assigned to the Aircraft Manufacturer to reduce the price of the Engines for such Aircraft. AAH agrees that
the credit shall not vest in the Aircraft Manufacturer until delivery to and acceptance by AAH of the respective Aircraft. In the event AAH does not accept delivery of the corresponding Aircraft for reasons other than a defect in the Engines, AAH
agrees to promptly reimburse to IAE any amounts paid by IAE pursuant to this Clause 2 to the Aircraft Manufacturer, provided, however, that IAE shall reasonably assist and cooperate with AAH in securing reimbursement from the Aircraft Manufacturer
of any such sums. 

  

	 	2.6	IAE will not unreasonably withhold its consent to an assignment of the full value of the credits set forth in this Clause 2 by AAH to a financial institution or similar
entity to obtain and/or secure pre-delivery payment financing for the respective Aircraft. 

  

	 	2.7	The credits issued pursuant to this Clause 2 shall be subject to reduction by the amounts specified in Clause 8.2 or Clause 8.3, as applicable.

  

	3.	Fleet Expansion Assistance Credit 

  

	 	3.1	To assist AAH with the introduction of the Rolling Option Aircraft into its fleet, IAE will issue a credit pursuant to Clause 3.3 below in the following amounts for
each of the Rolling Option Aircraft purchased by AAH: 

 V2524-A5 [*] 

V2527-A5 [*] 

V2527E-A5 [*] 

V2527M-A5 [*] 

V2533-A5 [*] 
  

	 	3.2	Each such credit shall be escalated using the IAE Escalation Formula set forth in Exhibit B-4 to the Contract from a base month of [*] to the earlier of: (a) the
scheduled delivery date set forth in Exhibit B-1 to the Contract; or (b) the actual delivery date of the corresponding Rolling Option Aircraft where such delivery date has been modified pursuant to Clause 4.1 below; provided however that if the
delivery date of such Firm Aircraft is delayed solely because of an IAE failure to perform its obligations under the Contract and such failure is not excused pursuant to Clause 6.1 of the Contract, the relevant credit shall be escalated to the
actual delivery date. 

  

	 	3.3	The total amount of such credit for each Aircraft shall be assigned to the Aircraft Manufacturer to reduce the price of the Engines for such Aircraft. AAH agrees that
the credit shall not vest in the Aircraft Manufacturer until delivery to and acceptance by AAH of the respective Aircraft. In the event AAH does not accept delivery of the corresponding Aircraft for reasons other than a defect in the Engines, AAH
agrees to promptly reimburse to IAE any amounts paid by IAE pursuant to this Clause 3 to the Aircraft Manufacturer, provided, however, that IAE shall reasonably assist and cooperate with AAH in securing reimbursement from the Aircraft Manufacturer
of any such sums. 

  
 Page 3 of 14

	 	3.4	IAE will not unreasonably withhold its consent to an assignment of the full value of the credits set forth in this Clause 3 by AAH to a financial institution or similar
entity to obtain and/or secure pre-delivery payment financing for the respective Aircraft. 

  

	 	3.5	The credits issued pursuant to this Clause 3 shall be subject to reduction by the amount specified in subclause iii) of Clause 8. 

 

	4.	Aircraft Delivery Flexibility and Aircraft Flexibility 

  

	 	4.1	To the extent permitted by the Aircraft Manufacturer, IAE agrees to the modification on individual Firm Aircraft delivery dates (and, if converted into firmly ordered
aircraft with scheduled delivery dates, the Rolling Option Aircraft delivery dates) provided that: (a) all Aircraft (including Rolling Option Aircraft converted into firmly ordered aircraft) are delivered prior to [*]; and (b) AAH provides
IAE written notice of the modification upon the earlier of [*] months prior to the modified delivery date or [*] months prior to the then scheduled delivery date. 

 

	 	4.2	IAE acknowledges that the Aircraft Manufacturer has granted AAH pursuant to the Aircraft Agreement certain rights to purchase Aircraft (the “Purchase Rights”)
in respect of which AAH continues to have the option to exercise Purchase Rights in respect of [*] Aircraft (such Aircraft, the “Remaining Purchase Rights Aircraft”). AAH represents that as of the date of this Second Amended and Restated
Side Letter No. 1, it has remaining the right to exercise all or part of the Purchase Rights in respect of the Remaining Purchase Rights Aircraft at any time and from time to time for deliveries between [*] months following the Purchase Rights
exercise dates. The Purchase Rights in respect of [*] the Remaining Purchase Rights Aircraft shall expire on the last business day of the second week of [*] and the Purchase Rights in respect of the additional [*] of the Remaining Purchase Rights
Aircraft shall expire on the last business day of the second week of [*] (as applicable to each of the Purchase Rights in respect of a Remaining Purchase Rights Aircraft, the “Purchase Rights Expiration Date”) if AAH has not exercised such
Purchase Rights by giving written notice to the Aircraft Manufacturer prior to the relevant Purchase Rights Expiration Date. 

 For each Purchase Right, upon receipt of AAH’s notice to the Aircraft Manufacturer, the Aircraft Manufacturer will provide a delivery date for the relevant Purchase Rights Aircraft and, upon
confirmation of such delivery date, AAH shall promptly notify IAE of the scheduled delivery date of the relevant Purchase Rights Aircraft. AAH further represents that, as of the date of this Second Amended and Restated Side Letter No. 1, the
Aircraft Manufacturer has agreed pursuant to the Aircraft Agreement to grant AAH, at the time of exercise of the Purchase Rights in accordance with the above procedure, certain rights to purchase (the “Replacement Purchase Rights”) [*]
(the “Replacement Purchase Rights Aircraft”). The Replacement Purchase Rights are exercisable in accordance with the same procedure as the Purchase Rights; provided that the Purchase Right Expiration Date of each Replacement Purchase Right
shall be the second anniversary of the Purchase Right Expiration Date of the Purchase Right with respect to which such Replacement Purchase Right was granted. 

  
 Page 4 of 14

 For clarity, the Purchase Rights Aircraft and the Replacement Purchase Rights Aircraft
together make up [*] of the [*] Aircraft, as defined in Clause 1.1 of the Contract. 
  

	 	4.3	For Aircraft scheduled for delivery after January 1, 2006, IAE agrees that AAH may convert A319 Aircraft to A320 Aircraft powered by new Engines or A321 Aircraft
powered by new Engines. For Aircraft scheduled for delivery after January 1, 2006, IAE further agrees that AAH may convert A320 Aircraft to A319 Aircraft powered by new Engines or A321 Aircraft powered by new Engines. These conversion rights
are subject to the following conditions: 

  

	 	4.3.1	The Aircraft Manufacturer providing AAH similar conversion rights; and 

  

	 	4.3.2	The Aircraft Manufacturer agreeing to the particular conversion; and 

  

	 	4.3.3	These conversion rights being exercised only once per aircraft; and 

  

	 	4.3.4	AAH providing IAE written notice of such conversion at the same time AAH notifies the Aircraft Manufacturer, but in no case later than [*] months prior to the then
scheduled delivery date of the applicable Aircraft being converted. 

  

	 	4.4	Of the total number of Spare Engines and Engines installed on Aircraft purchased by AAH, not more than [*] Spare Engines and Engines may be [*] or [*] Engines.

  

	5.	Escalation Cap 

  

	 	5.1	With respect to Engines installed on Aircraft (“Installed Engines”) which are delivered by IAE to the Aircraft Manufacturer prior to [*], the escalation per
annum for the period of [*] applicable to the base price of those Installed Engines will be the lesser of: (a) the per annum amount as determined by the application of the Escalation Formula as set forth in Exhibit B-3 to the Contract; and
(b) a cumulative [*] per annum. Subject to the Aircraft Manufacturer providing a similar limitation on escalation to AAH, for Installed Engines delivered after [*], the calculation of the total amount of escalation for such Installed Engines,
installed on Firm Aircraft 1 through Firm Aircraft 52 inclusive as listed in Exhibit B-1, will utilize for the years [*] the amount of escalation set forth in this paragraph. 

 

	 	5.2	 For the period beginning [*] and ending [*] (the “Cap Period”), IAE agrees to cap escalation of all credits, prices and other items in
relation to Engines installed on Firm Aircraft [*] through Firm Aircraft [*] inclusive as listed in Exhibit B-1, delivered to AAH under the Contract after [*] in accordance with the escalation formula in Exhibit B-3 of the Contract, including any
applicable Installed Engine Base Price as defined in Clause 13 to this Side Letter No. 1 (“Base Amounts”), at an annual rate of [*], provided that any year in which escalation exceeds [*] over the previous year, all such Base Amounts
shall be escalated additionally by [*] of the amount of the escalation in excess of [*]. With respect to the Engines installed on the Firm Aircraft subject to this Clause 5.2, each year during the Cap Period, the lower of

  
 Page 5 of 14

	 	the escalation as calculated in accordance with Exhibit B-3 of the Contract or the escalation as calculated by the formula in Clause 5.4, below, shall be compounded
annually and multiplied to the Base Amount pursuant to Clause 5.4 below. 

  

	 	5.3	During the Cap Period, IAE agrees to cap escalation of all credits, prices and other items in relation to Engines installed on Firm Aircraft through Firm Aircraft
inclusive as listed in Exhibit B-1 delivered to AAH under the Contract after October 13, 2008 in accordance with the escalation formula in Exhibit B-4 of the Contract, including any applicable Installed Engine Base Price as defined in Clause 13
to this Second Amended and Restated Side Letter No. 1 (“Base Amounts”), at an annual rate of, provided that any year in which escalation exceeds over the previous year, all such Base Amounts shall be escalated additionally by of the
amount of the escalation in excess of. With respect to the Engines installed on the Firm Aircraft subject to this Clause 5.3, each year during the Cap Period, the lower of the escalation as calculated in accordance with Exhibit B-4 of the Contract
or the escalation as calculated by the formula in Clause 5.4, below, shall be compounded annually and multiplied to the Base Amount pursuant to Clause 5.4 below. 

 

	 	5.4	Pursuant to Clauses 5.2 and 5.3 above, as applicable, the yearly escalation during the Cap Period shall be determined in accordance with this Clause 5.4:

  

	 	5.4.1	[*] 

  

	6.	Credit Reimbursement 

Clause 6.3, Credit Reimbursement, of the Contract is hereby deleted in its entirety and replaced with the following: 

 

	 	“6.3	Credit Reimbursement 

 If
AAH does not take delivery of Firm Aircraft [*] through Firm Aircraft [*] inclusive pursuant to Exhibit B-1 hereto (as such may be modified or supplemented pursuant to the terms of the Contract), IAE shall have the right to adjust the base credits
granted on each of such [*] Firm Aircraft acquired by AAH in the amount of [*] dollars, escalated in accordance with Exhibit B-4 and Clause 5.3 to this Second Amended and Restated Side Letter No. 1) per Firm Aircraft not purchased by AAH.
However, in no event shall the credits granted to AAH for Aircraft purchased be less than the equivalent of [*], escalated in accordance with Exhibit B-4 and Clause 5.3 to this Second Amended and Restated Side Letter No. 1) for an A320
Aircraft. Following such adjustment, AAH will promptly reimburse IAE in an amount equal to (x) the value of the credits, benefits and other concessions actually provided in excess of the adjusted amounts, plus (y) the interest on such
excess amounts calculated from the time each respective amount was applied or value received until reimbursement. Interest will be calculated at six (6) month US$ LIBOR plus [*] per annum. If AAH is in default on any payment obligation under
the terms of this Contract, IAE will, without prejudice to any of its other rights, be 

  
 Page 6 of 14

 entitled to set off any unused credit in AAH’s account with IAE in full or partial (as
applicable) satisfaction of such outstanding amount. Should AAH firm-up any additional Rolling Option Aircraft the Parties agree to discuss in good faith reasonable credit reimbursement terms for these additional Aircraft.” 

 

	7.	Spare Parts Payment Terms 

  

	 	7.1	Clause 3.13.1 of the Contract is deleted in its entirety and replaced with the following: 

 

	 	“3.13.1    	Payment for all purchases under this Clause 3 shall be made by AAH to IAE within [*] after the date of delivery [*]. In such event, IAE shall have the right to request
payment immediately prior to delivery of Spare Parts and other Supplies of such amount as would cause the balance owing to exceed the aforementioned amounts.” 

 

	 	7.2	Clause 3.13.6 of the Contract is deleted in its entirety and replaced with the following: 

 

	 	“3.13.6    	If AAH fails to make payment for any Spare Parts or Other Supplies within [*] after the date when such payment is due, then, without prejudice to any of IAE’s
other rights, IAE will be entitled to charge interest on the overdue amount, at the rate of six (6) month US$ LIBOR [*] per annum, from and including the date such payment was due to but excluding the date such payment is made.”

  

	8.	Purchase of SelectOneTM Engines 

 Commencing with the Engines installed on Firm Aircraft 50 as detailed in the Aircraft Delivery Schedule in Exhibit B-1 to the Contract, each Installed Engine and Spare Engine delivered to AAH will be to
the SelectOneTM Engine production standard, consisting of a modified High Pressure Compressor, a modified High Pressure Turbine, and a modified Low Pressure Turbine Nozzle Guide Vane. For each Installed Engine and Spare Engine delivered to AAH
at the SelectOneTM Engine production standard, AAH shall
pay IAE as follows: 
  

	 	8.1	[*]; 

  

	 	8.2	[*]; 

  

	 	8.3	[*]. 

 SPARE ENGINE TERMS 

 

	9.	Spare Engine Assistance Credit 

  

	 	9.1	To assist AAH with procuring Spare Engines from IAE in support of AAH’s Aircraft, IAE will credit AAH’s account with IAE in an amount equal to [*] of the
Basic Contract Price as set forth in Exhibit B-2 of the Contract, escalated from the base month of [*], to the date of delivery in accordance with the escalation formula contained in Exhibit B-3 of the Contract, for each Spare Engine purchased by
AAH. 

  
 Page 7 of 14

	 	9.2	This Spare Engine assistance credit provided in Clause 9.1 will be applicable to [*] Spare Engines purchased by AAH, consisting of: (a) the [*] Firm Spare Engines
listed in Exhibit B-2 to the Contract, and (b) up to [*] Spare Engines, as AAH firms up additional Rolling Option Aircraft, in accordance with the following schedule: 

 

			
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]

  

	 	9.3	Each such credit will be issued upon delivery to and acceptance by AAH of the corresponding Spare Engine. AAH agrees to provide IAE with written notice confirming
acceptance of the corresponding Spare Engine promptly after acceptance. 

  

	 	9.4	Each such credit shall be used by AAH toward the final payment of the invoice price of such Spare Engine. 

 

	 	9.5	The credits issued pursuant to this Clause 9 shall be subject to reduction by the amount specified in subclause (i) of Clause 8. 

 

	10.	Spare Engine Payment Terms 

  

	 	10.1	Clause 2.7.1 of the Contract is deleted in its entirety and replaced with the following: 

 

	 	“2.7.1	AAH will make payment in United States Dollars as follows: 

  

	 	2.7.1.1	[*] before scheduled delivery of each Spare Engine, AAH shall pay IAE a non-refundable deposit of [*] the Estimated Purchase Price of the Spare Engine. With respect to
Option Spare Engines exercised less than [*] before scheduled delivery and any other Spare Engines ordered less than [*] before scheduled delivery, this payment shall be due at the time of the exercise or placement of the order.

  

	 	2.7.1.2	[*] before scheduled delivery of each Spare Engine, AAH shall pay to IAE a non-refundable deposit [*] of the Estimated Purchase Price of the Spare Engine.

  

	 	2.7.1.3	[*] before scheduled delivery of each Spare Engine, AAH shall pay to IAE a non-refundable deposit [*] of the Estimated Purchase Price of the Spare Engine.

  
 Page 8 of 14

	 	2.7.1.4	Immediately prior to the delivery of each of the Spare Engines, AAH shall pay to IAE the balance of the Purchase Price of such Spare Engine.”

  

	 	10.2	Clause 2.7.6 of the Contract is deleted in its entirety and replaced with the following: 

 

	 	“2.7.6	If AAH fails to make payment for any Spare Engines on or before the date when such payment is due, then, without prejudice to any of IAE’s other rights, IAE will:
(a) be entitled to charge interest on the overdue amount, at the rate of six (6) month US$ LIBOR plus [*] per annum, from the date such payment was due to the date such payment is made; and (b) have the right (but not the obligation)
to suspend work on the manufacture of such Spare Engines pending the remedy of such failure and to reasonably reschedule the date of delivery of such Spare Engines following the cure of such failure.” 

 

	11.	Ownership and Use of Spare Engines 

  

	 	11.1	In consideration of the benefits provided by IAE to assist AAH in purchasing Spare Engines, AAH agrees that it will retain possession and use (but not ownership in the
case of Spare Engines that AAH finances through a sale and lease-back transaction) of each Spare Engine AAH purchases pursuant to the Contract until such Spare Engines have been operated for no less than [*] Engine Flight Hours. Furthermore, AAH
agrees not to sell or otherwise dispose of any other Engine if such disposition would have the impact of contravening the spirit and intent of this Clause 11.1 or if the Engine being disposed would be replaced by a Spare Engine. Nothing herein shall
be deemed to prevent AAH from selling any such Spare Engine in connection with a sale and lease-back transaction whereby the Spare Engine is placed on a long-term lease to a Grupo TACA Airline. 

 

	 	11.2	[*] 

  

	 	11.2.1	[*] 

  

	 	11.2.2	[*] 

  

	 	11.3	Should AAH decide to sell to a non-Grupo Taca entity any of the Spare Engines covered by Clause 11.1 above (excluding the Spare Engines set forth in Clause 11.2 above)
and other than in connection with a sale and lease-back transaction pursuant to which a Grupo TACA Airline takes for a long-term lease such Spare Engine, AAH agrees that it will first offer to IAE the right to purchase such Spare Engine prior to
offering such Spare Engine to third-parties. The offer to IAE will be in writing and set forth the Engine Serial Number, hours and cycles of utilization of the Engine, and the price at which AAH is willing to sell the Spare Engine to IAE. IAE will
have four (4) business days to respond to AAH’s offer. Should IAE not accept the offer or not advise AAH in writing of the acceptance of the offer, AAH shall be entitled to offer such Spare Engine to third parties at a price equal to or
greater than the price at which the Spare Engine was offered by AAH to IAE. In the event AAH decides to try to dispose of the Spare Engine at a price less than the offer made to IAE, AAH will first offer the Spare Engine to IAE at such lower price.
In all instances where IAE does not accept an offer from AAH as set forth in this Clause 11, IAE agrees that the price at which the Spare Engine was offered to IAE shall be subject to the non-disclosure obligations set forth in Clause 10.4 of the
Contract. 

  
 Page 9 of 14

	12.	Engine Storage Bag and Engine Transportation Stand 

 Unless other arrangements are notified to IAE six (6) months prior to the date of scheduled delivery of each Spare Engine, AAH agrees to purchase from IAE an Engine Storage Bag and a Low Profile
Engine Transportation Stand for delivery with each Spare Engine. [*] using the IAE Escalation Formula set forth in Exhibit B-3 to the Contract. The cost for these items will be included in the invoice for the respective Spare Engine, and payment for
these items shall be due immediately prior to delivery of the Spare Engine. 
 PRICE PROTECTION TERMS 

 

	13.	Engine Base Price Assurance 

  

	 	13.1	 Subject to the Aircraft Manufacturer providing similar price assurances for the Aircraft price, IAE will provide AAH an additional credit equal to any
increase from the base price in effect on [*] for Engines installed on Aircraft which are delivered between [*]. This Engine base price assurance shall be applicable to Engines installed on not more than [*] delivered to and accepted by AAH. The
SelectOneTM Engine Charge shall be considered an agreed increase in the base price for each SelectOneTM production standard Engine installed on an Aircraft; provided, however, that IAE has not charged the Aircraft Manufacturer with the SelectOneTM Engine Charge for that Engine. 

 

	 	13.2	Notwithstanding the provisions of this Clause 13, if the Engines installed on Aircraft after the date of this Second Amended and Restated Side Letter No. 1 include
significant improvements from those Engines available on the date of this Second Amended and Restated Side Letter No. 1, which provide additional benefits to AAH and which involve additional costs to IAE, the parties agree to negotiate in good
faith an equitable adjustment to be paid to IAE. 

  

	 	13.3	For the purposes of administering this base price assurance provision, the Engine base price in effect on [*] for the two (2) Engines installed on each Aircraft
shall be deemed to be the following (the “Installed Engine Base Price”): 

  

							
	 Aircraft
	 	Engine
Type	 	Base Price for
Firm
Aircraft 1 through 52
(Jan 2006 US$)	 	Base Price for Firm
Aircraft 
53 through 67
(Jan 2006 US$)
	A319	 	V2524-A5	 	[*]	 	[*]
	A320	 	V2527-A5	 	[*]	 	[*]
	A320	 	V2527E-A5	 	[*]	 	[*]
	A320	 	V2527M-A5	 	[*]	 	[*]
	A321	 	V2533-A5	 	[*]	 	[*]

  
 Page 10 of 14

	14.	Spare Engine Base Price Protection 

  

	 	14.1	 IAE will provide AAH an additional credit equal to any increase from the base price in effect as of [*] for Spare Engines ordered by and delivered to
AAH between [*]. This Spare Engine base price assurance shall be applicable to a quantity of up to [*] Spare Engines. The SelectOneTM Engine Charge shall be considered an agreed increase in the base price for each Spare Engine delivered to AAH
at the SelectOneTM production standard.

  

	 	14.2	Notwithstanding the provisions of this Clause 14, should the spare Engines delivered [*] include significant improvements from those spare Engines available at the time
of the execution of this Second Amended and Restated Side Letter No. 1 which provide additional benefits to AAH and which involve additional costs to IAE, the parties agree to negotiate in good faith an equitable adjustment to be paid to IAE.

 PRODUCT SUPPORT SERVICES 
  

	15.	V2500-A5 Miami Support Facility 

  

	 	15.1	A V2500-A5 Spare Parts and line replaceable unit support facility has been established in the Miami, Florida, USA area. This facility, enables AAH to maintain a reduced
V2500-A5 spare parts inventory provided that AAH has: (a) at least [*] spare Engine in full engine build unit (“EBU”) and quick engine change (“QEC”) configuration; and (b) purchased and maintained in its fleet a
minimum of [*] ratio of Spare Engines to Engines installed on the Aircraft as required by the Contract; and (c) purchases and maintains a reasonable amount of Initial Provisioning Spare Parts based on recommendations (which take into account
the existence of the Miami Support Facility) from the Initial Provisioning conference between IAE and AAH. 

  

	 	15.2	For Spare Parts with prices listed in the V2500 Engine Spare Parts Price Catalog, the price for such Spare Parts from the Miami facility will be no greater than the
price listed in the then current V2500 Engine Spare Parts Price Catalog. 

  

	16.	Customer Support Representative 

 IAE will continue to provide, at no additional charge to AAH, a customer support representative to assist AAH on site at AAH’s home base in San Salvador for as long as AAH owns and operates at least
[*] V2500 powered aircraft in regular commercial service. Clause 5.2 of the Contract will be applicable to this representative. 
  

	17.	Alternative Guarantees 

[*] 
  

	18.	Operation by Grupo Taca Airlines 

 [*] 

  
 Page 11 of 14

	19.	Engine Interchangeability and Thrust Rating Flexibility 

  

	 	19.1	The Engines being supplied by IAE to the Aircraft Manufacturer for installation on the Aircraft and the Spare Engines provided to AAH pursuant to the Contract are
interchangeable amongst each other with changes or modifications which can be undertaken at normal airline maintenance facilities (such as installing the appropriate data plate, data entry plug changes, and accessory component changes) in compliance
with i) the engine manual, ii) V2500 Service Bulletin V2500-72-0285 Rev 5 dated 29 March 2002, and iii) regulations of the airworthiness authorities. 

  

	 	19.2	Subject to: 

  

	 	(1)	AAH purchasing, maintaining, and operating in its fleet a minimum ratio of [*] Spare Engines to Engines installed on the Aircraft as required by the Contract; and

  

	 	(2)	the ratio of thrust levels of Spare Engines purchased by AAH pursuant to the Contract being approximately the same as the ratio of thrust levels of Engines installed on
the Aircraft, 

 the IAE Customer Support Representative at AAH will provide AAH with access to an adequate
quantity of appropriate data plates and data entry plugs which allow AAH to utilize the Engines installed on the Aircraft and Spare Engines interchangeably in the AAH fleet so as to achieve maximum flexibility in AAH’s operations. 

 

	 	19.3	In no event shall AAH operate at any given point in time a greater number of higher thrust Engines than purchased by AAH from the Aircraft Manufacturer and IAE. For
example, if AAH has purchased ten (10) V2533-A5 rated Engines, then AAH may not operate any more than ten (10) V2533-A5 rated Engines at any one point in time; the same rationale applies at each respective thrust rating.

  

	 	19.4	The thrust flexibility as provided under this Clause 19 is personal to AAH and may not be transferred or assigned by AAH. Prior to selling, transferring or otherwise
disposing [including lease return] of any Engine, other than a sale leaseback transaction following which AAH continues to operate the Engine, AAH shall revert such Engine to the thrust rating at which IAE originally delivered the Engine (the
“Original Thrust Rating”) through the removal of the multi-rated data plate and the replacement of the original single rated plate. 

  

	 	19.5	If AAH sells, transfers or otherwise disposes of any Engine after October 31, 2008 (other than a sale leaseback transaction following which AAH continues to
operate the Engine) without restoring the Engine to its Original Thrust Rating and returning any multi-rated data plate to IAE prior to such sale, transfer or disposal, AAH shall pay to IAE the difference between the then current price of the Engine
at the Original Thrust Rating and the then current price of a V2533-A5 rated engine; provided that if the workscope for the last maintenance shop visit prior to AAH selling, transferring or otherwise disposing of an Engine includes the removal of
the multi-rated data plate and the replacement of the original single rated data plate, but such task is not performed by the maintenance shop, then AAH shall have no obligation to pay such amount to IAE. 

  
 Page 12 of 14

	 	19.6	If AAH transferred, sold or otherwised disposed of any Engine before October 31, 2008, without restoring the Engine to its Original Thrust Rating and returning any
multi-rate data plate to IAE, the Parties agree to work together to ensure that such engine is fitted with the original single rated data plate. 

  

	20.	Data Collection Methodology for Guarantee Administration 

 At AAH’s request, IAE will provide assistance in creating an appropriate data acquisition methodology for the collection of data needed for the administration of the Guarantees set forth in the
Contract. 
  

	21.	Acquisition of Engines by AAH Affiliates 

 The Parties to this Contract acknowledge that AAH may desire that an entity controlled by AAH or by Grupo TACA Holding Ltd. take title to any Engine hereunder in lieu of AAH and that such Engine shall be
operated by a Grupo TACA Airline. If any further modifications become necessary under the Contract to affect the intent of the foregoing sentence, the Parties agree to negotiate such modification in good faith; provided however that any such
modification shall not (a) release AAH from any obligation under the Contract or (b) have an adverse impact on IAE. 
  

	22.	Conflicts 

 In the event
of any conflicts between the terms contained in the Contract and the terms contained in this Second Amended and Restated Side Letter No. 1, the terms of this Second Amended and Restated Side Letter No. 1 shall prevail. 

[THE REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK] 

  
 Page 13 of 14

 Except as expressly amended by this Second Amended and Restated Side Letter No. 1, all provisions of
the Contract remain in full force and effect. 
  

							
	Very truly yours,	 		  	Agreed to and Accepted on behalf of:	  	
	IAE International Aero Engines AG	 		  	Atlantic Aircraft Holding Ltd.	  	
				
	  
	 		  	  
	  	
	Signature	 		  	Signature	  	
				
	  
	 		  	  
	  	
	Name	 		  	Name	  	
				
	  
	 		  	  
	  	
	Title	 		  	Title	  	
				
	  
	 		  	  
	  	
	Date	 		  	Date	  	

  
 Page 14 of 14EX-10.20

 Exhibit 10.20 
 Note: Certain portions have been omitted from this Agreement in accordance with a request for confidential treatment submitted to the Securities and Exchange Commission. Omitted information has been
replaced with an asterisk. Omitted information has been filed separately with the Securities and Exchange Commission. 
  

 
 AMENDED AND RESTATED 

V2500-A5 

FLEET HOUR AGREEMENT 
 BETWEEN 
 IAE INTERNATIONAL AERO ENGINES AG 

AND 
 ATLANTIC
AIRCRAFT HOLDINGS LIMITED 
 THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE 

  
 Page 1

 CONFIDENTIAL 
 INDEX 
 RECITALS 

							
			
	 CLAUSE 1
	  	DEFINITIONS	  	 	4	  
			
	 CLAUSE 2
	  	RESPONSIBILITIES OF THE PARTIES	  	 	5	  
			
	 CLAUSE 3
	  	STANDARDS, SPECIFICATIONS AND BENIFITS	  	 	9	  
			
	 CLAUSE 4
	  	ENGINE MAINTENANCE SERVICES, THE FHA SERVICE CHARGE AND OFF-WING RESTORATION CHARGE	  	 	10	  
			
	 CLAUSE 5
	  	TITLE	  	 	11	  
			
	 CLAUSE 6
	  	PRICE	  	 	12	  
			
	 CLAUSE 7
	  	FHA OPTIONS	  	 	13	  
			
	 CLAUSE 8
	  	PAYMENT	  	 	13	  
			
	 CLAUSE 9
	  	TAXES AND LEVIES	  	 	14	  
			
	 CLAUSE 10
	  	PERIOD OF FHA	  	 	15	  
			
	 CLAUSE 11
	  	WARRANTIES	  	 	15	  
			
	 CLAUSE 12
	  	EXCUSABLE DELAYS	  	 	17	  
			
	 CLAUSE 13
	  	AMENDMENT	  	 	17	  
			
	 CLAUSE 14
	  	ASSIGNMENT	  	 	17	  
			
	 CLAUSE 15
	  	EXHIBITS	  	 	18	  
			
	 CLAUSE 16
	  	HEADINGS	  	 	18	  
			
	 CLAUSE 17
	  	NOTICES	  	 	18	  
			
	 CLAUSE 18
	  	EXCLUSION OF OTHER PROVISIONS AND PREVIOUS UNDERSTANDINGS	  	 	19	  
			
	 CLAUSE 19
	  	TERMINATION	  	 	19	  
			
	 CLAUSE 20
	  	NEGATION OF WAIVER	  	 	19	  
			
	 CLAUSE 21
	  	SEVERABILITY AND PARTIAL INVALIDITY	  	 	19	  
			
	 CLAUSE 22
	  	GOVERNING LAW	  	 	20	  
			
	 CLAUSE 23
	  	LIMITATION OF LIABILITY	  	 	20	  
			
	 CLAUSE 24
	  	CONFIDENTIALITY	  	 	20	  
			
	 CLAUSE 25
	  	ELIGIBLE ENGINE OPERATION BY GRUPO TACA AIRLINES	  	 	20	  
			
	 CLAUSE 26
	  	ADDITION AND DELETION OF ELIGIBLE ENGINES	  	 	20	  
			
	 EXHIBIT 1
	  	RESERVED	  	 	22	  
			
	 EXHIBIT 2
	  	ESCALATION FORMULA	  	 	23	  
			
	 EXHIBIT 3
	  	MONTHLY STATEMENT OF THRUST USAGE AND HOUR/CYCLE UTILIZATION	  	 	25	  
			
	 EXHIBIT 4
	  	ENGINE MAINTENANCE PLAN	  	 	26	  

 THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE 

  
 Page 2

 THIS AMENDED AND RESTATED V2500-A5 FLEET HOUR AGREEMENT (“FHA”) is made this December 18,
2008, 
  

			
	BETWEEN	  	
		
	IAE INTERNATIONAL AERO ENGINES AG	  	a joint stock company organized and existing under the laws of Switzerland, with an office and place of business at 400 Main Street, M/S 121-10, East Hartford, Connecticut, 06108
USA (hereinafter called “IAE”), and
		
	ATLANTIC AIRCRAFT HOLDINGS LIMITED	  	a corporation organized and existing under the laws of The Bahamas, whose principal place of business is at King & George Streets, Nassau, Bahamas (hereinafter called
“AAH”).
		
	WHEREAS:	  	

  

	 	A.	As of the date hereof, (i) AAH has acquired or has firmly ordered an aggregate of [*] new Airbus A320 family aircraft and has options to purchase an additional [*]
A320 family aircraft, all powered or to be powered by IAE V2500 aero engines and (ii) AAH has acquired or has firmly ordered an aggregate of [*] new V2500 spare engines, all of which will be operated by the Grupo Taca Airlines; and

  

	 	B.	AAH and IAE have entered into an amended and restated V2500 General Terms of Sale dated December 18, 2008 which addresses the support of said V2500 aero engines; and

  

	 	C.	 IAE and AAH entered into that certain V2500-A5 Fleet Hour Agreement on April 23rd 1999 (the “Original FHA”); and 

 

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

 

	 	E.	 IAE and AAH entered into Amendment No. 2 to the Original FHA on August 19th 2003 (the “FHA Amendment”), and 

 

	 	F.	 IAE and AAH entered into Side Letter No. 1 to the Original FHA on June 12th 2007 (the “FHA Side Letter”), and 

 

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

  

	 	H.	IAE and AAH now wish to agree terms whereby IAE will arrange for, manage and subcontract certain off-wing maintenance of the Eligible Engines. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 3

 NOW THEREFORE THE PARTIES AGREE TO AMEND AND RESTATE THE ORIGINAL FHA AS FOLLOWS: 

 

	CLAUSE 1	DEFINITIONS 

  

	 	1.1.	“Aircraft” shall mean the fleet of Airbus A320 family Aircraft powered by Eligible Engines. 

 

	 	1.2.	“Eligible Engine” shall mean (i) each Engine installed at delivery on an Aircraft delivered by the Aircraft Manufacturer pursuant to the Aircraft
Agreement (as defined in the Support Contract) and (ii) each Spare Engine, in each case so long as such Engine is operated by a Grupo TACA Airline. 

  

	 	1.3.	“Eligible Engine Removal” shall mean those removals of Eligible Engines from an Aircraft for a Shop Visit which are determined by IAE’s and AAH’s
mutual agreement to be necessary. 

  

	 	1.4.	“Eligible Shop Visit” shall mean those Shop Visits of Eligible Engines to Maintenance Center(s) which are determined by IAE’s and AAH’s mutual
agreement to be necessary. 

  

	 	1.5.	“Engine(s)” shall mean the IAE V2500 Aircraft engines described in the Engine Contract Specification(s). 

 

	 	1.6.	“Engine Contract Specification(s)” shall mean the applicable Specification(s) set forth in the Support Contract and which specifications are incorporated
herein by reference. 

  

	 	1.7.	“Engine Maintenance Service Charge” shall mean the price to be paid from time to time by AAH to IAE for services other than Excess Work and which shall be
calculated in accordance with Clause 6 below. 

  

	 	1.8.	“Excess Work” shall mean work and the provision of goods and services undertaken by Maintenance Center(s) as described in Sections 4.2 and 4.3 hereof and any
other work or provision of goods and services expressly stated herein to constitute Excess Work. 

  

	 	1.9.	“Grupo Taca Airline(s)” shall mean any or all airlines of which not less than [*]. 

 

	 	1.10	“Life Limited Parts” shall mean the Parts identified in Chapter 5 of the V2500 Engine Manual as having specific life limits. 

 

	 	1.11.	“Line Replaceable Units” and “LRU” shall mean all items which can be removed from an Engine without demounting such Engine from the Aircraft
except for: Inlet Cowl; Common Nozzle Assembly; Tail Plug; C-Ducts and Actuators; Hydraulic Control Unit; Anti-Icing valves, ducting and clamps; Environmental Control System ducting, clamps and seals; Fan Cowl Doors; and all items of Airbus
supply. 

  

	 	1.12	“Maintenance Center(s)” shall mean the United States Federal Aviation Administration (FAA) approved Maintenance Center(s) as mutually agreed by IAE and AAH as
the sole provider(s) of maintenance services pursuant to the terms of this FHA. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 4

	 	1.13	“Maintenance Service Rate” and “MSR” shall mean the rate to be applied to Eligible Engine flight hours to calculate the FHA Service Charge.

  

	 	1.14	“Repair Order” shall mean a written repair request from AAH, with IAE’s input, to the Maintenance Center(s), which shall (a) authorize the
Maintenance Center(s) to undertake work on Eligible Engines, as directed by IAE, under the terms of IAE’s contract with the Maintenance Center(s); and (b) which shall be adequate to satisfy all customs and AAH’s insurance
requirements. IAE will notify AAH of the date and reference of the appropriate contract with the Maintenance Center(s). 

  

	 	1.15	“Shop Visit” shall mean a visit to the Maintenance Center(s) where the maintenance performed on an Eligible Engine includes either of the following:

  

	 	1.15.1.	separation of pairs of major mating engine flanges (except for the purpose of shipment without subsequent internal maintenance of the engine); or

  

	 	1.15.2.	removal of a disk, hub or spool. 

  

	 	1.16.	“IATA” shall mean the IATA Short Term Engine Lease Agreement as provided to AAH at the time of this FHA. 

 

	 	1.17.	“Support Contract” shall mean the Amended and Restated V2500 General Terms of Sale dated
            , 2008 between IAE and AAH including all Exhibits and Side Letters thereto for the benefit of AAH and Grupo Taca Airlines, as such Support Contract may be amended or modified
from time to time, and such other V2500 Support Contracts specifically referenced with respect to a particular Eligible Engine in the list of Eligible Engines. 

 Capitalized terms not specifically defined in this FHA shall have the meaning assigned to them in the Support Contract as required to reflect the intention of the parties. 

 

	CLAUSE 2.	RESPONSIBILITIES OF THE PARTIES 

  

	CLAUSE 2A	RESPONSIBILITIES OF IAE 

 Provided that AAH is not in material breach (beyond any applicable grace period) of any of its obligations to IAE under this FHA, IAE agrees to fulfill the following responsibilities and/or perform the
following tasks to arrange for, manage and subcontract certain off wing maintenance of Eligible Engines, as far as is possible, in consultation with and in accordance with operational requirements of Grupo Taca Airlines. IAE will: 

 

	 	2A.1	provide the following engineering support services for Eligible Engines in conjunction with the Maintenance 
Center(s): 

 

	 	2A.1.1	the dissemination of periodic engineering updates which are applicable to the Eligible Engines; 

 

	 	2A1.2	the analysis of IAE Service Bulletins to determine those which are applicable to the Eligible Engines; 

 

	 	2A.1.3	the provision to AAH of required documentation including but not limited to: FAA Form 337, V2500 Life Limited Parts Status Report (based on data provided by AAH),
Engine test logs and Serviceable Tags; 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 5

	 	2A.1.4	the provision of a written report stating any damage detected and repair(s) accomplished, including any technical conclusions as to the cause of such damage;

  

	 	2A.1.5	where applicable and requested by AAH, the provision of accident and damage disassembly reports and pictures; and 

 

	 	2A.1.6	the provision of advice on Airworthiness Directives and appropriate documentation indicating that the Maintenance Center(s) has complied with applicable Airworthiness
Directives. 

  

	 	2A.2	designate an FHA manager (based at IAE’s offices) who will be the point of contact for AAH in respect of services described in this FHA. 

 

	 	2A.3	work with AAH to develop a mutually acceptable removal schedule that utilizes the entire calendar year in order to level load the engine removal schedule during years
of heavy removal requirements and will reasonably assist AAH to minimize engine removals during peak operating seasons; 

  

	 	2A.4	determine in good faith and on a non-discriminatory basis the work to be undertaken by the Maintenance Center(s) for all planned and unplanned removals of Eligible
Engines after consultation with AAH and advise the Maintenance Center(s) of the work required through a Repair Order; 

  

	 	2A.5	arrange and be responsible for transportation of Eligible Engines between Miami, Florida, USA (or any other location as mutually agreed) and the Maintenance Center(s)
should AAH select the transportation option set forth in Clause 7.1 below; 

  

	 	2A.6	cause the Maintenance Center(s) to complete a Shop Visit report in respect of each Eligible Shop Visit during the term of this FHA in accordance with the standards and
specifications established in this FHA and to provide such shop visit report to AAH in a timely manner; 

  

	 	2A.7	pay to the Maintenance Center(s) all charges incurred as the result of each such Eligible Shop Visit excluding charges incurred as a result of Excess Work; and

  

	 	2A.8	exert its commercially reasonable efforts to obtain agreement from the Maintenance Center(s) to the following estimated maximum turnaround times (which shall exclude
the time required to (a) transport the Eligible Engine, (b) achieve a testable engine as set forth in Clause 2B.12 below, and (c) resolve Excess Work issues in good faith and in a timely fashion), which turnaround times are provided
to assist AAH in its scheduling of its V2500 Engines. Actual turnaround time will vary depending upon the actual condition of the Eligible Engine received by the Maintenance Center(s). 

 

			
	  	  	Calendar Days
	 A. Major Engine Disassembly and Repair
	  	[*]
		
	 B. Hot Section Inspection and Combustion Area Repairs
	  	[*]

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 6

 IAE will require the Maintenance Center(s) to: (a) exercise all reasonable efforts to
complete the turnaround of any given Engine within the turnaround time shown above and (b) give consideration to AAH’s scheduling requirements for Eligible Engines. 
 [*] 
 IAE shall maintain insurance and contractually require the Maintenance
Center(s) to insure for loss of or damage to the Engines for an amount equal to the Engines’ replacement value, and to maintain liability insurance for an amount not less than [*]. This insurance shall cover the Engines while they are in the
care, custody and control of IAE or the Maintenance Center (s). [*] 
 The Maintenance Center(s) will, at all times, be properly
certificated and otherwise authorized to perform all maintenance work to be performed by it/them and at all times maintain sufficient parts, inventory, materials and personnel to perform and complete all such maintenance work on a timely and proper
basis. 
  

	 	2A.9	recommend the designated Maintenance Center(s). The Maintenance Center(s) used shall be determined by the mutual agreement of IAE and AAH. In the event IAE and AAH do
not mutually agree upon a Maintenance Center(s), this FHA shall, at such time, terminate without any further obligation (other than payment obligations which arise prior to the time of termination) to either party. 

 

	 	2.A.10	assist TACA in the management of in the maintenance of Eligible Engines in accordance with the ENGINE MANAGEMENT PLAN set forth in Exhibit 4 to this FHA.

  

	CLAUSE 2B	RESPONSIBILITIES OF AAH 

 AAH agrees to fulfill the following responsibilities and/or perform the following tasks and to reasonably cooperate with IAE in the performance of IAE’s responsibilities hereunder. AAH shall:

  

	 	2B.1.	prior to an unplanned Eligible Engine Removal, make commercially reasonable efforts in accordance with standard industry practice (including without limitation
complying with the Trouble Shooting Manual), taking into consideration the Grupo Taca Airline’s scheduling and route requirement, to correct the problem leading to the potential unplanned Eligible Engine Removal. If the problem cannot be
corrected on-wing, the Eligible Engine shall be removed and shall be forwarded to the Maintenance Center(s) together with available data from the EEC/aircraft system interrogations. AAH will ensure that all data reasonably required by IAE to
facilitate the correction of any problem causing such unplanned Eligible Engine Removal is made available to IAE as soon as practicable; 

  

	 	2B.2.	provide for use under this FHA and maintain in a serviceable condition a minimum number of transportation stands to enable each Eligible Engine being sent to the
Maintenance Center to be shipped on its own transportation stand and for such stand to remain at the Maintenance Center to be used to return the Eligible Engine to AAH, and such minimum number taking into consideration removal projections;

  

	 	2B.3.	at the time of an Eligible Engine Removal, remove the Eligible Engine from the Aircraft, mount it on a transportation stand and prepare such Eligible Engine for
shipment; 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 7

	 	2B.4.	make Eligible Engines available for shipment following (a) planned Eligible Engine Removals in accordance with the schedule defined by and mutually agreed by IAE
and AAH and (b) unplanned Eligible Engine Removals. AAH shall ensure that each Eligible Engine which is sent to the Maintenance Center(s) for repair is accompanied by a Repair Order which will include Engine and Life Limited Parts total time,
date of Engine removal, and reason for removal; 

  

	 	2B.5	be responsible for delivering Eligible Engines to and receiving Eligible Engines from the Maintenance Center(s), or if AAH selects the transportation option set forth
in Clause 7.1 below, to and from Miami, Florida, USA or any other location as mutually agreed, using transportation stands provided by AAH pursuant to Clause 2B.2 above; 

 

	 	2B.6.	maintain records in form and detail reasonably sufficient for the accurate and expeditious administration of the terms of the FHA and shall permit IAE Customer Support
Representatives access to such records for inspection and audit at reasonable intervals and at reasonable times, provided such inspection does not unreasonably interfere with AAH’s operations or business. The form to be used for the monthly
reporting of the required data by AAH is included as Exhibit 3 hereto, and may be modified or changed as mutually agreed; 

  

	 	2B.7.	operate and maintain a minimum number of V2500 Engines in support of its operation of the Firm Aircraft such that the ratio of spare Engines to installed Engines is a
minimum [*]; 

  

	 	2B.8.	maintain insurance covering loss or damage to Aircraft and Engines (hull, war risks and spare parts insurance), as well as aircraft third-party and airline legal
liability insurance (covering passengers, cargo, baggage and mail, bodily injury and property damage) with a minimum coverage of U.S.$[*]. IAE and the Maintenance Center(s) will be named as additional insureds in those policies;

  

	 	2B.9.	cooperate with IAE to fulfill any reasonable administrative or other reasonable requirements of the Maintenance Center(s) provided no such requirements will result in
significant cost to AAH; and 

  

	 	2B.10	operate the Eligible Engines in a manner consistent with standard industry practice and the V2500 Maintenance Management Plan for Grupo Taca Airlines as agreed by AAH
and IAE, and adhere to any IAE special instructions provided that such instructions are (i) reasonable with reference to industry standards and (ii) apply generally to and are applied generally (on a non-discriminatory basis) to V2500
engines and operators operating under similar conditions. 

  

	 	2B.11	maintain performance trend monitoring data on each Eligible Engine. The actual cost of any induction performance test on an Eligible Engine required due to the lack of
historical trend monitoring data will be charged to AAH as Excess Work; and 

  

	 	2B.12	Eligible Engines shipped to Maintenance Center(s) or if AAH selects the transportation option set forth in Clause 7.1 below, to and from Miami, Florida, USA or any
other location as mutually agreed, by AAH shall be in a testable configuration, i.e., no unserviceable tags on LRUs and accessories. If the Maintenance Center(s) is required to use their own units to make AAH’s Engine testable, the man-hours
required to achieve the testable configuration and remove such units will be charged to AAH as Excess Work. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 8

	CLAUSE 3	STANDARDS, SPECIFICATIONS, AND BENEFITS 

  

	 	3.1.	Eligible Engines will be repaired, modified, inspected and tested in accordance with the manufacturer’s applicable Engine Manuals, the Maintenance Center V2500
Maintenance and Build Standard Manual, Service Bulletins, Airworthiness Directives and other approved maintenance procedures then in effect at the Maintenance Center(s) including the V2500 Maintenance Management Plan for Grupo Taca Airlines.

  

	 	3.2.	AAH and IAE agree that it is not the intention to provide duplicate benefits under the terms of this FHA and the Support Contract or under any other arrangement between
IAE or IAE’s suppliers or the Aircraft Manufacturer and the Grupo Taca Airlines. In the event of any such duplication of benefits, except as provided in the Support Contract the Grupo Taca Airline may, at the relevant time in respect of the
relevant circumstances opt to receive any one such benefit to the exclusion of all other duplicate benefits. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 9

	CLAUSE 4	ENGINE MAINTENANCE SERVICES, THE FHA SERVICE CHARGE AND THE OFF-WING RESTORATION CHARGE 

 

	 	4.1.	The Engine maintenance services to be covered by the FHA Service Charge and the Off-Wing Restoration Charge shall be limited to the following when performed by the
Maintenance Center(s) on Eligible Engines removed from service during the term of the FHA: 

  

	 	4.1.1	Labor, material and material handling charges (excluding such charges for Life Limited Parts which have not prematurely failed and for LRU’s), including the cost
of Engine material replaced on wing and any vendor fees required to: 

  

	 	(a)	Perform Engine reconditioning, overhaul and repair to make the Engine serviceable to the specifications established in accordance with the provisions of Clauses 2A.4
and 3.1 [*]. 

  

	 	(b)	Inspect, repair or replace Engine Parts as required by Airworthiness Directives issued by the U.S. Federal Aviation Administration; except that inspections forming part
of normal line maintenance and on wing adjustments shall not be covered. 

  

	 	(c)	Incorporate IAE Service Bulletins, as agreed between AAH and IAE having Compliance Codes [*] in accordance with the recommendation in the applicable Service Bulletin.
(These Service Bulletins are designated as Target Service Bulletins in the V2500 Maintenance Management Plan for AAH or Grupo Taca Airlines. Service Bulletins which will alleviate repetitive Airworthiness Directive on-wing inspections shall be
considered Target Service Bulletins.) Incorporation of IAE Service Bulletins having Compliance Codes [*] shall be considered on a case-by-case basis in a non-discriminatory manner. 

 

	 	4.1.2.	Labor and test cell fees to perform the required Engine testing and retesting where required due to Maintenance Center or IAE actions or inaction.

  

	 	4.1.3.	Fuel and oil consumed at Engine test. 

  

	 	    	[*] 

  

	 	4.2	All services not specifically included in Clause 4.1 above, are excluded from coverage under the FHA Service Charge and the Off-Wing Restoration Charge and will be
accomplished as Excess Work, subject to the rates and charges in effect at the Maintenance Center(s) at such time as such Excess Work is performed (or subject to any rates negotiated by AAH or Grupo Taca Airlines with the Maintenance Center). In
particular, if AAH requests the Maintenance Center(s), without IAE’s prior written approval (or verbal approval in the case of an AOG, followed by a written confirmation), to dispatch to Grupo Taca Airlines’ line stations personnel to
assist a Grupo Taca Airline with its Engine maintenance requirements, such on-site assistance shall be deemed to be Excess Work. 

 To the extent that Excess Work can be determined prior to induction of an Eligible Engine into the Maintenance Center(s), charges for such Excess Work shall be billed directly to AAH by the Maintenance
Center(s). 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 10

 To the extent that Excess Work is only determined after induction of an Eligible Engine
into the Maintenance Center(s), charges for such Excess Work shall be invoiced to AAH by IAE as set forth in Clause 8.4 below and AAH shall pay such Excess Work charges in full to IAE in addition to the FHA Service Charge and Off-Wing Restoration
Charge. Excess work will be invoiced to AAH at the actual cost to IAE. 
  

	 	4.3	Labor, material and other charges related to Maintenance Center(s) performance of maintenance services described in Clause 4.1 above, will be identified as Excess Work
to the extent that the Engine: 

  

	 	4.3.1.	Requires repairs for recoverable insured inflight and/or ground accident damage, to the extent of the amounts recoverable, except for FOD as described in Clause
4.1.1(a) above; or 

  

	 	4.3.2.	Was not maintained and operated in accordance (in all material respects) with (a) V2500 Maintenance Management Plan for Grupo Taca Airlines, (b) operating and
maintenance instructions and recommendations authorized or issued by IAE or Airbus Industrie via manual updates or temporary revisions to manuals, (c) maintenance recommendations included in the Engine Manuals and Operating Instructions and
(d) any other written recommendations made from time to time by IAE or Airbus Industrie which impact Engine operability, parts life or safety; or 

  

	 	4.3.3.	Has been subjected to misuse, neglect, accident or maintenance error (other than any maintenance error attributable to any act, or failure to act or omissions of IAE or
the Maintenance Center(s)) by any party other than IAE or the Maintenance Center(s); or 

  

	 	4.3.4.	Has been adversely affected by a part not originally supplied by a Maintenance Center(s), IAE or another source approved by IAE (except if such part has been identified
by IAE as a Standard Part and has been acquired from an FAA approved source); or 

  

	 	4.3.5.	Has been adversely affected by occurrences outside the course of Grupo Taca Airlines’ normal business activities as civil commercial airlines including, but not
limited to, acts of God, use by government agencies (other than in the normal or customary course of business of Grupo Taca Airlines), acts of war, rebellion, seizure or other belligerent acts. 

 

	CLAUSE 5	TITLE  

  

	 	5.1.	IAE shall ensure that title to Parts incorporated into Eligible Engines by the Maintenance Center(s) shall pass to the owner of such Eligible Engines free and clear of
all security interests and rights of IAE, the Maintenance Center and all other third parties (other than such security interests and rights created by AAH or the owner of the Eligible Engines or the Maintenance Center mechanics lien for a period no
longer than forty (40) days). 

  

	 	5.2.	Title to Parts removed from Eligible Engines by the Maintenance Center(s) shall pass to IAE free and clear of all security interests and rights of the owner of such
Eligible Engines at the time and provided that title to the replacement Part passes to the owner of such Eligible Engines pursuant to Clause 5.1 above. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 11

	CLAUSE 6	PRICE 

  

	 	6.1	The charge for FHA Service and miscellaneous shop visits as described in Clause 4 above (the “FHA Service Charge”) will be calculated using a MSR base rate
(“MSRb”) equal to $[*] per Eligible Engine Flight Hour escalated in accordance with the escalation formula set forth in Exhibit 2 hereto. 

  

	 	6.2	The FHA Service Charge for each month shall be equal to the sum of the verified hours of flight operation of each Eligible Engine in such month (rounded to the nearest
one-tenth of an hour) multiplied by the MSRb for such month. AAH shall, within twenty (20) days after the end of the month, report to IAE the hours flown by each Engine during the preceding month. 

 

	 	6.3	The charge for off-wing hot section restoration as described in Clause 4 above (the “Off-Wing Restoration Charge”) will be calculated using the appropriate
base hourly rate from the table in Clause 6.5 below (set forth in [*] dollars) escalated in accordance with the escalation formula set forth in Exhibit 2 hereto. 

 

	 	6.4	The Off-Wing Restoration Charge payable to IAE at the time any Eligible Engine enters the Maintenance Center(s) for off-wing hot section restoration shall be determined
using the thrust rating(s) at which the Eligible Engine was operated since the last Eligible Shop Visit or since new, as applicable, and shall be equal to the sum of the verified hours of flight operation of the Eligible Engine at each such thrust
rating multiplied by the hourly Off-Wing Restoration Charge for each such thrust rating, as determined pursuant to Clause 6.5. 

  

	 	6.5	The Off-Wing Restoration Charge ([*] dollars) shall be as follows (“Base Rates”): 

 

							
		  	V2524-A5	 	V2527-A5	 	V2533-A5
	 [*]
	  	[*]	 	[*]	 	[*]
	 [*]
	  	[*]	 	[*]	 	[*]
	 [*]
	  	[*]	 	[*]	 	[*]
	 [*]
	  	[*]	 	[*]	 	[*]
	 [*]
	  		 		 	

  

	 	6.6	IAE and AAH will mutually agree, based on the teardown report received from the Maintenance Center, whether an Eligible Shop Visit is a miscellaneous shop visit, a
restoration shop visit, or both. The time required to arrive at the mutual agreement shall not be considered when calculating turnaround times in this FHA. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 12

	 	6.7	The charge of any Eligible Shop Visit solely to change life expired Life Limited Parts (“Life Limited Parts Shop Visit”) will be [*] ([*]) escalated in
accordance with the escalation formula set forth in Exhibit 2 hereto. This amount excludes the actual costs of the replacement Life Limited Parts, and will be paid to IAE at the time the applicable Eligible Engine enters the Maintenance Center.

  

	 	6.8	[*] 

  

	 	6.9	[*] 

  

	CLAUSE 7	FHA OPTIONS 

 The
following optional coverages are available to provide additional maintenance coverage under this FHA. AAH may elect to take all, some, any or none of these optional coverages. AAH shall advise IAE in writing of the optional coverages selected at the
time that AAH advises IAE that it elects this FHA from the various alternatives granted AAH in the Support Contract (i.e., Parts Cost Plan or Maintenance Cost Guarantee or Fleet Hour Agreement). 

 

	 	7.1	Engine transportation to/from Miami (or such other location as mutually agreed) and Maintenance Center(s). The [*] base rate for this Transportation option is [*] per
Eligible Engine Flight Hour escalated in accordance with the escalation formula set forth in Exhibit 2 hereto. 

  

	 	7.2	[*] 

  

	 	7.3	Should AAH choose any or all of the options set forth in Clauses 7.1 and 7.2 above, the charges for each option for each month shall be equal to the sum of the verified
hours of flight operation (rounded to the nearest one-tenth of an hour) of all Eligible Engines operating in such month multiplied by the appropriate price calculated for each month in accordance with the escalation formula set forth in Exhibit 2
hereto. 

  

	 	7.4	All overhaul and shop maintenance done at Goodrich, round trip transportation costs, Thrust Reverser Rotables to be held by Goodrich, Line and Shop Replacement Parts,
Shop Maintenance Labor and Vendor Accessories. [*] 

  

	 	7.5	Should AAH choose the option set forth in Clause 7.4 above, the charges for each month shall be equal to the sum of the verified hours of flight operation (rounded to
the nearest one-tenth of an hour) of all Eligible Engines operating in such month multiplied by the price calculated for each month in accordance with the Goodrich escalation formula. 

 

	 	7.6	For clarity, as of the date of this Amended and Restated FHA, AAH have elected to take the services detailed in Clause 7.1 and 7.2 above. 

 

	CLAUSE 8	PAYMENT 

  

	 	8.1	IAE will invoice AAH monthly in arrears for the FHA Service Charge and for any options selected in Clause 7 above. 

 

	 	8.2.	IAE will invoice AAH for Off-Wing Restoration Charges and Life Limited Parts Shop Visits at the time the Eligible Engine is inducted into the Maintenance Center(s).

  

	 	8.3.	IAE may invoice AAH its reasonable estimate of the cost of any Excess Work prior to commencement of, or during the execution of, such Excess Work. IAE will invoice AAH
for the balance of the cost of any Excess Work upon receipt of the corresponding invoice from the Maintenance Center(s) (or refund by electronic transfer within [*], any excess payment received). 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 13

	 	8.4.	AAH will pay the FHA Service Charge within [*] of the end of the applicable month. AAH will pay all other invoices submitted by IAE pursuant to this FHA within [*] of
receipt thereof. AAH undertakes that IAE shall receive the full amount of payments falling due under this Clause 8, without any withholding or deduction whatsoever. 

 

	 	8.5.	All payments under this Clause 8 shall be made by electronic transfer and shall be deposited not later than the due date of payment with: 

Bank of America 

1185 Avenue of the Americas 
 New York, NY 10038-4924 
 Account No.: 385002859903 

ABA No.: 026009593 
 SWIFT Code: BOFAUS3N 
 CHIPS No.: 0959 

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

	 	8.6	Should AAH fail to make payment to IAE as set forth in this Clause 8, then, notwithstanding any rights which IAE may have in contract or in law, IAE reserves the right
to (a) assess interest on such late payment at the rate [*] per annum on the outstanding amount from the date the payment was due to be made until the date such payment is received by IAE and (b) stop all work on any and all Eligible
Engines then currently at the Maintenance Center(s) pursuant to this FHA when any such late payment is [*] or more past due. 

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

 

	CLAUSE 9	TAXES AND LEVIES 

In addition to amounts stated to be payable by AAH pursuant to this FHA, AAH shall pay: 

 

	 	9.1	any and all taxes (excluding any income, gains, or excess profit, franchise and similar taxes, and taxes which would not have been imposed had IAE not through its gross
negligence or willful misconduct failed to comply with applicable regulations or filing requirements, hereinafter referred to as “Excluded Taxes”) which may be imposed by any taxing authority arising from IAE’s performance under this
FHA; 

  

	 	9.2	any and all taxes (other than Excluded Taxes) payable by IAE in connection with contracts for goods and/or work with Maintenance Center(s) for or in connection with
Eligible Engines; 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 14

	 	9.3	any and all taxes (other than Excluded Taxes) payable by IAE pursuant to contracts for services with repair vendors for or in connection with Eligible Engines.

  

	CLAUSE 10	PERIOD OF FHA 

  

	 	10.1	 This FHA became effective on April 23rd 1999 and will remain in effect for the following coverage periods commencing from the date of entry into service of
each Eligible Engine: 

 For twenty-two (22) Eligible Engines: Sixteen (16) Years 
For forty
(40) Eligible Engines: Twelve (12) Years 
For up to one hundred forty seven (147) Eligible Engines: Ten (10) Years 
 The coverage period for each Eligible Engine shall be determined as follows: 
  

	 	(a)	At or before the later of (i) the time the Eligible Engine enters a Maintenance Center for its second off-wing hot section restoration, or (ii) the eighth
anniversary of the date of entry into service of the Eligible Engine, AAH shall designate whether the Eligible Engine shall be covered under the FHA either for (A) a period of ten years (a “Ten-Year Engine”) or (B) a period
longer than ten years. If at the time of such designation, AAH determines that an Eligible Engine shall be covered under the FHA for a period longer than ten years, AAH may, but need not, designate whether the Eligible Engine will be covered under
the FHA for twelve years (a “Twelve-Year Engine”) or sixteen years (a “Sixteen-Year Engine”). 

  

	 	(b)	If AAH has not designated an Eligible Engine as a Ten-Year Engine, a Twelve-Year Engine or a Sixteen-Year Engine pursuant to clause (a) above, then at or before
the eleventh anniversary of the date of entry into service of the Eligible Engine, AAH shall designate whether the Eligible Engine shall be a Twelve-Year Engine or a Sixteen-Year Engine. 

 

	 	(c)	Notwithstanding anything hereinabove to the contrary, (i) any Eligible Engine that is no longer operated by a Grupo TACA Airline on the tenth anniversary of the
date of entry into service of such Eligible Engine shall automatically be deemed to be a Ten-Year Engine, and (ii) any Eligible Engine that (A) was not previously designated by AAH as a Ten-Year Engine, and (B) is no longer operated
by a Grupo TACA Airline on the twelfth anniversary of the date of entry into service of such Eligible Engine shall automatically be deemed to be a Twelve-Year Engine. 

 

	CLAUSE 11	WARRANTIES  

  

	 	11.1.	If IAE fails to comply with the performance criteria specified in Clause 3.1 above, IAE will, as its sole responsibility for such failure, undertake, at its sole cost
and expense, all work necessary to enable the corresponding Eligible Engine to meet such criteria. 

  

	 	11.2.	 IAE shall warrant Excess Work to AAH and Grupo Taca Airlines to the same extent that the Maintenance Center(s) warrants the same to IAE. Transportation
charges for the return of defectively serviced goods to IAE or the Maintenance Center(s) (or, if AAH selects the transportation option, to Miami, Florida USA or such other location as mutually agreed) and their reshipment to AAH and risk of loss
thereof 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 15

	 	
will be borne by IAE only if such goods are returned in accordance with written shipping instructions from IAE provided that IAE shall have provided such written shipping instructions in a timely
manner. 

  

	 	11.3.	IAE warrants to AAH and the Grupo Taca Airlines that so long as AAH complies with its obligations hereunder, that IAE will convey good and clear title to the new Parts
sold hereunder. IAE’s liability and the airlines’ remedy under this warranty are limited to the removal of any title defect or, at the election of IAE, to the replacement of the new Parts or components thereof which are defective in title;
provided, however, that the rights and remedies of the parties with respect to patent infringement shall be limited to the provisions of Clause 11.5 below. 

 

	 	11.4	[*] 

  

	 	11.5	IAE shall, subject to the conditions set out in this Clause and as the sole liability of IAE in respect of any claims for infringement of intellectual property rights,
indemnify AAH and the Grupo Taca Airlines against any claim that the use of any of the Supplies by Grupo Taca Airlines within any country to which at the date of such claim the benefits of Article 27 of the Convention on International Civil Aviation
of 7th December l944 (The Chicago Convention) and/or the International Convention for the Protection of Industrial Property apply, infringes any patent, design, or model duly granted or registered provided, however, that IAE shall not be liable
to Grupo Taca Airlines for any consequential damage or any loss of use of the Supplies or of the Aircraft in which the Supplies may be incorporated arising as a result directly or indirectly of any such claim. 

 

	 	11.5.1	Grupo Taca Airlines will give prompt notice in writing to IAE of any such claim whereupon IAE shall have the right at its own expense to assume the defense of or to
dispose of or to settle such claim in its sole discretion. Grupo Taca Airlines will give IAE all reasonable assistance and IAE will reimburse Grupo Taca Airlines for its reasonable out-of-pocket expenses for providing such assistance to IAE. Grupo
Taca Airlines will not by any voluntary act or omission knowingly do anything which may directly or indirectly materially prejudice IAE in this connection. 

 

	 	11.5.2	IAE shall at its option either: (1) substitute for any infringing Supplies substantially equivalent non-infringing supplies; or (2) procure for Grupo Taca
Airlines the right to use any infringing Supplies; or (3) modify any infringing Supplies so they become non-infringing. 

  

	 	11.5.3	The indemnity contained in this Clause 11.5 above shall not apply to claims for infringement in respect of (i) Supplies manufactured to the specific design
instructions of Grupo Taca Airlines; (ii) Supplies not of IAE design (but IAE shall in the event of any claim for infringement pass on to AAH or Grupo Taca Airlines so far as it has the right to do so the benefits of any indemnity given to IAE
by the designer, manufacturer or supplier of such Supplies); (iii) the manner or method in which any of the Supplies is installed in the Aircraft; or (iv) the result of any combination of any of the Supplies with any item or items other
than Supplies. 

  

	 	11.6	EXCLUSIVE WARRANTIES AND REMEDIES 

 AAH and the Grupo Taca Airlines accept that the Warranties granted to AAH and the Grupo Taca Airlines in this Clause 11 are expressly in lieu of, and AAH and the Grupo

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 16

 Taca Airlines hereby waive, all other remedies, conditions and warranties, expressed or
implied including without limitation, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, and all other obligations and liabilities whatsoever of IAE and of its shareholders whether in contract or in tort or otherwise for
any defect, deficiency, failure, malfunctioning or failure to function of any Eligible Engine, or any service or Supplies provided hereunder. AAH and the Grupo Taca Airlines agree that neither IAE nor any of its shareholders shall be liable to AAH
upon any claim therefor or upon any claim howsoever arising out of this FHA, whether in contract or in tort or otherwise, except as expressly provided in the said Warranties, and AAH and the Grupo Taca Airlines assume all risk and liability
whatsoever arising out of this FHA not expressly assumed by IAE in the said Warranties. 
 The remedies of AAH and the Grupo
Taca Airlines shall be limited to those provided herein to the exclusion of any and all other remedies including, without limitation, incidental or consequential damages. No agreement varying or extending the foregoing warranties, remedies or this
limitation will be binding upon IAE unless in writing, signed by a duly authorized officer of IAE. 
 Except as otherwise
expressly stated in this FHA, notwithstanding the foregoing, nothing herein shall be deemed to limit the warranties given by IAE to AAH or the Grupo Taca Airlines in the Support Contract and, without duplication, the warranties set forth herein are
in addition to those set forth therein. 
  

	CLAUSE 12	EXCUSABLE DELAYS  

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

Should an excusable delay exceed [*] in duration, AAH shall have right to terminate this FHA (with no right of reinstatement). Should AAH
elect this option, either the Maintenance Cost Guarantee set forth in the Support Contract or the Parts Cost Guarantee set forth in the Support Contract shall be effective retroactive as if the Guarantee were selected instead of the FHA. 

 

	CLAUSE 13	AMENDMENT 

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

 

	CLAUSE 14	ASSIGNMENT 

Neither party may assign any of its rights or obligations hereunder without the written consent of the other party, except that IAE may
assign any or all of its rights and/or obligations hereunder to any wholly owned subsidiary of IAE or any of IAE’s shareholders. Any assignment made in violation of this Clause 14 shall be null and void. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 17

 Notwithstanding the foregoing, the parties agree to negotiate in good faith the potential
assignment of this FHA taking into consideration each parties’ respective interests and needs. IAE understands that AAH desires this FHA be assigned to a special purpose corporation. IAE agrees not to unreasonably withhold or delay its consent
to any potential assignment. 
  

	CLAUSE 15	EXHIBITS  

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

 

	CLAUSE 16	HEADINGS 

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

	CLAUSE 17	NOTICES 

 Any
notice to be served pursuant to this FHA shall be in the English language and will be sent by registered mail, recognized international courier, or by facsimile (with the original notice sent by registered mail or internationally recognized
overnight courier) to: 
 In the case of IAE: 
 IAE International Aero Engines AG 
 IAE Building 

400 Main Street, M/S 121-10 
 East Hartford, Connecticut 06108 
 United States of America 

Facsimile No.: (860) 565-5220 
 Attention: Chief Legal Officer 
 In the case of AAH: 

Atlantic Aircraft Holdings Limited 
 c/o The Winterbotham Trust Company 
 Bolam House 

King & George Streets 
 Nassau, Bahamas 
 Facsimile No.: (242) 356-9432 

Attention: Directors 
 with a copy to: 
 TACA International Airlines, S.A. 

Avenida El Espino y Boulevard Sur 
 Santa Elena, Antiguo Cuscatlan 
 La Libertad, El Salvador 

Fax No. + 503 2298 - 0827 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 18

 Attention: Senior Vice President and Chief Financial Officer 

with a copy to: 

Aeromantenimiento, S.A. 
 Aeropuerto Internacional El Salvador 
 San Luis Talpa 

La Paz, El Salvador 
 Facsimile No.: +503-339-9092 
 Attention: Director of Quality Control and Technical
Services 
 or in each case to such other place of business as may be notified from time to time by the receiving party.

  

	CLAUSE 18	EXCLUSION OF OTHER PROVISIONS AND PREVIOUS UNDERSTANDINGS 

  

	 	18.1.	This FHA is the sole and entire agreement of the parties with respect to the subject matter hereof and shall apply to the exclusion of any other provisions on or
attached to or otherwise forming part of any order form of a Grupo Taca Airline, or any acknowledgment or acceptance by IAE, or of any other document which may be issued by either party relating to such services. 

 

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

  

	CLAUSE 19	TERMINATION 

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

Should IAE be in material default of its obligations hereunder, AAH shall have the rights set forth in Clause 11.4 above. 

 

	CLAUSE 20	NEGATION OF WAIVER 

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

 

	CLAUSE 21	SEVERABILITY AND PARTIAL INVALIDITY 

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

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 19

	CLAUSE 22	GOVERNING LAW 

This FHA shall be construed and the performance thereof determined in accordance with the laws of the State of New York, U.S.A. (except
for its conflict of laws provisions). The parties agree to exclude the application of the United Nations Convention on Contracts for the International Sale of Goods. 
  

	CLAUSE 23	LIMITATION OF LIABILITY 

 In no event shall either party be liable or otherwise responsible for any incidental, consequential or secondary damages or for any similar cost, damage or expense in connection with any enforcement
proceeding or action hereunder. 
  

	CLAUSE 24	CONFIDENTIALITY 

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

	CLAUSE 25	ELIGIBLE ENGINE OPERATION BY GRUPO TACA AIRLINES 

 IAE and AAH agree that Eligible Engines may be operated by any one of the Grupo Taca Airlines. Irrespective of the Grupo Taca Airline operating any Eligible Engine, for purposes of this FHA, all Eligible
Engines shall be treated as if operated by AAH. 
  

	CLAUSE 26	ADDITION AND DELETION OF ELIGIBLE ENGINES 

 IAE and AAH agree that any V2500-A5 engine other than Eligible Engines operated by any one of the Grupo Taca Airlines may become an Eligible Engine within this FHA at charges and conditions which shall be
mutually agreed by the parties. IAE agrees to determine the charges using the same methodology used in determining the charges for the other Eligible Engines. 
 Such engines shall be incorporated into this FHA by a written and signed Side Letter to this FHA. The amendment shall include the engine serial number, charges, any other conditions, and the applicable
V2500 Support Contract covering the respective engine. In the event that the applicable V2500 Support Contract is not already included in the definition of “Support Contract” set forth in Clause 1.17 of this FHA, that definition shall be
automatically amended to include the applicable V2500 Support Contract. 
 Eligible Engines which are not operated by one of the
Grupo Taca Airlines shall not be covered by this FHA unless IAE shall agree otherwise in writing, which agreement shall not be unreasonably withheld. Engines operated on aircraft which are wet-leased (leased to another entity with a Grupo Taca
Airline crew) shall be deemed to be operated by a Grupo Taca Airline. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 20

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

					
	For IAE International Aero Engines, AG	 	 	 	For Atlantic Aircraft Holdings Limited
			
	  
	 	 	 	  

	Name	 	 	 	Name
	  
	 	 	 	  

	Title	 	 	 	Title

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 21

 EXHIBIT 1 

RESERVED 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 22

 EXHIBIT 2 
 ESCALATION FORMULA 
 Any unit base price or other sum expressed to be subject to escalation
shall be calculated as a two step process: first, calculate base prices to June 2001 using SIC Code AHE 3724 as the labor index point in the escalation formula, and second, escalate from June 2001 to the delivery month using NAICS Code 336411 as the
labor index point in the escalation formula. 
  

	1.	Calculation 

 Step 1: Escalation formula
through June 2001 
  

					
	Pr	  	=	  	Pb [*]
	
	Where:
			
	Pr	  	=	  	Base Contract Price or other Sum calculated to June 2001 rounded to the nearest dollar.
			
	Pb	  	=	  	The Basic Contract Price or other Sum.
			
	Lo	  	=	  	The “Average Hourly Earnings of Aircraft Engine and Engine Parts Production Workers” SIC Code 3724 published by the Bureau of Labor Statistics in the U.S. Department of
Labor for the month preceding the Base Month by four months.
			
	L	  	=	  	The “Average Hourly Earnings of Aircraft Engine and Engine Parts Production Workers” SIC Code 3724 for the month preceding June 2001 by four months.
			
	Mo	  	=	  	The “Producer Price Index, Code 10, For Metals and Metal Products” published by the Bureau of Labor Statistics in the U.S. Department of Labor for the month preceding
the Base Month by four months.
			
	M	  	=	  	The “Producer Price Index, Code 10, For Metals and Metal Products” for the month preceding June 2001 by four months.
			
	Eo	  	=	  	The “Producer Price Index, Code 5, For Fuel and Related Products and Power” published by the Bureau of Labor Statistics in the U.S. Department of Labor for the month
preceding the Base Month by four months.
			
	E	  	=	  	The “Producer Price Index, Code 5, For Fuel and Related Products and Power” for the month preceding June 2001 by four months,.
		
		  	The values of the factors [*]
	
	Lo            Mo            
Eo
		
		  	respectively, shall be determined to the nearest fourth decimal place. If the fifth decimal is five or more, the fourth decimal place shall be raised to the next higher
number.

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

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 23

 Step 2 – Escalation formula for period post June 2001 

 

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

  

	2.	The values of the factors [*] 

Lo            Mo          
  Eo 
 respectively, shall be determined to the nearest fourth decimal place. If the fifth decimal is five or more, the
fourth decimal place shall be raised to the next higher number. 
  

	3.	If the U.S. Department of Labor ceases to publish the above statistics or modifies the basis of their calculation, then IAE may substitute any officially recognized and
substantially equivalent statistics. 

  

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

  

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

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 24

 EXHIBIT 3 

MONTHLY STATEMENT OF THRUST 
 USAGE AND HOUR/CYCLE UTILIZATION 
  

													
	 TACA
	  		  		  	V2500 Engines

Engine Operating Perameters
	  	FHA	  	DATE
							
	 ESN
	  	 A/C

Reg/Pos
	  	Derate %
Monthly Average	  	EGT Margin (oC)
5 first	  	EGT Margin (oC)
5 last	  	TAT
Monthly Average	  	ISA + ___
Monthly Average
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 25

 EXHIBIT 4 

ENGINE MANAGEMENT PLAN 

In addition to the responsibilities stated in Clauses 2A.3 and 2A.4 of the FHA, IAE will provide AAH commercially reasonable assistance in all material
aspects of the management of maintenance for Eligible Engines including, but not limited to, establishing: (i) an engine removal schedule; (ii) shop visit workscopes; and (iii) an LLP Management Plan. 

 

	1.	Engine Removal Schedule 

  

	 	1.1.	The goals of the engine removal schedule will be to: (i) maximize the time on-wing of Eligible Engines; (ii) optimize the time interval between shop visits in
order to assist IAE in managing its subcontractors’ shopload, to reduce the Grupo TACA Airlines’ short-term need for spare and leased engines, and to minimize cash flow demands; (iii) reasonably assist the Grupo TACA Airlines in
meeting redelivery conditions for Eligible Engines installed on Aircraft subject to operating leases; (iv) reasonably assist the Grupo TACA Airlines in minimizing planned Eligible Engine removals during peak operating seasons; and
(v) include stagger of serviceable engines between thrust ratings in order to match LLP life and material life. 

  

	 	1.2.	The engine removal schedule will be based on a reasonable target MTBR which shall be substantiated by IAE (the “Target MTBR”). The Target MTBR will be
reviewed annually to adjust engine removal forecasts. 

  

	 	1.3.	The engine removal schedule will be reviewed quarterly and will be adjusted to accommodate any IAE fleet campaigns and special programs. 

 

	 	1.4.	AAH will inform IAE of the redelivery dates of Eligible Engines installed on Aircraft subject to operating leases. 

 

	 	1.5.	If an engine that is in a serviceable condition is removed for off-wing hot section restoration solely to meet return conditions, AAH will pay the Off-Wing Restoration
Charge for the actual hours used plus any remaining hours to the then-established Target MTBR. If the operating parameters of any such engine materially differ from AAH’s fleet averages, the Target MTBR of such engine for such purposes will be
calculated based on the actual operating parameters of such engine. 

  

	2.	Shop Visit Workscopes 

  

	 	2.1.	The goals of establishing the shop visit workscopes will be to: (i) optimize the cost per engine flown hour; and (ii) reasonably assist the Grupo TACA
Airlines in meeting redelivery conditions for Eligible Engines installed on Aircraft subject to operating leases; provided, however, such redelivery conditions are not materially different than the maintenance that would have been normally performed
under the FHA. Any work performed to meet redelivery conditions that is reasonably determined by IAE to be in excess of work normally undertaken pursuant to the FHA will be considered Excess Work. 

 

	 	2.2.	AAH will inform IAE from time to time of the redelivery conditions for Eligible Engines installed on Aircraft that are the subject of operating leases and the expected
redelivery dates of such Eligible Engines. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 26

	3.	LLP Management Plan 

  

	 	3.1.	The goal of the LLP Management Plan will be to minimize costs associated with satisfying redelivery conditions for Eligible Engines installed on Aircraft that are the
subject of operating leases. 

  

	 	3.2.	AAH shall inform IAE from time to time of the expected lease return dates for Eligible Engines installed on Aircraft that are the subject of operating leases and the
relevant LLP return conditions and build standard requirements agreed upon by the Grupo TACA Airline(s) and lessor. 

  

	 	3.3.	Subject in all events to the obligations of the Grupo TACA Airlines lessee under any operating lease to which an Eligible Engine is subject, whenever reasonably
possible, AAH will allow IAE to install used LLP’s in Eligible Engines installed on Aircraft subject to operating leases at shop visits made pursuant to the FHA. AAH is responsible for providing LLP’s to IAE at no charge to IAE. All used
LLP’s that are installed in Eligible Engines shall be in serviceable condition and shall be furnished to IAE with complete “back to birth” records. IAE will make all commercially reasonable efforts to identify sources of used
LLP’s to AAH for use in the LLP Management Plan. 

  

	 	3.4.	The LLP Management Plan will be reviewed at least annually. 

  

			
	THIS DOCUMENT CONTAINS INFORMATION PROPRIETARY TO IAE
	
	Page 27

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}]]